Document:

Exhibit 4.4

GALAXY NEXT GENERATION, INC. 

EMPLOYEES, DIRECTORS, AND CONSULTANTS STOCK PLAN 

FOR THE YEAR 2019

1.

Introduction.  This Plan shall be known as the “Galaxy Next Generation, Inc. Employees, Directors, and Consultants Stock Plan for the Year 2019” and is hereinafter referred to as the “Plan.”  The purposes of this Plan are to enable Galaxy, a Nevada corporation (the “Company”), to promote the interests of the Company and its stockholders by attracting and retaining Employees, Directors, and Consultants capable of furthering the future success of the Company and by aligning their economic interests more closely with those of the Company’s stockholders, by paying their fees or salaries in the form of shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”).

2.

Definitions.  The following terms shall have the meanings set forth below:

“Board” means the Board of Directors of the Company.

“Change of Control” has the meaning set forth in Paragraph 12(d) hereof.

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder.  References to any provision of the Code or rule or regulation thereunder shall be deemed to include any amended or successor provision, rule or regulation.

“Committee” means the committee that administers this Plan, as more fully defined in Paragraph 13 hereof.

“Common Stock” has the meaning set forth in Paragraph 1 hereof.

“Company” has the meaning set forth in Paragraph 1 hereof.

“Consultants” means the Company’s consultants and advisors only if: (i) they are natural persons; (ii) they provide bona fide services to the Company; and (iii) the services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s securities.

“Deferral Election” has the meaning set forth in Paragraph 6 hereof.

“Deferred Stock Account” means a bookkeeping account maintained by the Company for a Participant representing the Participant’s interest in the shares credited to such Deferred Stock Account pursuant to Paragraph 7 hereof.

“Delivery Date” has the meaning set forth in Paragraph 6 hereof.

“Director” means an individual who is a member of the Board of Directors of the Company.

“Dividend Equivalent” for a given dividend or other distribution means a number of shares of the Common Stock having a Fair Market Value, as of the record date for such dividend or distribution, equal to the amount of cash, plus the Fair Market Value on the date of distribution of any property, that is distributed with respect to one share of the Common Stock pursuant to such dividend or distribution; such Fair Market Value to be determined by the Committee in good faith.

“Effective Date” has the meaning set forth in Paragraph 3 hereof.

“Employee” means any officer or employee of the Company.

“Exchange Act” has the meaning set forth in Paragraph 12(d) hereof.

 

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“Fair Market Value” means the mean between the highest and lowest reported sales prices of the Common Stock on the New York Stock Exchange Composite Tape or, if not listed on such exchange, on any other national securities exchange on which the Common Stock is listed or on The Nasdaq Stock Market, or, if not so listed on any other national securities exchange or The Nasdaq Stock Market, then the average of the bid price of the Common Stock during the last five trading days on the OTC Bulletin Board immediately preceding the last trading day prior to the date with respect to which the Fair Market Value is to be determined.  If the Common Stock is not then publicly traded, then the Fair Market Value of the Common Stock shall be the book value of the Company per share as determined on the last day of March, June, September, or December in any year closest to the date when the determination is to be made.  For the purpose of determining book value hereunder, book value shall be determined by adding as of the applicable date called for herein the capital, surplus, and undivided profits of the Company, and after having deducted any reserves theretofore established; the sum of these items shall be divided by the number of shares of the Common Stock outstanding as of said date, and the quotient thus obtained shall represent the book value of each share of the Common Stock of the Company.

“Participant” has the meaning set forth in Paragraph 4 hereof.

“Payment Time” means the time when a Stock Award is payable to a Participant pursuant to Paragraph 5 hereof (without regard to the effect of any Deferral Election).

“Stock Award” has the meaning set forth in Paragraph 5 hereof.

“Third Anniversary” has the meaning set forth in Paragraph 6 hereof.

3.

Effective Date of the Plan.  This Plan was adopted by the Board effective December 28, 2018 (the “Effective Date”).

4.

Eligibility.  Each individual who is an Employee, Officer, Director, or Consultant on the Effective Date and each individual who becomes an Employee, Officer, Director, or Consultant thereafter during the term of this Plan shall be a participant (the “Participant”) in this Plan, in each case during such period as such individual remains an Employee, Director, or Consultant of the Company or any of its subsidiaries.  Each credit of shares of the Common Stock pursuant to this Plan shall be evidenced by a written agreement duly executed and delivered by or on behalf of the Company and a Participant, if such an agreement is required by the Company to assure compliance with all applicable laws and regulations.

5.

Grants of Shares.  Commencing on the Effective Date, the amount of compensation or bonus for service to the Participants shall be payable in shares of the Common Stock (the “Stock Award”) pursuant to this Plan.  The deemed issuance price of shares of the Common Stock subject to each Stock Award shall not be less than 85 percent of the Fair Market Value of the Common Stock on the date of the grant.  In the case of any person who owns securities possessing more than ten percent of the combined voting power of all classes of securities of the issuer or its parent or subsidiaries possessing voting power, the deemed issuance price of shares of the Common Stock subject to each Stock Award shall be at least 100 percent of the Fair Market Value of the Common Stock on the date of the grant.

6.

