Document:

Exhibit
10.43

 

CULTIVATION
AND SALES AGREEMENT

 

This
CULTIVATION AND SALES AGREEMENT (this “Agreement”) is made and entered into as of the date last signed by either of the Parties
(as defined below) (the “Effective Date”) by and between MJ Holdings Inc., a Nevada corporation (“MJNE”) and
Green Grow Investments Corporation, a Nevada Corporation (“Company”) (jointly, the “Parties” and, individually,
a “Party”).

 

RECITALS

 

WHEREAS,
pursuant to the Regulations outlined by the Nevada Cannabis Control Board, as amended from time to time (the “Act” and together
with the rules and regulations thereunder, the “RTMA”), the State of Nevada Cannabis Control Board (“CCB”) has
issued a cultivation facility license pursuant to which MJNE may cultivate (grow), process, and package marijuana; sell marijuana to
retail marijuana stores; and operate marijuana product manufacturing facilities and sell to other cultivation facilities, which license
MJNE is in the process of moving to the Cultivation Facility (as defined below) (the “Cultivation License”);

 

WHEREAS,
Company represents that it has specialized knowledge, skills, technology, and experience in cultivation, and otherwise has the experience
and skill necessary to cultivate and manage the cultivation of marijuana necessary to operate such an operation in the State of Nevada;

 

WHEREAS,
as of the Effective Date, MJNE is in the process of finalizing the Cultivation Facility, as defined herein, and obtaining all approvals
required by the CCB and the State of Nevada and will provide Company notice of when it can begin operations pursuant to applicable law
and under this Agreement. The Parties agree that Company cannot commence operations at the Cultivation Facility under this Agreement
until such time as it has been so notified, in writing, by MJNE (the “Commencement Notice”) and MJNE cannot estimate when
the requisite approvals from the CCB and the State of Nevada will be forthcoming; and

 

WHEREAS,
MJNE and Company desire to enter into an agreement whereby MJNE retains Company to provide the cultivation of one or more lines of product
(as described on the Summary of Commercial Terms set forth on Exhibit A attached hereto and incorporated herein) for sale in the State
of Nevada under the Cultivation License (the “Cultivation Services”) at MJNE’s facility located at 2215 E. Anvil Road
Amargosa Valley, Nevada 89020 (the “Cultivation Facility”) on the terms and conditions set forth herein.

 

    	 

    	 

    

 

AGREEMENT

 

NOW
THEREFORE, in consideration of the foregoing recitals which are incorporated herein and made part of this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, agreeing to be legally bound,
hereby agree as follows:

 

1.
Engagement and Cultivation Rights. As of the Effective Date MJNE hereby engages Company, on a non-exclusive basis, and Company
hereby accepts such engagement and agrees, upon the terms and conditions set forth herein, to provide the Cultivation Services pursuant
to the terms and conditions set forth herein. Company hereby is granted the right to develop, manage, and produce on behalf of MJNE all
Company-branded products, including but not limited to those set forth on Exhibit A; provided, however, that (a) Company is authorized
by MJNE to produce all products that may be lawfully grown and distributed in Nevada pursuant to applicable law, including CCB guidelines
and the RTMA; (b) Company shall use commercially-reasonable efforts to maximize the production and sales of the products grown at the
Cultivation Facility under this Agreement, subject to compliance with all applicable laws; (c) Company shall commence making its improvements
to the Designated Acreage within 120 calendar days of the date of the Commencement Notice and shall begin cultivation on the Designated
Acreage (as evidenced by registration of the first plants with the CCB) by the first day of Spring following the Commencement Notice
or when the CCB approves cultivation activities at the Designated Acreage, whichever occurs later; and (d) Company complies with all
applicable laws, rules, and regulations, including but not limited to those pertaining to the labeling of product sold hereunder.

 

2.
Term; Renewal; Termination.

 

(a)
Term. This Agreement shall commence on the date of the Commencement Notice and shall continue for a period of 10 years thereafter
(the “Initial Term”), unless earlier terminated as provided in Section 2(c).

 

(b)
Renewal. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive five-year terms, or as the
Parties otherwise agree in writing prior the expiration of the then-current term (each, a “Renewal Term” and together with
the Initial Term, the “Term”), unless either Party provides the other written notice of termination at least sixty (60) days
prior to the expiration of the applicable Term. The terms, covenants and conditions of any Renewal Term shall be the same as the terms,
covenants, and conditions in effect immediately prior to such renewal unless otherwise agreed by the Parties in writing prior to the
commencement of the new Renewal Term.

 

(c)
Termination. This Agreement may be terminated at any time upon the mutual agreement of the Parties or if Company fails to cure any
default or breach of the Agreement within 30 business days from notification of such breach/default (or such shorter time as required
by applicable law). In addition, upon the occurrence of any one of the following events, either Party may terminate this Agreement prior
to the end of the Initial Term or any Renewal Term by providing written notice to the other Party stating the intended date of termination:
(i) subject to Section 20, any breach or default of this Agreement by the other Party which remains uncured in accordance with Section
20(a) or Section 20(b) hereof; (ii) any grossly negligent or intentional or willful misconduct by the other Party; (iii) any federal
enforcement action of the type described in Section 24 against MJNE, Company, or any of their respective affiliates, employees or independent
contractors; (iv) any change or revocation of state or local law, regulation or licensing, that has the effect of prohibiting the legal
operation of the Cultivation Facility or the performance of the Cultivation Services; provided, however, that any change that only impacts
compliance and/or operation, or causes costs of goods to be more expensive or difficult shall not provide a basis for termination under
this clause (iv); and (v) CCB’s refusal to approve an application to renew, or revocation of, the Cultivation License. In the event
of any termination of this Agreement, Company personnel shall be denied access to the Cultivation Facility without the express permission
of MJNE. The Parties shall use reasonable commercial efforts to wind down operations of Company in an organized and efficient manner.
Company shall pay for and be responsible for any and all costs associated with winding down Company operations at the Cultivation Facility.

 

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(d)
CCB Approval. The Parties acknowledge that this Agreement is subject to the approval of the CCB. The Parties will work together in
good faith to provide information to the CCB pursuant to applicable Nevada law. In the event that the CCB does not approve this Agreement
or that the Cultivation License is not authorized for use at the Cultivation Facility, the Agreement shall be terminated and neither
Party shall have any obligation to the other under this Agreement or arising in connection with this Agreement, including any obligation
related to costs or expenses incurred in anticipation of such approval by either Party. Alternatively, if both Parties agree, the Parties
may elect to work together in good faith to modify the Agreement to bring it into conformance with CCB guidelines/requests and to further
extend the Agreement.

 

3. Obligations
of Company. The following obligations of Company are in addition to any and all obligations set forth elsewhere in this
Agreement (including, without limitation, those in Section 1, above), or imposed by applicable law, rule, or regulation, including
any orders or policies promulgated by the CCB.

 

(a)
Compliance. Company shall (i) be responsible for the logistics, development, ingredient sourcing, cultivation, preparation and
storage at or from the Designated Acreage (as defined below), and sale of the its products and (ii) comply at all times with the
RTMA and all applicable rules, regulations and requirements in the provision of the Cultivation Services, subject to MJNE’s
good faith assistance and cooperation; provided, that MJNE has the right to require Company to take any and all reasonable actions
that MJNE deems necessary or advisable to ensure compliance with RTMA or any other applicable rules, requirements or regulations.
The Parties shall cooperate and work together to take any action necessary in furtherance of, in compliance with, or otherwise in
any way related to any change whatsoever in any applicable law, rule, statute, regulation, the entitlement and/or approval process,
or other process or requirement related to the Cultivation Services that comes into being, occurs, accrues, becomes effective or
otherwise becomes applicable or required after the Effective Date. Company shall follow, conform to and abide by any such changes
and any regulatory matters. Company shall further address and cure any noncompliance and pay any fines or assessments arising in
connection with the failure of the Company or any of its employees or independent contractors to comply with applicable law and all
other costs associated therewith.

 

(b)
Standard of Care. Company will perform the Cultivation Services in compliance with best industry practices, applicable law, permits,
the terms and conditions of this Agreement (including the Policies and Procedures, as defined below) and otherwise operate in a first-class
manner (the “Standard of Care”).

 

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(c)
Packaging. Company shall comply with all legal requirements pertaining to the labeling of its products grown or produced at the Cultivation
Facility, including any regulatory approval of such labels, which labels share bear MJNE’s approved logo in such a manner as shall
be directed by MJNE.

 

(d)
Insurance. Prior to commencing operations under this Agreement, Company shall obtain, and thereafter, through the Term, shall maintain
industry-standard insurance for an operation comparable to that contemplated, including the Cultivation Services, including workers’
compensation insurance and product liability insurance, the scope and policy limits of which insurance shall be subject to MJNE’s
approval. Without limiting the foregoing, during the Term, Company shall maintain a policy of commercial general liability insurance
(sometimes known as broad form comprehensive general liability insurance) insuring Company against liability for bodily injury, property
damage (including loss of use of property) and personal injury arising out of the operation, use, or occupancy of the Cultivation Facility.
Company shall name MJNE and its affiliates, and their respective officers, directors, and employees, as additional insureds under such
policy or policies and shall provide a certificate of insurance or policy endorsements acceptable to MJNE prior to commencing operation
but no later than 20 calendar days from obtaining its initial coverage and upon each renewal. Coverage shall be for no less than US$1,000,000
per occurrence; shall be provided by a carrier reasonably acceptable to MJNE; and with a deductible or retention amount reasonably acceptable
to MJNE. MJNE may require a reasonable increase in coverage amounts during the Term. The amount and scope of coverage of such insurance
shall not limit Company’s liability nor relieve Company of any other obligation under this Agreement. MJNE may also obtain comprehensive
public liability insurance in an amount and with coverage determined by MJNE insuring MJNE against liability arising out of the ownership,
operation, use, or occupancy of the Cultivation Facility, including the Designated Area. Any insurance obtained by MJNE shall not be
contributory and shall not provide primary insurance. Company’s insurance policies shall provide that MJNE shall be notified if
there is a lapse in coverage, a pending lapse in coverage, or if any claim has been made upon such coverage. MJNE also may require Company
to maintain, during the term of this Agreement, a policy of commercial loss of income insurance (business interruption insurance) insuring
the Company and MJNE against loss of income resulting from Company’s inability to operate and/or produce product. MJNE shall provide
Company a 30-day notice requiring Company to obtain such loss of income insurance.

 

(e)
Labor Matters.

 

(i)
Company may utilize subcontractors to provide any of the Cultivation Services so long as such subcontractors are selected by Company
with due care and Company has reasonable assurances that such subcontractors can perform the Cultivation Services pursuant to the requirements
of this Agreement, including the Standard of Care; provided, however, that no such utilization will relieve Company of any of
its obligations or liabilities under this Agreement. Neither Company nor the employees, contractors, or agents of Company providing Cultivation
Services hereunder will be considered employees of MJNE for any purpose. Company will be solely responsible for all matters pertaining
to the employment, supervision, compensation, promotion, termination, daily direction, and control of its employees.

 

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(ii)
Company is responsible for payment of all compensation, benefits and employer taxes related to such persons and any fines or other regulatory
matters arising in connection with employment matters, including but not limited to the failure of Company or any of its employees or
independent contractors to comply with applicable laws. In furtherance and not in limitation of the foregoing, Company represents and
warrants to MJNE that it will use the Standard of Care (i) to obtain and maintain all permits, certificates and licenses necessary for
Company to provide for the employment of its employees and independent contractors as may be required under the applicable laws of the
State of Nevada, and (ii) to comply with (A) all applicable laws relating to hiring practices, workplace safety and health, payment of
wages and overtime, employee benefits, and employment discrimination, (B) the Immigration Reform and Control Act of 1986, and (C) all
other applicable laws governing the employment relationship between Company and its employees.

 

(iii)
Company shall use the Standard of Care to (A) provide reasonable health protection and safety equipment to all of its employees and independent
contractors at the Cultivation Facility; (B) direct its employees and independent contractors to properly dress at the Cultivation Facility,
including without limitation wear closed-toe shoes; (C) prohibit horseplay, roughhousing, or sports play in the Cultivation Facility;
and (D) train its employees and independent contractors in proper safety procedures and the Policies and Procedures (as described below).

 

(f)
Policies and Procedures. Company shall comply with all policies and procedures, as approved by the CCB, as may be communicated
to Company by MJNE from time to time, including, without limitation, the policies and procedures set forth on Exhibit A attached hereto,
and the sexual harassment rules adopted by MJNE (collectively, the “Policies and Procedures”). Company shall provide MJNE
a copy of any written operations manual including all standard operating procedures for its processes at the Cultivation Facility, and
any amendments thereto.

 

(g)
Use and Maintenance of the Cultivation Facility.

 

(i)
MJNE shall permit Company to use the acreage identified as the “Designated Acreage” on Exhibit A for Cultivation Services,
subject to any limitations set forth on Exhibit A.

 

(ii)
Company shall be responsible for and pay for all maintenance of the Designated Acreage, which shall be maintained in accordance with
the Policies and Procedures (or, if no written Policies and Procedures have been provided by MJNE, in accordance with the directions
of MJNE) and applicable laws, rules, and regulations.

 

(iii)
MJNE shall determine the location of the Designated Acreage within the Cultivation Facility, in its sole but reasonable discretion.

 

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(h)
Supplies, Equipment and Tools. Company shall be responsible for the selection, purchase, and acquisition of all supplies, equipment,
and tools required to deliver the Cultivation Services (the “Equipment”), which Equipment shall remain the property of Company.
Company shall use commercially-reasonable efforts to mark otherwise designate its Equipment as its property and shall maintain (and provide
to MJNE from time to time, upon MJNE’s reasonable request) an accurate record identifying its property. Company shall have the
right, at its own cost, to install or attach cultivation structures and equipment on the Designated Acreage; provided, however, that
(A) such structures and equipment meet the requirements or specifications of the CCB and applicable laws, rules, and regulations; (B)
all specifications and plans for structures and equipment be provided in advance to MJNE, along with copies of such documents that are
required to be submitted to any applicable regulatory authority; (C) no equipment or structures that are subject to regulatory approval
shall be installed or place on the Designated Acreage without the receipt of any necessary regulatory approval; and (D) any structures
or equipment that are affixed, meaning attached to the ground permanently, to the Designated Acreage shall become the property of MJNE
upon the expiration or termination of this Agreement for any reason (further provided that MJNE, in its sole but reasonable discretion,
may require Company to remove such structures or equipment at Company’s sole expense upon the expiration or termination of this
Agreement for any reason).

