Document:

Exhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”), dated as of 11-AUG-2021, between Veritas Farms, Inc., a Nevada corporation, (the
“Company”), and Ramon A. Pino (the “Executive”).

 

WITNESSETH:

 

WHEREAS,
the Executive has experience in Finance and Accounting;

 

WHEREAS,
the parties acknowledge that the Executive’s abilities and services are unique and essential to the prospects of the Company;
and,

 

WHEREAS,
in light of the foregoing, the Company desires to employ the Executive as its Chief Financial Officer and the Executive desires to
accept such employment.

 

NOW,
THEREFORE, in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency
of which is acknowledged by the parties hereto, Company and Executive agree as follows:

 

1. Recitals
and Exhibits. The recitals set forth above are true and correct and are hereby deemed part of this Agreement.

 

2. Employment.
The Company hereby employs the Executive and the Executive hereby accepts employment upon the terms and conditions hereinafter set forth.

 

3. Term
and Termination. This Agreement shall commence on 11-AUG-2021 (the “Start Date”) and shall terminate three (3) years
from the Start Date (“Initial Term”). At the end of the Initial Term, this Agreement shall automatically renew for additional
one (1) year periods (each, a “Renewal Period”) unless either party gives written notice to the other party of non-renewal
at least sixty (60) days prior to the expiration of the then-current Initial Term or Renewal Period. During the Initial Term or any Renewal
Period this Agreement may be earlier terminated as follows:

 

(a) The
Company may immediately terminate Executive’s employment for “Cause” upon notice to Executive setting forth in reasonable
detail the nature of the Cause. The following, as determined by the Company in its sole discretion, shall constitute Cause for termination:

 

(i) Executive’s
failure to perform (other than by reason of Disability), or serious negligence in the performance of, Executive’s duties and responsibilities
to the Company;

 

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(ii) Executive’s
breach of this Agreement or any other agreement between Executive and the Company, including breach of the restrictive covenants described
in Section 9 of this Agreement;

 

(iii) serious
misconduct by Executive that could be reasonably anticipated to be, or is, harmful to the business, reputation or other interest of the
Company;

 

(iv) repeated
failure to adhere to the directions of the Board of Directors, the Chief Executive Officer, or the Executive’s supervisor(s) or
the written policies or practices of the Company;

 

(v) discovery
that Executive is bound by and subject to any covenants against competition or similar covenants or any court order that could affect
the performance of Executive’s obligations under this Agreement;

 

(vi) commission
of a felony or a crime of moral turpitude, dishonesty, breach of trust, unethical business conduct, or any crime involving the Company
(or Executive enters a plea of nolo contendere with respect to any of the foregoing);

 

(vii) engaging
in fraud, misappropriation or embezzlement;

 

(viii) Executive’s
habitual abuse of alcohol or any controlled substance or reporting to work under the influence of alcohol or any controlled substance
(other than a controlled substance which Executive is properly taking under a current prescription) or violation of any other provision
of the Company’s Drug Free Workplace Policy;

 

(ix) Discovery
that Executive engaged in unlawful harassment or discrimination of employees, customers or suppliers of the Company or other violation
of the Company’s Non-Discrimination and Anti-Harassment Policy;

 

(x) Discovery
that Executive exposed the Company to criminal liability substantially caused by Executive; or

 

(xi) violation
by Executive of any other law, rule or regulation (other than (I) traffic violations or similar offenses, or (II) violations that would
not be deemed harmful to the Company, its business, its reputation, or its customers).

 

(b) This
Agreement and the Term shall terminate automatically upon the Executive’s death or Disability. Disability means the Executive’s
inability to substantially perform duties, with reasonable accommodation, as evidenced by a certificate signed either by a physician
mutually acceptable to the Company and Executive or, if the parties cannot agree, by a physician selected by agreement of a physician
designated by the Company and a physician designated by the Executive. Executive shall submit to a reasonable number of examinations
by the physician making the determination of Disability, and Executive hereby authorizes the disclosure and release of all supporting
medical records to the Company. In the event of termination of Executive’s employment pursuant to Disability, the Company will
pay Executive severance pay as set forth in Exhibit B.

 

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(c) The
Company may terminate Executive’s employment at any time upon 60 days’ written notice to Executive. The Company may require
Executive to cease all activities on behalf of Company prior to the end of the 60-day notice period, but in that event the Company will
pay Executive the portion of the Base Salary, as set forth in Exhibit A, for the remainder of such 60-day notice period. In the event
of termination of Executive’s employment pursuant to this Section 3(c), the Company will pay Executive severance pay as set forth
in Exhibit B.

 

(d) Executive
may terminate the employment relationship at any time upon 60 days’ written notice to the Company. The Company may accept the resignation
prior to the end of the 60-day notice period, but in that event the Company will pay Executive the portion of the Base Salary, as set
forth in Exhibit A, for the remainder of such 60-day notice period.

 

(e) Executive
may terminate the employment relationship for Good Reason in connection with a Change of Control. “Change of Control” means
the occurrence of any of the following events: (i) a change in the ownership of the Company which occurs on the date that any one person,
or more than one person acting as a group, or entity (“Person”), acquires ownership of the stock of the Company that, together
with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company;
provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to
own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change of Control; or
(ii) a change in the effective control of the Company which occurs on the date that a majority of members of the Company’s Board
of Directors is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority
of the members of the Board of Directors prior to the date of the appointment or election (for purposes of this clause (ii), if any Person
is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will
not be considered a Change of Control); or (iii) a change in the ownership of a substantial portion of the Company’s assets which
occurs on the date that any Person or Persons acquires (or has acquired during the twelve (12) month period ending on the date of the
most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more
than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition
or acquisitions. For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the
value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

Further
and for the avoidance of doubt, a transaction will not constitute a Change of Control if: (i) its sole purpose is to change the state
of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the
same proportions by the persons who held the Company’s securities immediately before such transaction.