Deferral Option.  From and after the Effective Date, a Participant may make an election (a “Deferral Election”) on an annual basis to defer delivery of the Stock Award specifying which one of the following ways the Stock Award is to be delivered (a) on the date which is three years after the Effective Date for which it was originally payable (the “Third Anniversary”), (b) on the date upon which the Participant ceases to be a Participant for any reason (the “Departure Date”) or (c) in five equal annual installments commencing on the Departure Date (the “Third Anniversary” and “Departure Date” each being referred to herein as a “Delivery Date”).  Such Deferral Election shall remain in effect for each Subsequent Year unless changed, provided that, any Deferral Election with respect to a particular Year may not be changed less than six months prior to the beginning of such Year, and provided, further, that no more than one Deferral Election or change thereof may be made in any Year.

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Any Deferral Election and any change or revocation thereof shall be made by delivering written notice thereof to the Committee no later than six months prior to the beginning of the Year in which it is to be effected; provided that, with respect to the Year beginning on the Effective Date, any Deferral Election or revocation thereof must be delivered no later than the close of business on the 30th day after the Effective Date.

7.

Deferred Stock Accounts.  The Company shall maintain a Deferred Stock Account for each Participant who makes a Deferral Election to which shall be credited, as of the applicable Payment Time, the number of shares of the Common Stock payable pursuant to the Stock Award to which the Deferral Election relates.  So long as any amounts in such Deferred Stock Account have not been delivered to the Participant under Paragraph 8 hereof, each Deferred Stock Account shall be credited as of the payment date for any dividend paid or other distribution made with respect to the Common Stock, with a number of shares of the Common Stock equal to (a) the number of shares of the Common Stock shown in such Deferred Stock Account on the record date for such dividend or distribution multiplied by (b) the Dividend Equivalent for such dividend or distribution.

8.

Delivery of Shares.

(a)

The shares of the Common Stock in a Participant’s Deferred Stock Account with respect to any Stock Award for which a Deferral Election has been made (together with dividends attributable to such shares credited to such Deferred Stock Account) shall be delivered in accordance with this Paragraph 8 as soon as practicable after the applicable Delivery Date.  Except with respect to a Deferral Election pursuant to Paragraph 6 hereof, or other agreement between the parties, such shares shall be delivered at one time; provided that, if the number of shares so delivered includes a fractional share, such number shall be rounded to the nearest whole number of shares.  If the Participant has in effect a Deferral Election pursuant to Paragraph 6 hereof, then such shares shall be delivered in five equal annual installments (together with dividends attributable to such shares credited to such Deferred Stock Account), with the first such installment being delivered on the first anniversary of the Delivery Date; provided that, if in order to equalize such installments, fractional shares would have to be delivered, such installments shall be adjusted by rounding to the nearest whole share.  If any such shares are to be delivered after the Participant has died or becomes legally incompetent, they shall be delivered to the Participant’s estate or legal guardian, as the case may be, in accordance with the foregoing; provided that, if the Participant dies with a Deferral Election pursuant to Paragraph 6 hereof in effect, the Committee shall deliver all remaining undelivered shares to the Participant’s estate immediately.  References to a Participant in this Plan shall be deemed to refer to the Participant’s estate or legal guardian, where appropriate.

(b)

The Company may, but shall not be required to, create a grantor trust or utilize an existing grantor trust (in either case, the “Trust”) to assist it in accumulating the shares of the Common Stock needed to fulfill its obligations under this Paragraph 8.  However, Participants shall have no beneficial or other interest in the Trust and the assets thereof, and their rights under this Plan shall be as general creditors of the Company, unaffected by the existence or nonexistence of the Trust, except that deliveries of Stock Awards to Participants from the Trust shall, to the extent thereof, be treated as satisfying the Company’s obligations under this Paragraph 8.

9.

Share Certificates; Voting and Other Rights.  The shares shall be deposited electronicallin the Participant’s account or the certificates for shares shall be delivered to a Participant pursuant to Paragraph 8 above shall be issued in the name of the Participant, and from and after the date of such issuance the Participant shall be entitled to all rights of a stockholder with respect to the Common Stock for all such shares issued in his name, including the right to vote the shares, and the Participant shall receive all dividends and other distributions paid or made with respect thereto.

10.

General Restrictions.

(a)

Notwithstanding any other provision of this Plan or agreements made pursuant thereto, the Company shall not be required to issue or deliver shares or certificate or certificates for shares of the Common Stock under this Plan prior to fulfillment of all of the following conditions:

(i)

Listing or approval for listing upon official notice of issuance of such shares on the New York Stock Exchange, Inc., the NASDAQ, the OTC Market, or such other securities exchange as may at the time be a market for the Common Stock;

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(ii)

Any registration or other qualification of such shares under any state or federal law or regulation, or the maintaining in effect of any such registration or other qualification which the Committee shall, upon the advice of counsel, deem necessary or advisable; and

(iii)

Obtaining any other consent, approval, or permit from any state or federal governmental agency which the Committee shall, after receiving the advice of counsel, determine to be necessary or advisable.

(b)

Nothing contained in this Plan shall prevent the Company from adopting other or additional compensation arrangements for the Participants.

11.

Shares Available.  Subject to Paragraph 12 below, the maximum number of shares of the Common Stock which may in the aggregate be paid as Stock Awards pursuant to this Plan is one million (1,000,000). Shares of the Common Stock issuable under this Plan may be taken from treasury shares of the Company from authorized but unissued shares or they may be purchased on the open market.