 

(i)
Testing. Company shall cooperate with MJNE to implement all actions necessary for product testing and analytics for all products
produced and developed at the Cultivation Facility by or on behalf of Company to ensure compliance with the RTMA and all other applicable
rules, regulations, requirements, and laws. MJNE shall facilitate the testing of products by a duly-licensed laboratory or testing provider,
provided that Company shall pay all costs and expenses related to that testing. Each Party shall be provided copies of the results of
any product testing. No product produced at the Cultivation Facility by or on behalf of Company shall be sold or distributed without
such testing and only in compliance with all applicable laws, rules, and regulations pertaining thereto.

 

(j)
Records, Record-Keeping, and Reporting.

 

(i)
Company shall maintain its books and records in accordance with generally accepted account principles and shall maintain accurate records
of all product sales and such other business metrics and details as may be required by the CCB and applicable law. At least once per
calendar month, on or before the 15th of the month, Company shall provide MJNE with a detailed report of the immediately preceding
month’s sales. Company must use the accounting and tracking system required by the CCB from time to time and as delegated to Company
by MJNE (as of the Effective Date, the CCB-designated seed-to-sale tracking compliance system is Metrc Nevada (“Metrc”)).
All sales must be accompanied by a sales report, delivery manifest and cash receipts. Product sales and all pertinent data shall be input
through Metrc, as directed by MJNE (or such other tracking and compliance system as may be designated by the CCB from time to time) and
shall be subjected to audit by MJNE, as set forth below. Company shall maintain sales and cost accounting records and supporting documentation
for at least five years after the pertinent period, or such longer period as may be required by applicable law. Company shall maintain
its records in readily-accessible electronic format using commercially-available software.

 

(ii)
Company shall maintain at the Designated Acreage, with MJNE’s oversight and input, complete and accurate records related to the
provision of Cultivation Services, including, without limitation, financial records, sales reports, sales invoices, maintenance of all
required Agent Cards, human resources, and safety records.

 

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(iii)
Upon reasonable advance notice, and during normal business hours, MJNE or an agent designated by MJNE shall have access to such records
and supporting documentation to the extent sufficient to audit such materials and to assess and verify gross revenue generated by the
Designated Acreage, in accordance with this Agreement. MJNE shall have the right to review the sales records and supporting documentation
records with respect to the Cultivation Services. Any such review shall be solely the expense of MJNE and shall not occur more frequently
than quarterly; provided, however, that if MJNE determines a material disparity between the results of operation reported by Company
and the results of MJNE’s audit, in MJNE’s sole but reasonable determination (it being agreed and understood that a disparity
of five percent or greater will be considered material), then MJNE may review Company’s records more frequently (“Additional
Audits”) and may require Company to bear the costs of the same. Additional Audits shall be terminated in the event that two sequential
audits result in discrepancies less than 5 percent. Notwithstanding the foregoing, Additional Audits may be trigger in the event that
a material disparity exists as set forth herein. The access to records that is the subject of this subsection shall be in addition to
MJNE’s rights set forth in Section 10 of this Agreement.

 

(k)
Agent Cards. Each employee and independent contractor of Company intended to work at the Cultivation Facility must obtain a state-issued
marijuana agent card (“Agent Card”) from the CCB prior to commencing work at the Cultivation Facility and must maintain an
active Agent Card in good standing in order to work at the Cultivation Facility at all times. MJNE shall submit all initial applications
and renewals, subject to the following: (i) Company must provide MJNE with all applicable information and material necessary to process
each initial application, and must ensure that each employee and independent contractor cooperates with the application process; (ii)
in the case of renewal filings, Company must provide (and ensure that the applicable employee or independent contract provides) all necessary
information and material necessary for MJNE to submit the requisite online filing at least 30 business days before the filing is due;
and (iii) Company shall pay all costs, fees, and expenses related to the Agent Card and application/renewal processes, in advance.

 

(l)
Access. MJNE shall provide such access to the Designated Acreage to Company as MJNE deems reasonably necessary and appropriate to
allow Company to provide the Cultivation Services. Company shall ensure that guests at the Designated Acreage shall be kept to a minimum.
Company shall ensure that all its guests at the Designated Acreage are always escorted by an authorized and appropriate agent of Company.
Under no circumstances shall Company personnel, including its management, employees, independent contractors, or guests, enter any portion
of the Cultivation Facility other than the Designated Acreage without prior written approval of MJNE.

 

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(m)
Security. Company shall install and maintain at the Designated Acreage, at its sole expense, such fences, walls, doors, locks, security
systems, camera systems, fire alarms and other security apparatus, including, without limitation, intrusion and motion detection, panic
buttons, duress alarm and internal and external video surveillance as may be necessary to meet the requirements of Nevada laws, or as
may be directed by the CCB or any other regulatory body with authority over the Cultivation Facility. Company shall submit its security
plan to MJNE for its approval prior to installing any fences, walls, or doors, which approval may be denied or conditioned by MJNE, in
its sole discretion. MJNE reserves the right to install fencing and other security measures at the Cultivation Facility (including on
and around the Designated Acreage) and to charge Company a pro rata share of the cost thereof, which will be promptly paid by Company
upon invoicing.

 

(n)
Marketing. Company shall have the right to develop, direct, maintain, and expand the marketing, branding, and pricing strategies
for all products produced by Company at the Cultivation Facility, or otherwise, subject to compliance with applicable rules, regulations,
and requirements. The foregoing notwithstanding, MJNE shall have the right to approve in advance all packaging and product representation
and claims.

 

4.
Fees and Expenses. As further set forth in Section 5, below, MJNE shall collect revenue from the sale of the products produced
by Company hereunder, which revenue shall be for MJNE’s account. As set forth below, Company shall earn a management fee (the “Cultivation
Management Fee”) based on the total invoiced amount for the sale of such product (each sale, an “Order”), after the
deduction of taxes paid in connection with such Order, as set forth below. If MJNE is owed any fees or expenses hereunder attributable
to an Order and funds are not available from the proceeds of such Order (whether because of customer non-payment or otherwise), then
MJNE shall invoice Company for such fees and expenses, which invoice will be paid in full by Company within 10 business days of the date
of invoice. Alternatively, and in its sole discretion, MJNE may deduct such fees and expenses related to an Order from the Cultivation
Management Fee otherwise payable from the proceeds of a prior or subsequent Order.

 

(a)
Deposits. Upon execution of this Agreement, Company shall pay MJNE the sums identified as “Deposits” on Exhibit A. Each
of these sums shall be non-refundable except in the event that this Agreement is not approved by the CCB or the Cultivation License shall
not be approved for use at the Cultivation Facility.

 

(b)
Security and Compliance Fee. Company shall pay MJNE the Security and Compliance Fee set forth on Exhibit A to compensate MJNE for
certain security and regulatory compliance expenses incurred by MJNE. This fee shall be paid monthly by the first of each month throughout
the Term commencing with the first of the month immediately following the date of the Commencement Notice and may be deducted from any
deposits or other funds of Company (including funds otherwise payable as the Cultivation Management Fee, defined below, then in the possession
of MJNE). Amounts unpaid by the 10th of the month shall be considered past due and shall incur a late fee of $500.00. The
Security and Compliance Fee shall be increased by MJNE each year based on an increase in the regional cost of living but not less than
1.5% per year and not more than 10% in any five-year period.

 

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(c)
Royalty. Company shall pay MJNE a percentage of all invoiced Orders less applicable taxes (the “Product Royalty”). The
Product Royalty rate is set forth on Exhibit A hereto and is subject to the minimum royalty set forth therein. Such payments are due
and payable by Company upon sale of product regardless of whether the purchaser has paid all or any part of the purchase price. Company
shall be entitled to a credit or credits for any authorized returns. In the event that Company and MJNE is unable to collect from a purchaser
the total amount owed to MJNE and Company for an Order, Company is still obligated to pay the Product Royalty to MJNE for the total amount
of the invoiced Order to purchaser.

 

(d)
Cultivation Management Fee. Company shall earn a Cultivation Management Fee based on the Net Sales Revenue, at the rate set forth
on Exhibit A. For purposes hereof, “Net Sales Revenue” means gross revenue actually realized from an Order less any returns
or credits authorized by MJNE related to such Order and less Order Expenses (as defined in subsection (e)) related to such Order. As
stated elsewhere in this Agreement, MJNE may retain the following prior to distributing the Cultivation Management Fee to Company to
the extent that MJNE has not otherwise recouped such sums: (i) all Order Expenses related to a prior Order; (ii) the monthly royalty
set forth in subsection (c), above, as well as any Product Royalty related to a prior Order; (iii) the security and compliance fee set
forth in subsection (b), above related to a prior Order; (iv) any returns or credits authorized by MJNE related to such product; and
any other fees, expenses, or other sums of money owed to, or invoiced by MJNE to Company. Further, to the extent that Company separately
has paid MJNE for any Order Expenses, such sums will not be included in the determination of Net Sales Revenue (i.e., such sums will
not be double counted). For the sake of clarity, MJNE may deduct from the Cultivation Management Fee paid to Company any or all sums
owed to it from a prior Order or prior Orders, and any other fees and expenses owed to MJNE by Company.

 

(e)
Order Expenses. Company shall pay MJNE for all direct expenses incurred in connection with the Cultivation Services without limitation,
including those described in Section 6, as well as the cost of testing product; delivery of product; pick-up and processing of payments;
and any other reasonable cost or fee and, as well any late fee, interest or other obligation due from Company to MJNE. Such expenses
that are directly attributable to a specific Order, such as the cost of testing product; delivery of product; pick-up and processing
of payments; and taxes payable to the State of Nevada related to a specific order, are the “Order Expenses;” provided, however,
that if Company separately has paid Company for such taxes related to a specific order, they will not be included in the term Order Expenses
as to that Order.

 

(f)
Build Out Payment. Company shall pay MJNE for any and all reasonable expenses MJNE incurs in building out or assisting with the build
out of the Designated Acreage as agreed to between the Parties.

 

(g)
Disbursement. MJNE shall pay Company the Cultivation Management Fee pursuant to Section 4(g), on or before the 10th of
each month, for the preceding month’s fee.

 

(h)
Examples. By way of example only, and without any inference that the sums reflected below are or should be expected or reflect anticipated
revenue or expenses,

 

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(
) The following represents an example of a Product Royalty calculation and a Cultivation Management Fee calculation where (A) the Product
Royalty rate is 10%; (B) the Cultivation Management Fee is 90% of Net Sales Revenue:

 

	 	1.	Company
    sales 100 lbs of flower at Fair Market Value (“FMV”) at $2,100.00 per lbs;

 

	 	2.	Billed
    amount of Order equals $210,000.00;

 

	 	3.	MJNE
    collects $210,000.00;

 

	 	4.	Taxes
    paid to state equal $36,400.00 (At current tax rate based of the FMV of $2,100/lb, NOTE that if the product was sold at $1,800/lb
    it would still be taxed at the FMV rate of $2,100/lb)

 

	 	5.	Net
    after taxes equals $173,600.00;

 

	 	6.	Product
    royalty of 10% paid to MJNE equals $17,360.00

 

	 	7.	Security
    and Compliance Fee has not yet been paid and is deducted by MJNE from this Order equaling $10,000.00

 

	 	8.	Other
    order expenses equal $6,250.00: testing ($6,000.00) (based on 20 test @ 5lb batches @ $300.00 per test), ($250.00) (transportation
    cost).

 

	 	0.	Money
    owed to Company $139,990.00 paid on the 10th of the following month.

 

(ii)
The following represents an example of the distribution of the Cultivation Management Fee shown in subsection (i), above, at such time
as there are outstanding fees payable to MJNE:

 

	Cultivation Management Fee:	 	$	139,990.00	 
	Taxes paid to State for prior Order:	 	$	22,000.00	 
	Order Expenses from prior Order:	 	$	20,000.00	 
	Final Cultivation Management Fee:	 	$	97,990.00 ($139,990-$22,000-$20,000)	 

 

5.
Sales; Collections; and Payments.

 

(a)
Company shall sell product on behalf of MJNE. All sales shall be timely and properly recorded and data entered into the sales tracking
system and MJNE will arrange for collection of sales proceeds via a third-party courier; notwithstanding, MJNE is not responsible for
such collections in the event of non-payment or dispute. Company acknowledges that MJNE is required to remit taxes as promulgated by
the State of Nevada on the sales of all product/cultivation goods and for any product sold, regardless of whether the proceeds of such
sale have been remitted, cleared, or paid in full. As such, to the extent that MJNE has paid taxes related to the products that are the
subject of this Agreement, Company is responsible to reimburse MJNE. Notwithstanding anything set forth in this Agreement to the contrary,
MJNE shall have the right to invoice Company for the reimbursement of taxes attributable to one or more Orders, and Company shall remit
such funds to MJNE immediately upon receipt of the invoice.

 

(b)
In addition to any other expenses or fees set forth herein, MJNE may invoice Company for any direct out-of-pocket expenses incurred by
MJNE in connection with Company operations plus a 15% administrative charge if these fees are not paid within 20 days. MJNE invoices
to Company are due and payable within 14 calendar days of receipt by Company unless such invoice is for an amount in excess of $2,000;
in each such case that invoice shall be due and payable within 20 calendar days and, if not then timely paid, may be paid to Company
from any Company funds then in the possession of MJNE, including any Cultivation Management Fee that otherwise would be payable to Company.

 

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(c)
Company shall sell product only to a licensed marijuana dispensary, production facility, or cultivation facility, in accordance with
the Cultivation License.

