Document:

EXHIBIT 10.2

 

COOPERATION
AGREEMENT

 

 

dated as
of

 

 

October 6,
2021

 

 

by and between

 

 

SALINAS
DIVERSIFIED VENTURES, INC., 

a California
Corporation, and Wholly Owned Subsidiary of 

MARIJUANA
COMPANY OF AMERICA, INC., a Utah Corporation 

 

		and	

 

VBF BRANDS,
INC., a California Corporation, a Wholly Owned Subsidiary of SUNSET ISLAND GROUP, INC., a Colorado Corporation. 

 

		and	

 

LORI LIVACICH,
Individually, and as an Affiliate of VBF BRANDS, INC., SUNSET ISLAND GLOBAL, INC. 

 

 

 

This Cooperation
Agreement (this “Agreement”), effective as of October 6, 2021 (the “Effective Date”), is by and among Salinas
Diversified Ventures, Inc., a California corporation (“Salinas”), and wholly owned subsidiary of Marijuana Company of America,
Inc., a Utah corporation (“MCOA”), VBF Brands, Inc., a California corporation (“VBF”), and wholly owned subsidiary
of Sunset Island Group, Inc., a Colorado corporation (“SIGO), and Lori Livacich (“Livacich”) individually, and as Affiliate
and Control Person of VBF and SIGO. Each of VBF, SIGO, Livacich, Salinas, and MCOA may be collectively referred to as the “Parties.”
Nothing herein shall alter any rights or obligations of any Party under the Asset Purchase Agreement or the Management Services Agreement
(referenced below).

 

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RECITALS

 

WHEREAS,
VBF is an owner operator of leased real property located at 20420 Spence Road, Salinas, California, 93908 (“Facility”). A
copy of the lease is attached hereto and incorporated herein by reference as Exhibit A. Livacich is the majority stockholder, principal,
Affiliate, and control person of SIGO and VBF, with sole power to Control and direct VBF’s operations at the Facility. VBF is a
Licensee under cannabis licenses and regulatory permits issued by the City of Salinas, County of Monterey, and the State of California
(“Licensing Authorities”) authorizing the cultivation, nursery growth, distribution, and manufacturing of cannabis. Additionally,
VBF also possesses a weighmaster’s license, provisional business license, tax permit and permits allowing it to operate at the Facility.
All licenses and permits are in full force and effect as of the date hereof (collectively, the “Permits and Licenses).” The
Licenses and Permits are attached hereto and incorporated herein by reference as Exhibit B.

 

WHEREAS,
on October 6, 2021, VBF, MCOA, Salinas and St. George Investments, LLC, a Utah limited liability company, entered into an Asset Purchase
Agreement (“APA”) (“Exhibit C"). The APA provides for VBF’s sale and Salinas’ purchase of 100% of VBF’s
issued and outstanding common stock, and the concurrent application of VBF and Salinas to the Licensing Authorities for the change of
ownership over VBF’s Permits and Licenses resulting in Salinas becoming the owner operator of the Permits and Licenses. The APA
also provides for VBF’s sale and Salinas’ purchase of all of VBF’s fixed assets including VBF’s machinery and
equipment, leasehold improvements, good-will, inventory, current workforce in place, tradenames, trade secrets, intellectual property,
and other tangible and intangible properties concerning the operation of VBF’s California licensed cannabis nursery, cultivation
facility, and operations for the manufacturing and distribution of cannabis and cannabis products, and the related properties, rights,
and assets concerning VBF’s Business.

 

WHEREAS,
as a material inducement to enter into the APA, VBF, SIGO, Livacich, MCOA and Salinas entered into a Management Services Agreement (“MSA”)
(Exhibit D).

 

		1.	The MSA generally provided for Salinas to manage VBF’s facility and business operations with the
continuing and material support of Livacich, who Salinas agreed to retain as a management consultant to the continuing operation (Executive
Employment Contract “Exhibit E”).