 

“Good
Reason” means Executive’s voluntary termination, following the expiration of the Company cure period (discussed below), following
the occurrence of one or more of the following, without Executive’s consent, that occurs within (A) 60 days prior to the consummation
of a Change in Control where such Change in Control was under consideration at the time of Executive’s termination date or (B)
twelve (12) months after the date upon which such a Change in Control occurs (“Change of Control Period”):

 

(i)
a material reduction of Executive’s authority, duties or responsibilities, relative to Executive’s authority, duties or responsibilities
in effect immediately prior to such reduction, or a change in Executive’s reporting position such that Executive no longer reports
directly to (I) the Board of Directors of the parent corporation in a group of controlled corporations or (II) the corporate office the
Executive reports to prior to the Change of Control Period;

 

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(ii)
a material reduction by the Company of Executive’s annual base salary as in effect on the Start Date (or, if higher or lower, as
in effect immediately prior to the reduction), except to the extent the base salaries of all other senior executives of the Company are
similarly reduced totaling no more than 20% in the aggregate; or

 

(iii)
a material change in the geographic location of Executive’s principal workplace; provided, that a relocation of less than fifty
(50) miles from Fort Lauderdale, Florida will not be considered a material change in geographic location.

 

Executive
may not terminate the employment relationship for Good Reason in connection with a Change of Control without first providing the Company
with written notice within sixty (60) days of the initial existence of the condition that Executive believes constitutes Good Reason
in connection with a Change of Control specifically identifying the acts or omissions constituting the grounds therefor and a reasonable
cure period of not less than thirty (30) days following the date of such notice. In the event of termination of Executive’s employment
pursuant to this Section 3(e), the Company will pay Executive severance pay as set forth in Exhibit B.

 

(f) In
the event of non-renewal of this Agreement by the Company, the Company will pay Executive severance pay as set forth in Exhibit B.

 

4. Compensation
and Benefits. For all services rendered under this Agreement; Executive’s Compensation and benefits are provided in Exhibit
A.

 

5. Severance
Payments and Other Matters Related to Termination.

 

(a) Severance
Payments, if any, are provided as set forth in Exhibit B.

 

(b) In
the event of termination for any reason the Company will also pay Executive, on the next regularly scheduled pay date following the date
of termination, any Base Salary earned but not paid through the date of termination.

 

(c) In
the event of termination of employment by the Company for Cause or as a result of Executive’s resignation (for any reason or for
no reason), death or Disability, or upon the expiration of the Term, the Company will pay Executive any Base Salary earned but not paid
through the date of termination or expiration. The Company shall have no further obligations to Executive other than any compensation
incentive due under the Cash Incentive Program, provided that Executive was employed on the last date of the fiscal year, which shall
not fall within any notice period under Section 3(c), 3(d) or 3(e) of the Agreement.

 

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(d) While
receiving Severance Payments, the Executive shall be entitled to continue to participate in all Company employee benefit plans in which
the Executive participated immediately prior to the termination of employment at the same cost to the Executive as such benefits were
provided prior to such termination (or the Company will procure and pay for comparable benefits during such time period).

 

(e) The
obligation of the Company to make payments to Executive under Exhibit B is expressly conditioned upon Executive’s continued full
performance of obligations under Section 9 hereof.

 

(e) Any
termination of Executive’s employment (or any termination or expiration of this Agreement) for any reason shall, if requested by
the Company, require that Executive resign all other positions he may then be holding with the Company or as trustee of any of its benefit
plans.

 

6. Duties.
The Executive shall be employed as Chief Financial Officer of the Company and, subject to the direction of the Board of Directors
and the Company’s officers designated by the Board of Directors, shall perform and discharge well and faithfully the duties which
may be assigned to him from time to time by the Company in connection with the conduct of its business. If the Executive is elected or
appointed a director of the Company or any subsidiary thereof during the term of this Agreement, the Executive will serve in such capacity
without further compensation.

 

7. Extent
of Services. Except as set forth below, the Executive shall devote their entire time, attention and energies to the business of the
Company and shall not during the term of this Agreement be engaged, whether or not during normal business hours, in any other business
or professional activity, whether or not such activity is pursued for gain, profit, or other pecuniary advantage. Notwithstanding the
foregoing, the Executive shall be allowed to serve on the Board of Directors of other companies so long as such Board participation does
not interfere with the Executive fulfilling their duties to the Company and the Executive obtains the prior written approval of the Company’s
Board of Directors. In addition, the Executive shall be allowed to provide consulting services to other companies so long as he obtains
the prior written approval of the Company’s Board of Directors and provides such services no more than three (3) days per month.

 

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8. Definitions.
For purposes of this Agreement, the following definitions apply:

 

“Confidential
Information” means any and all information of the Company that is not generally known by others with whom the Company competes
or does 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, would assist in competition against the Company, including without limitation (a) all proprietary information
of the Company, including but not limited to their products and services, technical data, methods, processes, know-how, inventions, customer
and client data and subscription lists and computer and analytical models and other programs and any source or object code developed
by the Company, (b) the development, research, testing, marketing and financial activities and strategic plans of the Company, (c) the
manner in which they operate, (d) their costs and sources of supply, (e) the identity and special needs of the customers and client,
and prospective customers and clients, of the Company and (f) the people and organizations with whom the Company have business relationships
and the nature and substance of those relationships. Confidential Information also includes any information received by the Company from
any Person with any understanding, express or implied, that it will not be disclosed. Confidential Information does not include information
that enters the public domain, other than through Executive’s breach of their obligations under this Agreement. Executive acknowledges
and agrees that the Confidential Information is a special and unique asset of the Company, created and/or obtained by the Company at
considerable time and/or expense, from which the Company may or does derive independent economic value from the Confidential Information
not being generally known to third parties.

