Document:

Exhibit 10.2

 

 

     

     

    

 

 

 

     

     

    

 

 

 

     

     

    

 

VERITAS
FARMS, INC.

 

EXHIBIT
A

 

DESIGNATION
OF SERIES A CONVERTIBLE PREFERRED STOCK

AND

SERIES
B CONVERTIBLE PREFERRED STOCK

 

General

 

At
a duly called meeting of the Board of Directors (the “Board of Directors” or the “Board”) of
Veritas Farms, Inc. (the “Company”) held on April 30, 2021, the following resolutions were duly adopted by
the Board:

 

WHEREAS,
the Amended and Restated Articles of Incorporation of the Company (the “Articles of Incorporation”) authorizes Preferred
Stock consisting of 5,000,000 shares, par value $0.001 per share, issuable from time to time in one or more series;

 

WHEREAS,
the Board of Directors is authorized, subject to limitations prescribed by law and by the provisions of Article V of the Articles
of Incorporation, as amended, to establish and fix the number of shares to be included in any series of Preferred Stock and the designation,
tights, preferences, powers, restrictions and limitations of the shares of such series; and

 

WHEREAS,
it is the desire of the Board of Directors to establish and fix the number of shares to be included in two new series of Preferred
Stock and the designation, rights, preferences and limitations of the shares of such two new series.

 

NOW,
THEREFORE, BE IT RESOLVED, that pursuant to Article V of the Articles of Incorporation there is hereby established (i) a new
series of 4,000,000 shares of Series A Convertible Preferred Stock of the Company (the “Series A Preferred Stock”); and
(ii) a new series of 1,000,000 shares of Series B Convertible Preferred Stock of the Company (the “Series B Preferred Stock”);
each series the designation, rights, preferences, powers, restrictions and limitations set forth as follows:

 

Series
A Convertible Preferred Stock

 

1.
Designation and Number of Shares. The series will be known as the “Series A Convertible Preferred Stock” and
will consist of 4,000,000 shares of the authorized but unissued preferred stock of the Company. The face amount of each share of Series
A Preferred Stock shall be One Dollar ($1.00) (the “Stated Value”).

 

2.
Ranking. In respect of rights to the payment of dividends and the distribution of assets in the event of any liquidation, dissolution
or winding-up of the Company, the Series A Preferred Stock shall rank (a) junior to the Company’s Series B Convertible Preferred Stock
(the “Series B Preferred Stock”); and (b) senior to (i) the Company’s common stock, par value $0.001 per share (the
“Common Stock”); and (ii) senior to any other class or series of stock (including other series of Preferred Stock) of
the Company (collectively, “Junior Stock”). 

 

    	1 | P a g e

     

    

 

3.
Dividends. From and after the date of the issuance of any shares of Series A Preferred Stock, dividends at the rate per annum
of 8%, compounded annually, accrue daily on the Stated Value (the “Accruing Dividends”). Accruing Dividends shall accrue
from day to day, whether or not declared, and shall be cumulative; provided, however, such Accruing Dividends shall be payable
only when, as, and if declared by the Board of Directors and the Company shall be under no obligation to pay such Accruing Dividends
except as set forth herein. The Company shall not declare, pay or set aside any dividends on shares of any other class or series of capital
stock of the Company (other than dividends on (a) shares of Series B Preferred Stock and (b) Common Stock payable in shares of Common
Stock) unless (in addition to the obtaining of any consents required elsewhere in the Articles of Incorporation) the holders of the Series
A Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Series A Preferred
Stock in an amount at least equal to the sum of (a) the amount of the aggregate Accruing Dividends then accrued on such share of Series
A Preferred Stock and not previously paid; and (b) (i) in the case of a dividend on Common Stock or any class or series that is convertible
into Common Stock, that dividend per share of Series A Preferred Stock as would equal the product of (A) the dividend payable on each
share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock;
and (B) the number of shares of Common Stock issuable upon conversion of a share of Series A Preferred Stock, in each case calculated
on the record date for determination of holders entitled to receive such dividend; or (ii) in the case of a dividend on any class or
series that is not convertible into Common Stock, at a rate per share of Series A Preferred Stock determined by (A) dividing the amount
of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series
of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization
with respect to such class or series); and (B) multiplying such fraction by an amount equal to the Stated Value of the Series A Preferred
Stock; provided, that if the Company declares, pays or sets aside, on the same date, a dividend on shares of more than one class
or series of capital stock of the Company, the dividend payable to the holders of Series A Preferred Stock pursuant to this Section
3 shall be calculated based upon the dividend on the class or series of capital stock that would result in the highest Series A Preferred
Stock dividend.

 

4.
Liquidation. 

 

(a)
Preference. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or any Deemed
Liquidation Event, as defined in Section 4(b) below (collectively, a “Liquidation Event”), the holders of Series
A Preferred Stock shall be entitled to receive, after payment to all holders of Series B Preferred Stock of a liquidation preference
equal to the aggregate amount of one hundred fifty percent (150%) of the Stated Valued of the Series B Preferred Stock and the amount
of the accrued but unpaid dividends on the Series B Preferred Stock, but prior and in preference to any distribution of any of the assets
of the Company to the holders of Junior Stock by reason of their ownership thereof, an aggregate amount per share equal to the Stated
Value of the Series A Preferred Stock and the accrued but unpaid dividends thereon (the “Liquidation Amount”). After
the payment to all holders of Series B Preferred Stock of a liquidation preference equal to the aggregate amount of one hundred fifty
percent (150%) of the Stated Valued of the Series B Preferred Stock and the amount of the accrued but unpaid dividends on the
Series B Preferred Stock and to all holders of the Series A Preferred Stock of the full Liquidation Amount, the remaining assets of the
Company available for distribution to its shareholders shall be distributed among the holders of the shares of Series B Preferred Stock
and Junior Stock, pro rata, on an “as converted basis,” determined immediately prior to such Liquidation Event, and
the Series A Preferred Stock shall not be entitled to participate in such distribution of the remaining assets of the Company. 

 

    	2 | P a g e

     

    

 

(b)
Consolidation, Merger, Etc. (i) Any consolidation or merger of the Company with or into any other corporation or other
entity or person, or any other corporate reorganization (including a share exchange), in which the shareholders of the Company immediately
prior to such consolidation, merger or reorganization, do not hold at least a majority of the resulting or surviving entity’s voting
power immediately after such consolidation, merger or reorganization (solely in respect of their equity interests in this Company); (ii)
the sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets or business of the Company;
and (iii) or a Sale of Voting Control shall, in addition to any liquidation, dissolution or winding up of the Company, each also be deemed
to be a Liquidation Event. Notwithstanding the foregoing, any transaction described in (i) or (ii) or (iii) above (individually and collectively,
a “Deemed Liquidation Event”) shall not constitute a Liquidation Event (or a Deemed Liquidation Event) if, upon the
request of the Company (upon the approval of a majority of the members of the Board, excluding for this purpose any director elected
or designated by holders of Series A Preferred Stock), the holders of a majority of the issued and outstanding shares of Series A Preferred
Stock consent, in writing, to such transaction being deemed not to be a Liquidation Event. “Sale of Voting Control” means
the transfer by shareholders of the Company (in one or a series of related transactions) to one person or group of related persons of
shares constituting not less than a majority of the outstanding shares of Common Stock of the Company with the Series A Preferred Stock,
Series B Preferred Stock and any other class of convertible Junior Stock, on an “as converted” basis. 

