Document:

Exhibit 10.1

 

FORM OF
 SERIES B UNIT AGREEMENT

 

This SERIES B UNIT AGREEMENT (this “Agreement”) is executed and agreed to as of                                      (the “Effective Date”), between Nexeo Solutions Holdings, LLC, a Delaware limited liability company (the “Company”) and                                    (the “Employee”).

 

Capitalized terms used in this Agreement but not defined in the body hereof are defined in Exhibit A.

 

WHEREAS, the Amended and Restated Limited Liability Company Agreement of the Company (as amended, supplemented and restated from time to time, the “LLC Agreement”) authorizes the issuance by the Company of Series B Units;

 

WHEREAS, the Company desires to issue to the Employee on the terms and conditions hereinafter set forth, and the Employee desires to accept on such terms and conditions, the number of Series B Units specified herein; and

 

WHEREAS, the Company and the Employee desire to agree to certain repurchase and forfeiture restrictions which shall apply to Series B Units held by the Employee.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and obligations contained herein and other good and valuable consideration, the Company and the Employee agree as follows:

 

1.                                      Issuance of Series B Units.  The Company hereby issues to the Employee                      B-     Units on the Effective Date.  Each Series B-     Unit has a Threshold Value of $     .  The Series B-     Units are intended to constitute “profits interests” within the meaning of Revenue Procedures 93-27 and 2001-43 (or the corresponding requirements of any subsequent guidance promulgated by the United States Internal Revenue Service or other applicable law), and thus the capital account associated with each such Series B-     Unit at the time of its issuance shall be equal to zero dollars ($0.00).  The Series B-     Units issued by the Company to the Employee pursuant to this Agreement are referred to herein as the “Granted Series B-     Units.”

 

2.                                      Terms of Issuance of Series B Units.

 

(a)                                 As an inducement to Company to enter into this Agreement, the Employee has entered into an employment relationship with Nexeo Solutions, LLC, a Delaware limited liability company and a wholly owned Subsidiary of the Company (“Nexeo Solutions”).

 

(b)                                 The Employee agrees that no provision contained in this Agreement shall entitle the Employee to remain in the employment of the Company, Nexeo Solutions, or any other Affiliate Controlled by the Company that may from time to time employ the Employee (any such entity that from time to time employs the Employee, a “Nexeo Employer”) or any Affiliate of any such entity or affect in any way the right of any such entity to terminate any such employment at any time.  Any question as to whether and when there has been a termination of any such employment, and the cause of such termination, shall be determined by

 

 

the Board and its determination shall be final; provided, however, that a change in employment from one Nexeo Employer to another Nexeo Employer will not be considered a termination of employment for purposes of this Agreement.

 

(c)                                  The Employee agrees that the Employee’s execution of this Agreement evidences the Employee’s intention to be bound by the terms of the LLC Agreement, in addition to the terms of this Agreement, and acknowledges and agrees that the Granted Series B-     Units are subject to all of the terms and restrictions applicable to Series B Units as set forth in the LLC Agreement and in this Agreement.  On or prior to the Effective Date, the Employee has executed a counterpart signature page to the LLC Agreement or to an Addendum Agreement thereto.

 

(d)                                 The Employee agrees to make an election under Section 83(b) of the Code with respect to the Granted Series B-     Units and to consult with the Employee’s tax advisor to determine the tax consequences of filing such an election under Section 83(b) of the Code.  The Employee acknowledges that it is the Employee’s sole responsibility, and not the responsibility of the Company, to file the election under Section 83(b) of the Code even if the Employee requests the Company or its managers, directors, officers, employees and authorized representatives (including attorneys, accountants, consultants, bankers, lenders, prospective lenders and financial representatives) to assist in making such filing.

 

3.                                      Unvested Series B Units.  The Granted Series B-     Units issued pursuant to this Agreement shall initially be deemed Unvested Units (“Unvested Series B Units”) under the LLC Agreement, shall be subject to all of the restrictions on Unvested Units (as well as on Series B Units, in general) under the LLC Agreement and shall carry only such rights as are conferred on Unvested Units under the LLC Agreement.  The Unvested Series B Units will become Vested Units (the “Vested Series B Units”) under the LLC Agreement in accordance with the provisions of Sections 4 and 5 of this Agreement.

 

4.                                      Vesting of Granted Series B-     Units.

 

(a)                                 Fifty percent (50%) of the Unvested Series B Units (the “Time-Based Units”) will become Vested Series B Units in accordance with the vesting schedule set forth in the following table; provided, however, that the Employee remains continuously employed by a Nexeo Employer from the Effective Date through each vesting date set forth below.

 

	
Vesting Date
    	
 
    	
Portion of Time-Based Units
   that become Vested Series B Units
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
First anniversary of the Vesting Beginning Date
    	
 
    	
20
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Second anniversary of the Vesting Beginning Date
    	
 
    	
20
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Third anniversary of the Vesting Beginning Date
    	
 
    	
20
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Fourth anniversary of the Vesting Beginning Date
    	
 
    	
20
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Fifth anniversary of the Vesting Beginning Date
    	
 
    	
20
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
100
    	
%
    

 

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Upon vesting in accordance with this Section 4(a), such vested Time-Based Units shall no longer be subject to the restrictions on Unvested Series B Units (but shall remain subject to the restrictions on the Series B Units, in general) under the LLC Agreement and shall become Vested Series B Units.

 

(b)                                 The second 50% of the Unvested Series B Units (the “Performance-Based Units”) will become Vested Series B Units in accordance with a performance-based vesting schedule that is divided into five separate and equal twelve month periods, beginning with the Vesting Beginning Date (the “Annual Performance Periods”).  Twenty percent (20%) of the Performance-Based Units will be assigned to each Annual Performance Period.  The EBITDA-based target for each fiscal year will be an adjusted EBITDA amount, which the Compensation Committee of the Board of Directors has defined as the Company’s earnings before interest, taxes, depreciation and amortization for the applicable year, adjusted as the Company deems necessary to reflect extraordinary or non-recurring events, including, without limitation, acquisitions, divestitures and other similar transactions.  The current performance-based metrics for the FY2013-17 Annual Performance Periods are set forth within the chart that is attached hereto as Exhibit B.  The FY2018 adjusted EBITDA amount will be established by the Compensation Committee prior to that fiscal year and will be communicated to the Employee prior to the start of that fiscal year.  The Employee must remain continuously employed by a Nexeo Employer from the Effective Date to the last date of each Annual Performance Period in order to become vested in the tranche of the Performance-Based Units assigned to that Annual Performance Period.

 

In the event that the Adjusted EBITDA performance target amount for any given Annual Performance Period is not achieved, the Performance-Based Units assigned to that Annual Performance Period shall no longer be eligible for vesting under this Section (b), but instead, shall remain Unvested Series B Units and shall become vested, if at all, pursuant to Section 5 or pursuant to the discretion of the Compensation Committee of the Board of Directors.  Notwithstanding the foregoing sentence, however, in the event that any Performance-Based Units do not vest for any applicable Annual Performance Period due to the failure to achieve that Annual Performance Period’s Adjusted EBITDA performance target amount, the Performance-Based Units assigned to that Annual Performance Period shall subsequently vest upon the achievement of the Adjusted EBITDA performance target amount for the Annual Performance Period following the failed Annual Performance Period.  Upon vesting in accordance with this Section 4(b), such vested Units shall no longer be subject to the restrictions on Unvested Series B Units (but shall remain subject to the restrictions on the Series B Units, in general) under the LLC Agreement and shall become Vested Series B Units.

 

5.                                      Vesting of Granted Series B-     Units upon Certain Events.

 

(a)                                 Upon the occurrence of a Liquidity Event in which the Majority Sponsors realize an MoM that is equal to or greater than 3.0x, all Performance-Based Units issued pursuant hereto that have not previously become Vested Series B Units shall automatically become Vested Series B Units; provided, however, that the Employee remains employed by a Nexeo Employer through the date of the consummation of such a Liquidity Event.

 

(b)                                 In the event that the Employee’s employment with a Nexeo Employer is terminated by reason of an Involuntary Termination on or at any time on or within the twenty-four (24) month period immediately following a Change of Control, then all Unvested Series B

 

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Units shall become Vested Series B Units immediately upon such a termination; provided, however, that the Employee remains employed by a Nexeo Employer through the date of the Involuntary Termination.

 

With respect to Sections 5(a) and 5(b), the Liquidity Event or Change of Control, respectively, must occur within seven (7) years of the Vesting Beginning Date; provided however, that the Compensation Committee of the Board of Directors shall, in any event, retain the discretion to extend the seven (7) year period.

 

6.                                      Forfeitures, Redemptions and Repurchase Rights in Connection with the Employee’s Termination of Employment.

 

(a)                                 If the Employee voluntarily terminates his employment with a Nexeo Employer without Good Reason or the Employee’s employment with a Nexeo Employer is terminated upon the death of the Employee or because the Employee is determined to be Disabled, then:

 

(i)                                     for a period of 180 days from the date of such termination, the Company shall have the right to redeem, in accordance with Section 7 below, any or all of the Vested Series B Units held by the Employee on the date of such termination at the Fair Market Value of such Units as determined by the Company utilizing the last valuation report issued prior to the date the Company elects to redeem such Units; and

 

(ii)                                  on the date of such termination, the Employee shall forfeit to the Company all Unvested Series B Units and all rights arising from such Unvested Series B Units and from being a holder thereof.

