Document:

EXHIBIT 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
is made as of the 10th day of September 10, 2014, by and between John Joseph
Gonzalez II, residing at              hereinafter
referred to as the “Executive”), and Janel World Trade, Ltd.,
a Nevada corporation (hereinafter referred to as the “Company”).

 

Explanatory
Statement

 

The Executive owns, directly
and indirectly, more than 90% of the equity interests in Alpha International, LP, a New York limited partnership (“AILP”)
and PCL Transport, LLC, a New Jersey limited liability company (“PCL”; AILP and PCL are herein referred to collectively
as “Alpha”). The Company, the Executive, Alpha and others entered into an Equity Interest Purchase Agreement
dated as of August 18, 2014 (the “Purchase Agreement”) with respect to the purchase by the Company and its affiliates
of all of the equity interests in each of AILP and PCL. The Company desires to employ the Executive, and the Executive wishes to
accept such employment, upon the terms and conditions set forth in this Agreement.

 

NOW THEREFORE, the
parties, intending to be legally bound, agree as follows:

 

Agreement

 

1.            Employment.

 

1.1.          Subject
to and upon the terms and conditions of this Agreement, the Company hereby employs, and agrees to continue the employment of, the
Executive during the term hereof, and the Executive hereby accepts such continued employment in the capacity as Senior Managing
Director of the Company’s Northeast Region which conducts the Company’s freight forwarding operations in and around
the states of New Jersey, New York and Pennsylvania (the “Northeast Region”). In the performance of his duties,
the Executive shall report to such management personnel as shall be designated from time to time by the Company’s President
or by the Company’s Chief Operating Officer.

 

1.2.          The
Executive represents and warrants that he is not bound by any non-competition, franchise, service, or other agreement which would
prohibit or restrict him from entering into this Agreement or performing any of his obligations under this Agreement. Any such
agreement which would prohibit or restrict the Executive from entering into this Agreement or performing any of his obligations
hereunder have been duly terminated, and all such prohibitions or restrictions have lapsed without the other party to any such
agreement filing any action to continue any such prohibitions or restrictions.

 

    	 

    	 

    

 

2.            Duties.

 

2.1.          During
the term of his employment with the Company, the Executive shall be responsible for integrating Alpha’s former business and
customers into the Company and the Company’s operating procedures, and growing and maximizing the former Alpha business on
behalf of the Company. Furthermore, as Senior Managing Director of the Northeast Region, the Executive shall: (i) be responsible
for the efficient operation and profitability of the Northeast Region; (ii) subject to the annual budget for the Northeast Region
prepared by the Executive and approved by the President or Board of Directors of the Company (the “Budget”),
have control of the components of the Northeast Region profit and loss (other than Company corporate allocations); (iii) subject
to the Budget, be in charge of all financial, personnel, and operational elements of the Northeast Region; (iv) be responsible
for adherence to written Company policies and procedures and written corporate directives as and when issued; (v) subject to the
Budget, have hiring and firing responsibility in accordance with Company policy and applicable laws; and (vi) be responsible for
sales production and operational efficiency within the Northeast Region. In addition, the Executive will perform such other duties
as may be agreed upon by the Executive and the President of the Company.

 

2.2.          The
Executive agrees to devote his full working time and best efforts to the performance of his duties for the Company. The Executive
shall perform his duties in accordance with the Company’s policies and standard operating procedures as they may be in effect
from time to time.

 

2.3.          In
no event will Executive be required to relocate his residence from its present location.

 

3.            Term.

 

This Agreement shall
be for a term (the “Employment Period”) commencing on the Closing Date under the Purchase Agreement and terminating
on the day prior to the third anniversary thereof, unless sooner terminated pursuant to the terms hereof. This Agreement shall
thereafter be renewed and extended on its prevailing terms and conditions for successive one-year terms unless either party shall,
not less than 30 days prior to the expiration of the initial term or any renewal term, gives written notice to the other of his/her
or its intention not to renew.

