Document:

Exhibit
10.4

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is made and entered into as of September 24, 2009 (the “Effective
Date”), by and between Echo Global Logistics,
Inc., a Delaware corporation (the “Company”), and Douglas R. Waggoner (“Waggoner”).

 

1.                                       Employment;
Position and Duties.  The Company
agrees to employ Waggoner, and Waggoner agrees to be employed by the Company,
upon the terms and conditions of this Agreement.  Waggoner shall be employed by the Company as
the Company’s Chief Executive Officer reporting to the Board of Directors of
the Company (the “Board”).  In this
capacity, Waggoner agrees to devote his full time, energy and skill to the
faithful performance of his duties herein, and shall perform the duties and
carry out the responsibilities assigned to him to the best of his ability and
in a diligent, businesslike and efficient manner.  Waggoner’s duties shall include all those
duties customarily performed by the Chief Executive Officer, as well as those
additional duties commensurate with his position as Chief Executive Officer
that may be reasonably assigned by the Board. 
Waggoner shall comply with any policies and procedures established for
Company employees, including, without limitation, those policies and procedures
contained in the Company’s employee handbook previously delivered to Waggoner.

 

2.                                       Board Meetings.  Waggoner shall be entitled to attend all
meetings of the Board; provided, that the Board may exclude Waggoner from all
or any portion of a meeting if the Board believes in good faith that such
exclusion is reasonably necessary for the effective conduct of business by the
Board or management of the Company or to preserve the confidentiality or
privileged nature of certain information.

 

3.                                       Term of Employment.  This Agreement shall become effective upon
the Effective Date.  The term of this
Agreement shall commence on the Effective Date and shall expire on January 1,
2012, unless earlier terminated by either party, in accordance with the terms
of this Agreement and/or the following sentence.  This Agreement may be terminated by Waggoner
or by the Company through a majority vote of the Board, at any time, with or
without Cause (as defined below).  Upon
the termination of Waggoner’s employment with the Company for any reason,
neither party shall have any further obligation or liability under this
Agreement to the other party, except as set forth in Sections 6, 8, 9, 10, 11, 12
and 13 of this Agreement.

 

4.                                       Compensation.  Waggoner shall be compensated by the Company
for his services as follows:

 

(a)                                  Base Salary.  Waggoner shall be paid an initial base salary
of $350,000 per year in accordance with the Company’s normal payroll
procedures.  Increases in Waggoner’s base
salary, if any, shall be as approved by the Board or its compensation
committee.

 

(b)                                 Benefits.  During the term of this Agreement, Waggoner
shall have the right, on the same basis as other members of senior management
of the Company, to participate in and to receive benefits under the Company’s
executive and employee benefit plans, insurance programs and/or indemnification
agreements, as may be in effect from time to time, subject to any applicable
waiting periods and other restrictions. 
In addition, Waggoner shall be entitled to the benefits

 

 

afforded to other members of senior management under
the Company’s vacation, holiday and business expense reimbursement policies.

 

(c)                                  Performance
Bonus.  In addition to the base salary,
Waggoner shall be eligible to receive an annual performance bonus (“Performance
Bonus”) to be approved from time to time by the Board or its compensation
committee.  The Performance Bonus shall
be paid within the two-and-one-half month period ending on the 15th day of the
third month following the end of the Company’s fiscal year.

 

(d)                                 Expenses.  In addition to reimbursement for business
expenses incurred by Waggoner in the normal and ordinary course of his
employment by the Company pursuant to the Company’s standard business expense
reimbursement policies and procedures, the Company shall reimburse Waggoner for
the full amount of his medical insurance costs should he elect to participate
in the Company’s medical insurance program(s).

 

(e)                                  Other Insurance
Costs. The Company also agrees to pay the premiums in an amount not to exceed
$17,500 annually for a life insurance policy currently in effect which Waggoner
purchased prior to the commencement of employment. Waggoner shall tender to the
Company invoices for premiums and the Company shall make timely payments as
required. Upon the termination of his employment with the Company, the
responsibility for payment of premiums shall revert to Waggoner. Waggoner
reserves the right at all times to designate the beneficiary of the policy.

 

5.                                       Stock Options.  On November 1, 2006, Waggoner was granted
options (the “Options”) to purchase an aggregate of 900,000 shares of common stock
(the “Shares”) of the Company at a purchase price of $1.84 per Share.  The Shares acquired upon exercise of the
Options shall be subject to a right of first refusal that shall terminate upon
the completion of the Company’s Initial Public Offering (as defined
below).  In the event that Waggoner’s
employment with the Company is terminated, Waggoner shall have ninety (90) days
following such termination to exercise any vested Options; provided, however,
that in the case of termination due to death or disability, such period shall
be six (6) months.  Notwithstanding the
foregoing, the Options shall not be exercisable after the expiration of their
terms.  The Options vest as follows: 100,000
Shares vested on November 16, 2006; an additional 200,000 Shares vested on January
1, 2008; an additional 200,000 Shares vested on January 1, 2009; an additional 200,000
Shares shall vest on January 1, 2010; and an additional 200,000 Shares shall
vest on January 1, 2011.   Except as
provided herein, such Options shall be subject to the terms of the Company’s
2005 Option Plan and the option agreement provided to Waggoner pursuant to such
plan. The number of Shares and option price per Share set forth in this Section
5 shall be appropriately adjusted to reflect any Share splits or Share
dividends after the Effective Date.  In
addition, upon the completion of an Initial Public Offering, the Options shall
be exercisable for shares of the class of common equity securities sold in such
offering.