 

“Intellectual
Property” means inventions, discoveries, developments, methods, processes, compositions, works, concepts and ideas (whether or
not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by Executive
(whether alone or with others and whether or not during normal business hours or on or off Company premises) during Executive’s
employment that relate in any way to the business, products or services of the Company or to any prospective activity of the Company
or to the actual or anticipated research or development of the Company or that result from any work performed by Executive for the Company
or which make use of the Confidential Information or of facilities or equipment of the Company

 

“Person”
means an individual, a corporation, a limited liability company, an association, a partnership, an estate, a trust or any other entity
or organization, other than the Company.

 

9. Confidential
Information and Restricted Activities.

 

(a) Confidential
Information. During the course of Executive’s employment with the Company, Executive will learn of Confidential Information,
as defined in Section 8, and Executive may develop Confidential Information on behalf of the Company. Executive agrees that he will not
use or disclose to any Person (except as required by applicable law or court order (subject to Section 9(c)), or for the proper performance
of Executive’s duties and responsibilities for the Company) any Confidential Information obtained by Executive incident to employment
or any other association with the Company. Executive understands that this restriction shall continue to apply after employment terminates,
regardless of the reason for such termination. In the event an action is instituted and prior knowledge is an issue, it shall be the
obligation of the Executive to prove by clear and convincing evidence that the confidential information disclosed was in the public domain,
was already known by the Executive prior to employment with the Company, or was developed independently by the Executive.

 

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(b) Protection
of Documents. All documents, records and files, in any media of whatever 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
Executive, shall be the sole and exclusive property of the Company. Executive agrees to safeguard all Documents and to surrender to the
Company, at the time Executive’s employment terminates or at such earlier time or times as Company may specify, (i) all copies
and manifestations of Confidential Information that Executive may have or have access to; (ii) all Documents, other materials and equipment
provided by the Company; and (iii) all documents and materials that Executive has prepared during Executive’s employment with Company.
Executive will not, directly or indirectly, reproduce, permit reproduction of, remove and/or permit removal of any of the Confidential
Information from the Company’s premises or the premises, except as is necessary for Executive to perform duties on behalf of the
Company.

 

(c) Procedures
to be Followed if Disclosure is Required by Law or Court. In the event Executive is requested pursuant to or required by applicable
law or regulation or by legal process to disclose any Confidential Information, Executive agrees to provide the Company with prompt notice
of such request or requirement to enable the Company to seek an appropriate protective order, waive compliance with the provisions of
this Agreement or take other appropriate action. Executive agrees to use best efforts in such event to assist the Company in obtaining
a protective order. If, in the absence of a protective order or the receipt of a waiver under this Agreement, Executive is nonetheless,
in the written opinion of Executive’s counsel, compelled to disclose the Confidential Information to any tribunal or else stand
liable for contempt or suffer other censure or significant penalty, Executive, after notice to the Company, may disclose to such tribunal
only such Confidential Information that Executive is compelled to disclose. Executive shall not be liable for the disclosure of Confidential
Information to a tribunal compelling such disclosure unless such disclosure was caused or resulted from a previous disclosure by Executive
not permitted under this Agreement.

 

(d) Assignment
of Rights to Intellectual Property/Inventions. Executive agrees to promptly and fully disclose to the Company all Intellectual Property,
as defined in Section 8. Executive hereby assigns and agrees to assign to the Company (or as otherwise directed by the Company) their
full right, title and interest in and to all Intellectual Property. All copyrightable works that Executive creates, develops, or prepares,
solely or jointly with others, within the Term and for the 12 months immediately following the Term, shall be considered “work
made for hire.” To the extent that title to any such works may not, by operation of law, vest in the Company, or such works may
not be considered “work made for hire”, all right, title and interest therein are hereby irrevocably assigned to the Company
without limitation.

 

The
Executive hereby sells, transfers and assigns to the Company or to any person, or entity designated by the Company, all of the entire
right, title and interest of the Executive in and to all inventions, ideas, disclosures and improvements, whether patented or unpatented,
and copyrightable material, (hereinafter “Intellectual Property”) made or conceived by the Executive, solely or jointly,
or in whole or in part, during the Term hereof which (i) relate to methods, apparatus, designs, products, processes or devices sold,
leased, used or under construction or development by the Company or any subsidiary, or (ii) otherwise relate to or pertain to the business,
functions or operations of the Company or any subsidiary, or (iii) arise wholly or partly from the efforts of the Executive during the
term hereof. The Executive shall communicate promptly and disclose to the Company, in such form as the Company requests, all information,
details and data pertaining to the aforementioned Intellectual Property; and, whether during the term hereof or thereafter, the Executive
shall execute and deliver to the Company such formal transfers and assignments and such other papers and documents as maybe required,
such as applications for domestic and foreign patents, copyrights or other proprietary rights, of the Executive at the Company’s
expense to permit the Company or any person or entity designated by the Company to file, prosecute, and enforce any patent applications
patents, copyrights , and other proprietary rights to the Intellectual Property. Any invention by the Executive within one (1) year following
the termination of this Agreement shall be deemed to fall within the provisions of this paragraph unless proved by the Executive by clear
and convincing evidence to have been first conceived and made following such termination.