12.

Adjustments; Change of Control.

(a)

In the event that there is, at any time after the Board adopts this Plan, any change in corporate capitalization, such as a stock split, combination of shares, exchange of shares, warrants or rights offering to purchase the Common Stock at a price below its Fair Market Value, reclassification, or recapitalization, or a corporate transaction, such as any merger, consolidation, separation, including a spin-off, stock dividend, or other extraordinary distribution of stock or property of the Company, any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company (each of the foregoing a “Transaction”), in each case other than any such Transaction which constitutes a Change of Control (as defined below), (i) the Deferred Stock Accounts shall be credited with the amount and kind of shares or other property which would have been received by a holder of the number of shares of the Common Stock held in such Deferred Stock Account had such shares of the Common Stock been outstanding as of the effectiveness of any such Transaction, (ii) the number and kind of shares or other property subject to this Plan shall likewise be appropriately adjusted to reflect the effectiveness of any such Transaction, and (iii) the Committee shall appropriately adjust any other relevant provisions of this Plan and any such modification by the Committee shall be binding and conclusive on all persons.

(b)

If the shares of the Common Stock credited to the Deferred Stock Accounts are converted pursuant to Paragraph 12(a) into another form of property, references in this Plan to the Common Stock shall be deemed, where appropriate, to refer to such other form of property, with such other modifications as may be required for this Plan to operate in accordance with its purposes.  Without limiting the generality of the foregoing, references to delivery of certificates for shares of the Common Stock shall be deemed to refer to delivery of cash and the incidents of ownership of any other property held in the Deferred Stock Accounts.

(c)

In lieu of the adjustment contemplated by Paragraph 12(a), in the event of a Change of Control, the following shall occur on the date of the Change of Control (i) the shares of the Common Stock held in each Participant’s Deferred Stock Account shall be deemed to be issued and outstanding as of the Change of Control; (ii) the Company shall forthwith deliver to each Participant who has a Deferred Stock Account all of the shares of the Common Stock or any other property held in such Participant’s Deferred Stock Account; and (iii) this Plan shall be terminated.

(d)

For purposes of this Plan, Change of Control shall mean any of the following events:

(i)

The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 80 percent or more of either (1) the then outstanding shares of the Common Stock of the Company (the “Outstanding Company Common Stock”), or (2) the combined voting power of then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control (A) any acquisition directly from 

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the Company (excluding an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company), (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following such reorganization, merger or consolidation, the conditions described in clauses (A), (B) and (C) of paragraph (iii) of this Paragraph 12(d) are satisfied; or

(ii)

Individuals who, as of the date hereof, constitute the Board of the Company (as of the date hereof, “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(iii)

Approval by the stockholders of the Company of a reorganization, merger, binding share exchange or consolidation, unless, following such reorganization, merger, binding share exchange or consolidation (A) more than 60 percent of, respectively, then outstanding shares of common stock of the corporation resulting from such reorganization, merger, binding share exchange or consolidation and the combined voting power of then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such reorganization, merger, binding share exchange or consolidation in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, binding share exchange or consolidation, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding the Company, any employee benefit plan (or related trust) of the Company or such corporation resulting from such reorganization, merger, binding share exchange or consolidation and any Person beneficially owning, immediately prior to such reorganization, merger, binding share exchange or consolidation, directly or indirectly, 20 percent or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, 20 percent or more of, respectively, then outstanding shares of common stock of the corporation resulting from such reorganization, merger, binding share exchange or consolidation or the combined voting power of then outstanding voting securities of such corporation entitled to vote generally in the election of directors, and (C) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger, binding share exchange or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger, binding share exchange or consolidation; or

(iv)

Approval by the stockholders of the Company of (1) a complete liquidation or dissolution of the Company, or (2) the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following such sale or other disposition, (A) more than 60 percent of, respectively, then outstanding shares of common stock of such corporation and the combined voting power of then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding the Company and any employee benefit plan (or related trust) of the Company or such corporation and any Person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, 20 percent or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, 20 percent or more of, respectively, then outstanding shares of common stock of such corporation and the combined voting power of then outstanding voting securities of such corporation entitled to vote generally in the election of directors, and (C) at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company.

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13.

Administration; Amendment and Termination.

(a)

The Plan shall be administered by the Board or a Compensation Committee (the “Committee”) of, or appointed by, the Board of Directors of the Company (the “Board”).  The Committee shall select one of its members as Chairman and shall act by vote of a majority of a quorum, or by unanimous written consent.  A majority of its members shall constitute a quorum.  The Committee shall be governed by the provisions of the Company’s Bylaws and of Nevada law applicable to the Board, except as otherwise provided herein or determined by the Board.  The Committee shall have full and complete authority, in its discretion, but subject to the express provisions of this Plan to administer all aspects of the Plan.  All interpretations and constructions of this Plan by the Committee, and all of its actions hereunder, shall be binding and conclusive on all persons for all purposes.