		2.	As additional consideration, MCOA agreed to assume certain outstanding promissory notes issued by SIGO
to St. George Investments, LLC, a Utah limited liability company, that are currently in default, and the cancellation of warrants issued
by SIGO to St. George in connection therewith, and the return to treasury of fifty (50) shares of Series A Preferred Stock of VBF (the
“Preferred Shares”, and together with the SIGO Notes, the “SIGO Securities” - “Exhibit F”).

		3.	The transactions between the Parties comprised by the APA, the MSA and the Executive Employment Contract
were further agreed to be conditioned upon VBF and Livacich continuing to meet certain production and revenue projections at the Facility
(“Exhibit G”). The above recitals are qualified completely by the terms and conditions of each of the APA, MSA and Executive
Employment Agreement attached hereto and incorporated herein by reference.

 

 

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NOW, THEREFORE,
in consideration of the above recitals, and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound, the Parties covenant and agree as follows:

 

		1.	Incorporation of Recitals.

 

The above Recitals and
cited Exhibits are incorporated herein by reference and are a material part of this Agreement. The Parties hereto waive any rule of construction
that would prevent any court of competent jurisdiction or arbitrator from construing or interpreting this Agreement based upon the content
of the Recitals.

 

		2.	Obligations of Livacich Under the APA, MSA and this Agreement.

 

a. After the execution
of this Agreement and the APA and MSA, Livacich agrees to diligently pursue and cooperate fully in filing the change of ownership applications
of the Licenses with the Licensing Authorities in favor of Salinas, and comply with all terms and conditions of the APA and MSA; including,
without limitation:

 

		o	Maintain in good order of the Licenses with the Licensing Authorities, including making provision for
any fees payable associated therewith;

 

		o	Cooperate with Salinas to arrange for the change of ownership applications of the Licenses and assisting
Salinas in the application process for the issuance of new licenses in its name; and,

 

		o	Provide material good faith support to Salinas’ application for change of ownership over the Licenses,
including providing in a complete and timely fashion any and all documents, business records, permits and licenses necessary to complete
Salinas’ applications for change of ownership over the licenses.

 

		o	Comply with all Applicable Laws (as hereinafter defined) in the performance of Livacich’s obligations
under this Agreement, the MSA and the APA. “Applicable Laws” means any statute, law, ordinance, regulation, rule, code, order,
constitution, treaty, common law, judgment, decree, other requirement or rule of law of any governmental authority, including, without
limitation, the California Compassionate Use Act, the California Medical Cannabis Regulation and Safety Act, the Adult Use of Marijuana
Act, SB 94 and the Medicinal and Adult Use Cannabis Regulation and Safety Act, and any additional, amended, supplemental or replacement
laws or regulations promulgated or enacted by the State of California or the City of Salinas pertaining to cannabis cultivation, dispensing,
sale, storage, manufacturing, distribution, transportation, testing or other commercial cannabis activities within its jurisdiction; provided,
however, that the term “Applicable Laws” shall not include any federal statute, law, ordinance, regulation, rule, code, order,
constitution, treaty, common law, judgment, decree, or other requirement or rule of law that prohibits any commercial cannabis activity
that is permitted under California law, unless and until the time the federal government legalizes and regulates cannabis.

 

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		o	Diligently comply with all terms and conditions of the MSA.

 

		3.	Further Assurances and Cooperation: Livacich agrees to cooperate in good faith in performing any
further acts, and executing and delivering any documents, which may be reasonably necessary to carry out the conditions precedent and
intent of this Agreement, the MSA and the APA.