 

(b)                                 If the Employee’s employment with a Nexeo Employer is terminated by reason of an Involuntary Termination, then:

 

(i)                                     for a period of 180 days from the date of such termination, the Company shall have the right to redeem, in accordance with Section 7 below, any or all of the Vested Series B Units (including any Units that become Vested Series B Unit pursuant to Section 5 held by the Employee on the date of such termination at the Fair Market Value of such Units as determined by the Company utilizing the last valuation report issued prior to the date the Company elects to redeem such Units; and

 

(ii)                                  on the date of such termination, the Employee shall forfeit to the Company all of his Unvested Series B Units and all rights arising from such Unvested Series B Units.

 

(c)                                  If the Employee’s employment with a Nexeo Employer is terminated for Cause, then:

 

(i)                                     on the date of such termination, the Employee shall forfeit to the Company all of the Employee’s Vested Series B Units and all rights arising from such Vested Series B Units and from being a holder thereof; and

 

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(ii)                                  on the date of such termination, the Employee shall forfeit to the Company all of the Employee’s Unvested Series B Units and all rights arising from such Unvested Series B Units and from being a holder thereof.

 

(d)                                 The forfeitures of Series B Units subject to the terms and conditions of this Section 6 shall occur immediately and without further action of the Company, the Employee or any other Person upon the termination giving rise to such forfeitures (the date of the termination of the Employee’s employment being the “Trigger Date”).

 

7.                                      Procedures for Redemptions of Vested Series B Units.

 

(a)                                 Notice of Redemption by Company.  If the Company desires to exercise its rights to redeem any Vested Series B Units that are subject to redemption by the Company pursuant to Section 6, then the Company shall deliver written notice (a “Redemption Notice”) to the Employee, the Employee’s legal representative or guardian, or the executor of the Employee’s estate, as applicable (the “Holder”) no later than the 180th day after the Trigger Date.  The Redemption Notice shall include the following:

 

(i)                                     the number of Vested Series B Units that the Company desires to redeem pursuant to its redemption rights under Section 6;

 

(ii)                                  with respect to the Vested Series B Units to be redeemed (the “Subject Units”), the Company’s determination of the aggregate purchase price required to purchase such Units in accordance with the provisions of Section 6 (the “Purchase Price”); and

 

(iii)                               designation of a reasonable time and place for the closing of the redemption of the Subject Units, which shall be not less than 16 days nor more than 30 days after the date of such Redemption Notice.

 

(b)                                 The Company may assign the Company’s right to redeem Vested Series B Units to one or more other Persons (the “Purchase Right Assignee(s)”) in such amounts as are determined by the Company.  The Company shall exercise the right to redeem Subject Units on behalf of the Purchase Right Assignee(s) by delivery of a written notice thereof to the Employee no later than the time specified in Section 7(a) for the Company to give notice of purchase on its own behalf and such notice shall include substantially the same information as required by Section 7(a).

 

(c)                                  Upon payment of the Purchase Price by the Company, the Subject Units shall automatically be cancelled without further action by the Company, the Employee or any other Person.

 

(d)                                 Any payment of the Purchase Price for any Subject Units by any Purchase Right Assignee shall be made via wire transfer of immediately available funds to an account designated by the Holder.

 

(e)                                  The Holder shall execute and deliver all documentation and agreements reasonably requested by the Company to reflect a redemption or purchase, as applicable, of Subject Units pursuant to this Agreement, but neither the failure of the Holder to execute or deliver any such documentation, nor the failure of the Holder to deposit any Company check, as the case may be, shall affect the validity of a redemption or purchase, as applicable, of Subject Units pursuant to this Agreement.

 

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(f)                                   In connection with any redemption or purchase of Subject Units hereunder, the Holder shall make customary representations and warranties concerning (i) such Holder’s valid title to and ownership of the Subject Units, free of all liens, claims and encumbrances (excluding those arising under applicable securities laws), (ii) such Holder’s authority, power and right to enter into and consummate the sale of the Subject Units, (iii) the absence of any violation, default or acceleration of any agreement to which such Holder is subject or by which its assets are bound as a result of the agreement to sell and the sale of the Subject Units and (iv) the absence of, or compliance with, any governmental or third party consents, approvals, filings or notifications required to be obtained or made by such Holder in connection with the sale of the Subject Units.

 

8.                                      Rights of First Refusal, Drag-Along Rights and Tag-Along Rights.  The Granted Series B Units shall be subject to all terms and conditions relating to the Company’s Right of First Refusal, the Company’s Drag-Along Rights and the Employee’s Tag-Along Rights as described in Sections 7.4, 7.5 and 7.6 of the LLC Agreement, respectively.

 

9.                                      Representations and Warranties of the Employee and the Company.

 

(a)                                 The Employee represents and warrants to the Company as follows:

 

(i)                                     that this Agreement constitutes the legal, valid and binding obligation of the Employee, enforceable in accordance with its terms, and that the execution, delivery and performance of this Agreement by the Employee does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Employee is a party or any judgment, order or decree to which the Employee is subject;

 

(ii)                                  that the Employee believes that the Employee has received all the information the Employee considers necessary in connection with his execution of this Agreement, that the Employee has had an opportunity to ask questions and receive answers from the Company and the Employee’s independent counsel regarding the terms, conditions and limitations set forth in this Agreement and the business, properties, prospects and financial condition of the Company and its Subsidiaries and to obtain additional information (to the extent the Company possesses such information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to the Employee or to which the Employee had access; and

 

(iii)                               that the Employee understands that the Series B Units are not registered under the Securities Act on the ground that the grant provided for in this Agreement and the issuance of securities hereunder is exempt from registration under the Securities Act pursuant to Section 4(2) thereof or pursuant to Rule 701 promulgated thereunder.

 

(b)                                 The Company represents and warrants to the Employee that this Agreement constitutes the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, and that the execution, delivery and performance of this Agreement by the Company does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Company is a party or any judgment, order or decree to which the Company is subject.

 

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10.                               General Provisions.

 

(a)                                 Notices.  For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered, or mailed by certified mail, return receipt requested by nationally recognized overnight or second-day delivery service with proof of receipt maintained, at the following addresses (or any other address that any party may designate by written notice to the other party, in accordance herewith, except that such notice shall be effective only upon receipt):

 

	
If   to the Company to:
    	
 
    	
Chief   Legal Officer 

Nexeo   Solutions Holdings, LLC 

3   Waterway Square Place 

Suite 1000   

The   Woodlands, TX 77380
    
	
 
    	
 
    	
 
    
	
If   to the Employee to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Any such notice shall, if delivered personally, be deemed received upon delivery; shall, if delivered by certified mail, be deemed received upon the earlier of actual receipt thereof or five Business Days after the date of deposit in the United States mail, as the case may be; and shall, if delivered by nationally recognized overnight or second-day delivery service, be deemed received on the second Business Day after the date of deposit with the delivery service.

 

(b)                                 Governing Law.  THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

 

(c)                                  Administration.  The Board shall supervise the administration and enforcement of this Agreement according to the terms and provisions hereof and within the LLC Agreement, and shall have the full discretionary authority and all of the powers necessary to accomplish these purposes.  Without limiting the generality of the foregoing, the Board shall have all of the powers and duties specified for it under this Agreement and the LLC Agreement, including the power, right, and authority: (i) from time to time to establish rules and procedures for the administration of this Agreement, which are not inconsistent with the provisions of this Agreement or the LLC Agreement; (ii) to construe in its sole discretion all terms, provisions, conditions, and limitations of this Agreement; (iii) to correct any defect or to supply any omission or to reconcile any inconsistency that may appear in this Agreement in such manner and to such extent as the Board shall deem appropriate; (iv) to determine which Affiliates shall be considered a Nexeo Employer under this Agreement; and (v) to make all other determinations necessary or advisable for the administration of this Agreement. All decisions,

 

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determinations and actions to be made or taken by the Board pertaining to this Agreement, and all determinations with respect to Employee’s service with the Company or any Nexeo Employer, or a termination of service for purposes of this Agreement, shall be made by the Board; provided, however, the Board, in its sole discretion, may delegate to one or more employees of the Company or any Nexeo Employer all or some of its day-to-day administrative or ministerial duties and powers under this Agreement.  All such decisions, determinations, and actions by the Board shall be final, binding and conclusive on all persons.  The members of the Board shall not be liable for any decision, determination or action taken or omitted to be taken in connection with the administration of this Agreement.

 

(d)                                 Amendment and Waiver.  The provisions of this Agreement may be amended, modified or waived only with the prior written consent of the Company and the Employee, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Agreement or any provision hereof.

 

(e)                                  Severability.  Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Furthermore, in lieu of each such prohibited or unenforceable provision, there shall be added automatically as a part of this Agreement a provision similar in terms to such prohibited or unenforceable provision as may be possible and be legal, valid and enforceable.

 

(f)                                   Entire Agreement.  This Agreement and the other Transaction Documents embody the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

(g)                                  Counterparts.  This Agreement may be executed in one or more counterparts (including facsimile counterparts), each of which, when so executed and delivered, shall be deemed to be an original, but all of which together shall constitute one and the same Agreement.  Delivery of a copy of this Agreement bearing an original signature by facsimile transmission or by electronic mail shall have the same effect as physical delivery of the paper document bearing the original signature.

 

(h)                                 Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by and against the Employee, the Company and their respective successors, assigns, heirs, representatives and estates, as the case may be (including subsequent holders of Series B Units held by the Employee); provided, however, that rights and obligations of the Employee under this Agreement shall not be assignable except in connection with a transfer of Series B Units held by the Employee permitted under the LLC Agreement.  Notwithstanding anything else in this Agreement or in the LLC Agreement (i) each of the Series B Units that is initially held by the Employee shall remain subject to the terms of the LLC Agreement and this Agreement, regardless of who holds such Units and (ii) the effect that the employment of the Employee by

 

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the Company, a Nexeo Employer or their respective Affiliates or events related to such employment have on the rights of and restrictions on Series B Units, including vesting, and the rights of the Company with regard to the Granted Series B-     Units under this Agreement, shall not be altered by any transfer of any Series B Units.  For the avoidance of doubt, each Permitted Transferee of the Employee who acquires Units from the Employee pursuant to the LLC Agreement shall be subject to the provisions of this Agreement as if such Permitted Transferee or Permitted Transferees were a party or parties to this Agreement.