(b)

The Board may from time to time make such amendments to this Plan, including to preserve or come within any exemption from liability under Section 16(b) of the Exchange Act, as it may deem proper and in the best interest of the Company without further approval of the Company’s stockholders, provided that, to the extent required under Nevada law or to qualify transactions under this Plan for exemption under Rule 16b-3 promulgated under the Exchange Act, no amendment to this Plan shall be adopted without further approval of the Company’s stockholders and, provided, further, that if and to the extent required for this Plan to comply with Rule 16b-3 promulgated under the Exchange Act, no amendment to this Plan shall be made more than once in any six month period that would change the amount, price or timing of the grants of the Common Stock hereunder other than to comport with changes in the Code, the Employee Retirement Income Security Act of 1974, as amended, or the regulations thereunder.  The Board may terminate this Plan at any time by a vote of a majority of the members thereof.

14.

Term of Plan.  No shares of the Common Stock shall be issued, unless and until the Directors of the Company have approved this Plan and all other legal requirements have been met.  This Plan was adopted by the Board effective December 28, 2018 and shall expire on December 31, 2019.

15.

Governing Law.  This Plan and all actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Nevada.

16.

Information to Shareholders.  The Company shall furnish to each of its stockholders financial statements of the Company at least annually.

17.

Miscellaneous.

(a)

Nothing in this Plan shall be deemed to create any obligation on the part of the Board to nominate any Director for reelection by the Company’s stockholders or to limit the rights of the stockholders to remove any Director.

(b)

The Company shall have the right to require, prior to the issuance or delivery of any shares of the Common Stock pursuant to this Plan, that a Participant make arrangements satisfactory to the Committee for the withholding of any taxes required by law to be withheld with respect to the issuance or delivery of such shares, including, without limitation, by the withholding of shares that would otherwise be so issued or delivered, by withholding from any other payment due to the Participant, or by a cash payment to the Company by the Participant.

IN WITNESS WHEREOF, this Plan has been executed effective as of December 26, 2018.

 GALAXY NEXT GENERATION, INC. 

By:/s/Gary LeCroy

        Gary LeCroy, Chief Executive Officer

6EXHIBIT
10.1

SEPARATION
AGREEMENT AND RELEASE

This
Separation Agreement and
Release ("Agreement") is entered
into by and
between David Thompson, an individual,
(hereinafter referred to as "Employee")
and Diego Pellicer Worldwide,
Inc., a Delaware corporation (hereinafter
referred to as
"DIEGO” or the "Company'',
or "Releasees"). "DIEGO" or
"Company'' as used at
all times in this Agreement,
refers to DIEGO's parent,
subsidiary, affiliated, related, successor or predecessor companies
or divisions, past or present
shareholders, directors, officers, employees, attorneys,
and agents of DIEGO. "Employee"
as used at all
times in this
Agreement, refers to David Thompson
and his assigns,
heirs, executors, administrators, agents,
successors, and legal representatives.
Employee and DIEGO collectively will
be hereinafter referred to as "the
Parties." 

BACKGROUND:

WHEREAS,
a change
in the business
and organizational requirements of
DJEGO has resulted
in a change of
DIEGO's employment requirements of Employee
and will result in Employee's separation
from DIEGO;

WHEREAS,
Employee's last day of employment with DIEGO was October 31, 2018 (the "Termination Date");

NOW,
THEREFORE, in consideration
of the
mutual covenants, agreements and
promises contained herein and other
good and valuable consideration,
the adequacy of
which is hereby acknowledged,
the Parties agree as
follows:

AGREEMENT

1.
  Separation Pay
and Employee Obligations.

Separation
Pay: In
accordance with DIEGO's
policies, and in consideration of
Employee's acceptance of this
Agreement, including the
release and waiver of claims
in Paragraphs 2,
4 and 11 below, DIEGO
shall provide to Employee the
following separation pay, subject
to the execution and
non-revocation of this Agreement:

(A)        
It is
the intention of
the Parties
that Employee receive
aggregate stock grants and
stock options that equal 7.5% of
the Company's outstanding common shares
as of February
1, 2019, less
the number of shares and stock
options previously issued to
Employee under his Employment
Agreement and this Agreement.
Accordingly, upon execution of this
Agreement, the Company will issue Employee
a restricted stock grant whose number
of restricted common shares
shall be equal to seven and one/half
(7.5%) percent of the outstanding common
shares, calculated as of the
close of business
on October 31,
2018 and less
all shares and stock
options issued to Employee
per adjustment made on February 1, 2018
(collectively, the "First
Stock  Grant'');

Thereafter,
DIEGO shall pay to Employee the following compensation:

(B)         no later than
March 1, 2019, the Company will issue Employee a
restricted stock grant whose number of
restricted common shares shall
equal to seven and one/half (7.5%) percent of the outstanding common shares, less
the First Stock Grant, calculated as of the close of business on February 1st, 2019
(the "Second Stock Grant");

    	 	1	 

     

    

 

(C)         
no later
than March 1, 2019,
the Company will
issue Employee a restricted stock grant
for 53,717 restricted common shares
due Employee from the October, 2017 conversion
of his outstanding
accrued fees: $31,263.15 accrued
and converted at 50% of
the trading price
of $0.0582, or $0.0291 per share = 1,074,335;
reduced to 53,717 shares by virtue of the 20 for 1 reverse stock split;