 

For purposes of this
Agreement, “Initial Public Offering” means any initial public offering by the
Company of its common equity securities to the public pursuant to an effective
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), or any comparable statement under any similar federal law then in force,
that results in no less than $50,000,000 of net proceeds to the Company.

 

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The vesting of the Options
shall accelerate, in the proportion specified herein, in the event that, during
the term of this Agreement, there occurs the sale to any third party of at
least fifty percent (50%) of the total then-outstanding Shares of the Company
for a cash or publicly traded stock purchase price equal to at least $8.00 (eight
dollars) per Share or the Company consummates an Initial Public Offering.  If either of these acceleration events occur prior
to November 1, 2008, then fifty percent (50%) of the unvested Options shall
accelerate; if either of these acceleration events occur after October 31, 2008,
then seventy-five percent (75%) of the unvested Options shall accelerate.

 

6.                                       Benefits Upon
Termination.

 

(a)                                  Termination for
Cause or Termination for Other than Good Reason.  In the event of the termination of Waggoner’s
employment by the Company for Cause (as defined below), the termination of Waggoner’s
employment by reason of his death or disability, or the termination of Waggoner’s
employment by Waggoner for any reason other than without Cause or for Good
Reason (as defined below), Waggoner shall be entitled to no further
compensation or benefits from the Company other than those earned under
Sections 4(a), 4(b), and 4(c) through the date of termination, or in the case
of any Options, vested through the date of termination.  All unvested Options shall thereupon
terminate immediately, and all vested Options shall be subject to the terms and
conditions of the applicable award.

 

For purposes of this
Agreement, a termination for “Cause” occurs if Waggoner’s employment is
terminated by the Company for any of the following reasons:

 

(i)                                     his material
breach of any provision of this Agreement, provided that in those instances in
which his material breach is capable of being cured, Waggoner has failed to
cure within a thirty (30) day period after notice from the Company,

 

(ii)                                  theft,
dishonesty, or falsification of any employment or Company records by Waggoner;

 

(iii)                               the reasonable determination
by the Board that Waggoner has committed an act or acts constituting a felony
or any act involving moral turpitude; or

 

(iv)                              the reasonable determination
by the Board that Waggoner has engaged in willful misconduct or gross
negligence that has had a material adverse effect on the Company’s reputation
or business.

 

For purposes of this
Agreement, a termination for “Good Reason” occurs if Waggoner terminates his
employment for any of the following reasons and within two years of the initial
existence of such reason:

 

(i)                                     the Company
materially reduces Waggoner’s duties or responsibilities below what is
customary for a Chief Executive Officer or President of a business that is
similar to the Company without Waggoner’s consent, including a requirement that
Waggoner report to a corporate officer or employee instead of reporting
directly to the Board;

 

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(ii)                                 the Company
requires Waggoner to relocate his office more than 100 miles from the current
office of the Company without his consent; or

 

(iii)                             the Company has
materially breached the terms of this Agreement.

 

If one or more of the above
conditions exist, Waggoner must provide notice to the Company within a period
not to exceed ninety (90) days of the initial existence of the condition.  Upon such notice, the Company shall have a
period of thirty (30) days during which it may remedy the condition.

 

(b)                                 Termination
Without Cause or Termination for Good Reason.  If Waggoner’s employment is terminated by the
Company for any reason other than for Cause or by reason of his death or
disability, or if Waggoner’s employment is terminated by Waggoner for Good
Reason, Waggoner shall be entitled to:

 

(i)                                     receive
continued payment of his base salary, less applicable withholding, in
accordance with the Company’s normal payroll procedures, for twenty-four (24)
months following the termination of Waggoner’s employment; and

 

(ii)                                 additional vesting of 150,000
otherwise unvested Options; and

 

(iii)                             receive continued Company provided
insurance benefits with the costs borne by the Company for Waggoner and his
dependents for a period ending on the earlier of:  (A) twenty-four (24) months following the
termination or (B) the date Waggoner has secured comparable benefits through another
organization’s benefits program.  To the
extent these payments are subject to Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), then reimbursement for an eligible expense
must be made on or before the last day of Waggoner’s taxable year following the
taxable year in which the expense was incurred.

