Document:

Exhibit 10.4
CPI CARD GROUP INC.
OMNIBUS INCENTIVE PLAN
RESTRICTED STOCK UNIT AGREEMENT
This RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) is made effective as of October 2, 2020 (the “Grant Date”) by and between CPI Card Group Inc., a Delaware corporation (the “Company”), and Scott Scheirman (the “Participant”), pursuant to the CPI Card Group Inc. Omnibus Incentive Plan, as in effect and as amended from time to time (the “Plan”). Capitalized terms that are not defined herein shall have the meanings given to such terms in the Plan.
WHEREAS, the Company desires from time to time to grant Awards with respect to Shares to certain key Employees, Directors and Consultants of the Company and its Subsidiaries or Affiliates;
WHEREAS, the Company has adopted the Plan in order to effect such Awards; and
WHEREAS, the Participant is an Eligible Recipient as contemplated by the Plan, and the Committee has determined that it is in the interest of the Company to grant this Award to the Participant.
NOW, THEREFORE, in consideration of the premises and subject to the terms and conditions set forth herein and in the Plan, the parties hereto agree as follows:
1.         Grant and Vesting of Restricted Stock Units.
(a)        As of the Grant Date, the Participant will be credited with 54,757 Restricted Stock Units. Each Restricted Stock Unit is a notional amount that represents one unvested Share and constitutes the right, subject to the terms and conditions of the Plan and this Agreement, to distribution of a Share if and when the Restricted Stock Unit vests.
(b)        The Restricted Stock Units shall fully vest on the date that is two years after the Grant Date. Such vesting period is subject to the Participant’s continuous service with the Company or a Subsidiary or Affiliate thereof, as applicable, whether as an Employee, Director or Consultant (“Service”), from the Grant Date through such vesting date, except as may otherwise be provided in Sections 3 and 4 hereof.
2.         Rights as a Stockholder.
(a)        Unless and until a Restricted Stock Unit has vested and the Share underlying it has been distributed to the Participant, the Participant will not be entitled to vote in respect of that Restricted Stock Unit or that Share.
(b)        If the Company declares a cash dividend on its Shares, then, on the payment date of the dividend, the Participant will be credited with dividend equivalents equal to the amount of cash dividend per Share multiplied by the number of Restricted Stock Units credited to the Participant through the record date. The dollar amount credited to the Participant under the 
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preceding sentence will be credited to an account (“Account”) established for the Participant for bookkeeping purposes only on the books of the Company. The balance in the Account will be subject to the same terms regarding vesting and forfeiture as the Participant’s Restricted Stock Units awarded under this Agreement, and will be paid in cash in a single sum at the time that the Shares associated with the Participant’s Restricted Stock Units are delivered (or forfeited at the time that the Participant’s Restricted Stock Units are forfeited).
3.         Termination of Service.
(a)        Continuous Service Required. Except as may otherwise be provided in the Participant’s employment or other services agreement with the Company, the Participant shall forfeit unvested Restricted Stock Units upon a termination of Service occurring for any reason prior to the vesting of the Restricted Stock Units as described in Section 1(b) (including for or without Cause or due to the Participant’s voluntary resignation for any reason), other than due to the Participant’s (i) death or Disability or (ii) Qualifying Termination (as defined below). For purposes of this Agreement, the terms “Cause” and “Disability” shall have the meanings set forth in that that certain Employment and Non-Competition Agreement by and between the Participant and the Company, dated September 25, 2017 (the “Employment Agreement”).
(b)        Termination due to Death or Disability. Notwithstanding the foregoing, in the event that the Participant’s Service terminates by reason of the Participant’s death or Disability prior to the vesting of the Restricted Stock Units as described in Section 1(b), unvested Restricted Stock Units shall vest in full as of the date of such termination of Service.
4.         Qualifying Terminations Following a Change in Control.
(a)        Qualifying Termination. Notwithstanding any language in the Plan or the Participant’s employment or other services agreement with the Company to the contrary, the Restricted Stock Units will not vest solely upon a Change in Control unless the Restricted Stock Units are not assumed by the Company’s successor or converted to an equivalent value award upon substantially the same terms effective immediately following the Change in Control. However, if the Participant experiences a Qualifying Termination, unvested Restricted Stock Units will immediately vest in full. A “Qualifying Termination” occurs if, within six (6) months prior to or two (2) years following a Change in Control, the Participant’s Service is terminated (i) by the Company for a reason other than Cause or Disability (including termination as a result of the Company’s election not to renew the Term pursuant to Section 2.1 of the Employment Agreement) or (ii) by the Participant for Good Reason.
(b)        Good Reason.  For purposes of this Agreement, “Good Reason” shall have the same meaning set forth in that certain 2021 Executive Retention Agreement, dated as of October 2, 2020, between the parties.
5.         Timing and Form of Payment.
Once a Restricted Stock Unit vests, the Participant will be entitled to receive a Share in its place. Delivery of the Share will be made as soon as administratively feasible following the vesting of the associated Restricted Stock Unit. Shares will be credited to an account established for the 