 

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(e) Non-Competition.
Executive acknowledges that during employment with the Company the Executive will have access to Confidential Information which,
if disclosed, would assist in competition against the Company and that the Executive will also generate goodwill for the Company in the
course of the employment. Therefore, Executive agrees that the following restrictions on activities during and after employment are necessary
to protect the goodwill, Confidential Information and other legitimate business interests of the Company:

 

(i) While
Executive is employed by the Company and during the 12 months immediately following termination of employment or termination or expiration
of this Agreement, whichever occurs first, (in the aggregate, the “Non-Competition Period”), Executive shall not, directly
or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venture or otherwise, compete with the Company within
the United States or within any other country in which the Company is doing business or actively planning to do business or undertake
any planning for any business competitive with the Company. Specifically, but without limiting the foregoing, Executive agrees not to
work or provide services, in any capacity, whether as an employee, independent contractor or otherwise, whether with or without compensation,
for or to any Person that is engaged in any business that is competitive with the business of the Company, as conducted or in planning
during Executive’s employment with the Company. During the Non-Competition Period, Executive shall not interfere with, disrupt
or attempt to disrupt the relationship, contractual or otherwise, between the Company and any customer, client, supplier, consultant,
or employee of the Company and any customer, client, supplier, consultant or employee of the Company, including, without limitation,
employing or being an investor (representing more than 5% equity interest) in, or officer, director, or consultant to, any person or
entity which employs any former key or technical employee whose employment with the Company was terminated after the date which is one
year prior to the date of termination of the Executive’s employment therewith. Specifically, competitors include but are not limited
to:

 

A. Charlotte’s
Web

 

B. Green
Roads; and

 

C. other
companies, entities, or Persons which services involve the development and marketing of CBD and related products.

 

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(ii) Executive
agrees that during the Non-Competition Period he will not (A) hire, attempt to hire, or cause to be hired any person who was employed
by the Company at any time during the 12 months immediately preceding the Non-Competition Period, or seek to persuade any employee of
the Company to discontinue employment, (B) solicit or encourage any customer or client of the Company or any independent contractor providing
services to the Company or any of its customers or clients to terminate or diminish its relationship with them, (C) seek to persuade
any customer or client, or prospective customer or client, of the Company to conduct with anyone else any business or activity that such
customer or client, or prospective customer or client, conducts or could conduct with the Company, or (D) solicit or encourage any Person
that has or does refer business to the Company for the purpose of having such Person refer business to a competing business.

 

(iii)
It is the desire and intent of the parties that the provisions of this Section shall be enforced to the fullest extent permissible under
the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular portion of this
Section shall be adjudicated to be invalid or unenforceable, this Section shall be deemed amended to delete therefrom the portion thus
adjudicated to be invalid or unenforceable, such deletion to apply only with respect to the operation of this Section in the particular
jurisdiction in which such adjudication is made.

 

(f) In
signing this Agreement, Executive gives the Company assurance that he has carefully read and considered all the terms and conditions
of this Agreement, including the restraints imposed on him under this Section 9. Executive agrees without reservation that these restraints
are necessary for the reasonable and proper protection of the business, the Confidential Information and the goodwill of the Company,
and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. Executive
further agrees that, were he to breach any of the covenants contained in this Section 9, the damage to the Company would be irreparable.
Executive therefore agrees that the Company, in addition to any other remedies available to it, shall be entitled to preliminary and
permanent injunctive relief against any breach or threatened breach by Executive of any of those covenants, without having to post bond.
Executive and the Company further agree that, in the event that any provision of this Section 9 is determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range
of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. Further,
it is agreed that the existence of any claim or cause of action against the Company, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by Company of any of the provisions of this Agreement. In the event the Company should
bring any legal action or other proceeding for the enforcement of Section 9 of this Agreement, Executive agrees that the time for calculating
the restrictive terms contained in Section 9 of this Agreement will not include the period of time commencing with the filing of legal
action or other proceeding to enforce the terms of Section 9 of this Agreement, through the date of final judgment or final resolution,
including all appeals, if any, of such legal action or other proceeding.

 

(g) Executive
agrees to notify new employers, and consent to notification by the Company to the new employers, of Executive’s obligations under
this Agreement.

 

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(h) Executive
shall not, during the Term and/or at any time thereafter, directly or indirectly, in any communications in any media, criticize, ridicule
or make (or cause or permit others to criticize, ridicule or make) any statement which disparages or is derogatory of the Company, the
Company’s products or services, or any of the Company’s present, former or future shareholders, officers, directors, members,
managers, and/or employees. Notwithstanding the foregoing, Executive is not barred or otherwise restricted from exercising any right
of speech or expression protected by applicable law, rule or regulation.

 

10. Conflicting
Agreements. Executive represents, warrants and covenants to the Company that: (i) he is not bound, nor will Executive become bound,
by any covenant, contract, agreement or other obligation that conflicts with, or may or does prevent Executive in any manner from performing,
Executive’s duties as Chief Financial Officer of the Company under this Agreement, and (ii) he is not aware of any presently existing
fact, circumstance or event (including, without limitation, any health condition or legal constraint) which would preclude or restrict
him from providing to the Company the services contemplated by this Agreement, or which would give rise to any breach of any term or
provision hereof, or which could otherwise result in the termination of employment hereunder for Cause or any other reason. Executive
agrees that he will not disclose to or use on behalf of the Company any proprietary information of a third party without that party’s
written consent.

 

11. Withholding.
All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by the
Company under applicable law and any voluntary deductions authorized by Executive.

 

12. Remedies.
If there is a breach or threatened breach of the provisions of Section 8 or 9 of this Agreement, the Company shall be entitled to
an injunction restraining the Executive from such breach. Nothing herein shall be construed as prohibiting the Company from pursuing
any other remedies for such breach or threatened breach.

 

13. Assignment.
This Agreement may not be assigned by any party hereto; provided that the Company may assign this Agreement: (a) to an affiliate
so long as such affiliate assumes the Company’s obligations hereunder; provided that no such assignment shall discharge the Company
of its obligations herein, or (b) in connection with a merger or consolidation involving the Company or a sale of more than 50% of the
Company’s securities or assets, to the surviving corporation or purchaser as the case may be, so long as such assignee assumes
the Company’s obligations thereunder. This Agreement shall inure to the benefit of and be binding upon Executive and the Company,
and each of their respective successors, executors, administrators, heirs and permitted assigns. Executive expressly consents to be bound
by the provisions of this Agreement for the benefit of the Company, successor or permitted assign to whose employ Executive may be transferred,
without the necessity that this Agreement be re-signed at the time of such transfer.

