Document:

exhibit_10-2.htm

EXHIBIT 10.2

 

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

 

This Amendment (this “Amendment”) to the Executive Employment Agreement by and between Laredo Oil, Inc., a Delaware corporation (the “Company”), and Bradley Sparks (“Executive”), dated as of October 20, 2009 (the “Agreement”), is made and entered into as of October 15, 2014 (the “Effective Date”) by the Company and the Executive.  Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given thereto in the Agreement.

 

WHEREAS, the Company and the Executive wish to amend the Agreement in order to provide for certain modifications to the terms of Executive’s employment by the Company as its Chief Financial Officer;

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Amendment hereby agree as follows:

 

1.           Amendment of First Sentence of Section 3 of the Agreement.  The first sentence of Section 3 of the Agreement is hereby amended by inserting the words “Austin, Texas” in replacement of the words “(to be determined) and any other location where the Company now or hereafter has a business facility”.

 

2.           Amendment of First Paragraph of Section 4 of the Agreement.  The first paragraph of Section 4 of the Agreement is hereby amended to read in its entirety as follows:

 

“For all services to be rendered by Executive pursuant to this Agreement, the Company agrees to pay Executive during the Employment Period a base salary (the “Base Salary”) at an annual rate of $385,000.  The Base Salary shall be paid in periodic installments in accordance with the Company’s regular payroll practices.”

3.           Amendment of Section 10(e) of the Agreement.  Section 10(e) of the Agreement is hereby amended as follows:

 

	
  

	
a.

	
Section 10(e)(1) shall be replaced in its entirety to read as follows:

 

“At any time during the term of this Agreement, subject to the conditions set forth in Section 10(e)(2) below, the Executive may terminate this Agreement and the Executive’s employment with the Company for “Good Reason.” For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events: (A) the assignment, without the Executive’s consent, to the Executive of duties that are significantly different from, and that result in a substantial diminution of, the duties that he assumed on the Effective Date; (B) the assignment, without the Executive’s consent, to the Executive of a title that is different from and subordinate to the title Chief Financial Officer; (C) a material change in the principal office location at which Employee must perform services for the Company to another location that is not within a 50-mile radius of the city of Austin, Texas; or (D) material breach by the Company of this Agreement.”

  

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b. 

	
Section 10(e)(3) shall be replaced in its entirety to read as follows:

 

“In the event that the Executive terminates this Agreement and his employment with the Company for Good Reason, the Company shall pay or provide to the Executive (or, following his death, to the Executive’s heirs, administrators or executors): (A) any earned but unpaid Base Salary, unpaid pro rata annual bonus and unused vacation days accrued through the Executive’s last day of employment with the Company; (B) continued coverage, at the Company’s expense, under all Benefits Plans in which the Executive was a participant immediately prior to his last date of employment with the Company, or, in the event that any such Benefit Plans do not permit coverage of the Executive following his last date of employment with the Company, under benefit plans that provide no less coverage than such Benefit Plans, for a period of two years following the termination of employment; (C) reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date; and (D) the Base Salary, as in effect immediately prior to the Executive’s termination hereunder, and any bonuses earned, for a two year period following termination; provided that if such termination occurs within 12 months after a Change of Control, such two year period shall be increased to a three year period. All payments due hereunder shall be payable according to the Company’s standard payroll procedures; provided that if such termination occurs within 12 months after a Change of Control, the payment set forth in Section 10(e)(3)(D) shall be paid in a lump sum within 30 days of such termination. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.”

4.           Amendment of Section 10(f)(2) of the Agreement.  Section 10(f)(2) of the Agreement shall be amended in its entirety as follows:

 

“By the Company.   At any time during the term of this Agreement, the Company shall be entitled to terminate this Agreement and the Executive’s employment with the Company without Cause by providing prior written notice of at least 30 days to the Executive.  Upon termination by the Company of this Agreement and the Executive’s employment with the Company without Cause, the Company shall pay or provide to the Executive (or, following his death, to the Executive’s heirs, administrators or executors): (A) any earned but unpaid Base Salary, unpaid pro rata annual bonus and unused vacation days accrued through the Executive’s last day of employment with the Company; (B) continued coverage, at the Company’s expense, under all Benefits Plans in which the Executive was a participant immediately prior to his last date of employment with the Company, or, in the event that any such Benefit Plans do not permit coverage of the Executive following his last date of employment with the Company, under benefit plans that provide no less coverage than such Benefit Plans, for a period of two years following the termination of employment; (C) reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date; and (D) the Base Salary, as in effect immediately prior to the Executive’s termination hereunder, and any bonuses earned, for a two year period following termination; provided that if such termination occurs within 12 months after a

  

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Change of Control, such two year period shall be increased to a three year period. All payments due hereunder shall be payable according to the Company’s standard payroll procedures; provided that if such termination occurs within 12 months after a Change of Control, the payment set forth in Section 10(f)(2)(D) shall be paid in a lump sum within 30 days of such termination.  The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.”

