Document:

nvee20150630_10q.htm

Exhibit 10.7

 

FIRST AMENDMENT

EMPLOYMENT AGREEMENT

 

THIS FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT (the “Amendment”) is made and entered into on this 11th day of August, 2015, by and between NV5, Inc., a Delaware corporation (the “Company”), and Michael Rama (hereinafter called the “Executive”).

 

RECITALS

 

A.    The Company and the Executive entered into an Employment Agreement dated January 25, 2012 (the “Initial Employment Agreement”). 

 

B.     The Company intends to amend the Initial Employment Agreement, as set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties agree as follows:

 

1.     Recitals; Definitions. The foregoing recitals are incorporated herein by reference. Capitalized terms not defined herein shall have the meaning set forth in the Initial Employment Agreement. Any references to the “Agreement” shall mean the Initial Employment Agreement and this First Amendment.

 

2.     Amendments. 

 

	 	
a.
	
Section 5.5 of the Agreement is hereby amended and restated to read as follows:

 

“Payments Following Termination. Upon termination of his employment under this Agreement, Company shall only be required to pay to Executive such portion of the Base Salary as shall have accrued and remain unpaid through the effective date of termination, and shall have no further obligation whatsoever to Executive, other than reimbursement of previously incurred expenses which are appropriately reimbursable under Company’s policies regarding expense reimbursement. Such amounts shall be paid no later than thirty (30) days after the termination of his employment. The foregoing notwithstanding, in the event termination of employment is due to the death of Executive, then Company shall continue to pay to Executive’s estate his Base Salary for the period through the end of the calendar month in which such death occurs. Such amounts shall be paid no later than thirty (30) days after his death.” 

 

 

1

 

 

	 	
a.
	
A new Section 8.14 is hereby added and shall read as follow:

 

“Change in Control of the Company. 

 

8.14.1      In the event that a Change in Control (as defined in Section 8.14.3) of the Company shall occur during the Term of employment, the Company shall continue to employ Executive for a period of at least one (1) year after such Change in Control. Notwithstanding the foregoing, in the event that the Company terminates Executive’s employment with the Company for any reason at any time after a Change in Control, Executive shall be entitled to the following:

 

	 	
8.14.1.1
	
any unpaid Base Salary through the effective date of termination of employment, if applicable, which shall be paid no later than thirty (30) days after such termination; 

 

	 	
8.14.1.2
	
an amount that equals (i) one (1) year of Executive’s Base Salary and accrued performance bonus, plus (ii) any unused vacation pay to be provided to the Executive, for the year immediately preceding the year in which his employment terminates, which shall be paid no later than thirty (30) days after such termination; and

 

	 	
8.14.1.3
	
to the extent permitted under applicable law, if Executive timely and properly elects continuation coverage under COBRA, the Company shall pay the monthly COBRA premium for the Executive until the earliest of: (i) the date the Executive is no longer eligible to receive COBRA continuation coverage; and (ii) the date which is one (1) year after such termination.

 

8.14.2      Further, if a Change in Control occurs during the Term, then notwithstanding the terms of any equity incentive plan or award agreements as applicable, all outstanding equity-based compensation awards shall become fully vested and the restrictions thereon shall lapse upon a Change in Control. 

 

 

2

 

 

8.14.3      For purposes of this Agreement, the term “Change in Control” shall mean:

 

	 	
8.14.3.1
	
Approval by the shareholders of the Company of (x) a reorganization, merger, consolidation or other form of corporate transaction or series of transactions, in each case, with respect to which persons who were the shareholders of the Company immediately prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company’s then outstanding voting securities, in substantially the same proportions as their ownership immediately prior to such reorganization, merger, consolidation or other transaction, or (y) a liquidation or dissolution of the Company or (z) the sale of all or substantially all of the assets of the Company (unless such reorganization, merger, consolidation or other corporate transaction, liquidation, dissolution or sale is subsequently abandoned); or

 

	 	
8.14.3.2
	
the acquisition in a transaction or series of related transactions (other than from the Company) by any person, entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act, of more than 50% of either the then outstanding shares of the Company’s Common Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors (hereinafter referred to as the ownership of a “Controlling Interest”) excluding, for this purpose, any acquisitions by (1) the Company or its Subsidiaries, (2) any person, entity or “group” that as of the Commencement Date of this Agreement owns beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of a Controlling Interest or (3) any employee benefit plan of the Company or its Subsidiaries.