 

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14. Notices.
Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and sent by registered mail to
the Executive at the address below:

 

Ramon
A. Pino

1512
E. Broward Blvd., Suite 300

Fort
Lauderdale, FL 33301

 

and
to the Company at:

 

Veritas
Farms, Inc.

1512
E. Broward Blvd., Suite 300

Fort
Lauderdale, FL 33301

Attention:
Chief Executive Officer

 

15. Waiver
of Breach. A waiver by the Company or the Executive of a breach of any provision of this Agreement by the other party shall not operate
or be construed as a waiver of any subsequent breach by the other party.

 

16. Severability.
If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction,
then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it
is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid
and enforceable to the fullest extent permitted by law.

 

17. Entire
Agreement. This instrument contains the entire agreement of the parties. It may be changed only by an agreement in writing signed
by a party against whom enforcement of any waiver, change, modification, extension or discharge is sought.

 

18. Miscellaneous.
This Agreement (including Exhibits A, B, and C) sets forth the entire agreement between Executive and the Company and replaces all
prior and contemporaneous communications, agreements and understandings, written or oral, with respect to the terms and conditions of
employment. This Agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by
Executive and the Company. The headings and captions in this Agreement are for convenience only and in no way define or describe the
scope or content of any provision of this Agreement.

 

19. Governing
Law. This Agreement shall be construed in accordance with the laws of the State of Florida without regard to the conflict of law
principals. All questions with respect to the construction hereof and the rights and liabilities of the parties hereto shall be governed
by the laws of the State of Florida. Any action or proceeding arising out of or relating hereto shall be brought exclusively in Broward
County, State of Florida, or the United States District Court, Southern District of Florida. Each party consents to the jurisdiction
of such Florida court in any such civil action or legal proceeding and waives any objection to the laying of venue of any such civil
action or legal proceeding in such Florida court.

 

20. Survival.
Provisions of this Agreement shall survive any termination or expiration if so provided in this Agreement or if necessary or desirable
to accomplish the purposes of other surviving provisions.

 

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21. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument. Confirmation of execution by electronic transmission of a facsimile signature page shall
be binding on a party so confirming.

 

22. JURY
WAIVER. IN ANY CIVIL ACTION, COUNTERCLAIM, OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF, CONCERNS, OR RELATES
TO THIS AGREEMENT, ANY AND ALL TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE PERFORMANCE OF THIS AGREEMENT, OR THE RELATIONSHIP CREATED
BY THIS AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT JURISDICTION
AND NOT TO A JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART
OR A COPY OF THIS AGREEMENT WITH ANY COURT, AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THIS AGREEMENT OF THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY. NEITHER PARTY HAS MADE OR RELIED UPON ANY ORAL REPRESENTATIONS TO OR BY ANY OTHER PARTY REGARDING THE ENFORCEABILITY
OF THIS PROVISION. EACH PARTY HAS READ AND UNDERSTANDS THE EFFECT OF THIS JURY WAIVER PROVISION. EACH PARTY ACKNOWLEDGES THAT IT HAS
BEEN ADVISED BY ITS OWN COUNSEL WITH RESPECT TO THE TERMS OF THIS AGREEMENT AND SPECIFICALLY WITH RESPECT TO THE TERMS OF THIS SECTION.

 

23. Conditions
of Hire. Executive’s employment with the Company is subject to the following: (1) Executive signing and returning this Agreement
in a timely manner, but not later than the last business day prior to the Start Date; (2) Executive’s effective consent to a background
check by a consumer reporting agency selected by the Company and the receipt of results of that background check satisfactory to the
Company in its sole discretion; and (3) Executive’s completion of Section 1 of the Form I-9 on or before the Start Date, and provision
of documentary proof of identity and authorization to work in the United States within 72 hours of the Start Date.

.

    12

     

    

 

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

 

	Veritas Farms, Inc.	 	Executive
	 	 	 	 
	By:	/s/ Stephen E. Johnson	 	/s/ Ramon A. Pino 
	 	Stephen E. Johnson	 	Ramon A. Pino
	 	Chief Executive Officer	 	

 

     

     

    

 

Exhibit
A

 

During
the Term, as compensation for all services performed by Executive for the Company, the Company will provide Executive the following pay
and benefits:

 

1. Base
Salary. The Company will pay Executive a base salary at the rate of $190,000 per annum through equal installments of $7,307.70 per
bi-weekly pay period, payable in accordance with the regular payroll practices of the Company. This amount may be increased at the discretion
of the Board of Directors and may be adjusted to compensate for annual cost of living increases.

 

2. Hiring/Relocation
Bonus. The Company will not provide Executive with a hiring/relocation bonus.

 

3. Cash
Incentive Program. During the Term, Executive will be eligible to participate in a short-term cash or equity incentive program under
which incentive compensation awarded will be based on the Company’s achievement of results set forth in a particular year. Executive’s
target bonus and the target achievement shall be set annually by the Company in consultation with the Executive. Any bonus awarded to
the Executive under the cash incentive program shall be paid within 30 days after the issuance of the Company’s final audited financial
statements for such calendar year, but in no case later than 120 days after the end of such calendar year. Executive must be employed
through the last day of the fiscal year, which shall not fall within any notice period under Section 3(c) or 3(d) of the Agreement, to
be considered for payment under this Program. Any bonus awarded for achieving such targets for the first or last fiscal year covered
by this Agreement may be rewarded by the proportional number of weeks worked by Executive.

 

4. Participation
in Employee Benefit Plans. Executive is entitled to participate in all employee benefit plans in effect for employees of the Company
generally, subject to plan terms and generally applicable Company policies, but excluding any plans which are duplicative of benefits
otherwise provided to Executive under this Agreement (e.g., severance pay, vacations). Plan enrollment will be subject to any applicable
waiting period.

