Document:

AMENDMENT NO.1 TO EMPLOYMENT AGREEMENT

 

This Amendment No.1 (the "Amendment")
dated December 31, 2013, to that certain Employment Agreement (the "Agreement"), dated February 15, 2013, between Staffing
360 Solutions, Inc. (the “Company”) and Alfonso J. Cervantes (“Cervantes”).

 

By mutual agreement of the parties, the Company and Cervantes
hereby agree to amend the Agreement, effective on the date hereof, as follows:

 

1.           Section
1(a) of Engagement and Responsibilities is amended in its entirety as follows:

 

“(a)         Upon
the terms and subject to the conditions set forth in this Agreement, the Company hereby employs Cervantes as President of the Company
and to serve as a Vice Chairman of the Board of Directors. Cervantes hereby accepts such employment. Cervantes shall have such
title or titles as the Board may from time to time determine.”

 

2.           Section
2, Definitions, “Term” is hereby amended in its entirety as follows:

 

“”Term” shall mean the period
commencing on the Effective Date and ending at the close of business on December 31, 2016.”

 

3.           Section
3(a) Salary of the Agreement is amended in its entirety as follows:

 

“(a)        Salary.
The Compensation will commence at an annualized salary of $250,000 beginning upon the closing date of the proposed acquisition
of Initio International Holdings Limited (the “Initio Acquisition”). The base salary shall be payable twice monthly
on the same basis as other executives of the Company. Cervantes’ base salary shall be increased by the increase in the Consumer
Price Index as released by the United States Bureau of Labor Statistics.”

 

4.          The
Agreement is hereby amended to include a new Section 3(f) Performance Bonus as follows:

 

“(f) Performance Bonus.
Cervantes shall be entitled to certain performance based compensation in the event that the Company achieves certain milestones
as follows:

 

	 	(i)	In the event the Company closes the Initio Acquisition, then Cervantes shall be entitled to a one-time issuance of non-qualified stock options to purchase up to 500,000 shares of the Company’s common stock, with an exercise price of $2.00 per share, exercisable for a period of five (5) years;

 

	 	(ii)	
        In the event the Company closes one or more acquisitions of
        a target company (which shall exclude the Initio Acquisition) whereby such acquisition or acquisitions, as the case may be, is
        valued at an aggregate of $10 million or more, then Cervantes shall also be entitled to a one-time issuance of non-qualified stock
        options to purchase up to 200,000 shares of the Company’s common stock, with an exercise price of $2.00 per share for a period
        of five (5) years;

         

	 	(iii)	In the event the Company closes the proposed acquisition of Initio International Holdings Limited, then Cervantes shall be entitled to a one-time cash bonus of $100,000;

 

	 	(iv)	
        In addition, in the event the Company’s revenue
based on the Company’s filing of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K during the term of this
Agreement for the four quarters proceeding such filing is in excess of $150 million, then Cervantes shall be entitled to a one-time
cash bonus of $250,000 within 30 days of such filing;

 

    	 

    	 

    

 

	 	(v)	
        In addition, in the event the Company’s revenue based
        on the Company’s filing of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K during the term of this Agreement
        for the four quarters proceeding such filing is in excess of $200 million, then Cervantes shall be entitled to a one-time cash
        bonus of $250,000 within 30 days of such filing; and

         

	 	(vi)	In addition, in the event the Company’s annualized revenue based on the Company’s filing of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K during the term of this Agreement for the four quarters proceeding such filing is in excess of $250 million, then Cervantes shall be entitled to a one-time cash bonus of $250,000 within 30 days of such filing.

  

5.         The
Agreement is hereby amended to include a new Section 4(f) of the Term of Employment as follows:

 

“(f)         December
31, 2016.” 

 

6. No Other Amendments; Governing
Law; Counterparts. Except as specifically set forth in this Amendment, there are no other amendments to the Agreement and the Agreement
shall remain unmodified and in full force and effect. This Amendment shall be governed by and construed in accordance with the
internal laws of the State of New York. This Amendment may be executed in one or more counterparts. In the event that any signature
is delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature
page were an original thereof.

 

IN WITNESS WHEREOF, the parties have executed
this Amendment to the Agreement as of the sate first set forth above.

 

	THE COMPANY:
	Staffing 360 Solutions, Inc.
	 
	By:	 
	Name:
	Title

  

	EMPLOYEE:
	 
	 
	Alfonso J. CervantesStaffing 360 Solutions, Inc.

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is made and entered into as of December 31, 2013 by and between Staffing 360 Solutions, Inc.,
a Nevada corporation (“S360” or the “Company”), and Allan Hartley (“HARTLEY”).

 

	1)	Engagement and Responsibilities

 

a) Upon the terms and
subject to the conditions set forth in this Agreement, the Company hereby employs HARTLEY as the co-Chief Executive Officer of
the Company. HARTLEY hereby accepts such employment. HARTLEY shall have such title or titles as the Board of Directors may from
time to time determine.

