Document:

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

  

This Employment Agreement (the “Agreement”) is made
and shall become effective on July 15, 2019 (the “Effective Date”),

  

		BETWEEN:	Richard S. Groberg (the “Executive “), an individual
with a residential address at                                                                     .

 

		AND:	MJ Holdings, Inc. (the “Company”), an entity
organized and existing under the laws of the State of Nevada, with its principal place of business located at 1300 S Jones Blvd.,
Las Vegas, NV 89146.

 

Recitals

 

In consideration of the covenants and agreements herein contained
and the sums to be paid hereunder, the Company hereby employs the Executive and the Executive hereby agrees to perform services
as an Executive of the Company, upon the following terms and conditions:

 

		1.	TERM

 

The Company hereby employs Executive to serve as President and
to serve in such additional or different position or positions as the Company may determine in its sole discretion. The initial
term of employment shall be for a period of three (3) years from the date hereof (the “Employment Period”) until July
14, 2022, unless extended or otherwise terminated as set forth herein.

 

The effective date of this Agreement shall be the date first
set forth above, and it shall continue in effect until the earlier of:

 

		A.	The effective date of any subsequent employment agreement between the Company and the Executive;

 

		B.	The effective date of any termination of employment as provided elsewhere herein; or

 

		C.	Three (3) years from the effective date hereof, provided, that this Employment Agreement shall automatically renew for successive
periods of three (3) years each unless either party gives written notice to other that it does not wish to automatically renew
this Agreement, which written notice must be received by the other party no less than ninety (90) days and no more than one hundred
eighty (180) days prior to the expiration of the applicable term.

  

     

     

    

 

		2.	Duties and Responsibilities

 

Executive will be reporting to the Chief Executive Officer and
the Board of Directors. Within the limitations established by the By-laws of the Company, the Executive shall have each and all
of the duties and responsibilities of that position and such other or different duties on behalf of the Company, as may be assigned
from time to time by the Board of Directors.

 

 

Executive shall fulfil the role of President of the Corporation.
Duties of the President include, but are not limited to, working directly with the Chief Executive Officer (“CEO”)
on strategic and operational initiatives, working directly with the Chief Financial Officer (“CFO”) and the Chief Administrative
Officer on developing operating budgets and implementing delivery timelines. Oversight of the day to day operations of the Company’s
operating divisions and business units and such other duties are customarily the responsibility of the President.

  

		3.	Location

 

The initial principal location at which
Executive shall perform services for the Company shall be 1300 S Jones Blvd., Las Vegas, NV 89146.

 

		4.	Acceptance of Employment 

 

Executive accepts employment with the Company upon the terms
set forth above and agrees to devote all Executive’s time, energy and ability to the interests of the Company, and to perform
Executive’s duties in an efficient, trustworthy and business-like manner.

 

		5.	Devotion of Time to Employment 

 

The Executive shall devote the Executive’s best efforts and
substantially all of the Executive’s working time to performing the duties on behalf of the Company. The Executive shall provide
services during the normal business hours of the Company as determined by the Company. Reasonable amounts of time may be allotted
to personal or charitable and professional activities and shall not constitute a violation of this Agreement provided such activities
do not materially interfere with the services required to be rendered hereunder.

 

		6.	QUALIFICATIONS

 

The Executive shall, as a condition of this Agreement, satisfy
all of the qualification that are reasonably and in good faith established by the Board of Directors, including:

  

		7.	Compensation

 

7.1
Base Salary

 

Executive shall be paid a base salary (“Base
Salary”) at the annual rate of $180,000.00, payable in equal monthly installments of $15,000.00 consistent with Company’s
payroll practices commencing on July 15, 2018. The annual Base Salary shall be reviewed on or before May 31st of each year by the
Compensation Committee of the Company to determine if such Base Salary should be increased for the following year in recognition
of Executive’s services to the Company. In consideration of the services under this Agreement, Executive shall be paid the
aggregate of basic compensation, bonus and benefits as hereinafter set forth.

 

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Notwithstanding the foregoing Executive shall defer
$5,000.00 per month of any salary due under this Employment Agreement (collectively, the “Deferred Compensation”) until
such time as MJH has either:

 

		a)	Generated a minimum of $20,000,000 of gross annualized sales. or $5,000,000 in gross profit (“Profit”),
which shall be defined as gross revenues minus cost of goods sold, whichever shall occur first; or

 

		b)	secured a cumulative total of $22,500,000 or more of equity or debt financing. Cumulative total
shall mean all sums received by MJH on or after December 15, 2017 from the sale of the Company’s common or preferred stock
or any long-term or convertible notes.

 

Upon the happening of either of the foregoing,
Company shall cause to be paid to Executive any then accrued Deferred Compensation in twelve (12) equal monthly payments. At Executive’s
sole option, the Executive may elect to receive any deferred salary in the form of shares of the Company’s common stock (“Common
Stock”) at a per share price equal to the volume weighted average price (“VWAP”) for the 30 day period immediately
preceding the election by Executive to receive such deferred compensation in the form of Common Stock. However, in no event shall
such deferment extend beyond January 15, 2020.

