Document:

Exhibit 10.4

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”) is effective as of December 7, 2017, by and between ACTIVECARE, INC., a Delaware
corporation (the “Company”), and Mark J. Rosenblum (the “Executive”).

 

WHEREAS,
the Company and Executive desire to enter into this Agreement pursuant to which the Company will employ Executive in the capacity
of Chief Executive Officer, for the period and on the terms and conditions set forth herein;

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants and agreements herein contained, the parties hereby agree as
follows:

 

1. EMPLOYMENT
AND DUTIES. The Company hereby employs Executive and Executive hereby accepts such employment in the capacity of Chief Executive
Officer (“CEO”) of the Company to act in accordance with the terms and conditions hereinafter set forth. During the
Term (as defined below), Executive agrees that he will devote his full time, attention and skills to the operation of the Business
(as defined below) of the Company and that he will perform such duties, functions, responsibilities and authority in connection
with the foregoing as are from time to time delegated to Executive by the Board of Directors of the Company (the “Board”),
which duties shall include but shall not be limited to the responsibility for the overall management, direction and strategy of
the Company. For purposes of this Agreement, the Business of the Company shall be defined as an advanced diabetes monitoring and
communication device company. Executive is not bound by the terms of any agreement with any previous employer or other party which
would limit his abilities to perform his duties and obligations hereunder.

 

2. TERM.
The term of this Agreement shall commence on the date hereof and shall continue for a period of three (3) years.
Thereafter, this Agreement shall be automatically renewed for one year periods, unless otherwise terminated by the Company or
Executive upon written notice to the other given not less than ninety (90) days prior to the next anniversary of the
Agreement. ‘The initial three year term may terminate as provided for in Section 6 below. The initial term and any renewals
thereof shall be referred to herein as the “Term.”

 

3. COMPENSATION.
In consideration of all the services to be rendered by Executive to the Company hereunder, the Company hereby agrees to pay
or otherwise provide Executive the following compensation and benefits. It is furthermore understood that the Company
shall have the right to deduct or withhold under any provision of applicable law (including but not limited to Social
Security payments, income tax withholding and other required deductions not in effect or which may become effective by law
any time during the Term) from:

 

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	 	(a)	Salary.
    Executive shall receive an initial annual salary of Three Hundred Thousand Dollars ($300,000) (“Initial Base Salary”).
    The Initial Base Salary shall increase to an annual rate of Three Hundred Sixty Thousand Dollars ($360,000) upon the Company
    closing a financing of at least Five Million Dollars ($5,000,000). The applicable Base Salary will be paid in equal installments
    not less frequently than bi-weekly in accordance with the Company’s salary payment practices in effect from time to time for
    senior executives of the Company.
	 	 	 
	 	(b)	Bonus
    Payment. At the end of each fiscal year of the Company, in addition to the Base Salary then in effect, Executive shall
    be eligible to receive a bonus payment (the “Bonus Payment”) up to One Hundred Percent (100%) of the then applicable
    Base Salary (or such other Base Salary as shall be in effect at such time) (the “Bonus Percentage”) up to 50% of
    the Bonus Payment may be paid in equity of the Company valued at the time of payment thereof The Bonus Payment will be paid
    in accordance with the Company’s bonus payment practices in effect from, time to time for senior executives of the Company.
    The Board of Directors of the Company (the “Board”) shall review the Executive’s Bonus Percentage annually and may,
    in the Board’s sole discretion, increase the Bonus Percentage based upon the Company’s and Executive’s performance. The Bonus
    Payment shall be calculated based upon Company’s overall performance as set by the Board of Directors annually including achievement
    of an equity investment in the Company and increase in revenues. An Incentive Bonus Payment in an amount equal to the Executive’s
    then current Base Salary (but in no event less than Three Hundred Thousand Dollars ($300,000.00)), will be paid to Executive
    in cash upon closing of a Qualified Financing during the Initial Term on the date of the closing of such Qualified Financing.
    A “Qualified Financing” shall mean a financing with gross proceeds of at least Ten Million Dollars ($10,000,000).
    All annual Bonus Payments shall be paid to Executive 50% in cash and 50% in shares of the Company with such shares valued
    as of the closing price on the date that the bonus payment is determined to be earned or awarded.
	 	 	 
	 	(c)	Benefit
    Plans. Executive shall be covered by health, accident, disability and life insurance programs and other fringe benefit
    program which the Company currently has for the benefit of the Company’s executives. Upon execution and delivery of this Agreement,
    the Company agrees to issue restricted shares equal to $300,000 valued at the offering price of the next equity offering of
    the Company (“RSU”) and an option to purchase an aggregate of $600,000 valued at the offering price of the next
    equity offering of the Company (“Options) of the Company’s common stock, par value $.001 per share (the “Common
    Stock”) at an exercise price equal to the market price for the next equity offering of the Company. One-third of these
    Options shall vest immediately, another third on the first anniversary of this Agreement and the final third on the second
    anniversary of this agreement. The RSUs shall vest 50% shall vest immediately and 25% on each of the first and second anniversaries
    of this Agreement. In the event of a termination of this Agreement other than pursuant to Section 6(b), the Options and RSUs
    shall vest 100% upon such termination; provided, however, if the Agreement is terminated within the first twelve months after
    the date of this Agreement the only 50% of the Options and RSUs shall vest upon such termination.

 

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	 	(d)	Expenses.
    Executive     shall be entitled to be reimbursed for all reasonable business expenses incurred by him in connection with the
    fulfillment of     his duties hereunder, including all previously expended monies     on behalf of the Company.
	 	 	 