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benefit of the Participant with the Company’s administrative agent. The Participant will have full legal and beneficial ownership of the Shares at that time.
6.         Tax Withholding.
The Company or any Affiliate thereof shall have the power to withhold, or require the Participant to remit to the Company or such Affiliate thereof, cash or Shares that are distributable to the Participant with respect to the Restricted Stock Units in an amount sufficient to satisfy the federal, state, and local withholding tax requirements, both domestic and foreign, relating to such transaction, and the Company or such Affiliate thereof may defer payment of cash or issuance of Shares until such requirements are satisfied; provided, however, that such amount may not exceed the maximum statutory withholding rate. The Participant shall be entitled to satisfy the amount of any such required tax withholding by having the Company withhold from the Shares otherwise distributable to the Participant upon vesting of the Restrictive Stock Units a number of Shares having a Fair Market Value equal to the amount of such required tax withholdings.
7.         Non-Competition, Non-Solicitation and Non-Disparagement.
(a)        Restrictive Covenants. In exchange for good and valuable consideration, including the Restricted Stock Units granted herein, the sufficiency of which is acknowledged, the Participant agrees as follows (the “Restrictive Covenants”):
(i)         Duties of Confidentiality. In recognition of the Confidential Information as outlined below, the Participant agrees that until the Confidential Information becomes publicly available (other than through a breach by the Participant or by anyone else who has a legal obligation to maintain confidentiality), the Participant shall: (i) hold and safeguard all Confidential Information in trust for the Company and its successors and assigns; (ii) not appropriate or disclose or make available to anyone for use outside of the Company’s organization at any time, either during the Participant’s Service with the Company or subsequent to the Participant’s termination of Service with the Company for any reason, any Confidential Information, whether or not developed by the Participant, except as required in the performance of the Participant’s duties to the Company; (iii) keep in strictest confidence any Confidential Information; and (iv) not disclose or divulge, or allow to be disclosed or divulged by any person within the Participant’s control, to any person, firm, or corporation, or use directly or indirectly, for the Participant’s own benefit or the benefit of others, any Confidential Information.
(ii)       Non-Disclosure. At all times during the Participant’s Service and thereafter, the Participant shall not, without the Company’s prior written consent: (i) use or exploit for any purpose not related to the Participant’s duties as an employee of the Company, or (ii) disclose to any person or entity, other than an officer, director, or employee of the Company to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Participant of his or her duties for the Company, or
(A) which is under a duty of confidentiality to the Company to maintain the confidentiality of the Company’s information or
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(B) to which the Company was instructed by a third party to disclose such third party’s Confidential information,
any Confidential Information belonging to the Company or its clients or business partners or marketing partners; provided, however, that Confidential Information shall not include any information known or readily available to the public (other than as a result of an unauthorized disclosure by the Participant).
(iii)      Trade Secrets; Whistleblower Protection.
(A)       18 U.S.C. § 1833(b) provides: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, the parties to this Agreement have the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. The parties also have the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.
(B)       Notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as to impede the Participant (or any other individual) from reporting possible violations of federal law or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures under the whistleblower provisions of federal law or regulation.  The Participant does not need the prior authorization of the Company to make any such reports or disclosures and the Participant shall not be required to notify the Company that such reports or disclosures have been made.
(iv)       Non-Competition and Non-Solicitation. During the period of the Participant’s Service and for one (1) year following the termination thereof (the “Restricted Period”), the Participant shall not commit any of the acts described in Sections 3.3, 3.4 or 3.5 of the Employment Agreement, without the Company’s prior written consent.
(v)        Participant’s Duties on Termination. In the event of termination of Service with the Company, regardless of the circumstances of the termination, the Participant agrees to deliver promptly to the Company all of its property and all Confidential Information, in whatsoever form, including, but not limited to equipment, software, data files, databases, notebooks, documents, memoranda, reports, files, samples, books, 
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correspondence, lists, or other written or graphics records relating to the Company which are or have been in his/her possession or under his/her control.
(vi)       Other Covenants. For the avoidance of doubt, the Restrictive Covenants are in addition to, and not in lieu of, any restrictive covenants to which the Participant may otherwise be subject, whether under the terms of his or her employment or services agreement or otherwise.