 

b) HARTLEY’s
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, HARTLEY’s 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 HARTLEY’s position described in Section 1(a).

 

c) HARTLEY agrees to
devote, on an 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 HARTLEY that he will devote no less than 40 hours per week in the execution of his duties. For as long as HARTLEY is employed
by the Company, HARTLEY 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 HARTLEY, shall mean that, for physical or mental reasons, HARTLEY is unable to perform the essential functions
of HARTLEY’S duties under this Agreement for 30 consecutive days, or 60 days during any one six month period. HARTLEY agrees
to submit to a reasonable number of examinations by a medical doctor advising the Company as to whether HARTLEY shall have suffered
a disability and HARTLEY hereby authorizes the disclosure and release to the Company and its agents and representatives all supporting
medical records. If HARTLEY is not legally competent, HARTLEY’S legal guardian or duly authorized attorney-in-fact will act
in HARTLEY’S stead for the purposes of submitting HARTLEY to the examinations, and providing the authorization of disclosure.

  

“Effective
Date” shall mean on completion of the acquisition of Initio International Holdings Limited by S360.

 

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

 

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

 

e) HARTLEY 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 December 31, 2013.

 

	3)	Compensation and Benefits

 

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

 

 

(a) Salary.
The Compensation will commence at an annualized salary of $250,000 beginning upon the Effective Date. The base salary shall be
payable twice monthly on the same basis as other executives of the Company. HARTLEY’s base salary shall be increased by the
increase in the Consumer Price Index as released by the United States Bureau of Labor Statistics.

 

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

 

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

 

(d) Disability.
In the event of any Disability HARTLEY 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 HARTLEY’s election, the Company may deduct from any compensation payable to HARTLEY (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 HARTLEY is no longer employed by the Company, HARTLEY will have the right to retain the policy. It
is expressly understood between the Company and HARTLEY that the Company will not have any further obligation with respect to the
policy following HARTLEY’s employment by the Company.

 

    	 

    	 

    

 

(g) Performance Bonus. HARTLEY
shall be entitled to certain performance based compensation in the event that the Company achieves certain milestones as follows:

 

	 	(i)	In the event the Company closes the proposed acquisition of Initio International Holdings Limited, then HARTLEY shall be entitled to a one-time issuance of non-qualified stock options purchase up to 250,000 shares of the Company’s common stock, with an exercise price of $2.00 per share for a period of five (5) years;

 

	 	(ii)	
        In the event the Company closes one or more acquisitions of
        a target company (which shall exclude the acquisition of International Holdings Limited) whereby such acquisition or acquisitions,
        as the case may be, is valued at an aggregate of $10 million or more, then HARTLEY shall also be entitled to a one-time issuance
        of non-qualified stock options to purchase up to 200,000 shares of the Company’s common stock, with an exercise price of
        $2.00 per share for a period of five (5) years;

         

	 	(iii)	In the event the Company closes the proposed acquisition of Initio International Holdings Limited, then HARTLEY shall be entitled to a one-time cash bonus of $25,000;

 

	 	(iv)	
        In addition, in the event the Company’s revenue based
        on the Company’s filing of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K during the term of this Agreement
        for the four quarters proceeding such filing is in excess of $150 million, then HARTLEY shall be entitled to a one-time cash bonus
        of $50,000 within 30 days of such filing;

         

	 	(v)	
        In addition, in the event the Company’s revenue based
        on the Company’s filing of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K during the term of this Agreement
        for the four quarters proceeding such filing is in excess of $200 million, then HARTLEY shall be entitled to a one-time cash bonus
        of $50,000 within 30 days of such filing; and

         

	 	(vi)	In addition, in the event the Company’s annualized revenue based on the Company’s filing of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K during the term of this Agreement for the four quarters proceeding such filing is in excess of $250 million, then HARTLEY shall be entitled to a one-time cash bonus of $50,000 within 30 days of such filing.

   

	4)	Term of Employment

 

HARTLEY’S 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 HARTLEY 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 HARTLEY delivers
such notice to the Company, the Company shall have the right to accelerate such termination by written notice thereof to HARTLEY
(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
HARTLEY;

 

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

 

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

 

    	 

    	 

    

 

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

 

f) December 31, 2016.

 

	5)	Confidentiality.

 

HARTLEY agrees not
to disclose or use at any time (whether during or after HARTLEY’s employment with the Company) for HARTLEY’s 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 HARTLEY’s employment with the company. HARTLEY 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. HARTLEY 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 HARTLEY, to:

 

Allan Hartley

71 Alba Road

Wellesley, MA 02481

 

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:	 
	 	 
	 	Its: President
	 	 
	 	 
	 	Allan Hartley

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