5.           Amendments of Section 13 of the Agreement.

 

	
  

	
a.

	
Section 13 of the Agreement shall be amended to add a new Section 13(m) to read as follows:

 

“Notwithstanding any provision of this Agreement to the contrary, if Executive is considered a “specified employee” upon his termination from employment under such procedures as established by Company in accordance with the limitations and requirements set forth in Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), the regulations promulgated thereunder, and any additional guidance issued by the Internal Revenue Service related thereto (the “Nonqualified Deferred Compensation Rules”), then any portion of a cash or benefit distribution made upon such a termination from employment that would cause the acceleration of, or an addition to, any taxes pursuant to the Nonqualified Deferred Compensation Rules may not commence earlier than six months after the date of such termination from employment (or, if earlier, Executive’s death during such six-month period); any payments or benefits that would be exempt from the Nonqualified Deferred Compensation Rules shall be paid in accordance with the original schedules noted in other sections of this Agreement.  Therefore, in the event this Section 13(m) is applicable to Executive, any distribution which would cause the acceleration of, or an addition to, any taxes pursuant to the Nonqualified Deferred Compensation Rules that would otherwise have been paid to Executive within the first six months following Executive’s termination from employment shall be accumulated and paid to Executive (without interest) in a lump sum on the first day of the seventh month following his termination from employment.  All subsequent distributions, if any, shall be paid in the manner otherwise specified herein.  If any provision of this Agreement does not satisfy the requirements of Section 409A of the Code, then such provision shall nevertheless be applied in a manner consistent with those requirements.  In no event whatsoever shall Company be liable for any tax, interest or penalties that may be imposed on Executive under Section 409A of the Code.  Each payment under this Agreement is intended to be a “separate payment” and not a series of payments for purposes of Section 409A of the Code.  Any payments or reimbursements of any expenses provided for under this Agreement shall be made in accordance with Treas. Reg. §1.409A-3(i)(1)(iv).

 

	
  

	
b.

	
Section 13 of the Agreement shall be amended to add a new Section 13(n) to read as follows:

 

 

 

  

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“Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its affiliates to the Executive or for the Executive's benefit pursuant to the terms of this Agreement or otherwise ("Covered Payments") constitute "parachute payments" within the meaning of Section 280G of the Code and would, but for this Section 13(n) be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the "Excise Tax"), then the Covered Payments shall be reduced (but not below zero) to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax. Any such reduction shall be made in a manner that is consistent with the requirements of Section 409A of the Code.

 

6.           Agreement to Remain in Full Force and Effect.  The Agreement shall remain in full force and effect, as amended and modified by this Amendment.

 

7.           Counterparts.  This Amendment may be executed in separate counterparts (including, without limitation, by facsimile, email of scanned copies or other electronic transmission), each of which shall be an original and all of which taken together shall constitute one and the same agreement.

 

Signature page follows.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties to this Amendment have executed this Amendment as of the Effective Date.

 

	 	LAREDO OIL, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Mark See	 
	 	Name:	Mark See	 
	 	Title:  	Chief Executive Officer	 
	 	 	 	 

 

 

	 	

BRADLEY SPARKS

	 
	 	 	 	 
	
 

	
By: 

	/s/  Bradley E. Sparks	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5EXHIBIT 10.1

 

THIRD AMENDMENT TO LOAN AND SECURITY
AGREEMENT

AND DEMAND SECURED PROMISSORY NOTE

 

THIS THIRD AMENDMENT TO LOAN AND SECURITY
AGREEMENT AND DEMAND SECURED PROMISSORY NOTE (this "Amendment") is made and entered into this ninth day of October,
2014, by and between Janel World Trade, Ltd., a Nevada corporation, and The Janel Group of New York, a New York corporation,
and The Janel Group of Illinois, an Illinois corporation, and The Janel Group of Georgia, a Georgia corporation,
and The Janel Group of Los Angeles, a California corporation, and Janel Ferrara Logistics, LLC, a New Jersey limited
liability company, and Alpha International, LP, a New York limited partnership, and PCL Transport, LLC, a New Jersey
limited liability company (individually, jointly and severally, the "Borrower" or “Obligor”) with its chief
executive office and principal place of business at 150-14 132nd Avenue, Jamaica, NY 11434, and Presidential Financial
Corporation, a Georgia corporation (hereinafter referred to as "Lender") with an office at 3460 Preston Ridge
Road, Suite 550, Alpharetta, Georgia, 30005.