 

7.2
Payment

 

Payment of all compensation to Executive hereunder
shall be made in accordance with the relevant Company policies in effect from time to time, including normal payroll practices.

 

7.3
Bonus

 

From time to time, the Company may pay to Executive
a bonus out of net revenues of the Company. Payment of any bonus compensation shall be at the sole discretion of the Board of Directors
or the Compensation Committee of the Company and the Executive shall have no entitlement to such amount absent a decision by the
Company as aforesaid to make such bonus compensation. At the sole discretion of Company bonus compensation may be paid either in
the form of cash or common stock of the Company, or any combination thereof, provided that there be sufficient cash compensation
to pay any taxes due on the stock compensation component of any bonus hereunder.

 

7.4
Benefits

 

The Company, upon adoption of and pursuant to an omnibus
benefit plan (the “Omnibus Plan”), shall cause to be granted to Executive all benefits that other Executives of the
Company are entitled to pursuant to the terms set forth in paragraph 7 herein below including, but not limited to (i) medical,
dental and vision plan; and (ii) life and disability insurance plans; and (iii) retirement and profit sharing programs as offered
to other Executives of the Company, including any restricted stock unit plan (“RSU”), any restricted stock award plan
(“RSA”), any stock appreciation Rights (“SAR’s”), any incentive stock option plan (“ISO”),
any employee stock option plan (“ESOP”) or employee stock purchase plan (“ESPP”) that may be implemented
by Company (iv) paid holidays as per the Company’s policies, and (v) such other benefits and perquisites as are approved
by the Board of Directors. The Company has the right to modify conditions of participation, terminate any benefit, or change insurance
plans and other providers of such benefits in its sole discretion.

 

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7.5
Non-Deductible Compensation

 

In the event a deduction shall be disallowed by the
Internal Revenue Service or a court of competent jurisdiction for federal income tax purposes for all or any part of the payment
made to Executive by the Company or any other shareholder or Executive of the Company, shall be required by the Internal Revenue
Service to pay a deficiency on account of such disallowance, then Executive shall repay to the Company or such other individual
required to make such payment, an amount equal to the tax imposed on the disallowed portion of such payment, plus any and all interest
and penalties paid with respect thereto. The Company or other party required to make payment shall not be required to defend any
proposed disallowance or other action by the Internal Revenue Service or any other state, federal, or local taxing authorities.

 

7.6
Withholding

 

All sums payable to Executive under this Agreement
will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law.

  

		8.	Other Employment BenefitS

 

8.1
Business Expenses

 

Upon submission of itemized expense statements in the
manner specified by the Company, Executive shall be entitled to reimbursement for reasonable travel and other reasonable business
expenses duly incurred by Executive in the performance of his duties under this Agreement.

 

8.2
Benefit Plans

 

Executive shall be entitled to participate in the Company’s
medical and dental plans, life and disability insurance plans and retirement plans pursuant to their terms and conditions. Executive
shall be entitled to participate in any other benefit plan offered by the Company to its Executives during the term of this Agreement
(other than stock option or stock incentive plans, which are governed by Section 8.4. below). Nothing in this Agreement shall preclude
the Company or any affiliate of the Company from terminating or amending any Executive benefit plan or program from time to time.

 

8.3
Vacation

 

Executive shall be entitled to four (4) weeks of paid
vacation each year of full employment, exclusive of legal holidays, as long as the scheduling of Executive’s vacation does
not interfere with the Company’s normal business operations.

 

8.4
Stock Participation

 

Executive shall be entitled to acquire four hundred
thousand (400,000) restricted shares of the Common Stock of the Company pursuant to the terms of any Company adopted Stock Compensation
Plan subject to the following terms:

 

		8.4.1	The Stock Agreement shall contain all of the material terms
required by the Omnibus Plan and shall clearly state the issuance of any stock grants, stock options or any other stock-based
compensation and shall include the stock vesting schedule and shall be in accordance with all applicable securities laws and the
other terms and conditions of the Company’s duly adopted Stock Plans.

 

		8.4.2	The employee shall be eligible to participate in any Executive Stock Option Plan (“ESOP”) or Executive Stock Purchase
Plan (“ESPP”)

 

		8.4.3	The issuance of any Restricted Stock Units (“RSU”), Restricted Stock Awards (“RSA”) or Incentive Stock
Options (“ISO”) shall be solely at the discretion of the Compensation Committee and Board of Directors.

 

		8.4.4	The Common Stock to be issued hereunder shall vest as follows:

 

		a)	100,000 shares shall vest on the date that is six months after the effective date of this Agreement

 

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		b)	100,000 shares shall vest on the date that is one year after the effective date of this Agreement

 

		c)	100,000 shares shall vest on the date that is two years after the effective date of this Agreement

 

		d)	100,000 shares shall vest on the date that is three years after the effective date of this Agreement

 

At the sole option of the Executive, the Executive
may elect to make an Internal Revenue Code Section 83(b) election on all or part of the Common Stock granted hereunder. For the
purposes of this Agreement the present Fair Market Value (“FMV”) of the Common Stock shall be equal to the volume weighted
average price (“VWAP”) as published by OTC Markets on June 14, 2019. Alternatively, the Executive may elect to receive
the Common Stock in the form of stock options (“Options”) the exercise price of such option shall be the lesser of
the VWAP as published by OTC Markets on June 14, 2019 or the VWAP as published by OTC Markets on July 12, 2019. Notwithstanding
the foregoing any election hereunder must be made on or before July 15, 2019, otherwise all shares granted hereunder shall be equal
to the FMV on the vesting date which shall equal the VWAP as published by OTC Markets on the Friday immediately preceding the vesting
date.