(vii)     Acknowledgement. The Participant acknowledges that these Restrictive Covenants are reasonably necessary to protect the Company’s and its clients’ and business partners’ legitimate business interests.  The Participant also acknowledges that by serving in the position of President and Chief Executive Officer, he/she is in an executive/management level position and has been entrusted with access to trade secrets and confidential information that, if made available to non-Company employees, would cause the Company to suffer damages which will be difficult if not impossible to calculate because of the significant time, effort and expense the Company expended in developing such trade secrets and confidential information.  The Participant shall confirm, in writing, that he/she is complying with the terms of this provision in response to any inquiry by the Company. The Participant further acknowledges and agrees that the Participant’s award of the Restricted Stock Units pursuant to this Agreement shall satisfy the Company’s obligations with respect to 2021 pursuant to Section 2.3(c) of the Employment Agreement.
(b)        Reasonableness of Restrictions. The Participant agrees that the scope and duration of the Restrictive Covenants are reasonable and necessary to protect the legitimate business interests of the Company. The Participant also agrees that these Restrictive Covenants will not preclude the Participant from obtaining other gainful employment in his or her profession.
(c)        Remedies for Breach.
(i)         Forfeiture of Award. In the event of the Participant’s material breach of any of the Restrictive Covenants, the Restricted Stock Units (whether vested or unvested) shall immediately be forfeited.
(ii)       Recovery of Shares. In the event of the Participant’s material breach of any of the Restrictive Covenants, the Company shall be entitled to recover any Shares acquired upon the vesting of the Restricted Stock Units and, if the Participant has previously sold any Shares derived from the Restricted Stock Units, the Company shall also have the right to recover from the Participant the economic value thereof.
(iii)      Other Relief. In the event of the Participant’s actual or threatened breach of this Agreement, the Participant agrees that the Company will be entitled to seek provisional and injunctive relief in addition to any other available remedies at law or equity.
8.         Nontransferability of Restricted Stock Units.
The Restricted Stock Units granted hereunder may not be sold, transferred, pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of 
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descent and distribution or, on such terms and conditions as the Committee shall establish, to a permitted transferee.
9.         Beneficiary Designation.
The Participant may from time to time name any beneficiary or beneficiaries (who may be named contingently or successively) by whom any right under the Plan and this Agreement is to be exercised in case of his or her death. Each designation will revoke all prior designations by the Participant, shall be in a form reasonably prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Committee during his or her lifetime.
10.       Transfer of Data.
The Participant consents to the Company or any Affiliate thereof processing data relating to the Participant for legal, personnel, administrative and management purposes and in particular to the processing of any sensitive personal data relating to the Participant. The Company may make such information available to any Affiliate thereof, those who provide products or services to the Company or any Affiliate thereof (such as advisers and payroll administrators), regulatory authorities, potential purchasers of the Company or the business in which the Participant works, and as may be required by law.
11.       Securities Law Requirements.
(a)        The Restricted Stock Units are subject to the further requirement that, if at any time the Committee determines in its discretion that the listing or qualification of the Shares subject to the Restricted Stock Units under any securities exchange requirements or under any applicable law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the issuance of Shares under it, then Shares will not be issued under the Restricted Stock Units, unless the necessary listing, qualification, consent or approval has been effected or obtained free of any conditions not acceptable to the Committee.  If the Committee determines that such listing, qualification, consent or approval cannot be so obtained, the Company will pay the Participant an amount equal to the fair market value on the date on which the Restricted Stock Units vested of a number of Shares equal to the number of vested Restricted Stock Units, less applicable tax withholding.
(b)        No person who acquires Shares pursuant to the Restricted Stock Units reflected in this Agreement may, during any period of time that person is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the Securities Act of 1933 (the “1933 Act”)) sell the Shares, unless the offer and sale is made pursuant to (i) an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) an appropriate exemption from the registration requirements of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.  With respect to individuals subject to Section 16 of the Exchange Act, transactions under this Agreement are intended to comply with all applicable conditions of Rule 16b-3, or its successors under the Exchange Act. To the extent any provision of this Agreement or action by the Committee fails to so comply, the Committee may determine, to the extent permitted by law, that the provision or action will be null and void.
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12.       No Guarantee of Continued Service.
Nothing in the Plan or in this Agreement shall interfere with or limit in any way the right of the Company or an Affiliate thereof to terminate the Participant’s Service at any time or confer upon the Participant any right to continued Service.
13.       No Rights as a Stockholder.
Except as provided in Section 2 above or as otherwise required by law, the Participant shall not have any rights as a stockholder with respect to any Shares covered by the Restricted Stock Units granted hereunder prior to the date on which he or she is recorded as the holder of those Shares on the records of the Company.
14.       Interpretation; Construction.