 

		4.	Obligations of Salinas and MCOA under the APA, MSA and this Agreement.

 

a. As consideration
for this Agreement, MCOA agrees to assume 100% of the following notes issued by SIGO, in favor of St. George Investments, LLC, including:
(i) that certain Secured Convertible Promissory Note dated December 8, 2017 in the original principal amount of $170,000.00; (ii) that
certain Secured Convertible Promissory Note dated February 13, 2018 in the original principal amount of $4,245,000.00, conditioned upon:

 

		o	Livacich complying with the MSA and achieving "Net Revenues" after the closing of the APA and
related transaction documents, one million dollars ($1,000,000) from Salinas’ operations during the six-month period after closing
of the APA, and her compliance with the terms and conditions of this Agreement, the Management Services Agreement and the Executive Employment
Agreement included as Exhibits A and B to this Agreement. For the purposes of this Agreement, the term “Net Revenue” shall
mean gross revenue less returns and allowances equal to $500,000 each quarter for first year.

 

		5.	Indemnification.

 

		a.	If a Party receives any notice from the Licensing Authorities regarding the Party’s actual or potential
violation of law relating to the Licenses or Operations at the Facility (“Notice of Breach”), the Party shall immediately:
(i) provide the other Party with written notice of the Notice of Breach; (ii) each Party shall use commercially reasonable best efforts
to cure the breach(es) set forth in the Notice of Breach; and (iii) use commercially reasonable best efforts to ensure that the MSA and
Licenses otherwise remains in full force and effect, and are not terminated, with respect to the activities thereunder, it being agreed
and understood that such reasonable best efforts shall include, without limitation, taking the following actions to help facilitate the
continuation of the operations: filing or submitting any documentation to the Licensing Authorities, corresponding with the Licensing
Authorities, and attending any meetings with the Licensing Authorities.

 

		b.	Each Party agrees and acknowledges that it shall not terminate or threaten to terminate the Licenses,
without the written consent of the other Party.

 

		c.	Indemnity of Salinas and MCOA. VBF and SIGO hereby indemnifies and holds Salinas and MCOA (along
with its directors, officers, employees, agents, and shareholders) harmless from any liability, cost or expense (including reasonable
attorneys’ fees) arising out of any claim asserted by a third party against MCOA or Salinas which claim is based on a breach by
VBF, SIGO or Livacich of their obligations hereunder and/or the gross negligence or intentionally wrongful acts or omissions of VBF, SIGO
or Livacich in the performance of their obligations and responsibilities under this Agreement, including, without limitation: (i) VBF,
SIGO and Livacich’s use the Licensed Premises prior to the execution of this Agreement, or of VBF, SIGO and Livacich’s use
of the equipment at the Licensed Premises prior to the execution of this Agreement; and, (ii) events or circumstances that transpired
between VBF, SIGO and/or Livacich and thirdparties prior to the execution of this Agreement. If Salinas seeks indemnification from VBF,
SIGO or Livacich, it shall give VBF, SIGO and/or Livacich notice of such claim, and VBF, SIGO or Livacich shall defend and settle such
claim at their sole expense, provided that Salinas and MCOA shall cooperate in such defense, and further provided that Salinas and MCOA
may elect to engage counsel to participate in such defense at its own expense.

 

		d.	Indemnity of VBF, SIGO and Livacich. Salinas and MCOA hereby indemnifies and holds VBF, SIGO and
Livacich (along with its directors, officers, employees, agents, and shareholders) harmless from any liability, cost or expense (including
reasonable attorneys’ fees) or any suit, action, liability, proceeding, or governmental investigation, pending or threatened, whether
based on statute, regulation or order, tort, contract or otherwise, before any court or governmental authority, arising out of any claim
asserted by a third party against VBF, SIGO and Livacich which claim is based on or arising from (i) a breach of any representation, warranty
or covenant set forth in this Agreement; (ii) a breach by MCOA or Salinas of their respective obligations hereunder and in the performance
of their respective obligations and responsibilities under this Agreement; or, (iii) gross negligence or intentionally wrongful acts of
MCOA or Salinas. If VBF, SIGO or Livacich seeks indemnification from Salinas/MCOA, it shall give Salinas/MCOA notice of such claim, and
Salinas and MCOA shall defend and settle such claim at its sole expense, provided that VBF, SIGO and Livacich shall cooperate in such
defense, and further provided that VBF, SIGO and Livacich may elect to engage counsel to participate in such defense at their own expense.