 

(c)
Consideration. If any of the assets of the Company are to be distributed, or consideration is otherwise to be distributed,
paid or received in a transaction described, under this Section 4 in a form other than cash, the fair market value of such assets
(including for purposes of payment of the Liquidation Amount) shall be determined in good faith by the Board. Any securities shall be
valued as follows (or if otherwise so determined by the Board, in a manner provided for under the negotiated terms of an arms-length
transaction with a third party, approved by the Board and the requisite vote of the shareholders of the Company):

 

(i)
Securities not subject to investment letter or other similar restrictions on free marketability covered by (B) below:

 

(A)
If traded on a national securities exchange (as defined under the Securities Exchange Act of 1934, as amended), the value shall be deemed
to be the average of the closing prices of the securities on such exchange over the twenty (20) trading day period ending three days
prior to the closing;

 

(B)
If actively traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable)
over the twenty (20) trading day period ending three days prior to the closing; and 

 

(C)
If there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board.

 

    	3 | P a g e

     

    

 

(ii)
The method of valuation of securities subject to investment letter or other restrictions on free marketability (other than restrictions
arising solely by virtue of a shareholder’s status as an affiliate or former affiliate) shall be to make an appropriate discount (as
determined by the Board in good faith) from the market value determined as pursuant to clause (i) above to reflect the approximate fair
market value thereof.

 

(d)
Notice of Liquidation Event. The Company shall give each holder of record of Series A Preferred Stock written notice of
the transaction which, if effected, will constitute a Liquidation Event not later than twenty (20) days prior to the shareholders’ meeting
called to approve such transaction, or twenty (20) days prior to the closing of such transaction, whichever is earlier, and shall also
notify such holders in writing of the final approval of such transaction. The first notice shall describe the material terms and conditions
of the pending transaction and the provisions of this Section 4 (d). The Company shall thereafter give such holders prompt notice
of any material changes in the terms of the pending transaction. The transaction shall in no event take place sooner than twenty (20)
days after the Company has given the first notice or sooner than seven (7) days after the Company has given notice of any material changes
in the terms of such transaction. In the event the requirements of this Section 4(d) are not complied with in all material respects,
the Company shall forthwith either:

 

 (i) cause such closing to be postponed until such time as the requirements of this Section 4(d) have been complied with; or 

 

(ii) cancel such transaction, in which event the rights, preferences and privileges of the Series A Preferred Stock shall continue in effect in accordance with the terms of the Articles of Incorporation, as the same may be amended from time to time. 

 

5.
Conversion. The holders of Series A Preferred Stock shall have the following conversion rights (the “Conversion Rights”):

 

(a)
Voluntary Conversion. Each share of Series A Preferred Stock shall be convertible, at the option of the holder thereof,
at any time and from time to time and without the payment of additional consideration by the holder thereof, into such number of fully
paid and nonassessable shares of Common Stock as is determined by dividing the Stated Value by the Conversion Price in effect at the
time of conversion. The conversion price of Series A Preferred Stock (the “Conversion Price”) shall initially be $0.05
per share. The Conversion Price, and the rate at which shares of Series A Preferred Stock may be converted into shares of Common Stock,
shall be subject to adjustment as provided below. Any accrued but unpaid dividends existing at the time of any conversion pursuant to
this Section 5(a) may, at the option of the holder, be converted into shares of Common Stock at a price per share equal to the
Stated Value divided by the Conversion Price (as equitably adjusted for any stock splits, stock dividends, reverse stock splits, stock
combinations and other similar capitalization changes).

 

(b)
Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of Series A Preferred Stock. In
lieu of any fractional shares to which a holder would otherwise be entitled, the Company shall pay cash in an amount equal to the product
(calculated to the nearest cent) of such fraction and the fair market value of one share of Common Stock as determined in good faith
by the Board.

 

    	4 | P a g e

     

    

 

(c)
Mechanics of Conversion. 

 

(i)
In order for a holder of Series A Preferred Stock to convert shares of Series A Preferred Stock into shares of Common Stock, such holder
shall surrender the certificate or certificates representing such shares of Series A Preferred Stock, at the office of the transfer agent
for the Series A Preferred Stock (or at the principal office of the Company if the Company serves as its own transfer agent), together
with written notice that such holder elects to convert all or any portion of the shares of the Series A Preferred Stock represented by
such certificate or certificates. Such notice shall state such holder’s name or the names of the nominees in which such holder wishes
the certificate or certificates for shares of Common Stock to be issued. If required by the Company, certificates surrendered for conversion
shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Company, duly executed
by the registered holder or such holder’s attorney duly authorized in writing. The date of receipt of such certificates and notice by
the transfer agent (or by the Company if the Company serves as its own transfer agent) shall be the conversion date (“Conversion
Date”). The Company shall, as soon as practicable after the Conversion Date, issue and deliver to the holder of such Series
A Preferred Stock, or to such holder’s nominees, a certificate or certificates representing the number of shares of Common Stock to which
such holder is entitled upon conversion of such Series A Preferred Stock, together with cash in lieu of any fractional share.

 

(ii)
The Company shall at all times when shares of Series A Preferred Stock are outstanding, reserve and keep available out of its authorized
but unissued stock, for the purpose of effecting the conversion of Series A Preferred Stock, such number of its duly authorized shares
of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of Series A Preferred Stock
into shares of Common Stock. Before taking any action which would cause an adjustment reducing the Conversion Price below the then par
value of the shares of Common Stock issuable upon conversion of Series A Preferred Stock, the Company will take any corporate action
which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock at such adjusted Conversion Price.

 

(d)
Adjustments to Conversion Price.

 

(i)
Adjustment for Stock Splits and Combinations. If the Company shall at any time, or from time to time, after the date of the
first issuance of Series A Preferred Stock (the “Original Issue Date”) effect a subdivision of the outstanding Common
Stock, the Conversion Price then in effect immediately before that subdivision shall be proportionately decreased. If the Company shall
at any time, or from time to time, after the Original Issue Date combine the outstanding shares of Common Stock, the Conversion Price
then in effect immediately before the combination shall be proportionately increased. Any adjustment under this subsection shall become
effective concurrently with the effectiveness of such subdivision or combination.

 

    	5 | P a g e

     

    

 

(ii)
Adjustment for Common Stock Dividends and Distributions. If the Company at any time, or from time to time, after the Original
Issue Date, shall make or issue a dividend or other distribution payable in additional shares of Common Stock, then and in each such
event the Conversion Price then in effect shall be decreased concurrently with the issuance of such dividend or distribution, by multiplying
the Conversion Price then in effect by a fraction: (x) the numerator of which shall be the total number of shares of Common Stock
issued and outstanding immediately prior to the time of such issuance; and (y) the denominator of which shall be the total number
of shares of Common Stock issued and outstanding immediately prior to the time of such issuance plus the number of shares of Common Stock
issuable in payment of such dividend or distribution; provided, however, that no adjustment with respect to the Conversion Price
or the Series A Preferred Stock shall be made if the holders of Series A Preferred Stock simultaneously receive, at the election of the
Company (i) a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock that
they would have received if all outstanding shares of Series A Preferred Stock had been converted into Common Stock on the date of such
event or (ii) a dividend or other distribution of shares of Series A Preferred Stock based on the number of shares of Common Stock which
each share of Series A Preferred Stock is convertible into, as of the date of such event, as is equal to the number of additional shares
of Common Stock being issued with respect to each share of Common Stock in such dividend or distribution.

 

(iii)
Adjustment for issuances below Conversion Price. If the Company at any time, or from time to time, after the Original Issue
Date, shall issue shares of its Common Stock for consideration per share (“Offering Price”) or issue any securities
convertible into or exchangeable for its Common Stock for a consideration per share of Common Stock (the “Exchange Price”)
deliverable upon conversion or exchange of such securities (excluding shares of Common Stock or securities convertible into or exchangeable
for its Common Stock issued (a) in any of the transactions described in Section 5(d)(1) and 5 (d)(ii) above; (b) upon issuance
of stock or exercise of options granted to the Company’s officers, directors, employees and consultants under a plan or plans adopted
by the Company’s Board of Directors or a committee thereof and approved by its shareholders (but only to the extent that the aggregate
number of shares excluded by this Section 5(d)(iii) does not exceed 15% of the Company’s Common Stock outstanding, on a fully
diluted basis, at the time of any issuance); (c) upon exercise of options, warrants, convertible securities and convertible note outstanding
as of the Original Issue Date; (d) to shareholders of any corporation which merges into the Company in proportion to their stock holdings
of such corporation immediately prior to such merger, upon such merger; (e) in a bona fide public offering pursuant to a firm commitment
underwriting; or (f) in connection with an acquisition of a business or technology which has been approved by a majority of the Company’s
outside directors but only if no adjustment is required pursuant to any other specific subsection of this Section 5 with respect
to the transaction giving rise to such rights), less than the Conversion Price, then the Conversion Price shall be immediately reset
to equal such lower Offering Price or Exchange Price.

