Document:

Exhibit 10.4

 

CONSULTING SERVICES AGREEMENT

 

THIS CONSULTING SERVICES
AGREEMENT (this “Agreement”) is entered into as of May 11, 2021 (the “Effective Date”), by and
between VERITAS FARMS, INC., a Nevada corporation (the “Company”), and ALEXANDER M. SALGADO, an individual
(the “Consultant”), each a “Party” and together, the “Parties.”

 

RECITALS

 

WHEREAS, the Company
and the Consultant have entered into a Separation Agreement of even date herewith in connection with the Consultant’s separation
from the Company as the Chief Executive Officer and member of its Board of Directors, and any other positions that he may have held with
respect to the Company and its subsidiary (the “Separation Agreement”);

 

WHEREAS, pursuant to
the terms of the Separation Agreement the Parties have agreed to enter into this Agreement for the provision of consulting services by
Consultant to the Company; and

 

WHEREAS, the Company
desires to retain Consultant and Consultant desires to provide consulting services to the Company pursuant to the terms of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing provisions, the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties hereto agree as follows:

 

1. Recitals.
The foregoing recitals are true and correct and incorporated herein by reference.

 

2. Retention
and Performance of the Services.

 

(a) Retention and Definition
of the Services. The Company retains the Consultant and the Consultant agrees to provide the Company with such advice and assistance
with respect to its business and operations generally to provide for an orderly transition to the Consultant’s successor as Chief
Executive Officer of the Company, as the Company may reasonably request (the “Services”).

 

(b) Performance of
the Services . During the Term, the Consultant agrees to be available to provide the Services as reasonably requested from
to time by the Company. Consultant shall perform the Services in a diligent, timely and professional manner, and shall, at all times during
the Term, utilize his best efforts in connection with the Services. The Consultant will devote such time as may be reasonably requested
by the Company to fulfill his obligations under this Agreement. Notwithstanding the foregoing, the Consultant shall not be required to
spend more than forty (40) hours per week performing the Services and may perform the Services remotely if the services do not necessitate
the Consultant to be at the Company’s headquarters.

 

     

     

    

 

(c) Compliance with
Laws and Company Policies. The Consultant agrees that, in the performance of the Services under this Agreement, he shall comply
with all applicable laws, statutes, judgments, rules, regulations, ordinances, orders, decrees, permits, licenses, and other legal requirements
of any governmental authority or judicial court, now in effect or hereafter promulgated, and any judicial or administrative interpretation
thereof. Consultant shall also comply with all applicable policies of the Company relating to business and conduct in connection with
the Services.

 

3. Term.
The term of this Agreement will be for three (3) months beginning on the Effective Date (the “Term”), unless earlier
terminated as provided for in this Agreement. The term of this Agreement may be extended by mutual written agreement of the Parties.

 

4. Compensation. During
the Term, the Consultant shall be compensated, as follows:

 

(a) Consulting
Fee. The monthly consulting fee (the “Consulting Fee”) payable to Consultant during the term of this Agreement
is $16,666.66. The Consulting Fee shall be payable to Consultant on a bi-weekly basis in accordance with the Company’s normal payroll
practices.

 

(b) Expenses. The
Company shall reimburse the Consultant for all reasonable and necessary out-of-pocket business expenses including, but not limited to,
travel expenses incurred in connection with his performance of the Services hereunder, subject to the submission of reasonable documentation
therefor and pre-approval by the Company.

 

5. Confidentiality.

 

(a) The
Consultant agrees that all non-public information pertaining to the prior, current or contemplated business of the Company is valuable
and a confidential asset of the Company. Such information shall include, without limitation, information relating to customer lists, bidding
procedures, intellectual property, patents, trademarks, trade secrets, financing techniques and sources and such financial statements
of the Company as are not available to the public. The Consultant, his employees, agents and attorneys shall hold all such information
in trust and confidence for the Company and shall not use or disclose any such information for other than the Company’s business and shall
be liable for damages incurred by the Company as a result of the use or disclosure of such information by the Consultant or the Consultant’s
employees, agents or attorneys for any purpose other than the Company’s business, except (i) where such information is publicly available
or later becomes publicly available other than through a breach of this Agreement; (ii) where such information is subsequently lawfully
obtained by the Consultant from a third party or parties with no confidentiality obligation to the Company; (iii) if such information
is known to the Consultant prior to the execution of the Employment Agreement dated September 27, 2017 by and between the Company and
the Consultant; or (iv) as may be required by law. The terms of this Section 5 shall survive the expiration or termination of this
Agreement.