 

		9.	POLICIES AND PROCEDURES

 

The Company shall have the authority to establish from
time to time the policies and procedures to be followed by the Executive in performing services for the Company. Executive shall
abide by the provisions of any contract entered into by the Company under which the Executive provides services. Executive shall
comply with the terms and conditions of any and all contracts entered by the Company.

 

		10.	Termination of Employment

 

10.1
For Cause

 

Notwithstanding anything herein to the contrary,
the Company may terminate Executive’s employment hereunder for cause for any one of the following reasons: 1) conviction
of a felony, any act involving moral turpitude, or a misdemeanor where imprisonment is imposed, 2) commission of any act of
theft, fraud, dishonesty, or falsification of any employment or Company records, 3) improper disclosure of the Company’s
confidential or proprietary information, 4) any action by the Executive which has a detrimental effect on the Company’s
reputation or business, 5) Executive’s failure or inability to perform any reasonable assigned duties after written
notice from the Company of, and a reasonable opportunity to cure, such failure or inability, 6) any breach of this Agreement,
which breach is not cured within thirty (30) days following written notice of such breach, 7) a course of conduct amounting
to gross incompetence, 8) chronic and unexcused absenteeism, 9) unlawful appropriation of a corporate opportunity, or
10) misconduct in connection with the performance of any of Executive’s duties, including, without limitation, misappropriation
of funds or property of the Company, securing or attempting to secure personally any profit in connection with any transaction
entered into on behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on Company premises
or to which the Company is subject. Upon termination of Executive’s employment with the Company for cause, the Company shall
be under no further obligation to Executive, except to pay all accrued but unpaid base salary and accrued vacation to the date
of termination thereof.

 

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10.2
Without Cause

 

The Company may terminate Executive’s employment
hereunder at any time without cause, provided, however, that Executive shall be entitled to severance pay in the amount of 8 weeks
of Base Salary for each year of service with the Company on a pro-rata basis, in addition to accrued but unpaid Base Salary and
accrued vacation, less deductions required by law, acceleration of any unvested stock grants or stock options, but if, and only
if, Executive executes a valid and comprehensive release of any and all claims that the Executive may have against the Company
in a form provided by the Company and Executive executes such form within seven (7) days of tender.

 

10.3
Voluntary Resignation

 

Upon termination of employment, Executive shall
forfeit any unvested stock grants or stock options and shall be deemed to have resigned from the Board of Directors of the Company
if he is then a director.

 

10.4
Cooperation

 

After notice of termination, Executive shall cooperate
with the Company, as reasonably requested by the Company, to effect a transition of Executive’s responsibilities and to ensure
that the Company is aware of all matters being handled by Executive.

 

10.5
Compensation After Notice of Termination

 

After notice of termination has been given by either
Company or Executive, as provided in this Article, Executive shall be entitled to receive the compensation provided for in this
Agreement until the notice period has expired. It is understood that after the written notice is given by either Company or Executive,
Executive shall continue to devote substantially all of the Executive’s time to the Executive’s normal services for the Company
during the notice period, with sufficient time allowed, in the sole discretion of the Company, for Executive to seek new employment.

 

10.6
Notwithstanding paragraphs

 

10.1 through 10.5 the
parties hereto understand and agree that the Executive’s employment with the Company is at-will and Company may terminate
Executive’s employment at anytime and for any reason during the first ninety (90) days hereof and that Executive shall not
be entitled to any cash compensation, stock compensation or any other benefits of any kind unless otherwise vested with the Executive
prior to such termination.

 

		11.	DISABILITY OF EXECUTIVE

 

The Company may terminate this Agreement without liability if
Executive shall be permanently prevented from properly performing his essential duties hereunder with reasonable accommodation
by reason of illness or other physical or mental incapacity for a period of more than thirty (30) consecutive days. Upon such termination,
Executive shall be entitled to all accrued but unpaid Base Salary and vacation.

 

11.1
Definitions

 

For purposes of this Agreement, whenever
used in this Article 14:

 

“Total disability” shall mean that the
Executive is unable, mentally or physically, whether it be due to sickness, accident, age or other infirmity, to engage in any
aspect of the Executive’s normal duties as set forth in this Agreement.

 

“Partial disability” shall mean that the
Executive is able to perform, to some extent, on behalf of the Company, the particular services in which the Company specializes,
and which the Executive previously performed for the Company, but that the Executive is unable, mentally or physically, to devote
the same amount of time to such services as was devoted prior to the occurrence of such sickness or accident.

 

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“Normal monthly salary” shall mean the
salary which the Executive is being paid by the Company per month as of the commencement date of the period of disability, as specified
hereinabove or as determined by the Board of Directors pursuant to the terms hereof.