 

(i)                                     Rights of Third Parties.  Except for the provisions of Section 7 relating to the purchase of Vested B Units by the Purchase Right Assignee(s), which are intended to be enforceable by such Purchase Right Assignee(s), nothing expressed or implied in this Agreement is intended or shall be construed to confer upon or give any Person, other than the parties hereto and the estate, legal representative or guardian of any individual party hereto, any rights or remedies under or by reason of this Agreement.

 

(j)                                    Headings; References; Interpretation.  In this Agreement, unless a clear contrary intention appears:  (i) pronouns in the masculine, feminine and neuter genders shall be construed to include any other gender and words in the singular form shall be construed to include the plural and vice versa; (ii) the term “including” shall be construed to be expansive rather than limiting in nature and to mean “including, without limitation;” (iii) the word “or” is inclusive; (iv) the words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole, including the Exhibits attached hereto, and not to any particular subdivision unless expressly so limited; (v) references to Articles and Sections refer to Articles and Sections of this Agreement; (vi) references in any Article or Section or definition to any clause means such clause of such Article, Section or definition; (vii) references to Exhibits are to the items identified separately in writing by the parties hereto as the described Exhibits attached to this Agreement, each of which is hereby incorporated herein and made a part hereof for all purposes as if set forth in full herein; (viii) all references to money refer to the lawful currency of the United States; and (ix) references to “federal” or “Federal” means U.S. federal or U.S. Federal, respectively.  Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction or otherwise.  On the contrary, this Agreement has been reviewed by each of the parties hereto and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties hereto.  The Article and Section titles and headings in this Agreement are inserted for convenience of reference only and are not intended to be a part of, or to affect the meaning or interpretation of, this Agreement.

 

(k)                                 Survival of Representations, Warranties and Agreements.  All representations, warranties and agreements contained herein shall survive the consummation of the transactions contemplated hereby and the termination of this Agreement.

 

(l)                                     Adjustment.  In the event that the Board determines that any distribution (whether in the form of cash, Units, other securities, or other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Company, issuance of warrants or other rights to purchase Units or other securities of the Company, or other similar transaction or event affects the Units such that an adjustment is determined by the Board to be appropriate in order to

 

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prevent the dilution or enlargement of the benefits or potential benefits intended to be made available under this Agreement, then the Board shall, in such manner as it may deem equitable, in its sole discretion, adjust any or all of the terms of this Agreement and/or the number of outstanding Granted Series B-     Units or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Granted Series B-     Unit.

 

(m)                             Arbitration; Waiver of Jury Trial.  The Company and the Employee agree to the resolution by binding arbitration of all claims, demands, causes of action, disputes, controversies or other matters in question (“claims”) whether or not arising out of this Agreement, whether sounding in contract, tort or otherwise and whether provided by statute or common law, that the Company may have against the Employee or that the Employee may have against the Company or its parents, subsidiaries and affiliates, and each of the foregoing entities’ respective officers, directors, employees or agents in their capacity as such or otherwise; except that this agreement to arbitrate shall not limit the Company’s right to seek equitable relief, including injunctive relief and specific performance, and damages in a court of competent jurisdiction.  The Company and the Employee agree that any arbitration shall be in accordance with the Federal Arbitration Act (“FAA”) and, to the extent an issue is not addressed by the FAA, with the then-current National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”) or such other rules of the AAA as applicable to the claims being arbitrated.  If a party refuses to honor its obligations under this agreement to arbitrate, the other party may compel arbitration in either federal or state court.  The arbitrator shall apply the substantive law of the State of Delaware (excluding Delaware choice-of-law principles that might call for the application of some other state’s law), or federal law, or both as applicable to the claims asserted.  The arbitrator shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration.  The parties agree that venue for arbitration will be in Wilmington, Delaware, and that any arbitration commenced in any other venue will be transferred to Wilmington, Delaware, upon the written request of any party to this Agreement.  In the event that an arbitration is actually conducted pursuant to this Section 10(m), the party in whose favor the arbitrator renders the award shall be entitled to have and recover from the other party all costs and expenses incurred, including reasonable attorneys’ fees, expert witness fees, and costs actually incurred.  Any and all of the arbitrator’s orders, decisions and awards may be enforceable in, and judgment upon any award rendered by the arbitrator may be confirmed and entered by, any federal or state court having jurisdiction.  All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties.  EACH PARTY ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING ANY RIGHT THAT SUCH PARTY MAY HAVE TO A JURY TRIAL OR A COURT TRIAL OF ANY COVERED CLAIM ALLEGED BY SUCH PARTY.

 

(n)                                 WAIVER OF CERTAIN DAMAGE CLAIMS.  NOTWITHSTANDING ANYTHING IN ANY TRANSACTION DOCUMENTS TO THE CONTRARY, TO THE FULLEST EXTENT PERMITTED BY LAW, NEITHER THE COMPANY NOR ANY COVERED PERSON SHALL BE LIABLE TO THE COMPANY, TO ANY MEMBER OR TO ANY OTHER PERSON MAKING CLAIMS ON BEHALF OF THE FOREGOING FOR CONSEQUENTIAL, EXEMPLARY, PUNITIVE, INDIRECT OR SPECIAL DAMAGES, INCLUDING DAMAGES FOR LOSS OF PROFITS, LOSS OF USE

 

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OR REVENUE OR LOSSES BY REASON OF COST OF CAPITAL, ARISING OUT OF OR RELATING TO ANY TRANSACTION DOCUMENT, THE BUSINESS OF THE COMPANY OR ANY OF ITS SUBSIDIARIES, THE GRANTING OR WITHHOLDING OF ANY APPROVAL REQUIRED UNDER THE LLC AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THE TRANSACTION DOCUMENTS, REGARDLESS OF WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, VIOLATION OF ANY APPLICABLE DECEPTIVE TRADE PRACTICES ACT OR SIMILAR LAW OR ANY OTHER LEGAL OR EQUITABLE DUTY OR PRINCIPLE, AND THE COMPANY AND EACH COVERED PERSON RELEASE EACH OF THE OTHER SUCH PERSONS FROM LIABILITY FOR ANY SUCH DAMAGES.

 

(o)                                 Spouses.

 

(i)                                     The Employee’s spouse shall be required to execute a spousal consent in substantially the form required to be executed by spouses of members of the Company in the LLC Agreement (the “Spousal Agreement”) to evidence such spouse’s agreement and consent to be bound by the terms and conditions of this Agreement and the LLC Agreement as to such spouse’s interest, whether as community property or otherwise, if any, in the Series B Units held by the Employee.  If the spouse of the Employee fails to execute the Spousal Agreement, until such time as the Spousal Agreement is duly executed, the Employee’s economic rights associated with his or her Series B Units will be suspended and not subject to recovery.

 

(ii)                                  In the event of a property settlement or separation agreement between the Employee and his spouse, the Employee will use his best efforts to assign to his spouse only the right to share in profits and losses, to receive distributions, and to receive allocations of income, gain, loss, deduction or credit or similar item to which the Employee was entitled, with respect to the Employee’s Series B Units to the extent assigned to the Employee’s spouse.

 

(iii)                               If a spouse or former spouse of the Employee acquires all or a portion of the Series B Units held by the Employee as a result of any property settlement or separation agreement, such spouse or former spouse hereby grants an irrevocable power of attorney (which will be coupled with an interest) to the Employee to give or withhold such approval as the Employee will himself or herself approve with respect to such matter and without the necessity of the taking of any action by any such spouse or former spouse. Such power of attorney will not be affected by the subsequent disability or incapacity of the spouse or former spouse granting such power of attorney. Furthermore, such spouse or former spouse agrees that the Company will have the option at any time to purchase all, but not less than all, of such Series B Units at Fair Market Value as determined by the Company utilizing the last valuation report issued prior to the date the Company elects to redeem such Units.

 

(p)                                 Sections 83 and 409A of the Code.  The parties intend for the issuance of the Granted Series B-     Units to be a transfer of property within the meaning of Section 83 of the Code rather than a deferral of compensation pursuant to Section 409A of the Code.  Accordingly, this Agreement and the issuance of the Granted Series B-     Units shall be construed and interpreted in accordance with such intent and any action required by either of the parties pursuant to this Agreement will be provided in such a manner that the Granted Series B-     Units shall not become subject to the provisions of Section 409A of the Code, including any

 

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IRS guidance promulgated with respect to Section 409A; provided, however, in no event shall any such action to comply with Section 409A reduce the aggregate amount of the benefit provided or payable to the Employee hereunder unless expressly agreed in writing by the Employee.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
NEXEO   SOLUTIONS HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:   Michael B. Farnell, Jr.
    
	
 
    	
Title:   Executive   Vice President, Chief Legal Officer, and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMPLOYEE   NAME
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

SIGNATURE PAGE TO

SERIES B UNIT AGREEMENT

 

 

EXHIBIT A
 DEFINED TERMS

 

“Addendum Agreement” has the meaning assigned to such term in the LLC Agreement.

 

“Adjusted EBITDA” means the Company’s earnings before interest, taxes, depreciation and amortization for the applicable year, adjusted as the Company deems necessary to reflect extraordinary or non-recurring events, including, without limitation, acquisitions, divestitures and other similar transactions.

 

“Affiliate” has the meaning assigned to such term in the LLC Agreement.

 

“Board” has the meaning assigned to such term in the LLC Agreement.

