Exhibit
10.1


 


EMPLOYMENT
AGREEMENT


 


[Kelly]


 


This
Employment Agreement (the “Agreement”) is made as of the date signed (the “Effective Date”),
by and between MJ Holdings Inc., a Nevada corporation (the “Employer”) and Jim Kelly (the “Employee”).
In consideration of the mutual covenants contained in this Agreement, Employer and Employee agree as follows:


 


1.
Employment. Employer agrees to employ Employee and Employee agrees to be employed by Employer on the terms and conditions
set forth in this Agreement.


 


2.
Position, Duties, Reporting.


 


(a)
Position: Interim CFO.


(b)
Reporting: to the Interim CEO and Chief Cultivation Officer (the “C-Suite”) of Employer or its designee.


 


		a.	(c)
                                         Duties: Employee shall perform the duties and responsibilities of the Interim CFO for
                                         Employer subject to the direction of the C-Suite , or its designee, and such other responsibilities
                                         and duties performed by an Interim CFO of corporations of the size, type and nature of
                                         Employer, as it exists from time to time, and as may from time to time be reasonably
                                         assigned by the C-Suite and with a particular focus on assisting C-Suite and Employer’s
                                         SEC Consultant with bringing Company compliant with U.S. Securities and Exchange Commission
                                         requirements regarding filing of its Form 10-K, Form 10-Q’s and Form 8-K’s,
                                         et seq., through Q1 2021 and assisting and directing Secretary (Moyle) and the accounting
                                         team (both internal and at Thirty Eight Street, Inc.) in bringing the books and records
                                         of Employer into compliance with both GAAP and as necessary for SEC compliance and thereafter
                                         to assist in the search, interview and hiring of a full time replacement CFO. Employee
                                         shall devote his substantial time, energy, skill and best efforts to the business and
                                         affairs of Employer. Employee acknowledges and agrees that he or she shall observe and
                                         comply with all of the Company’s policies.



 


3.
Term. The term of this Agreement (the “Term”) shall be for a period of the sooner of six (6) months
as Interim CFO or until the above referenced U.S. SEC compliance is achieved and thereafter in order to achieve a smooth transition
to a new CFO. During which entire time Employee shall be considered an at-will employee of Employer and, subject to the provisions
of Section 6, the employment relationship described herein may be terminated by either Employee or Employer at any time. Upon
the expiration of the Term, the Employee may continue to be employed by the Employer at the will of the parties.


 


4.
Compensation and Benefits. The regular compensation and benefits payable to Employee under this Agreement shall be as follows:


 


	 	(a)	Base
    Salary. During the term of this Agreement, for all services rendered by Employee under this Agreement, Employer shall
    pay Employee a base salary at the annual rate of $24,000. The base salary shall be payable in accordance with Employer’s
    usual practice for its senior Employees, subject to any applicable tax and payroll deductions,
	 	 	 
	 	(b)	Bonus.
    In addition to his Base Salary, Executive shall be eligible to receive a discretionary bonus (the “Bonus”)
    at the end of the Term, based on performance criteria determined by C-Suite in its sole discretion, in an amount equal to
    up to 400% of Employee’s base salary.
	 	 	 
	 	(c)	Stock
    Grant. In addition to his Base Salary, Executive shall receive a stock grant at the commencement of the Term, in the amount
    of 500,000 shares of restricted stock in Company. 


 










    	 



     


    

 


(d)
This Agreement and the issuance and grant of the shares hereunder is made by Employer in reliance upon the express representations
and warranties of Employee, which by acceptance hereof, Employee confirms that:


 


(i)
The shares of common stock issued or issuable (collectively, the “Securities”) granted to Employee pursuant
to this Agreement are being acquired by Employee for his own account, for investment purposes, and not with a view to, or for
sale in connection with, any distribution of the Securities. It is understood that the Securities have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”) by reason of exemption from the registration
provisions of the Securities Act which depends, among other things, upon the bona fide nature of his representations as expressed
herein;


 


(ii)
The Securities must be held by Employee indefinitely unless they are subsequently registered under the Securities Act and any
applicable state securities laws, or an exemption from such registration is available. Employer is under no obligation to register
the Securities or to make available any such exemption;


 


(iii)
Employee further represents that Employee has had access to the financial statements or books and records of Employer, has had
the opportunity to ask questions of Employer concerning its business, operations and financial condition and to obtain additional
information reasonably necessary to verify the accuracy of such information;


 


(iv)
Unless and until the Securities are registered under the Securities Act, all certificates representing the Securities and any
certificates subsequently issued in substitution therefore and any certificate for any securities issued pursuant to any stock
split, share reclassification, stock dividend or other similar capital event shall bear legends in substantially the following
form:


 


THESE
SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”)
OR UNDER THE APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED,
PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE SECURITIES LAWS OF
ANY STATE, UNLESS PURSUANT TO EXEMPTIONS THEREFROM.


