Document:

Exhibit 10.3

Private and Confidential

 

August 18, 2022

 

Dean Ditto

 

Re:  Employment Offer Letter 

 

Dear Mr. Ditto,

 

You are hereby offered the position of Chief Financial Officer (“CFO”) for Akerna Corp. (“Akerna” or “the Company”) on an at-will basis.  Please accept this communication as an offer letter and the basic terms of your employment relationship, subject to Akerna policies and procedures as well as any other documents you must execute before your employment.  You will initially manage the Finance and Accounting Departments.  You will report directly to Akerna’s Chief Executive Officer (“CEO”) Jessica Billingsley.  

 

Although subject to change based on management decisions and the discretion of the CEO, your initial tasks will include, but are not limited to:

 

Planning:

 

	Formulate and assist in the formulation of Company’s future direction and support tactical initiatives
	Monitor and direct the implementation of strategic business plans
	Develop financial and tax strategies
	Manage, implement, and oversee the capital request and budget process
	Develop performance measurements that support Company’s strategic direction

Operations:

 

	Meaningfully and reasonably participate in key decisions as a member of Company’s executive team
	Maintain quality and professional relationships with all members of the management team and teams you supervise
	Manage the accounting, investor relations, legal, and tax functions of the company, as assigned
	Oversee Company’s transaction processing systems and contract management systems
	Identify and Implement operational best practices
	Oversee employee benefit plans, with particular emphasis on maximizing a cost-effective benefits package
	Supervise acquisition, due diligence, and negotiate acquisitions

Financial Information:

 

	Oversee the issuance of required financial information and reporting 
	Personally review, amend, and approve all Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission
	Report financial results to the Board of Directors at the advice and consent of the CEO

Risk Management:

 

	Understand and mitigate key elements of Company’s risk profile
	Monitor all open legal issues involving Company, and legal issues affecting the industry
	Construct and monitor reliable control systems
	Maintain appropriate insurance coverage
	Ensure Company complies with all legal and regulatory requirements
	Ensure that record keeping meets the requirements of auditors and government agencies
	Report risk issues to the audit committee of the Board of Directors
	Maintain relations with external auditors and lead the investigation of their findings and recommendations 

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Funding:

 

	Monitor cash balances and cash forecasts
	Arrange for debt and equity financing
	Invest funds
	Invest pension funds

Third Parties:

 

	Participate in conference calls with the investment community
	Maintain banking relationships
	Represent Company with investment bankers and investors

You will also be responsible for compliance with all legal fiduciary duties and for compliance with Company policies and procedures.  All Company policies and procedures are subject to change and you will be responsible for your compliance with all such policies and procedures, as amended.  

 

Compensation:

 

Your initial compensation package includes an annual base salary of $250,000, subject to all legal withholdings and deductions.  You will also immediately vest with $25,000 in Restricted Stock Units, which are subject to the terms of Consulting Agreement you previously executed.

 

Change in Control Bonus Incentive: 