 

“Business Day” has the meaning assigned to such term in the LLC Agreement.

 

“Cause” means (1) a breach by the Employee of the Employee’s professional obligations to the Company (other than as a result of physical or mental incapacity) which constitutes nonperformance by the Employee of his obligations and duties as determined by the Board (which may, in its sole discretion, give the Employee notice of, and the opportunity to remedy, such breach), (2) commission by the Employee of an act of fraud, embezzlement, misappropriation, willful misconduct or breach of fiduciary duty against the Company or any of its affiliates or other conduct harmful or potentially harmful to the Company’s or any of its affiliate’s best interest, as reasonably determined by a majority of the members of the Board, (3) the Employee’s conviction, plea of no contest or nolo contendere, deferred adjudication or unadjudicated probation for any felony or any crime involving moral turpitude, (4) the failure of the Employee to carry out, or comply with, in any material respect, any lawful directive of the Board (which the Board, in its sole discretion, may give the Employee notice of, and an opportunity to remedy), or (5) the Employee’s unlawful use (including being under the influence) or possession of illegal drugs.

 

“Change of Control” means the occurrence of any of the following events after the Effective Date: (1) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Nexeo Solutions on a consolidated basis with its Affiliates to any person or group of related persons (within the meaning of Section 13(d) of the Exchange Act), other than to the Company and/or its Affiliates; or (2) (i) any person or group (within the meaning of Section 13(d) of the Exchange Act) (other than the Company and/or its Affiliates) becoming the beneficial owner (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly through any equity purchase, reorganization, merger, consolidation or other transaction, of securities representing more than 40% of the aggregate outstanding voting power of Nexeo Solutions and (ii) the Company and its Affiliates beneficially owning (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the aggregate a lesser percentage of the voting power of the Nexeo Solutions than such other person or group (within the meaning of Section 13(d) of the Exchange Act); but excluding, in each case, (x) any transfer or transfers by the Company and its Affiliates, directly or indirectly, of a beneficial interest in any equity securities of the Nexeo Solutions to any person or group (within the meaning of Section 13(d) of the Exchange Act) or (y) an Equity Syndication.

 

EXHIBIT A-1

 

“Code” has the meaning assigned to such term in the LLC Agreement.

 

“Company Market Value” means, at the time of the applicable valuation, the difference between (a) the aggregate fair market value of all Company assets and (b) the aggregate amount of all debts and other liabilities (including an appropriate value, if any, for contingent liabilities of the Company) of the Company and its Subsidiaries (including any unpaid tax distributions that are payable for any calendar year prior to the date of such valuation).

 

“Controlled by” has the meaning assigned to such term in the LLC Agreement.

 

“Covered Person” has the meaning assigned to such term in the LLC Agreement.

 

“Disabled” means the Employee’s inability to perform, with or without reasonable accommodation, the essential functions of his position with the Company for a period of 180 consecutive days due to mental or physical incapacity, as determined by mutual agreement of a physician selected by the Company or its insurers and a physician selected by the Employee; provided, however, if the opinion of the Company’s physician and the Employee’s physician conflict, the Company’s physician and the Employee’s physician shall together agree upon a third physician, whose opinion shall be binding.

 

“EBITDA” means the Company’s Earnings Before Interest, Taxes, Depreciation and Amortization.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” means, at the time of the valuation of the applicable Series B Units, the amount that would be distributable to the holders of such Units if the Company Market Value determined at the time of such valuation were distributed to the holders of all of the Membership Interests in complete liquidation pursuant to the rights and preferences set forth in Section 6.1 of the LLC Agreement (or any provision of the LLC Agreement that replaces such Section 6.1 as the result of an amendment to the LLC Agreement after the date hereof) as in effect immediately prior to such valuation.

 

“Good Reason” means (1) either a diminution of the Employee’s duties, or a change in the Employee’s title or reporting relationship, that results in a materially adverse impact on the Employee’s seniority, standing or role at the Company, or (2) a material reduction in the Employee’s annual base salary.

 

“Initial Majority Sponsor Units” means the Company’s common units issued to the Majority Sponsors in connection with the closing of the Transaction, and shall include any units, securities or other property or interests received by the Majority Sponsors (or transferee of such units in an Equity Syndication) in respect of such units in connection with any distribution, unit split or combination of units, recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination, repurchase, merger, exchange of units or other transaction or event that affects the Company’s common units occurring after the date of issuance.

 

EXHIBIT A-2

 

“Involuntary Termination” means any termination of the Employee’s employment with a Nexeo Employer which:

 

(a)                                 is a termination by the employer for any other reason whatsoever or for no reason at all, in the sole discretion of the employer other than (i) upon the Employee’s death, (ii) because the Employee is determined to be Disabled or (iii) for Cause; or

 

(b)                                 results from the Employee’s voluntary termination of employment for Good Reason.

 

“LIBOR” means on any day, the interest rate per annum equal to the rate per annum reported on such day (or if such day is not a Business Day, on the prior Business Day) in the eastern edition of the Wall Street Journal “Money Rates” section as the one-month London Interbank Offered Rate for U.S. dollar deposits (or if the Wall Street Journal shall cease to be publicly available, then LIBOR shall be as reported by any publicly available source of similar market data selected by the Company that, in the Company’s reasonable judgment, accurately reflects such London Interbank Offered Rate).

 

“Liquidity Event” shall occur on the date of (a) a transaction, including any financial restructuring transaction, which when aggregated, if applicable, with any other prior transaction (whether or not related), results in the cumulative sale, transfer or other disposition of more than 65% of the Initial Majority Sponsor Units and with respect to which the Majority Sponsors have received only cash, marketable securities or any combination of cash or marketable securities; (b) an underwritten initial public offering of equity securities by the Company or Nexeo Solutions (or any of their Affiliates or Subsidiaries that will be a successor to the Company or Nexeo Solutions) pursuant to an effective registration statement under the Securities Act or the consummation of a similar initial public offering pursuant to a comparable process under applicable foreign securities laws which results in equity securities of the Company or Nexeo Solutions (or any of their Affiliates or Subsidiaries that will be a successor to the Company or Nexeo Solutions) being listed on a national securities exchange in the U.S. or another country or (c) any other transaction or series of transactions (whether or not related) determined by the Board, in its sole discretion, to constitute a “Liquidity Event.”

 

“Majority Sponsors” shall mean, collectively or individually as the context requires, TPG Partners VI, L.P. and/or their respective affiliates.

 

“Membership Interests” has the meaning assigned to such term in the LLC Agreement.

 

“MoM” means a number, determined on each Liquidity Event, equal to the quotient of (a) all cash received directly or indirectly by the Majority Sponsors in connection with the Liquidity Event, including all cash dividends and other distributions made directly or indirectly to the Majority Sponsors, in respect of the Initial Majority Sponsor Units sold, transferred or otherwise disposed of on or prior to the date on which the Liquidity Event occurs, divided by (b) the aggregate purchase price paid by such Majority Sponsors for the Initial Majority Sponsor Units.

 

“Permitted Transferee” has the meaning assigned to such term in the LLC Agreement.

 

“Person” has the meaning assigned to such term in the LLC Agreement.

 

EXHIBIT A-3

 

“Securities Act” has the meaning assigned to such term in the LLC Agreement.

 

“Series B Units” has the meaning assigned to such term in the LLC Agreement.

 

“Subsidiary” has the meaning assigned to such term in the LLC Agreement.

 

“Threshold Value” has the meaning assigned to such term in the LLC Agreement.

 

“Transaction” means the transactions contemplated under that certain Agreement of Purchase and Sale, dated as of November 5, 2010, by and between Ashland, Inc. and TPG Accolade, LLC (TPG Accolade, LLC has since been renamed “Nexeo Solutions, LLC”).

 

“Transaction Documents” has the meaning assigned to such term in the LLC Agreement.

 

“Units” has the meaning assigned to such term in the LLC Agreement.

 

“Unvested Units” has the meaning assigned to such term in the LLC Agreement.

 

“Vested Units” has the meaning assigned to such term in the LLC Agreement.

 

“Vesting Beginning Date” shall mean                               .

 

EXHIBIT A-4

 

EXHIBIT B

 

CURRENT ADJUSTED EBITDA AMOUNTS FOR
 EACH ANNUAL PERFORMANCE PERIOD

 

EXHIBIT B-1Exhibit
10.1

 

EXCHANGE AGREEMENT

 

This Exchange Agreement
(the “Agreement”) is made and entered into effective this 15th day of November, 2014 by and among Robson
Dowry Associates Ltd., Shareholders, (“RDA Shareholders”) and Robson Dowry Associates Ltd., and its related subsidiaries,
an entity under the laws of England and Wales (“RDA”); and EFactor Group Corp., a Nevada corporation (“EFactor”),
on the other hand.

 

RECITALS

 

The Board of Directors
of EFactor and the Board of Directors of RDA, and the RDA Shareholders have adopted resolutions approving and adopting the proposed
transaction whereby EFactor will acquire from the RDA Shareholders all of the issued and outstanding shares of RDA in exchange
for shares of common stock of EFactor (the "Exchange"), upon the terms and conditions set forth in this Agreement.

 

The RDA
Shareholders owns the number of RDA Shares identified on the Signature Page.

 

RDA will enter into
this Agreement for the purpose of evidencing its consent to the consummation of the Exchange and for the purpose of making certain
representations, warranties, covenants and agreements.

