Document:

Staffing
360 Solutions, Inc. 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is made and entered into as of February 15, 2013 by and between Staffing 360 Solutions, Inc.,
a Nevada corporation (“S360” or the “Company”), and Alfonso J. Cervantes (“CERVANTES”).

 

		1)	Engagement and Responsibilities

 

a)Upon the terms
and subject to the conditions set forth in this Agreement, the Company hereby employs CERVANTES as President of the Company. CERVANTES
hereby accepts such employment.

 

b)Cervantes’
duties and responsibilities shall be those incident to the positions described in Section 1(a) as set forth in the Bylaws of the
Company and those which are normally and customarily vested in such offices of a corporation. In addition, Cervantes’ duties
shall include those duties and services for the Company and its affiliates as the Board shall, in its sole and absolute discretion,
from time to time reasonably direct which are not inconsistent with Cervantes’ position described in Section 1(a).

 

c)CERVANTES agrees
to devote, on a non-exclusive basis, the necessary time, energy and efforts to the business of the Company and will use his best
efforts and abilities faithfully and diligently to promote the Company’s business interests. It is understood between the
Company and CERVANTES that he will devote no less than 20 hours per week in the execution of his duties. For as long as CERVANTES
is employed by the Company, CERVANTES shall not, directly or indirectly, either as an employee, employer, consultant, agent, investor,
principal, partner, stockholder (except as the holder of less than 1% of the issued and outstanding stock of a publicly held corporation),
corporate officer or director, or in any other individual or representative capacity, engage or participate in any business that
is in competition in any manner whatsoever with the business of the Company, as such businesses are now or hereafter conducted,
or any business which the Company contemplates conducting or intends to conduct.

 

		2)	Definitions

 

“Board”
shall mean the Board of Directors of the Company.

 

“Disability,”
with respect to CERVANTES, shall mean that, for physical or mental reasons, CERVANTES is unable to perform the essential functions
of Cervantes’ duties under this Agreement for 30 consecutive days, or 60 days during any one six month period. CERVANTES
agrees to submit to a reasonable number of examinations by a medical doctor advising the Company as to whether CERVANTES shall
have suffered a disability and CERVANTES hereby authorizes the disclosure and release to the Company and its agents and representatives
all supporting medical records. If CERVANTES is not legally competent, Cervantes’ legal guardian or duly authorized attorney-in-fact
will act in Cervantes’ stead for the purposes of submitting CERVANTES to the examinations, and providing the authorization
of disclosure.

 

 

“Effective
Date” shall mean on completion of the initial acquisition of a temporary staffing company by S360 and contemporaneous
financing.

 

    	 

    	 

    
 

“For Cause”
shall mean, in the context of a basis for termination of Cervantes’ employment with the Company, that:

 

a)CERVANTES breaches
any obligation, duty or agreement under this Agreement, which breach is not cured or corrected within 15 days of written notice
thereof from the Company (except for breaches of Sections 1(c), 6 or 7 of this Agreement, which cannot be cured and for which the
Company need not give any opportunity to cure); or

 

b)CERVANTES is grossly negligent
in the performance of services to the Company, or commits any act of personal dishonesty, fraud, embezzlement, breach of fiduciary
duty or trust against the Company; or

 

c)CERVANTES is
indicted for, or convicted of, or pleads guilty or nolo contendere with respect to, theft, fraud, a crime involving moral turpitude,
or a felony under federal or applicable state law; or

 

d)CERVANTES commits
continued and repeated substantive violations of specific written directions of the Board, which directions are consistent with
this Agreement and Cervantes’ position as an executive officer, or continued and repeated substantive failure to perform
duties assigned by or pursuant to this Agreement; or

 

e)CERVANTES continues
to neglect his duties after receipt of notice thereof from the Company (and the Company need give such notice only once).

 

“Person”
shall mean an individual or a partnership, corporation, trust, association, Limited Liability Company, governmental authority or
other entity.

 

“Portfolio
Company” shall mean any person which has engaged the Company for the provision of services.

 

“Term”
shall mean the period commencing on the Effective Date and ending at the close of business on the business day immediately preceding
the eighteenth month anniversary of the Effective Date.