 

6.
Company’s Operating and Related Expenses. Without limiting any other provision of this Agreement, Company shall be solely responsible
for all costs and expenses necessary to perform the Cultivation Services as contemplated by this Agreement, including, without limitation,
all materials, build out costs, electrical, utilities, fencing (which may be prepaid by MJNE and will be reimbursed by Company to MJNE),
installation of water piping, trenching, grading, installation of concrete slabs, building construction, soil development, equipment,
vehicles, mobile phones, computers, and labor, including, without limitation, all wages, benefits (if any), taxes, withholding, workers’
compensation insurance, payroll processing, uniforms, tools, training and education, and all other employee-related costs and anything
else related to Company operations.

 

7.
Confidential Information; Insider Trading.

 

(a)
Definition. “Confidential Information” means nonpublic information that one Party (the “Disclosing Party”)
designates as being confidential or which, under the circumstances surrounding disclosure, ought to be treated as confidential, including,
but not limited to: all (i) financial, operational, and other information relating to the Disclosing Party; (ii) confidential information
and trade secrets of the Disclosing Party; (iii) lists of customers or referral sources; (iv) business, financial, and other information
received from a customer or any other third party that the Disclosing Party is obligated to treat as confidential; (v) financial statements
and other financial information; (vi) any present or future business or strategic plans, services, trade secrets, designs, recipes, processes,
procedures, or other business or technical information of the Disclosing Party; and (vii) any other information designated, either orally,
in writing, or by any other means, as confidential. Confidential Information does not include information that: (x) is or becomes generally
available to the public other than because of a disclosure by the Party receiving such information (the “Receiving Party”);
(y) was in the Receiving Party’s possession prior to disclosure by Disclosing Party as shown by written records of the Receiving
Party dated prior to the date of this Agreement.

 

(b)
Confidentiality Obligations. The Receiving Party agrees: (i) to hold all Confidential Information in strict confidence and to take
commercially reasonable precautions to protect the confidentiality of such Confidential Information (including, without limitation, all
precautions the Receiving Party employs with respect to its own confidential or proprietary materials of any kind); (ii) not to divulge
any Confidential Information or any information derived therefrom to any third person without the express prior written consent of the
Disclosing Party, which may be granted or withheld at the Disclosing Party’s sole discretion, or unless compelled to do so by a
court of competent jurisdiction or regulatory authority, and then only after providing the Disclosing Party, to the extent allowable
under law or regulation, with an opportunity to enjoin the disclosure; and (iii) not to encourage or facilitate any third party to do
any of the actions prohibited in the foregoing items.

 

    	11

    	 

    

 

(c)
Return of Confidential Information. It is further understood that all Confidential Information provided by the Disclosing Party to
the Receiving Party remains the sole property of Disclosing Party, and upon written request shall immediately be returned by the Receiving
Party, together with all copies.

 

(d)
Enforcement. Each Receiving Party agrees that, in the event of any breach of this Agreement by it, such breach will cause
irreparable harm to the Disclosing Party, and monetary damages will not be sufficient or may not be adequately quantified, and as such,
the Disclosing Party shall be entitled to specific performance, injunctive relief, or other equitable remedies as may be available to
it, which remedies shall be cumulative and non-exclusive, and in addition to such other remedies as it may otherwise have at law or in
equity.

 

(d)
Insider Trading. Company acknowledges that the stock of MJNE is publicly traded and that MJNE is subject to federal and state
securities laws, rules, and regulations, including those under the oversight of the United States Securities and Exchange Commission.
Company and its representatives may become aware of material non-public information regarding MJNE in the performance of the Cultivation
Services or otherwise in connection with its relationship with MJNE. Company acknowledges that engaging in any transaction in MJNE’s
stock while in possession of material nonpublic information, as well as providing material nonpublic information to others who may engage
in a transaction in MJNE’s stock while in possession of such information, may subject Company or MJNE or both (as well as their
respective officers and directors) to civil and potentially criminal liability. Accordingly, Company and its officers and directors shall
ensure that neither the Company, its officers, directors, and members of their respective immediate families, will engage in transactions
in MJNE’s stock while in possession of material non-public information and, to the extent that any employees, independent contractors,
or other parties associated with Company are or become in possession of material nonpublic information concerning MJNE, Company shall
use commercially-reasonable efforts to ensure that they do not engage in such transactions.

 

8.
Representations and Warranties. The Parties respectively represent and warrant to each other that: (a) it is duly organized, validly
existing and in good standing as a limited liability company or corporation under the laws of the state of its domicile; (b) it has the
full right, power and authority to enter into this Agreement and to perform its obligations hereunder; (c) the execution of this Agreement
by its representative whose signature is set forth at the end hereof has been duly authorized by all necessary corporate action of the
Party; and (d) when executed and delivered that Party, this Agreement will constitute the legal, valid and binding obligation of that
Party, enforceable against that Party in accordance with its terms. MJNE further represents and warrants that: (x) it is, or will be
prior to the commencement of any Cultivation Services hereunder, the holder of the Cultivation License; (y) the Cultivation License is
duly and validly issued, and shall be maintained during the entire Term; and (z) the Parties’ respective rights and obligations
under this Agreement are permitted activities under the Cultivation License, provided Company complies with its obligations under this
Agreement and applicable law. Company further represents that (A) it has sufficient financial resources to engage in the operation contemplated
hereby; and (B) that none of the persons that owns an interest in Company, directly or beneficially, is a “Specially Designated
National” or “Blocked Person.” “Specially Designated National” or “Blocked Person” means (i)
a person designated by the U.S. Department of Treasury’s Office of Foreign Assets Control from time to time as such status, (ii)
a person described in Section 1 of U.S. Executive Order 13224, issued September 23, 2001, or (iii) a person otherwise identified by government
or legal authority as a person with whom we or our affiliates are prohibited from transacting business. Currently a list of such designations
is published under the internet website address http://sdnsearch.ofac.treas.gov/. The text of the Executive Order is published at www.ustreas.gov/office/enforcement/ofac.

 

    	12

    	 

    

 

9. Indemnification.
For purposes of this Agreement, the term “Affiliate” means any person or entity that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under common control with, a Party. Each Party (respectively an
“Indemnifying Party”) shall indemnify and save harmless the other Party and its agents, officers, directors, members,
managers, directors, employees, and Affiliates (each an “Indemnified Party”) from and against any and all actions,
claims, costs (including attorneys’ fees), fines, damages, judgments, and liabilities whatsoever, including without limitation
any product liability claims, in law or equity, arising out of or caused by (a) any breach by the Indemnifying Party of this
Agreement, (b) the Indemnifying Party’s operations at the Cultivation Facility or performance as contemplated under this
Agreement, (c) obligations that either Indemnifying Party is alleged to have or have had with respect to Indemnifying Party’s
employees to make payments, contributions or withholdings under any applicable federal, state or local laws pertaining to
workers’ compensation, unemployment, social security or income or other taxes, (d) any and all claims against
Indemnified Party of whatever nature arising from any act, omission or negligence of Indemnifying Party, its contractors, licensees,
agents, servants, employees, invitees, or visitors, arising from any accident, injury, damage or any other reason, (e) any claims,
suits, charges, proceedings or actions for workers’ compensation benefits or awards filed against Indemnified Party by or
concerning Indemnifying Party’s employees, (f) any grossly negligent acts, omissions or deliberate, willful or intentional
misconduct or malfeasance, of Indemnifying Party’s employees while performing services or other obligations contemplated under
this Agreement; and (g) any damage to the Cultivation Facility caused by Indemnifying Party’s gross negligence or willful
misconduct.

 

10.
Inspections and Audits. The Parties acknowledge and agree that the Cultivation Facility may be subject to inspection by CCB and
that CCB may perform audits of all activities licensed under Nevada law. As such, the Parties agree to fully cooperate in good faith
with any such inspection or audits. MJNE shall have the right (but not the obligation) to inspect and direct corrections at the Cultivation
Facility at any time without prior notice or consent; provided, however, that Company may not rely on the results of any such inspection
as evidence that it is in compliance with applicable law.

 

11.
Taxes. Each of the Parties shall be responsible for its own taxes (including all personal property taxes) that are incurred as
a result of that Party’s activities pursuant to this Agreement, and no Party shall be liable to any other Party for contribution
or otherwise related to the payment of any taxes. Any taxes imposed shall be paid at the level they are imposed.

 

    	13

    	 

    

 

12.
Limited MJNE License; No Other Intellectual Property Licenses.

 

(a)
MJNE hereby grants Company a non-exclusive limited, royalty free, license to use its name, trademarks, and other trade dress in the performance
of the Cultivation Services in the State of Nevada during the Term. Except for the foregoing license, nothing herein shall be construed
or interpreted as to give Company any right, title, interest, or license to use any intellectual property of MJNE or any of its affiliates.
Apart from the license granted in this section, Company shall not use MJNE’s name or brand in any way without the prior written
consent of Company. Any authority granted to Company hereby may be revoked by MJNE upon commercially reasonable notice being given.

 

(b)
Nothing herein shall be construed or interpreted as to give MJNE any right, title, interest, or license to use any intellectual property
of Company or any of its affiliates. MJNE shall not use the Company name or brand in any way without the prior written consent of Company,
except as may be necessary to perform any of the services undertaken under this Agreement (e.g., the filing of applications for Agent
Cards).

 

(c)
Company expressly acknowledges and agrees that in addition to other third parties that may be granted the right to conduct grow operations
at the Cultivation Facility, Company or its affiliates, on their own behalf, may engage in grow operations at the Cultivation Facility.
Notwithstanding anything set forth in this Agreement to the contrary, Company shall have no right to interfere with or object to any
other licenses granted by Company nor any activities conducted by MJNE or its affiliates, including those that may be deemed competitive
with Company.

 

13.
Events of Default.

 

(a)
Events of Default by Company. Company shall be in default hereunder if any one or more of the following events happen, and Company
fails to cure such default within 15 days following written notice from MJNE (or such lesser period of time required under Nevada laws):
(i) Company fails to act in accordance with, or is alleged by a federal, state, or county state regulatory authority or administrative
body that it has violated, any law, rule, or regulation, including but not limited to any regulations promulgated by the CCB, including
the RTMA; (ii) the filing by Company of a voluntary petition of bankruptcy or a voluntary petition or answer seeking reorganization,
rearrangement, or readjustment of its debts, or any relief under any bankruptcy or insolvency act or law, now or hereafter existing,
or any agreement by Company indicating consent to, approval of, or acquiescence in, any such petition or proceeding or face involuntary
bankruptcy; (iii) the application by Company or the consent or acquiescence of Company in the appointment of a receiver or trustee for
all or a substantial part of any of its properties or assets; (iv) the making by Company of a general assignment for the benefit of creditors;
(v) the inability of Company or the admission of Company in writing of its inability to pay its debts as they mature; (vi) the filing
of an involuntary petition against Company seeking reorganization, rearrangement or readjustment of its debts or for any other relief
under any bankruptcy or insolvency act or law, now or hereafter existing, or the involuntary appointment of a receiver or trustee for
Company for all or a substantial part of its property or assets, or the issuance of a warrant of attachment, or execution of similar
process against a substantial part of the property of Company and the continuance of such for 120 days undismissed or undischarged; or
(vii) the failure by Company to perform or comply with any material covenant or agreement in this Agreement. If Company fails to cure
the default within 15 days, MJNE has the right to terminate the Agreement pursuant to Section 2(c).

 

    	14

    	 

    

 

(b)
Events of Default by MJNE. MJNE shall be in default hereunder if any one or more of the following events happen, and MJNE fails
to cure such default within 30 days following written notice from Company (or such lesser period of time required under Nevada laws):
(i) the revocation of the Cultivation License by the State of Nevada; (ii) the filing by MJNE of a voluntary petition of bankruptcy or
a voluntary petition or answer seeking reorganization, rearrangement, or readjustment of its debts, or any relief under any bankruptcy
or insolvency act or law, now or hereafter existing, or any agreement by MJNE indicating consent to, approval of, or acquiescence in,
any such petition or proceeding or face involuntary bankruptcy; (iii) the application by MJNE or the consent or acquiescence of MJNE
in the appointment of a receiver or trustee for all or a substantial part of any of its properties or assets; (iv) the making by MJNE
of a general assignment for the benefit of creditors; (v) the inability of MJNE or the admission of MJNE in writing of its inability
to pay its debts as they mature; (vi) the filing of an involuntary petition against MJNE seeking reorganization, rearrangement or readjustment
of its debts or for any other relief under any bankruptcy or insolvency act or law, now or hereafter existing, or the involuntary appointment
of a receiver or trustee for MJNE for all or a substantial part of its property or assets, or the issuance of a warrant of attachment,
or execution of similar process against a substantial part of the property of MJNE and the continuance of such for 120 days undismissed
or undischarged; or (vii) the failure by MJNE to perform or comply with any material covenant or agreement in this Agreement.

 

14.
Notices. The Parties acknowledge and agree that any notice required under this Agreement shall be given in writing and shall be
delivered personally, via overnight delivery service with tracking, email, or by certified mail, postage prepaid, addressed to the Party
for whom intended as follows:

 

(a)
To Company, at the address set forth on Exhibit A.

 

(b)
To MJNE:

 

MJ
Holdings, Inc.

2215
E. Anvil Road

Amargosa
Valley, Nevada 89020

Attn:
Paris Balaouras

Email:
Paris@mjholdingsinc.com

 

with
a copy to:

 

Adam
R. Fulton, Esq.

Jennings
& Fulton, LTD.

2580
Sorrel Street

Las
Vegas, Nevada 89146

afulton@jfnvlaw.com

 

    	15

    	 

    

 

15.
Amendment and Modification; Waiver. This Agreement may be amended, modified, or supplemented only by an agreement in writing signed
by each Party. No waiver by either Part of any of the provisions hereof shall be effective unless explicitly set forth in writing and
signed by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any
rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege.

 

16.
Assignment. Neither Party may assign, transfer, or convey this Agreement, in whole or in part, without the express prior written
consent of the other Party. Any attempted assignment of this Agreement by a Party without the prior written consent of the other Party
shall be considered void. Any such assignment and written consent shall be attached to this Agreement and shall be incorporated herein.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns.