 

(iv)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant
to this Section 5 (d), the Company at its expense shall, as promptly as reasonably practicable but in any event not later than
ten (10) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series
A Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other
property into which the Series A Preferred Stock is convertible) and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall, as promptly as reasonably practicable after the written request at any time of any holder of Series A Preferred
Stock (but in any event not later than ten (10) days thereafter), furnish or cause to be furnished to such holder a certificate setting
forth (i) the Series A Conversion Price then in effect, and (ii) the number of shares of Common Stock and the amount, if any, of other
securities, cash or property which then would be received upon the conversion of Series A Preferred Stock. 

 

    	6 | P a g e

     

    

 

(e)
Notices. All notices hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the person
to be notified; (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on
the next business day; (iii) five days after having been sent by certified mail, return receipt requested, postage prepaid; or (iv) the
next business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification
of receipt. All communications shall be sent to the holder at its address and facsimile number, if any, appearing on the books of the
Company.

 

6.
Status of Converted Stock. In the event any shares of Series A Preferred Stock shall be converted pursuant to Section 5 hereof,
the shares so converted shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease
and terminate as of the time of conversion, except only the right of the holders thereof to receive shares of Common Stock in exchange
therefore and, as applicable, to receive payment of any accrued but unpaid dividends thereon, and shall thereupon become Preferred Stock
of the Company without further designation or terms applicable thereto, other than those which are otherwise applicable, if any, to the
Preferred Stock of the Company, generally.

 

7.
Voting Rights. Except as otherwise provided herein or as required by applicable law, the holders of Series A Preferred Stock shall
be entitled to vote, together with holders of Series B Preferred Stock and Common Stock a single class, on an “as converted”
basis, with respect to any matter or question upon which holders of Common Stock have the right to vote. The holders of the Series
A Preferred Stock shall also be entitled to vote, separately as a class, on such matters or questions as may, hereunder or otherwise,
be presented to holders of the Series A Preferred Stock for a vote from time to time, with each such share having an equivalent vote,
and the Series A Preferred Stock shall be entitled to vote together as a single class with any class or series of stock of the Company
other than the Common Stock, as may be issued and outstanding from time to time, as and to the extent which the voting rights and other
terms applicable to such stock shall from time to time so provide. In addition to any other vote or approval required under Nevada law,
holders of a majority of the issued and outstanding shares of Series A Preferred Stock shall approve any amendment to the Articles of
Incorporation that would have a material adverse effect on only the rights of the holders of the Series A Preferred Stock as expressly
set forth in the Articles of Incorporation.

 

    	7 | P a g e

     

    

 

8.
Protective Provisions. At all times prior to the earlier of the date (a) the Common Stock is listed for trading on a national
securities exchange; and (b) fewer than 500,000 shares of the Series A Preferred Stock designated hereunder are issued and outstanding,
the Company shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without
(in addition to any other vote required by law or the Articles of Incorporation) the prior written approval of the holders of a majority
of the outstanding Series A Preferred Stock:

 

(a)
amend or repeal any provision of the Articles of Incorporation or Bylaws, if such amendment or repeal would have a material adverse effect
on the rights of the holders of Series A Preferred Stock;

 

(b)
materially amend or alter the preferences, rights or privileges of the Series A Preferred Stock; 

 

(c)
declare or pay any dividends or make any distributions on any of the Company’s securities other than as provided herein;

 

(d)
purchase or redeem (or permit any subsidiary to purchase or redeem) any shares of equity securities of the Company other than pursuant
to any employment agreement or restricted stock or similar arrangement, or pursuant to any equity compensation plan or arrangement;

 

(e)
other than the Series B Preferred Stock that ranks senior to the Series A Preferred Stock, authorize or issue any new shares of Series
A Preferred Stock or any class or series of stock or any other equity interest in the Company that ranks on a parity with or senior to
the Series A Preferred Stock;

 

(f)
enter into an agreement that would materially limit the Company’s ability to perform its obligations in respect of the Series A Preferred
Stock;

 

(g)
liquidate, dissolve or wind-up the business and affairs of the Company, effect any merger or consolidation or any other Deemed Liquidation
Event, or consent to any of the foregoing; or

 

(h)
take any other action, which pursuant to the Articles of Incorporation or applicable Nevada law, requires the vote of the holders of
the Series A Preferred Stock as a separate class or series.

 

9.
Redeemed or Otherwise Acquired Shares. Any shares of Series A Preferred Stock that are redeemed or otherwise acquired by the Company
or any of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred.
Neither the Company nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Series A Preferred
Stock following such redemption or acquisition by the Company.

 

10.
Waiver. The rights, preferences, privileges and other terms of the Series A Preferred Stock may be waived as to all shares of
Series A Preferred Stock in any instance (without the necessity of convening any meeting of shareholders) upon the written agreement
or consent, or the vote at a duly called meeting of shareholders, of a majority of the holders of the Series A Preferred Stock, and such
waiver shall thereupon be binding upon all holders of Series A Preferred Stock.

 

    	8 | P a g e

     

    

 

11.
Miscellaneous. The holders of the Series A Preferred Stock shall be entitled to receive all communications sent by the Company
to the holders of the Common Stock.

 

Series B Convertible Preferred Stock

 

1. Designation and Number of Shares. The series will be known
as the “Series B Convertible Preferred Stock” and will consist of 1,000,000 shares of the authorized but unissued preferred
stock of the Company. The face amount of each share of Series B Preferred Stock shall be One Dollar ($1.00) (the “Stated Value”).

 

2 Ranking. In respect
of rights to the payment of dividends and the distribution of assets in the event of any liquidation, dissolution or winding-up of the
Company, the Series B Preferred Stock shall rank senior to (a) the Company’s Series A Convertible Preferred Stock (the “Series
A Preferred Stock”); (b) the Company’s common stock, par value $0.001 per share (the “Common Stock”);
and (c) any other class or series of stock (including other series of Preferred Stock) of the Company (collectively, “Junior
Stock”).

 

3.  Dividends. From
and after the date of the issuance of any shares of Series B Preferred Stock, dividends at the rate per annum of 8%, compounded
annually, accrue daily on the Stated Value (the “Accruing Dividends”). Accruing Dividends shall accrue from day
to day, whether or not declared, and shall be cumulative; provided, however, such Accruing Dividends shall be payable only
when, as, and if declared by the Board of Directors and the Company shall be under no obligation to pay such Accruing Dividends
except as set forth herein. The Company shall not declare, pay or set aside any dividends on shares of any other class or series of
capital stock of the Company (other than dividends on (a) Common Stock payable in shares of Common Stock) unless (in addition to the
obtaining of any consents required elsewhere in the Articles of Incorporation) the holders of the Series B Preferred Stock then
outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Series B Preferred Stock in an
amount at least equal to the sum of (a) the amount of the aggregate Accruing Dividends then accrued on such share of Series B
Preferred Stock and not previously paid; and (b) (i) in the case of a dividend on Common Stock or any class or series that is
convertible into Common Stock, that dividend per share of Series B Preferred Stock as would equal the product of (A) the dividend
payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted
into Common Stock; and (B) the number of shares of Common Stock issuable upon conversion of a share of Series B Preferred Stock, in
each case calculated on the record date for determination of holders entitled to receive such dividend; or (ii) in the case of a
dividend on any class or series that is not convertible into Common Stock, at a rate per share of Series B Preferred Stock
determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original
issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock
split, combination or other similar recapitalization with respect to such class or series); and (B) multiplying such fraction by an
amount equal to the Stated Value of the Series B Preferred Stock; provided, that if the Company declares, pays or sets aside,
on the same date, a dividend on shares of more than one class or series of capital stock of the Company, the dividend payable to the
holders of Series B Preferred Stock pursuant to this Section 3 shall be calculated based upon the dividend on the class or
series of capital stock that would result in the highest Series B Preferred Stock dividend.