 


(d)
Regular Benefits. Employee shall be entitled to health insurance benefits from Employer, and shall also be entitled to
participate in any employee benefit plans, life insurance plans, disability income plans, retirement plans, expense reimbursement
plans and other benefit plans which Employer may from time to time have in effect for all or most of its employees. Participation
in any Employer benefit plan shall be subject to the terms of the applicable plan documents, generally applicable policies of
Employer, applicable law and the discretion of the Board, or any administrative or other committee provided for in or contemplated
by any such plan. Except with respect to the aforementioned health insurance benefits, nothing contained in this Agreement shall
be construed to create any obligation on the part of Employer to establish any such plan or to maintain the effectiveness of any
such plan which may be in effect from time to time.


 


(e)
Vacation. Employee shall be entitled to zero (0) weeks paid time off per year, such vacation leave to be taken in accordance
with Employer’s standard employee vacation policy, and at such time or times as will not unreasonably hinder or interfere
with Employer’s business or operations.


 


(f)
Taxation of Payments and Benefits. Employer shall undertake to make deductions, withholdings and tax reports with respect
to payments and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is required
to make such deductions, withholdings and tax reports. Payments under this Agreement shall be in amounts net of any such deductions
or withholdings. Nothing in this Agreement shall be construed to require Employer to make any payments to compensate Employee
for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.


 


(g)
Expenses. Employer shall reimburse Employee for all reasonable and necessary business-related out-of-pocket expenses incurred
or paid by Employee in performing his duties under this Agreement and that are consistent with applicable policies of Employer
and immediate manager. All payments for reimbursement of such expenses shall be made upon presentation by Employee of expense
statements or vouchers and such other supporting information as Employer may from time to time reasonably request.


 




    	 



     


    

 


(h)
Exclusivity of Salary and Benefits. Employee shall not be entitled to any payments or benefits other than those provided
under this Agreement.


 


5.
Extent of Service.


 


(a)
During Employee’s employment under this Agreement, Employee shall devote Employee’s substantial business time, best
efforts and business judgment, skill and knowledge to the advancement of Employer’s interests and to the discharge of Employee’s
duties and responsibilities under this Agreement. Nothing in this Agreement shall be construed as preventing Employee from:


 


(i)
investing Employee’s assets in any company or other entity in a manner not prohibited by Section 7(d) and in such form or
manner as shall not require any material activities on Employee’s part in connection with the operations or affairs of the
companies or other entities in which such investments are made; and


 


(ii)
engaging in religious, charitable or other community or non-profit activities that do not impair Employee’s ability to fulfill
Employee’s duties and responsibilities under this Agreement.


 


(b)
Employee shall cooperate with Employer in the event Employer wishes to obtain key-man insurance on Employee. Such cooperation
shall include, but not be limited to, taking any physical examinations that may be requested by the insurance company.


 


6.
Termination and Termination Benefits. (a) Unless otherwise specifically provided in this Agreement or otherwise required
by law, all compensation and benefits payable to Employee under this Agreement shall terminate on the date of termination of Employee’s
employment under this Agreement. Notwithstanding the foregoing, in the event of termination of Employee’s employment by
Employer without Cause (as defined below) or by Employee as a result of a material breach by Employer of any of Employer’s
obligations under this Agreement, or any other agreement to which Employee and Employer are now or hereafter parties, Employer
shall provide to Employee the following termination benefits (“Termination Benefits”):


 


(i)
continued periodic payment of Employee’s base salary at the rate then in effect pursuant to Section 4(a) for the period
from the date of termination until the date that is three (3) months after the date of termination; including that to the extent
that any sums are deferred and unpaid such sums shall be paid within fourteen (14) days of termination;


 


(ii)
if Employee is participating in Employer’s health insurance plan on the date of termination, continuation of group health
plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”),
with Employer paying the entire cost of the regular premium for such benefits for six (6) months after the date of termination;
and


 


(iii)
if Employee is participating in Employer’s life insurance and short term and long term disability insurance plans on the
date of termination, continuation of those benefits at Employer’s expense, for the period from the date of termination until
the date that is three (3) months after the date of termination.