 

5. Vacations.
Executive will be entitled to take a reasonable amount of paid time off as vacation each year during the term hereof, in addition
to holidays observed by the Company as set forth in the Company’s Vacation Policy. Vacation may be taken at such times and intervals
as Executive shall determine, subject to the business needs of the Company and such prior notice of vacation plans to the Board of Directors
and/or Chief Executive Officer; provided that, notwithstanding the foregoing, in no event shall Executive be entitled to take any vacation
for longer than two (2) consecutive weeks during the Term without prior written approval of the Board of Directors or Chief Executive
Officer.

 

6. Business
Expenses. During the Term, the Company will pay or reimburse Executive for all reasonable business expenses incurred or paid by Executive
in the performance of duties and responsibilities for the Company, as determined by Company policies, and subject to any maximum annual
limit and other restrictions on such expenses set by the Company and to such reasonable substantiation and documentation as the Company
may specify from time to time.

 

7. Stock
Option Plan. The Executive shall be permitted to participate in the Company’s stock option plan.

 

    1

     

    

 

Exhibit
B

 

SEVERANCE
PAYMENTS

 

In
the event of non-renewal of this Agreement by the Company or termination of Executive’s employment (i) by the Company pursuant
to Section 3(c), (ii) by the Executive for Good Reason in Connection with a Change of Control, (iii) for Disability, or (iv) for reasons
other than (I) termination by the Company pursuant to Section 3(a), (II) death of the Executive, or (III) termination by Executive pursuant
to Section 3(d), the Company will pay Executive severance pay in a total amount equivalent to one (1) year of the Base Salary. Options
which have vested prior to the date of termination shall remain exercisable during the severance period. Unvested options shall terminate
in accordance with the terms of the respective Stock Option Agreements. The Company has the option to make the severance payments in
equal installments during the period immediately following the termination of employment, to begin after any revocation period described
in the Release of Claims, which is attached as Exhibit C. Any obligation of the Company to provide severance payments under this Exhibit
B is conditioned, however, upon Executive signing an effective and timely release of claims in the form attached to this Agreement and
marked Exhibit C (the “Release of Claims”). The Release of Claims creates legal obligations and the Company therefore advices
Executive to seek the advice of an attorney before signing it. Severance payments hereunder will be payable in accordance with the normal
payroll practices of the Company, and will begin at the Company’s next regular payroll period following the later of the effective
date of the Employee Release or the date it is received by the Company, but shall be retroactive to the day following the date of termination.
In no event shall severance payments begin prior to the end of any revocation period provided in the Release of Claims.

 

    1

     

    

 

Exhibit
C

 

RELEASE
OF CLAIMS

 

FOR
AND IN CONSIDERATION OF the severance pay to be provided to me in connection with the termination of my employment, as set forth in the
Employment Agreement between me and Veritas Farms, Inc. (the “Company”) dated as of _________, 20XX (the “Agreement”),
which is conditioned on my signing this Release of Claims and to which I am not otherwise entitled, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, I, on my own behalf and on behalf of my heirs, executors, administrators,
beneficiaries, representatives and assigns, and all others connected with me, hereby release and forever discharge the Company and all
of their respective past, present and future officers, directors, shareholders, employees, agents, general and limited partners, members,
managers, joint ventures, representatives, successors and assigns, and all others connected with any of them, both individually and in
their official capacities, from any and all causes of action, rights and claims of any type or description, whether known or unknown,
which I have had in the past, now have, or might now have, through the date of my signing of this Release of Claims, in any way resulting
from, arising out of or connected with my employment by the Company or the termination of that employment (or the Agreement), including,
without limitation (each as amended from time to time):

 

(i) Any
and all claims, relating to Executive’s employment by the Company, the terms and conditions of such employment, employee benefits,
the termination of the employment, and/or any of the events relating directly or indirectly to or surrounding such termination;

 

 (ii) Any
and all claims of discrimination, harassment, whistle blowing or retaliation in employment (whether based on federal, state or local
law, statutory or decisional), including, without limitation, all claims under the Age Discrimination in Employment Act, as amended,
29 U.S.C. § 621 et seq., the Older Worker Benefit Protection Act, as amended; Title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.), as amended, the Civil Rights Acts of 1866, 1871 and 1991, all as amended, the Americans with Disabilities
Act, the Rehabilitation Act of 1973, the Reconstruction Era Civil Rights Act of 1866, 42 U.S.C. §§ 1986-86, as amended, the
Equal Pay Act, the National Labor Relations Act, as amended, Sarbanes-Oxley, the Frank Dodd Act, the Family and Medical Leave Act, the
Employee Retirement Income Security Act, the Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. 1161 et seq.),
the American Reinvestment and Recovery Act of 2009, the Worker Adjustment and Retraining Notification Act, as amended, the Florida Civil
Rights Act of 1992 f/k/a Human Rights Act of 1977, the Florida Whistle-Blower Law (Fla. Stat. § 448.101 et seq.), the Florida Equal
Pay Act, and waivable rights under the Florida Constitution; any state or federal Whistleblower’s Act, as amended;

 

 (iii) Any
and all claims under any contract, whether express or implied;

 

 (iv) Any
and all claims for unintentional torts, for emotional distress and for pain and suffering;

 

 (v) Any
and all claims for violation of any statutory or administrative rules, regulations or codes; and/or

 

 (vi) Any
and all claims for attorneys’ fees, costs, disbursements, wages, bonuses, benefits, vacation and/or the like.

 

Without
limiting the generality or force or effect of the general release provided above, the payments to be provided by the Company pursuant
to the Agreement are and shall be deemed to satisfy all claims by me for back pay, front pay, bonus payments, benefits, reimbursement
for expenses, or compensation of any kind (or the value thereof), and for liquidated damages or punitive damages (under any applicable
statute or at common law or equity).

 

    1

     

    

 

Excluded
from the scope of this Release of Claims is any claim arising under the terms of the Agreement after the effective date of this Release
of Claim.