 

    	9 | P a g e

     

    

 

4. Liquidation.

 

(a) Preference. In
the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or any Deemed Liquidation Event, as defined
in Section 4(b) below (collectively, a “Liquidation Event”), the holders of Series B Preferred Stock shall
be entitled to receive, prior and in preference to any distribution of any of the assets of the Company to the holders of Junior Stock
(including Series A Preferred Stock) by reason of their ownership thereof, a liquidation preference per share equal to one hundred fifty
percent (150%) of the Stated Valued of the Series B Preferred Stock and the amount of the accrued but unpaid dividends on the Series
B Preferred Stock (the “Liquidation Amount”). After the payment to all holders of Series B Preferred Stock of the
Liquidation Amount and to the payment to all holders of Series A Preferred Stock of a liquidation preference per share equal to the Stated
Valued of the Series A Preferred Stock and the amount of the accrued but unpaid dividends on the Series A Preferred Stock, the remaining
assets of the Company available for distribution to its shareholders shall be distributed among the holders of the shares of Series B
Preferred Stock and Junior Stock other than the Series A Preferred Stock, pro rata, on an “as converted basis,” as
applicable.

 

(b) Consolidation, Merger, Etc. (i) Any consolidation
or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization (including
a share exchange), in which the shareholders of the Company immediately prior to such consolidation, merger or reorganization, do not
hold at least a majority of the resulting or surviving entity’s voting power immediately after such consolidation, merger or reorganization
(solely in respect of their equity interests in this Company); (ii) the sale, lease, transfer, exclusive license or other disposition
of all or substantially all of the assets or business of the Company; and (iii) or a Sale of Voting Control shall, in addition to any
liquidation, dissolution or winding up of the Company, each also be deemed to be a Liquidation Event. Notwithstanding the foregoing,
any transaction described in (i) or (ii) or (iii) above (individually and collectively, a “Deemed Liquidation Event”) shall
not constitute a Liquidation Event (or a Deemed Liquidation Event) if, upon the request of the Company (upon the approval of a majority
of the members of the Board, excluding for this purpose any director elected or designated by holders of Series B Preferred Stock), the
holders of a majority of the issued and outstanding shares of Series B Preferred Stock consent, in writing, to such transaction being
deemed not to be a Liquidation Event. “Sale of Voting Control” means the transfer by shareholders of the Company (in
one or a series of related transactions) to one person or group of related persons of shares constituting not less than a majority of
the outstanding shares of Common Stock of the Company with the Series A Preferred Stock, Series B Preferred Stock and any other class
of convertible Junior Stock, on an “as converted” basis.

 

(c) Consideration.
If any of the assets of the Company are to be distributed, or consideration is otherwise to be distributed, paid or received
in a transaction described, under this Section 4 in a form other than cash, the fair market value of such assets (including for
purposes of payment of the Liquidation Amount) shall be determined in good faith by the Board. Any securities shall be valued as follows
(or if otherwise so determined by the Board, in a manner provided for under the negotiated terms of an arms-length transaction with a
third party, approved by the Board and the requisite vote of the shareholders of the Company):

 

    	10 | P a g e

     

    

 

(i) Securities not subject to investment letter or other similar restrictions on free marketability
covered by (B) below:

 

(A) If traded on a
national securities exchange (as defined under the Securities Exchange Act of 1934, as amended), the value shall be deemed to be the
average of the closing prices of the securities on such exchange over the twenty (20) trading day period ending three days prior to
the closing;

 

(B) If actively traded over-the-counter, the value shall be
deemed to be the average of the closing bid or sale prices (whichever is applicable) over the twenty (20) trading day period ending
three days prior to the closing; and

 

(C) If there is no active public market, the value shall be the fair market value thereof, as
determined in good faith by the Board.

 

(ii) The method of valuation of securities subject to investment letter
or other restrictions on free marketability (other than restrictions arising solely by virtue of a shareholder’s status as an affiliate
or former affiliate) shall be to make an appropriate discount (as determined by the Board in good faith) from the market value determined
as pursuant to clause (i) above to reflect the approximate fair market value thereof.

 

(d) Notice of Liquidation Event. The Company shall
give each holder of record of Series B Preferred Stock written notice of the transaction which, if effected, will constitute a
Liquidation Event not later than twenty (20) days prior to the shareholders’ meeting called to approve such transaction, or twenty
(20) days prior to the closing of such transaction, whichever is earlier, and shall also notify such holders in writing of the final
approval of such transaction. The first notice shall describe the material terms and conditions of the pending transaction and the
provisions of this Section 4(d). The Company shall thereafter give such holders prompt notice of any material changes in the
terms of the pending transaction. The transaction shall in no event take place sooner than twenty (20) days after the Company has
given the first notice or sooner than seven (7) days after the Company has given notice of any material changes in the terms of such
transaction. In the event the requirements of this Section 4(d) are not complied with in all material respects, the Company
shall forthwith either:

 

(i) cause such closing to be postponed until such time as the requirements
of this Section 4(d) have been complied with; or

 

(ii) cancel such transaction, in which event the rights,
preferences and privileges of the Series B Preferred Stock shall continue in effect in accordance with the terms of the Articles of
Incorporation, as the same may be amended from time to time.

 

5. Conversion.
The holders of Series B Preferred Stock shall have the following conversion rights (the “Conversion Rights”):

 

(a) Voluntary
Conversion. Each share of Series B Preferred Stock shall be convertible, at the option of the holder thereof, at any time
and from time to time and without the payment of additional consideration by the holder thereof, into such number of fully paid and
nonassessable shares of Common Stock as is determined by dividing the Stated Value by the Conversion Price in effect at the time of
conversion. The conversion price of Series B Preferred Stock (the “Conversion Price”) shall initially be $0.20 per
share. The Conversion Price, and the rate at which shares of Series B Preferred Stock may be converted into shares of Common Stock,
shall be subject to adjustment as provided below. Any accrued but unpaid dividends existing at the time of any conversion pursuant
to this Section 5(a) may, at the option of the holder, be converted into shares of Common Stock at a price per share equal to
the Stated Value divided by the Conversion Price (as equitably adjusted for any stock splits, stock dividends, reverse stock splits,
stock combinations and other similar capitalization changes).

 

    	11 | P a g e

     

    

 

(b) Fractional Shares.
No fractional shares of Common Stock shall be issued upon conversion of Series B Preferred Stock. In lieu of any fractional shares
to which a holder would otherwise be entitled, the Company shall pay cash in an amount equal to the product (calculated to the nearest
cent) of such fraction and the fair market value of one share of Common Stock as determined in good faith by the Board.

 

(c) Mechanics of Conversion.