	 	(e)	Vacations
    and Sick Leave. Executive shall be entitled to four (4) weeks paid vacation annually to be taken in accordance with the
    Company’s vacation policy in effect from time to time and at such time or times as may be mutually agreed upon by the Company
    and Executive: provided, that if for any reason Executive does not take the full allotted vacation in any given year,
    Executive shall be entitled to accrue and carry over such vacation time according to the policy established by the Company.
    Executive shall also be entitled to sick leave according to the sick leave policy which the Company many adopt from time to
    time.
	 	 	 
		(f)	Relocation
Expense Reimbursement. In addition to the compensation set forth above, the Company shall reimburse Executive for all reasonable
relocation expenses incurred by the Executive to move from Texas to Utah, including temporary housing in the Orem area and twice
monthly transportation between Texas and Utah.

 

		4.	INDEMNIFICATION.

 

(a)
Company’s Obligation to Indemnify. The Company shall at all times during the Term and thereafter, indemnify and defend
and hold Executive harmless from and against all liability, loss, costs, claims, damages, expenses, judgments, awards, and settlements
as well as attorneys’ fees and expenses, personal or otherwise, whether in tort or in contract, law or equity, that the
Company or the Executive may incur by reason of or arising out of any claim made by any third party (together, the “Losses”),
with respect to Executive’s employment with Company in accordance with this Agreement: provided, however,
that the Company’s foregoing indemnification obligations shall not apply to Losses incurred by the Company as a result of
the Executive’s willful misconduct, gross negligence, conviction of a felony (including entry of a plea of nolo contendere)
for illegal or criminal, behavior or engagement in activities beyond the scope of his employment hereunder. Indemnification
shall include all costs, including actual attorneys’ fees and expenses reasonably incurred in pursuing indemnity claims
under or enforcement of this Agreement.

 

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(b) Executive’s
Obligation to Indemnify. Executive shall also at all times during the term of this Agreement and thereafter, indemnify
and defend and hold Company, its founders, owners, directors, officers, employees, advisors, agents, partners,
service providers and affiliates harmless from and against all Losses with respect to the Executive’s willful misconduct,
gross negligence, conviction of a felony (including entry, of a plea of nolo contendere) for illegal or
criminal behavior or engagement in activities beyond the scope of his employment hereunder during the Executive’s employment
with Company in accordance with this Agreement. Indemnification shall include all costs, including actual attorneys’ fees and
expenses reasonably incurred in pursuing indemnity claims under or enforcement of this Agreement.

 

5. DISPUTE
RESOLUTION. Except for the right of either party to apply to a court of competent jurisdiction for a
temporary restraining order, a preliminary injunction, or other equitable relief to preserve the status quo or prevent
irreparable harm, any and all claims, disputes or controversies arising under, out  of, or in connection with the Agreement,
including any dispute relating to production, use or commercialization, which the parties shall be unable to resolve within
sixty (60) days shall be mediated in good faith. The party raising such dispute shall promptly advise the other party of such
claim, dispute or controversy in a writing, Which describes in reasonable detail the nature of such dispute. By not later
than five (5) business days after the recipient has received such notice of dispute, each party shall have selected for
itself a representative who shall have the authority to bind such party and shall additionally have advised the other party
in writing of the name and title of such representative. By not later than ten (10) business days after the date of such
notice of dispute, the party against whom the dispute shall be raised shall select a mediation firm in New York and such
representatives shall schedule a date with such firm for a mediation hearing. The parties shall enter into good faith
mediation and shall share the costs equally. If the representatives of the parties have not been able to resolve the dispute
within fifteen (15) business days after such mediation hearing, the parties shall have the right to pursue any other remedies
legally available to resolve such dispute in either the Courts of the State of New York or in the United States District
Court for the District of New York, to whose jurisdiction for such purposes Company and Executive each hereby irrevocably
consents and submits.

 

6. TERMINATION.
(a) Events of Termination. This Agreement shall terminate on the earliest to occur of the following events:

 

	 	(i)	the expiration of the
    Term;

 

	 	(ii)	the mutual agreement
    of the Company and the Executive;

 

	 	(iii)	termination of Executive
    by the Company without just cause;

 

	 	(iv)	the voluntary termination
    of the Executive other then as a result of a Constructive Termination Event (as defined herein);

 

	 	(v)	the death of Executive
    or Executive’s retirement;

 

	 	(vi)	Executive becoming completely
    unable to perform his duties as described herein
due to injury, illness or disability (mental or physical), as determined by an independent physician selected with the approval
of the Company and Executive, for a period of three (3) consecutive months (“Disability”); or

 

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		(vii)	the
termination of the Executive by the Company for “just cause” (as defined herein) upon giving written notice to Executive

 

For
the purposes hereof, the Company shall have “just cause” to terminate Executive’s employment hereunder as a result of
Executive’s gross negligence, willful misconduct, conviction of a felony (including the entry of a plea of nolo contendere)
for illegal or criminal behavior in carrying out his duties as required pursuant to the terms of the Agreement. Notwithstanding
any other provision contained herein, the Company shall have the right to terminate the agreement and Executive’s employment without
just cause, and Executive’s remedies hereunder in the event of such termination shall be limited to the Severance Payments
set forth in Section 6(c) hereof.

 

(b)
Termination For Just Cause or Voluntary Termination. If Executive’s employment is terminated prior to the expiration of
the Term for just cause or if Executive’s employment is terminated as set forth in Section 6(a) (ii) or (iii) hereof, Executive
shall not be entitled to receive any Severance Payments (as defined in Section 7 below) and will only be entitled to receive any
accrued but unpaid portion of the applicable Base Salary, plus any accrued but unused vacation time and unpaid expenses (in accordance
with Sections 3(d) and (e) hereof) that have been earned by the Executive as the date of such termination.