(D)        
no later
than March
1, 2019,
the Company
will issue Employee a
restricted stock grant for 122,934
restricted common shares due
based upon the conversion of
Employee's February 1, 2017,
five (5%) percent stock options:
49,173,622 outstanding common shares
at February 1,
2017 X 0.05 = 2,458,681
shares, reduced to
122,934 shares by virtue of
the 20 for 1 reverse
stock split; and

(E)          
the Company
will pay
or cause to
be paid to Employee
an aggregate cash
sum of Two
Hundred Six Thousand
Two Hundred Fifty ($206,250.00)
dollars, U.S. (the
"Payout Amount"), payable to
Employee in the
monthly payment amounts set forth below,
commencing February 1, 2019,
and continuing each
successive monthly period thereafter until
the Payout Amount is fully
paid. Each monthly payment will
be based upon the monthly gross
sales of all
products sold by Royal
Asset Management, LLC, ("RAM),
DIEGO or any
subsequent tenant, sub- lessee,
subsidiary or affiliate of DIEGO
(each an "Operator") through any
retail store located at
2949 W. Alameda
Avenue, Denver, Colorado 80219
(the "Alameda Store"): 

	Alameda
    Store Monthly
    Gross Sales
    Range	Amount
    of Payment	Split
                                   of
                                   Payment
                                   

Between                                    Employee 

and
                                   Company
	Payment
                                         to Employee
	Payment
    to
    Company
	$700,000
    to	 	 	 	 
	$774,999:	$6,300	50%/50%	$3,150	$3,150
	 	 	 	 	 
	Alameda
    Store	Amount
    of	Split
    of Payment	Payment	Payment
	Monthly
    Gross Sales Range	Payment	Between
                                   Employee

                                    and
                                   Company
	to

                                                                                Employee
	to

                                                          Company

	$775,000,
    Plus	$17,936.19	25%175%	$4,484.05	$13,452.15

 

The
above monthly
payments to Employee against the Payout
Amount shall be made based upon
the receipt by the Company
of the monthly premium rent payments
received from RAM or any
other Operator of the Alameda Store
and shall be
paid to Employee out
of such funds received on
or before the fifteenth
(151h) day of each
month commencing February 15, 2019,
and shall be accompanied
by a Company Certification as
to the gross
monthly sales of the
Alameda Store. In
the event that (i)
such monthly rent payment amounts are
received by the Company
from RAM or any other Operator
of the Alameda Store
but not paid to Employee, such non-payment
shall be deemed
an "Event of Default"
under Section 16, below
if not cured within the
30-day period described in such
Section 16, or
(ii) the Payout Amount has
not been paid to Employee
in full by
the earlier of February 1,
2026,  or the
date that t the Company receives an
equity investment of no
less than $5
million, U.S., Employee
shall be entitled
to file the
Stipulation, attached as Exhibit
A hereto, in any
court of competent
jurisdiction.

    	 	2	 

     

    

 

Notwithstanding
any closure of the Alameda Store
or any failure on
the part of RAM
or any other Operator of the Alameda
Store to make timely rent payments
to the Company, the
Payout Amount (less any portion thereof
previously paid to Employee under the
terms of this
Agreement) shall be
due and payable on
the earlier of (i)
February 1, 2026; or (ii)
the date on which the
Company receives an equity investment of
no less than $5 million.

Employee
Obligations. Employee
shall take
all necessary
actions and
measures to
transfer ownership and
control to Chris
Strachan, the
Company's Chief Financial
Officer, of
the following
items:

		A.	DropBox
                                         Folders:

 

20170430

20170930 Qtr

Diego 20171231 Qtr

Diego 20180331

Diego Files

Permanent File

		B.	The
                                         "Master
                                         Administrator" for Quickbooks

2.
  Employee's Release.
Employee releases and forever
waives as against DIEGO
any and all claims
of any and every kind,
nature and character, whether known or
unknown, suspected or
unsuspected, including any and
all claims for damages,
attorneys' fees and/or costs
which Employee may now have or
has ever had which arise in whole
or in part from
Employee's employment relationship with
DIEGO, the termination of
that employment relationship
and/or any other employment-related
dealings between Employee and
DIEGO that have occurred during
Employee's term of employment
with DIEGO, whether based on
tort, contract (express
or implied) or any federal,
state, or local
law, statute, or
regulation (the "Released Claims").
By way of example and not in
limitation of the
foregoing, Released Claims shall
include any and all claims, rights,
demands, and causes
of action for employment
discrimination or harassment on
the basis of race,
color, national origin, religion,
age, sex, disability, sexual orientation,
marital status, or
any other category protected by
federal, state, local or
common law, retaliation,
breach of any
agreement entered into
between the Parties,
including but not limited to, any and
all employment agreements
and any and all stock option agreements,
violation of the WARN Act, constructive
discharge of employment,
wrongful termination, breach of the covenant
of good faith
and fair dealing, fraud, misrepresentation, defamation,
intentional or negligent infliction of
emotional distress, failure to
pay wages, commissions, benefits,
vacation pay, severance or other
compensation of any sort, failure
to reimburse expenses, and/or
violation of any and all
statutes, rules, regulations or
ordinances whether federal, state,
or local. Notwithstanding the
foregoing, this Agreement does not
waive rights or claims
(1) that may arise after the
date the Agreement is executed
by Employee, or (2) which
are prohibited from release as
a matter of law, and it
does not restrict or limit
Employee's right to challenge3 the
validity of this Agreement.
Nor does this Agreement waive
rights or claims under
federal or state
law that Employee
cannot waive by private agreement, such
as a right
of indemnification. This
agreement also does
not release: (1)
any obligations arising
out of this Agreement, (2) any
obligation DIEGO or
any insurer or
other person or
entity may have
to indemnify Employee
pursuant to the
articles and bylaws
of DIEGO, any written
agreement with DIEGO, any
applicable document or insurance
policy' or applicable  law, (3) Employee's
rights in and to any
retirement plan benefits (e.g.
401(k) plan benefits) pursuant to
the terms of
the Plan(s), and
(4) Employee's right in
and to Employee's
equity in DIEGO, including without
limitation, Employee's right to exercise,
hold and/or sell Employee's
DIEGO stock options, restricted
stock or stock.
Additionally, nothing in
this Agreement precludes
Employee from filing
a charge or
complaint with or participating in any
investigation or proceeding
before any federal or state
agency, including the Equal
Employment Opportunity Commission.
However, while Employee
may f ile
a charge
and participate
in any proceeding
conducted by
a state
or federal
agency, by
signing this
Agreement, Employee
waives Employee's
right to
bring a lawsuit
against Releasees
and waives Employee's
right to any
individual monetary
recovery in
any action
or lawsuit
initiated by a federal
or state
agency, such as
the Equal
Employment Opportunity
Commission.

