EXECUTIVE EMPLOYMENT AGREEMENT
This Employment Agreement (the “Agreement”) is made
and shall become effective on July 15, 2019 (the “Effective Date”),
|BETWEEN:||Xxxxxxx X. Xxxxxxx (the “Executive “), an individual
with a residential address at .
|AND:||MJ Holdings, Inc. (the “Company”), an entity
organized and existing under the laws of the State of Nevada, with its principal place of business located at 0000 X Xxxxx Xxxx.,
Xxx Xxxxx, XX 00000.
In consideration of the covenants and agreements herein contained
and the sums to be paid hereunder, the Company hereby employs the Executive and the Executive hereby agrees to perform services
as an Executive of the Company, upon the following terms and conditions:
The Company hereby employs Executive to serve as President and
to serve in such additional or different position or positions as the Company may determine in its sole discretion. The initial
term of employment shall be for a period of three (3) years from the date hereof (the “Employment Period”) until July
14, 2022, unless extended or otherwise terminated as set forth herein.
The effective date of this Agreement shall be the date first
set forth above, and it shall continue in effect until the earlier of:
|A.||The effective date of any subsequent employment agreement between the Company and the Executive;|
|B.||The effective date of any termination of employment as provided elsewhere herein; or|
|C.||Three (3) years from the effective date hereof, provided, that this Employment Agreement shall automatically renew for successive
periods of three (3) years each unless either party gives written notice to other that it does not wish to automatically renew
this Agreement, which written notice must be received by the other party no less than ninety (90) days and no more than one hundred
eighty (180) days prior to the expiration of the applicable term.|
|2.||Duties and Responsibilities|
Executive will be reporting to the Chief Executive Officer and
the Board of Directors. Within the limitations established by the By-laws of the Company, the Executive shall have each and all
of the duties and responsibilities of that position and such other or different duties on behalf of the Company, as may be assigned
from time to time by the Board of Directors.
Executive shall fulfil the role of President of the Corporation.
Duties of the President include, but are not limited to, working directly with the Chief Executive Officer (“CEO”)
on strategic and operational initiatives, working directly with the Chief Financial Officer (“CFO”) and the Chief Administrative
Officer on developing operating budgets and implementing delivery timelines. Oversight of the day to day operations of the Company’s
operating divisions and business units and such other duties are customarily the responsibility of the President.
The initial principal location at which
Executive shall perform services for the Company shall be 0000 X Xxxxx Xxxx., Xxx Xxxxx, XX 00000.
|4.||Acceptance of Employment |
Executive accepts employment with the Company upon the terms
set forth above and agrees to devote all Executive’s time, energy and ability to the interests of the Company, and to perform
Executive’s duties in an efficient, trustworthy and business-like manner.
|5.||Devotion of Time to Employment |
The Executive shall devote the Executive’s best efforts and
substantially all of the Executive’s working time to performing the duties on behalf of the Company. The Executive shall provide
services during the normal business hours of the Company as determined by the Company. Reasonable amounts of time may be allotted
to personal or charitable and professional activities and shall not constitute a violation of this Agreement provided such activities
do not materially interfere with the services required to be rendered hereunder.
The Executive shall, as a condition of this Agreement, satisfy
all of the qualification that are reasonably and in good faith established by the Board of Directors, including:
Executive shall be paid a base salary (“Base
Salary”) at the annual rate of $180,000.00, payable in equal monthly installments of $15,000.00 consistent with Company’s
payroll practices commencing on July 15, 2018. The annual Base Salary shall be reviewed on or before May 31st of each year by the
Compensation Committee of the Company to determine if such Base Salary should be increased for the following year in recognition
of Executive’s services to the Company. In consideration of the services under this Agreement, Executive shall be paid the
aggregate of basic compensation, bonus and benefits as hereinafter set forth.