 

(c) Termination
Without Just Cause. If Executive’s employment is terminated by the Company upon at least 30 days prior written notice
without just cause or as a result of the Executive’s Disability, Executive shall be entitled to receive the Severance
Payments described in Section 7 hereof For purposes of the Agreement, termination without just cause shall include
termination by Executive of his employment with the Company within one hundred and twenty (120) days after the occurrence of
any of the following events (collectively herein referred to as “Constructive Termination Events”) which are not
remedied within ten (10) business days after written notice to the Company by Executive of such event:

 

	 	(i)	failure
    to maintain Executive in the office of the position of CEO or a substantially equivalent office or position, of or with the
    Company;
	 	 	 
	 	(ii)	a
    significant adverse change in the nature or scope of the authority, powers, functions, responsibilities or duties attached
    to the position of Executive with the Company as set forth herein or a reduction in Executive’s then-applicable Base Salary
    and benefits as set forth herein;:
	 	 	 
	 	(iii)	the
    liquidation, dissolution, merger, consolidation or reorganization of the Company or transfer of all or a significant portion
    of its business and/or assets, unless the successor or successors shall have assumed all duties and obligations of the Company
    under the Agreement; and
	 	 	 
	 	(iv)	any
    material breach of the Agreement by the Company or its successors.

 

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(d) Insurance.
The Company may secure, in its own name, or otherwise, and at its own expense, life, health, accident and other insurance
covering Executive or Executive and others. Executive agrees to assist the Company in procuring such insurance by
submitting to the usual and customary medical and other examinations and by signing, as the insured, such applications and
other instruments in writing as may be reasonably requires by the insurance companies to which application is made pursuant
to such insurance. Executive agrees that he shall have no right, title, or interest in or to any insurance policies or to the
proceeds thereof which the Company many so elect to take out or to continue on the Executive’s life.

 

7. SEVERANCE
PAYMENT. (a) If the Company terminates Executive’s employment without just cause or if Executive’s employment is
terminated due to Disability, Executive shall be entitled to receive, in addition to any accrued and unpaid Base Salary,
plus any accrued but unused vacation time and unpaid expenses (in accordance with Sections 3(d) and (e) hereof) that have
been earned by the Executive as of the date of such termination, the following severance payments (the “Severance
Payments”):

 

	 	(i)	equal
    monthly installments at the applicable Base Salary rate then in effect, as determined on the first day of the calendar month
    immediately preceding the day of termination, to be paid beginning     on the first day of the month following such
    termination and continuing until the later of (A) the expiration of the Term     or (B) the expiration of (i) six (6) months
    following the effective termination date; provided, however, that if the Company     terminates this Agreement without Just
    Cause within six (6) months of the effective date of this Agreement, then the Executive     will only be entitled to three
    (3) months of severance instead of six (6) months; and
	 	 	 
	 	(ii)	during
    the Severance Period, health and life insurance benefits substantially similar to those which Executive was receiving or entitled
    to receive immediately prior to termination; provided, however, such insurance benefits shall be reduced to
    the extent comparable benefits during such period following Executive’s termination, and any benefits actually received
    by Executive shall be reported by Executive to the Company.

 

(b) Disability.
Whenever Severance Payments are payable to Executive hereunder during a time when Executive is partially or totally disabled
and such Disability would entitle him to disability income payments according to the terms of any plan or policy now or
hereafter provided by the Company, the Severance Payments payable to Executive hereunder shall be inclusive of any
such disability income and shall not be in addition thereto even if such disability income if payable directly to Executive
by an insurance company under instance policy paid for by the Company

 

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8. RESTRICTIVE
COVENANTS. Executive and the Company agree that the Company would suffer irreparable harm and incur substantial damage if
Executive were to enter into Competition (as defined herein) with the Company. Therefore, in order for the Company to protect
its legitimate business interests, Executive agrees as follows:

 

(a) Without
the prior written consent of the Company, Executive shall not, during the period of employment with the Company, directly or indirectly,
invest or engage in any business that is Competitive (as defined herein) with the Business of the Company or accept employment
or render services to a Competitor (as defined herein) of the Company as a director, officer, agent, employee or consultant or
solicit or attempt to solicit or accept business that is Competitive with the Business of the Company, except that Executive may
own up to five percent (5%) of any outstanding class of securities of any company registered under Section 12 of the Securities
Exchange Act of 1934, as amended.

 

(b) Without
the prior written consent of the Company and upon any termination of Executive’s employment with the Company and for a period
of twelve (12) months thereafter, Executive shall not, either directly or indirectly, (i) invest or engage in any business that
is Competitive (as defined herein) with the Business of the Company, except that Executive may own up to five percent (5%) of
any outstanding class of securities of any company registered under Section 12 of the Securities Exchange Act of 1934, as amended,
(ii) accept employment with or render services to a Competitor of the Company as a director, officer, agent, employee or consultant
unless he is serving in a capacity that has no relationship to that portion of the Competitor’s business that is Competitive with
the Business of the Company, or (iii) solicit, attempt to solicit or accept business Competitive with the Business of the Company
from any of the customers of the Company at the time of his termination or within twelve (12) months prior thereto or from any
person or entity whose business the Company was soliciting at such time.

 

(c) Upon
termination of his employment with the Company, and for a period of twelve (12) months thereafter, Executive shall not, either
directly or indirectly, engage, hire, employ or solicit in any manner whatsoever the employment of an employee of the Company.

 

(d)
For purposes of this Agreement, a business or activity is in “Competition” or “Competitive” with the
Business of the Company if it involves, and a person or entity is a “Competitor”, if that person or entity is
engaged in, or about to become engaged in, the research, development, design, manufacturing, marketing or selling of a
specific product or technology that resembles, competes, or is designed to compete, with, or has applications similar to any
product or technology for which the Company has obtained or applied for a patent or made disclosures, or any product or
technology involving any other proprietary research or development engaged in or conducted by the Company during the term of
Executive’s employment with the Company.