 

NOW THEREFORE,
for the mutual consideration set out herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged,
the parties agree as follows:

 

AGREEMENT

 

ARTICLE I THE EXCHANGE
AND THE TRANSACTION

 

1.1 The Exchange.
Upon the terms and subject to the conditions hereof, at the Closing (as hereinafter defined), the RDA Shareholders will sell, convey,
assign, transfer and deliver to EFactor, the RDA Shares and certificates or other evidence representing all issued and outstanding
RDA Shares, and EFactor will issue to the RDA Shareholders, in exchange for such RDA Shares, a stock certificate representing an
aggregate of 1,500,000 shares of EFactor common stock (ticker symbol: EFCT) as contemplated under Section 1.3 of this Agreement
(“Exchange Shares”).

 

1.2 Closing.
The closing of the Exchange (the "Closing") shall take place on the effective date listed above at a place as
mutually determined by the parties as may be mutually agreed upon by the parties when all conditions precedent have been met and
all required documents have been delivered (“Closing Date”). The documents to be delivered at Closing are set
forth in Article X of this Agreement.

 

1.3 Conditions
Precedent to Closing. This Agreement, and the transactions contemplated hereby, the obligations of EFactor to have
issued instruction to deliver the Exchange Shares, the delivery the RDA Shares, and the Parties to satisfy their other obligations
hereunder shall be subject to the fulfillment by the Parties (or waiver by the Parties), at or prior to the Closing, of the following
conditions, which the Parties agree to use their best efforts to cause to be fulfilled:

 

(a)       Representations,
Performance. As of the Effective Date , the representations and warranties contained in this Agreement shall be true at and
as of the date hereof and shall be repeated and shall be true at and as of the Closing with the same effect as though made at
and as of the Closing.

 

(b)      Consents.
Any required consent to the transactions contemplated by this Agreement shall have been obtained or waived.

 

    	Page 1 of 17

    	 

    

 

 

(c)       Consents
and Approvals. All consents, approvals, authorizations, qualifications and orders of governmental or regulatory bodies which
are (1) necessary to enable EFactor to fully operate the business of RDA as contemplated from and after the Closing shall have
been obtained and be in full force and effect, or (2) necessary for the consummation of the transactions contemplated hereby,
shall have been obtained. Any notices to or consents of any party to any agreement or commitment constituting part of the transactions
contemplated hereby, or otherwise required to consummate any such transactions, shall have been delivered or obtained.

 

(d)         Legal
Opinion. RDA has provided EFactor with an opinion of counsel, satisfactory to EFactor that the Exchange of the RDA Shares for the
Exchange Shares does meets all, if any applicable Government Authorizations under the laws of England and Wales.

 

1.4 Post
Closing Financial Statements. The parties acknowledge that EFactor is required to file with the SEC a Form 8-K within
4 days and further audited financials within seventy one (71) days following the Closing. The parties acknowledge that such Form
8-K must provide Form 10 information about RDA. The parties further acknowledge that the financial statements of EFactor required
by Regulation of S-X, as adopted by the SEC, together with proforma financial statements, must be filed with such Form 8-K. RDA
and RDA Shareholders shall take all action necessary to provide EFactor with Form 10 information about RDA and to cause such required
financial statements to be filed within the required time period.

 

ARTICLE II DEFINITIIONS

 

For purposes of this
Agreement, the Exhibit and Schedules attached hereto, the following terms shall have the meanings specified or referred to below,
unless the context otherwise requires:

 

“Affiliate”
means with respect to a specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by, or is under common control with, the specified Person; it being understood and agreed that, for purposes of
this definition, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of voting securities or other ownership interest,
by contract or otherwise.

 

“Agreement”
means this Exchange Agreement, including all amendments hereof and all Exhibits and Schedules hereto.

 

“Closing”
has the meaning set forth in Section 1.2.

 

“Closing
Date” has the meaning set forth in Section 1.2.

 

“Consent”
means any approval, consent, ratification, waiver, or other authorization, release or similar action that is necessary (including
any Governmental Authorization).

 

“Disclosure
Schedule” means the schedule of exceptions attached hereto and incorporated herein.

 

“EFactor”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“EFactor
Financial Statements” means the audited financial statements of EFactor as of and for the years ended December 31,
2013 and December 31, 2012, and the unaudited financial statements as of and for the six month period ended June 30, 2014.

 

    	Page 2 of 17

    	 

    

  

“EFactor
SEC Documents” has the meaning set forth in Section 5.10.

 

“Exchange”
means the exchange of the RDA Shares for Exchange Shares at the Closing pursuant to the terms and conditions of this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Exchange
Shares” means the shares of EFactor Common Stock to be issued to the RDA Shareholders in the Exchange.

 

“Financial
Statements of RDA” has the meaning set forth in Section 4.2.

 

“Financial
Statements of EFactor” has the meaning set forth in Section 5.3.

 

“GAAP”
means United States generally accepted accounting principles as in effect from time to time.

 

“Governmental
Authorizations” means any: (a) permit, license, certificate, franchise, concession, approval, consent, ratification,
permission, clearance, confirmation, endorsement, waiver, certification, designation, rating, registration, qualification or authorization
issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any Law; or
(b) right under any contract with any Governmental Body.

 

“Governmental
Body” means any (i) nation, state, county, city, town, village, district, or other jurisdiction of any nature; (ii)
federal, state, local, municipal, foreign, or other government; (iii) governmental or quasi-governmental authority of any nature,
including any governmental agency, branch, department, board, official, or entity and any court or other tribunal; (iv) body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power
of any nature; and any Person, directly or indirectly, owned by and subject to the control of any of the foregoing.

 

“Intellectual
Property” means collectively, the following intangible assets that are owned or used by the party in connection with
its Business:

 

(i)     all
fictitious business names, and any trade names, registered and unregistered trademarks, servicemarks and logos, together with all
translations, adaptations, derivations and combinations thereof that are used in connection therewith and including all goodwill
associated therewith and any applications or registrations therefor, and renewals in connection therewith (collectively, the “Marks”);

 

(ii)     all
patents and patent applications and patent disclosures, together with all reissuances, continuations (in whole or in part), revisions
and reexaminations thereof (collectively, the “Patents”);

 

(iii)    all
copyrights in both published works and unpublished works that are material to the conducting of the Business and all applications,
renewals and registrations thereof (collectively, the “Copyrights”);

 

(iv)    all
inventions (whether or not patentable), all proprietary rights and business information (including, but not limited to, ideas,
research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data,
designs, drawings, specifications, customer/subscriber lists, supplier lists, pricing and cost information, and business and marketing
plans and proposals) (collectively, “Trade Secrets”); and

 

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(v)     all
computer software and databases (including data and related documentation) other than “off-the shelf” software (“Software”).

 

“Knowledge
of RDA” means the actual knowledge of any of the RDA Shareholders, former Shareholders or the RDA Board of Directors.

 

“Knowledge
of EFactor” means the actual knowledge of any of the executive officers of EFactor.

 

“Law”
means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance,
code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put
into effect by or under the authority of any Governmental Body.

 

“Liability”
means any liability or obligation (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, whether incurred or consequential and whether due or to become due),
including any liability for Taxes.

 

“Lien”
means any mortgage, pledge, lien, security interest, charge, claim, equitable interest, encumbrance, restriction on transfer, conditional
sale or other title retention device or arrangement (including a capital lease), deposit arrangement, collateral assignment, or
restriction on the creation of any of the foregoing, whether relating to any property or right or the income or profits therefrom;
provided, however, that the term “Lien” shall not include statutory liens for Taxes to the extent that the payment
thereof is not in arrears or otherwise due.

 

“Material
Adverse Effect” means any event or events or any change in or effect on the Parties’ financial condition, business,
operations, assets, properties, or results of operations that, when taken as a whole, (i) has materially interfered or is reasonably
likely to materially interfere with the ongoing operations of the Parties’ business or (ii) singly or in the aggregate has
resulted in, or is reasonably likely to have, a material adverse effect on the ongoing conduct of the business of the Parties;
provided, however, that any adverse effect arising out of or resulting from (x) an event or series of events or circumstances affecting
the United States economy generally or the economy generally of any other country in which the Parties operate or (y) the entering
into of this Agreement and the consummation of the transactions contemplated thereby, shall be excluded in determining whether
a Material Adverse Effect has occurred.

 

“Ordinary
Course of Business” means the ordinary course of business consistent with past custom and practice (including
with respect to quantity and frequency).

 

“Person”
means an individual, a partnership, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization, or a Governmental Body (or any department, agency, or political subdivision thereof).

 

“RDA”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“RDA
Shareholders” has the meaning set forth in the introductory paragraph of this Agreement.

 

“RDA
Shares” means One hundred (100) ordinary shares of £1 each in the capital of RDA.

 

“RDA
Financial Statements” means the audited financial statements of RDA as of and for the period ended December 31, 2013
and the audited financial statements as of and for the interim period ended September 30th, 2014. EFactor will assist in the preparation
and costs of these documents with RDA.

 

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“EFactor”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“EFactor
Financial Statements” means the audited financial statements of EFactor as of and for the years ended December 31,
2013 and December 31, 2012, and the unaudited financial statements as of and for the three month period ended June 30, 2014.

 

“EFactor
SEC Documents” has the meaning set forth in Section 5.10.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Signature
Page” has the meaning set forth in the introductory paragraph of this agreement

 

“Transaction”
means the Exchange and other actions described in Section 1.3 of this Agreement

 

ARTICLE III REPRESENTATIONS
AND WARRANTIES OF

THE RDA MEMBERS

 

The RDA
Shareholders hereby represents and warrants to EFactor as follows:

 

3.1 Ownership
of the RDA Shares. The RDA Shareholders own, beneficially and of record, good and marketable title to all of the outstanding
of the RDA Shares free and clear of all Liens, adverse claims, proxies, options or stockholders' agreements. The RDA Shareholders
represent that they have no right or claims whatsoever to any additional RDA Shares and do not have any options, warrants or any
other instruments entitling the RDA Shareholders to exercise to purchase any RDA Shares. At the Closing, the RDA Shareholders will
convey to EFactor good and marketable title to all of the RDA Shares, with full title guarantee (as such expression is construed
under English law) free and clear of any Liens, security interests, liens, adverse claims, encumbrances, equities, proxies, options,
stockholders' agreements or restrictions.