Notwithstanding the foregoing Executive shall defer
$5,000.00 per month of any salary due under this Employment Agreement (collectively, the “Deferred Compensation”) until
such time as MJH has either:
|a)||Generated a minimum of $20,000,000 of gross annualized sales. or $5,000,000 in gross profit (“Profit”),
which shall be defined as gross revenues minus cost of goods sold, whichever shall occur first; or|
|b)||secured a cumulative total of $22,500,000 or more of equity or debt financing. Cumulative total
shall mean all sums received by MJH on or after December 15, 2017 from the sale of the Company’s common or preferred stock
or any long-term or convertible notes.|
Upon the happening of either of the foregoing,
Company shall cause to be paid to Executive any then accrued Deferred Compensation in twelve (12) equal monthly payments. At Executive’s
sole option, the Executive may elect to receive any deferred salary in the form of shares of the Company’s common stock (“Common
Stock”) at a per share price equal to the volume weighted average price (“VWAP”) for the 30 day period immediately
preceding the election by Executive to receive such deferred compensation in the form of Common Stock. However, in no event shall
such deferment extend beyond January 15, 2020.
Payment of all compensation to Executive hereunder
shall be made in accordance with the relevant Company policies in effect from time to time, including normal payroll practices.
From time to time, the Company may pay to Executive
a bonus out of net revenues of the Company. Payment of any bonus compensation shall be at the sole discretion of the Board of Directors
or the Compensation Committee of the Company and the Executive shall have no entitlement to such amount absent a decision by the
Company as aforesaid to make such bonus compensation. At the sole discretion of Company bonus compensation may be paid either in
the form of cash or common stock of the Company, or any combination thereof, provided that there be sufficient cash compensation
to pay any taxes due on the stock compensation component of any bonus hereunder.
The Company, upon adoption of and pursuant to an omnibus
benefit plan (the “Omnibus Plan”), shall cause to be granted to Executive all benefits that other Executives of the
Company are entitled to pursuant to the terms set forth in paragraph 7 herein below including, but not limited to (i) medical,
dental and vision plan; and (ii) life and disability insurance plans; and (iii) retirement and profit sharing programs as offered
to other Executives of the Company, including any restricted stock unit plan (“RSU”), any restricted stock award plan
(“RSA”), any stock appreciation Rights (“SAR’s”), any incentive stock option plan (“ISO”),
any employee stock option plan (“ESOP”) or employee stock purchase plan (“ESPP”) that may be implemented
by Company (iv) paid holidays as per the Company’s policies, and (v) such other benefits and perquisites as are approved
by the Board of Directors. The Company has the right to modify conditions of participation, terminate any benefit, or change insurance
plans and other providers of such benefits in its sole discretion.
In the event a deduction shall be disallowed by the
Internal Revenue Service or a court of competent jurisdiction for federal income tax purposes for all or any part of the payment
made to Executive by the Company or any other shareholder or Executive of the Company, shall be required by the Internal Revenue
Service to pay a deficiency on account of such disallowance, then Executive shall repay to the Company or such other individual
required to make such payment, an amount equal to the tax imposed on the disallowed portion of such payment, plus any and all interest
and penalties paid with respect thereto. The Company or other party required to make payment shall not be required to defend any
proposed disallowance or other action by the Internal Revenue Service or any other state, federal, or local taxing authorities.
All sums payable to Executive under this Agreement
will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law.
|8.||Other Employment BenefitS|
Upon submission of itemized expense statements in the
manner specified by the Company, Executive shall be entitled to reimbursement for reasonable travel and other reasonable business
expenses duly incurred by Executive in the performance of his duties under this Agreement.
Executive shall be entitled to participate in the Company’s
medical and dental plans, life and disability insurance plans and retirement plans pursuant to their terms and conditions. Executive
shall be entitled to participate in any other benefit plan offered by the Company to its Executives during the term of this Agreement
(other than stock option or stock incentive plans, which are governed by Section 8.4. below). Nothing in this Agreement shall preclude
the Company or any affiliate of the Company from terminating or amending any Executive benefit plan or program from time to time.
Executive shall be entitled to four (4) weeks of paid
vacation each year of full employment, exclusive of legal holidays, as long as the scheduling of Executive’s vacation does
not interfere with the Company’s normal business operations.