 

9. DISCOVERIES
AND INVENTIONS. Executive hereby assigns to the Company all his right, title, and interest in and to any and all
inventions, discoveries, developments, improvements, techniques, designs and data related to live Listeria
monocytogene vaccines which
Executive conceives of, reduces to practice, or otherwise creates, either alone or jointly with others, in the course of his employment
hereunder and in which the law recognizes any protectable interest.

 

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10. CONFIDENTIALITY.
Executive shall not use, or disclose any of the Confidential Information and Trade Secrets, either during the Term of his
employment or at anytime thereafter, except as required in the course of his employment. For purposes of this Agreement,
“Confidential Information and Trade Secrets” shall mean all information, know how, trade secrets, processes,
computer software or programs and related documentation, methods, practices, fabricated techniques, marketing plans, and
other compilations of information which relate to the Business of, and are owned by the Company which were not known
generally to others engaged in the Business of the Company and which the Company has taken affirmative actions to protect
from public disclosure or which do not exist in the public domain. All information, data and similar items and documentation
relating to the Business of the Company, shall remain the exclusive property of the Company unless owned by
Executive.

 

11. NOTICES.
Any notice or other communication required or permitted to be given hereunder shall be in writing and deemed to have been
given when delivered in person or when dispatched by telegram, electronic mail, or electronic facsimile transfer
(confirmed in writing by mail, registered or certified, return receipt requested, postage prepaid, simultaneously dispatched)
to the addressees at the addresses specified below.

 

	 	If
to Executive:

                                                                                                    

                                                                                                    

                                                                                                    

         

        With
        a copy to:

         

         

         

         

         

         

        If
to the Company:
	Mark
        J. Rosenblum

                                                                                     9200 Santa Fe Trail

                                                                                     Celina, Texas 75009

                                                                                     Telephone: (214) 385-0062

         

        Locke
Lord LLP

        2800
Financial Plaza

        Providence,
RI 02903

        ATTN.:
Douglas G. Gray, Esq.

        Fax:
888.325.9018

        Email:
        douglas.gray@lockelord.com

         

        Active
Care, Inc.

        1365
West Business Park Drive

        Suite 100

        Orem,
Utah 84058

        Telephone:
        1 (877) 219-6050

        Fax:

 

or
to such other address or fax number as either party may from time to time designate in writing to the other.

 

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12.
ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties hereto relating to the subject matter
hereof, and supersedes all prior agreements and understandings, whether oral or written, with respect to the same. No modification,
alteration, amendment or revision of or supplement to this Agreement shall be valid or effective unless the same is in writing
and signed by both parties hereto.

 

13. GOVERNING
LAW. This Agreement and the rights and duties of the parties hereunder shall be governed by, construed under and enforced
in accordance with the laws of the State of Delaware.

 

14.
ASSIGNMENT. The rights and obligations of the parties under this Agreement shall not be assignable without written permission
of the other party.

 

15.
SEVERABILITY. The invalidity of any provision of this Agreement under the applicable laws of the State of New Jersey or
any other jurisdiction, shall not affect the other provisions hereby declared to be severable from all other provisions. The intention
of the parties, as expressed in any provision held to be void or ineffective, shall be given such full force and effect as may
be permitted by law.

 

16. SURVIVAL.
The obligations of the Company or its successor to pay any Severance Payments required hereunder subsequent to the
termination of this Agreement and the obligations of Executive under Sections 6, 7 and 8 hereof shall survive the termination
of this Agreement.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

 

	 	ACTIVECARE, INC.
	 	 
	 	By:	/s/ Jeffrey Peterson
	 	Name: 	Jeffrey Peterson
	 	Title:	CEO & Chairman
	 	 	 
	 	By:	/s/ Mark J. Rosenblum
	 	 	Mark J. Rosenblum

 

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Page 9 of 9Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT 

This Employment Agreement (“Agreement”) is dated as of December 8, 2017 by and between General Cannabis Corp., a Colorado corporation (the “Company”) and Michael Feinsod (the “Executive”) (together, the “Parties”).

RECITALS 

WHEREAS, the Parties wish to document the continuing role of the Executive as the Executive Chairman of the Board of Directors of the Company (the “Board”).

Accordingly, the Parties agree as follows:

1.

Employment. The Company hereby continues to employ the Executive, and the Executive hereby accepts such employment, upon the terms and conditions set forth herein.

2.

Position and Duties. The Executive hereby agrees to serve as Executive Chairman of the Board.  Such position shall have such duties of an executive character typically associated with such position and which shall delegated or assigned to the Executive from time to time by the Board. The Executive shall not be required to devote any specific amount of his business time, attention, skill and efforts to the business of the Company but it is anticipated that the Executive will devote significant time to the business and affairs of the Company. The Executive shall be not required to be based in the Company’s corporate headquarters in Denver, Colorado. However, it is understood that reasonable travel shall be required on behalf of the Company on a regular basis.  The Executive shall be permitted to engage in charitable, civic and other non-business activities, including serving in academic positions, and to serve as a member of the board of directors of other organizations that are not competitive with the business of the Company, with prior Board approval and so long as such activities do not interfere with the Executive’s duties hereunder.

3.

Compensation.

a.

Cash Compensation.  The Company shall pay the Executive a base salary of $10,000 per month, paid on the last day of each calendar month, subject to all applicable employment and income tax withholdings.

b.