 


Notwithstanding
the foregoing, nothing in this Section 6(a) shall be construed to affect Employee’s right to receive COBRA continuation
entirely at Employee’s own cost to the extent that Employee may continue to be entitled to COBRA continuation after Employee’s
right to cost sharing under Section 6(a)(ii) ceases.


 




    	 



     


    

 


For
purposes of this Agreement, the term “Cause” shall mean:


 


(i)
dishonest or fraudulent statements or acts of Employee with respect to Employer or any affiliate of Employer;


 


(ii)
Employee’s conviction of, or entry of a plea of guilty or nolo contendere for, (A) a felony or (B) any misdemeanor
(excluding minor traffic violations) involving moral turpitude, deceit, dishonesty or fraud;


 


(iii)
willful misconduct of Employee or the failure of Employee for any reason, within thirty (30) days after receipt by Employee of
written notice from the Board, to comply with reasonable specific instructions of the Board or requests of the Board for other
specific action or specific omission to act that in each case may adversely affect Employer’s business or operations; or


 


(iv)
material breach by Employee of any of Employee’s obligations under this Agreement, or any other agreement to which Employee
and Employer are now or hereafter parties.


 


(b)
Disability. If Employee shall be disabled so as to be unable to perform the essential functions of Employee’s then
existing position or positions under this Agreement with reasonable accommodation, the Board may remove Employee from any responsibilities
and/or reassign Employee to another position with Employer during the period of such disability. Notwithstanding any such removal
or reassignment, Employee shall continue to receive Employee’s full base salary (less any disability pay or sick pay benefits
to which Employee may be entitled under Employer’s policies) and benefits under Section 4 of this Agreement (except to the
extent that Employee may be ineligible for one or more such benefits under applicable plan terms) for a period of time equal to
twelve (12) months. If any question shall arise as to whether during any period Employee is disabled so as to be unable to perform
the essential functions of Employee’s then existing position or positions with reasonable accommodation, Employee may, and
at the request of Employer shall, submit to Employer a certification in reasonable detail by a physician selected by Employer
to whom Employee or Employee’s guardian has no reasonable objection as to whether Employee is so disabled or how long such
disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue.
Employee shall cooperate with any reasonable request of the physician in connection with such certification. If such question
shall arise and Employee shall fail to submit such certification, Employer’s determination of such issue shall be binding
on Employee. Nothing in this Section 6(b) shall be construed to waive Employee’s rights, if any, under existing law including,
without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities
Act, 42 U.S.C. §12101 et seq.


 


7.
Confidential Information, Noncompetition and Cooperation.


 


(a)
Confidential Information. As used in this Agreement, “Confidential Information” means information belonging
to Employer which is of value to Employer in the course of conducting its business and the disclosure of which could result in
a competitive or other disadvantage to Employer. Confidential Information includes, without limitation, financial information,
reports and forecasts; inventions, improvements and other intellectual property; trade secrets; know-how; designs, processes or
formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such
as possible acquisitions or dispositions of businesses or facilities) that have been developed for Employer, or discussed or considered
by the management of Employer and that have specific application to Employer. Confidential Information includes information developed
by Employee in the course of Employee’s employment by Employer, as well as other information to which Employee may have
access in connection with Employee’s employment. Confidential Information also includes the confidential information of
others with which Employer has a business relationship. Notwithstanding the foregoing, Confidential Information does not include
the following: information in the public domain, unless due to breach of Employee’s duties under Section 7(b); any of the
items listed in this section that were developed, possessed or created by Employee prior to the date of this Agreement; or any
designs, inventions and other intellectual property conceptualized by Employee during the period he is employed by Employer but
which are not directly related to Employer’s business operations.


 




    	 



     


    

 


(b)
Confidentiality. Employee understands and agrees that Employee’s employment creates a relationship of confidence
and trust between Employee and Employer with respect to all Confidential Information. At all times, both during Employee’s
employment with Employer and after its termination, Employee will keep in confidence and trust all such Confidential Information,
and will not use or disclose any such Confidential Information without the prior written consent of Employer, except as may be
necessary in the ordinary course of performing Employee’s duties to Employer.