 

In
signing this Release of Claims, I acknowledge my understanding that I may not sign it prior to the termination of my employment, but
that I may consider the terms of this Release of Claims for at least twenty-one (21) days (or such longer period as the Company may specify)
from the date I receive this Release of Claims. I also acknowledge that I am advised by the Company and its Affiliates to seek the advice
of an attorney prior to signing this Release of Claims; that I have had sufficient time to consider this Release of Claims, under the
Age Discrimination in Employment Act and the Older Worker Benefit Protection Act, and to consult with an attorney, if I wished to do
so, or to consult with any other person of my choosing before signing; and that I am signing this Release of Claims voluntarily and with
a full understanding of its terms. 

 

I
further acknowledge that, in signing this Release of Claims, I have not relied on any promises or representations, express or implied,
that are not set forth expressly in the Agreement. I understand that I may revoke this Release of Claims at any time within seven (7)
days of the date of my signing by written notice to the Chief Executive Officer or Board of Directors of Veritas Farms, Inc., and that
this Release of Claims will take effect only upon the expiration of such seven-day revocation period and only if I have not timely revoked
it.

 

I
further agree to reasonably and voluntarily participate and cooperate with the Company, if asked, in providing information necessary
to assist the Company through business dealings and in any legal proceedings involving any issues that previously were within the scope
of my responsibilities at the Company or which I have, should have, or may have, knowledge of by virtue of my relationship and position
or prior relationship and position with the Company.

 

This
Release of Claims constitutes the entire agreement between the parties hereto with respect to the subject matter hereof. It supersedes
all prior negotiations, letters and understandings relating to the subject matter hereof, except that matters surviving the termination
of the Employment Agreement dated _________ shall remain in full force and effect. It shall not be construed against the party who drafted
it. This Release of Claims shall be interpreted, construed and enforced in accordance with the laws of the State of Florida. The failure
of any party at any time or times to require performance of any provision of this Release of Claims will in no manner affect the right
to enforce the same. The waiver by any party of any breach of any provision of this Release of Claims will not be construed to be a waiver
by any such party of any succeeding breach of that provision or a waiver by such party of any breach of any other provision. The invalidity,
illegality or unenforceability of any provision or provisions of this Release of Claims will not affect any other provision of this Release
of Claims, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion of any provision
of this Release of Claims affect the balance of such provision. In the event that any one or more of the provisions contained herein
or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, this Release of Claims shall
be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained herein. This Release
of Claims will be binding upon the parties, their respective heirs, successors and/or assigns and will inure to the benefit of any successor
or successors of the Company.

 

I
assume the risk for any mistake of fact now known or unknown and understand the significance of this Release of Claims.

 

I
have the mental capacity to enter into this Release of Claims and, intending to be legally bound, I have signed this Release of Claims
under seal as of the date written below.

 

	Signature:	 	 
	 	[insert Executive name]	 
	 	 	 
	Date Signed:		 

 

 

2Exhibit
10.1

 

AMENDMENT
TO PROMISSORY NOTES

 

This
Amendment to Promissory Notes (this “Amendment”) is effective as of June 30, 2021 and is by and between KLUSMAN
FAMILY HOLDINGS, LLC, an Arizona limited liability company (“Maker”) and CHEE CORP., a Nevada corporation (“Holder”).
Capitalized terms not otherwise defined herein have the meanings given to them in the Notes (as defined below).

 

WHEREAS,
Holder advanced funds and Maker executed the following Promissory Notes payable to Holder in the original aggregate principal
amount of $1,370,000 to evidence the obligation to repay such advances (together, the “Notes”):

 

	Date	Interest
    

Rate	Amount
	01/11/21	10%	$100,000
	01/19/21	10%	$60,000
	02/01/21	10%	$500,000
	02/05/21	10%	$135,000
	03/08/21	10%	$25,000
	03/24/21	10%	$500,000
	03/24/21	10%	$50,000
	Total
    Principal Due	$1,370,000

 

WHEREAS,
the Notes have accrued interest payable to the Holder in the amount of $49,433 through June 30,2021.

 

WHEREAS,
Maker and Holder now wish to amend and restate the Notes as set forth herein.

 

NOW
THEREFORE, in consideration of the agreements, promises, covenants, and provisions contained in this Amendment, the parties agree
as follows:

 

1.          
Extension of Maturity Date. The Maturity Date of each of the Notes is hereby extended, without penalty, to January 31,
2022.

 

2.          
Amendment and Restatement of Notes. The Notes are hereby amended, restated, and their outstanding principal and accrued
interest are aggregated in their entirety into a single new Amended and Restated Promissory Note in the form attached hereto as
Exhibit A.

 

3.           
No Default. Holder acknowledges that no Event of Default under the Notes has occurred.

 

4.           
Counterparts. This Amendment may be executed in two or more counterparts, each of which will be deemed an original and
all of which together will constitute one and the same instrument.

     

     

    

5.          
No Rule of Strict Construction. The language of this Amendment has been approved by all of the parties and no rule of strict
construction will be applied against any party.

 

6.          
Governing Law. This Amendment will be construed in accordance with and any dispute or controversy arising from any breach
or asserted breach of this Amendment will be governed by the laws of the State of Arizona.

	 	 	 
	 	MAKER:
	 	Klusman Family Holdings, LLC,
	 	an Arizona limited liability company
	 	 	 
	 	By:	/s/ Aaron
    Klusman
	 	 	Aaron Klusman, Member

	 	 	 
	 	HOLDER:
	 	Chee Corp.,
	 	a Nevada corporation
	 	 	 
	 	By:	/s/ Rick
    Gean
	 	 	Rick Gean, Chief Financial Officer

     

     

    

EXHIBIT
A

Amended
and Restated Promissory Note

 

(Attached)

     

     

    

AMENDED
AND RESTATED PROMISSORY NOTE

 

		$1,419,433	June
30, 2021

 

FOR
VALUE RECEIVED, KLUSMAN FAMILY HOLDINGS, LLC, an Arizona limited liability company with an address of 2701 E. Camelback Road,
Ste. 180, Phoenix, AZ 85016 (“Maker”), agrees and promises to pay to the order of CHEE CORP., a Nevada corporation
with an address of 1206 E. Warner Rd, Suite 101-I, Gilbert, AZ 85296 (“Holder”), the sum of One Million Four
Hundred Nineteen Thousand Four Hundred Forty Three Dollars ($1,419,443), with such amount payable to Holder at the address set
forth above, or at such other place as Holder may designate.