Any determination or interpretation by the Committee under or pursuant to this Agreement shall be final and conclusive on all persons affected hereby; provided that any dispute over the reason for the Participant’s termination of employment, or whether the Participant has violated any provision of Section 7 of this Agreement, shall be resolved as if such dispute had arisen under the Employment Agreement (including Section 8.15 thereof). Except as otherwise expressly provided in this Agreement or the Plan, in the event of a conflict between any term of this Agreement and the terms of the Plan, the terms of the Plan shall control.
15.       Amendments.
The Committee may, in its sole discretion, at any time and from time to time, alter or amend this Agreement and the terms and conditions of the unvested portion of the Restricted Stock Units (but not any portion of the Restricted Stock Units that has previously vested) in whole or in part, including without limitation, amending the criteria for vesting set forth in Section 1 hereof and substituting alternative vesting criteria; provided that such alteration, amendment, suspension or termination shall not adversely alter or impair the rights of the Participant under the Restricted Stock Units without the Participant’s consent. The Company shall give written notice to the Participant of any such alteration or amendment of this Agreement as promptly as practicable after the adoption thereof. This Agreement may also be amended by a writing signed by both the Company and the Participant.
16.       Miscellaneous.
(a)        Notices. All notices, requests, demands, letters, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered personally, (B) mailed, certified or registered mail with postage prepaid, (C) sent by next-day or overnight mail or delivery, or (D) sent by fax, as follows:
(i)         If to the Company:
CPI Card Group Inc.
10026 West San Juan Way
Littleton, CO 80127
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Attention:  Chief Human Resources Officer
Phone:  720-681-6271
(ii)       If to the Participant, to the Participant’s last known home address,
or to such other person or address as any party shall specify by notice in writing to the Company. All such notices, requests, demands, letters, waivers and other communications shall be deemed to have been received (w) if by personal delivery on the day after such delivery, (x) if by certified or registered mail, on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered, or (z) if by fax, on the day delivered, provided that such delivery is confirmed.
(b)        Binding Effect; Benefits. This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.
(c)        No Guarantee of Future Awards. This Agreement does not guarantee the Participant the right to or expectation of future Awards under the Plan or any future plan adopted by the Company.
(d)        Waiver. Either party hereto may by written notice to the other (i) extend the time for the performance of any of the obligations or other actions of the other under this. Agreement, (ii) waive compliance with any of the conditions or covenants of the other contained in this Agreement and (iii) waive or modify performance of any of the obligations of the other under this Agreement. Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of either party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained herein. The waiver by either party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such party’s rights or privileges hereunder or shall be deemed a waiver of such party’s rights to exercise the same at any subsequent time or times hereunder.
(e)        Code Section 409A Compliance. The Restricted Stock Units are intended to be exempt from or comply with the requirements of Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding any provision of this Agreement, to the extent that the Committee determines that any portion of the Restricted Stock Units granted under this Agreement is subject to Code Section 409A and fails to comply with the requirements of Code Section 409A, notwithstanding anything to the contrary contained in the Plan or in this Agreement, the Committee reserves the right to amend, restructure, terminate or replace such portion of the Restricted Stock Units in order to cause such portion of the Restricted Stock Units to either not be subject to Code Section 409A or to comply with the applicable provisions of such section.
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(f)        Applicable Law. This Agreement shall be governed by and construed in accordance with the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws. The Company and the Participant agree that the jurisdiction and venue for any disputes arising under, or any action brought to enforce (or otherwise relating to), this Agreement shall be exclusively in the courts in the State of Colorado, County of Arapahoe or Denver, including the Federal Courts located therein (should Federal jurisdiction exist), and the Company and the Participant hereby submit and consent to said jurisdiction and venue.
(g)        Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.
(h)        Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.
(i)         Erroneously Awarded Compensation. Notwithstanding any provision in the Plan or in this Agreement to the contrary, this Award shall be subject to any compensation recovery and/or recoupment policy adopted and amended from time to time by the Company to comply with applicable law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or to comport with good corporate governance practices.
— Signature page follows —
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Notwithstanding anything in this Agreement or in the Plan to the contrary, the Committee hereby reserves the right, in its sole discretion, to terminate and cancel this Award if the Participant fails to accept this Agreement on or prior to October 30, 2020.
IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first above written.
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	CPI CARD GROUP INC.