 

4.            Compensation.

 

The Company shall pay
to the Executive a salary at the rate of $200,000 per annum, pursuant to such regular pay periods as are adopted by the Company
from time to time (the “Salary”), subject to adjustment as may be approved by the Company from time to time.
The Company shall withhold from Executive’s compensation all federal, state and local taxes that it may now or may hereafter
be required to withhold.

 

5.            Benefits.

 

5.1.          The
Executive shall be entitled to vacation time, holiday time, sick leave and other leave all in accordance with the Company’s
policy with respect to such matters. The parties understand that such benefits are beneficial to both the Company and the Executive
and will not be abused. The Executive shall take his vacation at such reasonable time or times as shall be agreed upon by the Executive
and the Company. In no event shall any vacation time, holiday time, sick leave and other leave for any year accrue to future years
or entitle the Executive to cash compensation for any such time not used.

 

    	- 2 -

    	 

    

 

5.2.          During
the term hereof:

 

(i)          The
Company shall provide the Executive with such group health insurance, life insurance and disability insurance benefits as are provided
to other executives of the Company from time to time during the term of this Agreement in accordance with the Company’s policies
with respect to such matters.

 

(ii)         An
automobile payment allowance of $2,000 per month, inclusive of all insurance, fuel and service expenses for such automobile.

 

(iii)        The
Executive shall be promptly reimbursed by the Company upon presentation of appropriate vouchers for all reasonable business expenses
incurred by the Executive on behalf of the Company consistent with the Company’s expense, travel and entertainment policies.

 

6.            Stock
Options.

 

Concurrent with the
execution hereof, the Company and the Executive will enter into the Stock Option Agreement attached hereto.

 

7.            Non-Disclosure.

 

The Executive shall
not at any time during or after the termination of his employment hereunder make use of or disclose to any person, corporation,
or other entity, for any purpose whatsoever, any trade secrets or other confidential information concerning the business of the
Company and/or any of its affiliates, and/or their respective finances, pricing, sales and marketing information, freight forwarding
information, and other business information relating to the terms of any business relationship with any vendor or customer, nor
shall Executive make use of, disclose or make known the names, historical freight forwarding information or financial terms relating
to any customer of the Company and/or any of its affiliates (collectively referred to as the “proprietary information”),
except to the extent necessary for the performance of his duties hereunder. For the purposes of this Agreement, trade secrets,
confidential information and proprietary information shall mean information disclosed to the Executive or known by him as a consequence
of his association with the Company, whether or not pursuant to this Agreement, and not generally known in the industry, concerning
the business, finances, methods, operations, sales, marketing information, freight forwarding information and information relating
to pricing, vendor lists and customer lists of the Company. The Executive acknowledges that trade secrets and other items of confidential
information, as they may exist from time to time, are valuable and unique assets of the Company and that disclosure of any such
information would cause substantial injury to the Company.

 

    	- 3 -

    	 

    

 

8.            Termination.

 

8.1.          The
Employment Period and the Executive’s Salary, and any and all other rights of the Executive under this Agreement or otherwise
as an Executive of the Company will terminate:

 

(i)          upon
the expiration of the then-current term without renewal pursuant to Section 3 hereof;

 

(ii)         upon
the death of the Executive;

 

(iii)        upon
the disability of the Executive (as defined in Section 8.2 hereof) immediately upon notice from either party to the other; or

 

(iv)        upon
termination of the Executive for cause (as defined in Section 8.3 hereof), immediately upon notice from the Company to the Executive,
or at such later time as such notice may specify.

 