 

11.2
Total Disability

 

During a single period of total disability of the
Executive, the Executive shall be entitled to receive from the Company, the Executive’s normal monthly salary for the shorter of
first three (3) months of disability or until any disability insurance policy available through the Executive’s employment
begins to pay benefits. If the single period of disability should continue beyond three (3) months, the Executive shall receive
only such amount as the Executive shall be entitled to receive under disability insurance coverage on the Executive, if any.

 

11.3
Partial Disability

 

During a period of partial disability of the Executive,
the Executive shall receive an amount of compensation computed as follows:

 

That portion of the Executive’s normal monthly basic
compensation which bears the same ratio to the Executive’s normal monthly basic compensation as the amount of time which the Executive
is able to devote to the usual performance of services on behalf of the Company during such period bears to the total time the
Executive devoted to performing such services prior to the commencement date of the single period of disability, and

 

Such amount shall be calculated by multiplying the
Executive’s basic compensation by a fraction, the numerator of which shall be the percentage of normal services that the
Executive is able to perform and the denominator which shall be the total services that the Executive is able to perform absent
the partial disability.

 

11.4 Combination of Total and Partial Disability

 

If a single period of disability of the Executive
consists of a combination of total disability and partial disability, the maximum total disability compensation to which the Executive
shall be entitled from the Company under this disability provision shall not exceed an amount equal to one (1) times the Executive’s
normal monthly basic compensation.

 

11.5 Broken Periods of Disability

 

A period of disability may be continuous or broken.
If broken into partial periods of disability which are separated by intervening periods of work, there shall be aggregated together
all of such successive partial periods of disability except any period prior to the time when any single period of work extends
for six months or longer; and such aggregated periods of disability shall be treated as a single period in determining the amount
of disability compensation to which an Executive shall be entitled under any provision of this Section.

 

11.6 Termination Due to Disability

 

If and when the period of total or partial disability
of the Executive totals six months, the Executive’s employment with the Company shall automatically terminate. Notwithstanding
the foregoing, if the disabled Executive and the Company agree, the disabled Executive may thereafter be employed by the Company
upon such terms as may be mutually agreeable.

 

11.7 Commencement Date of Disability

 

The commencement date of a period of disability,
whether it be a continuous period or the aggregate of successive partial periods, shall be the first day on which the Executive
is disabled.

 

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11.8 Dispute Regarding Existence of Disability

 

Any dispute regarding the existence, extent or continuance
of the disability shall be resolved by the determination of a majority of three (3) competent physicians, one (1) of whom shall
be selected by the Company, one (1) of whom shall be selected by the Executive and the third (3rd) of whom shall be selected by
the other two (2) physicians so selected.

 

11.9 Death of Executive

 

In the event the Executive shall die during the term
hereof, the Company shall pay to the Executive’s surviving spouse, or if the Executive shall leave no surviving spouse, then to
the Executive’s estate, only such amounts as may have been earned by the Executive prior to the Executive’s date of death, but
which were unpaid at date of death.

  

		12.	Confidential Information 

 

Executive recognizes and acknowledges that all records with
respect to clients, business associates, customer or referral lists, contracting parties and referral sources of the Company, and
all personal, financial and business and proprietary information of the Company, its Executives, officers, directors and shareholders
obtained by the Executive during the term of this Agreement and not generally known in the public (the “Confidential Information”)
are valuable, special and unique and proprietary assets of the Company’s business. The Executive hereby agrees that during the
term of this Agreement and following the termination of this Agreement, whether the termination shall be voluntary or involuntary,
or with or without cause, or whether the termination is solely due to the expiration of the term of this Agreement, the Executive
will not at any time, directly or indirectly, disclose any Confidential Information, in full or in part, in written or other form,
to any person, firm, Company, association or other entity, or utilize the same for any reason or purpose whatsoever other than
for the benefit of and pursuant to authorization granted by the Company. “Confidential Information” shall also include
any information (including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program,
a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential
customers) that: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable
by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. In the case of Company’s business, Company’s Trade Secrets
include (without limitation) information regarding names and addresses of any customers, sales personnel, account invoices, training
and educational manuals, administrative manuals, prospective customer leads, in whatever form, whether or not computer or electronically
accessible “on-line.”

 

		13.	Exclusive Employment 

 

During employment with the Company, Executive will not do anything
to compete with the Company’s present or contemplated business, nor will he or she plan or organize any competitive business
activity. Executive will not enter into any agreement which conflicts with his duties or obligations to the Company. Executive
will not during his employment or within one (1) year after it ends, without the Company’s express written consent, directly
or indirectly, solicit or encourage any Executive, agent, independent contractor, supplier, customer, consultant or any other person
or company to terminate or alter a relationship with the Company.

 

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		14.	Hiring

 

The Executive agrees that during the Executive’s employment
with the Company and for a period of one (1) year following the termination of this Agreement, whether the termination shall be
voluntary or involuntary, or with or without cause, or whether the termination is solely due to the expiration of the term of this
Agreement, the Executive will not attempt to hire any other Executive or independent contractor of the Company or otherwise encourage
or attempt to encourage any other Executive or independent contractor of the Company to leave the Company’s employ.