 

17.
Regulatory Compliance; Severability. It is the intent of the Parties that this Agreement comply in all respects with all applicable
state and local laws, regulations, rules and interpretive case decisions, and the Parties have structured their relationship with that
specific intent. However, each Party understands that such laws, regulations, and case decisions are complicated and in a state of flux.
Therefore, in the event that any provisions of this Agreement is rendered invalid or unenforceable by a court of competent jurisdiction,
or the applicable laws and regulations are altered by any legislative or regulatory body, or either party notifies the other party in
writing of its reasonable belief that this Agreement or any of its provisions may be declared null, void, unenforceable, or in violation
of applicable laws or regulations, the remaining provisions, if any, of this Agreement shall nevertheless continue in full force and
effect. Furthermore, in such event the parties agree to negotiate in good faith an amendment to the Agreement to comply with law while
remaining consistent with the parties’ original intent to the fullest extent allowable by law.

 

18.
Governing Law. This Agreement shall be governed, interpreted, performed, and enforced solely in accordance with the laws of the State
of Nevada, without reference to principles of conflicts of law.

 

19.
Neutral Interpretation. The Parties acknowledge and agree that they have both participated in the negotiation of this Agreement and
its terms and have had the opportunity to have this Agreement reviewed by an attorney of their choosing. The Parties agree that no rules
of construction or interpretation shall be applied to this Agreement that would favor one party over the other, and that the Agreement
shall be interpreted neutrally. All headings and captions are provided for convenience of the reader only and shall not imply any interpretation
of the following subject matter in and of themselves.

 

    	16

    	 

    

 

20.
Dispute Resolution. The Parties agree to discuss in good faith any alleged 16 default or breach described in Section 13
(each generally constituting a failure to abide the terms of this Agreement) telephonically within 48 hours of such time as written
notice of the alleged breach is received by the Party alleged to have committed such breach or default. If the alleged issue is not
then resolved, then the Parties that authorized representatives of the respective Parties, with settlement authority, will meet in
person within seven days to attempt in good faith to resolve the issue. If the issue persists, then the Parties shall resolve the
dispute as set forth below. The foregoing shall not preclude any party seeking interim emergency injunctive relief in a court of
competent jurisdiction located in Clark County, Nevada or from pursuing injunctive relief under Section 7 hereof. The Parties agree
that the Party pursuing injunctive shall not be required to post a bond or shall be required to post the minimum bond required by
applicable law, to the extent a bond is not waivable. Nothing contained in this Section 20 precludes MJNE from terminating the
Agreement pursuant to Section 2(c).

 

(a)
Mediation. Except if emergency injunctive relief is required, any dispute, controversy, or claim arising out of or relating to this
Agreement (a “Dispute”) that cannot be settled through negotiation between the Parties shall be mediated by the Parties before
a single mediator in Clark County, Nevada, or any other place agreed to by the Parties. Either Party to this Agreement may invoke the
right to mediation set forth in this Section 20 (a) by sending written notice to the other Party of such invocation and setting forth
in adequate detail the nature of the matter to be mediated. The Parties to the mediation jointly shall appoint the mediator within 15
calendar days of receipt of the written notice. The mediation proceedings shall commence and be diligently pursued by the Parties to
this Agreement within 15 calendar days of the appointment of the mediator. Each Party to the mediation shall bear its own cost and expenses
incurred with respect to the mediation. The cost of the mediator and the mediation procedure shall be borne equally by the Parties.

 

(b)
Arbitration. Any Dispute that has not been settled or resolved by negotiation or through mediation to the satisfaction of the Parties
within 90 days of the notice of the invocation of mediation pursuant to Section 20(a) above (or such other date as the Parties may agree)
shall be resolved through binding arbitration. Either Party shall have the right to submit the Dispute to arbitration set forth in this
Section 20(b) by sending written notice to the other Party. The Parties shall name a single arbitrator within 20 calendar days after
such written notice. If the Parties fail to select an arbitrator, then each Party shall designate a third-party attorney duly licensed
and in good standing in the State of Nevada, which two designees shall together designate a third person, duly licensed as an attorney
in the State of Nevada, which person (if he or she accepts such appointment) shall be the arbitrator. If those designees cannot agree
on an arbitrator, then the arbitrator shall be selected in accordance with then existing rules and processes of the American Arbitration
Association (“AAA”). The arbitrator shall render a decision within 60 calendar days after his or her appointment and shall
conduct all proceedings pursuant to the then existing rules of AAA governing commercial transactions, to the extent such rules are not
inconsistent with Nevada law and this Agreement. The cost of the arbitration procedure shall be borne by the non-prevailing Party or,
if the decision is not clearly in favor of one Party or the other, then such costs shall be borne as determined by the arbitrator. The
arbitration procedure provided for in this Agreement shall be binding arbitration and shall be the sole and exclusive dispute resolution
mechanism for any applicable Dispute, except to the extent that judicial enforcement proceedings are necessary to give effect to the
resulting arbitral award.

 

    	17

    	 

    

 

21.
Limitations on Damages. MJNE shall not be liable to Company for any action or inaction, whether intentional or not, made any other
third party, including but not limited to, other parties that are conducting cultivation activities at the Cultivation Facility, which
affects Company’s ability to operate, grow or conduct sales pursuant to this Agreement. MJNE is only responsible to Company for
any willful or grossly negligent action on the part of MJNE or its direct employees. Company reserves the right to pursue claims against
any third-party vendor or MJNE affiliate.

 

Company
acknowledges and understands that there may be additional cannabis operators conducting grow operations at the Cultivation Facility.
As such, there is risk that an additional operator may jeopardize MJNE’s license to operate, thereby impacting Company’s
ability to operate. If another operator jeopardizes the license, or causes the license to be revoked or suspended, thereby negatively
impacting Company’s ability to conduct operations pursuant to this Agreement, Company agrees that MJNE shall have no liability
to Company for the same. Company enters into this Agreement with full knowledge of the foregoing and does so with the understanding and
willingness to accept the risk as stated herein.

 

22.
Venue. Any arbitration or other action to enforce or interpret this Agreement shall exclusively be in Clark County, Nevada.

 

23.
Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted
assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit
or remedy of any nature whatsoever, under or by reason of this Agreement.

 

24.
Federal Government Action. The Parties acknowledge that they are aware of and fully understand that despite the State of Nevada’s
marijuana laws and the terms and conditions of this Agreement, Nevada-licensed marijuana cultivators, transporters, distributors, or
possessors may still be arrested by federal officers and prosecuted under federal law. In the event of federal arrest, seizure, or prosecution
associated with the activities described in this Agreement, the Parties agree to hold each other harmless and agree to be individually
responsible for any attorneys’ fees associated with defending such actions. The Parties also agree to waive illegality as a defense
to any contract enforcement action related to this Agreement.

 

25.
Relationship of the Parties. This Agreement does not create any partnership or joint venture between the Parties. Company shall be
an independent contractor pursuant to this Agreement. Except as expressly set forth in this Agreement, neither Party shall have any express
or implied right or authority to assume or create any obligations on behalf of or in the name of the other Party or to bind the other
Party to any contract, agreement, or undertaking with any third party.

 

26.
Further Assurances. Each Party will execute and deliver such further instruments and take such further action as may be required
to carry out the intent and purpose of this Agreement.

 

    	18

    	 

    

 

27.
Entire Agreement. This Agreement represents the entire understanding between the Parties with respect to the subject matter hereof
and supersedes all other negotiations, agreements, representations, and covenants, oral or written. All the Recitals and Exhibits hereto
are hereby incorporated within the Agreement. In the event of any conflict between this Agreement and any other Agreement between the
parties, the terms and provisions of this Agreement shall control, unless specifically varied by a subsequent Agreement. This Agreement
may be amended or otherwise modified only by a written documents signed by each of the Parties hereto.

 

28.
Execution. The Parties may execute this Agreement in counterparts, all of which, when considered together, shall constitute one agreement.
This Agreement may be executed by DocuSign or any other e-signature method authorized by MJNE.

 

IN
WITNESS WHEREOF, the Parties have caused this Cultivation and Sales Agreement to be duly executed and delivered by their authorized representatives
as of the Effective Date.

 

	MJNE	 	COMPANY
	 	 	 	 	 
	MJ HOLDINGS, INC.	 	[INSERT NAME]
	 	 	 	 	 
	By:
    	 	 	By:	 
	 	Roger
    Bloss	 	 	[INSERT
    NAME] 
	 	Chief
    Executive Officer	 	 	
	 	 	 	Title:	 
	 	 	 	 	 
	Date: 		 	Date:	

 

    	19

    	 

    

 

EXHIBIT
A

 

SUMMARY
OF COMMERCIAL TERMS

 

COMPANY
LEGAL NAME: Green Grow Investments Corporation

 

COMPANY
ADDRESS: 2660 S. Rainbow Blvd., Suite H-108, Las Vegas, NV 89146

 

COMPANY
NOTICE INFORMATION:

 

Address:
2660 S. Rainbow Blvd., Suite H-108, Las Vegas, NV 89146

 

Attention
of: Jason Sheng Huang

 

Email:
jhpoa@yahoo.com Phone: 702-683-6188

 

with a copy to: N/A

 

 

 

 

 

DESIGNATED
ACREAGE:

 

For
Cultivation: 6 acres, subject to the restrictions set forth in the Deposit section below. Total: 10 acres

 

PRODUCT: As
of the Execution Date, Company anticipates growing on the Designated Acreage and selling in the State of Nevada the following
product or products:________________

 

 

 

DEPOSITS*:
Company shall only be allowed to utilize two acres of the Designated 6 acres until such time as Company makes the Third deposit as set
forth below. Upon payment of the Third deposit, Company shall be allowed to utilize an additional two acres, bringing the total useable
acreage to 4 acres. Upon payment of the Fourth Deposit, as set forth below, Company shall be allowed to utilize all 6 acres. The following
Deposits shall be made by the Company to MJNE: (i) a First Product Royalty Deposit of $50,000.00 to be applied to the first Product Royalty
or Product Royalties that become due and payable to MJNE (all Product Royalty Deposits made pursuant to this section are to be applied
to Product Royalties that become due and payable to MJNE) upon execution of this Agreement; (ii) a Second Product Royalty Deposit of
$150,000.00 shall be paid to MJNE upon the CCB approving the transfer of the Cultivation License to the Cultivation Facility; (iii) a
Third Product Royalty Deposit of $200,000.00 is due to MJNE upon Company completing its first harvest; (iv) a Fourth Product Royalty
Deposit of $200,000.00 is due to MJNE upon the Company completing its second harvest. For purpose of this section only, a “harvest”
is defined as the Company gathering or picking any of its cannabis crop from the Designated Acreage. Company shall make an additional
$20,000.00 Deposit to be applied to the first and last monthly Security and Compliance Fee at the time of the Second Deposit as set forth
above.

 

    	20

    	 

    

 

Notwithstanding
any to the contrary, upon the First Product Royalty Deposit, the Company shall be able to construct the allotted 10 acres according to
plan specification agreed between the parties. Further, Company shall be able to utilize the 4 acres not Designated for cultivation.

 

PRODUCT
ROYALTY*: 10%

 

Minimum
Monthly Product Royalty: Beginning with the first calendar month following the second anniversary of the date of the Commencement Notice,
$50,000.00 per month minimum Product Royalty is owed to MJNE from Company.

 

MONTHLY
SECURITY AND COMPLIANCE FEE*: $10,000.00

 

CULTIVATION
MANAGEMENT FEE (PAYABLE TO COMPANY)*: 90% of Net Sales Revenue

 

*All
sums payable are shown in and payable in U.S. Dollars.

 

    	21Exhibit 10.47

 

CULTIVATION
AND SALES AGREEMENT

 

This
CULTIVATION AND SALES AGREEMENT (this “Agreement”) is made and entered into as of the date last signed by either of the Parties
(as defined below) (the “Effective Date”) by and between MJ Holdings Inc., a Nevada corporation (“MJNE”) and
RK GROW LLC, a Nevada limited liability company (“Company”) (jointly, the “Parties” and, individually, a “Party”).

 

RECITALS

 

WHEREAS,
pursuant to the Regulations outlined by the Nevada Cannabis Control Board, as amended from time to time (the “Act” and together
with the rules and regulations thereunder, the “RTMA”), the State of Nevada Cannabis Control Board (“CCB”) has
issued a cultivation facility license pursuant to which MJNE may cultivate (grow), process, and package marijuana; sell marijuana to
retail marijuana stores; and operate marijuana product manufacturing facilities and sell to other cultivation facilities, which license
MJNE is in the process of moving to the Cultivation Facility (as defined below) (the “Cultivation License”);

 

WHEREAS,
Company represents that it has specialized knowledge, skills, technology, and experience in cultivation, and otherwise has the experience
and skill necessary to cultivate and manage the cultivation of marijuana necessary to operate such an operation in the State of Nevada;

 

WHEREAS,
as of the Effective Date, MJNE is in the process of finalizing the Cultivation Facility, as defined herein, and obtaining all approvals
required by the CCB and the State of Nevada and will provide Company notice of when it can begin operations pursuant to applicable law
and under this Agreement. The Parties agree that Company cannot commence operations at the Cultivation Facility under this Agreement
until such time as it has been so notified, in writing, by MJNE (the “Commencement Notice”) and MJNE cannot estimate when
the requisite approvals from the CCB and the State of Nevada will be forthcoming; and

 

WHEREAS,
MJNE and Company desire to enter into an agreement whereby MJNE retains Company to provide the cultivation of one or more lines of product
(as described on the Summary of Commercial Terms set forth on Exhibit A attached hereto and incorporated herein) for sale in the State
of Nevada under the Cultivation License (the “Cultivation Services”) at MJNE’s facility located at 2215 E. Anvil Road
Amargosa Valley, Nevada 89020 (the “Cultivation Facility”) on the terms and conditions set forth herein.