 

Notwithstanding anything
to the contrary herein, no payments shall be due under this Section 6(b) unless
and until Waggoner shall have executed a general release and waiver of claims
against the Company, consistent with Section 10 below (the “Release”), in a
form reasonably satisfactory to the Company, and the execution of such Release
shall be a condition to Waggoner’s rights under this Section 6(b).  Such Release shall be delivered to Waggoner within
ten (10) days of Waggoner’s termination of employment, and no payments pursuant
to Section 6(b) shall be made prior to the date that both (i) Waggoner has
delivered an original, signed Release to the Company and (ii) the revocability period
(if any) has elapsed; provided however, that any payments that would otherwise
have been made prior to such date but for the fact that Waggoner had not yet
delivered an original, signed Release (or the revocability period had not yet
elapsed) shall be made as soon as administratively practicable but not later
than the seventy-fourth (74th) day following Waggoner’s termination of
employment.  Waggoner
must deliver an original, signed Release to the Company within ten (10) business
days (or such longer period if required by law) after receipt of the same from
the Company as a condition to receiving any amount or benefits described in Section
6(b).

 

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7.                                       Section 409A of
the Code.

 

(a)                                  Except to the
extent earlier payment is permitted by Section 409A of the Code and the
regulations promulgated thereunder, in the event that any amount due to
Waggoner hereunder after the termination of his employment shall be considered
to be deferred compensation pursuant to Section 409A of the Code, and it is
determined that Waggoner is a “specified employee” for purposes of Section 409A(a)(2)(B)(i)
of the Code, then the Company shall delay the payment of such amount for six (6)
months after the termination of his employment (or until his death, if earlier)
or for such other amount of time as may be necessary to comply with the
requirements of Section 409A(a)(2)(B)(i) of the Code.

 

(b)                                 This Agreement
is intended to comply and shall be administered in a manner that is intended to
comply with Section 409A of the Code and the interpretative guidance
thereunder, including the exceptions for short-term deferrals, separation pay
arrangements, reimbursements, and in-kind distributions.  This Agreement shall be construed and
interpreted in accordance with such intent. 
In addition, any termination of employment under this Agreement shall
mean a separation from service as defined in Section 409A of the Code and
Treas. Reg. §1.409A-1(h)(1)(ii) (or other similar or successor provision).  The parties agree to make such other
amendments to this Agreement as are necessary to comply with the requirements
of Section 409A of the Code.

 

8.                                       Change of
Control.  If, during the three (3) months
prior to the public announcement of a proposed Change of Control, or at any
time within twelve (12) months following a Change of Control, Waggoner’s
employment is terminated by the Company for any reason other than Cause, or
terminated by Waggoner for Good Reason, Waggoner shall be entitled to, in
addition to the compensation and benefits outlined under Section 6(b) above,
immediate vesting of the next full year’s Options as if Waggoner’s employment
had continued for a period of twelve months following the termination (i.e., accelerated vesting of all options granted).  For purposes of this Agreement, a “Change of
Control” shall have the same meaning as the term “Change of Control” set forth
in the Company’s 2008 Stock Incentive Plan, as amended.

 

9.                                       Employee
Inventions and Proprietary Rights Assignment Agreement.  Waggoner agrees to abide by the terms and
conditions of the Company’s standard Employee Inventions and Proprietary Rights
Assignment Agreement as executed by Waggoner and attached hereto as Exhibit A.

 

10.                                 Covenants Not
to Compete or Solicit. 
During Waggoner’s employment and for a period of twenty-four (24) months
following the termination of Waggoner’s employment for any reason, so long as Waggoner
is being paid severance in accordance with the terms of Section 6(b) above, Waggoner
shall not, anywhere in the Geographic Area (as defined below), other than on
behalf of the Company or with the prior written consent of the Company,
directly or indirectly:

 

(a)                                  perform
services for (whether as an employee, agent, consultant, advisor, independent
contractor, proprietor, partner, officer, director or otherwise), have any
ownership interest in (except for passive ownership of one percent (1%) or less
of any entity whose securities have been registered under the Securities Act or
Section 12 of the Securities Exchange Act of 1934, as amended), or participate
in the financing, operation, management or control of, any firm, partnership,
corporation, entity or business that engages or participates in a “competing
business purpose” (as defined below);

 

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(b)                                 induce or
attempt to induce any customer, potential customer, supplier, licensee,
licensor or business relation of the Company to cease doing business with the Company,
or in any way interfere with the relationship between any customer, potential
customer, supplier, licensee, licensor or business relation of the Company or
solicit the business of any customer or potential customer of the Company,
whether or not Waggoner had personal contact with such entity; and

 

(c)                                  solicit,
encourage, hire or take any other action which is intended to induce or
encourage, or has the effect of inducing or encouraging, any employee or
independent contractor of the Company or any subsidiary of the Company to
terminate his employment or relationship with the Company or any subsidiary of
the Company, other than in the discharge of his duties as an officer of the
Company.

 

In the event that Waggoner
receives a waiver of the “non-competition” provision from the Company, which the
Company may or may not grant in its sole discretion, Waggoner agrees that he
will waive any further claim for severance and insurance benefits beginning on
the date of his employment with a new organization, provided that such new
employment is comparable to Waggoner’s employment with the Company in terms of
salary and benefits.

