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Exhibit 10.1
SELLAS LIFE SCIENCES GROUP, INC.

EMPLOYEE STOCK PURCHASE PLAN

The following constitute the provisions of the 2021 Employee Stock Purchase Plan (the “Plan”) of Sellas Life Sciences Group, Inc. (the “Company”).
1.Purpose.  The purpose of the Plan is to provide Employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company.  It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code.  The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.
2.Definitions.
(a.)“Board” shall mean the Board of Directors of the Company, or a committee of the Board of Directors named by the Board to administer the Plan.
(b.)“Code” shall mean the Internal Revenue Code of 1986, as amended, including any successor statute, regulation and guidance thereto.
(c.)“Common Stock” shall mean the common stock, $0.0001 par value per share, of the Company.
(d.)“Company” shall mean Sellas Life Sciences Group, Inc., a Delaware corporation.
(e.)“Compensation” shall mean the regular rate of salary or wages received by the Employee from the Company or a Designated Subsidiary that is taxable income for federal income tax purposes or applicable tax law, including payments for overtime and shift premium, but excluding incentive compensation, incentive payments, bonuses, commissions, relocation, expense reimbursements, tuition or other reimbursements or compensation received from the Company or a Designated Subsidiary.
(f.)“Continuous Status as an Employee” shall mean the absence of any interruption or termination of service as an Employee.  Continuous Status as an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company, provided that such leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is guaranteed by contract or statute.
(g.)“Contributions” shall mean all amounts credited to the account of a participant pursuant to the Plan.
(h.)“Designated Subsidiaries” shall mean the Subsidiaries which have been designated by the Board from time to time in its sole discretion as eligible to participate in the Plan.
(i.)“Employee” shall mean any person who is employed by the Company or one of its Designated Subsidiaries for tax purposes and who is customarily employed for at least 
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twenty (20) hours per week and more than five (5) months in a calendar year by the Company or one of its Designated Subsidiaries.
(j.)“Exercise Date” shall mean the last business day of each Offering Period of the Plan.
(k.)“Exercise Price” shall mean with respect to an Offering Period, an amount equal to 85% of the fair market value (as defined in Section 7(b)) of a share of Common Stock on the Offering Date or on the Exercise Date, whichever is lower.
(l.)“Offering Date” shall mean the first business day of each Offering Period of the Plan.
(m.)“Offering Period” shall mean a period of six months as set forth in Section 4 of the Plan.
(n.)“Plan” shall mean this Sellas Life Sciences Group, Inc. Employee Stock Purchase Plan.
(o.)“Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.
3.Eligibility.
(a.)Any person who has been continuously employed as an Employee for one (1) month as of the Offering Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan and further, subject to the requirements of Section 5(a) and the limitations imposed by Section 423(b) of the Code.  All Employees granted options under the Plan with respect to any Offering Period will have the same rights and privileges except for any differences that may be permitted pursuant to Section 423.
(b.)Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary of the Company or (ii) which permits his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate which exceeds $25,000 of fair market value of such stock as defined in Section 7(b) (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. In addition, the maximum number of shares of Common Stock that may be purchased by any participant during an Offering Period shall equal the lesser of (i) 5,000 shares of Common Stock or (ii) $25,000 divided by the fair market value of the Common Stock on the first trading day of such Offering Period, which price shall be adjusted if the price per share is adjusted pursuant to Section 18.  Any option granted under the Plan shall be deemed to be modified to the extent necessary to satisfy this Section 3(b).
4.Offering Periods.  The Plan shall be implemented by a series of Offering Periods, with a new Offering Period commencing on March 15 and September 15 of each year or the first business day thereafter (or at such other time or times as may be determined by the Board).  
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5.Participation.
(a.)An eligible Employee may become a participant in the Plan by completing an Enrollment Form provided by the Company and filing it with the Company or its designee at least ten (10) days prior to the applicable Offering Date, unless a later time for filing the Enrollment Form is set by the Board for all eligible Employees with respect to a given Offering Period.  The Enrollment Form and its submission may be electronic as directed by the Company.  The Enrollment Form shall set forth the percentage of the participant’s Compensation (which shall be not less than one percent (1%) and not more than twenty percent (20%) to be paid as Contributions pursuant to the Plan.
(b.)Payroll deductions shall commence with the first payroll following the Offering Date, unless a later time is set by the Board with respect to a given Offering Period, and shall end on the last payroll paid on or prior to the Exercise Date of the Offering Period to which the Enrollment Form is applicable, unless sooner terminated as provided in Section 10.
6.Method of Payment of Contributions.
(a.)Each participant shall elect to have payroll deductions made on each payroll during the Offering Period in an amount not less than one percent (1%) and not more than twenty percent (20%) of such participant’s Compensation on each such payroll (or such other percentage as the Board may establish from time to time before an Offering Date).  All payroll deductions made by a participant shall be credited to his or her account under the Plan.  A participant may not make any additional payments into such account.
A participant may discontinue his or her participation in the Plan as provided in Section 10, or, on one occasion only during the Offering Period, may decrease, but may not increase, the rate of his or her Contributions during the Offering Period by completing and filing with the Company a new Enrollment Form authorizing a change in the deduction rate.  The change in rate shall be effective as of the beginning of the next payroll period following the date of filing of the new Enrollment Form, if the Enrollment Form is submitted at least ten (10) days prior to such date, and, if not, as of the beginning of the next succeeding payroll period.