 

		15.	Assignment and Transfer 

 

Executive’s rights and obligations under this Agreement
shall not be transferable by assignment or otherwise, and any purported assignment, transfer or delegation thereof shall be void.
This Agreement shall inure to the benefit of, and be binding upon and enforceable by, any purchaser of substantially all of Company’s
assets, any corporate successor to Company or any assignee thereof.

 

		16.	No Inconsistent Obligations 

 

Executive is aware of no obligations, legal or otherwise, inconsistent
with the terms of this Agreement or with his undertaking employment with the Company. Executive will not disclose to the Company,
or use, or induce the Company to use, any proprietary information or trade secrets of others. Executive represents and warrants
that he or she has returned all property and confidential information belonging to all prior employers.

 

		17.	Attorneys’ Fees 

 

The parties hereto agree that, in the event of breach or threatened
breach of any covenants of Executive, the damage or imminent damage to the value and the goodwill of the Company’s business
shall be inestimable, and that therefore any remedy at law or in damages shall be inadequate. Accordingly, the parties hereto agree
that the Company shall be entitled to injunctive relief against Executive in the event of any breach or threatened breach of any
of such provisions by Executive, in addition to any other relief (including damages) available to the Company under this Agreement
or under law. The prevailing party in any action instituted pursuant to this Agreement shall be entitled to recover from the other
party its reasonable attorneys’ fees and other expenses incurred in such action.

 

In the event that either party is required to engage the services
of legal counsel to enforce the terms and conditions of this Agreement against the other party, regardless of whether such action
results in litigation, the prevailing party shall be entitled to reasonable attorneys’ fees, costs of legal assistants, and other
costs from the other party, which shall include any fees or costs incurred at trial or in any appellate proceeding, and expenses
and other costs, including any accounting expenses incurred.

 

		18.	Governing Law 

 

This Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada without regard to conflict of law principles.

 

		19.	Amendment 

 

This Agreement may be amended only by a writing signed by Executive
and by a duly authorized representative of the Company.

 

		20.	Severability 

 

If any term, provision, covenant or condition of this Agreement,
or the application thereof to any person, place or circumstance, shall be held to be invalid, unenforceable or void, the remainder
of this Agreement and such term, provision, covenant or condition as applied to other persons, places and circumstances shall remain
in full force and effect.

 

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		21.	Construction 

 

The headings and captions of this Agreement are provided for
convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts of
this Agreement shall be in all cases construed according to its fair meaning and not strictly for or against the Company or Executive.

 

		22.	Rights Cumulative 

 

The rights and remedies provided by this Agreement are cumulative,
and the exercise of any right or remedy by either party hereto (or by its successor), whether pursuant to this Agreement, to any
other agreement, or to law, shall not preclude or waive its right to exercise any or all other rights and remedies.

 

		23.	Nonwaiver 

 

No failure or neglect of either party hereto in any instance
to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege
or of the same right, power or privilege in any other instance. All waivers by either party hereto must be contained in a written
instrument signed by the party to be charged and, in the case of the Company, by an officer of the Company (other than Executive)
or other person duly authorized by the Company.

 

		24.	Notices 

 

Any and all notices or other communication provided for herein,
shall be given by registered or certified mail, return receipt requested, in case of the Company to its principal office, and in
the case of the Executive to the Executive’s residence address set forth on the first page of this Agreement or to such other address
as may be designated by the Executive.

 

		25.	Assistance in Litigation 

 

Executive shall, during and after termination of employment,
upon reasonable notice, furnish such information and proper assistance to the Company as may reasonably be required by the Company
in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become a party; provided, however,
that such assistance following termination shall be furnished at mutually agreeable times and for mutually agreeable compensation.

 

		26.	Solicitation

 

The Executive further agrees that during the term of this Agreement
and for a period of two (2) years following the termination of this Agreement, whether the termination shall be voluntary or involuntary,
or with or without cause, or whether the termination is solely due to the expiration of the term of this Agreement, the Executive
will not, in any manner or at any time, solicit or encourage any person, firm, Company or other business entity who are clients,
business associates or referral sources of the Company to cease doing business with the Company or to do business with the Executive.

 

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		27.	Covenants Independent

 

Each restrictive covenant on the part of the Executive set forth
in this Agreement shall be construed as a covenant independent of any other covenant or provisions of this Agreement or any other
agreement which the Company and the Executive may have, fully performed and not executory, and the existence of any claim or cause
of action by the Executive against the Company whether predicated upon another covenant or provision of this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of any other covenant.

 

		28.	Injunctive and Equitable Relief 

 

Executive and Company recognize and expressly agree that the
extent of damages to Company in the event of a breach by Executive of any restrictive covenant set forth herein would be impossible
to ascertain, that the irreparable harm arising out of any breach shall be irrefutably presumed, and that the remedy at law for
any breach will be inadequate to compensate the Company. Consequently, the Executive agrees that in the event of a breach of any
such covenant, in addition to any other relief to which Company may be entitled, Company shall be entitled to enforce the covenant
by injunctive or other equitable relief ordered by a court of competent jurisdiction.