 

8.14.4      Notwithstanding the foregoing, the provisions of this Section 8.14 shall only apply if (i) the payments to be made hereunder are not subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or (ii) any such Change in Control would also constitute a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, within the meaning of Treas. Reg. Section 1.409A-3(i)(5).”

 

 

3

 

 

	 	
b.
	
A new Section 8.15 is hereby added and shall read as follow:

 

“Section 409A Compliance.

 

8.15.1      General. It is the intention of both the Company and the Executive that the benefits and rights to which the Executive is entitled pursuant to this Agreement comply with Code Section 409A, to the extent that the requirements of Code Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If the Executive or the Company believes, at any time, that any such benefit or right that is subject to Code Section 409A does not so comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits and rights such that they comply with Code Section 409A (with the most limited possible economic effect on the Executive and on the Company).

 

8.15.2      Distributions on Account of Separation from Service. To the extent required to comply with Code Section 409A, any payment or benefit required to be paid under this Agreement on account of termination of the Executive’s employment (or any other similar term) shall be made only in connection with a “separation from service” with respect to the Executive within the meaning of Code Section 409A. 

 

8.15.3      No Acceleration of Payments. Neither the Company nor the Executive, individually or in combination, may accelerate any payment or benefit that is subject to Code Section 409A, except in compliance with Code Section 409A and the provisions of this Agreement, and no amount that is subject to Code Section 409A shall be paid prior to the earliest date on which it may be paid without violating Code Section 409A.

 

8.15.4      Six Month Delay for Specified Employees. In the event that the Executive is a “specified employee” (as described in Code Section 409A), and any payment or benefit payable pursuant to this Agreement constitutes deferred compensation under Code Section 409A, then the Company and the Executive shall cooperate in good faith to undertake any actions that would cause such payment or benefit not to constitute deferred compensation under Code Section 409A. In the event that, following such efforts, the Company determines (after consultation with its counsel) that such payment or benefit is still subject to the six-month delay requirement described in Code Section 409A(2)(b) in order for such payment or benefit to comply with the requirements of Code Section 409A, then no such payment or benefit shall be made before the date that is six months after the Executive’s “separation from service” (as described in Code Section 409A) (or, if earlier, the date of the Executive’s death). Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period.

 

8.15.5      Treatment of Each Installment as a Separate Payment. For purposes of applying the provisions of Code Section 409A to this Agreement, each separately identified amount to which the Executive is entitled under this Agreement shall be treated as a separate payment. In addition, to the extent permissible under Code Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

 

4

 

 

8.15.6      Reimbursements and In-Kind Benefits. To the extent that reimbursements and in-kind benefits provided under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefits shall meet the following requirements: (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year; (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred; and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.”

 

3.     Effect of Amendment. All the terms and conditions of the Agreement affected by the terms of this First Amendment shall remain in full force and effect between the Parties.

 

4.     Entire Agreement. The Initial Employment Agreement, together with this First Amendment, constitutes and represents the entire agreement between the Parties hereto and supersedes any prior understandings or agreements, written or verbal, between the parties hereto respecting the subject matter herein. The Agreement may be amended, supplemented, modified or discharged only upon an agreement in writing executed by all of the parties hereto.

 

5.     Severability. Whenever possible, each provision of this First Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this First Amendment is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this First Amendment or any action in any other jurisdiction, but this First Amendment shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

6.     Counterparts. This First Amendment may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. Signatures presented by facsimile transmission shall be deemed effective at the time of transmission and shall be replaced by original signatures as soon thereafter as practicable.

 

 

[Remainder of page intentionally left blank]

 

 

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

 

 

 

	
Company:  

	
 
	
 

	
NV5, Inc.  