Executive shall be entitled to acquire four hundred
thousand (400,000) restricted shares of the Common Stock of the Company pursuant to the terms of any Company adopted Stock Compensation
Plan subject to the following terms:
|8.4.1||The Stock Agreement shall contain all of the material terms
required by the Omnibus Plan and shall clearly state the issuance of any stock grants, stock options or any other stock-based
compensation and shall include the stock vesting schedule and shall be in accordance with all applicable securities laws and the
other terms and conditions of the Company’s duly adopted Stock Plans.
|8.4.2||The employee shall be eligible to participate in any Executive Stock Option Plan (“ESOP”) or Executive Stock Purchase
|8.4.3||The issuance of any Restricted Stock Units (“RSU”), Restricted Stock Awards (“RSA”) or Incentive Stock
Options (“ISO”) shall be solely at the discretion of the Compensation Committee and Board of Directors.|
|8.4.4||The Common Stock to be issued hereunder shall vest as follows:|
|a)||100,000 shares shall vest on the date that is six months after the effective date of this Agreement|
|b)||100,000 shares shall vest on the date that is one year after the effective date of this Agreement|
|c)||100,000 shares shall vest on the date that is two years after the effective date of this Agreement|
|d)||100,000 shares shall vest on the date that is three years after the effective date of this Agreement|
At the sole option of the Executive, the Executive
may elect to make an Internal Revenue Code Section 83(b) election on all or part of the Common Stock granted hereunder. For the
purposes of this Agreement the present Fair Market Value (“FMV”) of the Common Stock shall be equal to the volume weighted
average price (“VWAP”) as published by OTC Markets on June 14, 2019. Alternatively, the Executive may elect to receive
the Common Stock in the form of stock options (“Options”) the exercise price of such option shall be the lesser of
the VWAP as published by OTC Markets on June 14, 2019 or the VWAP as published by OTC Markets on July 12, 2019. Notwithstanding
the foregoing any election hereunder must be made on or before July 15, 2019, otherwise all shares granted hereunder shall be equal
to the FMV on the vesting date which shall equal the VWAP as published by OTC Markets on the Friday immediately preceding the vesting
|9.||POLICIES AND PROCEDURES|
The Company shall have the authority to establish from
time to time the policies and procedures to be followed by the Executive in performing services for the Company. Executive shall
abide by the provisions of any contract entered into by the Company under which the Executive provides services. Executive shall
comply with the terms and conditions of any and all contracts entered by the Company.
|10.||Termination of Employment|
Notwithstanding anything herein to the contrary,
the Company may terminate Executive’s employment hereunder for cause for any one of the following reasons: 1) conviction
of a felony, any act involving moral turpitude, or a misdemeanor where imprisonment is imposed, 2) commission of any act of
theft, fraud, dishonesty, or falsification of any employment or Company records, 3) improper disclosure of the Company’s
confidential or proprietary information, 4) any action by the Executive which has a detrimental effect on the Company’s
reputation or business, 5) Executive’s failure or inability to perform any reasonable assigned duties after written
notice from the Company of, and a reasonable opportunity to cure, such failure or inability, 6) any breach of this Agreement,
which breach is not cured within thirty (30) days following written notice of such breach, 7) a course of conduct amounting
to gross incompetence, 8) chronic and unexcused absenteeism, 9) unlawful appropriation of a corporate opportunity, or
10) misconduct in connection with the performance of any of Executive’s duties, including, without limitation, misappropriation
of funds or property of the Company, securing or attempting to secure personally any profit in connection with any transaction
entered into on behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on Company premises
or to which the Company is subject. Upon termination of Executive’s employment with the Company for cause, the Company shall
be under no further obligation to Executive, except to pay all accrued but unpaid base salary and accrued vacation to the date
of termination thereof.
The Company may terminate Executive’s employment
hereunder at any time without cause, provided, however, that Executive shall be entitled to severance pay in the amount of 8 weeks
of Base Salary for each year of service with the Company on a pro-rata basis, in addition to accrued but unpaid Base Salary and
accrued vacation, less deductions required by law, acceleration of any unvested stock grants or stock options, but if, and only
if, Executive executes a valid and comprehensive release of any and all claims that the Executive may have against the Company
in a form provided by the Company and Executive executes such form within seven (7) days of tender.