    	 	3	 

     

    

 

		3.	DIEGO's
                                         Release;
                                         Indemnification.

		(a)	DIEGO
                                         hereby
                                         waives and releases Employee
                                         from any and all
                                         claims that may
                                         exist against
                                         Employee, whether such claims
                                         are known or unknown, suspected or
                                         unsuspected, including any
                                         and all claims for damages,
                                         attorneys' fees and/or costs
                                         which DIEGO may now have
                                         or has ever
                                         had, whether based
                                         on tort,
                                         contract (express
                                         or implied) or any
                                         federal, state, or local
                                         law, statute, or regulation. However,
                                         the forgoing
                                         waiver and release of
                                         claims excludes, and
                                         DIEGO does
                                         not waive or
                                         release, any
                                         claims arising
                                         out of
                                         Employee's breach of
                                         the terms
                                         contained in this
                                          Agreement.

		(b)	In
                                         the
                                         event
                                         that Employee
                                         is
                                         made
                                         a
                                         party to or
                                         threatened to be
                                         made a party to
                                         any action, suit, or
                                         proceeding, whether civil,
                                         criminal, administrative,
                                         or investigative (a "Proceeding"),
                                         other than any
                                         Proceeding initiated by
                                         Employee or
                                         the Company related to
                                         any contest
                                         or dispute between Employee
                                         and the Company or
                                         any of
                                         its affiliates
                                         with respect
                                         to this
                                         Agreement, by
                                         reason of the
                                         fact that Employee
                                         was a director
                                         or officer
                                         of the
                                         Company or any affiliate
                                         of the
                                         Company, Employee
                                         shall be
                                         indemnified and
                                         held harmless
                                         by the Company
                                         to the maximum extent permitted under
                                         applicable law
                                         and the
                                         Company's Certificate of
                                         Incorporation from
                                         and against any
                                         liabilities, costs, claims,
                                         and expenses, including all
                                         costs and expenses
                                         incurred in
                                         defense of
                                         any Proceeding
                                         (including attorneys' fees).
                                         Costs and expenses
                                         incurred by
                                         Employee in
                                         defense of
                                         such Proceeding (including
                                         attorneys' fees) shall
                                         be paid by
                                         the Company
                                         in advance
                                         of the
                                         final disposition of
                                         such litigation
                                         upon receipt by the Company
                                         of: (i)
                                         a written request for payment;
                                         (ii) appropriate
                                         documentation evidencing the incurrence,
                                         amount, and
                                         nature of
                                         the costs
                                         and expenses for which
                                         payment is being
                                         sought; and
                                         (iii) an
                                         undertaking adequate under applicable
                                         law made
                                         by or
                                         on behalf of Employee
                                         to repay
                                         the amounts so paid
                                         if it
                                         shall ultimately be
                                         determined that Employee is
                                         not entitled to be indemnified by the
                                         Company under
                                         this
                                         Agreement.

4.
  Waiver of
Unknown Claims. As
to those
matters being
released herein, excluding the obligations
and rights arising pursuant to
this Agreement, the Parties waive any
and all rights which they may have
under the provisions any Nevada or
Delaware statutes that imitate
or are similar to California
Civil Code §1542 which
provides:

A
GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT
TO EXIST IN
HIS FAVOR AT
THE TIME OF
EXECUTING THE RELEASE,
WHICH IF KNOWN
TO HIM MUST HAVE
MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR. 