	
 
	
 

	
 
	
 

	
 
	
 

	
By:
	
     /s/   Dickerson Wright

	
Name: Dickerson Wright  

	
Title: Chief Executive Officer  

	
 
	
 

	
 
	
 

	
 
	
 

	
Executive:  

	
 
	
 

	
 
	
 

	By:	
     /s/   Michael Rama

	Name: Michael Rama

 

  

 

6EX-10.01

 Exhibit 10.01 

EXECUTIVE EMPLOYMENT AGREEMENT 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (hereinafter, “Agreement”) is made and entered into effective as of May 1, 2015
(“Effective Date”), by and between MEDBOX, INC., a Nevada corporation qualified to do business in and with its principal office in Los Angeles, California (hereinafter, the “Company”), and JEFF GOH, a California- domiciled
individual (hereinafter, “Executive” or “you”), as follows: 
 1. Employment. 

During the Term of this Agreement (as defined in Section 3 below), the Company shall employ Executive, and Executive shall exclusively
serve the Company as its Chief Operating Officer, subject to Section 4 hereof. 
 2. Place of Employment. 

Executive shall be afforded an office and support services commensurate with Executive’s position. Executive’s office will be
located in Los Angeles, California, or at such other location as may be determined by the Company’s Board of Directors in its sole discretion. 

3. “At Will” Employment. 

Executive’s employment hereunder will be on an “at-will” basis. Either Executive or the Company may terminate Executive’s
employment at any time, with or without cause or any other reason, with or without notice, subject to payment of any applicable severance pursuant to Section 9 of this Agreement. The “Term” of this Agreement shall commence on the
Effective Date, and shall expire when Executive’s “at will” employment is terminated as provided herein. 
 4. Duties and
Responsibilities. 
 Executive is employed exclusively to serve as the Company’s Chief Operating Officer. Executive shall provide
senior management services and shall perform such duties relating thereto as may be determined and assigned to Executive from time to time by the Company’s Board of Directors or by its President and Chief Executive Officer, to whom Executive
shall report. During the term of this Agreement, Executive shall faithfully and diligently devote his best efforts, knowledge and skill and shall devote substantially all of his working time (including regular business hours and as otherwise
reasonably necessary to fulfill his duties) and attention to the performance of his duties on behalf of the Company; provided, however, the Company hereby approves your (i) spending an average of four business days per month on non-competing
board and advisory activities and (ii) participating in monthly Vistage International meetings, so long as such time is scheduled reasonably in advance and does not conflict your duties hereunder or cause undue burden to the Company. 

5. Compensation. 
 5.1
Base Salary. During the Term of this Agreement, Executive shall be paid as compensation for all services to be rendered by him under this Agreement an annual base 

 
salary of three hundred thousand Dollars ($300,000), to be paid to Executive through the Company’s normal payroll, less all applicable federal, state and/or local taxes and other authorized
payroll deductions. Such base salary shall be subject to annual increases of from 5% to 7% as determined by the Board of Directors, based on performance and profitability. 

5.2 Bonuses. 

(a) Cash Bonus. Executive shall be eligible to receive an annual cash bonus of up to a maximum of one hundred fifty
thousand dollars ($150,000) per year, based on Executive’s achievement of mutually agreed upon annual goals. 
 (b)
RSU Bonus. Executive shall be eligible to receive an annual bonus of the Company’s restricted stock units (RSUs) up to a maximum value (as determined solely by the Board of Directors) of one hundred fifty thousand dollars ($150,000) per
year, based on Executive’s achievement of mutually agreed upon annual goals, which shall be fully vested upon grant. 

(c) Retention Bonus. Executive shall be entitled to receive a retention bonus of Company RSUs worth one hundred thousand
dollars ($100,000), valued and granted as of the Effective Date and each anniversary thereof, 25% of which will vest each quarter and in full on the one year anniversary of the applicable grant date. 