 

(i) In order for a
holder of Series B Preferred Stock to convert shares of Series B Preferred Stock into shares of Common Stock, such holder shall
surrender the certificate or certificates representing such shares of Series B Preferred Stock, at the office of the transfer agent
for the Series B Preferred Stock (or at the principal office of the Company if the Company serves as its own transfer agent),
together with written notice that such holder elects to convert all or any portion of the shares of the Series B Preferred Stock
represented by such certificate or certificates. Such notice shall state such holder’s name or the names of the nominees in which
such holder wishes the certificate or certificates for shares of Common Stock to be issued. If required by the Company, certificates
surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory
to the Company, duly executed by the registered holder or such holder’s attorney duly authorized in writing. The date of receipt of
such certificates and notice by the transfer agent (or by the Company if the Company serves as its own transfer agent) shall be the
conversion date (“Conversion Date”). The Company shall, as soon as practicable after the Conversion Date, issue and
deliver to the holder of such Series B Preferred Stock, or to such holder’s nominees, a certificate or certificates representing the
number of shares of Common Stock to which such holder is entitled upon conversion of such Series B Preferred Stock, together with
cash in lieu of any fractional share.

 

(ii) The Company shall at all
times when shares of Series B Preferred Stock are outstanding, reserve and keep available out of its authorized but unissued stock, for
the purpose of effecting the conversion of Series B Preferred Stock, such number of its duly authorized shares of Common Stock as shall
from time to time be sufficient to effect the conversion of all outstanding shares of Series B Preferred Stock into shares of Common
Stock. Before taking any action which would cause an adjustment reducing the Conversion Price below the then par value of the shares
of Common Stock issuable upon conversion of Series B Preferred Stock, the Company will take any corporate action which may, in the opinion
of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock
at such adjusted Conversion Price.

 

    	12 | P a g e

     

    

 

(d)
Adjustments to Conversion Price.

 

(i) 
Adjustment for Stock Splits and Combinations. If the Company shall at any time, or from time to time, after the date of the
first issuance of Series B Preferred Stock (the “Original Issue Date”) effect a subdivision of the outstanding
Common Stock, the Conversion Price then in effect immediately before that subdivision shall be proportionately decreased. If the
Company shall at any time, or from time to time, after the Original Issue Date combine the outstanding shares of Common Stock, the
Conversion Price then in effect immediately before the combination shall be proportionately increased. Any adjustment under this
subsection shall become effective concurrently with the effectiveness of such subdivision or combination.

 

(ii) 
Adjustment for Common Stock Dividends and Distributions. If the Company at any time, or from time to time, after the Original
Issue Date, shall make or issue a dividend or other distribution payable in additional shares of Common Stock, then and in each such
event the Conversion Price then in effect shall be decreased concurrently with the issuance of such dividend or distribution, by multiplying
the Conversion Price then in effect by a fraction: (x) the numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance; and (y) the denominator of which shall be the total number of shares
of Common Stock issued and outstanding immediately prior to the time of such issuance plus the number of shares of Common Stock issuable
in payment of such dividend or distribution; provided, however, that no adjustment with respect to the Conversion Price or the
Series B Preferred Stock shall be made if the holders of Series B Preferred Stock simultaneously receive, at the election of the Company
(i) a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock that they would
have received if all outstanding shares of Series B Preferred Stock had been converted into Common Stock on the date of such event or
(ii) a dividend or other distribution of shares of Series B Preferred Stock based on the number of shares of Common Stock which each
share of Series B Preferred Stock is convertible into, as of the date of such event, as is equal to the number of additional shares of
Common Stock being issued with respect to each share of Common Stock in such dividend or distribution.

 

(iii) Adjustment
for issuances below Conversion Price. If the Company at any time, or from time to time, after the Original Issue Date, shall
issue shares of its Common Stock for consideration per share (“Offering Price”) or issue any securities convertible
into or exchangeable for its Common Stock for a consideration per share of Common Stock (the “Exchange Price”) deliverable
upon conversion or exchange of such securities (excluding shares of Common Stock or securities convertible into or exchangeable for
its Common Stock issued (A) in any of the transactions described in Section 5(d)(i) and 5 (d)(ii) above; (B) upon
issuance of stock or exercise of options granted to the Company’s officers, directors, employees and consultants under a plan or
plans adopted by the Company’s Board of Directors or a committee thereof and approved by its shareholders (but only to the extent
that the aggregate number of shares excluded by this Section 5(d)(iii) does not exceed 15% of the Company’s Common Stock
outstanding, on a fully diluted basis, at the time of any issuance); (C) upon exercise of options, warrants, convertible securities
and convertible note outstanding as of the Original Issue Date; (D) to shareholders of any corporation which merges into the Company
in proportion to their stock holdings of such corporation immediately prior to such merger, upon such merger; (E) in a bona fide
public offering pursuant to a firm commitment underwriting; or (F) in connection with an acquisition of a business or technology
which has been approved by a majority of the Company’s outside directors but only if no adjustment is required pursuant to any other
specific subsection of this Section 5 with respect to the transaction giving rise to such rights), less than the Conversion
Price, then the Conversion Price shall be immediately reset to equal such lower Offering Price or Exchange Price.

 

    	13 | P a g e

     

    

 

(iv)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant
to this Section 5 (d), the Company at its expense shall, as promptly as reasonably practicable but in any event not later than
ten (10) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series
B Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other
property into which the Series B Preferred Stock is convertible) and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall, as promptly as reasonably practicable after the written request at any time of any holder of Series B Preferred
Stock (but in any event not later than ten (10) days thereafter), furnish or cause to be furnished to such holder a certificate setting
forth (i) the Series B Conversion Price then in effect; and (ii) the number of shares of Common Stock and the amount, if any, of other
securities, cash or property which then would be received upon the, conversion of Series B Preferred Stock.

 

(e) Notices. All
notices hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the person to be
notified; (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the
next business day; (iii) five days after having been sent by certified mail, return receipt requested, postage prepaid; or (iv) the
next business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the holder at its address and facsimile number, if any, appearing on
the books of the Company.

 

6. Status
of Converted Stock. In the event any shares of Series B Preferred Stock shall be converted pursuant to Section 5 hereof,
the shares so converted shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease
and terminate as of the time of conversion, except only the right of the holders thereof to receive shares of Common Stock in exchange
therefore and, as applicable, to receive payment of any accrued but unpaid dividends thereon, and shall thereupon become Preferred Stock
of the Company without further designation or terms applicable thereto, other than those which are otherwise applicable, if any, to the
Preferred Stock of the Company, generally.

 

7. Voting
Rights. Except as otherwise provided herein or as required by applicable law, the holders of Series B Preferred Stock shall
be entitled to vote, together with holders of Series A Preferred Stock and Common Stock a single class, with respect to any matter
or question upon which holders of Common Stock have the right to vote. Each share of Series B Preferred Stock shall have such number
of votes as equal the number of shares of Common Stock then issuable upon conversion of the share of Series B Preferred Stock,
multiplied by 50. The holders of the Series B Preferred Stock shall also be entitled to vote, separately as a class, on such matters
or questions as may, hereunder or otherwise, be presented to holders of the Series B Preferred Stock for a vote from time to time,
with each such share having an equivalent vote, and the Series B Preferred Stock shall be entitled to vote together as a single
class with any class or series of stock of the Company other than the Common Stock, as may be issued and outstanding from time to
time, as and to the extent which the voting rights and other terms applicable to such stock shall from time to time so provide. In
addition to any other vote or approval required under Nevada law, holders of a majority of the issued and outstanding shares of
Series B Preferred Stock shall approve any amendment to the Articles of Incorporation that would have a material adverse effect on
only the rights of the holders of the Series B Preferred Stock as expressly set forth in the Articles of Incorporation.