 

1.       Interest.
This promissory note (this “Note”) bears simple interest at the rate of ten percent (10%) per annum. No interest
payments are due until the Maturity Date.

 

2.       Payments.
The entire balance of this Note is due and payable on or before January 31, 2022 (the “Maturity Date”). Maker
may prepay all or any portion of this Note at any time without penalty.

 

3.       Security.
This Note is unsecured.

 

4.       Default.
The existence or occurrence of any one or more of the following will constitute an “Event of Default” under
this Note:

 

    4.1       Non-Performance.
Maker’s failure to comply timely and fully with any of the terms or provisions of this Note, including, without limitation,
the failure to pay all amounts due within ten (10) days after the due date.

 

    4.2       Bankruptcy;
Insolvency. Maker being insolvent by being unable to pay debts when due or by having liabilities in excess of assets; or Maker
committing an act of bankruptcy, making a general assignment for the benefit of creditors, or the filing by or against Maker of
a voluntary or involuntary petition in bankruptcy or for the appointment of a receiver (and any involuntary petition is not dismissed
within thirty (30) days from the filing thereof); or if there commences under any law relating to bankruptcy, insolvency, reorganization
or relief of debtors, proceedings affecting any significant part of Maker’s property or for the composition, extension,
arrangement, or adjustment of any of their respective obligations; or if a writ of attachment, execution, or any similar process
is issued or levied against any significant part of Maker’s property that is not released, stayed, bonded, or vacated within
a reasonable time after its issue or levy.

 

5.       Default
Interest. Upon the occurrence of an Event of Default, Holder shall be entitled to receive and Maker shall pay interest on
the entire unpaid principal balance at a rate (the “Default Rate”) equal to fifteen percent (15%) per annum.
The Default Rate shall be computed from the occurrence of the Event of Default until payment in full. This clause, however, shall
not be construed as an agreement or privilege to extend the Maturity Date, nor as a waiver of any other right or remedy accruing
to Holder by reason of the occurrence of any Event of Default.

 

6.       Acceleration.
In addition to all other rights and remedies at law and/or equity Holder may have if an Event of Default occurs, Holder, at its
option without further notice to Maker, may declare immediately due and payable the unpaid principal balance of this Note together
with all other sums owed by Maker under this Note.

 

7.       Notices.
All notices that Holder or Maker is required or permitted to give under this Note shall be delivered to the addresses of Maker
and Holder as set forth in the opening paragraph.

 

8.       Severability.
If any term or provision of this Note is, to any extent, determined by a court of competent jurisdiction to be invalid or unenforceable,
the remainder of this Note will not be affected, and the invalid or enforceable term or provision will be reduced or otherwise
modified by the court or authority only to the minimum extent necessary to make it valid and enforceable. If any term or provision
cannot be reduced or modified to make it reasonable and permit its enforcement, it will be severed from this Note and the remaining
terms will be interpreted in a way as to give maximum validity and enforceability to this Note. It is the intention of Maker that,
if any provision of this Note is capable of two constructions, one of which would render the provisions void and the other of
which would render the provisions valid, then the provision will have the meaning that renders it valid.

     

     

    

9.     Time
of the Essence. Time is of the essence of this Note. Whenever notice must be given, payment made, document delivered, or an
act done under this Note on a day that is not a Business Day, the notice may be given, payment made, document delivered, or act
done on the next following day that is a Business Day. “Business Day” means a day other than a Saturday, Sunday,
or a day observed as a legal holiday by the United States government or the State of Arizona.

 

10.     Governing
Law; Jurisdiction and Venue. This Note is to be governed by and interpreted in accordance with the laws of the State of Arizona.
Any legal action or proceeding with respect to this Note or any document related hereto shall be brought in Maricopa County, Arizona
in any court of competent jurisdiction, and, by execution and delivery of this Note, Maker and the Holder hereby accept the jurisdiction
and venue of such courts.

 

11.     Successors
and Assigns. This Note shall be binding upon and inure to the benefit of Maker and Holder and their respective successors
and permitted assigns. Maker may not voluntarily or involuntarily transfer, convey, or assign this Note, or any of its duties
or obligations hereunder, without Holder’s prior written consent, which may be withheld for any reason, or for no reason
at all. As used herein, the term “Holder” means and includes the successors and permitted assigns of the Holder.

 

12.     Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of Maker,
which is absolute and unconditional, to pay the principal amount and accrued interest of this Note at the time, place, and rate,
and in the currency, herein prescribed. This Note is a direct debt obligation of Maker.

 

13.     Attorneys’
Fees and Costs. Each party shall bear its own expenses in connection with the issuance of this Note; provided, however, that
if any action at law or in equity is necessary to enforce or interpret the terms of this Note, the prevailing party shall be entitled
to its reasonable attorneys’ fees, costs, and disbursements in addition to any other relief to which such party may be entitled.

 

14.     No
Waiver by Holder. No delay or failure of Holder in exercising any right hereunder shall affect such right, nor shall any single
or partial exercise of any right preclude further exercise thereof.

	 	 	 
	 	MAKER
	 	Klusman Family Holdings, LLC,
	 	an Arizona limited liability company
	 	 
	 	By: 	 	 
	 	Name: Aaron Klusman 
	 	Its: Member

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