 

    	 

     

    

 

AGREEMENT

 

NOW
THEREFORE, in consideration of the foregoing recitals which are incorporated herein and made part of this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, agreeing to be legally bound,
hereby agree as follows:

 

1.
Engagement and Cultivation Rights. As of the Effective Date MJNE hereby engages Company, on a non-exclusive basis, and Company
hereby accepts such engagement and agrees, upon the terms and conditions set forth herein, to provide the Cultivation Services pursuant
to the terms and conditions set forth herein. Company hereby is granted the right to develop, manage, and produce on behalf of MJNE all
Company-branded products, including but not limited to those set forth on Exhibit A; provided, however, that (a) Company is authorized
by MJNE to produce all products that may be lawfully grown and distributed in Nevada pursuant to applicable law, including CCB guidelines
and the RTMA; (b) Company shall use commercially-reasonable efforts to maximize the production and sales of the products grown at the
Cultivation Facility under this Agreement, subject to compliance with all applicable laws; (c) Company shall commence making its improvements
to the Designated Acreage within 120 calendar days of the date of the Commencement Notice and shall begin cultivation on the Designated
Acreage (as evidenced by registration of the first plants with the CCB) by the first day of Spring following the Commencement Notice
or when the CCB approves cultivation activities at the Designated Acreage, whichever occurs later; and (d) Company complies with all
applicable laws, rules, and regulations, including but not limited to those pertaining to the labeling of product sold hereunder.

 

2.
Term; Renewal; Termination.

 

(a)
Term. This Agreement shall commence on the date of the Commencement Notice and shall continue for a period of 15 years thereafter
(the “Initial Term”), unless earlier terminated as provided in Section 2(b).

 

Renewal.
Upon expiration of the Initial Term, this Agreement shall automatically renew for one fifteen year term followed by automatic renewals
for successive five-year terms, or as the Parties otherwise agree in writing prior the expiration of the then-current term (each, a “Renewal
Term” and together with the Initial Term, the “Term”), unless either Party provides the other written notice of termination
at least sixty (60) days prior to the expiration of the applicable Term. MJNE agrees that it will approve the first fifteen year renewal
term so long as Company is not in default in the performance of this Agreement. The terms, covenants and conditions of any Renewal Term
shall be the same as the terms, covenants, and conditions in effect immediately prior to such renewal unless otherwise agreed by the
Parties in writing prior to the commencement of the new Renewal Term.

 

(b)
Termination. This Agreement may be terminated at any time upon the mutual agreement of the Parties or if Company fails to cure
any default or breach of the Agreement within 15 business days from notification of such breach/default (or such shorter time as required
by applicable law). In addition, upon the occurrence of any one of the following events, either Party may terminate this Agreement prior
to the end of the Initial Term or any Renewal Term by providing written notice to the other Party stating the intended date of termination:
(i) subject to Section 20, any breach or default of this Agreement by the other Party which remains uncured in accordance with Section
20(a) or Section 20(b) hereof; (ii) any grossly negligent or intentional or willful misconduct by the other Party; (iii) any federal
enforcement action of the type described in Section 24 against MJNE, Company, or any of their respective affiliates, employees or independent
contractors; (iv) any change or revocation of state or local law, regulation or licensing, that has the effect of prohibiting the legal
operation of the Cultivation Facility or the performance of the Cultivation Services; provided, however, that any change that only impacts
compliance and/or operation, or causes costs of goods to be more expensive or difficult shall not provide a basis for termination under
this clause (iv); and (v) CCB’s refusal to approve an application to renew, or revocation of, the Cultivation License. In the event
of any termination of this Agreement, Company personnel shall be denied access to the Cultivation Facility without the express permission
of MJNE. The Parties shall use reasonable commercial efforts to wind down operations of Company in an organized and efficient manner.
Company shall pay for and be responsible for any and all costs associated with winding down Company operations at the Cultivation Facility.

 

    	2

    	 

    

 

(c)
CCB Approval. The Parties acknowledge that this Agreement is subject to the approval of the CCB. The Parties will work together
in good faith to provide information to the CCB pursuant to applicable Nevada law. In the event that the CCB does not approve this Agreement
or that the Cultivation License is not authorized for use at the Cultivation Facility, the Agreement shall be terminated and neither
Party shall have any obligation to the other under this Agreement or arising in connection with this Agreement, including any obligation
related to costs or expenses incurred in anticipation of such approval by either Party excepting that MJNE shall return any deposit Company
may have forwarded in anticipation of approval Alternatively, if both Parties agree, the Parties may elect to work together in good faith
to modify the Agreement to bring it into conformance with CCB guidelines/requests and to further extend the Agreement.

 

3.
Obligations of Company. The following obligations of Company are in addition to any and all obligations set forth elsewhere in
this Agreement (including, without limitation, those in Section 1, above), or imposed by applicable law, rule, or regulation, including
any orders or policies promulgated by the CCB.

 

(a)
Compliance. Company shall (i) be responsible for the logistics, development, ingredient sourcing, cultivation, preparation and
storage at or from the Designated Acreage (as defined below), and sale of the its products and (ii) comply at all times with the RTMA
and all applicable rules, regulations and requirements in the provision of the Cultivation Services, subject to MJNE’s good faith
assistance and cooperation; provided, that MJNE has the right to require Company to take any and all reasonable actions that MJNE deems
necessary or advisable to ensure compliance with RTMA or any other applicable rules, requirements or regulations. The Parties shall cooperate
and work together to take any action necessary in furtherance of, in compliance with, or otherwise in any way related to any change whatsoever
in any applicable law, rule, statute, regulation, the entitlement and/or approval process, or other process or requirement related to
the Cultivation Services that comes into being, occurs, accrues, becomes effective or otherwise becomes applicable or required after
the Effective Date. Company shall follow, conform to and abide by any such changes and any regulatory matters. Company shall further
address and cure any noncompliance and pay any fines or assessments arising in connection with the failure of the Company or any of its
employees or independent contractors to comply with applicable law and all other costs associated therewith.

 

(b)
Standard of Care. Company will perform the Cultivation Services in compliance with best industry practices, applicable law, permits,
the terms and conditions of this Agreement (including the Policies and Procedures, as defined below) and otherwise operate in a commercially
reasonable manner (the “Standard of Care”).

 

    	3

    	 

    

 

(c)
Packaging. Company shall comply with all legal requirements pertaining to the labeling of its products grown or produced at the
Cultivation Facility, including any regulatory approval of such labels, which labels share bear MJNE’s approved logo in such a
manner as shall be directed by MJNE.

 

(d)
Insurance. Prior to commencing operations under this Agreement, Company shall obtain, and thereafter, through the Term, shall
maintain industry-standard insurance for an operation comparable to that contemplated, including the Cultivation Services, including
workers’ compensation insurance and product liability insurance, the scope and policy limits of which insurance shall be subject
to MJNE’s approval. Without limiting the foregoing, during the Term, Company shall maintain a policy of commercial general liability
insurance (sometimes known as broad form comprehensive general liability insurance) insuring Company against liability for bodily injury,
property damage (including loss of use of property) and personal injury arising out of the operation, use, or occupancy of the Cultivation
Facility. Company shall name MJNE and its affiliates, and their respective officers, directors, and employees, as additional insureds
under such policy or policies and shall provide a certificate of insurance or policy endorsements acceptable to MJNE prior to commencing
operation but no later than 20 calendar days from obtaining its initial coverage and upon each renewal. Coverage shall be for no less
than US$1,000,000 per occurrence; shall be provided by a carrier reasonably acceptable to MJNE; and with a deductible or retention amount
reasonably acceptable to MJNE. MJNE may require a reasonable increase in coverage amounts during the Term. The amount and scope of coverage
of such insurance shall not limit Company’s liability nor relieve Company of any other obligation under this Agreement. MJNE may
also obtain comprehensive public liability insurance in an amount and with coverage determined by MJNE insuring MJNE against liability
arising out of the ownership, operation, use, or occupancy of the Cultivation Facility, including the Designated Area. Any insurance
obtained by MJNE shall not be contributory and shall not provide primary insurance. Company’s insurance policies shall provide
that MJNE shall be notified if there is a lapse in coverage, a pending lapse in coverage, or if any claim has been made upon such coverage.
MJNE also may require Company to maintain, during the term of this Agreement, a policy of commercial loss of income insurance (business
interruption insurance) insuring the Company and MJNE against loss of income resulting from Company’s inability to operate and/or
produce product. MJNE shall provide Company a 30-day notice requiring Company to obtain such loss of income insurance.

 

(e)
Labor Matters.

 

(i)
Company may utilize subcontractors to provide any of the Cultivation Services so long as such subcontractors are selected by Company
with due care and Company has reasonable assurances that such subcontractors can perform the Cultivation Services pursuant to the requirements
of this Agreement, including the Standard of Care; provided, however, that no such utilization will relieve Company of any of
its obligations or liabilities under this Agreement. Neither Company nor the employees, contractors, or agents of Company providing Cultivation
Services hereunder will be considered employees of MJNE for any purpose. Company will be solely responsible for all matters pertaining
to the employment, supervision, compensation, promotion, termination, daily direction, and control of its employees.

 

    	4

    	 

    

 

(ii)
Company is responsible for payment of all compensation, benefits and employer taxes related to such persons and any fines or other regulatory
matters arising in connection with employment matters, including but not limited to the failure of Company or any of its employees or
independent contractors to comply with applicable laws. In furtherance and not in limitation of the foregoing, Company represents and
warrants to MJNE that it will use the Standard of Care (i) to obtain and maintain all permits, certificates and licenses necessary for
Company to provide for the employment of its employees and independent contractors as may be required under the applicable laws of the
State of Nevada, and (ii) to comply with (A) all applicable laws relating to hiring practices, workplace safety and health, payment of
wages and overtime, employee benefits, and employment discrimination, (B) the Immigration Reform and Control Act of 1986, and (C) all
other applicable laws governing the employment relationship between Company and its employees.

 

(iii)
Company shall use the Standard of Care to (A) provide reasonable health protection and safety equipment to all of its employees and independent
contractors at the Cultivation Facility; (B) direct its employees and independent contractors to properly dress at the Cultivation Facility,
including without limitation wear closed-toe shoes; (C) prohibit horseplay, roughhousing, or sports play in the Cultivation Facility;
and (D) train its employees and independent contractors in proper safety procedures and the Policies and Procedures (as described below).

 

(f)
Policies and Procedures. Company shall comply with all policies and procedures, as approved by the CCB, as may be communicated
to Company by MJNE from time to time, including, without limitation, the policies and procedures set forth on Exhibit A attached hereto,
and the sexual harassment rules adopted by MJNE (collectively, the “Policies and Procedures”). Company shall provide MJNE
a copy of any written operations manual including all standard operating procedures for its processes at the Cultivation Facility, and
any amendments thereto.

 

(g)
Use and Maintenance of the Cultivation Facility.

 

(i)
MJNE shall permit Company to use the acreage identified as the “Designated Acreage” on Exhibit A for Cultivation Services,
subject to any limitations set forth on Exhibit A.

 

(ii)
Company shall be responsible for and pay for all maintenance of the Designated Acreage, which shall be maintained in accordance with
the Policies and Procedures (or, if no written Policies and Procedures have been provided by MJNE, in accordance with the directions
of MJNE) and applicable laws, rules, and regulations.

 

(iii)
MJNE shall determine the location of the Designated Acreage within the Cultivation Facility, in its sole but reasonable discretion.

 

    	5

    	 

    

 

(h)
Supplies, Equipment and Tools. Company shall be responsible for the selection, purchase, and acquisition of all supplies, equipment,
and tools required to deliver the Cultivation Services (the “Equipment”), which Equipment shall remain the property of Company.
Company shall use commercially-reasonable efforts to mark otherwise designate its Equipment as its property and shall maintain (and provide
to MJNE from time to time, upon MJNE’s reasonable request) an accurate record identifying its property. Company shall have the
right, at its own cost, to install or attach cultivation structures and equipment on the Designated Acreage; provided, however, that
(A) such structures and equipment meet the requirements or specifications of the CCB and applicable laws, rules, and regulations; (B)
all specifications and plans for structures and equipment be provided in advance to MJNE, along with copies of such documents that are
required to be submitted to any applicable regulatory authority; (C) no equipment or structures that are subject to regulatory approval
shall be installed or place on the Designated Acreage without the receipt of any necessary regulatory approval; and (D) any structures
or equipment that are affixed, meaning attached to the ground permanently, to the Designated Acreage shall become the property of MJNE
upon the expiration or termination of this Agreement for any reason (further provided that MJNE, in its sole but reasonable discretion,
may require Company to remove such structures or equipment at Company’s sole expense upon the expiration or termination of this
Agreement for any reason).

 

(i)
Testing. Company shall cooperate with MJNE to implement all actions necessary for product testing and analytics for all products
produced and developed at the Cultivation Facility by or on behalf of Company to ensure compliance with the RTMA and all other applicable
rules, regulations, requirements, and laws. MJNE shall facilitate the testing of products by a duly-licensed laboratory or testing provider,
provided that Company shall pay all costs and expenses related to that testing. Each Party shall be provided copies of the results of
any product testing. No product produced at the Cultivation Facility by or on behalf of Company shall be sold or distributed without
such testing and only in compliance with all applicable laws, rules, and regulations pertaining thereto.

 

(j)
Records, Record-Keeping, and Reporting.

 

(i)
Company shall maintain its books and records in accordance with generally accepted account principles and shall maintain accurate records
of all product sales and such other business metrics and details as may be required by the CCB and applicable law. At least once per
calendar month, on or before the 15th of the month, Company shall provide MJNE with a detailed report of the immediately preceding
month’s sales. Company must use the accounting and tracking system required by the CCB from time to time and as delegated to Company
by MJNE (as of the Effective Date, the CCB-designated seed-to-sale tracking compliance system is Metrc Nevada (“Metrc”)).
All sales must be accompanied by a sales report, delivery manifest and cash receipts. Product sales and all pertinent data shall be input
through Metrc, as directed by MJNE (or such other tracking and compliance system as may be designated by the CCB from time to time) and
shall be subjected to audit by MJNE, as set forth below. Company shall maintain sales and cost accounting records and supporting documentation
for at least five years after the pertinent period, or such longer period as may be required by applicable law. Company shall maintain
its records in readily-accessible electronic format using commercially-available software.

 

    	6

    	 

    

 

(ii)
Company shall maintain at the Designated Acreage, with MJNE’s oversight and input, complete and accurate records related to the
provision of Cultivation Services, including, without limitation, financial records, sales reports, sales invoices, maintenance of all
required Agent Cards, human resources, and safety records.