 

(b) The
Consultant acknowledges and agrees that in the event of the breach or threatened breach by the Consultant or its employees, agents or
attorneys of the terms and conditions of this Section 5, the Company will suffer irreparable injury and that monetary damages would
not provide an adequate remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or threatened breach,
the Company will be entitled, if it so elects and without the posting of any bond or security, to institute and prosecute proceedings
in any court of competent jurisdiction, in law or in equity, to obtain damages for any breach of this Section 5 or to (i) enforce
the specific performance of this Agreement by the Consultant or its employees, agents or attorneys; or (ii) enjoin the Consultant from
breaching or attempting to breach this Section 5.

 

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6. No
Conflicting Agreements; Nonexclusive Engagement.

 

(a) No
Conflicting Agreements. Consultant represents that Consultant is not a party to any existing agreement that would prevent Consultant
from entering into and performing this Agreement. Consultant will not enter into any other agreement that is in conflict with Consultant’s
obligations under this Agreement. Subject to the foregoing and Consultant’s obligations in Section 5, Consultant may act
as a consultant to and perform professional services for other persons or entities without the necessity of obtaining approval from the
Company.

 

(b) Other
Engagements. The Company may (i) engage other persons and entities to act as consultants to the Company and perform services for the
Company, including services that are similar to the Services described in Section 2, and (ii) enter into agreements similar to
this Agreement with other persons or entities, in all cases without the necessity of obtaining approval from Consultant.

 

7. Termination.

 

(a) Early Termination
by the Company. The Company may terminate this Agreement for “Cause” during the Term. The following shall
constitute Cause for termination:

 

(i) the
Consultant’s material breach or violation of any of the terms or conditions of this Agreement, or any other agreement between Consultant
and the Company, including the Separation Agreement, and the failure to remedy such material breach or violation within seven (7) days
after written notice of such material breach or violation is given to the Consultant by the Company;

 

(ii) the
Consultant’s failure to perform, or gross negligence in the performance of, Consultant’s Services to the Company, or willful
misconduct by Consultant that could be reasonably anticipated to be, or is, harmful to the business, reputation or other interest of the
Company in any material respect;

 

(iii) the
Consultant’s performance of any act or his failure to act, for which if he were prosecuted and convicted, a crime or offense involving
money or property of the Company or its subsidiary, or which would constitute a felony or a crime involving moral turpitude, dishonesty,
breach of trust, unethical business conduct, or any crime involving the Company in the jurisdiction involved would have occurred, or the
Consultant submitting to a plea of guilty or nolo contendre with respect thereto;

 

(iv)  the Consultant
engaged in unlawful harassment or discrimination of employees, customers or suppliers of the Company;

 

(v)  the Consultant
exposed the Company to criminal liability substantially caused by Consultant;

 

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(vi) violation
by Consultant of any law, rule or regulation (other than (A) traffic violations or similar offenses; (B) a non-material law, rule or regulation;
or (C) violations that would not be detrimental to the Company, its business, its reputation or its customers in any material respect);

 

(vii) the
Consultant’s theft or embezzlement of money or property of the Company; or

 

(viii) the
Consultant’s perpetration of a fraud on the Company, or the Consultant’s participation in such a fraud.

 

In addition to the foregoing,
the Company may terminate this Agreement during the Term for the death or disability of the Consultant (where the Consultant is unable
to perform the Services for ten (10) days during the Term, whether or not consecutive).

 

(b) Early Termination
by the Consultant. The Consultant may terminate this Agreement during the Term in the event of Company’s material breach
or violation of any of the terms or conditions of this Agreement and the failure to remedy such material breach or violation within fifteen
(15) days after written notice of such material breach or violation is given to the Company by the Consultant.

 

8. Return
of Property. Promptly upon the expiration or sooner termination of the Term of this Agreement, and earlier if requested by the
Company at any time, Consultant shall deliver to the Company (and will not keep in Consultant’s possession or deliver to anyone else)
all Confidential Information of the Company related to the Business and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, materials, equipment, computer software, other documents or property, or reproductions of any
aforementioned items developed by Consultant as part of or in connection with the Services or otherwise belonging to the Company.

 

9. Miscellaneous.

 

(a) Entire Agreement. This
Agreement constitutes the entire agreement of the Parties pertaining to its subject matter and supersedes all prior or contemporaneous
agreements or understandings between the Parties pertaining to the subject matter of this Agreement, and there are no promises, agreements,
conditions, undertakings, warranties, or representations, whether written or oral, express or implied, between the Parties other than
as set forth in this Agreement.