8.2.          For
purposes of Section 8.1 hereof, the Executive will be deemed to have a “disability” if, for physical or mental reasons,
the Executive is unable to perform the essential functions of the Executive’s duties under this Agreement for 90 consecutive
days, or 120 non-consecutive days during any 12-month period. The disability of the Executive will be determined by a medical doctor
selected by the Company and the Executive upon the request of either party by notice to the other. If the Company and the Executive
cannot agree on the selection of a medical doctor, each of them will select a medical doctor and the two medical doctors will select
a third medical doctor who will determine whether the Executive has a disability. The expenses of each doctor selected by a party
shall be paid by such party, and the expenses of a doctor selected jointly by the parties or jointly by the two doctors selected
by the parties shall be paid by the Company. The determination of the medical doctor selected will be binding on both parties.
The Executive must submit to a reasonable number of examinations by the medical doctor making the determination of disability under
this Section, and the Executive hereby authorizes the disclosure and release to the Company of such determination and all supporting
medical records. The Company will keep all such medical information confidential, will not reproduce any such medical information
except to the extent necessary to complete the confidential personnel file of the Executive, and will promptly return all such
records to the Executive or his representative upon request. If the Executive is not legally competent, the Executive’s legal
guardian or duly authorized attorney-in-fact will act in the Executive’s stead, under this Section, for the purposes of submitting
the Executive to the examinations, and providing the authorization of disclosure, required under this Section.

 

    	- 4 -

    	 

    

 

8.3.          For
purposes of Section 8.1 hereof, the phrase “for cause” means: (i) the Executive’s material breach of this Agreement
following written notice by the Company to the Executive of such breach, and the Executive’s failure to commence the cure
of such breach within 10 days following receipt of such notice and diligent pursuit and cure of such breach within 30 days following
receipt of such notice (which may be extended in the Company’s reasonable discretion if the Executive is diligently pursuing
the cure thereof); (ii) the Executive’s failure to adhere to any material written Company-wide policy if the Executive has
been given a reasonable opportunity to comply with such policy or to cure his failure to comply (which reasonable opportunity must
be granted during the 20-day period preceding termination of this Agreement); (iii) the appropriation (or attempted appropriation)
of a material business opportunity of the Company for the Executive’s personal benefit or for the benefit of any individual
or entity other than the Company and its affiliates, including attempting to secure or securing any personal profit in connection
with any transaction entered into on behalf of the Company; (iv) the misappropriation (or attempted misappropriation) of any of
the Company’s funds or property; or (v) the conviction of, the indictment for (or its procedural equivalent), or the entering
of a guilty plea or plea of no contest with respect to, a felony.

 

8.4.          Effective
upon the termination of this Agreement, in lieu of all other amounts and in settlement and complete release of all claims the Executive
may have against the Company, the Company will pay the Executive only as follows, in accordance with the Company's policy with
respect to such matters:

 

(i)          If
this Agreement terminates due to its expiration, the Executive will be entitled to receive his Salary only through such expiration
date.

 

(ii)         If
the Company terminates this Agreement for cause, the Executive will be entitled to receive his Salary only through the date such
termination is effective.

 

(iii)        If
this Agreement is terminated by either party as a result of the Executive’s disability, the Company will pay the Executive
his Salary through the remainder of the calendar month during which such termination is effective.

 

(iv)        If
this Agreement is terminated because of the Executive’s death, the Executive's estate or personal representative will be
entitled to receive his Salary through the remainder of the calendar month during which his death occurs.

 

The Executive’s accrual of, or participation
in Executive benefit plans will cease at the effective date of the termination of this Agreement, and the Executive will be entitled
to accrued benefits pursuant to such plans only as provided in such plans and by applicable state and federal laws. The Executive
will not receive, as part of his termination pay pursuant to this Section, any payment or other compensation for any vacation,
holiday, sick leave, or other leave unused on the date the notice of termination is given under this Agreement.

 

9.            Covenants
of the Executive.

 

9.1.          The
Executive is subject to certain restrictive covenants set forth in Section 13 of the Purchase Agreement.

 

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9.2.          In
the event of breach by the Executive of the terms of this Section, the Company shall be entitled to institute legal proceedings
to obtain damages for such breach, or to enforce the specific performance of this Section and to enjoin the Executive from any
further violation of this Section and to exercise such remedies cumulatively or in conjunction with all other rights and remedies
provided at law. The Executive acknowledges, however, that the remedies at law for any breach by any of them of the provisions
of this Section may be inadequate. In addition, in the event the agreements set forth in this Section shall be determined by any
court of competent jurisdiction to be unenforceable by reason of extending for too great a period of time or by reason of being
too extensive in any other respect, each such agreement shall be interpreted to extend over the maximum period of time for which
it may be enforceable and to the maximum extent in all other respects as to which it may be enforceable and enforced as so interpreted,
all as determined by such court in such action.