 

(iii)
Upon reasonable advance notice, and during normal business hours, MJNE or an agent designated by MJNE shall have access to such records
and supporting documentation to the extent sufficient to audit such materials and to assess and verify gross revenue generated by the
Designated Acreage, in accordance with this Agreement. MJNE shall have the right to review the sales records and supporting documentation
records with respect to the Cultivation Services. Any such review shall be solely the expense of MJNE and shall not occur more frequently
than quarterly; provided, however, that if MJNE determines a material disparity between the results of operation reported by Company
and the results of MJNE’s audit, in MJNE’s sole but reasonable determination (it being agreed and understood that a disparity
of five percent or greater will be considered material), then MJNE may review Company’s records more frequently (“Additional
Audits”) and may require Company to bear the costs of the same. Additional Audits shall be terminated in the event that two sequential
audits result in discrepancies less than 5 percent. Notwithstanding the foregoing, Additional Audits may be trigger in the event that
a material disparity exists as set forth herein. The access to records that is the subject of this subsection shall be in addition to
MJNE’s rights set forth in Section 10 of this Agreement.

 

(k)
Agent Cards. Each employee and independent contractor of Company intended to work at the Cultivation Facility must obtain a state-issued
marijuana agent card (“Agent Card”) from the CCB prior to commencing work at the Cultivation Facility and must maintain an
active Agent Card in good standing in order to work at the Cultivation Facility at all times. MJNE shall submit all initial applications
and renewals, subject to the following: (i) Company must provide MJNE with all applicable information and material necessary to process
each initial application, and must ensure that each employee and independent contractor cooperates with the application process; (ii)
in the case of renewal filings, Company must provide (and ensure that the applicable employee or independent contract provides) all necessary
information and material necessary for MJNE to submit the requisite online filing at least 30 business days before the filing is due;
and (iii) Company shall pay all costs, fees, and expenses related to the Agent Card and application/renewal processes, in advance.

 

(l)
Access. MJNE shall provide such access to the Designated Acreage to Company as MJNE deems reasonably necessary and appropriate
to allow Company to provide the Cultivation Services. Company shall ensure that guests at the Designated Acreage shall be kept to a minimum.
Company shall ensure that all its guests at the Designated Acreage are always escorted by an authorized and appropriate agent of Company.
Under no circumstances shall Company personnel, including its management, employees, independent contractors, or guests, enter any portion
of the Cultivation Facility other than the Designated Acreage without prior written approval of MJNE.

 

    	7

    	 

    

 

(m)
Security for Designated Acreage. Company shall install and maintain at the Designated Acreage, at its sole expense, such fences,
walls, doors, locks, security systems, camera systems, fire alarms and other security apparatus, including, without limitation, intrusion
and motion detection, panic buttons, duress alarm and internal and external video surveillance as may be necessary to meet the requirements
of Nevada laws, or as may be directed by the CCB or any other regulatory body with authority over the Cultivation Facility. Company shall
submit its security plan to MJNE for its approval prior to installing any fences, walls, or doors, which approval may be denied or conditioned
by MJNE, in its sole but reasonable discretion

 

(n)
Marketing. Company shall have the right to develop, direct, maintain, and expand the marketing, branding, and pricing strategies
for all products produced by Company at the Cultivation Facility, or otherwise, subject to compliance with applicable rules, regulations,
and requirements. The foregoing notwithstanding, MJNE shall have the right to approve in advance all packaging and product representation
and claims.

 

4.
Fees and Expenses. As further set forth in Section 5, below, MJNE shall collect revenue from the sale of the products produced
by Company hereunder, which revenue shall be for MJNE’s account. As set forth below, Company shall earn a management fee (the “Cultivation
Management Fee”) based on the total invoiced amount for the sale of such product (each sale, an “Order”), after the
deduction of taxes paid in connection with such Order, as set forth below. If MJNE is owed any fees or expenses hereunder attributable
to an Order and funds are not available from the proceeds of such Order (whether because of customer non-payment or otherwise), then
MJNE shall invoice Company for such fees and expenses, which invoice will be paid in full by Company within 10 business days of the date
of invoice. Alternatively, and in its sole discretion, MJNE may deduct such fees and expenses related to an Order from the Cultivation
Management Fee otherwise payable from the proceeds of a prior or subsequent Order.

 

(a)
Deposits. Upon execution of this Agreement, Company shall pay MJNE the sums identified as “Deposits” on Exhibit A.
Each of these sums shall be non-refundable except in the following events: (i) where this Agreement is not approved by the CCB; (ii)
the Cultivation License is not approved for use at the Cultivation Facility; or (iii) the Company has exercised its options to terminate
under Addendum 1.

 

(b)
Security and Compliance Fee. Company shall pay MJNE the Security and Compliance Fee for the Cultivation Facility as whole as
set forth in Exhibit A to compensate MJNE for certain security and regulatory compliance expenses incurred by MJNE. This fee shall be
paid monthly by the first of each month throughout the Term commencing with the first of the month immediately following the date of
the Commencement Notice and may be deducted from any deposits or other funds of Company (including funds otherwise payable as the Cultivation
Management Fee, defined below, then in the possession of MJNE). Amounts unpaid by the 10th of the month shall be considered
past due and shall incur a late fee of $500.00. The Security and Compliance Fee shall be increased by MJNE each year based on an increase
in the regional cost of living but not less than 1.5% per year and not more than 10% in any five-year period.

 

MJNE
reserves the right to install additional fencing and other security measures at the Cultivation Facility (including on and around the
Designated Acreage) and to charge Company a pro rata share of the cost thereof, which will be promptly paid by Company upon invoicing
excepting any currently planned or existing perimeter fencing and cameras for the initial phase of perimeter security.

 

    	8

    	 

    

 

(c)
Royalty. Company shall pay MJNE a percentage of all invoiced Orders less applicable taxes (the “Product Royalty”).
The Product Royalty rate is set forth on Exhibit A hereto and is subject to the minimum royalty set forth therein. Such payments are
due and payable by Company upon sale of product regardless of whether the purchaser has paid all or any part of the purchase price. Company
shall be entitled to a credit or credits for any authorized returns. In the event that Company and MJNE is unable to collect from a purchaser
the total amount owed to MJNE and Company for an Order, Company is still obligated to pay the Product Royalty to MJNE for the total amount
of the invoiced Order to purchaser

 

(d)
Cultivation Management Fee. Company shall earn a Cultivation Management Fee based on the Net Sales Revenue, at the rate set forth
on Exhibit A. For purposes hereof, “Net Sales Revenue” means gross revenue actually realized from an Order less any returns
or credits authorized by MJNE related to such Order and less Order Expenses (as defined in subsection (e)) related to such Order. As
stated elsewhere in this Agreement, MJNE may retain the following prior to distributing the Cultivation Management Fee to Company to
the extent that MJNE has not otherwise recouped such sums: (i) all Order Expenses related to a prior Order; (ii) the monthly royalty
set forth in subsection (c), above, as well as any Product Royalty related to a prior Order; (iii) the security and compliance fee set
forth in subsection (b), above related to a prior Order; (iv) any returns or credits authorized by MJNE related to such product; and
any other fees, expenses, or other sums of money owed to, or invoiced by MJNE to Company. Further, to the extent that Company separately
has paid MJNE for any Order Expenses, such sums will not be included in the determination of Net Sales Revenue (i.e., such sums will
not be double counted). For the sake of clarity, MJNE may deduct from the Cultivation Management Fee paid to Company any or all sums
owed to it from a prior Order or prior Orders, and any other fees and expenses owed to MJNE by Company.

 

(e)
Order Expenses. Company shall pay MJNE for all direct expenses incurred in connection with the Cultivation Services without limitation,
including those described in Section 6, as well as the cost of testing product; delivery of product; pick-up and processing of payments;
and any other reasonable cost or fee and, as well any late fee, interest or other obligation due from Company to MJNE. Such expenses
that are directly attributable to a specific Order, such as the cost of testing product; delivery of product; pick-up and processing
of payments; and taxes payable to the State of Nevada related to a specific order, are the “Order Expenses;” provided, however,
that if Company separately has paid Company for such taxes related to a specific order, they will not be included in the term Order Expenses
as to that Order.

 

(f)
Build Out Payment. Company shall pay MJNE for any and all reasonable expenses MJNE incurs in building out or assisting with the
build out of the Designated Acreage as agreed to between the Parties. Such expenses shall not be billable unless previously approved
by all parties in writing.

 

(g)
Disbursement. MJNE shall pay Company the Cultivation Management Fee pursuant to Section 4(g), on or before the 10th
of each month, for the preceding month’s fee.

 

    	9

    	 

    

 

(h)
Examples. By way of example only, and without any inference that the sums reflected below are or should be expected or reflect
anticipated revenue or expenses,

 

(i)
The following represents an example of a Product Royalty calculation and a Cultivation Management Fee calculation where (A) the Product
Royalty rate is 10%; (B) the Cultivation Management Fee is 90% of Net Sales Revenue:

 

	 	1.
    	Company
    sales 100 lbs of flower at Fair Market Value (“FMV”) at $2,100.00 per lbs;
	 	2.	Billed
    amount of Order equals $210,000.00;
	 	3.
    	MJNE
    collects $210,000.00;
	 	4.
    	Taxes
    paid to state equal $36,400.00 (At current tax rate based of the FMV of $2,100/lb, NOTE that if the product was sold at $1,800/lb
    it would still be taxed at the FMV rate of $2,100/lb)
	 	5.	Net
    after taxes equals $173,600.00;
	 	6.	Product
    royalty of 10% paid to MJNE equals $17,360.00
	 	7.
    	Security
    and Compliance Fee has not yet been paid and is deducted by MJNE from this Order equaling $10,000.00
	 	8.
    	Other
    order expenses equal $6,250.00: testing ($6,000.00) (based on 20 test @ 5lb batches @ $300.00 per test), ($250.00) (transportation
    cost).
	 	9.
    	Money
    owed to Company $139,990.00 paid on the 10th of the following month.

 

(ii)
The following represents an example of the distribution of the Cultivation Management Fee shown in subsection (i), above, at such time
as there are outstanding fees payable to MJNE:

 

	 	Cultivation
    Management Fee:	$139,990.00
	 	Taxes
    paid to State for prior Order:	$22,000.00
	 	Order
    Expenses from prior Order:	$20,000.00
	 	Final
    Cultivation Management Fee:	$97,990.00
    ($139,990-$22,000-$20,000)

 

5.
Sales; Collections; and Payments.

 

(a)
Company shall sell product on behalf of MJNE. All sales shall be timely and properly recorded and data entered into the sales tracking
system and MJNE will arrange for collection of sales proceeds via a third-party courier; notwithstanding, MJNE is not responsible for
such collections in the event of non-payment or dispute. Company acknowledges that MJNE is required to remit taxes as promulgated by
the State of Nevada on the sales of all product/cultivation goods and for any product sold, regardless of whether the proceeds of such
sale have been remitted, cleared, or paid in full. As such, to the extent that MJNE has paid taxes related to the products that are the
subject of this Agreement, Company is responsible to reimburse MJNE. Notwithstanding anything set forth in this Agreement to the contrary,
MJNE shall have the right to invoice Company for the reimbursement of taxes attributable to one or more Orders, and Company shall remit
such funds to MJNE immediately upon receipt of the invoice.

 

    	10

    	 

    

 

(b)
In addition to any other expenses or fees set forth herein, MJNE may invoice Company for any reasonable direct out-of-pocket expenses
incurred by MJNE in connection with Company operations, plus a 15% administrative charge if these fees are not paid within 20 days. MJNE
invoices to Company are due and payable within 14 calendar days of receipt by Company unless such invoice is for an amount in excess
of $2,000; in each such case that invoice shall be due and payable within 20 calendar days and, if not then timely paid, may be paid
to Company from any Company funds then in the possession of MJNE, including any Cultivation Management Fee that otherwise would be payable
to Company.

 

(c)
Company shall sell product only to a licensed marijuana dispensary, production facility, or cultivation facility, in accordance with
the Cultivation License.

 

6.
Company’s Operating and Related Expenses. Without limiting any other provision of this Agreement, Company shall be solely
responsible for all costs and expenses necessary to perform the Cultivation Services as contemplated by this Agreement, including, without
limitation, all materials, build out costs, electrical, utilities, fencing (which may be prepaid by MJNE and will be reimbursed by Company
to MJNE), installation of water piping, trenching, grading, installation of concrete slabs, building construction, soil development,
equipment, vehicles, mobile phones, computers, and labor, including, without limitation, all wages, benefits (if any), taxes, withholding,
workers’ compensation insurance, payroll processing, uniforms, tools, training and education, and all other employee-related costs
and anything else related to Company operations.

 

7.
Confidential Information; Insider Trading.

 

(a)
Definition. “Confidential Information” means nonpublic information that one Party (the “Disclosing Party”)
designates as being confidential or which, under the circumstances surrounding disclosure, ought to be treated as confidential, including,
but not limited to: all (i) financial, operational, and other information relating to the Disclosing Party; (ii) confidential information
and trade secrets of the Disclosing Party; (iii) lists of customers or referral sources; (iv) business, financial, and other information
received from a customer or any other third party that the Disclosing Party is obligated to treat as confidential; (v) financial statements
and other financial information; (vi) any present or future business or strategic plans, services, trade secrets, designs, recipes, processes,
procedures, or other business or technical information of the Disclosing Party; and (vii) any other information designated, either orally,
in writing, or by any other means, as confidential. Confidential Information does not include information that: (x) is or becomes generally
available to the public other than because of a disclosure by the Party receiving such information (the “Receiving Party”);
(y) was in the Receiving Party’s possession prior to disclosure by Disclosing Party as shown by written records of the Receiving
Party dated prior to the date of this Agreement.

 

    	11

    	 

    

 

(b)
Confidentiality Obligations. The Receiving Party agrees: (i) to hold all Confidential Information in strict confidence and to
take commercially reasonable precautions to protect the confidentiality of such Confidential Information (including, without limitation,
all precautions the Receiving Party employs with respect to its own confidential or proprietary materials of any kind); (ii) not to divulge
any Confidential Information or any information derived therefrom to any third person without the express prior written consent of the
Disclosing Party, which may be granted or withheld at the Disclosing Party’s sole discretion, or unless compelled to do so by a
court of competent jurisdiction or regulatory authority, and then only after providing the Disclosing Party, to the extent allowable
under law or regulation, with an opportunity to enjoin the disclosure; and (iii) not to encourage or facilitate any third party to do
any of the actions prohibited in the foregoing items.