 

		3)	Compensation and Benefits

 

For as long as CERVANTES shall be employed
by the Company, CERVANTES shall receive the compensation and benefits set forth in this Section 3.

 

 

(a)Salary.
Compensation will commence at an annualized salary of $120,000 beginning upon the Effective Date. The base salary shall be payable
in two $5,000 installments on the 15th and first day of each month.

 

(b)Expense Reimbursement.
CERVANTES shall be entitled to reimbursement from the Company for the reasonable out-of-pocket costs and expenses which CERVANTES
incurs in connection with the performance of Cervantes’ duties and obligations under this Agreement in a manner consistent
with the Company’s practices and policies therefore.

 

(c)Vacation.
CERVANTES shall be entitled to three weeks paid vacation per year (based on the Effective Date).

 

    	 

    	 

    
 

(d)Disability.
In the event of any Disability CERVANTES shall receive the compensation and benefits specified herein for 30 days. Such compensation
and benefits shall be received at the end of the disability.

 

(e)Withholding.
At Cervantes’ election, the Company may deduct from any compensation payable to CERVANTES (including payments made pursuant
to Section 5 of this Agreement in connection with or following termination of employment) amounts it believes are required to be
withheld under federal and state law, including applicable federal, state and/or local income tax withholding, old-age and survivors’
and other social security payments, state disability and other insurance premiums and payments.

 

(f)Key Man Insurance.
The Company may, at its own expense, purchase a key man life insurance policy at an amount to be determined naming the Company
as a beneficiary. At the time that CERVANTES is no longer employed by the Company, CERVANTES will have the right to retain the
policy. It is expressly understood between the Company and CERVANTES that the Company will not have any further obligation with
respect to the policy following Cervantes’ employment by the Company.

 

		4)	Term of Employment

 

Cervantes’ employment
pursuant to this Agreement shall commence on the Effective Date, as defined in Section 2 and shall terminate on the earliest to
occur of the following:

 

a) upon the date
set forth in a written notice of termination from CERVANTES to the Company (which date shall be at least four months after the
effective date and at least 30 days after the delivery of that notice); provided, however, that in the event CERVANTES delivers
such notice to the Company, the Company shall have the right to accelerate such termination by written notice thereof to CERVANTES
(and such termination by the Company shall be deemed to be a termination of employment pursuant to this Section 4(a), and not a
termination pursuant to Section 4(d) or 4(e) hereof);

 

b)upon the death
of CERVANTES;

 

c)upon delivery
to CERVANTES of written notice of termination by the Company if CERVANTES shall suffer a Disability;

 

d)upon delivery
to CERVANTES of written notice of termination by the Company For Cause;

 

e)upon delivery
to CERVANTES of written notice of termination by the Company Without Cause; or

 

		5)	Confidentiality.

 

CERVANTES agrees not
to disclose or use at any time (whether during or after Cervantes’ employment with the Company) for Cervantes’ own
benefit or purposes or the benefit or purposes of any other Person any databases, trade secrets, proprietary data, or other confidential
information, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data,
financial methods, plans, or the business and affairs of the Company generally, provided that the foregoing shall not apply
to information which is not unique to the Company or which is generally known to the industry or the public other than as a result
of Cervantes’ employment with the company. CERVANTES agrees that upon termination of his employment with the Company for
any reason, he will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data,
and all copies thereof or therefrom, in any way relating to the business of the Company and/or any Portfolio Company, except that
he may retain personal notes, notebooks, diaries and addresses and phone numbers. CERVANTES further agrees that he will not retain
or use for his account at any time any trade names, trademark or other proprietary business designation used or owned in connection
with the business of the Company.

 

    	 

    	 

    
 

		6)	Miscellaneous

 

a)Notices. 
All notices, requests, demands and other communications (collectively, “Notices”) given pursuant to this Agreement
shall be in writing, and shall be delivered by personal service, courier, facsimile transmission or by United States first class,
registered or certified mail, addressed to the following addresses:

 

If to the Company,
to:

 

Staffing 360 Solutions,
Inc.