 

		29.	Indemnification 

 

29.1 The Executive
hereby agrees to indemnify and hold the Company and its officers, directors, shareholders and Executives harmless from and against
any loss, claim, damage or expense, and/or all costs of prosecution or defense of their rights hereunder, whether in judicial proceedings,
including appellate proceedings, or whether out of court, including without limiting the generality of the foregoing, attorneys’
fees, and all costs and expenses of litigation, arising from or growing out of the Executive’s breach or threatened breach of any
covenant contained herein.

 

29.2 Company will receive
indemnification as an Officer and/or Director of the Company to the maximum extent extended by Nevada law to officers and directors
of the Company, generally, as set forth in the Company’s Articles of Incorporation, bylaws, and an indemnification agreement
between the Company and you (which will be provided to you upon the Effective Date) and any director and officer insurance the
Company may have and maintain from time to time.

 

		30.	Acknowledgment

 

The Executive acknowledges that when this Agreement is concluded,
the Executive will be able to earn a living without violating the foregoing restrictions and that the Executive’s recognition and
representation of this fact is a material inducement to the execution of this Agreement and to Executive’s continued relationship
with the Company.

 

		31.	Survival of Covenants 

 

All restrictive covenants contained in this Agreement shall
survive the termination of this Agreement.

 

		32.	Limitations on Authority 

 

Without the express written consent from the Company, the Executive
shall have no apparent or implied authority to: (i) Pledge the credit of the Company or any of its other Executives; (ii) Bind
the Company under any contract, agreement, note, mortgage or otherwise; (iii) Release or discharge any debt due the Company unless
the Company has received the full amount thereof; or (iv) sell, mortgage, transfer or otherwise dispose of any assets of the Company.

 

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		33.	Representation and Warranty of Executive

 

The Executive acknowledges and understands that the Company
has extended employment opportunities to Executive based upon Executive’s representation and warranty that Executive is in good
health and able to perform the work contemplated by this Agreement for the term hereof.

 

		34.	Invalid Provision; Severability 

 

The invalidity or unenforceability of a particular provision
of this Agreement shall not affect the other provisions hereof, and the Agreement shall be construed in all respects as if such
invalid or unenforceable provisions were omitted.

 

		35.	Modification 

 

No change or modification of this Agreement shall be valid unless
the same be in writing and signed by the parties hereto.

 

		36.	Entire Agreement 

 

This Agreement contains the entire agreement and supersedes
all prior agreements and understandings, oral or written, with respect to the subject matter hereof. This Agreement may be changed
only by an agreement in writing signed by the party against whom any waiver, change, amendment, modification, or discharge is sought.

 

		37.	Disputes 

 

Arbitration

 

Any controversy, claim or dispute arising out of or relating
to this Agreement or the employment relationship, either during the existence of the employment relationship or afterwards, between
the parties hereto, their assignees, their affiliates, their attorneys, or agents, shall be settled by arbitration in Las Vegas,
NV. Such arbitration shall be conducted in accordance with the then prevailing commercial arbitration rules of the American Arbitration
Association (but the arbitration shall be in front of an arbitrator, with the following exceptions if in conflict: (a) one
arbitrator shall be chosen by All American Beverage Corporation; (b) each party to the arbitration will pay its pro rata share
of the expenses and fees of the arbitrator(s), together with other expenses of the arbitration incurred or approved by the arbitrator(s);
and (c) arbitration may proceed in the absence of any party if written notice of the proceedings has been given to such party.
The parties agree to abide by all decisions and awards rendered in such proceedings. Such decisions and awards rendered by the
arbitrator shall be final and conclusive and may be entered in any court having jurisdiction thereof as a basis of judgment and
of the issuance of execution for its collection. All such controversies claims or disputes shall be settled in this manner in lieu
of any action at law or equity; provided however, that nothing in this subsection shall be construed as precluding the Company
from bringing an action for injunctive relief or other equitable relief or relief under the Confidential Information and Invention
Assignment Agreement. The arbitrator shall not have the right to award punitive damages, consequential damages, lost profits or
speculative damages to either party. The parties shall keep confidential the existence of the claim, controversy or disputes from
third parties (other than the arbitrator), and the determination thereof, unless otherwise required by law or necessary for the
business of the Company. The arbitrator(s) shall be required to follow applicable law.

  

IF FOR ANY REASON THIS ARBITRATION CLAUSE BECOMES NOT APPLICABLE,
THEN EACH PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO
ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
MATTER INVOLVING THE PARTIES HERETO.

 

    12

     

    

 

In witness hereof,
each party to this Agreement has caused it to be executed on the date indicated below.

  

	RICHARD S. GROBERG - EXECUTIVE	 	MJ HOLDINGS, INC. - COMPANY
	 	 	 
	/S/
    Richard S. Groberg	 	/S/ Paris Balaouras
	Signature	 	Paris Balaouras, Chief Executive Officer

 

 

 

13EXHIBIT
10.1

 

Form
of Promissory Note

 

     

     

    

 

PROMISSORY
NOTE

 

	$500,000.00	Minneapolis, MN July 9, 2019

 

             FOR VALUE RECEIVED, Vegalab, Inc. ("Borrower") promises
to pay to the order of ______________. or its successors and assigns ("Holder") at _________________, or such other address
as it may designate from time to time, the principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000) (the “Loan Amount”),
together with interest thereon as set forth herein, on the following terms and conditions:

 

		1.	Interest.
Borrower will pay interest on the unpaid principle amount hereof from time to time outstanding at the rate of SIX PERCENT (6%)
per annum.