 

(b) Modification. This
Agreement may not be amended or modified, or any provision waived, unless in writing and signed by both Parties.

 

(c) Waiver. Failure
of a Party to enforce one or more of the provisions of this Agreement or to require at any time performance of any of the obligations
of this Agreement will not be construed to be a waiver of such provisions by such Party nor to in any way affect the validity of this
Agreement or such Party’s right thereafter to enforce any provision of this Agreement, nor to preclude such Party from taking any
other action at any time which it would legally be entitled to take.

 

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(d) Successors and
Assigns. This Agreement may not be assigned or the duties of any Party delegated unless in writing and signed by both Parties,
except for any assignment by the Company occurring by operation of law. Subject to the foregoing, this Agreement will inure to the benefit
of, and be binding upon, the Parties and their respective heirs, beneficiaries, personal representatives, successors and permitted assigns.

 

(e) Notices. Any
notice, demand, consent, agreement, request, or other communication required or permitted under this Agreement will be in writing and
will be (i) mailed by first-class mail, certified, return receipt requested, postage prepaid; or (ii) delivered by overnight
courier, to the Parties at the addresses as follows (or at such other addresses as will be specified by the Parties by like notice):

 

	If to the Company, then to:	Veritas Farms, Inc. 
	 	1512 E. Broward Blvd., Suite 300
	 	Fort Lauderdale, Florida 33301
	 	Attention:  CEO

 

	If to the Consultant, then to:	Alexander M. Salgado
	 	_________________________
	 	_________________________

 

Each Party may designate by notice in writing
a new address to which any notice, demand, consent, agreement, request or communication may thereafter be given, served or sent. Each
notice, demand, consent, agreement, request or communication that is mailed or delivered by courier in the manner described above will
be deemed received for all purposes at such time as it is delivered to the addressee (with the return receipt, the courier delivery receipt
being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

 

(f) Severability. If
any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, then such invalidity or unenforceability
will not affect the validity and enforceability of the other provisions of this Agreement and the provision held to be invalid or unenforceable
shall be construed and enforced as nearly as possible according to its original terms and intent to eliminate such invalidity or unenforceability.

 

(g) Counterparts. This
Agreement may be executed in any number of counterparts and by facsimile or other electronic means (including by PDF attachment), and
all such counterparts will collectively be deemed to constitute a single binding agreement and shall have the same legal effect as an
original.

 

(h) Governing Law;
Venue; Attorneys’ Fees. This Agreement shall be governed by the laws of the State of Florida, without regard to its conflicts
of law principles. In the event that any Party brings suit against the other hereunder, such Party shall bring such suit in the U.S. federal
or state court in Broward County, Florida. None of the Parties will argue or contend that it is not subject to the jurisdiction of the
Florida courts or that venue in Broward County, Florida is improper. Each Party consents that all service of process may be made by certified
mail directed to it at its address stated herein. The prevailing Party in any action brought to interpret or enforce this Agreement shall
be entitled to recover attorneys’ fees and costs from the non-prevailing Party at both the trial and appellate levels.

 

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(i) Independent
Contractor Status. The Consultant will be performing consulting services as an independent contractor during the Term, and not
as an employee or officer of the Company. The Consultant will be responsible for all taxes and non-reimbursable expenses attributable
to the rendition of his consulting services. The consulting arrangement shall not be deemed to constitute a partnership or joint venture
between the Company and the Consultant, nor shall the consulting arrangement be deemed to constitute the Consultant as an agent of the
Company. Consultant has no authority (and shall not hold himself out as having authority) to bind the Company. Consultant shall not make
any agreements or representations on the Company’s behalf without the Company’s prior written consent.

 

(j) Cooperation.
During the Term and continuing thereafter, if requested by the Company, the Consultant shall cooperate and assist the Company and its
subsidiary and affiliates in any dispute, proceeding, or investigation in which the Company or its subsidiary or affiliate is involved
and in which the Consultant has been involved, or which involves facts or events that existed or arose during the period of the Consultant’s
employment or consultancy with the Company relating to the business of the Company. The Company will reimburse the Consultant for all
reasonable out-of-pocket costs incurred by the Consultant in fulfilling his obligations under this Section 9(j).

 

(k) Restrictive
Covenants. The Consultant shall continue to be bound by the restrictive covenants contained in Section 2(f) of the Separation
Agreement (the “Restrictive Covenants”), except that any references in the Restrictive Covenants to the termination
or end of the Consultant’s employment shall be deemed to refer instead to the termination or end of the Consultant’s Term
under this Agreement. Except as modified in this Section 9(k), the Restrictive Covenants will survive the termination of this Agreement
to the extent provided in the Separation Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the Parties have executed this Agreement to be effective as of the date first above written.