 

For the purpose of this
Agreement, the term “competing business purpose” shall mean the sale or
provision of any transportation or logistics-related services that are
competitive with in any manner the services sold or offered by the Company
during the term of this Agreement.  The
term “Geographic Area” shall mean the United States of America.

 

The covenants contained in
this Section 10 shall be construed as a series of separate covenants, one for
each county, city, state, or any similar subdivision in any Geographic
Area.  Except for geographic coverage,
each such separate covenant shall be deemed identical in terms to the covenant
contained in the preceding subsections. 
If, in any judicial proceeding, a court refuses to enforce any of such
separate covenants (or any part thereof), then such unenforceable covenant (or
such part) shall be eliminated from this Agreement to the extent necessary to
permit the remaining separate covenants (or portions thereof) to be
enforced.  In the event that the
provisions of this Section 10 are deemed to exceed the time, geographic or
scope limitations permitted by applicable law, then such provisions shall be
reformed to the maximum time, geographic or scope limitations, as the case may
be, permitted by applicable laws.

 

11.                                 Equitable
Remedies.  Waggoner
acknowledges and agrees that the agreements and covenants set forth in Sections 9 and 10 are reasonable and
necessary for the protection of the Company’s business interests, that
irreparable injury will result to the Company if Waggoner breaches any of the
terms of such covenants, and that in the event of Waggoner’s actual or
threatened breach of any such covenants, the Company will have no adequate
remedy at law.  Waggoner accordingly
agrees that, in the event of any actual or threatened breach by Waggoner of any
of such covenants, the Company will be entitled to seek immediate injunctive
and other equitable relief, without posting any bond and without the necessity
of showing actual monetary damages. 
Nothing in this Section 11
will be construed as prohibiting the Company from pursuing any other remedies
available to it for such breach or threatened breach, including the recovery of
any damages that it is able to prove.

 

6

 

12.                                 Dispute
Resolution.   In the
event of any dispute or claim relating to or arising out of this Agreement
(including, but not limited to, any claims of breach of contract, wrongful
termination or age, sex, race or other discrimination), Waggoner and the
Company agree that all such disputes shall be fully and finally resolved by
binding arbitration conducted by the American Arbitration Association in
Chicago, Illinois in accordance with its National Employment Dispute Resolution
rules, as those rules are currently in effect (and not as they may be modified
in the future).  Waggoner acknowledges
that by accepting this arbitration provision he is waiving any right to a jury
trial in the event of such dispute. Notwithstanding the foregoing, this
arbitration provision shall not apply to any disputes or claims relating to or
arising out of the misuse or misappropriation of trade secrets or proprietary
information.

 

13.                                 Attorneys’ Fees.  Waggoner shall be entitled to recover from
the Company his reasonable attorneys’ fees and costs if he prevails in an
action to enforce any right arising out of this Agreement.  Such payment will be made as soon as
practicable but no later than the fifteenth (15th) day of the third month of the year following the
year in which the action to enforce his rights is finalized.

 

14.                                 Governing Law.  This Agreement has been executed in the State
of Illinois, and Waggoner and the Company agree that this Agreement shall be
interpreted in accordance with and governed by the laws of the State of
Illinois, without regard to its conflicts of laws principles.

 

15.                                 Successors and
Assigns.  This Agreement shall inure to
the benefit of and be binding upon the Company and its successors and assigns,
provided that successor or assignee is the successor to substantially all of
the assets of the Company, or a majority of its then outstanding Shares, and
that such successor or assignee assumes the liabilities, obligations and duties
of the Company under this Agreement, either contractually or as a matter of law.  In view of the personal nature of the
services to be performed under this Agreement by Waggoner, he shall not have
the right to assign or transfer any of his rights, obligations or benefits under
this Agreement, except as otherwise noted herein.

 

16.                                 Entire
Agreement.  This
Agreement, including its attached Exhibits, constitutes the entire employment
agreement between Waggoner and the Company regarding the terms and conditions
of his employment, with the exception of (i) those provisions of the Company’s
2008 Stock Incentive Plan, as amended, incorporated by reference pursuant to Section
8 and (ii) any stock option agreement between Waggoner and the Company
described in Section 5.  This Agreement
(including the documents described in clauses (i) and (ii) of this Section 16)
supersedes all prior negotiations, representations or agreements between Waggoner
and the Company, whether written or oral, concerning Waggoner’s employment.

 

17.                                 No Conflict.  Waggoner represents and warrants to the
Company that neither his entry into this Agreement nor his performance of his
obligations hereunder will conflict with or result in a breach of the terms,
conditions or provisions of any other agreement or obligation to which Waggoner
is a party or by which Waggoner is bound, including, without limitation, any
non-competition or confidentiality agreement previously entered into by Waggoner.

 

18.                                 Validity.  Except as otherwise provided in Section 10,
above, if any one or more of the provisions (or any part thereof) of this
Agreement shall be held invalid, illegal or unenforceable

 

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in any respect, the validity, legality and
enforceability of the remaining provisions (or any part thereof) shall not in
any way be affected or impaired thereby.