 

		2.	Payment
Schedule. Principal and interest on this Note shall be payable in equal monthly installments beginning April 1, 2020
and continuing until November 1, 2020, at which time all outstanding principal and Interest shall be due. Any partial payment of
this Note shall be applied first to accrued interest and then to principal.

 

		3.	Prepayment.
This Note may be prepaid, in whole or in part, at any time at the Borrower's option.

 

		4.	Warrant
Kicker. As additional consideration for the making of this loan Borrower has granted to Holder a Stock Purchase Warrant
exercisable at any time on or prior to July 9, 2023, pursuant to which Holder has the right to purchase 3,400,000 shares of the
Borrower’s Common Stock (the “Shares”) for $1.00 per share.

 

		5.	Intellectual
Property. Any intellectual property in use by the Borrower, in particular the intellectual property owned by the Swiss
entity that is under common control with any owner of Borrower, shall be assigned to Borrower.

 

		6.	Controller.
Borrower agrees to give financial visibility to Phyllis Okochi, the CFO of Borrower.

 

		7.	UCC
Liens. In the event that Borrower fails to secure terminations for any outstanding UCC lien statements that have been
filed against Borrower as debtor by August 1, 2019, Borrower agrees to convey $500,000 of inventory to Holder, which Borrower agrees
to purchase back from Holder at a 15% premium.

 

		8.	Warranties
and Representations. The Borrower hereby warrants, represents and certifies to and for the benefit of Holder as follows:

 

8.1       Borrower is
under no legal disability to execute, deliver and perform the Note;

 

8.2       the execution,
delivery and performance by Borrower of the agreements within this Note will not violate any Jaw, rule, regulation or court order
or result in the breach of or constitute a default under any indenture or loan, credit or other agreement or instrument to which
Borrower is a party or by which its properties may be bound or affected or result in the creation or imposition of any lien, charge
or encumbrance of any nature upon any of its properties or assets contrary to the terms of any such instrument or agreement;

 

8.3       the Note constitutes
the legal, valid and binding obligation of Borrower enforceable in accordance with its respective terms (except, as to enforceability,
to the extent limited by bankruptcy, insolvency and other similar laws affecting creditors’ rights generally);

 

     

     

    

 

8.4       there is no
suit, action or proceeding pending or, to the knowledge of Borrower, threatened against or affecting Borrower or Guarantor before
any court, arbitrator, administrative agency or other governmental authority which, if adversely determined, would materially and
adversely affect its business, properties, operations, assets or condition (financial or otherwise) or the validity of any of the
transactions contemplated by the Note, or the ability of Borrower or Guarantor to perform its or his obligations hereunder or thereunder
or as contemplated hereby or thereby;

 

8.5       Neither Borrower
nor Guarantor is in default of a material provision under any material agreement, instrument, decree or order to which it or he
is a party or to which its or his property is bound or affected;

 

8.6       All financial
information of the Borrower and the Guarantor provided to the Holder is true, accurate and complete as of the date of such information.
There has been no material adverse change in the Borrower’s or Guarantor’s financial condition from the date of such
information. All financial statements of the Borrower and the Guarantor fully and fairly present the financial condition of the
Borrower or the Guarantor, as the case may be, on the dates thereof and the results of its operations for the periods covered thereby.
The Borrower and the Guarantor have filed all required state, federal and local tax returns and have paid, or made arrangements
for the payment of, all taxes due and owing,

 

8.7       Borrower has
not entered into any loan agreements, executed any notes, or further encumbered the Collateral, except as disclosed to Holder and
outlined on Exhibit
A attached hereto.

 

		9.	Covenant.
In addition to the covenants and agreements of Borrower set forth and contained herein and the documents related hereto, Borrower
hereby covenants and agrees to and with Holder to keep, perform, enforce and maintain in full force and effect all of the terms,
covenants, conditions and requirements of the Note.

 

		10.	Default
and Remedies.

 

10.1       As used herein,
the term “Event of Default” shall mean and include each or all of the following events:

 

10.1.1       Borrower
shall fail to pay, within ten (10) days after the due date thereof, any amounts required to be paid by Borrower under the Note
or any other indebtedness of Borrower to Holder, whether any such indebtedness is now existing or hereafter arises and whether
direct or indirect, due or to become due, absolute or contingent, primary or secondary or joint or joint and several;

 

10.1.2       Borrower
or Guarantor shall fail to observe or perform any of the covenants, conditions or agreements to be observed or performed by it
or he under the Note or Guaranty or any credit or similar agreement between Borrower and Holder for a period of twenty (20) days
after written notice, specifying such default and requesting that it be remedied, given to Borrower by Holder;

 

10,1.3      Borrower
or Guarantor shall file a petition in bankruptcy under any present or future state or federal bankruptcy act or under any similar
federal or state law, or shall be adjudicated a bankrupt or insolvent, or shall make a general assignment for the benefit of his
creditors, or shall be unable to pay its debts generally as they become due; or if a petition or answer proposing the adjudication
of Borrower or Guarantor as a bankrupt under any present or future state or federal bankruptcy act or any similar federal or state
law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the
filing thereof;