 

		e.	With the exception of Livacich, the obligations of any other Party pursuant to this Agreement shall not
constitute personal obligations of such Party’s Representatives, and the other Party shall look solely to such Party and to no other
Person for the satisfaction of any liability with respect to this Agreement. The limitations of liability set forth in this Section 5
are in addition to, and not in lieu of, any other limitations of liability or indemnification obligations set forth elsewhere in this
Agreement, in the APA, or in other contracts, agreements, instruments, or other documents.

 

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		6.	Additional Representations and Warranties: In addition to all other representation, warranties
and covenants set forth in this Agreement, each Party represents to the other Party that: (i) it is duly organized, or incorporated validly
existing and in good standing under the laws of the jurisdiction of its formation and is duly qualified and licensed in each jurisdiction
where its activities require such qualification or license; (ii) it has full power, capacity, and authority to enter into this Agreement;
(iii) this Agreement constitutes a legal, binding and valid obligation of each Party, enforceable against each Party in accordance with
the terms set forth within this Agreement; (iv) the execution, performance and delivery of this Agreement will not constitute any breach
or default under any provision of any of its governance documents, contracts, agreements, mortgages, trusts or other documents, or any
order, rule, regulation or law of any jurisdiction that binds it; and (v) it shall comply with all Applicable Laws.

 

		7.	Dispute Resolution.

 

		a.	This Agreement shall be governed and construed in accordance with the internal laws of the State of California
without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction)
that would cause the application of laws of any jurisdiction other than those of the State of California.

 

		b.	In the event of any Claim arising out of or relating to any performance required under this Agreement,
or the interpretation, validity, or enforceability hereof, the Parties hereto shall use their best efforts to settle the Claim. To this
effect, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just
and equitable resolution satisfactory to the Parties. If the Claim cannot be settled through negotiation within a period of seven (7)
days, the Parties agree to attempt in good faith to settle the Claim through mediation, administered by a mediator mutually agreeable
to the Parties, before resorting to arbitration. If they do not reach such resolution, or an agreed upon mediator cannot be identified,
within a period of thirty (30) days, then, upon notice by either party to the other they shall commence arbitration as set forth below.

 

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		c.	The Parties agree to submit any and all Claims, or any dispute related in any way to this Agreement and
the services rendered hereunder, to binding arbitration before JAMS. The arbitration shall be held in accordance with the JAMS then-current
Streamlined Arbitration Rules & Procedures (and no other JAMS rules), which currently are available at: http://www.jamsadr.com/rules-streamlined-arbitration.
The arbitrator shall be either a retired judge, or an attorney who is experienced in commercial contracts and licensed to practice law
in California, selected pursuant to the JAMS rules. The Parties expressly agree that any arbitration shall be conducted in the Los Angeles
County, California. Each party understands and agrees that by signing this Agreement, such party is waiving the right to a jury. The arbitrator
shall apply California substantive law in the adjudication of all Claims. Notwithstanding the foregoing, either party may apply to the
Superior Courts located in Los Angeles County, California for a provisional remedy, including but not limited to a temporary restraining
order or a preliminary injunction. The application for or enforcement of any provisional remedy by a party shall not operate as a waiver
of the Agreement to submit a dispute to binding arbitration pursuant to this provision. In no event shall a Claim be adjudicated in Federal
District Court. In the event that either party commences a Claim in Federal District Court or moves to remove such action to Federal District
Court, the Parties hereby mutually agree to stipulate to a dismissal of such Federal Claim with prejudice. After a demand for arbitration
has been filed and served, the Parties may engage in reasonable discovery in the form of requests for documents, interrogatories, requests
for admission, and depositions. The arbitrator shall resolve any disputes concerning discovery. The arbitrator shall award costs and reasonable
attorneys’ fees to the prevailing party, as determined by the arbitrator, to the extent permitted by California law. The arbitrator's
decision shall be final and binding upon the Parties. The arbitrator's decision shall include the arbitrator’s findings of fact
and conclusions of law and shall be issued in writing within thirty (30) days of the commencement of the arbitration proceedings. The
prevailing party may submit the arbitrator’s decision to Superior Courts located in Los Angeles County for an entry of judgment
thereon.