 

19.                                 Modification. This
Agreement may not be modified or amended except by a written agreement signed
by Waggoner and the Company.

 

20.                                 Withholding.  All payments made to Waggoner pursuant to
this Agreement shall be subject to applicable withholding taxes, if any, and
any amount so withheld shall be deemed to have been paid to Waggoner for
purposes of amounts due to Waggoner under this Agreement.

 

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

 

	
   

  	
  Echo Global Logistics, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Menzel

  
	
   

  	
  Name:

  	
  David
  B. Menzel

  
	
   

  	
  Its:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Douglas R. Waggoner

  
	
   

  	
  Douglas
  R. Waggoner

  

 

9Exhibit
10.5

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this
“Agreement”) is made and entered into as of April 7, 2008 (the “Effective Date”),
by and between Echo Global Logistics, Inc.,
a Delaware corporation (the “Company”), and David
B. Menzel (“Menzel”).

 

1.             Employment; Position and Duties.  The Company agrees to employ Menzel, and Menzel
agrees to be employed by the Company, upon the terms and conditions of this Agreement.  Menzel shall be employed by the Company as the
Company’s Chief Financial Officer reporting to the Chief Executive Officer of the
Company (the “CEO”) and to the Board of Directors of the Company (the “Board”).  In this capacity, Menzel agrees to devote his
full time, energy and skill to the faithful performance of his duties herein, and
shall perform the duties and carry out the responsibilities assigned to him to the
best of his ability and in a diligent, businesslike and efficient manner.  Menzel’s duties shall include all those duties
customarily performed by a Chief Financial Officer, as well as those additional
duties commensurate with his position as Chief Financial Officer that may be reasonably
assigned by the CEO and the Board.  Menzel
shall comply with any policies and procedures established for Company employees,
including, without limitation, those policies and procedures contained in the Company’s
employee handbook previously delivered to Menzel. To the extent there is any conflict
between those policies and the Employment Agreement, the Employment Agreement shall
govern.

 

2.             Board Meetings. 
At the invitation of the Board, Menzel shall be entitled to attend all meetings
of the Board; provided, that the Directors may exclude Menzel from all or any portion
of a meeting if the Directors believes in good faith that such exclusion is reasonably
necessary for the effective conduct of business by the Board or management of the
Company or to preserve the confidentiality or privileged nature of certain information.

 

3.             Term of Employment.  This Agreement shall become effective upon the
Effective Date.  The term of this Agreement
shall commence on the Effective Date and shall expire on April 7, 2013 unless earlier
terminated by either party, in accordance with the terms of this Agreement and/or
the following sentence.  This Agreement may
be terminated by Menzel or by the Company, at any time, with or without Cause (as
defined below).  Upon the termination of Menzel’s
employment with the Company for any reason, neither party shall have any further
obligation or liability under this Agreement to the other party, except as set forth
in Sections 6, 8, 9, 10, 11, 12, and 13 of this Agreement.

 

4.             Compensation. 
Menzel shall be compensated by the Company for his services as follows:

 

(a)           Base Salary. 
Menzel shall be paid an initial base salary of $260,000 per year in accordance
with the Company’s normal payroll procedures. 
Increases in Menzel’s base salary shall be as approved by the Board or its
compensation committee.

 

(b)           Benefits.  During
the term of this Agreement, Menzel shall have the right, on the same basis as other
members of senior management of the Company, to participate in and to receive benefits
under the Company’s executive and employee benefit plans, insurance programs and/or
indemnification agreements, as may be in effect from time to time, subject to any
applicable waiting periods and other restrictions.  In addition, Menzel shall be entitled to the benefits
afforded 

 

 

to other members of senior management under the Company’s
vacation, holiday and business expense reimbursement policies. Menzel’s vacation
benefits shall accrue at a rate not less than four (4) weeks per year.

 

(c)           Performance Bonus. 
In addition to the base salary, Menzel shall be eligible to receive an annual
performance bonus (the “Performance Bonus”) to be approved from time to time by
the Board or its compensation committee. 
The Performance Bonus shall be paid within the period ending on the 15th
day of the third month following the end of the Company’s fiscal year, but in no
event after the close of the Company’s fiscal year following the year in which the
Performance Bonus was earned.

 

(d)           Expenses.  In
addition to reimbursement for business expenses incurred by Menzel in the normal
and ordinary course of his employment by the Company pursuant to the Company’s standard
business expense reimbursement policies and procedures, the Company shall reimburse
Menzel for the full amount of his medical insurance costs should he elect to participate
in the Company’s medical insurance program(s).

 

(e)           Automobile Allowance.  The Company agrees to pay Menzel an automobile
allowance of $800 per month ($9,600 annually).