 

10.1.4       final
judgment(s) for the payment of money shall be rendered against Borrower or Guarantor and shall remain undischarged for a period
of thirty (30) days during which execution shall not be effectively stayed;

 

     

     

    

 

10.1.5       Borrower
or Guarantor shall be or become insolvent (whether in the equity or bankruptcy sense);

 

10.1.6       any
representation or warranty made by Borrower in the Note or Guarantor in the Guaranty shall prove to be untrue or misleading in
any material respect, or any statement, certificate or report furnished hereunder or under any of the foregoing documents by or
on behalf of Borrower or Guarantor to Holder shall prove to be untrue or misleading in any material respect on the date when the
facts set forth and recited therein are stated or certified;

 

10.1.7       Guarantor
shall die or take any action to revoke or terminate the Guaranty, provided however, the same shall not constitute an Event of Default
unless Borrower is unable to provide a substitute guarantor that is reasonably satisfactory to Holder within ninety (90) days following
the death of the Guarantor.

 

10.2       Rights
and Remedies. Upon the occurrence of an Event of Default or at any time during its continuance, Holder may, at its option,
exercise any and all of the following rights and remedies (and any other rights and remedies available to it):

 

10.2.1       Holder
may, without notice, declare immediately due and payable all unpaid sums due to it under this Note, and to demand immediate payment
of the Note;

 

10.2.2       Holder
shall have the right, in addition to any other rights provided by law, to enforce its rights and remedies under the Note.

 

		11.	Notices.
All notices required pursuant to the terms of this Note shall be in writing and either delivered personally or sent by United States
mail. If sent by mail, notice shall be deemed given the second day following its posting when deposited in the US mail, properly
addressed and postage prepaid.

 

		12.	Security
Interest. This Note is secured by all of Borrower’s present and future assets, wherever located, including but
not limited to the Borrower’s accounts, chattel paper, inventory, equipment, instruments including promissory notes, investment
property, documents, deposit accounts, letter of credits rights, general intangibles, supporting obligations and all proceeds and
products of the foregoing (the “Collateral”). Holder’s Security Interest shall be evidenced by a UCC Financing
Statement to be filed promptly upon receipt of funds by Borrower, and updated from time to time with the Nevada Secretary of State,

 

		13.	Personal
Guarantee. Prompt repayment of this Note according to its terms is personally and unconditionally guaranteed by David
Selakovic (“Guarantor”), pursuant to the terms of the attached Amended Personal Guarantee of even date herewith.

 

		14.	Costs
of Collection. Borrower agrees to pay all costs of collection of this Note, including, but not limited to, reasonable
attorneys' fees and legal expenses.

 

		15.	Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Minnesota.

 

		16.	Remedies.
The remedies of Holder as provided herein shall be cumulative and concurrent and may be pursued singularly, successively or together,
at the sole discretion of Holder, and may be exercised as often as occasion there for shall occur; and the failure to exercise
any such right or remedy shall in no event be construed as a waiver or release thereof.

 

		17.	Performance.
Borrower waives presentment for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice of protest
of this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement of the payment
of this Note.

 

     

     

    

 

		18.	Waiver.
Holder shall not be deemed by any act of omission or commission to have waived any of its rights or remedies hereunder unless such
waiver is in writing and signed by Holder, and then only to the extent specifically set forth in the writing. A waiver with reference
to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event.

 

		19.	Usury.
All agreements herein are expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be
paid to Holder for the use, forbearance or detention of the money to be advanced hereunder exceed the highest lawful rate permissible
under applicable usury laws. If from any circumstances whatsoever fulfillment of any provision hereof at the time performance of
such provisions shall be due shall involve transcending the limit of validity prescribed by law which a court of competent jurisdiction
may deem applicable hereto, then the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any
circumstance Holder shall ever receive as interest an amount which would exceed the highest lawful rate, such amount which would
be excessive interest shall be applied to the reduction of the unpaid principal balance due hereunder and not to the payment of
interest.

 

		20.	Counterparts.
This Note may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken
together shall constitute but one and the same instrument. Executed copies of the signature page(s) of this Note sent by facsimile
or transmitted electronically in either Tagged Image File Format (“TIFF”) or Portable Document Format (“PDF”)
shall be treated as originals, fully binding and with full legal force and effect, and Borrower waives any rights it may have to
object to such treatment. If delivering an executed counterpart of this Note by facsimile, TIFF or PDF, Borrower shall also deliver
a manually executed counterpart of this N ote, but the failure to deliver a manually executed counterpart should not affect the
validity, enforceability, and binding effect of this Note. The page(s) of any counterpart of this Note containing Borrower’s
signature or the acknowledgement of such party’s signature hereto may be detached therefrom without impairing the effect
of the signature or acknowledgement, provided such pages are attached to any other counterpart identical thereto except having
additional pages containing the signatures or acknowledgements thereof of other parties.

 

IN WITNESS WHEREOF, this Note has been
executed as of the date set forth above.

 

	Vegalab, Inc. (Borrower)
	 	 	 
	By:	David Selakovic	 
	Its:	CEO

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