Document:

AMENDMENT TO THE

CONVERTIBLE PROMISSORY NOTE

 

This AMENDMENT TO
THE CONVERTIBLE PROMISSORY NOTE (the “Amendment”), dated as of ____, 2015, is made by and between EFACTOR
GROUP CORP., a Nevada corporation (the “Borrower”), and MAGNA EQUITIES I, LLC, a New York limited liability
company (the “Holder”).

 

A.           On
______, 2015, the Borrower issued to the Holder that certain Convertible Promissory Note (the “Note”) in the
principal amount of $_____, a copy of which is attached hereto as Exhibit A; and

 

B.            The
Borrower and Holder desire to enter into this Amendment to amend certain terms of the Note.

 

NOW THEREFORE,
in consideration of the foregoing mutual premises and the covenants and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt, and legal adequacy of which is hereby acknowledged, the Borrower and the Holder, intending
to be legally bound, and pursuant to Section 4.3 of the Note, hereby agree to amend the Note as follows:

 

1.            DEFINED
TERMS. All capitalized terms used but not defined in this Amendment shall have the meanings ascribed to them in the Note.

 

2.            AMENDMENT.
The Note is hereby amended as follows:

 

(a)           The
following sentence is hereby added to the end of Section 1.1 of the Note: 

 

“Notwithstanding
anything contained in the paragraphs above, in the event the Borrower consummates a registered primary offering of its securities
(a “Primary Offering”) prior to the repayment or conversion of this Note, the Holder shall have the right, in its discretion,
to (x) demand repayment in full of 40% of the outstanding principal and interest under this Note as of the date of the Primary
Offering (the “Cash Portion”), which repayment shall be made in an amount equal to 125% of the Cash Portion and (y)
convert the remaining 60% of the outstanding principal and interest under this Note into the securities offered in the Primary
Closing, at the closing of such Primary Offering, at a conversion price equal to a 25% discount to the offering price to investors
in the Primary Offering (the “Primary Offering Conversion”). The Borrower shall provide the Holder no less than ten
(10) business days’ notice of the anticipated closing of a Primary Offering and an opportunity to exercise its repayment
and conversion rights in connection therewith. Holder may, by notice given to Borrower within five (5) business days after Borrower’s
delivery of the notice of the anticipated closing of the Primary Offering, elect to exercise its repayment and conversion rights
in connection therewith. Upon Borrower’s satisfaction of the payments and conversions set forth in this paragraph, Holder
agrees that this Note shall no longer be in effect and Borrower shall have no further obligations to Holder under this Note.”

  

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(b)          A
new Section 1.10 is added to the Note as follows:

 

“Lock-Up and
True-Up.

 

(a)          Notwithstanding
anything contained in this Note to the contrary, except for a Primary Offering Conversion, the Holder hereby agrees (i) not to
convert this Note in whole or in part into shares of Common Stock and (ii) not to sell any shares of Common Stock, in each case
from the date hereof until the earlier of the date that is fifteen (15) days following (x) a Primary Offering and (y) the date
that the Common Stock is listed on a U.S. national securities exchange; provided, however, that the Holder shall not be subject
to any further restrictions hereunder in the event that (A) the Primary Offering has not been consummated by October 31, 2015 or
(B) the Trading Price is below $2.00.

 

(b)          If
on the sixtieth (60th) day after the date of the Primary Offering (the “Make Whole Date”) the Market Price
(as defined below) is less than the offering price of the Common Stock issued in the Primary Offering (the “Offering Price”),
then the Holder shall be entitled to receive the number of shares of Common Stock equal in value to (x) (i) the difference between
the Market Price and the Offering Price multiplied by (ii) the original number of shares of Common Stock issuable upon conversion
of the Note, divided by (y) the Market Price (the “Make Whole Shares”). The Make Whole Shares will be “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities Act of 1933, as amended (the “Act”), and
may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or
(ii) the Company or its transfer agent shall have been furnished with an opinion of counsel to the effect that the shares to be
sold or transferred may be sold or transferred pursuant to an exemption from such registration. As used in this Section 1.10(b),
“Market Price” shall mean the volume weighted average Trading Price of the Common Stock for the ten (10) trading days
immediately prior to the Make Whole Date; provided, however, that in no circumstance shall the “Market Price” be lower
than $1.50 for purposes of this Section 1.10(b).”