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	By: 
	Nicholas Peters, Compensation Committee of

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	the Board of Directors

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	Signature:
	/s/ Nicholas Peters

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	PARTICIPANT

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	Name:
	Scott Scheirman

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	Signature:
	/s/ Scott Scheirman

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Note to Participant: Any conflicts of interest or other disclosures to be made by Participant at the time of signing this Agreement shall be set forth on a Conflicts of Interest Disclosure Statement attached to this Agreement. Participant has not made any disclosures if there is no such statement attached.
There is ☐ is not ☒ a Conflicts of Interest Disclosure Statement attached to this Agreement.
Participant’s Initials: Scott Scheirman

10Exhibit 10.1

 

 

 

INDEPENDENT DIRECTOR AGREEMENT

 

This INDEPENDENT DIRECTOR AGREEMENT is dated
October 30, 2020 (the "Agreement") by and between Cannabis Global, Inc., a Nevada corporation (the "Company"),
and Jim Riley, an individual (the "Director").

 

WHEREAS, the Company appointed the Director
effective as of the date hereof (the "Effective Date") and desires to enter into an agreement with the Director with
respect to such appointment; and

 

WHEREAS, the Director is willing to accept such
appointment and to serve the Company on the terms set forth herein and in accordance with the provisions of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein, the parties hereto agree as follows:

 

1. Position

 

Subject to the terms and provisions of this
Agreement, the Company shall cause the Director to be appointed, and the Director hereby agrees to serve the Company in such position
upon the terms and conditions hereinafter set forth, provided, however, that the Director's continued service on the Board of Directors
of the Company (the "Board") after the initial one-year term on the Board shall be subject to any necessary approval
by the Company's stockholders.