Upon termination of employment, Executive shall
forfeit any unvested stock grants or stock options and shall be deemed to have resigned from the Board of Directors of the Company
if he is then a director.
After notice of termination, Executive shall cooperate
with the Company, as reasonably requested by the Company, to effect a transition of Executive’s responsibilities and to ensure
that the Company is aware of all matters being handled by Executive.
Compensation After Notice of Termination
After notice of termination has been given by either
Company or Executive, as provided in this Article, Executive shall be entitled to receive the compensation provided for in this
Agreement until the notice period has expired. It is understood that after the written notice is given by either Company or Executive,
Executive shall continue to devote substantially all of the Executive’s time to the Executive’s normal services for the Company
during the notice period, with sufficient time allowed, in the sole discretion of the Company, for Executive to seek new employment.
10.1 through 10.5 the
parties hereto understand and agree that the Executive’s employment with the Company is at-will and Company may terminate
Executive’s employment at anytime and for any reason during the first ninety (90) days hereof and that Executive shall not
be entitled to any cash compensation, stock compensation or any other benefits of any kind unless otherwise vested with the Executive
prior to such termination.
|11.||DISABILITY OF EXECUTIVE|
The Company may terminate this Agreement without liability if
Executive shall be permanently prevented from properly performing his essential duties hereunder with reasonable accommodation
by reason of illness or other physical or mental incapacity for a period of more than thirty (30) consecutive days. Upon such termination,
Executive shall be entitled to all accrued but unpaid Base Salary and vacation.
For purposes of this Agreement, whenever
used in this Article 14:
“Total disability” shall mean that the
Executive is unable, mentally or physically, whether it be due to sickness, accident, age or other infirmity, to engage in any
aspect of the Executive’s normal duties as set forth in this Agreement.
“Partial disability” shall mean that the
Executive is able to perform, to some extent, on behalf of the Company, the particular services in which the Company specializes,
and which the Executive previously performed for the Company, but that the Executive is unable, mentally or physically, to devote
the same amount of time to such services as was devoted prior to the occurrence of such sickness or accident.
“Normal monthly salary” shall mean the
salary which the Executive is being paid by the Company per month as of the commencement date of the period of disability, as specified
hereinabove or as determined by the Board of Directors pursuant to the terms hereof.
During a single period of total disability of the
Executive, the Executive shall be entitled to receive from the Company, the Executive’s normal monthly salary for the shorter of
first three (3) months of disability or until any disability insurance policy available through the Executive’s employment
begins to pay benefits. If the single period of disability should continue beyond three (3) months, the Executive shall receive
only such amount as the Executive shall be entitled to receive under disability insurance coverage on the Executive, if any.
During a period of partial disability of the Executive,
the Executive shall receive an amount of compensation computed as follows:
That portion of the Executive’s normal monthly basic
compensation which bears the same ratio to the Executive’s normal monthly basic compensation as the amount of time which the Executive
is able to devote to the usual performance of services on behalf of the Company during such period bears to the total time the
Executive devoted to performing such services prior to the commencement date of the single period of disability, and
Such amount shall be calculated by multiplying the
Executive’s basic compensation by a fraction, the numerator of which shall be the percentage of normal services that the
Executive is able to perform and the denominator which shall be the total services that the Executive is able to perform absent
the partial disability.
11.4 Combination of Total and Partial Disability
If a single period of disability of the Executive
consists of a combination of total disability and partial disability, the maximum total disability compensation to which the Executive
shall be entitled from the Company under this disability provision shall not exceed an amount equal to one (1) times the Executive’s
normal monthly basic compensation.
11.5 Broken Periods of Disability
A period of disability may be continuous or broken.
If broken into partial periods of disability which are separated by intervening periods of work, there shall be aggregated together
all of such successive partial periods of disability except any period prior to the time when any single period of work extends
for six months or longer; and such aggregated periods of disability shall be treated as a single period in determining the amount
of disability compensation to which an Executive shall be entitled under any provision of this Section.