 

3.2 Authority
Relative to this Agreement. This Agreement has been duly and validly executed and delivered by the RDA Shareholders and
constitutes a valid and binding agreement of the RDA Shareholders, enforceable against the RDA Shareholders in accordance with
its terms.

 

3.3 Investment.
Such RDA Shareholders (a) are acquiring the Exchange Shares solely for their own account for investment purposes, and not with
a view to the distribution thereof, (b) are sophisticated investors with knowledge and experience in business and financial matters,
(c) have received certain information concerning EFactor and have had the opportunity to obtain additional information as desired
in order to evaluate the merits and the risks inherent in holding the Exchange Shares, and (d) are able to bear the economic risk
of acquiring the Exchange Shares pursuant to the terms of this Agreement, including a complete loss of their investment in the
Exchange Shares. The certificates evidencing the Exchange Shares shall bear a restrictive legend indicating such Exchange Shares
have been issued in a non-registered transaction and restricted securities as that term is defined in Rule 144 promulgated under
the Securities Act.

 

ARTICLE IV REPRESENTATIONS
AND WARRANTIES OF

RDA AND THE RDA SHAREHOLDERS

 

RDA and the RDA Shareholders,
hereby represent and warrants as follows, which warranties and representations shall also be true as of the Closing except as set
forth in the disclosure schedule attached to this Agreement (the RDA “Disclosure Schedule”).  The RDA Disclosure
Schedule is arranged in paragraphs corresponding to the numbered paragraphs contained in this Article IV.

 

    	Page
5 of 17

    	 

    

 

 

4.1          Authorization
of Transaction. RDA has the power to enter into this Agreement and to perform its obligations hereunder. The execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the RDA
Shareholders and the Board of Directors of RDA. This Agreement has been duly executed and delivered by RDA and constitutes a legal,
valid and binding obligation of RDA, enforceable against RDA in accordance with its terms, except as enforcement may be limited
by applicable bankruptcy, insolvency or other laws affecting creditor’s rights generally or by legal principles of general
applicability governing the availability of equitable remedies.

 

4.2          Financial
Statements. Within sixty days after the Closing, RDA shall provide EFactor with a copy of the RDA Financial Statements.
The RDA Financial Statements fairly present, in all material respects, the financial condition of RDA as of the date thereof and
the results of its operations for the periods then ended. There are no material Liabilities, obligations or claims not disclosed
or referenced in RDA Financial Statements or in any exhibit thereto or notes thereto other than contracts or obligations occurring
in the ordinary course of business; and no such contracts or obligations occurring in the ordinary course of business constitute
Liens or other Liabilities which materially alter the financial condition of RDA as reflected in the RDA Financial Statements.
The RDA Financial Statements have been prepared in accordance with generally accepted accounting principles “GAAP”
(except as may be indicated therein or in the notes thereto and except for the absence of footnotes, in the case of unaudited financial
statements).

 

4.3          No Litigation
or Proceeding. RDA is not a party to, or the subject of, any pending litigation, claims, or governmental investigation
or proceeding not reflected in RDA Financial Statements, and to the Knowledge of RDA there are no lawsuits, claims, assessments,
investigations, or similar matters, threatened or contemplated against or affecting RDA or the management or properties of RDA.

 

4.4          Organization. RDA
has been duly organized as a corporation and is validly existing and in good standing under the laws of England and Wales,
and has the power to own, lease and operate its property and to carry on its business as now being conducted and is
duly qualified to do business and in good standing to do business in any jurisdiction where so required except where the
failure to so qualify would have no Material Adverse Effect on RDA. The Articles of Association of RDA, are set forth on
Schedule 4.4 attached hereto. All statutory books and registers of RDA have been properly kept, are written up to date and
contain a true, complete and accurate record of all matters which should be contained in them. All returns, particulars,
resolutions and other documents that RDA is required by law to file with, or deliver to, any authority in any jurisdiction
(including, in particular, the Registrar of Companies in the Netherlands) have been correctly made up and duly filed or
delivered.

 

4.5          Capitalization.
All outstanding RDA Shares are, and shall be at Closing, validly issued, fully paid and nonassessable. There are no voting trusts,
proxies or other agreements, commitments or understandings of any character to which RDA is a party or by which RDA is bound with
respect to the voting of any RDA Shares. There are no outstanding obligations to repurchase, redeem or otherwise acquire any RDA
Shares. The RDA Shares constitute the whole of the allotted and issued share capital of RDA and are fully paid or credited as fully
paid. No person has any right to require, at any time, the transfer, creation, issue or allotment of any share, loan capital or
other securities (or any rights or interest in them) of RDA, and neither RDA nor the RDA Shareholders has agreed to confer any
such rights, and no person has claimed any such right. RDA does not hold or beneficially own, nor has it agreed to acquire, any
shares, loan capital or any other securities in any company.

 

    	Page 6 of 17

    	 

    

 

 

4.6           Contracts.
Except as set forth on Schedule 4.6, RDA does not have any material contracts, leases, arrangements or commitments (whether oral
or written). RDA is not a party to or bound by or affected by any contract, lease, arrangement or commitment (whether oral or written)
relating to: (a) the employment of any person; (b) the acquisition of services, supplies, equipment or other personal property;
(c) the purchase or sale of real property; (d) distribution, agency or construction; (e) lease of real or personal property as
lessor or lessee or sublessor or sublessee; (f) lending or advancing of funds; (g) borrowing of funds or receipt of credit; (h)
incurring any obligation or liability; or (i) the sale of personal property.

 

4.7          No
Breaches of Contracts. RDA has not materially breached any material agreement to which it is a party.

 

4.8           Intellectual
Property. RDA owns or has the right to use pursuant to license, sublicense, agreement, or permission all Intellectual Property
necessary or desirable for the operation of the business of RDA as presently conducted. Each item of Intellectual Property owned
or used by RDA immediately prior to the Closing will be owned or available for use by RDA on identical terms and conditions immediately
subsequent to the Closing. RDA has taken all necessary action to maintain and protect each item of Intellectual Property that it
owns or uses. RDA has not interfered with, infringed upon, misappropriated, or otherwise come into conflict with any Intellectual
Property rights of third parties. Schedule 4.8 identifies each patent or registration which has been issued to RDA with respect
to any of its Intellectual Property, identifies each pending patent application or application for registration which RDA has made
with respect to any of its Intellectual Property, and identifies each license, agreement, or other permission which RDA has granted
to any third party with respect to any of its Intellectual Property (together with any exceptions). With respect to each item of
Intellectual Property required to be identified in Schedule 4.8:

 

(a)    RDA
possesses all right, title, and interest in and to the item, free and clear of any lien, charge, encumbrance, license or other
restriction;

 

(b)    the
item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge;

 

(c)    no
action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or is threatened which challenges
the legality, validity, enforceability, use, or ownership of the item; and

 

(d)    Schedule
4.8 identifies each item of Intellectual Property that any third party owns and that RDA uses pursuant to license, sublicense,
agreement, or permission. With respect to each item of Intellectual Property required to be identified in Schedule 4.8:

 

(i)      the
license, sublicense, agreement, or permission covering the item is legal, valid, binding, enforceable, and in full force and effect;

 

(ii)      the
license, sublicense, agreement, or permission will continue to be legal, valid, binding, enforceable, and in full force and effect
on identical terms following the consummation of the transactions contemplated hereby;

 

(iii)    no
party to the license, sublicense, agreement, or permission is in breach or default, and no event has occurred which with notice
or lapse of time would constitute a breach or default or permit termination, modification, or acceleration thereunder;

 

(iv)    no
party to the license, sublicense, agreement, or permission has repudiated any provision thereof;

 

    	Page 7 of 17

    	 

    

  

(v)    with
respect to each sublicense, the representations and warranties set forth in subsections (i) through (iv) above are true and correct
with respect to the underlying license;

 

(vi)   the
underlying item of Intellectual Property is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge;
and

 

(vii)  no
action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or is threatened which challenges
the legality, validity, or enforceability of the underlying item of Intellectual Property.

 

4. 9 Title
to Assets. RDA has good and marketable title to, or a valid leasehold interest in, the properties and assets used by it
located on its premises, or shown on the most recent balance sheet included in RDA’s Financial Statements or acquired after
the date thereof, free and clear of any liens, charges or encumbrances, except for properties and assets disposed of in the ordinary
course of business since the date of the such most recent balance sheet. The assets owned by RDA comprise all the assets necessary
for the continuation of RDA’s business as it is carried on at the date of this agreement.

 

4.10          Books
and Records. The financial records, minute books, and other documents and records of RDA have been or will
be made available to EFactor prior to the Closing.

 

4.11         Legal
Compliance. To the knowledge of RDA, it is and has been, in compliance with, and has conducted any business previously
owned or operated by it in compliance with, all applicable laws, orders, rules and regulations of all governmental bodies and agencies,
including applicable securities laws and regulations and environmental laws and regulations, except where such noncompliance has
and will have, in the aggregate, no material adverse effect.

 

4.12      Undisclosed
Liabilities. RDA has no material liability (whether known or unknown, whether asserted or unasserted, whether
absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due,
including any liability for taxes), except for (i) liabilities set forth in the RDA Financial Statements.

 

4.13Employee
and Consultants. RDA has provided to EFactor an accurate and complete list of all of its current employees, consultants
or independent contractors. RDA is not a party to or bound by any employment agreement or any union contract, collective bargaining
agreement or similar contract or agreement, or any other contract or agreement to provide severance payments or benefits to any
employee upon termination of employment.