(b.)Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b), a participant’s payroll deductions may be decreased to 0% at such time during any Offering Period which is scheduled to end during the current calendar year that the aggregate of all payroll deductions accumulated with respect to such Offering Period and any other Offering Period ending within the same calendar year equals $21,250.  Payroll deductions shall recommence at the rate provided in such participant’s Enrollment Form at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10.
7.Grant of Option.
(a.)On the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the Exercise Date of such Offering Period a number of shares of the Common Stock determined by dividing such Employee’s Contributions accumulated prior to such Exercise Date and retained in the participant’s account as of the Exercise Date by the applicable Exercise Price; provided however, that such purchase shall be subject to the limitations set forth in Sections 3(b) and 12.  The fair market value of a share of the Common Stock shall be determined as provided in Section 7(b).
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(b.)The fair market value of the Common Stock on a given date shall be (i) if the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or last sale price of the Common Stock for such date (or, in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), on the composite tape or other comparable reporting system; or (ii) if the Common Stock is not listed on a national securities exchange and such price is not regularly reported, the mean between the bid and asked prices per share of the Common Stock at the close of trading in the over-the-counter market.
8.Exercise of Option.  Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares will be exercised automatically on the Exercise Date of the Offering Period, and the maximum number of full shares subject to the option will be purchased for him or her at the applicable Exercise Price with the accumulated Contributions in his or her account.  If a fractional number of shares results, then such number shall be rounded down to the next whole number and any unapplied cash shall be carried forward to the next Exercise Date, unless the participant requests a cash payment.  The shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Exercise Date.  During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.
9.Delivery.  Upon the written request of a participant, certificates representing the shares purchased upon exercise of an option will be issued as promptly as practicable after the Exercise Date of each Offering Period to participants who wish to hold their shares in certificate form, except that the Board may determine that such shares shall be held for each participant’s benefit by a broker designated by the Board.  Any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full Share shall be retained in the participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 below.  Any other amounts left over in a participant’s account after an Exercise Date shall be returned to the participant.
10.Withdrawal; Termination of Employment.  A participant may withdraw all but not less than all the Contributions credited to his or her account under the Plan at any time prior to the Exercise Date of the Offering Period by giving written notice to the Company or its designee.  All of the participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice of withdrawal and his or her option for the current period will be automatically terminated, and no further Contributions for the purchase of shares will be made during the Offering Period.
(a.)Upon termination of the participant’s Continuous Status as an Employee prior to the Exercise Date of the Offering Period for any reason, including retirement or death, the Contributions credited to his or her account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under Section 14, and his or her option will be automatically terminated.
(b.)In the event an Employee fails to remain in Continuous Status as an Employee for at least 20 hours per week during the Offering Period in which the Employee is a participant, he or she will be deemed to have elected to withdraw from the Plan and the Contributions credited to his or her account will be returned to him or her and his or her option terminated.
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A participant’s withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in a succeeding offering or in any similar plan which may hereafter be adopted by the Company.
11.Interest.  No interest shall accrue on the Contributions of a participant in the Plan.
12.Stock.
(a.)The maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be 300,000 shares, subject to adjustment upon changes in capitalization of the Company as provided in Section 18.  If the total number of shares which would otherwise be subject to options granted pursuant to Section 7(a) on the Offering Date of an Offering Period exceeds the number of shares then available under the Plan (after deduction of all shares for which options have been exercised), the Company shall make a pro rata allocation of the shares remaining available for option grants in as uniform a manner as shall be practicable and as it shall determine to be equitable.  Any amounts remaining in an Employee’s account not applied to the purchase of shares pursuant to this Section 12 shall be refunded on or promptly after the Exercise Date.  In such event, the Company shall give written notice of such reduction of the number of shares subject to the option to each Employee affected thereby and shall similarly reduce the rate of Contributions, if necessary.
(b.)The participant will have no interest or voting right in shares covered by his or her option until such option has been exercised.
13.Administration.  The Board shall supervise and administer the Plan and shall have full power to adopt, amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe and interpret the Plan, to correct any defect or supply any omission or reconcile any inconsistency or ambiguity in the Plan and to make all other determinations necessary or advisable for the administration of the Plan, including without limitation, adopting subplans applicable to particular Designated Subsidiaries or locations, which subplans may be designed to be outside the scope of Section 423 of the Code..