Alfonso J. Cervantes,
President

641 Lexington Avenue,
Suite 1526

New York, NY 10022

 

If to CERVANTES, to:

 

Alfonso J. Cervantes

641 Lexington Avenue,
Suite 1526

New York, NY 10022

 

Any Notice, other than a Notice sent by
registered or certified mail, shall be effective when received; a Notice sent by registered or certified mail, postage prepaid
return receipt requested, shall be effective on the earlier of when received or the third day following deposit in the United States
mails. Any party may from time to time change its address for further Notices hereunder by giving notice to the other party in
the manner prescribed in this Section.

 

b)Entire Agreement. 
This Agreement contains the sole and entire agreement and understanding of the parties with respect to the entire subject matter
of this Agreement, and any and all prior discussions, negotiations, commitments and understandings, whether oral or otherwise,
related to the subject matter of this Agreement are hereby merged herein.  Without limiting the foregoing, this Agreement
supersedes those certain term sheets and/or agreements dated prior to date hereof. No representations, oral or otherwise, express
or implied, other than those contained in this Agreement have been relied upon by any party to this Agreement.

 

c)Severability.
In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason,
in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and
effect to the fullest extent permitted by law.

 

d)Governing
Law.  This Agreement has been made and entered into in the State of New York and shall be construed in accordance with
the laws of the State of New York.

 

e)Captions. 
The various captions of this Agreement are for reference only and shall not be considered or referred to in resolving questions
of interpretation of this Agreement.

 

f)Counterparts. 
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

 

    	 

    	 

    
 

g)Attorneys’
Fees.  If any action or proceeding is brought to enforce or interpret any provision of this Agreement, the prevailing
party shall be entitled to recover as an element of its costs, and not its damages, its reasonable attorneys’ fees, costs
and expenses.  The prevailing party is the party who is entitled to recover its costs in the action or proceeding.  A
party not entitled to recover its costs may not recover attorneys’ fees.  No sum for attorneys’ fees shall be
counted in calculating the amount of a judgment for purposes of determining whether a party is entitled to recover its costs or
attorneys’ fees.

 

In Witness Whereof,
the parties have executed this Agreement as of the date first above written.

 

Staffing 360
Solutions, Inc. 

 

By: /s/ Allan Hartley_______________

 

Its: CEO

 

 

_/s/
Alfonso J. Cervantes___________

Alfonso J.
CervantesCHORD ADVISORS, LLC

LETTER OF AGREEMENT

Date: February 14, 2013

 

Section 1. Services to be Rendered.
The purpose of this letter is to set forth the terms and conditions on which Chord Advisors, LLC (“Chord”) agrees to
provide Staffing 360 Solutions, Inc. (the “Company”) comprehensive outsourced accounting solutions. These services
may include, but are not limited to, all items listed in “Addendum A.” The Company represents and warrants that it
will provide on a timely basis any information requested by Chord which is necessary to perform such services and further represents
and warrants that such information shall be accurate.

 

Section 2. Engagement Period. Unless
sooner terminated as provided herein, the term of this agreement (the “Engagement Period”) shall commence on
February 1, 2013 and shall continue for a period of twelve (12) calendar months. Following expiration of the initial Engagement
Period, this agreement shall be automatically renewed for successive Engagement Periods of 12 months each unless either party shall
give the other written notice of its intent not to renew this agreement no later than 30 days prior to the expiration of any Engagement
Period hereunder. The Company represents that it is duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization and is duly qualified as a foreign corporation and in good standing in all jurisdictions in which
the nature of its activities requires such qualification. The Company further represents to Chord: (1) that it has full power and
authority to carry on its business as presently or proposed to be conducted and to enter into and perform its obligations under
this Agreement; (2) that this Agreement has been duly authorized by all necessary corporate actions; and (3) that this Agreement
constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms (except
as such enforcement may be limited by bankruptcy, creditors’ rights laws or general principles of equity).

 

Section 3. Fees. (a) The Company
shall pay to Chord for its services hereunder an advisory fee (the “Advisory Fee”) of $ $6,250.00 per
month for CFO Services and $5,000.00 per month in Controller/Back-Office Services beginning February 14, 2013; provided,
that the amount of such Advisory Fee shall be subject to change by the mutual agreement of the parties at any time after expiration
of the initial twelve (12) month Engagement Period. Advisory Fees shall be payable on or before the 30th day of each calendar month
which occurs during the Engagement Period. In the event that a partial month shall occur during the Engagement Period, then the
amount of the Advisory Fee for such month shall be prorated based upon the number of days in such month that occur during the Engagement
Period. In addition, the Company shall issue $2,500 per month of Common Stock at the closing Fair Value at the end of the month.