 

		8.	Confidential Information. Each Party agrees that it shall treat in confidence all documents, materials
and other information that it obtains regarding the other Party (including its shareholders, members, partners, owners, beneficial owners,
directors, officers, managers and agents) during the course of (a) the negotiations leading to the execution of, and consummation of the
transactions contemplated in, this Agreement or (b) the investigation provided for in, and the preparation of, this Agreement and other
related documents (“Confidential Information”). Confidential Information shall not be communicated to any third party (other
than the Parties’ respective counsel, accountants, financial advisors, lenders, or other agents or representatives, each of whom
also should be bound to confidentiality by agreement with the retaining Party). No Party shall use any Confidential Information in any
manner whatsoever except solely for purposes related to the transaction contemplated by this Agreement. The obligation of each Party to
treat Confidential Information in confidence shall not apply to any Confidential Information that

 

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(a) is or becomes
available to the Party, other than in violation of a confidentiality obligation to the other Party, from a source other than that Party
or its counsel, accountants, financial advisors, or other agents or representatives; (b) is or becomes available to the public other than
as a result of disclosure by that Party or its counsel, accountants, financial advisors, or other agents or representatives; (c) is required
to be disclosed by the Party under applicable law or judicial process, but only to the extent it must be so disclosed; or (d) as to which
the Party reasonably deems disclosure necessary after consultation with the other Party to obtain any of the consents or approvals contemplated
by this Agreement.

 

		9.	Governing Law: This Agreement shall be governed by and construed in accord with the laws of the
State of California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California.

 

		10.	Amendments: This Agreement may not be amended or modified orally and may only be amended or modified
in a writing signed by each Party affected by the amendment or modification.

 

		11.	Severability: If any provision in this Agreement is invalid, illegal, or unenforceable, then the
validity, legality and enforceability of the remaining provisions hereof will not in any way be affected or impaired thereby and only
the invalid, illegal or unenforceable provisions shall be null and void.

 

		12.	No Assignment: No Party hereto may assign their respective duties hereunder without the express
written consent of the other Party.

 

		13.	Binding Effect: This Agreement binds and inures to the benefit of the Parties, their assigns, representatives,
beneficiaries, and successors, and each of them.

 

		14.	Waiver: No failure on the part of any Party to exercise, and no delay in exercising, any right
under this Agreement shall operate as a waiver; nor shall any single or partial exercise of any right under this Agreement preclude any
other or further exercise of that right or the exercise of any other right.

 

		15.	Counterparts: This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same Agreement. This Agreement may also be executed and delivered
by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

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IN WITNESS WHEREOF,
the Parties have carefully read this Agreement, understand, and agree to all its provisions, and intending to be legally bound, have signed
this Agreement as their own free act, being fully aware of its final and binding effect.

 

	VBF BRANDS, INC.	 
	a California corporation	 
	 	 	 
	By:	 	 
	 	Lori Livacich	 
	 	President, Chief Executive Officer	 
	 	 	 
	SUNSET ISLAND GROUP, INC.  a Colorado corporation	 
	 	 	 
	By:	 	 
	 	Lori Livacich	 
	 	President, Chief Executive Officer	 
	 	 	 
	SALINAS DIVERSIFIED VENTURES, INC.	 
	 	a California corporation	 
	 	 	 
	By:	 	 
	 	Jesus M. Quintero	 
	 	President, Chief Executive Officer	 
	 	 	 
	 	 	 
	MARIJUANA COMPANY OF AMERICA, INC.	 
	a Utah corporation	 
	 	 	 
	By:	/s/Jesus Quintero	 
	 	Jesus M. Quintero	 
	 	President, Chief Executive Officer	 
	 	 	 