 

(c)
Return of Confidential Information. It is further understood that all Confidential Information provided by the Disclosing Party
to the Receiving Party remains the sole property of Disclosing Party, and upon written request shall immediately be returned by the Receiving
Party, together with all copies.

 

(d)
Enforcement. Each Receiving Party agrees that, in the event of any breach of this Agreement by it, such breach will cause
irreparable harm to the Disclosing Party, and monetary damages will not be sufficient or may not be adequately quantified, and as such,
the Disclosing Party shall be entitled to specific performance, injunctive relief, or other equitable remedies as may be available to
it, which remedies shall be cumulative and non-exclusive, and in addition to such other remedies as it may otherwise have at law or in
equity.

 

(d)
Insider Trading. Company acknowledges that the stock of MJNE is publicly traded and that MJNE is subject to federal and state
securities laws, rules, and regulations, including those under the oversight of the United States Securities and Exchange Commission.
Company and its representatives may become aware of material non-public information regarding MJNE in the performance of the Cultivation
Services or otherwise in connection with its relationship with MJNE. Company acknowledges that engaging in any transaction in MJNE’s
stock while in possession of material nonpublic information, as well as providing material nonpublic information to others who may engage
in a transaction in MJNE’s stock while in possession of such information, may subject Company or MJNE or both (as well as their
respective officers and directors) to civil and potentially criminal liability. Accordingly, Company and its officers and directors shall
ensure that neither the Company, its officers, directors, and members of their respective immediate families, will engage in transactions
in MJNE’s stock while in possession of material non-public information and, to the extent that any employees, independent contractors,
or other parties associated with Company are or become in possession of material nonpublic information concerning MJNE, Company shall
use commercially-reasonable efforts to ensure that they do not engage in such transactions.

 

    	12

    	 

    

 

8.
Representations and Warranties. The Parties respectively represent and warrant to each other that: (a) it is duly organized, validly
existing and in good standing as a limited liability company or corporation under the laws of the state of its domicile; (b) it has the
full right, power and authority to enter into this Agreement and to perform its obligations hereunder; (c) the execution of this Agreement
by its representative whose signature is set forth at the end hereof has been duly authorized by all necessary corporate action of the
Party; and (d) when executed and delivered that Party, this Agreement will constitute the legal, valid and binding obligation of that
Party, enforceable against that Party in accordance with its terms. MJNE further represents and warrants that: (x) it is, or will be
prior to the commencement of any Cultivation Services hereunder, the holder of the Cultivation License; (y) the Cultivation License is
duly and validly issued, and shall be maintained during the entire Term; and (z) the Parties’ respective rights and obligations
under this Agreement are permitted activities under the Cultivation License, provided Company complies with its obligations under this
Agreement and applicable law. Company further represents that (A) it has sufficient financial resources to engage in the operation contemplated
hereby; and (B) that none of the persons that owns an interest in Company, directly or beneficially, is a “Specially Designated
National” or “Blocked Person.” “Specially Designated National” or “Blocked Person” means (i)
a person designated by the U.S. Department of Treasury’s Office of Foreign Assets Control from time to time as such status, (ii)
a person described in Section 1 of U.S. Executive Order 13224, issued September 23, 2001, or (iii) a person otherwise identified by government
or legal authority as a person with whom we or our affiliates are prohibited from transacting business. Currently a list of such designations
is published under the internet website address http://sdnsearch.ofac.treas.gov/. The text of the Executive Order is published at www.ustreas.gov/office/enforcement/ofac.

 

9. Indemnification.
For purposes of this Agreement, the term “Affiliate” means any person or entity that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under common control with, a Party. Each Party (respectively an
“Indemnifying Party”) shall indemnify and save harmless the other Party and its agents, officers, directors, members,
managers, directors, employees, and Affiliates (each an “Indemnified Party”) from and against any and all actions,
claims, costs (including attorneys’ fees), fines, damages, judgments, and liabilities whatsoever, including without limitation
any product liability claims, in law or equity, arising out of or caused by (a) any breach by the Indemnifying Party of this
Agreement, (b) the Indemnifying Party’s operations at the Cultivation Facility or performance as contemplated under this
Agreement, (c) obligations that either Indemnifying Party is alleged to have or have had with respect to Indemnifying Party’s
employees to make payments, contributions or withholdings under any applicable federal, state or local laws pertaining to
workers’ compensation, unemployment, social security or income or other taxes, (d) any and all claims against Indemnified
Party of whatever nature arising from any act, omission or negligence of Indemnifying Party, its contractors, licensees, agents,
servants, employees, invitees, or visitors, arising from any accident, injury, damage or any other reason, (e) any claims, suits,
charges, proceedings or actions for workers’ compensation benefits or awards filed against Indemnified Party by or concerning
Indemnifying Party’s employees, (f) any grossly negligent acts, omissions or deliberate, willful or intentional misconduct or
malfeasance, of Indemnifying Party’s employees while performing services or other obligations contemplated under this
Agreement; and (g) any damage to the Cultivation Facility caused by Indemnifying Party’s gross negligence or willful
misconduct.

 

10.
Inspections and Audits. The Parties acknowledge and agree that the Cultivation Facility may be subject to inspection by CCB and
that CCB may perform audits of all activities licensed under Nevada law. As such, the Parties agree to fully cooperate in good faith
with any such inspection or audits. MJNE shall have the right (but not the obligation) to inspect and direct corrections at the Cultivation
Facility at any time without prior notice or consent; provided, however, that Company may not rely on the results of any such inspection
as evidence that it is in compliance with applicable law.

 

    	13

    	 

    

 

11.
Taxes. Each of the Parties shall be responsible for its own taxes (including all personal property taxes) that are incurred as
a result of that Party’s activities pursuant to this Agreement, and no Party shall be liable to any other Party for contribution
or otherwise related to the payment of any taxes. Any taxes imposed shall be paid at the level they are imposed.

 

12.
Limited MJNE License; No Other Intellectual Property Licenses.

 

(a)
MJNE hereby grants Company a non-exclusive limited, royalty free, license to use its name, trademarks, and other trade dress in the performance
of the Cultivation Services in the State of Nevada during the Term. Except for the foregoing license, nothing herein shall be construed
or interpreted as to give Company any right, title, interest, or license to use any intellectual property of MJNE or any of its affiliates.
Apart from the license granted in this section, Company shall not use MJNE’s name or brand in any way without the prior written
consent of Company. Any authority granted to Company hereby may be revoked by MJNE upon commercially reasonable notice being given.

 

(b)
Nothing herein shall be construed or interpreted as to give MJNE any right, title, interest, or license to use any intellectual property
of Company or any of its affiliates. MJNE shall not use the Company name or brand in any way without the prior written consent of Company,
except as may be necessary to perform any of the services undertaken under this Agreement (e.g., the filing of applications for Agent
Cards).

 

(c)
Company expressly acknowledges and agrees that in addition to other third parties that may be granted the right to conduct grow operations
at the Cultivation Facility, Company or its affiliates, on their own behalf, may engage in grow operations at the Cultivation Facility.
Notwithstanding anything set forth in this Agreement to the contrary, Company shall have no right to interfere with or object to any
other licenses granted by Company nor any activities conducted by MJNE or its affiliates, including those that may be deemed competitive
with Company.

 

13.
Events of Default.

 

(a)
Events of Default by Company. Company shall be in default hereunder if any one or more of the following events happen, and Company
fails to cure such default within 15 days following written notice from MJNE (or such lesser period of time required under Nevada laws):
(i) Company fails to act in accordance with, or is alleged by a federal, state, or county state regulatory authority or administrative
body that it has violated, any law, rule, or regulation, including but not limited to any regulations promulgated by the CCB, including
the RTMA; (ii) the filing by Company of a voluntary petition of bankruptcy or a voluntary petition or answer seeking reorganization,
rearrangement, or readjustment of its debts, or any relief under any bankruptcy or insolvency act or law, now or hereafter existing,
or any agreement by Company indicating consent to, approval of, or acquiescence in, any such petition or proceeding or face involuntary
bankruptcy; (iii) the application by Company or the consent or acquiescence of Company in the appointment of a receiver or trustee for
all or a substantial part of any of its properties or assets; (iv) the making by Company of a general assignment for the benefit of creditors;
(v) the inability of Company or the admission of Company in writing of its inability to pay its debts as they mature; (vi) the filing
of an involuntary petition against Company seeking reorganization, rearrangement or readjustment of its debts or for any other relief
under any bankruptcy or insolvency act or law, now or hereafter existing, or the involuntary appointment of a receiver or trustee for
Company for all or a substantial part of its property or assets, or the issuance of a warrant of attachment, or execution of similar
process against a substantial part of the property of Company and the continuance of such for 120 days undismissed or undischarged; or
(vii) the failure by Company to perform or comply with any material covenant or agreement in this Agreement. If Company fails to cure
the default within 15 days, MJNE has the right to terminate the Agreement pursuant to Section 2(c).

 

    	14

    	 

    

 

(b) Events
of Default by MJNE. MJNE shall be in default hereunder if any one or more of the following events happen, and MJNE fails to cure
such default within 30 days following written notice from Company (or such lesser period of time required under Nevada laws): (i)
the revocation of the Cultivation License by the State of Nevada; (ii) the filing by MJNE of a voluntary petition of bankruptcy or a
voluntary petition or answer seeking reorganization, rearrangement, or readjustment of its debts, or any relief under any bankruptcy
or insolvency act or law, now or hereafter existing, or any agreement by MJNE indicating consent to, approval of, or acquiescence
in, any such petition or proceeding or face involuntary bankruptcy; (iii) the application by MJNE or the consent or acquiescence of
MJNE in the appointment of a receiver or trustee for all or a substantial part of any of its properties or assets; (iv) the making
by MJNE of a general assignment for the benefit of creditors; (v) the inability of MJNE or the admission of MJNE in writing of its
inability to pay its debts as they mature; (vi) the filing of an involuntary petition against MJNE seeking reorganization,
rearrangement or readjustment of its debts or for any other relief under any bankruptcy or insolvency act or law, now or hereafter
existing, or the involuntary appointment of a receiver or trustee for MJNE for all or a substantial part of its property or assets,
or the issuance of a warrant of attachment, or execution of similar process against a substantial part of the property of MJNE and
the continuance of such for 120 days undismissed or undischarged; or (vii) the failure by MJNE to perform or comply with any
material covenant or agreement in this Agreement.

 

14.
Notices. The Parties acknowledge and agree that any notice required under this Agreement shall be given in writing and shall be
delivered personally, via overnight delivery service with tracking, email, or by certified mail, postage prepaid, addressed to the Party
for whom intended as follows:

 

	 	(a)	To Company, at the address set forth on Exhibit A.

 

	 	(b)	To MJNE:

 

MJ
Holdings, Inc.

2215
E. Anvil Road

Amargosa
Valley, Nevada 89020

Attn:
Paris Balaouras

Email:
Paris@mjholdingsinc.com

 

    	15

    	 

    

 

with
a copy to:

 

Adam
R. Fulton, Esq.

Jennings
& Fulton, LTD.

2580
Sorrel Street

Las
Vegas, Nevada 89146

afulton@jfnvlaw.com

 

15.
Amendment and Modification; Waiver. This Agreement may be amended, modified, or supplemented only by an agreement in writing signed
by each Party. No waiver by either Part of any of the provisions hereof shall be effective unless explicitly set forth in writing and
signed by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any
rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege.

 

16.
Assignment. Neither Party may assign, transfer, or convey this Agreement, in whole or in part, without the express prior written
consent of the other Party. Any attempted assignment of this Agreement by a Party without the prior written consent of the other Party
shall be considered void. Any such assignment and written consent shall be attached to this Agreement and shall be incorporated herein.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns.

 

17.
Regulatory Compliance; Severability. It is the intent of the Parties that this Agreement comply in all respects with all applicable
state and local laws, regulations, rules and interpretive case decisions, and the Parties have structured their relationship with that
specific intent. However, each Party understands that such laws, regulations, and case decisions are complicated and in a state of flux.
Therefore, in the event that any provisions of this Agreement is rendered invalid or unenforceable by a court of competent jurisdiction,
or the applicable laws and regulations are altered by any legislative or regulatory body, or either party notifies the other party in
writing of its reasonable belief that this Agreement or any of its provisions may be declared null, void, unenforceable, or in violation
of applicable laws or regulations, the remaining provisions, if any, of this Agreement shall nevertheless continue in full force and
effect. Furthermore, in such event the parties agree to negotiate in good faith an amendment to the Agreement to comply with law while
remaining consistent with the parties’ original intent to the fullest extent allowable by law.

 

18.
Governing Law. This Agreement shall be governed, interpreted, performed, and enforced solely in accordance with the laws of the
State of Nevada, without reference to principles of conflicts of law.

 

    	16

    	 

    

 

19.
Neutral Interpretation. The Parties acknowledge and agree that they have both participated in the negotiation of this Agreement
and its terms and have had the opportunity to have this Agreement reviewed by an attorney of their choosing. The Parties agree that no
rules of construction or interpretation shall be applied to this Agreement that would favor one party over the other, and that the Agreement
shall be interpreted neutrally. All headings and captions are provided for convenience of the reader only and shall not imply any interpretation
of the following subject matter in and of themselves.

 

20.
Dispute Resolution. The Parties agree to discuss in good faith any alleged default or breach described in Section 13 (each generally
constituting a failure to abide the terms of this Agreement) telephonically within 48 hours of such time as written notice of the alleged
breach is received by the Party alleged to have committed such breach or default. If the alleged issue is not then resolved, then the
Parties that authorized representatives of the respective Parties, with settlement authority, will meet in person within seven days to
attempt in good faith to resolve the issue. If the issue persists, then the Parties shall resolve the dispute as set forth below. The
foregoing shall not preclude any party seeking interim emergency injunctive relief in a court of competent jurisdiction located in Clark
County, Nevada or from pursuing injunctive relief under Section 7 hereof. The Parties agree that the Party pursuing injunctive shall
not be required to post a bond or shall be required to post the minimum bond required by applicable law, to the extent a bond is not
waivable. Nothing contained in this Section 20 precludes MJNE from terminating the Agreement pursuant to Section 2(c).