Options Grant.  The Company shall recommend to the Board that the Executive be granted options to purchase 900,000 shares of Stock (the “Options”) as soon as reasonably practicable following the execution of this Agreement.  The Options shall have an exercise price equal to the Fair Market Value of the shares of Stock on the date of grant and shall consist of the following: (i) 600,000 shares subject to the Options shall have time-based vesting terms (the “Time Based Options”) with one-third of such shares vesting on each yearly anniversary of the date of grant, and (ii) 300,000 shares subject to the Options shall have performance-based vesting terms (the “Performance-Based Options”) with (a) one-third of such shares vesting when the trading price target of $3.50 per share is met in accordance with the applicable option agreement,  (b) an additional one-third of such shares vesting when the trading price target of $5.00 per share is met in accordance with the applicable option agreement, and (c) the remaining one-third of such shares vesting when the trading price target of $6.50 per share is met in accordance with the applicable option agreement.  The forms of such option agreements for the Time-Based Options and the Performance-Based Options are attached hereto as Exhibit A hereto.  

c.

General Benefits and Plans. The Executive shall be entitled to participate in all compensation, employee stock option plans and employee benefit plans or programs, and to receive all benefits, including, but not limited to, health and welfare benefits, which are approved by the Board and are generally made available by the Company to all employees and to the extent permissible under the general terms and provisions of such plans or programs and in accordance with the provisions thereof.  Notwithstanding any of the foregoing, nothing in this Agreement shall require the Company to establish, maintain or continue any particular plan or program nor preclude the amendment, rescission or termination of any such plan or program that may be established from time to time.

d.

Additional Compensation/Benefits.  The Executive shall be eligible to receive equity compensation (e.g., annual option grants) and other benefits or perks provided to non-employee directors of the Board.

4.

Indemnification.  The Executive shall, at all times, be indemnified by the Company to the extent provided by the Company’s articles of incorporation, bylaws and applicable law, in connection with his performance of services hereunder.  Additionally, the Executive shall be covered by the director and officer liability insurance provided to other directors and executives of the Company.  The Company shall continue to indemnify the Executive as provided above and, to the extent maintained for other officers and directors, maintain such liability insurance coverage for the Executive after the termination of this Agreement, for any claims that may be made against him with respect to his service as a director or Executive Chairman of the Company.

1

5.

Business Expenses/Legal Fee Reimbursement.  

a.

The Company shall pay or reimburse the Executive for all reasonable travel in accordance with the Company’s standard policies and procedures and other reasonable expenses incurred by the Executive in connection with the performance of his duties and obligations under this Agreement, subject to the Executive’s presentation of appropriate vouchers in accordance with such expense account policies and approval procedures as the Company may from time to time establish for  (including but not limited to prior approval of extraordinary expenses) and to preserve any deductions for Federal income taxation purposes to which the Company may be entitled.

b.

The Company shall pay for directly or reimburse the Executive for attorneys’ fees he incurs in connection with this Agreement, subject to a cap of $10,000.  Payment shall be made within fifteen (15) days after submission of the invoice to the Company evidencing such legal fees.

6.

Termination.  The Executive’s service under this Agreement may be terminated by the Company with or without Cause, by the Executive with or without Good Reason or as a result of the Executive’s death or Disability.  Upon termination of his employment, except as otherwise provided in this Agreement, the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have no further right to receive or obtain from the Company, any payments or benefits. 

a.

Termination for Cause.  The Company may terminate the Executive’s employment for “Cause” by reason of any of the following: (i) formal admission by the Executive to (including a plea of guilty or nolo contendere to), or conviction of a felony, or any criminal offence involving the Executive’s moral turpitude under any applicable law, (ii) gross negligence or willful misconduct by the Executive in the performance of the Executive’s duties required by this Agreement; (iii) the commission of any fraud, misappropriation or misconduct by the Executive that causes demonstrable material injury, monetarily or otherwise, to the business of the Company, or (iv) material breach of this Agreement by the Executive.  Prior to a termination for Cause, the Company shall provide written notice to the Executive of the reason or reasons for a potential Cause determination and provide the Executive ten (10) days to cure the reason(s), if curable.  If cured, Cause shall no longer apply to the reason or reasons set forth in the Company’s notice.  If the Executive is terminated for Cause, the Company shall pay to the Executive, in a lump sum, any base salary that is earned by the Executive but unpaid as of the date of the Executive’s termination of employment, paid in accordance with the Company’s payroll practices, but in no event later than ten (10) days following the Executive’s termination of employment.  Following the Executive’s termination of employment for Cause, the Executive shall have no further rights to any compensation or any other benefits under this Agreement.

b.

Termination without Cause.  The Company may terminate the Executive’s Employment upon thirty (30) days prior notice provided to the Executive. 

c.

Resignation for Good Reason.  The Executive may terminate with “Good Reason” which shall be communicated by written notice of termination from the Executive to the Company (the “Notice of Termination”). The Notice of Termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination and a written statement of the reason(s) for the termination. A Notice of Termination shall not be effective for a period of thirty (30) days after receipt of such Notice of Termination by the Company so that the Company has an opportunity to cure the reason or reason set forth in the Notice of Termination.  If cured, Good Reason shall no longer apply to the reason or reasons set forth in the Notice of Termination.  “Good Reason” shall mean a material breach of this Agreement by the Company.

d.

Resignation without Good Reason.  The Executive may resign without Good Reason upon 30 days prior notice provided to the Company. Upon the Executive’s resignation without Good Reason, the Company shall pay to the Executive, in a lump sum, any base salary that is earned by the Executive but unpaid as of the date of the Executive’s termination of employment, paid in accordance with the Company’s payroll practices, but in no event later than ten (10) days following the Executive’s termination of employment.  Following the Executive’s resignation of employment without Good Reason, the Executive shall have no further rights to any compensation or any other benefits under this Agreement.

e.