	 	 	 
	 	LORI LIVACICH 	 
	 	An Individual 	 
	 	 	 
	By:	/s/ Lori Livacich 	 
	 	Lori Livacich	 
	 	 	 

 

8EXHIBIT 10.3

 

EXECUTIVE EMPLOYMENT
AGREEMENT

 

THIS EXECUTIVE
EMPLOYMENT AGREEMENT (“Agreement”) is entered into and effective as of, October 6, 2021 (the "Effective Date"),
by and between Salinas Diversified Ventures, Inc., a California corporation (the "Company"), 633 5th Avenue, Ste.
2826, Los Angeles, CA 90071, and Lori Livacich, an individual residing at 20420 Spence Road, Salinas, CA 93908 ("Executive"),
with reference to the following facts:

 

RECITALS

A.       
The Company desires to obtain the association and services of Executive as Chief Executive Officer and is willing to engage her
services on the terms and conditions set forth below.

B.       
Executive desires to enter into this Agreement with the Company for a specific period of time and is willing to do so under the
following terms and conditions.

 

C.       
Executive and Company enter into this Agreement as a material condition and inducement to the Company’s Asset Purchase Agreement
(“APA”), Management Services Agreement (“MSA”) and Cooperation Agreement between it and the Company, Marijuana
Company of America, Inc., Executive, Sunset Island Group, Inc., VBF Brands, Inc. (copies of the APA, MSA and Cooperation Agreement are
appended hereto and made a material part hereof.

 

AGREEMENT

 

In consideration
of the forgoing recitals and of the mutual promises and conditions set forth herein, the parties hereto agree as follows:

		1.	Employment. The Company hereby agrees to employ Executive as Chief Executive Officer, and
Executive agrees to accept employment upon the terms and conditions set forth herein. Executive shall report to and have such duties and
responsibilities as may be delegated or assigned from time to time by Mr. Jesus Quintero, or in his absence, the Board of Directors of
Salinas Diversified Ventures, Inc. Executive agrees to faithfully devote her time, energy, and abilities to the proper and efficient discharge
of her duties.

		2.	Term. Subject to the termination provisions in Section 5 hereof, the term of Executive's
employment shall be for a 24-month period, commencing as of the Effective Date and, subject to Section 5, ending October 6, 2023, (the
"Term").

    	 

    	 

    

 

 

		3.	Compensation.

3.1     
Signing Bonus. as a signing bonus, Company will pay Executive $250,000.

3.2     
Salary. For all services as Chief Executive Officer that Executive renders to the Company during the Term of this Agreement,
Executive will be compensated with a monthly payment of $20,000; twenty percent (20%) of “Net Revenues” above $2 million quarterly
from operations at the Salinas facility, beginning upon the closure of the APA and the Effective Date of this Agreement; and, a $250,000
performance bonus, payable after six months after the Effective Date, conditioned upon Executive meeting the agreed to “Net Revenue”
target of one million dollars ($1,000,000) from Salinas’ operations during the six month period after closing of the APA, and her
compliance with the terms and conditions of this Agreement, the Management Services Agreement and the Cooperation Agreement included as
Exhibits A and B to this Agreement. For the purposes of this Agreement, the term “Net Revenue” shall mean gross revenue less
returns and allowances equal to $500,000 each quarter for first year.

3.3     
Expenses. During the Term of this Agreement, the Company shall reimburse Executive for reasonable and authenticated
out-of-pocket expenses incurred in connection with performance of Executive’s duties hereunder, including (without limitation) travel
expenses, food and lodging while away from home, and entertainment, subject to such policies as the Company may from time to time reasonably
establish for its employees. Executive shall provide the Company with any and all documentation necessary to account for such expenses.
Any “Extraordinary Expenses” reasonably expected to exceed $3,000 must be pre-approved by the Company. For the purposes of
this Agreement, the term “Extraordinary Expenses” means those costs not related to the commercially reasonable and customary
fixed monthly expenses otherwise agreed upon in consultation with the Company for the Company’s operations.