 

[3.            ISSUANCE
OF WARRANTS. On the date hereof, the Borrower shall issue and sell to the Holder, and the
Holder agrees to purchase from the Borrower, at a purchase price of $0.01, a five-year warrant in the form attached hereto as Exhibit
B, to purchase 50,000 shares of Common Stock with an exercise price of $0.01 per share.]

 

4.            REGISTRATION
RIGHTS. On or prior to the 45th calendar day following the closing of a Public
Offering, the Borrower shall file a registration statement on Form S-1 (or Form S-3 if the Borrower is eligible) with the Securities
and Exchange Commission covering the resale of [(i) the shares of Common Stock issuable upon the exercise of the Warrants to be
issued to the Holder pursuant to Section 3 hereof and (ii)] the shares of Common Stock issued or issuable upon conversion of the
Note. 

 

5.            TERMINATION.
This Amendment may be terminated upon mutual written consent of both parties. Either party may
terminate this Amendment by giving written notice to the other party after the occurrence of one of the following events:

 

(a)          any
material breach of this Amendment by the other party that is not capable of being cured;

 

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(b)          any
breach of this Amendment by the other party that, if capable of being cured, is not cured within five (5) days after written notice
of such breach is received by the breaching party;

 

(c)          the
Primary Offering has not been consummated by October 31, 2015; or

 

(d)          the
Trading Price is below $2.00.

 

6.            miscellanous.

 

(a)          No
Further Amendment. Except for the amendments to the Note set forth and referred to in this Amendment, the Note shall remain
unchanged and in full force and effect.

 

(b)          No
Third Party Beneficiaries. This Amendment is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(c)          No
Strict Construction. The language used in this Amendment will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(d)          Counterparts.
This Amendment may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature delivered by fax or e-mail/.pdf transmission shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not a facsimile signature, and deliver by such means
shall be due deliver hereof.

 

(e)          Headings.
The headings of this Amendment are for convenience of reference and shall not form part of, or affect the interpretation of, this
Amendment.

  

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the Holder and the Borrower have caused their respective signature pages to this Amendment to be duly executed as of the date
first written above.  

	 	 	 
	 	BORROWER:
	 	 
	 	EFACTOR GROUP CORP.
	 	 	 
	 	By:	
         

	 	 	Name:	 
	 	 	Title:  	 

	 	 	 
	 	HOLDER:
	 	 
	 	MAGNA EQUITIES I, LLC
	 	 	 
	 	By:	
          

	 	 	Name:	 
	 	 	Title:  	 

 

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EXHIBIT A

 

Convertible Promissory
Note 

 

    	 

    	 

    

 

[EXHIBIT B

 

Form of Warrant
]AMENDMENT TO THE

CONVERTIBLE PROMISSORY NOTE

 

This AMENDMENT TO
THE CONVERTIBLE PROMISSORY NOTE (the “Amendment”), dated as of ____, 2015, is made by and between EFACTOR
GROUP CORP., a Nevada corporation (the “Borrower”), and MAGNA EQUITIES II, LLC, a New York limited liability
company (the “Holder”).

 

A.           On
_____, 2015, the Borrower issued to the Holder that certain Convertible Promissory Note (the “Note”) in the
principal amount of $_____, a copy of which is attached hereto as Exhibit A; and

 

B.           The
Borrower and Holder desire to enter into this Amendment to amend certain terms of the Note.

 

NOW THEREFORE,
in consideration of the foregoing mutual premises and the covenants and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt, and legal adequacy of which is hereby acknowledged, the Borrower and the Holder, intending
to be legally bound, and pursuant to Section 4.3 of the Note, hereby agree to amend the Note as follows:

 

1.            DEFINED
TERMS. All capitalized terms used but not defined in this Amendment shall have the meanings ascribed to them in the Note.

 

2.            AMENDMENT.
The Note is hereby amended as follows:

 

(a)          The
following sentence is hereby added to the end of Section 1.1 of the Note: 

 