Subject to your continued employment with Company through the occurrence of the first closing of a sale transaction of the majority of either (i) MJ Freeway or (ii) 365 Cannabis, at a reasonable and acceptable  sale transactional valuation amount as determined by and at the sole discretion of the Board of Directors or a Change in Control, as defined herein, Company shall pay you a lump sum of $125,000.  This bonus will be paid in one installment, within 60 days of the change in control event, subject to the requirements below and less applicable payroll taxes and deductions.   The terms of this bonus are contingent on your satisfactory performance of all assigned duties. In the event you resign from the Company or are terminated by the Company for cause before the bonus payment due date, you will not be entitled to receive this bonus. In the case or your death or long-term disability, this bonus Incentive will be paid to you or your estate within 30 days of the change in control event. In addition, if you have received the Deal Bonus described herein, the Change in Control bonus described in this provision shall be reduced by the amount of the Deal Bonus previously received and/or owing to you. For purposes of this provision, “Change of Control” of the Company is defined as: (i) the date any “person” or group (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes, subsequent to the date hereof, the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of Company representing 50% or more of the total voting power represented by Company’s then outstanding voting securities, other than pursuant to a sale by Company of its securities in a transaction or series of related transactions the primary purpose of which is to raise capital for the Company; (ii) the date of the consummation of a merger or consolidation of Company with any other corporation that has been approved by the stockholders of Company, other than a merger or consolidation that would result in the voting securities of Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of Company or such surviving entity outstanding immediately after such merger or consolidation; or (iii) the date of the consummation of the sale or disposition by Company of all or substantially all Company’s assets.  However, no Change in Control shall be deemed to have occurred by reason of (a) any event that involves a transaction that you or a group of persons or entities with whom you act in concert acquires, directly or indirectly, more than 50% of the combined voting power of Company’s then-outstanding voting securities or the business or assets of Company; (b) any event that involves or arises out of a proceeding under Title 11 of the United States Code or the provisions of any future United States Bankruptcy law, an assignment for the benefit of creditors or an insolvency; or (c) a majority of the current members of the Board of Directors at the time of execution of this Agreement are no longer on the Board of Directors for any reason whatsoever.  The terms of this bonus shall be effective through December 31, 2022. A Letter of Intent (“LOI”) executed prior to December 31, 2022 in which the Company is also using its best efforts to arrive at a final transaction agreement will qualify as a triggering event for this bonus, as long as the LOI executed before the deadline is the operative and controlling LOI for the final transaction agreements.  Any qualifying Change in Control after this date shall not trigger any payment and/or your right to this Change in Control incentive.  

 

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Long Term Incentive Plan (“LTIP”):

You will be eligible to participate in the Akerna LTIP when the next award takes place and upon successful finalization of the Akerna LTIP in 2023. All awards made pursuant to the Akerna LTIP are made at the sole discretion of the Board of Directors. Full details of the LTIP will be sent to you in due course and after finalization of the Akerna LTIP in 2023. 

 

If the Buyer Offers You a Comparable Position Upon Closing:

If any buyer related to a Change in Control offers you a comparable position on comparable terms, you are expected to accept the offer and work in good faith to achieve a successful transition.

 

If the Buyer Does Not Offer You a Comparable Position Upon Closing:

If the buyer related to a Change in Control does not offer you a comparable position on comparable terms, you will receive Severance Benefits as follows:

 

a)       Continuation of your Base Salary (at the rate in effect immediately prior to the date of transition) subject to all applicable taxes and withholdings, for four (4) months (the “Severance Period”), payable in accordance with the Company’s regular payroll practices and procedures for such period commencing on the first payroll date following the execution of a General Release and the expiration of any applicable revocation period; and

 

Subject to your eligibility for and timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), with respect to the group medical insurance plan in which you and your eligible dependents participated immediately prior to the Termination Date (“COBRA Continuation Coverage”), the Company will make direct payments for you and your eligible dependents equal to the monthly amount of the employer and employee premiums for COBRA Continuation Coverage under the Company’s group medical plans that you participated in as of the Termination Date, until the earliest of (i) the completion of the Severance Period, (ii) you become eligible for medical benefits from a subsequent employer, or (iii) you otherwise becoming ineligible for COBRA; provided, that you will not be entitled to receive such Medical Payment Amounts if such payment is then impermissible under applicable law. For the avoidance of doubt, you shall be responsible for any monthly premium cost for the full costs for COBRA Continuation Coverage for any period during which you continue to receive COBRA Continuation Coverage following the periods set forth in (i) and (ii) above.

 

Acknowledgement:

You acknowledge that the compensation, including, but not limited to the offer, the specialized training, and the Confidential Information provided to you pursuant to your employment with Akerna give rise to Akerna’s interest in restraining you from violating any restrictive covenants by which you are bound, and that said covenants are designed to enforce such consideration and that any limitations as to time, geographic scope and scope of activity to be restrained as defined herein are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of Akerna.  Nothing in this offer supersedes or nullifies any portion or provision in Akerna’s Employee Covenants Agreement and/or Akerna’s policies and procedures.  The terms of this offer shall be read in cooperation and conjunction with any such policies and procedures.  