5         .
Nondisclosure/Nonsolicitation. During
the course of
Employee's employment with DIEGO,
Employee has had access
to or been exposed to
certain confidential, proprietary and trade
secret information. Confidential
information includes, but is not
limited to, business development strategy,
designs, mask works,
plans, proposals, marketing and sales
data, financial information,
cost and pricing information,
customer lists, trade secrets, M
& A data, including any past or
upcoming deals, personnel
information, policies and procedures,
organizational charts, telephone directories,
and concepts and ideas related to past,
present and future business of
DIEGO which have not been publicly released by duly
authorized representatives of DIEGO ("Confidential
Information"). Employee agrees that he
will not use for himself or others or
disclose or divulge to others
any trade secrets or
any other Confidential Information of
DIEGO. Employee agrees
that he will
return to DIEGO all
Company documents, including
but not limited to reports, manuals,
journals, log books, correspondence,
customer lists, computer programs
and all of the
materials and all
copies thereof relating in any way
to DIEGO's business
or in any way obtained by Employee during
the course of Employee's employment
with DIEGO. Employee agrees
that for a period of twelve
(12) months immediately following
the Termination Date,
Employee shall not either directly or
indirectly solicit, induce, recruit
or encourage any of the
Company's employees or consultants to
leave their employment,
or attempt to do so,
either for himself or any
other person or entity. Employee
further acknowledges the terms of
his Employee Confidentiality and
Invention Agreement with DIEGO
("Confidentiality Agreement") shall remain in
effect after the
Termination Date. Nothing in
this Agreement shall
be construed to prevent
disclosure of Confidential Information
as may be required by
applicable law or
regulation, of pursuant to the valid
order of a court of competent jurisdiction
or an authorized government agency,
provided that the
disclosure does not exceed
the extent of
disclosure required by such law, regulation,
or order.

6.
   Confidentiality.
Except for
DIEGO's
disclosure
obligations under applicable securities laws,
each
Party
agrees to keep in
confidence
the
terms
and
conditions
of
this Agreement.
The Parties hereto agree
that they will not,
without compulsion of legal
process, reveal directly or indirectly any of
the terms of this
Agreement to any person or entity
except in confidence to
those individuals or entities
to whom the disclosure
is necessary to affect
the purposes of this Agreement,
including, but not limited to, spouses,
attorneys, tax preparers, accountants, banks
and other financial institutions
and government agencies which request
a copy of this
Agreement, provided, however, that
nothing in this Agreement is intended to
prohibit or restrict Employee (or
Employee's attorneys) from responding
to an inquiry from, providing testimony
before, or initiating
communications directly with any federal
or state regulatory authority
or any self- regulatory
organization regarding this Agreement
or its underlying facts
or circumstances, provided Employee gives
prompt notice to the
Company of any such
judicial or administrative notice
or proceeding.

    	 	4	 

     

    

 

7.     
Non-Disparagement.
Employee and DIEGO
agree to respect the
reputation of the
other Party and to
not disparage the other Party. This
Section 7 does not in
any way restrict or
impede Employee from exercising protected rights,
to the extent that
such rights cannot be
waived by agreement or
from complying with any
applicable law or regulation or a valid
order of a court
of competent jurisdiction or
an authorized government agency,
provided that such compliance
does not exceed that required by the
law, regulation, or  order.

8.
   Successors and Assigns.
The Parties
to this
Agreement understand and agree
that this Agreement shall
be binding upon and shall inure
to the benefit of
the respective successors, assigns,
heirs, administrators, representatives and
transferees of the
Parties to this
Agreement.

9.
   Tax Considerations.
The Parties to this Agreement
understand and agree that Employee shall
accept and assume
full responsibility for any and all tax
consequences to Employee
resulting from any
payments made by DIEGO under this
Agreement. Employee warrants and
represents that Employee is
not relying upon any tax advice
from DIEGO or DIEGO's counsel concerning
the tax consequences of
the payment specified in this
Agreement.

10.
 Covenant Not
to Sue. Except
for the enforcement of obligations
arising out of this
Agreement and the attached Stipulation
and rights carved
out of the release
contained in this Agreement, Employee
and Employee's respective agents, employees,
representatives, assigns, attorneys, spouses,
and each of
them agree not to
sue DIEGO, or
any of the past or
present agents, employees, representatives, officers, directors,
shareholders or attorneys of DIEGO, or
any other past or present representative
of any kind or
in any capacity of DIEGO, on
account of any
Released Claims.

11. 
  Waiver of
Age Discrimination Claims. Employee
understands and agrees that by
entering into this
Agreement, Employee: (1)
is knowingly and voluntarily waiving
any rights or
claims he might
otherwise have against DIEGO based on
age discrimination or harassment under
the Age Discrimination in Employment
Act, as amended by the Older
Workers Benefit Protection Act; (2)
has received consideration beyond that
to which he
was previously entitled;
(3) was advised and
hereby is advised
in writing to
consider the terms
of this Agreement
and consult with
an attorney of
Employee's choice prior
to signing this
Agreement; (4) has carefully read and
fully understands all
of the provisions
of this Agreement; (5)
has been offered
the opportunity of
a full twenty-one (21)
days from the Effective
Date of this Agreement
within which to consider its terms
before signing it, and that if
Employee has not
taken that full time period
that Employee has
failed to do
so knowingly and voluntarily,
expressly waives this
time period, and will
not assert the
invalidity of this
Agreement or any
portion thereof on this
basis; (6) has
a full seven (7)
days following the execution
of this Agreement to
revoke this Agreement ("Revocation
Period") by written notice to
the General Counsel, and
has been and
hereby is advised
in writing that this Agreement, all of
its terms, and
all of the
obligations of the
Company contained herein, shall not become
effective or enforceable until the Revocation
Period has expired; and
(7) has been
informed that nothing shall
prevent or preclude
Employee from challenging or seeking
a determination in good
faith of the validity
of this waiver
under the ADEA, nor will
it impose any
condition precedent, penalties or costs
from doing so, unless
specifically authorized by federal law.