 

5.             Stock Options. 
On the Effective Date, Menzel shall be granted one or more options (the “Options”)
to purchase an aggregate of 165,000 shares of common stock (the “Shares”) of the
Company at a purchase price of $4.40 per Share (or such other amount as shall be
determined to be the “Fair Market Value” of each Share as of the Effective Date
in accordance with the Echo Global Logistics LLC 2005 Stock Option Plan) (the “Purchase
Price”).  In the event that Menzel’s employment
with the Company is terminated, Menzel shall have ninety (90) days following such
termination to exercise any vested Options; provided, however, that in the case
of termination due to death or disability, such period shall be six (6) months.  Notwithstanding the foregoing, the Options shall
not be exercisable after the expiration of their terms.  The Options shall vest as follows: 40,000 Shares
on April 7, 2008 (which options shall be immediately exercisable); an additional
25,000 Shares on April 7, 2009; an additional 25,000 Shares on April 7, 2010; an
additional 25,000 Shares on April 7, 2011; an additional 25,000 Shares on April
7, 2012; and an additional 25,000 Shares on April 7, 2013.   Except as provided herein, such Options shall
be subject to the terms of the Company’s 2005 Option Plan and the option agreement
provided to Menzel pursuant to such plan. 
The number of Shares and Purchase Price per Share set forth in this Section
5 shall be adjusted to reflect any Share splits or Share dividends after the Effective
Date.  In addition, upon completion of an
Initial Public Offering, the Options shall be exercisable for shares of the class
of common equity securities sold in such offering.

 

For purposes of this Agreement,
“Initial Public Offering” means any initial public offering by the Company of its
common equity securities to the public pursuant to an effective registration statement
under the Securities Act of 1933, as amended (the “Securities Act”), or any comparable
statement under any similar federal law then in force, that results in no less than
$50,000,000 of net proceeds to the Company.

 

The vesting of the Options shall
accelerate, in the proportion specified herein, in the event that, during the term
of this Agreement, there occurs the sale to any third party of at least fifty percent
(50%) of the total then-outstanding Shares of the Company for cash or publicly traded
stock 

 

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at an amount equal to or greater than the Purchase Price
per Share.  If either of these acceleration
events occur within the first two years of this Agreement, then fifty percent (50%)
of the unvested Options shall accelerate; if either of these acceleration events
occur after the first two years of this Agreement, then seventy-five percent (75%)
of the unvested Options shall accelerate.

 

6.             Benefits Upon Termination.

 

(a)           Termination for Cause or Termination for Other than Good
Reason.  In the event of the termination
of Menzel’s employment by the Company for Cause (as defined below), the termination
of Menzel’s employment by reason of his death or disability, or the termination
of Menzel’s employment by Menzel for any reason other than without Cause or for
Good Reason (as defined below), Menzel shall be entitled to no further compensation
or benefits from the Company other than those earned under Sections 4(a), 4(b),
and 4(c) through the date of termination, or in the case of any Options, vested
through the date of termination.  All unvested
Options shall thereupon terminate immediately, and all vested Options shall be subject
to the terms and conditions of the applicable award.

 

For purposes of this Agreement,
a termination for “Cause” occurs if Menzel’s employment is terminated by the Company
for any of the following reasons:

 

(i)            his material breach of any provision of this Agreement, provided
that in those instances in which his material breach is capable of being cured,
Menzel has failed to cure within a thirty (30) day period after notice from the
Company;

 

(ii)           theft, dishonesty, or falsification of any employment or Company
records by Menzel;

 

(iii)          the reasonable determination by the Board that Menzel has committed
an act or acts constituting a felony or any act involving moral turpitude; or

 

(iv)          the reasonable determination by the Board that Menzel has engaged
in willful misconduct or gross negligence that has had a material adverse effect
on the Company’s reputation or business.

 

For purposes of this Agreement,
a termination for “Good Reason” occurs if Menzel terminates his employment for any
of the following reasons:

 

(i)            the Company materially reduces Menzel’s duties or responsibilities
below what is customary for a Chief Financial Officer of a business that is similar
to the Company without Menzel’s consent;

 

(ii)           the Company requires Menzel to relocate his office more than
50 miles from the current office of the Company without his consent; or

 

(iii)          the Company has materially breached the terms of this Agreement.

 

If one or more of the above conditions
exist, Menzel must provide notice to the Company within a period not to exceed ninety
(90) days of the initial existence of the condition.  Upon such 

 

3

 

notice, the Company shall have a period of thirty (30)
days during which it may remedy the condition.

 

(b)           Termination Without Cause or Termination for Good Reason.  If Menzel’s employment is terminated by the Company
for any reason other than for Cause or by reason of his death or disability, or
if Menzel’s employment is terminated by Menzel for Good Reason, Menzel shall be
entitled to:

 

(i)                                     receive continued
payment of his base salary, less applicable withholding, in accordance with the
Company’s normal payroll procedures, for twelve (12) months following the termination
of Menzel’s employment;

 

(ii)           additional vesting of 25,000 otherwise unvested Options; and

 

(iii)                                 receive continued
Company provided insurance benefits with the costs borne by the Company for Menzel
and his dependents for a period ending on the earlier of:  (A) twelve (12) months following the termination
or (B) the date Menzel has secured comparable benefits through another organization’s
benefits program.