(d) Eligibility. In order to be eligible for any bonus under paragraphs (a), (b) or (c) of this
Section 5.2, Executive must be Actively Employed on the last business day of the employment period for which the bonus applies. For purposes of paragraphs (a) and (b) of this Section 5.2, the first employment period shall
terminate April 30, 2016 and each successive employment period shall end on the anniversary thereof, and any earned bonuses shall be paid within 30 days of the termination date of the relevant employment period. For the purposes of this
Agreement, “Actively Employed” means that you must be employed by the Company and must not have terminated this Agreement or given notice of your intent to terminate your employment and this Agreement. 

(e) RSU Conditions. Your entitlement to any RSUs hereunder shall be subject to any and all applicable terms and
conditions under the Company’s 2014 Equity Incentive Plan and related Restricted Stock Unit Award Agreements, which shall be on substantially similar terms and conditions as those that apply to similarly situated executive officers of the
Company. The grant to you of any RSUs by the Company may subject you to personal income tax. If, due to restrictive provisions contained in the RSU Documents, the RSUs would be considered unvested stock, you may elect alternative tax treatment under
Section 83b of the Internal Revenue Code. In order to make a Section 83b election, you must send a notice to the Internal Revenue Service within thirty (30) days after you receive the RSUs. You are advised to consult with your
personal financial and tax advisor prior to making any Section 83b election as to the advisability of the resulting tax treatment. 

  
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 5.3 Benefits; Insurance. Executive will be entitled to reimbursement for the full cost of
health insurance for you, your spouse and your children, a car allowance of $1000 per month, and 80% of the cost of Executive’s membership fees for Vistage International. In addition to the foregoing, the Executive shall be entitled to
participate in all other employee benefit plans, practices and programs maintained by the Company, as in effect from time to time, on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the
extent consistent with applicable law and the terms of the applicable employee benefit plans. 
 5.4 Expenses. The Company shall
reimburse Executive, in accordance with the Company’s policy, for all reasonable expenses properly incurred by Executive in connection with the performance of Executive’s duties, upon presentation of appropriate receipts and back up
documentation for such expenses. 
 5.5 Paid Time Off. Executive shall be entitled to a vacation benefit of three (3) weeks per
year for the first year of this Agreement, and four (4) weeks per year thereafter, and customary holiday and sick leave, in each case in accordance with Company policy. 

6. Conflict of Interest. 

Executive represents and warrants his execution and delivery of this Agreement, his performance of all the terms of this Agreement and his
work for the Company do not and will not (a) breach, violate or conflict with any non-competition, invention assignment, or proprietary or confidential information agreement, or any other agreement, arrangement or understanding (whether written
or oral) between Executive and any other party, or (b) create any conflict of interest with, or breach or violate any fiduciary duty or other legal obligation owed by Executive to any other party. Executive will not enter into any other
agreement, arrangement or understanding with any other person or entity, either written or oral, that conflicts with or breaches or violates the terms of this Agreement or that would otherwise make the representations and warranties in the
immediately preceding sentence untrue. 
 7. Competition; Confidentiality. 

During the Term of this Agreement, Executive shall not, directly or indirectly, engage or be interested in, or work or perform services for,
whether as owner, partner, consultant, employee, agent or otherwise, any business, activity or enterprise in competition, directly or indirectly, with the Company’s business; provided, however, notwithstanding the foregoing, Executive may
beneficially own (whether individually or as a member of a “group”), for investment purposes only, not more than 1% of any class of security listed on a national securities exchange or traded in the over-the-counter market. 

Executive shall not, either during the Term of this Agreement or thereafter, except on behalf of the Company in the regular course of the
Company s business, use, divulge, furnish or make accessible to any third person or organization any confidential or proprietary information concerning the Company or its business (including information relating to the Company’s assets,
financial condition, direct and indirect shareholders, customers, clients and suppliers), except to the extent required by law, and provided that information now or hereafter in the public domain, 

  
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other than as a result of unauthorized disclosure by Executive, shall not be deemed confidential or proprietary information. 