14.Designation of Beneficiary.  A participant may designate a beneficiary who is to receive any shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to the end of the Offering Period but prior to delivery to him or her of such shares and cash.  In addition, a participant may designate a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to the Exercise Date of the Offering Period.  If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.  Beneficiary designations shall be made either in writing or by electronic delivery as directed by the Company.
(a.)Such designation of beneficiary may be changed by the participant (and his or her spouse, if any) at any time by submission of the required notice, which may be electronic.  In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or 
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to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
15.Transferability.  Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 14) by the participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10.
16.Use of Funds.  All Contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions.
17.Reports.  Individual accounts will be maintained for each participant in the Plan.  Statements of account will be given to participating Employees promptly following the Exercise Date, which statements will set forth the amounts of Contributions, the per share purchase price, the number of shares purchased and the remaining cash balance, if any.
18.Adjustments upon Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by unexercised options under the Plan and the number of shares of Common Stock which have been authorized for issuance under the Plan but are not yet subject to options under Section 12(a) (collectively, the “Reserves”), the maximum number of shares of Common Stock that may be purchased by a participant in an Offering Period set forth in Section 3(b) as well as the price per share of Common Stock covered by each unexercised option under the Plan, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock. Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.
In the event of the proposed dissolution or liquidation of the Company, an Offering Period then in progress will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board.  In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger, consolidation or other capital reorganization of the Company with or into another corporation, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Board determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, to shorten the Offering Period then in progress by setting a new Exercise Date (the “New Exercise Date”).  If the Board shortens the Offering Period then in progress in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify each participant in writing, at least ten days prior to the New Exercise Date, that the Exercise Date for his or her option has been changed to the New Exercise Date and that his or her option will be exercised automatically on the New Exercise Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10.  For purposes of this section, an option granted under the Plan shall be deemed to be assumed if, following the sale of assets, merger or other reorganization, the option confers the right to purchase, for each share of Common Stock subject to the option immediately prior to the sale of assets, merger or other reorganization, the consideration (whether stock, cash or other securities or property) received in the sale of assets, merger or other 
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reorganization by holders of Common Stock for each share of Common Stock held on the effective date of such transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if such consideration received in such transaction was not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Common Stock in the sale of assets, merger or other reorganization.
The Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common Stock, and in the event of the Company being consolidated with or merged into any other corporation.
19.Amendment or Termination.
(a.)The Board may at any time terminate or amend the Plan.  Except as provided in Section 18, no such termination may affect options previously granted, nor may an amendment make any change in any option theretofore granted which adversely affects the rights of any participant provided that an Offering Period may be terminated by the Board on an Exercise Date or by the Board’s setting a new Exercise Date with respect to an Offering Period then in progress if the Board determines that termination of the Offering Period is in the best interests of the Company and the stockholders or if continuation of the Offering Period would cause the Company to incur adverse accounting charges in the generally-accepted accounting rules applicable to the Plan.  In addition, to the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any applicable law or regulation), the Company shall obtain stockholder approval in such a manner and to such a degree as so required.
(b.)Without stockholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the Board shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board determines in its sole discretion advisable that are consistent with the Plan.
20.Notices.  All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.
21.Conditions upon Issuance of Shares.  Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant 
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thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.
As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.
22.Information Regarding Disqualifying Dispositions.  By electing to participate in the Plan, each participant agrees to provide any information about any transfer of shares of Common Stock acquired under the Plan that occurs within two years after the first business day of the Offering Period in which such shares were acquired as may be requested by the Company or any Subsidiaries in order to assist it in complying with the tax laws.
23.Right to Terminate Employment.  Nothing in the Plan or in any agreement entered into pursuant to the Plan shall confer upon any Employee the right to continue in the employment of the Company or any Subsidiary, or affect any right which the Company or any Subsidiary may have to terminate the employment of such Employee.
24.Rights as a Stockholder.  Neither the granting of an option nor a deduction from payroll shall constitute an Employee the owner of shares covered by an option.  No Employee shall have any right as a stockholder unless and until an option has been exercised, and the shares underlying the option have been registered in the Company’s share register.
25.Term of Plan.  The Plan became effective upon its adoption by the Board on April 22, 2021 and shall continue in effect through April 22, 2031, unless sooner terminated under Section 19. 
26.Applicable Law.  This Plan shall be governed in accordance with the laws of the State of Delaware, applied without giving effect to any conflict-of-law principles.

8Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

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

 

WITNESSETH:

 

WHEREAS, the Executive
has experience in managing at a senior level a publicly traded company;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    1

    

    

 

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

 

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

 

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

 

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

 

(vii)    engaging
in fraud, misappropriation or embezzlement;

 

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

 

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

 

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

 

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

 

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

 

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

 

    2

    

    

 

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

 

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

 

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

 

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

 

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

 

    3

    

    

 

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

 

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

 

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

 

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

 

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

 

5.    Severance
Payments and Other Matters Related to Termination.

 

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

 

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

 

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

 

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

 

    4

    

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    5

    

    

 

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

 

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

 

9.    Confidential
Information and Restricted Activities.

 

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

 

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

 

    6

    

    

 

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

 

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

 

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

 

    7

    

    

 

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

 

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

 

A.    Charlotte’s
Web

 

B.    Green
Roads; and

 

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

 

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

 

    8

    

    

 

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

 

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

 

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

 

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

 

    9

    

    

 

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

 

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

 

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

 

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

 

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

 

Stephen E. Johnson

10445 Canterbury
Court

Davie, FL 33328

 

and to the Company at:

 

Veritas Farms, Inc.

1512 E. Broward
Blvd., Suite 300

Fort Lauderdale,
FL 33301

Attention: Chairman
of the Board

 

    10

    

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    11

    

    

 

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

 

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

 

    12

     

    

 

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

 

	Veritas Farms, Inc.	 	Executive
	 	 	 	 
	By:	/s/
    Thomas E. Vickers 	 	/s/
    Stephen E. Johnson 
	 	Thomas
    E. Vickers	 	Stephen
    E. Johnson
	 	Chairman
    of the Board	 	

 

     

     

    

 

Exhibit A

 

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

 

1.    Base
Salary. The Company will pay Executive a base salary at the rate of $225,000 per annum through equal installments of $8,653.85 per
bi-weekly pay period, payable in accordance with the regular payroll practices of the Company. This amount may be increased at the discretion
of the Board of Directors and may be adjusted to compensate for annual cost of living increases

 

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

 

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

 

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

 

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

 

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

 

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

 

    1

     

    

 

Exhibit B

 

SEVERANCE PAYMENTS

 

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

 

    1

     

    

 

Exhibit C

 

RELEASE OF CLAIMS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    1

    

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	Signature:	 	 
	 	[insert
    Executive name]	
	 	 	 
	Date
    Signed:	 	 

 

 

 

2

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