 

    	14 | P a g e

     

    

 

 

8. Protective
Provisions. At all times prior to the date the Common Stock is listed for trading on a national securities exchange, the Company
shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without (in addition
to any other vote required by law or the Articles of Incorporation) the prior written approval of the holders of a majority of the outstanding
Series B Preferred Stock:

 

(a) amend or repeal any provision of the Articles of Incorporation or Bylaws, if such amendment or repeal would
have a material adverse effect on the rights of the holders of Series B Preferred Stock;

 

(b) amend
or alter the preferences, rights or privileges of the Series B Preferred Stock;

 

(c) declare or pay any dividends or make any distributions
on any of the Company’s securities other than as provided herein;

 

(d) purchase or redeem (or permit any subsidiary to purchase or redeem)
any shares of equity securities of the Company other than pursuant to any employment agreement or restricted stock or similar arrangement,
or pursuant to any equity compensation plan or arrangement;

 

(e) authorize or issue any new shares of Series B Preferred Stock or any
class or series of stock or any other equity interest in the Company;

 

(f)
enter into an agreement that would materially limit the Company’s ability to perform its obligations in respect of the Series B
Preferred Stock;

 

(g) liquidate,
dissolve or wind-up the business and affairs of the Company, effect any merger or consolidation or any other Deemed Liquidation Event,
or consent to any of the foregoing;

 

(h)
create, or authorize the creation of, or issue, or authorize the issuance of any debt security or create any lien or security
interest (except for purchase money liens or statutory liens of landlords, mechanics, materialmen, workmen, warehousemen and other
similar persons arising or incurred in the ordinary course of business) or incur other indebtedness for borrowed money, including
but not limited to obligations and contingent obligations under guarantees, or permit any subsidiary to take any such action with
respect to any debt security, lien, security interest or other indebtedness for borrowed money;

 

(i) create,
or hold an equity interest in, any subsidiary that is not wholly owned (either directly or through one or more other subsidiaries) by
the Company, or permit any subsidiary to create, or authorize the creation of, or issue or obligate itself to issue, any class or series
of equity interests, or sell, transfer or otherwise dispose of any equity interests of any direct or indirect subsidiary of the Company,
or permit any direct or indirect subsidiary to sell, lease, transfer, exclusively license or otherwise dispose (in a single transaction
or series of related transactions) of all or substantially all of the assets of such subsidiary;

 

(j)
increase or decrease the authorized number of directors on the Board; or

 

(k) take
any other action, which pursuant to the Articles of Incorporation or applicable Nevada law, requires the vote of the holders of the Series
B Preferred Stock as a separate class or series.

 

    	15 | P a g e

     

    

 

9. Redeemed
or Otherwise Acquired Shares. Any shares of Series B Preferred Stock that are redeemed or otherwise acquired by the Company or any
of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither
the Company nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Series B Preferred Stock following
such redemption or acquisition by the Company.

 

10. Waiver.
The rights, preferences, privileges and other terms of the Series B Preferred Stock may be waived as to all shares of Series B Preferred
Stock in any instance (without the necessity of convening any meeting of shareholders) upon the written agreement or consent, or the
vote at a duly called meeting of shareholders, of a majority of the holders of the Series B Preferred Stock, and such waiver shall thereupon
be binding upon all holders of Series B Preferred Stock.

 

11.
Miscellaneous. The holders of the Series B Preferred Stock shall be entitled to receive all communications sent by the Company
to the holders of the Common Stock.

 

	16 | P a g eExhibit 10.3

 

SEPARATION
AGREEMENT

 

THIS
SEPARATION AGREEMENT (the “Agreement”) is entered into this 3rd day of May, 2021, effective May 11, 2021 (the
“Effective Date”), by and between VERITAS FARMS, INC., a Nevada corporation (“VFRM” or the
“Company”) and ALEXANDER M. SALGADO, an individual (“Executive”). VFRM and Executive are
sometimes referred to herein individually, as a “Party” and collectively, as the “Parties.”

 

RECITALS

 

WHEREAS,
VFRM and Executive entered into that certain employment agreement dated September 27, 2017, under which Executive was employed as VFRM’s
Chief Executive Officer (the “Employment Agreement”); and

 

WHEREAS,
Executive also serves as a member of VFRM’s board of directors (the “Board”); and

 

WHEREAS,
VFRM and Executive wish to terminate the Employment Agreement and Executive wishes to resign as a member of the Board and as VFRM’s
Chief Executive Officer, on and subject to the terms and conditions set forth below; and

 

WHEREAS,
capitalized terms used but not defined herein shall have the meaning ascribed thereto in the Employment Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the promises and agreements below and other good and valuable consideration, the Parties agree
as follows:

 

1.
Termination of Employment Agreement; Resignation as Chief Executive Officer and Member of the Board; Consulting Agreement.

 

(a)
The Employment Agreement is hereby terminated, effective as of the Effective Date, on and subject to the terms of and except as provided
in this Agreement.

 

(b)
As of the Effective Date, Executive resigns as the Company’s Chief Executive Officer and a member of the Board, and from any and
all other positions the Executive holds with the Company and its subsidiary, 271 Lake Davis Holdings, LLC, a Delaware limited liability
company.

 

(c)
Commencing on the Effective Date, Executive shall enter into a Consulting Agreement with the Company in the form attached hereto as Exhibit
A (“Consulting Agreement”).

 

     

     

    

 

2.
Severance. Upon the expiration or termination of the Consulting Agreement, and provided the Consulting Agreement has not
been terminated by the Company for Cause (as defined in the Consulting Agreement), the Executive shall receive the following severance:

 

(a)
In satisfaction of all obligations, financial and otherwise, of VFRM to Executive under the Employment Agreement, VFRM shall:

 

	 	●	pay
    to Executive severance (“Severance Pay”) at the rate of Two Hundred Thousand Dollars ($200,000) per annum (Executive’s
    current level of base salary) until the second anniversary of the expiration or termination of the Consulting Agreement (the “Severance
    Period”). Severance Pay shall be paid in accordance with VFRM’s normal payroll practices for the payment of executive
    and management compensation in effect from time to time during the Severance Period;

 

	 	●	pay
    Executive’s COBRA premiums on Executive’s health insurance as in effect as of the Effective Date for eighteen (18) months
    after the Effective Date, provided, however, that such obligation shall terminate if at any time during such eighteen
    (18) month period, Executive becomes covered by another health insurance plan, whereupon Executive shall notify VFRM within ten (10)
    days of accepting such employment setting forth the commencement date of such alternative coverage; and

 

	 	●	allow
    Executive to exercise the following vested options (the “Options”) previously granted to him under VFRM’s
    2017 Stock Incentive Plan (the “2017 Plan”) at any time and from time to time, prior to the date that is three
    (3) years from the Effective Date, without regard to Executive’s Continuous Service (as such term is defined in the 2017 Plan):

 

		○	options to purchase
250,000 shares of VFRM’s common stock at an exercise price of $0.333 per share with an expiration date of November 10, 2027;

 

		○	options to purchase
500,000 shares of VFRM’s common stock at an exercise price of $1.44 per share with an expiration date of August 6, 2028; and

 

		○	options to purchase
500,000 shares of VFRM’s common stock at an exercise price of $0.98 per share with an expiration date of December 26, 2029.

 

(b)
The Company represents and warrants to Executive that the shares of common stock of the Company issuable upon exercise of the Options
have been registered on a registration statement on Form S-8, as amended (File No. 333-339412). The Company covenants to use its commercially
reasonable efforts to maintain the effectiveness of such registration statement and ensure no stop transfer order is in place with respect
thereto with the Company’s transfer agent nor a stop order in place with respect thereto with the United States Securities and
Exchange Commission (the “SEC”).

 

    
	2 | P a g e

 

     

    

 

(c)
With respect to all shares of common stock owned of record by Executive as of the Effective Date, as soon as practicable upon the expiration
of the three-month period beginning on the Effective Date, the Company shall take all steps necessary to instruct the Company’s
transfer agent to remove the restrictive legend from the stock certificates evidencing such shares. Until such legend removal is effected,
the Company covenants that it will file the reports required to be filed by it under the Securities Act of 1933, as amended (the “Securities
Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
adopted by the SEC thereunder (or, if it ceases to be required to file such reports, it will, upon the request of the Executive, make
publicly available other information that fulfills the information requirements set forth in Rule 144 under the Securities Act), and
it will take such further action as the Executive may reasonably request, all to the extent required from time to time to enable the
Executive to sell the such shares without registration under the Securities Act within the limitation of the exemptions provided by (a)
Rule 144 under the Securities Act, as such Rule may be amended from time to time; or (b) any similar rule or regulation hereafter adopted
by the SEC. Upon the request of the Executive, the Company will deliver to it a written statement as to whether the Company has complied
with such information disclosure and other requirements.