11.6 Termination Due to Disability
If and when the period of total or partial disability
of the Executive totals six months, the Executive’s employment with the Company shall automatically terminate. Notwithstanding
the foregoing, if the disabled Executive and the Company agree, the disabled Executive may thereafter be employed by the Company
upon such terms as may be mutually agreeable.
11.7 Commencement Date of Disability
The commencement date of a period of disability,
whether it be a continuous period or the aggregate of successive partial periods, shall be the first day on which the Executive
11.8 Dispute Regarding Existence of Disability
Any dispute regarding the existence, extent or continuance
of the disability shall be resolved by the determination of a majority of three (3) competent physicians, one (1) of whom shall
be selected by the Company, one (1) of whom shall be selected by the Executive and the third (3rd) of whom shall be selected by
the other two (2) physicians so selected.
11.9 Death of Executive
In the event the Executive shall die during the term
hereof, the Company shall pay to the Executive’s surviving spouse, or if the Executive shall leave no surviving spouse, then to
the Executive’s estate, only such amounts as may have been earned by the Executive prior to the Executive’s date of death, but
which were unpaid at date of death.
|12.||Confidential Information |
Executive recognizes and acknowledges that all records with
respect to clients, business associates, customer or referral lists, contracting parties and referral sources of the Company, and
all personal, financial and business and proprietary information of the Company, its Executives, officers, directors and shareholders
obtained by the Executive during the term of this Agreement and not generally known in the public (the “Confidential Information”)
are valuable, special and unique and proprietary assets of the Company’s business. The Executive hereby agrees that during the
term of this Agreement and following the termination of this Agreement, whether the termination shall be voluntary or involuntary,
or with or without cause, or whether the termination is solely due to the expiration of the term of this Agreement, the Executive
will not at any time, directly or indirectly, disclose any Confidential Information, in full or in part, in written or other form,
to any person, firm, Company, association or other entity, or utilize the same for any reason or purpose whatsoever other than
for the benefit of and pursuant to authorization granted by the Company. “Confidential Information” shall also include
any information (including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program,
a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential
customers) that: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable
by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. In the case of Company’s business, Company’s Trade Secrets
include (without limitation) information regarding names and addresses of any customers, sales personnel, account invoices, training
and educational manuals, administrative manuals, prospective customer leads, in whatever form, whether or not computer or electronically
During employment with the Company, Executive will not do anything
to compete with the Company’s present or contemplated business, nor will he or she plan or organize any competitive business
activity. Executive will not enter into any agreement which conflicts with his duties or obligations to the Company. Executive
will not during his employment or within one (1) year after it ends, without the Company’s express written consent, directly
or indirectly, solicit or encourage any Executive, agent, independent contractor, supplier, customer, consultant or any other person
or company to terminate or alter a relationship with the Company.
The Executive agrees that during the Executive’s employment
with the Company and for a period of one (1) year following the termination of this Agreement, whether the termination shall be
voluntary or involuntary, or with or without cause, or whether the termination is solely due to the expiration of the term of this
Agreement, the Executive will not attempt to hire any other Executive or independent contractor of the Company or otherwise encourage
or attempt to encourage any other Executive or independent contractor of the Company to leave the Company’s employ.
|15.||Assignment and Transfer |
Executive’s rights and obligations under this Agreement
shall not be transferable by assignment or otherwise, and any purported assignment, transfer or delegation thereof shall be void.
This Agreement shall inure to the benefit of, and be binding upon and enforceable by, any purchaser of substantially all of Company’s
assets, any corporate successor to Company or any assignee thereof.
|16.||No Inconsistent Obligations |
Executive is aware of no obligations, legal or otherwise, inconsistent
with the terms of this Agreement or with his undertaking employment with the Company. Executive will not disclose to the Company,
or use, or induce the Company to use, any proprietary information or trade secrets of others. Executive represents and warrants
that he or she has returned all property and confidential information belonging to all prior employers.
The parties hereto agree that, in the event of breach or threatened
breach of any covenants of Executive, the damage or imminent damage to the value and the goodwill of the Company’s business
shall be inestimable, and that therefore any remedy at law or in damages shall be inadequate. Accordingly, the parties hereto agree
that the Company shall be entitled to injunctive relief against Executive in the event of any breach or threatened breach of any
of such provisions by Executive, in addition to any other relief (including damages) available to the Company under this Agreement
or under law. The prevailing party in any action instituted pursuant to this Agreement shall be entitled to recover from the other
party its reasonable attorneys’ fees and other expenses incurred in such action.