8. Non-Solicitation of Employees; Non-Disparagement. 

In order to enable the Company to maintain a stable work force and to operate its business, Executive agrees, during Executive’s
employment with the Company and for a period of one year after the termination of that employment with the Company for any reason, not to solicit or encourage (nor direct or encourage anyone under his authority or control to solicit or encourage)
any of the Company’s employees to leave the employment of the Company and/or to work elsewhere. 
 You shall not, directly or
indirectly, in any manner or for any purpose whatsoever, disparage or communicate in negative terms, either verbally or in writing or in any other manner, about the Company and its business, products, services, customers, clients, affiliates,
employees, officers, shareholders, directors, partners, representatives or agents, subject to applicable state and federal laws. 
 9.
Termination. 
 9.1 “At-will” Employment. Executive’s employment with the Company is “at-will.”
Either Executive or the Company may terminate Executive’s employment with the Company at any time, with or without cause or any other reason and with or without notice, subject to payment of any applicable severance pursuant to this
Section 9. 
 If Executive’s employment terminates as a result of the death or “Disability” (as defined in
Section 9.2 below) of Executive, or Executive’s resignation without “Good Reason” (as defined in Section 9.3 below), or is terminated by the Company for “Cause” (as defined in Section 9.4 below), then the
Company shall have no further obligations to Executive other than the payment of compensation earned through the last day of employment, reimbursement for unreimbursed business expenses and such employee benefits as to which the Executive may be
entitled under any employee benefit plans as to which the Executive is a participant. 
 9.2 Termination as a Result of Death or
Disability. This Agreement shall terminate automatically upon the death of Executive. The Company may terminate this Agreement by 30 days’ written notice given by the Board of Directors of the Company to Executive of the Company’s
election to terminate this Agreement following Executive’s Disability. For purposes of this Agreement, “Disability” means the inability of Executive to perform the essential functions of his position for either (i) 90 consecutive
calendar days or (ii) 180 calendar days during any 12-month period by reason of physical or mental incapacity or impairment. 
 9.3
Resignation for Good Reason. The occurrence of any of the following shall be deemed to be “Good Reason” for the resignation of Executive: 

(a) Failure of the Company to comply with the material terms of this Agreement. 

  
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 (b) Any request by the Company for Executive to perform any act that is illegal
under applicable law. 
 (c) A material reduction in the Executive’s base salary. 

(d) A requirement by the Company that Executive perform services at a materially different geographic location. 

(e) The Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where such assumption occurs by operation of law. 

(f) A material, adverse change in the Executive’s authority, duties or responsibilities. 

(g) A material, adverse change in the reporting structure applicable to the Executive. 

The Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence of the
circumstances providing grounds for termination for Good Reason within 90 days of the initial existence of such grounds and the Company has had at least 30 days from the date on which such notice is provided to cure such circumstances. If the
Executive does not terminate his employment for Good Reason within 180 days after the first occurrence of the applicable grounds, then the Executive will be deemed to have waived his right to terminate for Good Reason with respect to such grounds.

 9.4 Termination by Company for Cause. For the purpose of this Agreement, “Cause” shall mean a good faith determination
by the Company that Executive has engaged in any of the following: 
 (a) Theft, misappropriation or embezzlement of Company
property, property of an officer, shareholder, director or employee, or property of any customer or supplier of the Company. 

(b) Any conduct that constitutes unfair competition with the Company, breaches a material contractual or fiduciary duty to the
Company, or is a material breach of a material Company policy, including, without limitation, as referred to under Section 9.6 below. 

(c) Material dishonesty in the performance of Executive’s duties for the Company or fraud against the Company. 

(d) Intentionally exceeding the scope of Executive’s authority as delegated or limited from time to time by the Company.

  
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 (e) Inducement by Executive of any customer, consultant, employee or supplier of
the Company to breach any contract with the Company or cease or materially diminish its business relationship with the Company. 

(f) Material and persistent failure to perform those duties assigned to Executive. 

(g) Failure to devote adequate time to serving the Company. 

(h) Conviction of, or guilty plea or plea of nolo contendere to, a crime punishable as a felony. 

Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have ten
(10) business days from the delivery of written notice by the Company within which to cure any acts constituting Cause; provided however, that, if the Company reasonably expects irreparable injury from a delay often (10) business days, the
Company may give the Executive notice of such shorter period within which to cure as is reasonable under the circumstances. Termination of the Executive’s employment shall not be deemed to be for Cause unless and until the Company delivers to
the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board (after reasonable written notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that the Executive has engaged in the conduct described above. 
 9.5 Termination Without Cause or
Resignation for Good Reason. If Executive’s employment is terminated without “Cause” or if Executive resigns for Good Reason, then the Company shall continue to pay Executive his base salary (less all applicable federal, state
and/or local taxes and other authorized payroll deductions) in accordance with the Company’s normal payroll practices, as set forth in Section 5.1, plus the cost of health care and the car allowance, each as set forth in Section 5.3
(collectively, “severance”), in accordance with the following schedule: 
  

			
	Termination within the first 12 months of this Agreement	  	6 months’ severance.
	Termination within the second 12 months of this Agreement	  	12 months’ severance.
	Termination after the second 12 months of this Agreement	  	18 months’ severance.

 The Company shall reimburse the Executive for the Executive’s health care costs on the tenth
(10th) day of the month immediately following the month in which the Executive remits the premium payments and shall continue to pay the Executive the $1,000 car allowance on the same monthly basis as during the Term of this Agreement. 

Executive’s right to receive this severance is conditioned on Executive’s signing and delivering to the Company prior to any such
payment, and not revoking, a full release of claims in a form reasonably satisfactory to the Company, with carveouts for post-termination severance payments, any previously vested equity-based awards, any right to indemnification or insurance
coverage under the Company’s directors and officers liability coverage, COBRA coverage and rights under any retirement plan sponsored or maintained by the Company in which the Executive participates. If Executive does not sign and deliver the
full release of claims within 21 

  
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days of the termination of his employment under this paragraph (provided the form of release has been provided to Executive by the Company on or prior to his termination date), then the Company
shall have no further obligations to Executive other than the payment of compensation earned through the last day of employment. The date that the release becomes effective and is no longer subject to revocation shall be referred to as the
“Release Effective Date.” If the severance provided for in this Section 9.5 is determined to be “nonqualified deferred compensation” that is subject to Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409”) and the 21-day period following Executive’s termination of employment during which Executive has to consider the release begins in one calendar year and ends in a second calendar year, then the first base salary
continuation installment shall be paid on the Company’s next regularly-scheduled payroll date that is no earlier than January 1st of the second calendar year and shall include the amount of any payments that would have been made before the
Release Effective Date but for Executive’s termination of employment, and the remaining base salary continuation installments shall be payable on the Company’s regularly scheduled paydays that follow. 

In any event, the payment of any applicable severance to Executive by the Company shall constitute the exclusive remedy of Executive with
respect to any claim for termination of his employment or breach of this Agreement or any other claim of any nature which Executive may have or assert against the Company relating to his employment and/or any of its affiliates and/or each of their
present and former members, directors, officers, employees, agents, attorneys, direct or indirect shareholders, related and affiliated companies and entities, predecessors, successors and assigns, and each and all of them, subject to the carveouts
described above. 
 In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of
the amounts payable to the Executive under any of the provisions of this Agreement and any amounts payable pursuant to this Section 9 shall not be reduced by compensation the Executive earns on account of employment with another employer,
except to the extent the Executive is entitled to health care insurance or automobile insurance in connection with such new employment. 

9.6 Rules, Regulations and Policies. You are required to follow all rules, regulations and policies of the Company that are brought to
your attention or of which you should reasonably be aware. This includes the entire content of any policies and procedures manual that may be adopted by the Company from time to time, as amended, if any, and as provided to you by the Company (the
“Manual”). You will be given an opportunity to review the Manual and to acknowledge compliance with the policies and procedures therein once it is available. You will be responsible for regularly reviewing the Manual and will be held to
strict compliance with its terms. Compliance with any policies outlined in the Manual, and with all applicable legislation and industry standards relevant to your employment or duties with the Company, is a condition of your employment.
Notwithstanding the foregoing, in the event of any conflict between the terms hereof and any term in such Manual, the terms hereof shall prevail. 