 

(d)
All payments made by VFRM to Executive under Section 2(a) shall be subject to all required federal, state and local withholding,
payroll and insurance taxes.

 

(e)
VFRM and Executive agree that except for Accrued Obligations (which for purposes of this Agreement, shall be as defined in the Employment
Agreement) and as otherwise specifically set forth in this Agreement, VFRM shall have no further obligations, financial or otherwise,
to Executive under the Employment Agreement or otherwise, including without limitation, the award and payment of any bonuses or amounts
described in Section 8 of the Employment Agreement in the event of a Change of Control (as defined in the Employment Agreement), the
right to which Executive specifically waives.

 

(f)
The provisions of the Employment Agreement which survive the termination thereof pursuant to its terms, including, without limitation,
the provisions of Sections 9, 10, 11, 12, 13, 16, 17 and 24, of the Employment
Agreement shall survive the termination of the Employment Agreement and shall be deemed incorporated by reference into this Agreement,
provided, however, that VFRM and Executive agree that Section 15 of the Employment Agreement is hereby terminated. In the event
of a conflict between the surviving provisions of the Employment Agreement and any provision of this Agreement, the provision of this
Agreement shall control.

 

    
	3 | P a g e

 

     

    

 

3.
Releases.

 

On
behalf of himself, his heirs, executors, administrators, and assigns, Executive fully releases VFRM and all of its affiliated and related
entities, and their respective successors, assigns, officers, directors, agents, and employees, of and from any and all potential or
actual known or unknown, actions, causes of actions, claims, demands, lawsuits, judgments, debts, accounts, covenants, agreements, actions,
cross-actions, liabilities, obligations, losses, damages, costs, compensation, expenses, attorneys’ fees, remedies, causes of action
of any nature, whether in tort or contract, or based on any wrongful or intentional act, fraud or misrepresentation, breach of duty or
common law, or arising under or by virtue of any judicial decision, statute or regulation, for past, present, or future injuries, physical
or mental or property or economic damage, and for all other losses and damages of any kind, including, but not limited to the following:
actual damages, all exemplary and punitive damages, all penalties of any kind, including, without limitation, any statutory or other
penalties or liabilities, tax liability, damage to physical or mental health, business reputation, lost earnings, profits or good will,
consequential damages, damages ensuing from loss of credit and prejudgment and post-judgment interest and costs and attorneys’
fees, from the beginning of time to the Effective Date, other than claims arising pursuant to this Agreement. This Release includes,
but is not limited to, all liabilities, for the payment of any sums or accrued earnings, bonuses, severance pay, salary, accruals under
any vacation, sick leave or holiday plans, any employee benefits, any employment related charge, claim or lawsuit under any federal,
state, or local law, including but not limited to claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991,
the Civil Rights Act of 1866, the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefit Protection Rights,
the Americans With Disabilities Act, the Worker Adjustment Retraining and Notification Act, the Family and Medical Leave Act of 1993,
and any tort, contract, quasi-contract claims, and attorneys’ fees. Notwithstanding the foregoing, nothing contained in this Section
3(a) will operate to release any releasees hereunder from claims based on statutory or common law fraud.

 

4.
Non-Disparagement. Neither Party, including in the case of VFRM, its officers, directors, employees, consultants and advisors
will disparage, portray in a negative light, or make any statement which could be construed as defamatory to the other Party or injurious
to its reputation. Notwithstanding the foregoing, for the avoidance of doubt, nothing in this Agreement limits, restricts or in any other
way affects Executive’s communicating with any governmental agency or entity, or communicating with any official or staff person
of a governmental agency or entity, concerning matters relevant to the governmental agency or entity.

 

5.
Enforcement. In the event of a Party’s breach or threatened breach of Sections 3, 4 or 7 of
this Agreement, the non-breaching Party may enforce such sections by obtaining an injunction to restrain the violation. Injunctive relief
shall be in addition to, and not in lieu of, any other remedies or damages available at law or in equity, including the recovery of compensatory
and punitive damages from the breaching Party.

 

6.
Section 409A. The Parties intend for the compensation provided under this Agreement to comply with, or be exempt from,
the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (together with the regulations
thereunder, “Section 409A”). If any payment or benefit hereunder constituting “nonqualified deferred compensation”
subject to Section 409A would be subject to subsection (a)(2)(B)(i) of Section 409A (relating to
payments made to “specified employees” of publicly-traded companies upon separation from service), any such payment
or benefit to which Executive would otherwise be entitled during the six (6)-month period following
Executive’s separation from service will instead be provided or paid without interest on the first business day following the expiration
of such six (6)-month period, or if earlier, the date of Executive’s death. Each payment made under this Agreement shall
be treated as a separate payment. Notwithstanding anything to the contrary in this Agreement, any reimbursement that constitutes or could
constitute nonqualified deferred compensation subject to Section 409A will be subject to the following additional requirements: (a) the
expenses eligible for reimbursement will have been incurred during the term of this Agreement; (b) the amount of expenses eligible for
reimbursement during any calendar year will not affect the expenses eligible for reimbursement in any other taxable year; (c) reimbursement
will be made not later than December 31 of the calendar year following the calendar year in which the expense was incurred; and (d) the
right to reimbursement will not be subject to liquidation or exchange for any other benefit.

 

    
	4 | P a g e

 

     

    

 

7.
No Offset; Clawback.

 

(a)
in no event shall any alternative source of income or other monies to Executive from outside of the Company, whether through other employment,
consultancy, investments or otherwise, be deemed to offset the payments owed to Executive hereunder; and

 

(b)
no cash compensation received by Executive under this Agreement shall be subject to clawback or recoupment by the Company following its
payment, nor shall the Options be subject to any clawback or recoupment by the Company.

 

8.
Indemnification; D&O Liability and Insurance.

 

(a)
The Company agrees that all rights to indemnification or exculpation now existing in favor of Executive, as provided in the Company’s
organizational documents, shall survive the Effective Date and shall continue in full force and effect for a period of six (6) years
after the Effective Date and that the Company will perform and discharge the obligations to provide such indemnity and exculpation after
the Effective Date during such period; provided, however, that all rights to indemnification and exculpation in respect of any
action arising out of or relating to matters existing or occurring at or prior to the termination of Executive’s service and asserted
or made within such three (3) year period shall continue until the final disposition of such action. Until the termination of all such
indemnification and exculpation obligations, except as required by law, the Company shall not, amend, repeal or otherwise modify the
indemnification provisions of the Company’s articles of incorporation, bylaws, or other similar governing documents as in effect
on the date hereof in any manner that would adversely affect the rights thereunder of Executive.

 

(b)
In the event the Company or any of the Company’s successors or assigns (i) consolidates with or merges into any other person
and shall not be the continuing or surviving corporation or entity in such consolidation or merger; or (ii) transfers all or substantially
all of its properties and assets to any person, then and in either such case, the Company shall make proper provision so that the successors
and assigns shall assume the obligations set forth herein (to the extent not they do not terminate pursuant to the terms set forth herein).