 

4.14 Permits
and Licenses. RDA holds all of the material permits, licenses, certificates or other authorizations of foreign, federal,
state or local governmental agencies required for the conduct of its business as presently conducted except where the failure to
obtain such permits, licenses, certificates or other authorization would have no Material Adverse Effect on RDA.

 

4.15 No Disagreements
With lawyers or Accountants. There are no disagreements of any kind presently existing, or reasonably anticipated by RDA
to arise, between the accountants and lawyers formerly or presently employed by RDA.

 

4.16 Taxation.
All notices, returns (including any land transaction returns), reports, accounts, computations, statements, assessments, claims,
disclaimers, elections and registrations and any other necessary information which have, or should have, been submitted by RDA
to any taxation authority for the purposes of taxation have been made on a proper basis, were submitted within applicable time
limits and were accurate and complete in all material respects. None of the above is, or is likely to be, the subject of any material
dispute with any taxation authority. All taxation (whether of the UK or elsewhere), for which RDA has been liable or is liable
to account, has been duly paid (insofar as such taxation ought to have been paid) by the due dates and no penalties, fines, surcharges
or interest have been incurred.

 

    	Page 8 of 17

    	 

    

  

4.17     Representations
and Warranties. No representation or warranty by RDA contained in this Agreement and no statement contained in any
certificate, schedule or other communication furnished pursuant to or in connection with the provisions hereof contains or
shall contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. There is no current or prior
event or condition of any kind or character pertaining to RDA that may reasonably be expected to have a material adverse
effect on RDA. Except as specifically indicated elsewhere in this Agreement, all documents delivered by RDA in connection
herewith have been and will be complete originals, or exact copies thereof.

 

ARTICLE
V REPRESENTATIONS AND WARRANTIES OF EFACTOR

 

EFactor
hereby represents and warrants as follows, which warranties and representations shall also be true as of the Closing except as
set forth in the disclosure schedule attached to this Agreement (the “EFactor Disclosure Schedule”).  The
EFactor Disclosure Schedule is arranged in paragraphs corresponding to the numbered paragraphs contained in this Article 5.

 

5.1       Delivery
of EFactor Exchange Shares to RDA Shareholders. As of the Closing, the Exchange Shares to be issued and delivered to the
RDA Shareholders in the Exchange will, when so issued and delivered, constitute duly authorized, validly and legally issued, fully-paid,
nonassessable shares of EFactor common stock, will not be issued in violation of any preemptive or similar rights, will be issued
free and clear of all Liens.

 

5.2        Authorization
of Transaction. EFactor has the corporate power to enter into this Agreement and to perform its obligations hereunder.
The execution and delivery of this Agreement and the consummation of the Transaction have been duly authorized by the Board of
Directors of EFactor. This Agreement has been duly executed and delivered by EFactor and constitutes a legal, valid and binding
obligation of EFactor, enforceable against EFactor in accordance with its terms except as enforcement may be limited by applicable
bankruptcy, insolvency or other laws affecting creditor’s rights generally or by legal principles of general applicability
governing the availability of equitable remedies.

 

5.3        Financial
Statements. EFactor has made available to RDA and the RDA Shareholders through the SEC’s EDGAR System, a true
and complete copy of the EFactor Financial Statements. The EFactor Financial Statements fairly present, in all material
respects, the financial condition of EFactor as of the date thereof and the results of its operations for the periods then
ended. EFactor Financial Statements have been prepared in accordance with generally accepted accounting principles (except as
may be indicated therein or in the notes thereto and except for the absence of footnotes, in the case of unaudited financial
statements).

 

5.4       No
Litigation or Proceeding. EFactor is not a party to, or the subject of, any pending litigation, claims, or
governmental investigation or proceeding not reflected in EFactor Financial Statements, and to the Knowledge of EFactor there
are no lawsuits, claims, assessments, investigations, or similar matters, threatened or contemplated against or affecting
EFactor or the management or properties of EFactor.

 

5.5        Organization.
EFactor Group Corp is duly organized, validly existing and in good standing under the laws of the State of Nevada; has the corporate
power to own, lease and operate its property and to carry on its business as now being conducted and is duly qualified to do business
and in good standing to do business in any jurisdiction where so required except where the failure to so qualify would have no
material adverse effect on EFactor.

 

    	Page 9 of 17

    	 

    

  

5.6       Capitalization.
EFactor Group will provide full disclosure on its capital structure prior to the Closing. There are no existing options,
convertible or exchangeable securities, calls, claims, warrants, preemptive rights, registration rights or commitments of any
character relating to the issued or unissued capital stock or other securities of EFactor, that have not been disclosed in
EFactor’s Financial Statements. There are no voting trusts, proxies or other agreements, commitments or understandings
of any character to which EFactor is a party or by which EFactor is bound with respect to the voting of any capital stock of
EFactor.

 

5.7        Intellectual
Property. EFactor owns Intellectual Property as follows;

 

The E-FACTOR trademark in
the Benelux Countries (union of states comprising three neighboring countries in Midwestern Europe: Belgium, the Netherlands and
Luxembourg)

 

Registration Number: 0932845

Number and Filing Date:
1257281 01.11.2012 12.32

 

EFactor Group Corp. through
its Robson Dowry subsidiary has the following additional trademarks:

 

	TRADEMARK	 	SERIAL /

    REG. NO.	 	ISSUANCE DATE	 	COUNTRY
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

5.8     Title
to Assets. EFactor has good and marketable title to, or a valid leasehold interest in, the properties and assets used by
it located on its premises, or shown on the most recent balance sheet included in EFactor’s Financial Statements or acquired
after the date thereof, free and clear of any liens, charges or encumbrances, except for properties and assets disposed of in the
ordinary course of business since the date of the such most recent balance sheet.

 

5.9    Legal Compliance.
To the best knowledge of EFactor, it is and has been, in compliance with, and EFactor has conducted any business previously owned
or operated by it in compliance with, all applicable laws, orders, rules and regulations of all governmental bodies and agencies,
including applicable securities laws and regulations and environmental laws and regulations, except where such noncompliance has
and will have, in the aggregate, no material adverse effect. EFactor has not received notice of any noncompliance with the foregoing,
nor does it have knowledge of any claims or threatened claims in connection therewith. EFactor has never conducted any operations
or engaged in any business transactions whatsoever other than as set forth in the reports EFactor has previously filed with the
SEC.

 

    	Page 10 of 17

    	 

    

  

5.10 SEC Reports.
EFactor has filed all required documents, reports and schedule with the SEC, the FINRA and any applicable state or regional securities
regulators or authorities (collectively, the “EFactor SEC Documents”). As of their respective dates, the EFactor SEC
Documents complied in all material respects with the requirements of the Securities Act, the Exchange Act, the FINRA rules and
regulations and state and regional securities laws and regulations, as the case may be, and, at the respective times they were
filed, none of the EFactor SEC Documents contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading.

 

5.11 Consents. The
execution and delivery by EFactor of this Agreement and the closing documents and the consummation by EFactor of
the transactions contemplated hereby do not and will not (i) require the consent, approval or action of, or any filing or
notice to, any corporation, firm, person or other entity or any public, governmental or judicial authority (except for such
consents, approvals, actions, filing or notices the failure of which to make or obtain will not in the aggregate have a
material adverse effect); (ii) violate any order, writ, injunction, decree, judgment, ruling, law, rule or regulation of any
Governmental Authority applicable to EFactor, or its business or assets; (iii) constitute a material breach of any agreement,
indenture, mortgage, license or other instrument or document to which EFactor, is a party or to which any of them is
otherwise subject; and (iv) violate or conflict with any provision of the respective Articles of EFactor.

 

5.12  No Disagreements
with Lawyers or Accountants. There are no disagreements of any kind presently existing, or reasonably anticipated by EFactor
to arise, between the accountants and lawyers formerly or presently employed by EFactor.

 

5.13 No Security
Regulatory Investigation. Neither EFactor nor any of its past or present officers or directors is, or ever has been,
the subject of any formal or informal inquiry or investigation by the SEC or the FINRA.

 

5.14 Representations
and Warranties. No representation or warranty by EFactor contained in this Agreement and no statement contained in any
certificate, schedule or other communication furnished pursuant to or in connection with the provisions hereof contains or shall
contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. There is no current or prior event or condition of any
kind or character pertaining to EFactor that may reasonably be expected to have a material adverse effect on EFactor. Except as
specifically indicated elsewhere in this Agreement, all documents delivered by EFactor in connection herewith have been and will
be complete originals, or exact copies thereof.

 

ARTICLE VI CERTAIN ACTIONS
PRIOR TO CLOSING

 

6.1 Access.
Prior to the Closing, RDA, the RDA Shareholders and EFactor, shall be entitled to make such investigations of the assets, properties,
business and operations of the other party, and to examine the books, records, tax returns, financial statements and other materials
of the other party as such investigating party deems necessary in connection with this Agreement and the Transactions. Any such
investigation and examination shall be conducted at reasonable times and under reasonable circumstances, and the parties hereto
shall cooperate fully therein. Until the Closing, and if the Closing shall not occur, thereafter, each party shall keep confidential
and shall not use in any manner inconsistent with the transactions contemplated by this Agreement, and shall not disclose, nor
use for their own benefit, any information or documents obtained from the other party concerning the assets, properties, business
and operations of such party, unless such information (i) is readily ascertainable from public or published information, (ii) is
received from a third party not under any obligation to keep such information confidential, or (iii) is required to be disclosed
by any law or order (in which case the disclosing party shall promptly provide notice thereof to the other party in order to enable
the other party to seek a protective order or to otherwise prevent such disclosure). If this transaction is not consummated for
any reason, each party shall return to the other all such confidential information, including notes and compilations thereof, promptly
after the date of such termination. The representations and warranties contained in this Agreement shall not be affected or deemed
waived by reason of the fact that either party hereto discovered or should have discovered any representation or warranty is or
might be inaccurate in any respect.