9.7 Access. Executive and the Company acknowledge and agree that the Company may require an employee (including Executive) to whom
notice of termination is given to leave the Company premises immediately, and may bar the employee from unescorted access to the Company premises, so as to enable the Company, among other things, to secure

  
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Company and customer records and preserve Company and customer trade secrets and proprietary information. 

10. Section 409A. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed
and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable
exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum
extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon
a “separation from service” under Section 409A. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination of employment is determined to constitute
“nonqualified deferred compensation” within the meaning of Section 409A and the Executive is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid
until the first payroll date to occur following the six-month anniversary of the Termination Date (the “Specified Employee Payment Date”) or, if earlier, on the Executive’s death. The aggregate of any payments that would otherwise
have been paid before the Specified Employee Payment Date shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original
schedule. 
 11. Indemnification. Executive shall be entitled to indemnification and coverage under the Company’s D&O
liability insurance on substantially the same basis as similarly situated executed officers of the Company. 
 12. Miscellaneous.

 12.1 Binding on Heirs. This Agreement shall be binding on and inure to the benefit of the parties hereto and on each of their
heirs, executors, administrators, successors, and assignees. 
 12.2 Severability. The invalidity or unenforceability of any
provision(s) of this Agreement under particular facts and circumstances will not affect the validity or enforceability either of other provisions of this Agreement or, under other facts and circumstances, of such provision(s). In addition, such
provision(s) will be reformed to be less restrictive if under such facts and circumstances they would then be valid and enforceable. 
 12.3
Rights of the Company. Nothing in this Agreement shall limit the right of the officers, the Board of Directors and the shareholders of Company to manage the business affairs of the Company, including, without limitation, matters relating to
personnel policies and procedures, benefits and conditions of work, or shall give to Executive any claim against Company with respect to any decision relating to the conduct of the business of Company, so long as that decision is not made in breach
of any of the Company’s express covenants or obligations under this Agreement. 

  
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 12.4 Sole and Only Agreement. This Agreement contains a complete statement of all
agreements between the parties with respect to its subject matter and entirely supersedes all previous agreements, arrangements and understandings, written or oral, relating to its subject matter and cannot be amended, changed or modified except in
writing, signed by the Company (upon prior approval of its Board of Directors) and Executive. 
 12.5 Governing Law. This Agreement
shall be governed by and construed and interpreted in accordance with the laws of the State of California, without regard to principles of conflicts of laws. 

12.6 No Waiver of Rights. The waiver or failure of a party to insist upon strict adherence to any term of this Agreement on any
occasion shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement in the future. Any waiver of any term or condition must be in writing executed
by the party against whom the waiver is asserted. 
 12.7 Representations and Warranties. Executive represents and warrants to the
Company that Executive is not bound by or subject to any contractual or other obligations that would be violated by Executive’s execution or performance of this Agreement. 

12.8 Assignment of Rights. Executive expressly acknowledges and agrees that the Company’s rights under this Agreement may be
transferred to or assigned and delegated by the Company to a successor to its business, whether by merger, consolidation or sale of substantially all of its assets. This Agreement may not be assigned nor delegated by Executive. 

12.9 Consent to Arbitration. Except as is necessary for Executive and the Company to preserve their respective rights under this
Agreement by seeking necessary equitable relief (including, but not limited to, the Company’s rights under Section 7 of this Agreement) from a court of competent jurisdiction, the Company and Executive agree that any and all disputes based
upon, relating to or arising out of this Agreement, Executive’s employment relationship with the Company and/or the termination of that relationship, and/or any other dispute by and between the Company and Executive, including any and all
claims Executive may at any time attempt to assert against the Company, shall be submitted to binding arbitration in California, pursuant to the American Arbitration Association’s (“AAA”) National Rules for the Resolution of
Employment Disputes (the “Rules”), provided that the arbitrator shall allow for discovery sufficient to adequately arbitrate any statutory claims, including access to essential documents and witnesses, and otherwise in accordance with
California Code of Civil Procedure § 1283.05, and provided further that the Rules shall be modified by the arbitrator to the extent necessary to be consistent with applicable law. The arbitrator shall be a retired judge of the California
Superior Court, California Court of Appeal, or United States District Court, to be mutually agreed upon by the parties. If, however, the parties are unable to agree upon an arbitrator, then an arbitrator who is a retired judge of the California
Superior Court, California Court of Appeal, or United States District Court, shall be selected by AAA in accordance with the Rules. The Company and Executive further agree that each party shall pay its own costs and attorneys’ fees, if any;
provided, however, if either party prevails on a statutory claim that affords the prevailing party an award of attorneys’ fees, then the arbitrator may award reasonable attorneys’ fees to the prevailing party, consistent with applicable
law. In any event, the Company 