In the event that either party is required to engage the services
of legal counsel to enforce the terms and conditions of this Agreement against the other party, regardless of whether such action
results in litigation, the prevailing party shall be entitled to reasonable attorneys’ fees, costs of legal assistants, and other
costs from the other party, which shall include any fees or costs incurred at trial or in any appellate proceeding, and expenses
and other costs, including any accounting expenses incurred.
This Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada without regard to conflict of law principles.
This Agreement may be amended only by a writing signed by Executive
and by a duly authorized representative of the Company.
If any term, provision, covenant or condition of this Agreement,
or the application thereof to any person, place or circumstance, shall be held to be invalid, unenforceable or void, the remainder
of this Agreement and such term, provision, covenant or condition as applied to other persons, places and circumstances shall remain
in full force and effect.
The headings and captions of this Agreement are provided for
convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts of
this Agreement shall be in all cases construed according to its fair meaning and not strictly for or against the Company or Executive.
The rights and remedies provided by this Agreement are cumulative,
and the exercise of any right or remedy by either party hereto (or by its successor), whether pursuant to this Agreement, to any
other agreement, or to law, shall not preclude or waive its right to exercise any or all other rights and remedies.
No failure or neglect of either party hereto in any instance
to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege
or of the same right, power or privilege in any other instance. All waivers by either party hereto must be contained in a written
instrument signed by the party to be charged and, in the case of the Company, by an officer of the Company (other than Executive)
or other person duly authorized by the Company.
Any and all notices or other communication provided for herein,
shall be given by registered or certified mail, return receipt requested, in case of the Company to its principal office, and in
the case of the Executive to the Executive’s residence address set forth on the first page of this Agreement or to such other address
as may be designated by the Executive.
|25.||Assistance in Litigation |
Executive shall, during and after termination of employment,
upon reasonable notice, furnish such information and proper assistance to the Company as may reasonably be required by the Company
in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become a party; provided, however,
that such assistance following termination shall be furnished at mutually agreeable times and for mutually agreeable compensation.
The Executive further agrees that during the term of this Agreement
and for a period of two (2) years following the termination of this Agreement, whether the termination shall be voluntary or involuntary,
or with or without cause, or whether the termination is solely due to the expiration of the term of this Agreement, the Executive
will not, in any manner or at any time, solicit or encourage any person, firm, Company or other business entity who are clients,
business associates or referral sources of the Company to cease doing business with the Company or to do business with the Executive.
Each restrictive covenant on the part of the Executive set forth
in this Agreement shall be construed as a covenant independent of any other covenant or provisions of this Agreement or any other
agreement which the Company and the Executive may have, fully performed and not executory, and the existence of any claim or cause
of action by the Executive against the Company whether predicated upon another covenant or provision of this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of any other covenant.
|28.||Injunctive and Equitable Relief |
Executive and Company recognize and expressly agree that the
extent of damages to Company in the event of a breach by Executive of any restrictive covenant set forth herein would be impossible
to ascertain, that the irreparable harm arising out of any breach shall be irrefutably presumed, and that the remedy at law for
any breach will be inadequate to compensate the Company. Consequently, the Executive agrees that in the event of a breach of any
such covenant, in addition to any other relief to which Company may be entitled, Company shall be entitled to enforce the covenant
by injunctive or other equitable relief ordered by a court of competent jurisdiction.
29.1 The Executive
hereby agrees to indemnify and hold the Company and its officers, directors, shareholders and Executives harmless from and against
any loss, claim, damage or expense, and/or all costs of prosecution or defense of their rights hereunder, whether in judicial proceedings,
including appellate proceedings, or whether out of court, including without limiting the generality of the foregoing, attorneys’
fees, and all costs and expenses of litigation, arising from or growing out of the Executive’s breach or threatened breach of any
covenant contained herein.