 

    	 	5	 

     

    

 

12. 
Post-Employment Reference
Requests. Employee
shall direct
all requests for references
from prospective employers to the
DIEGO Human Resources Department. In
such event, DIEGO will
provide only Employee's dates of
employment and title.

13.
No Admission
of Liability. Nothing
contained herein
shall constitute an
admission of liability on the
part of either Party, which
liability either Party expressly denies.

14.
Code Section 409A.
The payments
and benefits described in Section
1 are not intended to
constitute "nonqualified deferred
compensation" within the meaning
of Section 409A
of the Code.
To the extent applicable,
this Agreement shall be interpreted in
accordance with the applicable
requirements of, and exemptions
from, Section 409A of the
Code and treasury regulations and
other interpretive guidance issued thereunder.
If DIEGO and Employee
determine that any compensation or benefits
payable under this Agreement may be
or become subject to
Section 409A of the Code, DIEGO
and Employee agree to
amend this Agreement or adopt
other policies or
procedures (including amendments, policies
and procedures with retroactive effect),
or take such other
actions as DIEGO
and Employee deem
necessary or appropriate to (1)
exempt the compensation
and benefits payable
under this Agreement from Section
409A of the
Code and/or preserve
the intended tax
treatment of the
compensation and benefits provided
with respect to this Agreement,
or (2) comply with the requirements
of Section 409A
of the Code and related treasury
guidance; provided, however,
that this section does not create
an obligation on the
part of DIEGO to
make any such  amendment.

15.
Choice of
Law. This Agreement
is made and entered into in
the State of Delaware
and shall in
all respects be governed
by the laws of
the State of
Delaware without regard to choice-of-law
provisions. Any action
or proceeding by either of the
Parties to enforce this
Agreement may be brought in
any state or federal
court located in the
State of Nevada,
County of Washoe
to whose personal
jurisdiction the Parties irrevocably
consent and waive any defense
that the initiation
or maintenance of any action
or proceeding in such
venue is inconvenient in such
forum.

16. 
Events of
Default. If
any Party
to this
Agreement breaches
any promise made or
the terms contained
herein, such breach
shall be deemed
a default hereunder and the
other party shall notify the
defaulting Party of such
default in writing (a "Notice
of Default"). The alleged
defaulting Party shall have thirty
(30) days from the
date of receipt of such
Notice of Default within which
to cure any
such default. In the
event that it shall
be necessary for any Party to institute
legal action to enforce
any of the terms
and conditions or provisions contained
herein, or for any
breach thereof, the prevailing
party in such actions
shall be entitled to
costs and reasonable attorney's
fees.

17.
Integration. This
Agreement and the
attached Stipulation set forth the entire
Agreement between the Parties
hereto and fully supersedes any and all prior agreements
or understandings between the Parties
pertaining to any subject matter
contained in this
Agreement. Any amendments or
modifications to this Agreement must be
made in writing and signed by all parties.

18.
Severability. If
any provision
of this Agreement is
found to be unenforceable,
those provisions shall be considered
severable, and the remaining provisions
shall remain in effect.

19.
Mitigation. Employee
shall have
no duty
to mitigate a breach
of this Agreement
by Company.

    	 	6	 

     

    

 

20.  Acknowledgment of Understanding. The signatories have carefully read
this entire Agreement and each has had the opportunity to have their independent Counsel review
and advise on the
legal consequences of this Agreement. The signatories understand
the final and  binding
effect of this Agreement. The only promises made
to any signatory about this Agreement are contained in this Agreement. All signatories
are signing this Agreement knowingly and voluntarily.

21. 
Counterparts. This
Agreement may
be executed
by facsimile
signature or by
signing, scanning
and emailing,
and in multiple counterparts,
each of which
shall be an original, but
all of which
together shall constitute
one and the same
agreement. A duplicate copy
of a signature shall be deemed
an  original.

 ______________________________________________________________________________________________

_______________________________________________________________________________________________ 

  

 

    	 	7	 

     

    

 

JUSTICE
OF THE PEACE COURT OF THE STATE OF NEVADA

IN AND FOR WASHOE COUNTY

 

 

PLAINTIFF:                                           vs                                                                 DEFENDANT:

DAVID
THOMPSON                                                                           DIEGO
PELLCER WORLDWIDE, INC.

 

 

STIPULATION

Check
one:

0
The parties have stipulated to the agreement below. (Continue on additionalpage (s), ifneeded); or

XO
The parties have stipulated to the judgment below. (Continue on additionalpage (s), ifneeded).

The
parties have agreed
that in the event of a default
by Defendant, Diego Pellicer Worldwide,
Inc. under the terms of
that certain Separation Agreement and Release, dated
January _, 2019, Plaintiff David Thompson
may file a judgement against Defendant in this
Court for the amount of Two Hundred Six Thousand
Two Hundred Fifty ($206,250.00) dollars, less
any amounts previously
paid to Plaintiff
by Defendant under
the terms thereof.

 

 ______________________________________________________________________________________________

_______________________________________________________________________________________________

 

 

 

    	 	8

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