“Notwithstanding
anything contained in the paragraphs above, in the event the Borrower consummates a registered primary offering of its securities
(a “Primary Offering”) prior to the repayment or conversion of this Note, the Holder shall have the right, in its discretion,
to (x) demand repayment in full of 40% of the outstanding principal and interest under this Note as of the date of the Primary
Offering (the “Cash Portion”), which repayment shall be made in an amount equal to 125% of the Cash Portion and (y)
convert the remaining 60% of the outstanding principal and interest under this Note into the securities offered in the Primary
Closing, at the closing of such Primary Offering, at a conversion price equal to a 25% discount to the offering price to investors
in the Primary Offering (the “Primary Offering Conversion”). The Borrower shall provide the Holder no less than ten
(10) business days’ notice of the anticipated closing of a Primary Offering and an opportunity to exercise its repayment
and conversion rights in connection therewith. Holder may, by notice given to Borrower within five (5) business days after Borrower’s
delivery of the notice of the anticipated closing of the Primary Offering, elect to exercise its repayment and conversion rights
in connection therewith. Upon Borrower’s satisfaction of the payments and conversions set forth in this paragraph, Holder
agrees that this Note shall no longer be in effect and Borrower shall have no further obligations to Holder under this Note.”

 

    	1

    	 

    

 

(b)          A
new Section 1.10 is added to the Note as follows:

 

“Lock-Up and True-Up.

 

(a)          Notwithstanding
anything contained in this Note to the contrary, except for a Primary Offering Conversion, the Holder hereby agrees (i) not to
convert this Note in whole or in part into shares of Common Stock and (ii) not to sell any shares of Common Stock, in each case
from the date hereof until the earlier of the date that is fifteen (15) days following (x) a Primary Offering and (y) the date
that the Common Stock is listed on a U.S. national securities exchange; provided, however, that the Holder shall not be subject
to any further restrictions hereunder in the event that (A) the Primary Offering has not been consummated by October 31, 2015 or
(B) the Trading Price is below $2.00.

 

(b)          If
on the sixtieth (60th) day after the date of the Primary Offering (the “Make Whole Date”) the Market Price
(as defined below) is less than the offering price of the Common Stock issued in the Primary Offering (the “Offering Price”),
then the Holder shall be entitled to receive the number of shares of Common Stock equal in value to (x) (i) the difference between
the Market Price and the Offering Price multiplied by (ii) the original number of shares of Common Stock issuable upon conversion
of the Note, divided by (y) the Market Price (the “Make Whole Shares”). The Make Whole Shares will be “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities Act of 1933, as amended (the “Act”), and
may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or
(ii) the Company or its transfer agent shall have been furnished with an opinion of counsel to the effect that the shares to be
sold or transferred may be sold or transferred pursuant to an exemption from such registration. As used in this Section 1.10(b),
“Market Price” shall mean the volume weighted average Trading Price of the Common Stock for the ten (10) trading days
immediately prior to the Make Whole Date; provided, however, that in no circumstance shall the “Market Price” be lower
than $1.50 for purposes of this Section 1.10(b).”

 

3.            REGISTRATION
RIGHTS. On or prior to the 45th calendar day following the closing of a Public
Offering, the Borrower shall file a registration statement on Form S-1 (or Form S-3 if the Borrower is eligible) with the Securities
and Exchange Commission covering the resale of the shares of Common Stock issued or issuable upon conversion of the Note. 

 

4.            TERMINATION.
This Amendment may be terminated upon mutual written consent of both parties. Either party may
terminate this Amendment by giving written notice to the other party after the occurrence of one of the following events:

 

(a)          any
material breach of this Amendment by the other party that is not capable of being cured;

 

(b)          any
breach of this Amendment by the other party that, if capable of being cured, is not cured within five (5) days after written notice
of such breach is received by the breaching party;

 

(c)          the
Primary Offering has not been consummated by October 31, 2015; or

 

(d)          the
Trading Price is below $2.00.

 

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5.            miscellanous.

 

(a)         No
Further Amendment. Except for the amendments to the Note set forth and referred to in this Amendment, the Note shall remain
unchanged and in full force and effect.

 

(b)         No
Third Party Beneficiaries. This Amendment is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(c)         No
Strict Construction. The language used in this Amendment will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(d)         Counterparts.
This Amendment may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature delivered by fax or e-mail/.pdf transmission shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not a facsimile signature, and deliver by such means
shall be due deliver hereof.

 

(e)         Headings.
The headings of this Amendment are for convenience of reference and shall not form part of, or affect the interpretation of, this
Amendment.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the Holder and the Borrower have caused their respective signature pages to this Amendment to be duly executed as of the date
first written above.

	 	 	 
	 	BORROWER:
	 	 	 
	 	EFACTOR GROUP CORP.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

	 	 	 
	 	HOLDER:
	 	 	 
	 	MAGNA EQUITIES II, LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

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EXHIBIT A

 

Convertible Promissory
Note

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