 

Notwithstanding anything to the
contrary herein, no payments shall be due under this Section 6(b) unless and until
Menzel shall have executed a general release and waiver of claims against the Company,
consistent with Section 9 below, in a form reasonably satisfactory to the Company,
and the execution of such general release and waiver shall be a condition to Menzel’s
rights under this Section 6(b).

 

7.             Section 409A of the Code.

 

(a)           Except to the extent earlier payment is permitted by Section
409A of the Code and the regulations promulgated thereunder, in the event that any
amount due to Menzel hereunder after the termination of his employment shall be
considered to be deferred compensation pursuant to Section 409A of the Code, and
it is determined that Menzel is a “specified employee” for purposes of Section 409A(a)(2)(B)(i)
of the Code, then the Company shall delay the payment of such amount for six (6)
months after the termination of his employment (or until his death, if earlier)
or for such other amount of time as may be necessary to comply with the requirements
of Section 409A(a)(2)(B)(i) of the Code.

 

(b)           This Agreement is intended to comply and shall be administered
in a manner that is intended to comply with Section 409A of the Code and the interpretative
guidance thereunder, including the exceptions for short-term deferrals, separation
pay arrangements, reimbursements, and in-kind distributions.  This Agreement shall be construed and interpreted
in accordance with such intent.  In addition,
each payment shall be considered a separate payment for purposes of Section 409A
of the Code and any termination of employment under this Agreement shall mean a
separation from service as defined in Section 409A of the Code and Treas. Reg. §1.409A-1(h)(1)(ii)
(or other similar or successor provision). 
The parties agree to make such other amendments to this Agreement as are
necessary to comply with the requirements of Section 409A of the Code.

 

4

 

8.             Change of Control.  If, during the three (3) months prior to the public
announcement of a proposed Change of Control, or at any time within twelve (12)
months following a Change of Control, Menzel’s employment is terminated by the Company
for any reason other than Cause, or terminated by Menzel for Good Reason, Menzel
shall be entitled to, in addition to the compensation and benefits outlined under
Section 6(b) above, immediate vesting of the next full year’s Options as if Menzel’s
employment had continued for a period of twelve (12) months following the termination
(i.e., accelerated vested of all options granted).  For purposes of this Agreement, a “Change of Control”
shall have the same meaning as the term “Change of Control” set forth in the Company’s
2008 Stock Incentive Plan.

 

9.             Employee Inventions and Proprietary Rights Assignment
Agreement.  Menzel agrees to abide by
the terms and conditions of the Company’s standard Employee Inventions and Proprietary
Rights Assignment Agreement previously executed by Menzel.

 

10.           Covenants Not to Compete or Solicit.  During Menzel’s employment and for a period of
twelve (12) months following the termination of Menzel’s employment for any reason,
so long as Menzel is being paid severance in accordance with the terms of Section
6(b) above, Menzel shall not, anywhere in the Geographic Area (as defined below),
other than on behalf of the Company or with the prior written consent of the Company,
directly or indirectly:

 

(a)           perform services for (whether as an employee, agent, consultant,
advisor, independent contractor, proprietor, partner, officer, director or otherwise),
have any ownership interest in (except for passive ownership of one percent (1%)
or less of any entity whose securities have been registered under the Securities
Act or Section 12 of the Securities Exchange Act of 1934, as amended), or participate
in the financing, operation, management or control of, any firm, partnership, corporation,
entity or business that engages or participates in a “competing business purpose”
(as defined below);

 

(b)           induce or attempt to induce any customer, potential customer,
supplier, licensee, licensor or business relation of the Company to cease doing
business with the Company, or in any way interfere with the relationship between
any customer, potential customer, supplier, licensee, licensor or business relation
of the Company or solicit the business of any customer or potential customer of
the Company, whether or not Menzel had personal contact with such entity; and

 

(c)           solicit, encourage, hire or take any other action which is
intended to induce or encourage, or has the effect of inducing or encouraging, any
employee or independent contractor of the Company or any subsidiary of the Company
to terminate his employment or relationship with the Company or any subsidiary of
the Company, other than in the discharge of his duties as an officer of the Company.

 

In the event that Menzel receives
a waiver of the “non-competition” provision from the Company, which the Company
may or may not grant in its sole discretion, Menzel agrees that he will waive any
further claim for severance and insurance benefits beginning on the date of his
employment with a new organization, provided that such new employment is comparable
to Menzel’s employment with the Company in terms of salary and benefits.

 

5

 

For the purpose of this Agreement,
the term “competing business purpose” shall mean the sale or provision of any transportation
or logistics-related services that are competitive with in any manner the services
sold or offered by the Company during the term of this Agreement.  The term “Geographic Area” shall mean the United
States of America.