 

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6.2 Public
Disclosures. Except as required by law, prior to the Closing, the RDA Shareholders and EFactor agree not to issue any statement
or communications to the public or the press regarding the Transaction without the prior written consent of the other party. EFactor
shall provide RDA with a copy of any document to be filed by EFactor with the SEC regarding this Agreement and/or the Transaction,
not less than two days prior to such filing EFactor shall provide RDA with a copy of any press release or other public announcement
regarding this Agreement and/or the Transaction not less than two days prior to the distribution of such press release or other
public announcement.

 

ARTICLE
VII OTHER CONDITIONS PRECEDENT

 

7.1 Conditions
Precedent to the Obligations of RDA. In addition to the conditions precedent to Closing set forth in Section 1.3 of this
Agreement, all obligations of RDA and RDA Shareholders under this Agreement are subject to the fulfillment, prior to or as of the
Closing, of each of the following conditions:

 

(a) RDA shall have completed
its due diligence review of EFactor, and the results of such review shall be satisfactory to the RDA in its sole discretion.

 

(b) The representations
and warranties by RDA contained in this Agreement or in any certificate or document delivered pursuant to the provisions hereof
shall be true and correct in all material respects at and as of the Closing as though such representations and warranties were
made at and as of such times.

 

(c) RDA and the RDA Shareholders
shall have performed and complied with, in all material respects, all covenants, agreements, and conditions required by this Agreement
to be performed or complied with by them prior to or at the Closing

 

(d) RDA has instituted
a fiscal year end of December 31st;

 

(e) RDA has provided
EFactor with an opinion of counsel, satisfactory to EFactor, that the exchange of the shares of RDA for the shares of EFactor common
stock meets all applicable laws of the England and Wales for the transfer of such shares;

 

(f) The RDA Shareholders
shall have executed the Agreement and exchanged its RDA Shares for Exchange Shares pursuant to this Agreement.

 

(g) All debt long-term
liabilities shall be extinguished from RDA’s books and records, leaving RDA and its related subsidiaries debt-free outside
of normal working capital items.

 

(h) RDA shall have received
all necessary and required approvals and consents from required parties.

 

(i) EFactor and key members
of RDA management, sales, marketing and production team, including, but not limited to, Ian Robson, and others who may be identified
at a later date (in aggregate, the “RDA Management Team”) shall each enter into an employment agreement (the “Employment
Agreement”) with EFactor. The term of each Employment Agreement shall be for a period of two (2) years following the Closing
Date. The Employment Agreement shall include terms that are customary for such agreements including, without limitation, confidentiality,
non-compete agreements, and invention assignment undertakings. Subject to EFactor’s review of RDA’s employment and
compensation practices and policies, each member of the RDA Management Team shall be provided with a compensation package equal
to or greater than that which the employee currently receives from RDA.

 

    	Page 12 of 17

    	 

    

  

7.2 Conditions
Precedent to the Obligations of EFactor. All obligations of EFactor under this Agreement are subject to the fulfillment,
prior to or at the Closing, of each of the following conditions:

 

		(a)	EFactor shall have sufficient shares of its capital stock authorized to complete the Exchange and
the Transaction.

		(b)	EFactor shall have performed and complied with all covenants, agreements, and conditions set forth
or otherwise contemplated in, and shall have executed and delivered all documents required by, this Agreement to be performed or
complied with or executed and delivered by them prior to or at the Closing.

 

		(c)	The directors of EFactor shall have approved in accordance with applicable corporation law the
execution and delivery of this Agreement and the consummation of the Transactions.

 

		(d)	On or before the Closing Date, EFactor shall have delivered to RDA certified copies of resolutions
of the directors of EFactor approving and authorizing the execution, delivery and performance of this Agreement and authorizing
all of the necessary and proper action to enable EFactor to complete the Transaction.

 

ARTICLE VIII SURVIVAL
OF REPRESENTATIONS AND WARRANTIES

 

The representations
and warranties made by EFactor, RDA and the RDA Shareholders (including the representations and warranties set forth in Articles
II, III and IV and the representations and warranties set forth in any certificate delivered at closing by an officer of EFactor,
RDA and RDA Shareholders) shall survive the Closing for a period of six months. For purposes of this Agreement, each statement
or other item of information set forth in any Schedule of a party hereto shall be deemed to be a part of the representations and
warranties made by such party in this Agreement. However, any subsequent modification instituted by EFactor after the effective
date will be deemed to be the responsibility of EFactor as it pertains to these representations and warranties. In the event of
any breach of a representation or warranty prior to the end of the survival period, an aggrieved party shall have such rights as
may be available under Nevada law.

 

ARTICLE IX TERMINATION

 

9.1 This Agreement
may not be terminated after completion of the Closing. There shall be deemed to be a “Breach”
of a representation, warranty, covenant, obligation, or other provision of this Agreement if there is or has been (a) any inaccuracy
(subject to applicable knowledge and materiality qualifiers, if any) in, or breach of, or any failure to comply with, or perform,
such representation, warranty, covenant, obligation, or other provision, or (b) any claim (by any Person) or other circumstance
that is inconsistent with such representation, warranty, covenant, obligation, or other provision; and the term “Breach”
shall be deemed to refer to any such inaccuracy, breach, failure, claim, or circumstance.

 

    	Page 13 of 17

    	 

    

  

ARTICLE X MISCELLANEOUS

 

10.1 Further
Assurances. At any time, and from time to time, after the effective date, RDA and the RDA Shareholders will execute such
additional instruments and take such action as may be reasonably requested by the other party to confirm or perfect title to any
property transferred hereunder or otherwise to carry out the intent and purposes of this Agreement.

 

10.2 Waiver.
Any failure on the part of any party hereto to comply with any of its obligations, agreements or conditions hereunder may be waived
in writing by the party (in its sole discretion) to whom such compliance is owed.

 

10.3 Amendment.
This Agreement may be amended only in writing as agreed to by all parties hereto.

 

10.4 Notices.
All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been
duly given (a) when delivered by hand (with written confirmation of receipt), (b) three (3) days after being deposited in the mails,
if sent by certified mail, with return receipt requested, postage and fees prepaid (c) upon confirmed receipt, if sent by facsimile
transmission, or (d) one (1) day after sending, if sent by a nationally recognized overnight delivery service (receipt requested)
specifying next day delivery, in each case to the appropriate addresses set forth below (or to such other addresses as a party
may designate by notice to the other parties):

 

	
        EFactor Group Corp.

        425 2nd
        Street

        Suite 100

        San Francisco CA 94107

        USA

         

        Attn: Adriaan Reinders,
        CEO

        Email: adrie@efactorgroup.com
	
        Robson Dowry
        Associates Ltd.

        7 Berkeley
        Square

        Clifton,
        Bristol BS8 1HG

        United Kingdom

         

         

        Attn: Ian Robson

        Email:
        ian@robsondowry.co.uk 

  

10.5Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

 

10.6 Binding
Effect. This Agreement shall be binding upon the parties hereto and inure to the benefit of the parties, their respective
heirs, administrators, executors, successors and assigns.

 

10.7 Entire
Agreement. This Agreement and the attached Schedules and Exhibits, is the entire agreement of the parties covering everything
agreed upon or understood in the transaction, and supersedes and replaces each and every agreement entered into between: (1) EFactor;
and (2) either or both of RDA and the RDA Shareholders before the date hereof. There are no oral promises, conditions, representations,
understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof.

 

    	Page
14 of 17

    	 

    

  

10.8 Responsibility
and Costs. Whether the Transaction is consummated or not, all fees, expenses and out-of-pocket costs, including, without
limitation, fees and disbursements of counsel, financial advisors and accountants, incurred by the parties hereto shall be borne
solely and entirely by the party that has incurred such costs and expenses, unless the failure to consummate the Transaction constitutes
a breach of the terms hereof, in which event the breaching party shall be responsible for all costs of all parties hereto.

 

10. 9 Applicable
Law, Jurisdiction and Venue. This Agreement shall be construed and governed by the internal laws of the State of Nevada.
Each party hereto irrevocably consents to the jurisdiction and venue of the state or federal courts located in Clark, State of
Nevada, in connection with any action, suit, proceeding or claim to enforce the provisions of this Agreement, to recover damages
for breach of or default under this Agreement, or otherwise arising under or by reason of this Agreement.

 

(Left Intentionally
Blank)

 

    	Page
15 of 17

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

 

	Robson Dowry Associates Ltd.	 	EFactor Group Corp.
	 	 	 
	 	/s/ Ian Robson	 	 	/s/ Adriaan Reinders
	By:	Ian Robson	 	By:	Adriaan Reinders
	Its:	Shareholders Representative	 	Its:	Chief Executive Officer

  

	/s/ Ian Robson 	 
	Ian Robson 	 
	Managing Director 	 
	Robson Dowry Associates Ltd.	 
	 	 
	/s/ Andrew Robert Sanders	 
	Andrew Robert Sanders	 
	Director 	 
	Robson Dowry Associates Ltd.	 

 

    	Page 16 of 17

    	 

    

  

RDA Shareholders

 

	Shareholders	 	Shares
	 	 	 
	 	 	 
	 	 	 
	/s/ Ian Robson	 	 
	 	 	 
	Ian Robson	 	60
	 	 	 
	Address: 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	/s/ Andrew R. Sanders	 	 
	 	 	 
	Andrew R. Sanders	 	40
	 	 	 
	Address:

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