Termination as a result of death or Disability. The Executive’s services shall terminate upon the Executive’s death or Disability.  “Disability” shall mean, to the extent consistent with applicable federal and state law, the Executive’s inability by reason of physical or mental illness to fulfill his obligations hereunder for ninety (90) consecutive days or for a total of one hundred and eighty (180) days in any twelve (12) month period which, in the reasonable opinion of an independent physician selected by the Company or its insurers and reasonably acceptable to the Executive or the Executive’s legal representative, renders the Executive unable to perform the essential functions of his job, even after reasonable accommodations are made by the Company. The Company is not, however, required to make unreasonable accommodations for the Executive or accommodations that would create an undue hardship on the Company.

2

f.

Severance Benefits upon Termination Without Cause or by the Executive with Good Reason or death or Disability.  Upon the Executive’s termination by the Company without Cause, by the Executive with Good Reason, or upon the death or Disability of the Executive, the Executive shall be entitled to receive continued payment of the Executive’s monthly base salary for six (6) months following such termination (the “Severance Period”).  The Company shall also pay an amount to the Executive equal to the Company’s cost of providing such benefits to the Executive for the Severance Period as if the Executive’s employment had not terminated subject to the Executive’s election for continuation coverage in accordance with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA Coverage”).  The payments and issuance of the stock described in this Section 6(f) shall not be paid or commence payment until the Company’s next regular payroll date occurring at least five (5) business days following the Executive’s satisfaction of the Release Condition (as defined below), but shall be retroactive to the next business day following the date of termination.  

g.

Vesting of Options.  Subject to the Release Condition and notwithstanding anything to the contrary contained in the applicable option grant agreement with respect to the Time-Based Options, upon the Executive’s termination by the Company without Cause, by the Executive with Good Reason, upon the death or Disability of the Executive, the Time-Based Options shall become fully vested as to all shares then unvested.  The Performance-Based Options shall terminate upon the termination of the Executive’s employment to the extent then unvested. 

h.

Release Condition.  Notwithstanding any other provision of this Agreement to the contrary, the Executive acknowledges and agrees that the payments and benefits set forth in Section 6(f) and 6(g) upon a termination of employment, are conditioned upon and subject to the Executive’s execution of a general waiver and release of all claims, in the form attached hereto as Exhibit B, which release must be executed, delivered, and not revoked within sixty (60) days following such termination (the “Release Condition”).  Payments and benefits under Sections 6(g) and 6(g) shall be made or provided or shall commence on the first regular payroll date that is after the sixtieth (60th) day after termination of employment, provided that the Release Condition is satisfied.

7.

Confidential Information.  

a.

The Executive acknowledges that the Company continually develops Confidential Information, that the Executive may develop Confidential Information for the Company, and that the Executive may learn of Confidential Information during the course of his employment.  The Executive will comply with the policies and procedures of the Company for protecting Confidential Information applicable to its executives generally and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of his duties and responsibilities to the Company, any Confidential Information obtained by the Executive incident to his employment or other association with the Company.  The Executive understands that this restriction shall continue to apply after his employment terminates, regardless of the reason for such termination.  For purposes of this Agreement, “Confidential Information” means any and all information of the Company that is not generally known by others with whom they compete or do business, or with whom any of them plans to compete or do business, and any and all information, publicly known in whole or in part or not, which, if disclosed by the Company, would assist in competition against them.  [Confidential Information includes, without limitation, such information relating to (i) the development, research, testing, manufacturing, marketing, and financial activities of the Company, (ii) the products of the Company, (iii) the costs, sources of supply, financial performance, and strategic plans of the Company, (iv) the identity and special needs of the customers of the Company, and (v) the people and organizations with whom the Company has business relationships and those relationships.  Confidential Information also includes any information that the Company has received, or may receive hereafter, belonging to customers or others with any understanding, express or implied, that the information would not be disclosed.  Confidential Information shall not include any such information (i) is or becomes in the public domain without any breach by the Executive of his obligations hereunder, (ii) has been or is later (after the Executive’ termination of  employment) lawfully acquired by the Executive from sources that the Executive does not know, after reasonable inquiry, to be prohibited from making such disclosure by a confidentiality obligation or other legal, contractual or fiduciary obligation owed to the Company, or (iii) is developed after the termination of employment by the Executive or any of the Executive’s affiliates without violating Section 7 hereof.

b.

All documents, records, tapes, and other media of every kind and description relating to the business, present or otherwise, of the Company and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by the Executive, shall be the sole and exclusive property of the Company.  The Executive shall surrender to the Company at the time his employment terminates, or at such earlier time or times as the Company may specify, all Documents then in the Executive’s possession or control.  The Executive shall immediately return such Documents and other property to the Company upon the termination of his employment and, in any event, at the Company’s request.  The Executive agrees further that any property situated on the premises of, and owned by, the Company, including disks and other storage media, filing cabinets, or other work areas, is subject to inspection by the Company’s personnel with advance written notice to the Executive.

3

c.

Notwithstanding anything to the contrary contained herein:

i.

nothing in this Agreement shall prohibit the Executive from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.  The Executive does not need the prior authorization of the Company to make any such reports or disclosures and is not required to notify the Company that he has made such reports or disclosures; and

ii.

the Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (B) solely for the purposes of reporting or investigating a suspected violation of law or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the Company’s trade secrets to his attorney and use the trade secret information in the court proceeding if the Executive (x) files any document containing the trade secret under seal and (y) does not disclose the trade secret, except pursuant to court order.

8.