 

	 	THE COMPANY:
	 	 
	 	VERITAS FARMS, INC.
	 	 
	 	By:	/s/ Michael D. Pelletier
	 	 	Michael D. Pelletier, Chief Financial Officer

 

	 	THE CONSULTANT:
	 	 
	 	/s/ Alexander M. Salgado
	 	Alexander M. Salgado

 

 

7Exhibit 10.5

 

SEPARATION AGREEMENT

 

THIS SEPARATION AGREEMENT
(the “Agreement”) is entered into this 6th day of May, 2021, effective May 14, 2021 (the “Effective
Date”), by and between VERITAS FARMS, INC., a Nevada corporation (“VFRM” or the “Company”)
and MICHAEL D. PELLETIER, an individual (“Executive”). VFRM and Executive are sometimes referred to herein individually,
as a “Party” and collectively, as the “Parties.”

 

RECITALS

 

WHEREAS, effective
as of April 23, 2019 the Executive was hired and employed by VFRM to serve as its Chief Financial Officer; and

 

WHEREAS, VFRM and Executive
wish to terminate Executive’s employment with VFRM and Executive wishes to resign as VFRM’s Chief Financial Officer, on and
subject to the terms and conditions set forth below.

 

AGREEMENT

 

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

 

1. Termination
of Employment; Resignation as Chief Financial Officer; Consulting Agreement.

 

(a) Executive’s
employment with VFRM is hereby terminated effective as of the Effective Date, on and subject to the terms of and except as provided in
this Agreement.

 

(b) As
of the Effective Date, except as provided in the Consulting Agreement (as hereinafter defined), Executive resigns from any and all positions
the Executive holds with the Company and its subsidiary, 271 Lake Davis Holdings, LLC, a Delaware limited liability company.

 

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

 

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

 

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

 

		●	Commencing on the date of expiration or termination of the Consulting Agreement and continuing for a period
of six (6) months thereafter (the “Severance Period”), pay to Executive severance (“Severance Pay”)
at the rate of twelve thousand Dollars ($12,000) per month (Executive’s current level of base salary). Severance Pay shall be paid
in accordance with VFRM’s normal payroll practices for the payment of executive and management compensation in effect from time
to time during the Severance Period;

 

     

     

    

 

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

 

		●	allow Executive to exercise the following vested options (the “Options”) previously
granted to him under VFRM’s 2017 Stock Incentive Plan (the “2017 Plan”) at any time and from time to time, commencing
on the Effective Date and continuing through the date which is three (3) months after expiration of the Severance Period, without regard
to Executive’s Continuous Service (as such term is defined in the 2017 Plan):

 

		o	options to purchase 16,667 shares of VFRM’s common stock at an exercise price of $2.488 per share
with an expiration date of April 23, 2029.

 

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

 

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

 

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

 

(e) VFRM
and Executive agree that except as otherwise specifically set forth in this Agreement, VFRM shall have no further obligations, financial
or otherwise, to Executive.

 

3. Release.

 

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

 

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

 

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

 

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

 

7. No
Offset; Clawback.

 

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

 

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

 

8. Indemnification.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16. Consideration
and Revocation Period. Executive represents and warrants
that Executive has read this entire Agreement; has been provided at least twenty-one (21) days to consider it; has been given the opportunity
and has had this Agreement reviewed by an attorney; understands the meaning and application of each and every provision of this Agreement;
and is signing of Executive’s own free will with the intent of being bound by each and every provision of this Agreement. Executive
acknowledges that if Executive signs this Agreement prior to the expiration of twenty-one (21) days, Executive has done so voluntarily
and knowingly. Executive agrees that any modification to this Agreement, material or otherwise, does not restart, extend or affect in
any way the original twenty-one (21) day consideration period. Executive further understands that Executive has seven (7) days to revoke
this Agreement after signing it by delivering a notice of rescission by to the Company in accordance with the provisions of Section 23.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

[Signature Page Follows]

 

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

 

	 	VFRM:
	 	 
	 	VERITAS FARMS, INC.
	 	 
	 	By:	/s/ Dave Smith
	 	 	Dave Smith, Chief Operating Officer
	 	 
	 	EXECUTIVE:
	 	 
	 	/s/ Michael D. Pelletier
	 	Michael D. Pelletier

 

 

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