 

The covenants contained in this
Section 10 shall be construed as a series of separate covenants, one for each county,
city, state, or any similar subdivision in any Geographic Area.  Except for geographic coverage, each such separate
covenant shall be deemed identical in terms to the covenant contained in the preceding
subsections.  If, in any judicial proceeding,
a court refuses to enforce any of such separate covenants (or any part thereof),
then such unenforceable covenant (or such part) shall be eliminated from this Agreement
to the extent necessary to permit the remaining separate covenants (or portions
thereof) to be enforced.  In the event that
the provisions of this Section 10 are deemed to exceed the time, geographic or scope
limitations permitted by applicable law, then such provisions shall be reformed
to the maximum time, geographic or scope limitations, as the case may be, permitted
by applicable laws.

 

11.           Equitable Remedies. 
Menzel acknowledges and agrees that the agreements and covenants set forth
in Sections 9 and 10 are reasonable
and necessary for the protection of the Company’s business interests, that irreparable
injury will result to the Company if Menzel breaches any of the terms of such covenants,
and that in the event of Menzel’s actual or threatened breach of any such covenants,
the Company will have no adequate remedy at law.  Menzel accordingly agrees that, in the event of
any actual or threatened breach by Menzel of any of such covenants, the Company
will be entitled to seek immediate injunctive and other equitable relief, without
posting any bond and without the necessity of showing actual monetary damages.  Nothing in this Section 11 will be construed as prohibiting the Company from pursuing
any other remedies available to it for such breach or threatened breach, including
the recovery of any damages that it is able to prove.

 

12.           Dispute Resolution.   In the event of any dispute or claim relating
to or arising out of this Agreement (including, but not limited to, any claims of
breach of contract, wrongful termination or age, sex, race or other discrimination),
Menzel and the Company agree that all such disputes shall be fully and finally resolved
by binding arbitration conducted by the American Arbitration Association in Chicago,
Illinois in accordance with its National Employment Dispute Resolution rules, as
those rules are currently in effect (and not as they may be modified in the future).  Menzel acknowledges that by accepting this arbitration
provision he is waiving any right to a jury trial in the event of such dispute.
Notwithstanding the foregoing, this arbitration provision shall not apply to any
disputes or claims relating to or arising out of the misuse or misappropriation
of trade secrets or proprietary information.

 

13.           Attorneys’ Fees. 
Menzel shall be entitled to recover from the Company his reasonable attorneys’
fees and costs if he prevails in an action to enforce any right arising out of this
Agreement.  Such payment will be made as soon
as practicable but no later than the fifteenth (15th) day of the third month of
the year following the year in which the action to enforce his rights is finalized.

 

14.           Governing Law. 
This Agreement has been executed in the State of Illinois, and Menzel and
the Company agree that this Agreement shall be interpreted in accordance with and
governed by the laws of the State of Illinois, without regard to its conflicts of
laws principles.

 

6

 

15.           Successors and Assigns.  This Agreement shall inure to the benefit of and
be binding upon the Company and its successors and assigns, provided that successor
or assignee is the successor to substantially all of the assets of the Company,
or a majority of its then outstanding Shares, and that such successor or assignee
assumes the liabilities, obligations and duties of the Company under this Agreement,
either contractually or as a matter of law. 
In view of the personal nature of the services to be performed under this
Agreement by Menzel, he shall not have the right to assign or transfer any of his
rights, obligations or benefits under this Agreement, except as otherwise noted
herein.

 

16.           Entire Agreement. 
This Agreement, including its attached Exhibits, constitutes the entire employment
agreement between Menzel and the Company regarding the terms and conditions of his
employment, with the exception of (i) those provisions of the Company’s 2008 Stock
Incentive Plan incorporated by reference pursuant to Section 8 and (ii) any stock
option agreement between Menzel and the Company described in Section 5.  This Agreement (including the documents described
in clauses (i) and (ii) of this Section 16) supersedes all prior negotiations, representations
or agreements between Menzel and the Company, whether written or oral, concerning
Menzel’s employment.

 

17.           No Conflict. 
Menzel represents and warrants to the Company that neither his entry into
this Agreement nor his performance of his obligations hereunder will conflict with
or result in a breach of the terms, conditions or provisions of any other agreement
or obligation to which Menzel is a party or by which Menzel is bound, including
without limitation, any non-competition or confidentiality agreement previously
entered into by Menzel.

 

18.           Validity.  Except
as otherwise provided in Section 10, above, if any one or more of the provisions
(or any part thereof) of this Agreement shall be held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions
(or any part thereof) shall not in any way be affected or impaired thereby.

 

19.           Modification. This Agreement may not be modified or
amended except by a written agreement signed by Menzel and the Company.

 

20.           Withholding. 
All payments made to Menzel pursuant to this Agreement shall be subject to
applicable withholding taxes, if any, and any amount so withheld shall be deemed
to have been paid to Menzel for purposes of amounts due to Menzel under this Agreement.

 

*       *       *

 

7

 

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

 

	
   

  	
  Echo Global Logistics, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Authorized Person

  
	
   

  	
  Name:

  	
  Authorized
  Person

  
	
   

  	
  Its:

  	
  Authorized
  Person

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  David B. Menzel

  
	
   

  	
  David
  B. Menzel

  

 

8

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