 

10.          Miscellaneous.

 

10.1.          Entire
Agreement; Amendment. This Agreement sets forth the entire agreement between the parties and supersedes all prior agreements
between the parties, whether oral or written, with respect to the subject matter of this Agreement. No change, addition or amendment
shall be made hereto, except by written agreement signed by all of the parties hereto.

 

10.2.          Severability.
If any provision of this Agreement shall be held invalid and unenforceable, the remainder of this Agreement shall remain in full
force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall remain in
full force and effect in all other circumstances.

 

10.3.          Notices.
All notices, writings and other communications required or permitted to be given pursuant to this Agreement shall be in writing,
and if such notices are hand-delivered, faxed or e-mailed, return fax or e-mail acknowledgement requested, to the address set forth
below, they shall be deemed to have been received on the business day so delivered or transmitted; if such notices are transmitted
by overnight courier, to the address set forth below, they shall be deemed to have been received on the business day following
the date on which so transmitted, provided that any notice, writing or other communication received after 5:00 p.m., Eastern Time,
shall be deemed to have been received on the next business day:

 

	Janel:	Janel World Trade, Ltd.
	 	150-14 132nd Avenue
	 	Jamaica, New York
	 	Attention: William J. Lally
	 	Fax (516) 593-0925
	 	blally@janelgroup.net
	 	 
	With a copy to:	Hillel Tendler, Esquire
	 	Neuberger, Quinn, Gielen, Rubin & Gibber, P.A.
	 	One South Street, 27th Floor
	 	Baltimore, Maryland  21202
	 	Fax (410) 951-6038
	 	ht@nqgrg.com

 

    	- 6 -

    	 

    

 

	The Executive:	Mr. John Joseph Gonzalez II
	 	 
	With a copy to:	Jack P. Baron, Esquire
	 	Lum, Drasco & Positan, LLC
	 	103 Eisenhower Parkway
	 	Roseland, NJ 07068
	 	Fax: (973) 403-9021
	 	jbaron@lumlaw.com

 

10.4.          Benefit.
This Agreement shall inure to, and shall be binding upon, the parties hereto, the successors and assigns of the Company and the
heirs and personal representatives of the Executive. The Executive may not assign any of his rights or obligations hereunder. The
Company may assign its rights and obligations hereunder to another entity controlling, controlled by, or under common control with
the Company.

 

10.5.          Waiver.
The waiver by either party of any breach or violation of any provision of this Agreement or the failure by any party to take action
in response to the conduct or performance of any party shall not operate or be construed as a waiver of any subsequent breach,
violation, conduct or performance.

 

10.6.          Governing
Law. The internal law of the State of New York shall govern the construction and validity of this Agreement without regard
to conflicts of law.

 

10.7.          Defined
Terms. Except as may otherwise be expressly provided herein, all capitalized terms have the meanings set forth in the Purchase
Agreement.

 

10.8.          Counterparts.
This Agreement may be executed in counterparts, all of which taken together shall constitute one instrument.

 

[signatures
appear on next page]

 

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

 

	 	The Company:
	 	Janel World Trade, Ltd.
	 	 
	 	By:	/s/ William J. Lally
	 	 	William J. Lally
	 	 	President and Chief Executive Officer
	 	 
	 	The Executive:
	 	 
	 	/s/ John Joseph Gonzalez II
	 	John Joseph Gonzalez II

 

    	- 8 -EXHIBIT 10.5

 

Janel
World Trade, Ltd.

Stock
Option Agreement

 

This
agreement, is made as of this 10th day of September, 2014, by and between Janel
World Trade, Ltd., a Nevada corporation (hereinafter called the “Company”), and John
Joseph Gonzalez II (hereinafter called the “Optionee”).

 

The Board of Directors
of the Company considers it desirable and in the Company’s best interest that the Optionee be given an opportunity to purchase
shares of the Company’s Common Stock, par value $0.001 per share (the “Shares”) to provide an incentive
for the Optionee to accept employment with the Company and to promote the success of the Company.