3.4     
Other Benefits. Subject to the discretion of the Company, upon Executive meeting the performance goals and other
terms and conditions referenced in Section 3.2, the Company may issue options to Executive and/or to Executive’s management team,
including key employees to purchase equity in the Company on a cash or cashless basis.

		4.	Proprietary Information. Executive acknowledges that Executive currently has knowledge,
and during the term of this Agreement will gain further knowledge, of information not generally known about the Company and which gives
the Company an advantage over its competitors, including (without limitation) information of a technical nature, such as "know how,"
formulae, secret processes or machines, computer programs, inventions and research projects, and information of a business nature, such
as information about costs, profits, markets, sales, Company finances, employees, lists of customers and other information of a similar
nature to the extent not available to the public, and plans for future developments (collectively, “Confidential Information").
Executive agrees to keep secret all such Confidential Information of the Company, including information received in confidence by the
Company from others, and agrees not to disclose any such Confidential Information to anyone outside the Company except as required in
the course of her duties, either during or after her employment.

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		5.	Termination of Employment. This Agreement is terminable prior to the expiration of the Term
in the manner and to the extent set forth in this Section 5, and not otherwise.

5.1     
Termination for Cause. The Company may terminate this Agreement at any time without further delay for Executive's
willful misconduct including, but not limited to, fraud, breach of fiduciary duty, dishonesty, willful breach or habitual neglect of duties,
theft, criminal conviction, disclosure of Confidential Information, and engagement in any activity materially adverse to the Company during
the Term of this Agreement. In the event that Executive fails to satisfy the conditions of employment as determined by the Company, the
Cooperation Agreement and the Management Services Agreement, her employment shall terminate upon notice to Executive and this Agreement
shall terminate with no further obligation for compensation by the Company.

5.2     
Failure to Achieve Net Revenue Target. This Agreement terminates if Executive fails to meet Net Revenue target of $1 million
dollars within six months.

5.3     
Effect of Termination. If not terminated for Cause, the Company agrees to pay Executive her pro-rated annual salary
from the date of termination.

5.4     
Cooperation. The parties agree that certain matters in which

the Executive
will be involved during the Term may necessitate the Executive’s cooperation in the future. Accordingly, following the termination
of the Executive’s employment for any reason, to the extent reasonably requested by the Company, the Executive shall cooperate with
the Company in connection with matters arising out of the Executive’s service to the Company; provided that, the Company shall make
reasonable efforts to minimize disruption of the Executive’s other activities. The Company shall reimburse the Executive for reasonable
expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such
matters, the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date.

5.5     
Exit Obligations. Upon termination of the Executive’s

employment,
the Executive shall (i) provide or return to the Company any and all Company property, including keys, key cards, access cards, identification
cards, security devices, employer credit cards, network access devices, computers, cell phones, smartphones, PDAs, pagers, fax machines,
equipment, speakers, webcams, manuals, reports, files, books, compilations, work product, e-mail messages, recordings, tapes, disks, thumb
drives or other removable information storage devices, hard drives, negatives and data and all Company documents and materials belonging
to the Company and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information,
that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or any of its business
associates or created by the Executive in connection with her employment by the Company; and (ii) delete or destroy all copies of any
such documents and materials not returned to the Company that remain in the Executive’s possession or control, including those stored
on any non-Company devices, networks, storage locations, and media in the Executive’s possession or control.

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5.6     
Specific Enforcement. Executive is obligated under the Agreement to render service of a special, unique, unusual,
extraordinary, and intellectual character, thereby giving this Agreement peculiar value, so that the loss thereof cannot be reasonably
or adequately compensated in damages in an action at law. Therefore, in addition to other remedies provided by law, the Company shall
have the right during the Term to compel specific performance hereof by Executive and/or obtain injunctive relief against the performance
of services elsewhere by Executive, without the posting of any bond or other security. The aforementioned equitable relief shall be in
addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief. In the event the Company seeks and
obtains legal and/or equitable relief under this Section, the Company shall recover its attorney fees and costs from Executive.