 

	Confidential	Page 1

    	 

    	 

    
 

 

 

 

Section 4. Expenses. In addition
to all other fees payable to Chord hereunder, the Company hereby agrees to reimburse Chord for all reasonable out-of-pocket expenses
incurred in connection with the performance of services hereunder. No individual expenses over $100 per month will be expended
without the prior written approval of the Company.

 

Section 5. Indemnification. Each
of the Company and Chord agrees to defend, indemnify and hold the other and its respective affiliates, stockholders, directors
officers, agents, employees, successors and assigns (each an "Indemnified Person") harmless from and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind whatsoever (including, without limitation, reasonable attorneys' fees) which arise from the Company's or Chord's (as the case
may be) breach of its obligations hereunder or any representation or warranty made by it herein. It is further agreed that the
foregoing indemnity shall be in addition to any rights that either party may have at common law or otherwise, including, but not
limited to, any right to contribution.

 

Section 6. Termination of Agreement.
(a) Subject to paragraph (b) below, either party may terminate this Agreement and Chord’s engagement hereunder, with or without
cause, immediately upon written notice given to the other party at any time during the Engagement Period hereunder. In such event,
all compensation accrued to Chord prior to such cancellation, whether in the form of Advisory Fees, reimbursement for expenses
or otherwise, will become due and payable promptly upon such termination and Chord shall be relieved of any and all further obligation
to provide any services hereunder.

(b) Notwithstanding
anything to the contrary herein contained, Sections 4, 5, 6, 7, 8, 9, 10 and 11 shall survive any termination or breach of this
agreement by either party.

 

Section 7. Severability. In case
any provision of this letter agreement shall be invalid, illegal, or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not be affected or impaired thereby.

 

 

Section
8. Consent to Jurisdiction. This agreement shall be governed and construed in accordance with the laws of the State
of New York without regard to conflicts of laws principles. The parties further consent to the exclusive jurisdiction of the State
and Federal courts located within the City, County and State of New York to resolve any dispute arising under this Agreement, and
waive any defense to such jurisdiction based upon inconvenient forum.

 

Section 9. Other Services. If the
Company desires additional services not provided for in this agreement, any such additional services shall be covered by a separate
agreement between the parties hereto.

 

	Confidential	Page 2

    	 

    	 

    

 

 

 

 

Section 10. Entire Agreement. This
letter agreement contains the entire agreement of the Company and Chord, and supersedes any and all prior discussions and agreements,
whether oral or written, with respect to the matters addressed herein.

 

Section 11. Counterparts. This letter
agreement may executed in two or more counterparts, each of which shall be considered an original and all of which, taken together,
shall be considered as one and the same instrument.

 

Please evidence your
acceptance of the provisions of this letter by signing below and returning a copy to Chord Advisors, LLC.

 

Very truly yours,

 

 

_____/s/
David Horin______________________

David Horin

PresidentChord Advisors,
LLC

 

 

ACCEPTED AND AGREED

AS OF THE DATE FIRST ABOVE WRITTEN:

 

 

By:_/s/ Allan Hartley___________________________

Name: Allan Hartley

Title: President

 

 

	Confidential	Page 3

    	 

    	 

    

 

 

 

 

ADDENDUM
“A”

 

 

Chord will provide senior financial leadership
and perform the following functions:

 

		•	Business analysis and planning

		•	System selection and implementation

		•	Financial process improvement

		•	Full service bookkeeping

		•	General ledger accounting

		•	Account reconciliation

		•	Accounts receivable

		•	Accounts payable

		•	Payroll and related tax reporting

		•	Management reporting

		•	Advise on accounting for complex transactions, including those featuring options, warrants derivatives
and other forms of equity enhancements

		•	Document and implement new and existing accounting policies

		•	Respond to SEC Comment Letters

		•	Audit committee support

		•	Drafting documents such as 10-K's, 10-Q's and registration statements

		•	Assistance with earnings releases and deal and non-deal roadshows

 

 

	Confidential	Page 4

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