Section 409A Compliance. The Parties intend for this Agreement either to satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) or to be exempt from the application of Code Section 409A, and this Agreement shall be construed and interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, in the event that the Executive is deemed to be a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i), no payments hereunder that are “deferred compensation” subject to Code Section 409A shall be made to the Executive prior to the date that is six (6) months after the date of the Executive’s “separation from service” (as defined in Code Section 409A) or, if earlier, the date of the Executive’s death.  Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Code Section 409A that is also a business day.  For purposes of Code Section 409A, each of the payments that may be made hereunder is designated as a separate payment.  For purposes of this Agreement, with respect to payments of any amounts that are considered to be “deferred compensation” subject to Code Section 409A, references to “termination of employment” (and substantially similar phrases) shall be interpreted and applied in a manner that is consistent with the requirements of Code Section 409A.  To the extent that any reimbursements under this Agreement are taxable to the Executive, any such reimbursement payment due to the Executive shall be paid to the Executive as promptly as practicable consistent with Company practice following the Executive’s appropriate itemization and substantiation of expenses incurred, and in all events on or before the last day of the Executive’s taxable year following the taxable year in which the related expense was incurred.  The taxable reimbursements under this Agreement that could constitute “deferred compensation” within the meaning of Code Section 409A are not subject to liquidation or exchange for another benefit, and the amount of such benefits and reimbursements that the Executive receives in one taxable year shall not affect the amount of such benefits or reimbursements that the Executive receives in any other taxable year.

9.

Section 280G Best After-Tax. If any payment or benefit that Executive would receive under this Agreement or otherwise, when combined with any other payment or benefit Executive receives that is contingent upon a change in control of the Company (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (“Excise Tax”), then at the sole discretion of the Executive, such Payment shall be either (x) the full amount of such Payment or (y) such lesser amount as would result in no portion of the Payment being subject to the Excise Tax (the “Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state and local employment taxes, income taxes and the Excise Tax, that the Executive chooses which may result in Executive’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in a manner necessary to provide Executive with the greatest economic benefit. If more than one manner of reduction of payments or benefits necessary to arrive at the Reduced Amount yields the greatest economic benefit, the payments and benefits shall be reduced pro rata.

10.

General Provisions

a.

Notices.  All notices, requests, demands and other communications required or permitted hereunder shall be given in writing and shall be deemed to have been duly given if delivered or mailed, postage prepaid, by certified or registered mail or by use of an independent third party commercial delivery service for same day or next day delivery and providing a signed receipt as follows:

4

If to the Company:

General Cannabis Corp.

6565 E. Evans Ave

Denver, CO 80224

Attention:  Chief Executive Officer

With a copy to:

Murray Indick

Partner 

Morrison & Foerster LLP

425 Market Street

San Francisco, CA 94105

If to the Executive:

Michael Feinsod

Infinity Capital

200 South Service Road, Suite 207

Roslyn, NY 11577

b.

Successors and Assigns. The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Company.

c.

Waiver. Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

d.

Arbitration. Any dispute arising out of or asserting breach of this Agreement, or any statutory or common law claim by the Executive relating to his employment under this Agreement or the termination thereof (including any tort or discrimination claim), shall be exclusively resolved by binding statutory arbitration in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. Such arbitration process shall take place in New York, New York. A court of competent jurisdiction may enter judgment upon the arbitrator’s award. Each party shall pay the costs and expenses of arbitration (including fees and disbursements of counsel) incurred by such party in connection with any dispute arising out of or asserting breach of this Agreement.

e.

Interpretation; Construction. The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. 

f.

Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York. Each party consents to the jurisdiction and venue of the state or federal courts in New York County, New York in any action, suit or proceeding arising out of or relating to this Agreement.

g.

Entire Agreement. This Agreement, together with the agreement(s) evidencing the Options (which agreement is partially amended as set forth herein), constitute the entire agreement between the Parties relating to this subject matter hereof and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral. This Agreement may be amended or modified only with the written consent of the Executive and the Board.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.  This Agreement supersedes and replaces in its entirety the Executive Chairman of the Board and Director Agreement dated August 4, 2014, between the Company and the Executive, including any requirement to issuance a number of shares of common stock to Infinity Capital, LLC equal to 10% of any new issuances by the Company (and the Executive hereby waives and releases the Company from any such obligation in the past or in the future pursuant to the terms of such agreement). 

h.

Nondisparagement.  The Executive and the Company agree that each party, during the Executive’s employment and for a period of [two (2)] years thereafter, shall not, in any communications with the press or other media or any customer, client, supplier or member of the investment community, criticize, ridicule or make any statement which disparages or is derogatory of the other party; provided, that the Company’s obligations shall be limited to communications by its senior corporate executive officers (“Specified Executives”), and it is agreed and understood that any such communication by any Specified Executive (or by any executive at the behest of a Specified Executive) shall be deemed to be a breach of this provision by the Company. Notwithstanding the foregoing, neither the Executive nor the Company shall be prohibited from making truthful statements in connection with any arbitration proceeding concerning a dispute relating to this Agreement.

5

IN WITNESS WHEREOF, the Parties have executed the Agreement as of the date and year first above written. 

GENERAL CANNABIS CORP.

By: /s/ Robert Frichtel

Name:  Robert Frichtel

Title:  Chief Executive Officer 

EXECUTIVE

/s/ Michael Feinsod 

Name:  Michael Feinsod

6

EXHIBIT A

Forms of Option Agreements

A-1

EXHIBIT B

WAIVER AND RELEASE OF CLAIMS

In connection with the termination of employment of ____________ (“Executive”) pursuant to the employment agreement between Executive and General Cannabis Corp., a Colorado corporation (the “Company”), dated as of [    ] (the “Employment Agreement”), Executive agrees as follows.  Capitalized terms used but not defined herein shall have the meanings given to them in the Employment Agreement.

1.

Waiver and Release.

(a)

Definition.  As used in this Waiver and Release of Claims (this “Release”), the term “claims” shall include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys’ fees, judgments, losses, and liabilities, of whatsoever kind or nature, both known and unknown, in law, equity, or otherwise.