 

Recitals:

 

Lender and Borrower
are parties to a certain Loan and Security Agreement dated March 27, 2014 (as at any time amended, the "Loan Agreement")
pursuant to which Lender has made and may from time to time hereafter make loans and other financial accommodations to Borrower.
All Advances under the Loan Agreement are evidenced by, and are repayable with interest as provided in, the Demand Secured Promissory
Note made by Borrower to the order of Lender and dated March 27, 2014 (as at any time amended, the "Note").

 

The parties desire
to increase the line of credit available to the Borrower under the Loan Documents to Seven Million and No/100 Dollars ($7,000,000.00)
from Five Million and No/100 Dollars ($5,000,000.00) and hereby agree to amend the Loan Agreement and the Note as hereinafter set
forth.

 

NOW, THEREFORE, for
TEN DOLLARS ($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby severally
acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

i)Definitions.
Capitalized terms used in this Amendment, unless otherwise defined herein, shall have the meaning ascribed to such terms in the
Loan Agreement.

 

ii)Amendments
to Loan Agreement. The Loan Agreement is hereby amended as follows:

 

(a) By striking the
definition of "Maximum Loan Amount" in Schedule A and by substituting in lieu thereof the following:

 

“Maximum Loan Amount”
means Seven Million and No/100 Dollars ($7,000,000.00).

 

3. Amendment
Fee. In consideration of Lender's willingness to enter into this Amendment as set forth herein, Borrower agrees to pay
to Lender an amendment fee in the amount of $15,000.00 in immediately available funds on the date hereof. Additionally,
Borrower agrees to pay, on demand, all costs and expenses incurred by Lender in connection with the preparation, negotiation and
execution of this Amendment and any other Loan Documents executed pursuant hereto and any and all amendments, modifications, and
supplements thereto, including, without limitation, the costs and fees of Lender's legal counsel and any taxes, filing fees and
other expenses associated with or incurred in connection with the execution, delivery or filing of any instrument or agreement
referred to herein or contemplated hereby.

 

    	 

    	 

    

  

4. Documentation
Fee. A loan documentation fee of $500.00 (“Loan Documentation Fee”), for the negotiation and preparation of
this Agreement, will be charged to the Borrower’s loan account upon receipt of a fully executed copy of this Agreement.

 

5.Ratification
and Reaffirmation. Borrower hereby ratifies and reaffirms the Obligations, each of the Loan Documents, and all of Borrower's
covenants, duties, indebtedness and liabilities under the Loan Documents.

 

6.Acknowledgments
and Stipulations. Borrower acknowledges and stipulates that each of the Loan Documents executed by Borrower creates legal,
valid and binding obligations of Borrower that are enforceable against Borrower in accordance with the terms thereof; all of the
Obligations are owing and payable on demand without defense, offset or counterclaim (and to the extent there exists any such defense,
offset or counterclaim on the date hereof, the same is hereby knowingly and voluntarily waived by Borrower); the security interests
and liens granted by Borrower in favor of Lender are duly perfected, first priority security interests and liens; and the unpaid
principal amount outstanding as of the close of business on October 8, 2014, totaled $3,590,734.60 under the terms of the temporary
line increase documented under the Second Amendment.

 

7.Representations
and Warranties. Borrower represents and warrants to Lender, to induce Lender to enter into this Amendment, that no Default
or Event of Default exists on the date hereof; the execution, delivery and performance of this Amendment have been duly authorized
by all requisite corporate action on the part of Borrower and this Amendment has been duly executed and delivered by Borrower;
and except as may have been disclosed in writing by Borrower to Lender prior to the date hereof, all of the representations and
warranties made by Borrower in the Loan Agreement are true and correct on and as of the date hereof.

 

8.Reference
to Loan Agreement. Upon the effectiveness of this Amendment, each reference in any Loan Document to "this Agreement"
or "this Note" or to the words "hereunder" or "herein" or words of like import shall mean and be
a reference to such Loan Document, as and to the extent amended by this Amendment.