29.2 Company will receive
indemnification as an Officer and/or Director of the Company to the maximum extent extended by Nevada law to officers and directors
of the Company, generally, as set forth in the Company’s Articles of Incorporation, bylaws, and an indemnification agreement
between the Company and you (which will be provided to you upon the Effective Date) and any director and officer insurance the
Company may have and maintain from time to time.
The Executive acknowledges that when this Agreement is concluded,
the Executive will be able to earn a living without violating the foregoing restrictions and that the Executive’s recognition and
representation of this fact is a material inducement to the execution of this Agreement and to Executive’s continued relationship
with the Company.
All restrictive covenants contained in this Agreement shall
survive the termination of this Agreement.
|32.||Limitations on Authority |
Without the express written consent from the Company, the Executive
shall have no apparent or implied authority to: (i) Pledge the credit of the Company or any of its other Executives; (ii) Bind
the Company under any contract, agreement, note, mortgage or otherwise; (iii) Release or discharge any debt due the Company unless
the Company has received the full amount thereof; or (iv) sell, mortgage, transfer or otherwise dispose of any assets of the Company.
|33.||Representation and Warranty of Executive|
The Executive acknowledges and understands that the Company
has extended employment opportunities to Executive based upon Executive’s representation and warranty that Executive is in good
health and able to perform the work contemplated by this Agreement for the term hereof.
|34.||Invalid Provision; Severability |
The invalidity or unenforceability of a particular provision
of this Agreement shall not affect the other provisions hereof, and the Agreement shall be construed in all respects as if such
invalid or unenforceable provisions were omitted.
No change or modification of this Agreement shall be valid unless
the same be in writing and signed by the parties hereto.
This Agreement contains the entire agreement and supersedes
all prior agreements and understandings, oral or written, with respect to the subject matter hereof. This Agreement may be changed
only by an agreement in writing signed by the party against whom any waiver, change, amendment, modification, or discharge is sought.
Any controversy, claim or dispute arising out of or relating
to this Agreement or the employment relationship, either during the existence of the employment relationship or afterwards, between
the parties hereto, their assignees, their affiliates, their attorneys, or agents, shall be settled by arbitration in Las Vegas,
NV. Such arbitration shall be conducted in accordance with the then prevailing commercial arbitration rules of the American Arbitration
Association (but the arbitration shall be in front of an arbitrator, with the following exceptions if in conflict: (a) one
arbitrator shall be chosen by All American Beverage Corporation; (b) each party to the arbitration will pay its pro rata share
of the expenses and fees of the arbitrator(s), together with other expenses of the arbitration incurred or approved by the arbitrator(s);
and (c) arbitration may proceed in the absence of any party if written notice of the proceedings has been given to such party.
The parties agree to abide by all decisions and awards rendered in such proceedings. Such decisions and awards rendered by the
arbitrator shall be final and conclusive and may be entered in any court having jurisdiction thereof as a basis of judgment and
of the issuance of execution for its collection. All such controversies claims or disputes shall be settled in this manner in lieu
of any action at law or equity; provided however, that nothing in this subsection shall be construed as precluding the Company
from bringing an action for injunctive relief or other equitable relief or relief under the Confidential Information and Invention
Assignment Agreement. The arbitrator shall not have the right to award punitive damages, consequential damages, lost profits or
speculative damages to either party. The parties shall keep confidential the existence of the claim, controversy or disputes from
third parties (other than the arbitrator), and the determination thereof, unless otherwise required by law or necessary for the
business of the Company. The arbitrator(s) shall be required to follow applicable law.
IF FOR ANY REASON THIS ARBITRATION CLAUSE BECOMES NOT APPLICABLE,
THEN EACH PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO
ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
MATTER INVOLVING THE PARTIES HERETO.
In witness hereof,
each party to this Agreement has caused it to be executed on the date indicated below.
|XXXXXXX X. XXXXXXX - EXECUTIVE
||MJ HOLDINGS, INC. - COMPANY|
Xxxxxxx X. Xxxxxxx
||/S/ Xxxxx Xxxxxxxxx|
||Xxxxx Xxxxxxxxx, Chief Executive Officer|