  
 -9- 

 
shall pay any expenses Executive would not otherwise have incurred if the dispute had been adjudicated in a court of law, rather than through arbitration, including the arbitrator’s fee, any
administrative fee and any filing fee in excess of the maximum court filing fee in the jurisdiction in which the arbitration is commenced. The Company and Executive further agree any hearing must be transcribed by a certified shorthand reporter, and
the arbitrator shall issue a written decision and award supported by essential findings of fact and conclusions of law in order to facilitate judicial review. Said award and decision shall be issued within thirty (30) days of the completion of
the arbitration. Judgment in a court of competent jurisdiction may be had on said decision and award of the arbitrator. For these purposes, the parties agree to submit to the jurisdiction of the state and federal courts located in Los Angeles,
California. 
 12.10 Disclosure of Agreement. Executive hereby authorizes the Company to disclose this Agreement and his
responsibilities hereunder to any person or entity, including, without limitation, future employers or clients. 
 12.11 Notices. Any
and all notices given hereunder shall be in writing and shall be deemed to have been duly given when received, if personally delivered; upon receipt of telephonic or electronic confirmation, if transmitted by telecopy or electronic or digital
transmission method; the day after the notice is sent, if sent for next day delivery to a domestic address using a generally recognized overnight delivery service (e.g., Federal Express); and upon receipt, if sent by certified or registered mail,
return receipt requested. In each case notice will be sent as follows: 
  

			
	If to the Company:	  	 MEDBOX, INC.
 600 WILSHIRE BLVD, SUITE 1500

Los Angeles, CA 90018
 Attention: President

Telephone:

		
	If to Executive:	  	 Jeff Goh

		
	with a notice to:	  	 Palmieri, Tyler, Wiener, Wilhelm & Waldron LLP

2603 Main Street, Suite 1300
 Irvine, California 92614

Attention: Melisa Perez, Esq.

 Either party may change its address and/or facsimile number for notice purposes by duly giving notice to
the other party pursuant to this Section. 
 12.12 Survival. The rights and obligations contained in Sections 6 through 10,
inclusive, of this Agreement shall survive the termination or expiration of this Agreement or of Executive’s employment with the Company, and shall be fully enforceable thereafter. Further, all other rights and obligations of the parties
hereto, other than those applicable by their express 

  
 -10- 

 
terms only during the Term of this Agreement, shall survive any termination or expiration of this Agreement or of Executive’s employment with the Company, and shall be fully enforceable
thereafter. 
 12.13 Independent Legal Advice. You acknowledge that you have had the opportunity to obtain independent legal advice
with respect to the execution of this Agreement, or have willingly and knowingly waived that opportunity, and that, in any event, you have read, understand, and agree with all of the terms and conditions contained herein, including, without
limitation, with respect to the tax treatment of any RSUs that may be granted to you. 
 12.14 Counterparts and Electronic Execution.
This Agreement may be effectively executed and delivered in one or more counterparts and by facsimile, PDF, email or such other electronic format as determined by the parties hereto, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
to one another, intending legally to be bound hereby, as of the Effective Date. 
  

							
	“COMPANY”:	 		 	MEDBOX, INC., a Nevada corporation
				
		 		 	By:	 	  

		 		 	Its:	 	  

			
	“EXECUTIVE”:	 		 	  

		 		 	Jeff Goh

  
 -11-

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