 

NOW, THEREFORE, in
consideration of the premises, it is agreed as follows:

 

1.        Grant
of Option. The Company hereby grants to Optionee the right, privilege and option (“Option”) to purchase
from the Company Two Million (2,000,000) Shares in the manner and subject to the conditions hereinafter provided, at a purchase
price equal to the greater of (i) the closing price per Share as reported on the OTC Bulletin Board, or (ii) $0.065 per Share.

 

2.        Period
of Exercise of Option.

 

(a)          The
option will be vest and become exercisable, from time to time, as follows: On each of the first and second anniversaries of the
date hereof, the Option may be exercised to purchase Six Hundred Thousand Six Hundred Sixty-seven (666,667) Shares, and on the
third anniversary of the date hereof, the Option may be exercised to purchase Six Hundred Thousand Six Hundred Sixty-six (666,666)
Shares (each such anniversary date being hereinafter referred to as the “Vesting Date”), in each case together
with the number of Shares which Optionee was theretofore entitled to purchase, except as provided in subparagraphs (b) and (c)
below, provided the Optionee’s employment with the Company or any of its subsidiaries is not terminated by the Company or
the Optionee prior to the Vesting Date.

 

(b)          All
unvested options will terminate, be forfeited and will lapse immediately upon the termination of the Optionee’s employment
with the Company and its subsidiaries, for any reason, prior to a Vesting Date. In addition, all unexercised options will terminate,
be forfeited and will lapse immediately upon the termination of the Optionee’s employment with the Company and its subsidiaries,
for any reason, (i) if, following any Vesting Date, the Optionee’s employment with the Company or any of its subsidiaries
is terminated because the Optionee is discharged for dishonesty, commission of a felony or the intentional committing of an act
which has a material adverse effect or impact upon the Company or any of its subsidiaries, such as his disclosing Company confidential
information or trade secrets to an unauthorized person or persons, or (ii) if the Optionee accepts employment with a competitor
of the Company or any of its subsidiaries, without the consent of the Company.

 

    	 

    	 

    

 

(c)          If,
following a Vesting Date, the Optionee’s employment with the Company and its subsidiaries is terminated for any reason other
than as set forth in subparagraph (b)(i) or (ii) above, the Optionee may exercise, subject to the provisions of subparagraphs (a)
and (b) above, any unexercised options for a period of ninety (90) days after the date of the termination of his employment with
the Company and its subsidiaries; provided, however, that if the Optionee’s employment with the Company or any of its subsidiaries
is terminated by reason of his death, the Optionee’s personal representatives, estate or heirs (as the case may be) may exercise,
subject to the provisions of subparagraph (a) above, any unexercised options for a period of one hundred eighty (180) days after
the date of the Optionee’s death.

 

3.        Method
of Exercise. In order to exercise the option the holder thereof must give written notice to the Chief Executive Officer of
the Company at Jamaica, New York, accompanies by full payment of the Shares being purchased and a written statement that the Shares
are purchased for investment and not with a view to distribution. If the option is exercised by the successor of the Optionee following
his death, proof shall be submitted of the right of the successor to exercise the option. Shares of stock issued pursuant to this
Plan which have not been registered with the Securities and Exchange Commission shall bear the following legend:

 

“The
shares represented by this Certificate have not been registered under the Securities Act of 1933 and may be offered or sole only
if registered under the provisions of that Act or if an exemption from registration is available.”

 

The Company shall not
be required to transfer or deliver any certificate or certificates for Shares purchased upon any such exercise of said option:
(a) until after compliance with all then applicable requirements of law; and (b) prior to admission of such Shares to listing on
any stock exchange on which the stock may then be listed. In no event shall the Company be required to issue fractional Shares
to the Optionee.