 


(c)
Documents, Records, etc. All documents, records, data, apparatus, equipment and other physical property, whether or not
pertaining to Confidential Information, which are furnished to Employee by Employer or are produced by Employee in connection
with Employee’s employment will be and remain the sole property of Employer. Employee will return to Employer all such materials
and property as and when requested by Employer. In any event, Employee will return all such materials and property immediately
upon termination of Employee’s employment for any reason. Employee will not retain with Employee any such material or property
or any copies thereof after such termination. Notwithstanding the foregoing, Employee may retain after the termination of his
employment with Employer copies of his personal notes, diaries, journals, correspondence, expense accounts, communication logs,
business cards, contact lists, and other similar materials maintained by Employee.


 


(d)
Noncompetition and Nonsolicitation. Without the prior written consent of the Board, during the period that Employee is
employed by Employer and, in the event Employee terminates his employment with Employer for any reason other than as a result
of a material breach by Employer of any of Employer’s obligations under this Agreement, or any other agreement to which
Employee and Employer are now or hereafter parties, for one (1) year thereafter, Employee will not, directly or indirectly, whether
as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate, assist or invest in
any Competing Business (as hereinafter defined). Without the prior written consent of the Board, during the period that Employee
is employed by Employer and, (x) in the event of the termination of Employee’s employment by Employer with Cause or (y)
in the event Employee terminates his employment with Employer for any reason other than as a result of a material breach by Employer
of any of Employer’s obligations under this Agreement, or any other agreement to which Employee and Employer are now or
hereafter parties, for eighteen (18) months thereafter, Employee will refrain from directly or indirectly employing, attempting
to employ, recruiting or otherwise soliciting, inducing or influencing any person to leave employment with Employer, and also
will refrain from soliciting or encouraging any customer or supplier to terminate or otherwise modify adversely its business relationship
with Employer. Employee understands that the restrictions set forth in this Section 7(d) are intended to protect Employer’s
interest in its Confidential Information and established employee, customer and supplier relationships and goodwill, and agrees
that such restrictions are reasonable and appropriate for this purpose. For purposes of this Agreement, the term “Competing
Business” shall mean any business that provides or intends to provide the same or similar services as those provided by
Employer or any of its subsidiaries in any geographic area then served by Employer (which for this purpose only shall be defined
as being within one hundred (100) miles of any office or data center currently used or operated by Employer or any subsidiary
of Employer). Notwithstanding the foregoing, Employee may own up to two percent (2%) of the outstanding stock of a publicly held
corporation.


 


(e)
Third-Party Agreements and Rights. Employee hereby confirms that Employee is not bound by the terms of any agreement with
any previous employer or other party which restricts in any way Employee’s use or disclosure of information or Employee’s
engagement in any business. Employee represents to Employer that Employee’s execution of this Agreement, Employee’s
employment with Employer and the performance of Employee’s proposed duties for Employer will not violate any obligations
Employee may have to any such previous employer or other party. In Employee’s work for Employer, Employee will not disclose
or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and
Employee will not bring to the premises of Employer any copies or other tangible embodiments of non-public information belonging
to or obtained from any such previous employment or other party.


 


(f)
Litigation and Regulatory Cooperation. During and after Employee’s employment, Employee shall cooperate fully with
Employer in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against
or on behalf of Employer which relate to events or occurrences that transpired while Employee was employed by Employer. Employee’s
full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with
counsel to prepare for discovery or trial and to act as a witness on behalf of Employer at mutually convenient times. During and
after Employee’s employment, Employee also shall cooperate fully with Employer in connection with any investigation or review
of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that
transpired while Employee was employed by Employer. Employer shall reimburse Employee for any reasonable out-of-pocket expenses
incurred in connection with Employee’s performance of obligations pursuant to this Section 7(f) and shall pay Employee for
his time at his annual salary rate in effect at the time of the termination of his employment.