 

In accepting this offer, you also authorize the Company to share with the prospective buyer such personal employment data as would reasonably allow the buyer to evaluate your contribution to the business and future role.

 

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Miscellaneous:  

 

Assignment.  Your rights and obligations under this offer are personal to you, and may not be assigned by you, in whole or in part.  Akerna may freely assign its rights and obligations under this offer.

 

Counterparts.  This offer may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original, and all of which counterparts of this offer, when taken together shall constitute one and the same instrument.

 

No Third-Party Beneficiaries.  Nothing in this offer, express or implied, is intended or will be construed to confer on any person, other than the parties to this offer, any right, remedy, or claim under or with respect to this offer.

 

Notices.  All notices and other communications under this offer must be in writing and will be deemed to have been given if delivered personally, sent by facsimile (with confirmation), mailed by certified mail, or delivered by an overnight delivery service (with confirmation), to the parties at the addresses or facsimile numbers as a party may designate from time-to-time.  Any notice or other communication will be deemed given: (a) on the date of personal delivery; (b) at the expiration of the third day after the date of deposit in the United States mail; or (c) on the date of confirmation of delivery by facsimile or overnight delivery service.

 

Amendment.  This offer may be amended only by an instrument in writing executed by the CEO of Akerna, and you, which writing must refer to this offer.

 

Further Assurances.  Each party agrees: (a) to execute and deliver such other documents; and (b) to do and perform such other acts and things, as any other party may reasonably request, to carry out the intent and accomplish the purposes of this offer.

 

Waiver.  Any provision or condition of this offer may be waived at any time, in writing, by the party entitled to the benefit of such provision or condition.  Waiver of any breach of any provision will not be a waiver of any succeeding breach of the provision or a waiver of the provision itself or any other provision.

 

Governing Law.  This offer will be governed by and construed in accordance with the laws of the State of Colorado, without regard to conflict of law provisions.

 

Severability.  If any provision of this offer is invalid or unenforceable in any respect for any reason, the validity and enforceability of such provision in any other respect and of the remaining provisions of this offer will not be in any way impaired.

 

Headings.  Section headings in this offer are for convenience and reference only and shall not govern the interpretation of any of the provisions of this offer.

 

Entire Agreement.  Unless otherwise provided for in this document, this offer (including the documents and agreements referred to in this offer) constitutes the entire agreement and understanding of the parties with respect to the subject matter of this offer and supersedes all prior understandings and agreements, whether written or oral, among the parties with respect to such subject matter.  

 

Attorneys’ Fees and Costs.  If attorneys’ fees or other costs are incurred to secure performance of any obligations hereunder, or to establish damages for the breach thereof or to obtain any other appropriate relief, whether by way of prosecution or defense, the prevailing party will be entitled to recover reasonable attorneys’ fees and costs incurred in connection therewith.

 

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Sincerely,
 

 

/s/ Jessica Billingsley

Jessica Billingsley, Chairman and CEO of Akerna

 

 

Employee Signature: /s/ L. Dean Ditto  

 

Date: August 18, 2022Exhibit 10.1

 

TENGJUN BIOTECHNOLOGY CORP.

RESTRICTED STOCK AGREEMENT

 

THIS RESTRICTED STOCK AGREEMENT (the “Agreement”) is made
as of October 4, 2022 (the “Grant Date”), by and between Tengjun Biotechnology Corp., a Nevada corporation (the “Company”),
and _________ (the “Grantee”), an _______ of the Company. The Board of the Company has determined that it is in the best interests
of the Company and its shareholders to promote the success of the Company by enhancing the ownership of the Company’s common stock
of the Grantee through making this grant of restricted common stock in accordance with the terms set forth below.

 

AGREEMENT

 

1. Award of Restricted
Shares. The Board hereby grants, subject to the terms and conditions set forth in this Agreement, to the Grantee an aggregate of ______
shares of the Company’s common stock, par value $0.001 per share (the “Restricted Shares”) at a purchase price of $_____
per share with a total purchase price of $____. The Restricted Shares will be held either in book entry form by the Company’s transfer
agent (“Transfer Agent”) or represented by stock certificates in the name of the Grantee and shall be delivered to the Grantee
pursuant to Section 2(a). The Grantee agrees that the Restricted Shares shall be subject to the forfeiture provisions set forth in Section
3 of this Agreement and the restrictions on transfer set forth in Section 3 hereof.