6.0 Governing
Law & Dispute Resolution. This Agreement, for all purposes, shall be construed in accordance with the laws of California without
regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only
in a state or federal court located in the state of California county of San Diego. The parties hereby irrevocably submit to the exclusive
jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

7.0 Attorney
Fees. The prevailing party in any legal action to enforce or construe this Agreement shall recover its reasonable attorney fees
as an element of costs.

8.0 Tax
Consequences. The Company shall have no obligation to Executive with respect to any tax obligations incurred as the result of
or attributable to this Agreement or arising from any payments made or to be made hereunder. Any distributions made pursuant to this Agreement
shall be subject to such withholding and reports as may be required by any then-applicable laws or regulations of any state or federal
taxing authority.

9.0 Indemnification.
In the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative (a “Proceeding”), other than any Proceeding initiated by the Executive or the Company related
to any contest or dispute between the Executive and the Company or any of its affiliates with respect to this Agreement, the Management
Services Agreement, the Cooperation Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive
is or was an officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director,
officer, member, employee, or agent of another corporation or a partnership, joint venture, trust, or other enterprise, the Executive
shall be indemnified and held harmless by the Company to the fullest extent applicable to any other officer or director of the Company
to the maximum extent permitted under applicable law and the Company’s bylaws from and against any liabilities, costs, claims, and
expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees). Costs and expenses
incurred by the Executive in defense of such Proceeding (including attorneys’ fees) shall be paid by the Company in advance of the
final disposition of such litigation upon receipt by the Company of: (i) a written request for payment; (ii) appropriate documentation
evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought; and (iii) an undertaking adequate
under applicable law made by or on behalf of the Executive to repay the amounts so paid if it shall ultimately be determined that the
Executive is not entitled to be indemnified by the Company under this Agreement.

    	4 

    	 

    

 

10.0 Waiver.
The failure to enforce any provision of this Agreement shall not be construed as a waiver of any such provision, nor prevent a party thereafter
from enforcing the provision or any other provision of this Agreement. The rights granted the parties are cumulative, and the election
of one shall not constitute a waiver of such party's right to assert all other legal and equitable remedies available under the circumstances.

11.0 Notices.
Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company, to the attention of the Board
of Directors, at the address of its executive office set forth above, and any notice to be given to Executive shall be addressed to her
at the residence address set forth above, or such other address as Company and/or Executive may hereafter designate in writing to the
other. Any notice shall be deemed duly given when personally delivered or five (5) days after deposit in U.S. mail by registered or certified
mail, postage prepaid. The date of deposit, as evidenced by the receipt for certified mail, shall be conclusive proof of the delivery
date.

12.0 Severability.
The provisions of this Agreement are severable, and if any provision of this Agreement shall be held to be invalid or otherwise unenforceable,
in whole or in part, the remainder of the provisions or enforceable parts thereof, shall not be affected thereby.

13.0 Assignment.
Neither Executive nor the Company may assign this Agreement without the prior written consent of the other; provided that this Agreement
may be assigned to any successor to the Company's business without Executive's consent. The rights and obligations of the Company under
this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company, and Executive's
rights under this Agreement shall inure to the benefit of and be binding upon her heirs and executors.

14.0 Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing
and signed by the Executive and by The Board of Directors of the Company.

 

 

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	EXECUTIVE:  	 	SALINAS DIVERSIFIED VENTURES, INC.  
	 	 	 
	 	 	 
	 	 	 
	/s/ Lori Livacich	 	/s/ Jesus Quintero
	LORI LIVACICH  	 	JESUS QUINTERO  
	 	 	CHIEF EXECUTIVE OFFICER

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