(b)

Waiver and Release.  For and in consideration of the payments and benefits provided in Sections 6(f) and 6(g) of the Employment Agreement (the “Severance Amount”), Executive, for and on behalf of Executive and his heirs, administrators, executors, and assigns, effective as of the Effective Date (as defined below), does fully and forever waive and release, remise, and discharge the Company, each of its Affiliates, each of their respective predecessors and successors, and each of their respective current and former directors, officers, employees, shareholders, partners, members, agents, and representatives (collectively, the “Released Parties”) from any and all claims that Executive had, may have had, or now has against the Released Parties collectively or any of the Released Parties individually, for any claim arising out of or attributable to Executive’s employment or the termination of Executive’s employment with the Company, and also including but not limited to claims of breach of contract, wrongful termination, unjust dismissal, defamation, libel, or slander, or claims under any federal, state, or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion, disability, or sexual preference.  This release of claims includes, but is not limited to, all claims arising under the Age Discrimination in Employment Act of 1967 (the “ADEA”), Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Family Medical Leave Act, the Equal Pay Act, and any other federal, state, and local labor and anti-discrimination law, the common law, and any other purported restriction on an employer’s right to terminate the employment of employees.  Executive hereby agrees to waive any and all claims to re-employment with the Company or any of its Affiliates and affirmatively agrees not to seek further employment with the Company or any of its Affiliates.  Notwithstanding any provision of this Release to the contrary, by executing this Release, Executive is not releasing (i) any claims under COBRA; (ii) any claims or rights under the Company’s indemnification policy; (iii) any claims with respect to the Severance Amount; or (iv) any claims that may not be released as a matter of law.

(c)

Age Discrimination.  Executive specifically releases all claims against the Released Parties under the ADEA relating to Executive’s employment and its termination.

(d)

No Proceedings.  Executive represents that Executive has not filed or permitted to be filed against any of the Released Parties, individually or collectively, any lawsuit, complaint, charge, proceeding, or the like, before any local, state, or federal agency, court, or other body (each, a “Proceeding”), and Executive covenants and agrees that Executive will not do so at any time hereafter with respect to the subject matter of this Release and claims released pursuant to this Release (including, without limitation, any claims relating to the termination of Executive’s employment), except as may be necessary to enforce this Release or Executive’s rights to the Severance Amount under the Employment Agreement, to seek a determination of the validity of the waiver of Executive’s rights under the ADEA, or to initiate or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”).  Except as otherwise provided in the preceding sentence, (i) Executive will not initiate or cause to be initiated on his behalf any Proceeding, and will not participate (except as required by law) in any Proceeding of any nature or description against any of the Released Parties individually or collectively that in any way involves the allegations and facts that Executive could have raised against any of the Released Parties individually or collectively as of the date hereof, and (ii) Executive waives any right he may have to benefit in any manner from any relief (monetary or otherwise) arising out of any Proceeding.

2.

Acknowledgment of Consideration.  Executive is specifically agreeing to the terms of this Release because the Company has agreed to pay Executive the Severance Amount to which Executive was not otherwise entitled under the Company’s policies or under the Employment Agreement (in the absence of providing this Release).  The Company has agreed to provide the Severance Amount because of Executive’s agreement to accept it in full settlement of all possible claims Executive might have or ever had, and because of Executive’s timely execution and non-revocation of this Release.

3.

Executive Acknowledgments.  EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS READ THIS RELEASE IN ITS ENTIRETY, FULLY UNDERSTANDS ITS MEANING, AND IS EXECUTING THIS RELEASE VOLUNTARILY AND OF EXECUTIVE’S OWN FREE WILL WITH FULL KNOWLEDGE OF ITS SIGNIFICANCE. EXECUTIVE ACKNOWLEDGES AND WARRANTS THAT EXECUTIVE HAS BEEN ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE.

B-1

4.

Review and Revocation Period.  The offer to accept the terms of this Release is open for twenty-one (21) days from the date Executive receives this Release.  Executive shall have the right to revoke this Release for a period of seven (7) days following Executive’s execution of this Release, by giving written notice of such revocation to the Company.  This Release shall not become effective until the eighth (8th) day following Executive’s execution of it (the “Effective Date”).

5.

Remedies.  Executive understands and agrees that if Executive breaches any provisions of this Release or fails to timely execute and deliver this Release, or timely revokes his acceptance of its terms, in addition to any other legal or equitable remedy the Company may have, the Company shall be entitled to cease making any payments or providing any benefits to Executive, including payment of the Severance Amount, and Executive shall reimburse the Company for all attorneys’ fees and costs incurred by it arising out of any such breach.  The remedies set forth in this paragraph shall not apply to any challenge to the validity of the waiver and release of Executive’s rights under the ADEA.  In the event that Executive challenges the validity of the waiver and release of Executive’s rights under the ADEA, then the Company’s right to attorneys’ fees and costs shall be governed by the provisions of the ADEA, so that the Company may recover such fees and costs if the lawsuit is brought by Executive in bad faith.  Any such action permitted by this paragraph, however, shall not affect or impair any of Executive’s obligations under this Release, including without limitation, the release of claims in Section 1 hereof.  Executive agrees further that nothing herein shall preclude the Company from recovering attorneys’ fees, costs, or any other remedies specifically authorized under applicable law.

6.

No Admission.  Nothing herein shall be deemed to constitute an admission of wrongdoing by any of the Released Parties.  Neither this Release nor any of its terms shall be used as an admission or introduced as evidence as to any issue of law or fact in any proceeding, suit, or action, other than an action to enforce this Release.

7.

Governing Law.  This Release shall be construed and enforced under and be governed in all respects by the laws of the State of New York without regard to the conflict of laws principles thereof.

[signature page follows]

B-2

IN WITNESS WHEREOF, Executive has hereunto set his hand as of the day and year set forth opposite Executive’s signature below.

			
	 
	 
	 

	DATE

	 
	EXECUTIVE

	 
	 
	(not to be executed until termination of employment)

[Signature Page to Waiver and Release of Claims]

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