 

2. Delivery of Restricted
Shares

 

(a) The Restricted Shares vest
upon execution of this agreement. If the Grantee elects to have the Restricted Shares in the book entry form, the Company shall cause
its Transfer Agent to deliver a statement to the Grantee recording the Grantee’s ownership of the Restricted Shares. If the Grantee
elects to have the stock certificates representing the Restricted Shares, the Company shall cause its Transfer Agent to deliver such stock
certificates to the Grantee at the Company’s expense.

 

3. Restrictions. The
shares of Restricted Stock are subject to the following restrictions (collectively, the “Restrictions”):

 

(a) Forfeiture. If
the Grantee’s service to the Company as a director, employee or consultant shall terminate for any reason other than a “Change of
Control” or the Grantee’s “Disability” or death as provided in Section 2 herein, the Grantee shall forfeit the right to
receive any shares of Restricted Stock with respect to which the Restrictions have not lapsed as provided in Section 2 as of the effective
e date of termination of Grantee’s service to the Company.

 

(b) Competition. In
the event the Grantee becomes employed by, associated in any way with, or the beneficial owner of more than 1% of the equity of, any
business which in the good faith determination of the Board competes, directly or indirectly, with the Company’s business in
any geographical area where the Company then does business, or if the Grantee engages in criminal conduct with respect to the
Company, a Subsidiary, or any of their property, shareholders, employees, officers or directors, or engages in conduct involving
moral turpitude, the Grantee shall forfeit the right to receive any shares of Restricted Stock with respect to which the
Restrictions have not lapsed as provided in Section 2.

 

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(c) The Grantee acknowledges
and understands the Restricted Shares are being offered in a transaction not involving a public offering within the meaning of the Securities
Act. The Restricted Shares have not been registered under the Securities Act, and, if in the future, in accordance with the terms of this
Agreement, the Grantee decides to offer, resell, pledge or otherwise transfer the Restricted Shares, such Shares may be offered, resold,
pledged or otherwise transferred only: (i) pursuant to an effective registration statement filed under the Securities Act, (ii) pursuant
to an exemption from registration under Rule 144 promulgated thereunder (“Rule 144”), if available, or (iii) pursuant to any
available other exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable
securities laws of any state or any other jurisdiction. Grantee agrees that if any assignment, disposition, transfer, pledge of or similar
action with respect to its Restricted Shares or any interest therein is proposed to be made by Grantee or its affiliates, as a condition
precedent to any such action, Grantee shall be required to deliver to the Company an opinion of counsel satisfactory to the Company that
such action does not violate the Securities Act or the rules and regulations promulgated thereunder. Absent registration or an available
exemption from registration, Grantee agrees that it will not take any such action with respect to the Restricted Shares. Grantee understands
and agrees imprinting the following legend on the Restricted Shares:

 

“THIS SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.”

 

4. Rights with Respect
to Restricted Shares.

 

(a) Except as otherwise provided
in this Agreement, the Grantee shall have, with respect to all Restricted Shares, all the rights of a shareholder of the Company, including
the right to vote the Restricted Shares and the right to receive cash dividends, if any, as may be declared by the Board from time to
time. Any shares of the Company’s common stock issued to the Grantee as a dividend with respect to the Restricted Shares shall have
the same status, be subject to the same terms and conditions and shall be held on behalf of the Grantee by the Company (on a pro rata
basis) as the unvested Restricted Shares, unless otherwise determined by the Board.

 

(b) Reserved.

 

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5. Taxes.

 

(a) If the Grantee elects, within
thirty (30) days of the date of this Agreement, to include in gross income for federal income tax purposes an amount equal to the fair
market value (as of the Grant Date) of the Restricted Shares pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended
(the “Code”), the Grantee shall make arrangements satisfactory to the Board to pay to the Company any federal, state or local
income taxes required to be withheld with respect to the Restricted Shares. If the Grantee shall fail to make such tax payments as are
required, the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the
Grantee any federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Shares.