 




    	 



     


    

 


(g)
Developments. Employee will make full and prompt disclosure to Employer of all inventions, discoveries, designs, developments,
methods, modifications, improvements, processes, algorithms, databases, computer programs, formulae, techniques, trade secrets,
graphics or images, audio or visual works, and other works of authorship (collectively “Developments”), whether
or not patentable or copyrightable, that are created, made, conceived or reduced to practice by Employee (alone or jointly with
others) or under Employee’s direction during the period of his employment and that pertain directly to Employer’s
business operations. Employee acknowledges that all work performed by Employee for Employer hereunder is on a “work for
hire” basis, and Employee hereby assigns and transfers, and will assign and transfer, to Employer and its successors and
assigns all of Employee’s right, title and interest, including, but not limited to, all patents, patent applications, trademarks
and trademark applications, copyrights and copyright applications, and other intellectual property rights in all countries and
territories worldwide and under any international conventions, in and to all Developments that (a) relate to the business of Employer
or any of the products or services of Employer; (b) result from tasks assigned to Employee by Employer; or (c) result from the
use of personal property (whether tangible or intangible) owned, leased or contracted for by Employer.


 


(h)
Injunction. Employee agrees that it would be difficult to measure any damages caused to Employer which might result from
any breach by Employee of the promises set forth in this Section 7, and that in any event money damages would be an inadequate
remedy for any such breach. Accordingly, subject to Section 8 of this Agreement, Employee agrees that if Employee breaches, or
proposes to breach, any portion of this Agreement, Employer shall be entitled, in addition to all other remedies that it may have,
to seek an injunction or other appropriate equitable relief to restrain any such breach.


 


8.
Arbitration of Disputes. Any controversy or claim arising out of or relating to this Agreement or the breach thereof or
otherwise arising out of Employee’s employment or the termination of that employment (including, without limitation, any
claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law,
be settled by arbitration in any forum, form or location agreed upon by the parties or, in the absence of such an agreement, under
the auspices of the American Arbitration Association (“AAA”) in New York, New York in accordance with the Employment
Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators.
In the event that any person or entity other than Employee or Employer may be a party with regard to any such controversy or claim,
such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement. Judgment
upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This Section 8 shall be specifically
enforceable. Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court action for the
sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate;
provided, that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 8.


 


9.
Consent to Jurisdiction. To the extent that any court action is permitted consistent with or to enforce Section 8 of this
Agreement, the parties hereby consent to the jurisdiction of the courts of the State of New York. Accordingly, with respect to
any such court action, Employee (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and
(c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction
or service of process.


 


10.
Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements between the parties with respect to any related subject matter.


 




    	 



     


    

 


11.
Assignment; Successors and Assigns, etc. Neither Employer nor Employee may make any assignment of this Agreement or any
interest herein, by operation of law or otherwise, without the prior written consent of the other party; provided, that
Employer may assign its rights under this Agreement without the consent of Employee in the event that Employer shall effect a
reorganization, consolidate with or merge into any other corporation, partnership, organization or other entity, or transfer all
or substantially all of its properties or assets to any other corporation, partnership, organization or other entity. This Agreement
shall inure to the benefit of and be binding upon Employer and Employee, their respective successors, executors, administrators,
heirs and permitted assigns.


 


12.
Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision
of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction,
then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement
shall be valid and enforceable to the fullest extent permitted by law.


 


13.
Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The
failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any
breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.


 


14.
Notices. Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if
in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified
mail, postage prepaid, return receipt requested, to Employee at the last address Employee has filed in writing with Employer or,
in the case of Employer, at its principal executive offices, Attn: Dir of HR, MJ Holdings, 1300 S Jones Blvd, Las Vegas, NV and
shall be effective on the date of delivery in person or by courier or three (3) days after the date mailed.


 


15.
Amendment. This Agreement may be amended or modified only by a written instrument signed by Employee and by a duly authorized
representative of Employer.


 


16.
Governing Law. This is a Nevada contract and shall be construed under and be governed in all respects by the laws of the
State of Nevada, without giving effect to the conflict of laws principles of such State.


 


17.
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered
shall be taken to be an original; but such counterparts shall together constitute one and the same document.


 


[SIGNATURE
PAGE FOLLOWS]


 




    	 



     


    

 


IN
WITNESS WHEREOF, this Agreement has been executed by Employer and by Employee as of the Effective Date.


 


	MJ
    HOLDINGS, INC.	 
	 	 
	By:	 	 
	Name:	Roger
    Bloss	 
	Title:	Interim
    CEO	 
	 	 	 
	EMPLOYEE	 
	 	 
	By:		 
	Jim Kelly	 
	 	 	 
	October
      , 2020	 
	Effective Date:	 


 




    	 



     


    

 


EXHIBIT
A


 


Non-Qualified
Option Agreement


 


[To
be established by the board of directors]