 

4.        Limitation
upon Transfer. Except as otherwise provided in paragraph 2 hereof, the option and all rights granted hereunder shall not be
transferred by the Optionee, other than by will or by the laws of descent and distribution, and may not be assigned, pledged or
hypothecated in any way and shall not be subject to execution, attachment or similar process. Upon any attempt to transfer the
options, other than by will or by the laws of descent and distribution, or to assign, pledge, hypothecate or otherwise dispose
of such option or of any rights granted hereunder, contrary to the provisions hereof, or upon the levy of any attachment or similar
process upon such option or such rights, such option and such rights shall immediately become null and void.

 

5.        Stock
Adjustment. In the event there is any change in the number of issued Shares by reason of stock splits, reverse stock splits,
stock dividends, recapitalizations or other transactions, the number of Shares remaining subject to the option and the option price
per Share shall be proportionately adjusted.

 

    	- ii -

    	 

    

 

6.        Corporate
Reorganization. If there shall be any capital reorganization or consolidation or merger of the Company with another corporation
or corporations, or any sale of all or substantially all of the Company’s properties and assets to any other corporation
or corporations, the Company shall take such action as may be necessary to enable the Optionee to receive upon any subsequent exercise
of such option, in whole or in part, in lieu of Shares, securities or other assets as were issuable or payable upon such reorganization,
consolidation, merger or sale in respect of, or in exchange for such Shares.

 

7.        Rights
of Stockholder. Neither the Optionee, his legal representatives, nor any other person entitled to exercise such option shall
have any rights or be a stockholder in the Company in respect of the Shares issuable upon exercise of the option granted hereunder,
unless and until certificates representing such Shares shall have been delivered pursuant to the terms hereof.

 

8.        Stock
Reserved. The Company shall at all times during the term of this Agreement reserve and keep available such number of Shares
as will be sufficient to satisfy the terms of this Agreement.

 

9.        Representations
of Optionee. In connection with the grant of the option set forth above, the Optionee represents and warrants to the Company
as follows with the understanding that the Company will rely upon the accuracy and completeness of the following representations
and warranties in granting the option:

 

(i)          The
Optionee is a resident of the State of New York.

 

(ii)         The
Optionee has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks
of an investment in the Company, and the Optionee is fully familiar with all financial and other information with respect to the
Company.

 

(iii)        The
Optionee is a person who is able to bear the economic risk of an investment in the Company of the size contemplated, and in making
this statement, the Optionee has considered and concluded that he can afford to hold the investment for an indefinite period of
time and that he can afford a complete loss of his investment.

 

(iv)        The
Optionee understands that the Company is subject to the reporting requirements of the Securities Exchange Act of 1934 and the regulations
promulgated thereunder and that the Optionee has had an opportunity to review all information about the Company which he deems
pertinent to his investment decision. The Optionee has had a reasonable opportunity to ask questions of and receive answers from
the President of the Company concerning the Company and its operations, and all such questions have been answered to the Optionee’s
full satisfaction.

 

(v)         The
Shares to be issued upon exercise of the option will be being acquired by the Optionee for his own account, for investment purposes
only, and not with a view to resale or distribution, either in whole or in part.

 

(vi)        The
Optionee understands that the Shares to be issued upon exercise of the option have not been registered with the Securities and
Exchange Commission or with any state securities commission, will be sold in reliance on an exemption from applicable federal and
state securities registration requirements, and, following issuance, may not be resold without registration or exemption therefrom.
The Optionee further understands that federal and state securities regulations impose significant restrictions on the transfer
of Shares to be issued upon exercise of the option.

 

    	- iii -

    	 

    

 

(vii)       The
representations and warranties set forth above are complete and correct and may be relied upon by the Company in determining whether
the grant of the option and the exercise thereof are exempt from registration under the federal and applicable state securities
laws.

 

10.       Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors.

 

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

 

	ATTEST:	 	Janel World Trade, Ltd.	 
	 	 	 	 
	/s/	 	By:	/s/ William J. Lally	(SEAL)
	 	 	 	William J. Lally, President	 
	WITNESS:	 	 	 	 
	 	 	 	 	 
	/s/	 	/s/ John Joseph Gonzalez II	(SEAL)
	 	 	John Joseph Gonzalez II	 

 

    	- iv -

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