 

9.Breach
of Amendment. A breach of any representation, warranty or covenant herein shall constitute an Event of Default.

 

10.Release
of Claims. To induce Lender to enter into this Amendment, Borrower hereby releases,
acquits and forever discharges Lender, and all officers, directors, agents, employees, successors and assigns of Lender,
from any and all liabilities, claims, demands, actions or causes of action of any kind or nature (if there be any), whether absolute
or contingent, disputed or undisputed, at law or in equity, or known or unknown, that Borrower now has or ever had against Lender
arising under or in connection with any of the Loan Documents or otherwise. Borrower represents and warrants to Lender that Borrower
has not transferred or assigned to any Person any claim that Borrower ever had or claimed to have against Lender.

 

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11.Effectiveness;
Governing Law. This Amendment shall be effective upon acceptance by Lender in Alpharetta, Georgia (notice of which acceptance
is hereby waived), whereupon the same shall be governed by and construed in accordance with the internal laws of the State of Georgia.

 

12.No Novation,
Etc. Except as otherwise expressly provided in this Amendment, nothing herein shall be deemed to amend or modify any provision
of the Loan Agreement, the Note or any of the other Loan Documents, each of which shall remain in full force and effect. This Amendment
is not intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the Loan Agreement as herein
modified shall continue in full force and effect.

 

13.Successors
and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

14.Further
Assurances. Borrower agrees to take such further actions as Lender shall reasonably request from time to time in connection
herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated hereby.

 

15.Miscellaneous.
This Amendment may be executed in any number of counterparts and by different parties to this Amendment on separate counterparts,
each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement.
Any manually executed signature page to this Amendment delivered by a party by facsimile or other electronic transmission shall
be deemed to be an original signature hereto. Section titles and references used in this Amendment shall be without substantive
meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto. This Amendment expresses
the entire understanding of the parties with respect to the subject matter hereof and may not be amended except in a writing signed
by the parties.

 

16.Waiver
of Jury Trial. To the fullest extent permitted by applicable law, each party hereby waives the right to trial by jury
in any action, suit, counterclaim or proceeding arising out of or related to this Amendment.

  

 

BALANCE OF PAGE INTENTIONALLY LEFT BLANK

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to be duly executed and delivered by their respective duly authorized officers on the date first written above.

 

	BORROWER:	 	 
	 	 	 
	JANEL WORLD TRADE, LTD. 	 	THE JANEL GROUP OF LOS ANGELES, INC.
	 	 	 
	By: /s/ Ruth Werra	 	 	By: /s/ Ruth Werra	 
	Ruth Werra, Secretary	 	Ruth Werra, Secretary
	 	 	 
	THE JANEL GROUP OF NEW YORK, INC. 	 	JANEL FERRARA LOGISTICS, LLC
	 	 	 
	By: /s/ Ruth Werra	 	 	By: /s/ Ruth Werra	 
	Ruth Werra, Secretary	 	  Ruth Werra, Secretary
	 	 	 
	THE JANEL GROUP OF ILLINOIS, INC	 	ALPHA INTERNATIONAL, LP
	 	 	 
	By: /s/ Ruth Werra	 	 	By: Janel Alpha GP LLC, G.P.
	           Ruth Werra, Secretary	 	By: Janel World Trade Ltd.
	 	 	 
	 	 	By: /s/ Ruth Werra	 
	 	 	Ruth Werra, Secretary
	 	 	 
	THE JANEL GROUP OF GEORGIA, INC	 	PCL TRANSPORT, LLC
	 	 	 
	By: /s/ Ruth Werra	 	 	By: Janel World Trade Ltd, Managing Member
	Ruth Werra, Secretary	 	 
	 	 	By: /s/ Ruth Werra	 
	 	 	Ruth Werra, Secretary
	 	 	 

  

STATE OF _________________

 

COUNTY OF _________________

 

Personally appeared before me, the undersigned attesting officer
duly authorized to administer oaths, Ruth Werra, who, having satisfactorily proved herself to be the person who signed the
within and foregoing Amendment, stated that she did so as his free and voluntary act and deed, this ____ day of October, 2014.

 

	 
	Notary Public                 	Seal

My Commission Expires: ___________________

 

	 	Accepted:
	 	 	 
	 	Presidential Financial Corporation
	 	 ("Lender")
	 	 
	 	By: 	 /s/ Frank Palmier	 
	 	 	Frank Palmieri, First Vice President

  

    	-4-

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