 

(a)
Mediation. Except if emergency injunctive relief is required, any dispute, controversy, or claim arising out of or relating to
this Agreement (a “Dispute”) that cannot be settled through negotiation between the Parties shall be mediated by the Parties
before a single mediator in Clark County, Nevada, or any other place agreed to by the Parties. Either Party to this Agreement may invoke
the right to mediation set forth in this Section 20 (a) by sending written notice to the other Party of such invocation and setting forth
in adequate detail the nature of the matter to be mediated. The Parties to the mediation jointly shall appoint the mediator within 15
calendar days of receipt of the written notice. The mediation proceedings shall commence and be diligently pursued by the Parties to
this Agreement within 15 calendar days of the appointment of the mediator. Each Party to the mediation shall bear its own cost and expenses
incurred with respect to the mediation. The cost of the mediator and the mediation procedure shall be borne equally by the Parties.

 

(b)
Arbitration. Any Dispute that has not been settled or resolved by negotiation or through mediation to the satisfaction of the
Parties within 90 days of the notice of the invocation of mediation pursuant to Section 20(a) above (or such other date as the Parties
may agree) shall be resolved through binding arbitration. Either Party shall have the right to submit the Dispute to arbitration set
forth in this Section 20(b) by sending written notice to the other Party. The Parties shall name a single arbitrator within 20 calendar
days after such written notice. If the Parties fail to select an arbitrator, then each Party shall designate a third-party attorney duly
licensed and in good standing in the State of Nevada, which two designees shall together designate a third person, duly licensed as an
attorney in the State of Nevada, which person (if he or she accepts such appointment) shall be the arbitrator. If those designees cannot
agree on an arbitrator, then the arbitrator shall be selected in accordance with then existing rules and processes of the American Arbitration
Association (“AAA”). The arbitrator shall render a decision within 60 calendar days after his or her appointment and shall
conduct all proceedings pursuant to the then existing rules of AAA governing commercial transactions, to the extent such rules are not
inconsistent with Nevada law and this Agreement. The cost of the arbitration procedure shall be borne by the non-prevailing Party or,
if the decision is not clearly in favor of one Party or the other, then such costs shall be borne as determined by the arbitrator. The
arbitration procedure provided for in this Agreement shall be binding arbitration and shall be the sole and exclusive dispute resolution
mechanism for any applicable Dispute, except to the extent that judicial enforcement proceedings are necessary to give effect to the
resulting arbitral award.

 

    	17

    	 

    

 

21.
Limitations on Damages. MJNE shall not be liable to Company for any action or inaction, whether intentional or not, made by any
other third party, including but not limited to, other parties that are conducting cultivation activities at the Cultivation Facility,
which affects Company’s ability to operate, grow or conduct sales pursuant to this Agreement. MJNE is only responsible to Company
for any willful or negligent action on the part of MJNE or its direct employees. Company reserves the right to pursue claims against
any third-party vendor or MJNE affiliate.

 

Company
acknowledges and understands that there may be additional cannabis operators conducting grow operations at the Cultivation Facility.
As such, there is risk that an additional operator may jeopardize MJNE’s license to operate, thereby impacting Company’s
ability to operate. If another operator jeopardizes the license, or causes the license to be revoked or suspended, thereby negatively
impacting Company’s ability to conduct operations pursuant to this Agreement, Company agrees that MJNE shall have no liability
to Company for the same. Company enters into this Agreement with full knowledge of the foregoing and does so with the understanding and
willingness to accept the risk as stated herein.

 

22.
Venue. Any arbitration or other action to enforce or interpret this Agreement shall exclusively be in Clark County, Nevada.

 

23.
Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted
assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit
or remedy of any nature whatsoever, under or by reason of this Agreement.

 

24.
Federal Government Action. The Parties acknowledge that they are aware of and fully understand that despite the State of Nevada’s
marijuana laws and the terms and conditions of this Agreement, Nevada-licensed marijuana cultivators, transporters, distributors, or
possessors may still be arrested by federal officers and prosecuted under federal law. In the event of federal arrest, seizure, or prosecution
associated with the activities described in this Agreement, the Parties agree to hold each other harmless and agree to be individually
responsible for any attorneys’ fees associated with defending such actions. The Parties also agree to waive illegality as a defense
to any contract enforcement action related to this Agreement.

 

25.
Relationship of the Parties. This Agreement does not create any partnership or joint venture between the Parties. Company shall
be an independent contractor pursuant to this Agreement. Except as expressly set forth in this Agreement, neither Party shall have any
express or implied right or authority to assume or create any obligations on behalf of or in the name of the other Party or to bind the
other Party to any contract, agreement, or undertaking with any third party.

 

26.
Further Assurances. Each Party will execute and deliver such further instruments and take such further action as may be required
to carry out the intent and purpose of this Agreement.

 

27.
Entire Agreement. This Agreement represents the entire understanding between the Parties with respect to the subject matter hereof
and supersedes all other negotiations, agreements, representations, and covenants, oral or written. All the Recitals and Exhibits hereto
are hereby incorporated within the Agreement. In the event of any conflict between this Agreement and any other Agreement between the
parties, the terms and provisions of this Agreement shall control, unless specifically varied by a subsequent Agreement. This Agreement
may be amended or otherwise modified only by a written documents signed by each of the Parties hereto.

 

28.
Execution. The Parties may execute this Agreement in counterparts, all of which, when considered together, shall constitute one
agreement. This Agreement may be executed by DocuSign or any other e-signature method authorized by MJNE.

 

    	18

    	 

    

 

IN
WITNESS WHEREOF, the Parties have caused this Cultivation and Sales Agreement to be duly executed and delivered by their authorized representatives
as of the Effective Date.

 

	MJNE	 	COMPANY
	 	 	 
	MJ
    HOLDINGS, INC.	 	RK
    GROW LLC
	 	 	 	 	 
	By:	/s/
    Roger j Bloss	 	By:	/s/
    Abdulla Ahmed
	 	Roger
    Bloss	 	 	Abdulla
    Ahmed
	 	Chief
    Executive Officer	 	 	Manager
	 	 	 	 	 
	Date:	Jun
    22, 2021	 	Date:	Jun
    24, 2021

 

    	19

    	 

    

 

EXHIBIT
A

SUMMARY
OF COMMERCIAL TERMS

 

COMPANY
LEGAL NAME: RK GROW LLC

 

	COMPANY
    ADDRESS:	9205
    W. RUSSELL RD. SUITE 240
		LAS
    VEGAS, NEVADA 89148

 

COMPANY
NOTICE INFORMATION:

 

	 	Address:	9205
    W. RUSSEL RD. SUITE 240
	 	 	LAS
    VEGAS, NEVADA 89148
	 	 	 
	 	Attention
    of: 	CHRIS
    LIU

 

	 	Email: 	chris.liu@ruilincpa.com	 	Phone:	702-403-3645

 

with
a copy to:

 

ABDULLA
AHMED

9205
RUSSEL RD. SUITE 240

LAS
VEGAS, NEVADA 89148

 

DESIGNATED
ACREAGE:

 

For
Cultivation: 40 acres

Total:
40 acres

 

PRODUCT:
As of the Execution Date, Company anticipates growing on the Designated Acreage and selling in the State of Nevada the following
product or products: CANNABIS AND CANNABIS-RELATED PRODUCTS

 

DEPOSITS*:
(i) Product Royalty Deposit of $3,000,000.00 to be applied to the first Product Royalty or Product Royalties that become due and payable
to MJNE; (ii) a deposit of $20,000.00 to be applied to the first and last monthly Security and Compliance Fee. The initial Deposit is
due and payable on or before July 30, 2021and shall be made via wire transfer. MJNE to provide wire instructions.

 

PRODUCT
ROYALTY*: 10%

 

MINIMUM
MONTHLY PRODUCT ROYALTY: Beginning with the first calendar month following the second anniversary of the date of the Commencement
Notice, $90,000.00 per month or $1,080,000 per annum Minimum Monthly Product Royalty is owed to MJNE from Company.

 

MONTHLY
SECURITY AND COMPLIANCE FEE*: $10,000.00.

 

CULTIVATION
MANAGEMENT FEE (PAYABLE TO COMPANY)*: 90% of Net Sales Revenue

 

 

*All
sums payable are shown in and payable in U.S. Dollars.

 

    	20

    	 

    

 

ADDENDUM
1 TO CULTIVATION AND SALES AGREEMENT

 

This
Addendum 1 to the Cultivation and Sales Agreement entered into this ____ day of June, 2021, by and between MJ Holdings Inc., a
Nevada corporation (“MJNE”) and RK Grow, LLC, a Nevada limited liability company (“Company”) (jointly, the
“Parties” and, individually, a “Party”). To the extent any provisions of this Addendum contradict any
provisions of the Cultivation and Sales Agreement, the provisions of this Addendum shall control:

 

1.
Company has represented to MJNE that it is unable to obtain product liability insurance and general liability insurance coverage
pursuant to the Cultivation and Sales Agreement (“Agreement”). MJNE hereby waives the Company’s requirement to
obtain the aforementioned insurance coverages pursuant to section 3(d) of the Agreement. However, Company is required to obtain all
other insurance coverages as set forth therein so long as reasonably possible. To wit, MJNE agrees to use its best efforts to assist
Company in obtaining any governmental permits or licenses and third party consents necessary to obtain all insurances set forth in
section 3(d). Company shall reimburse MJNE to the extent MJNE directly incurs out-of-pocket costs as a result of MJNE assisting
Company.

 

2.
In the event that Company or MJNE determines that product liability insurance and/or general liability insurance is available, Company
shall obtain said insurance within 30 days of receiving notice from MJNE of the same. Alternatively, if MJNE can obtain product liability
insurance and general liability insurance on its own for the Cultivation Facility, MJNE may charge the Company, pro rata, its share of
the costs of the same. The above terms shall also apply to the Company’s requirement to obtain Business Interruption Insurance
(where applicable) should the Company be unable to obtain such insurance.

 

3.
MJNE agrees to provide access to water for the Designated Acreage without charge to the Company. However, Company understands it will
be responsible for any construction required to have the water actually delivered to its Designated Acreage from the source. Company’s
deposit as it relates to prepayment shall be on the following schedule: $500,000.00 shall be due within 30 days of the execution of the
Agreement. One million dollars will be due when: (a) MJNE provides Company with a proposal to obtain electrical power from a utility
or other electrical provider for the Designated Acreage; and (b) Company approves and executes such proposal. Company agrees that it
will not unreasonably reject any tendered proposal specified herein. The Company shall pay the additional $1,500,000.00 portion of the
Deposit on or before October 1, 2022. Company’s monthly security and compliance fee shall be suspended unless and until such time
as Company receives 160,000 Amps of electrical power on the Designated Acreage.

 

4.
Company holds all rights as it relates to the terms sale for MJNE’s product which are produced by Company subject to the terms
of set forth in paragraph 5 of the Agreement.

 

5.
For purposes of clarifying section 4(e) of the Agreement, Company reserves the right to select testing facilities so long as such facility
is selected from a list pre-approved by MJNE. MJNE agrees that such list will hold a reasonable number of qualified facilities to ensure
competitive pricing for testing.

 

    	Page
                                            1 of
                                            3

     

    

 

6.
Minimum Monthly Product Royalty: Minimum Monthly Product Royalty (MMPR) shall be calculated on a per annum basis. Therefore, Company
will have satisfied all MMPR obligations for the year upon remitting $1,080,000.00 to MJNE.

 

	 	a.	The Following represents an example of how MMPR may be satisfied assuming the a year begins the first day of January:
	 	 	 	 	 
	 	 	 	i.	January:
    No Sale. Company remits $90,000.00 MMPR,
	 	 	 	 	 
	 	 	 	ii.	February,
    Company makes sales resulting in $800,000 paid to MJNE in royalties.
	 	 	 	 	 
	 	 	 	iii.	March,
    No Sale. Company remits $90,000.00 MMPR.
	 	 	 	 	 
	 	 	 	iv.	April,
    Company makes sales resulting in $100,000.00 royalties paid to MJNE.
	 	 	 	 	 
	 	 	 	v.	May
    through December, MMPR is satisfied for the remainder of the year based upon earlier sales.

 

7.
Company reserves the right to terminate this agreement within 24 months of execution upon providing MJNE with 30 day notice. Upon
termination MJNE agrees to refund Company the pro rata share of Company’s prepaid deposit. The pro rata share shall be
calculated on a monthly basis as set forth in example 6(a). However, if such termination is provided without Company having
initiated infrastructure improvements (such as concrete buildup), Company’s “pro rata share” shall be defined as
$500,000.00 without regard to the timing of Company’s notice.

 

	 	a.	The following represents an example of the “Pro Rata” share calculated with Company exercising the exit clause at 8.5 months with infrastructure improvements using a three million dollar prepaid royalty deposit over fifteen years:
	 	 	 	 	 
	 	 	 	i.	3,000,000.00
    divided by 15 years = $200,000.00 per year or $16,666.66 per month.

 

$16,666.66
x 8.5 = $141,666.61

 

MJNE
refunds Company $2,858,333.39

 

	 	b.	Company
    shall have met the requirements for Infrastructure Improvements when Company approves and executes an agreement and remits its deposit
    to a licensed and bonded contractor to pour 15 acres of concrete on the Site.

 

(THE
BALANCE OF THIS PAGE IS LEFT INTENTIONALLY BLANK)

 

    	Page
                                            2 of
                                            3

     

    

 

IN
WITNESS WHEREOF, the Parties have caused this Addendum 1 to Cultivation and Sales Agreement to be duly executed and delivered by their
authorized representatives as of the Effective Date.

 

	MJ
    HOLDINGS, INC.	 	RK
    GROW, LLC
	 	 	 	 	 
	By:	/s/
    Roger j Bloss	 	By:	/s/
    Abdulla Ahmed
	 	Roger
    Bloss	 	 	Abdulla
    Ahmed
	 	Chief
    Executive Officer	 	 	Manager
	 		 	 	
	Date:	Jun
    22, 2021	 	Date:	Jun
    24, 2021

 

    	Page
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                                            3

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