 

(b) If the Grantee does not
make the election described in Subsection 5(a) above, the Grantee shall, no later than the date as of which the Restricted Shares vest,
pay to the Company, or make arrangements satisfactory to the board for payment of, any federal, state or local taxes of any kind required
by law to be withheld with respect to the Restricted Shares, and the Company shall, to the extent permitted by law, have the right to
deduct from any payment of any kind otherwise due to Grantee any federal, state, or local taxes of any kind required by law to be withheld
with respect to the Restricted Shares.

 

(c) The Grantee has reviewed
with the Grantee’s own tax advisors the federal, state, local and other tax consequences of the grant of Restricted Shares. The
Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee
understands that the Grantee (and not the Company) shall be responsible for the Grantee’s own tax liability that may arise directly
or indirectly as a result of the grant of the Restricted Shares.

 

6. Reserved.

 

7. Amendment, Modification
and Assignment. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing signed by the Grantee and the Chairman of the Board or other duly authorized member of the Board. No waiver by
either party of any breach by the other party hereto of any condition or provision of this Agreement shall be deemed a waiver of any other
conditions or provisions of this Agreement. No agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth expressly in this Agreement. This Agreement shall not be
assigned by the Grantee in whole or in part. The rights and obligations created hereunder shall be binding on the Grantee and his heirs
and legal representatives and on the successors and assigns of the Company.

 

8. Miscellaneous.

 

(a) No Right to Employment.
The grant of the Restricted Shares shall not be construed as giving the Grantee the right to be retained in the employ of the Company.

 

(b) No Limit on Other Compensation
Arrangements. Nothing contained in this Agreement shall preclude the Company from adopting or continuing in effect other or additional
compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

 

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(c) Severability. If
any provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify
this Agreement or the grant of Restricted Shares under any applicable law, such provision shall be construed or deemed amended to conform
to applicable law (or if such provision cannot be so construed or deemed amended without materially altering the purpose or intent of
this Agreement and the grant of Restricted Shares, such provision shall be stricken as to such jurisdiction and the remainder of this
Agreement and the Award shall remain in full force and effect).

 

(d) No Trust or Fund Created.
Neither this Agreement nor the grant of Restricted Shares shall create or be construed to create a trust or separate fund of any kind
or a fiduciary relationship between the Company and the Grantee or any other person. To the extent that the Grantee or any other person
acquires a right to receive payments from the Company pursuant to this Agreement, such right shall be no greater than the right of any
unsecured general creditor of the Company.

 

(e) Governing Law. The
validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Nevada, without
regards to the conflict of law provisions.

 

(f) Headings. Headings
are given to the Paragraphs and Subparagraphs of this Agreement solely as a convenience to facilitate reference. Such headings shall not
be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision thereof.

 

(g) Grantee’s Acknowledgments.
The Grantee acknowledges that he or she: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of the Grantee’s own choice or has voluntarily declined to seek such counsel; (iii) understands
the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands
that the law firm of Sichenzia Ross Ference LLP has acted as counsel to the Company in connection with the transactions contemplated by
the Agreement, and not as counsel for the Grantee.

 

(h) Delivery of Certificates.
The Grantee may request that the Company deliver the vested Restricted Shares in certificated form.

 

(i) No Deferral. Notwithstanding
anything herein to the contrary, neither the Company nor the Grantee may defer the delivery of the Restricted Shares.

 

9. Complete Agreement.
This Agreement and those agreements and documents expressly referred to herein embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on the date first written above.

 

		 	Tengjun Biotechnology Corp.
	 	 	 	 
	 	 	By	 
	 	 	Name: 	 Xianchang Ma
	 	 	Title:	 Chief Executive Officer
	 	 	 	 
	Agreed and Accepted:	 	 	 
	 	 	 	 
	By:	         	 	 	 
	Name:  	 	 	 	 
	Address: 	 	 	 

 

 

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