 

9.Limitations
on Indemnification.Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant
to the terms of this Agreement to indemnify Executive:

 

(a)
for any acts or omissions or transactions from which a director may not be relieved of liability under applicable law;

 

    
	5 | P a g e

 

     

    

 

(b)
with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise
as required under Nevada Revised Statutes 78, but such indemnification may be provided by the Company in specific cases if the
board of directors has approved the initiation or bringing of such suit;

 

(c)
for any expenses incurred by Executive with respect to any proceeding instituted by Executive to enforce or interpret this Agreement,
if a court of competent jurisdiction determines that each of the material assertions made by the Executive in such proceeding was not
made in good faith or was frivolous; 

 

(d)
for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties,
and amounts paid in settlement) which have been paid directly to or on behalf of Executive by an insurance carrier under a policy of
directors’ and officers’ liability insurance maintained by the Company or any other policy of insurance maintained by the
Company or Executive; or

 

(e)
for Expenses and the payment of profits arising from the purchase and sale by Executive of securities in violation of Section 16(b) of
the Securities Exchange Act of 1934, as amended, or any similar successor statute.”

 

10.
Shareholder Litigation. Until six (6) years after the Effective Date, the Company shall use commercially reasonable efforts
to promptly notify Executive of any action brought by any persons against the Company or any of its directors, officers or the other
representatives to the extent Executive is included as a party to such action (such action, a “Board Litigation”),
and shall use commercially reasonable efforts to keep Executive reasonably and promptly informed with respect to the status thereof.
The Company will provide Executive with the right to consult on any settlement with respect to such Board Litigation.

 

11.
Filing of Beneficial Ownership Reports with the Commission. Provided that Executive cooperates with the Company, the Company
shall cooperate with Executive in connection with and facilitate, at the Company’s sole cost, the timely preparation and filing
of any and all beneficial ownership reports required to be filed by Executive with the SEC pursuant to Sections 13 and 16 of the Exchange
Act and the rules and regulations of the SEC.

 

12.
Protective Provisions. This Agreement does not prevent Executive from (a) filing a charge of discrimination with the EEOC
(b) reporting any information to the SEC or any other government agency or regulatory authority having jurisdiction over the Company,
or in accordance with any applicable state or federal laws providing for whistleblower protection or (c) cooperating with any governmental
investigation of the Company. However, by reason of the release contained in Section 3(a), Executive agrees that he will not seek
or accept any award of damages or attorneys’ fees of any kind arising out of a charge or complaint filed by Executive, provided
that this does not limit Executive’s right to recover an award from the SEC.

 

    
	6 | P a g e

 

     

    

 

13.
Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the Parties relating to the termination
of the Employment Agreement and supersedes any and all prior agreements or oral representations by either Party related thereto. This
Agreement shall not be changed, modified or amended in any respect except by a written instrument signed by the Parties.

 

14.
Confidentiality. Except as otherwise contemplated herein, the Parties agree that the facts relating to the existence of
this Agreement, the negotiations leading to the execution of this Agreement, and the terms of this Agreement shall be held in confidence
by the parties and, except as necessary to enforce this Agreement or as required by law or court process, shall not be disclosed, communicated,
offered into evidence in any legal proceedings or divulged to any person, other than to Executive’s spouse and each Party’s
tax advisors, legal advisors and accountants and to those who must perform tasks to effectuate this Agreement, in any case, without first
advising such persons to whom disclosure is made of the confidential nature of this Agreement. Notwithstanding the foregoing, if the
Company is contacted by the media or as a reference or Executive is contacted directly by, or Executive directly contacts, Executive’s
prospective employers, the Company and Executive agree to respond, orally or in writing to such media or prospective employers, only
refer such party to the Current Report on Form 8-K (the “Form 8-K”) filed by the Company with the SEC in connection
with Executive’s separation or, in the event of communications with a prospective employer, confirm Executive’s title and
dates of employment. Such Form 8-K will be timely filed on or after the Effective Date and will be limited to the disclosures set forth
in Exhibit B attached hereto. Other than the Form 8-K, the Company has no intention to make any further SEC filings or to issue
any written statement in connection with the matters contemplated herein.

 

15.
Expenses. Each Party has had independent counsel and as such, each party shall bear his, her or its respective legal fees
and expenses relating to this Agreement, provided, however, that within thirty (30) days of the Effective Date, the Company
shall pay to Executive’s counsel, Executive’s legal fees and expenses relating to this Agreement, up to a maximum of Five
Thousand Dollars ($5,000), subject to submission by Executive’s counsel of invoices detailing the legal fees and expenses for which
payment is sought hereunder.

 

16.
Consideration and Revocation Period. Executive represents and warrants that Executive has read this entire Agreement; has
been provided at least twenty-one (21) days to consider it; has been given the opportunity and has had this Agreement reviewed by an
attorney; understands the meaning and application of each and every provision of this Agreement; and is signing of Executive’s
own free will with the intent of being bound by each and every provision of this Agreement. Executive acknowledges that if Executive
signs this Agreement prior to the expiration of twenty-one (21) days, Executive has done so voluntarily and knowingly. Executive agrees
that any modification to this Agreement, material or otherwise, does not restart, extend or affect in any way the original twenty-one
(21) day consideration period. Executive further understands that Executive has seven (7) days to revoke this Agreement after signing
it by delivering a notice of rescission by to the Company in accordance with the provisions of Section 21.

 

    
	7 | P a g e

 

     

    

 

15.
Choice of Law and Invalid Provisions. This Agreement is made and delivered in, and shall be governed by, and construed
in accordance with, the applicable laws of the State of Florida and if any term or part of this Agreement shall be determined to be invalid,
illegal or unenforceable, in whole or in part, the validity of the remaining part of such term or the validity of any other term of this
Agreement shall not in any way be affected. If any invalidity or unenforceability is caused by the length of any period of time or the
size of any area set forth in any part of this Agreement, the period of time or area, or both, shall be considered to be reduced to a
period or area that would cure the invalidity or unenforceability.

 

16.
Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
heirs, legal representatives, successors and Assigns.

 

17.
Waiver. A waiver by any Party of any of the terms and conditions hereof shall not be construed as a general waiver by such
Party and such Party shall be free to reinstate any such term or condition, with or without notice to the other Party.

 

18.
Construction and Acknowledgment. This Agreement shall be construed without regard to any presumption or other rule requiring
construction against the Party causing this Agreement to be drafted. All sections or subsections in this Agreement are for convenience
only and are not deemed part of the content of this Agreement.

 

19.
Jurisdiction; Venue; Inconvenient Forum; Jury Trial; Attorneys’ Fees. Any suit, action or proceeding brought to interpret,
enforce or otherwise arising under this Agreement shall be brought in the Broward County Circuit Court for the Eleventh Judicial Circuit,
in and for Broward County, Florida, or in the U.S. District Court for the Southern District of Florida, Fort Lauderdale Division, and
the Parties accept the exclusive personal jurisdiction of those courts for the purpose of any suit, action or proceeding. Each Party
waives all rights to any trial by jury in all litigation relating to or arising out of this Agreement. In any suit, action or proceeding
brought to interpret or enforce or otherwise arising under this to this Agreement, the prevailing Party shall be entitled to recover
attorneys’ fees and costs at both the trial and appellate levels.

 

 

 

20.
No Admission of Liability. The Parties acknowledge that by entering into this Agreement, VFRM does not admit it has any
liability whatsoever to Executive concerning Executive’s employment or the separation of that employment, nor does Executive admit
that any wrongdoing was the cause of the separation of his employment with the Company.

 

21.Notices.Any
notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in
person or sent by a nationally recognized overnight courier service, to Executive at the last address the Executive has filed in writing
with the Company or, in the case of the Company, at its main offices, attention of the Chief Executive. Notices shall be effective on
receipt.

 

22.
Counterparts. This Agreement may be executed in multiple counterparts (including by facsimile, .pdf or other electronic
transmission, each of which shall be deemed an original and all of which shall constitute a single agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    
	8 | P a g e

 

     

    

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the Effective Date.

 

	 	VFRM:
	 	 	 
	 	VERITAS
    FARMS, INC.
	 	 	 
	 	By:	/s/
Michael D. Pelletier
	 	 	Michael
    D. Pelletier, 

Chief Financial Officer
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	Alexander M. Salgado
	 	Alexander M. Salgado

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]