 

2. Duties.

 

(a) During the Directorship Term (as defined
herein), the Director make reasonable business efforts to attend Board meetings and quarterly pre-scheduled Board and Management
conference calls, serve on appropriate subcommittees as reasonably requested and agreed upon by the Board, make himself available
to the Company at mutually convenient times and places, attend external meetings and presentations when agreed on in advance, as
appropriate and convenient, and perform such duties, services and responsibilities, and have the authority commensurate to such
position.

 

    	1  

    	 

    

 

 

(b) The Director will use his best efforts to
promote the interests of the Company. The Company recognizes that the Director (i) is or may become a full-time executive employee
of another entity and that his responsibilities to such entity must have priority and (ii) sits or may sit on the board of directors
of other entities, subject to any limitations set forth by the Sarbanes-Oxley Act of 2002 and limitations provided by any exchange
or quotation service on which the Company's common stock is listed or traded. Notwithstanding the same, the Director will provide
the Company with prior written notice of any future commitments to such entities and use reasonable business efforts to coordinate
his respective commitments so as to fulfill his obligations to the Company and, in any event, will fulfill his legal obligations
as a Director. Other than as set forth above, the Director will not, without the prior notification to the Board, engage in any
other business activity which could materially interfere with the performance of his duties, services and responsibilities hereunder
or which is in violation of the reasonable policies established from time to time by the Company, provided that the foregoing shall
in no way limit his activities on behalf of (i) any current employer and its affiliates or (ii) the board of directors of any entities
on which he currently sits. At such time as the Board receives such notification, the Board may require the resignation of the
Director if it determines that such business activity does, in fact, materially interfere with the performance of the Director's
duties, services and responsibilities hereunder.

 

3. Compensation.

 

(a) Restricted Stock. The Director shall receive
four hundred thousand (400,000) shares of the Company's common stock. Such shares shall vest in four (4) equal amounts over a period
of twelve (12) months, the initial amount vesting on the Effective Date. Notwithstanding the foregoing, if the Director ceases
to be a member of the Board at any time during the vesting period for any reason (such as resignation, withdrawal, death, disability
or any other reason), then any unvested shares shall be irrefutably forfeited. Furthermore, the Director agrees that the shares
shall be subject to any "lock-up" agreement required to be signed by the Company's officers in connection with any financing.

 

(b) Independent Contractor. The Director's status
during the Directorship Term shall be that of an independent contractor and not, for any purpose, that of an employee or agent
with authority to bind the Company in any respect. All payments and other considerations made or provided to the Director under
this Section 3 shall be made or provided without withholding or deduction of any kind, and the Director shall assume sole responsibility
for discharging all tax or other obligations associated therewith.

 

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(c) Expense Reimbursements. During the Directorship
Term, the Company shall reimburse the Director for all reasonable out-of-pocket expenses incurred by the Director in attending
any in-person meetings, provided that the Director complies with the generally applicable policies, practices and procedures of
the Company for submission of expense reports, receipts or similar documentation of such expenses. Any reimbursements for allocated
expenses (as compared to out-of-pocket expenses of the Director in excess of $500.00) must be approved in advance by the Company.

 

4. Directorship Term. The "Directorship
Term," as used in this Agreement, shall mean the period commencing on the Effective Date and terminating on the earlier of
the date of the next annual stockholders meeting and the earliest of the following to occur: (a) the death of the Director; (b)
the termination of the Director from his membership on the Board by the mutual agreement of the Company and the Director; (c) the
removal of the Director from the Board by the majority stockholders of the Company; and (d) the resignation by the Director from
the Board.

 

5. Director's Representation and Acknowledgment.

 

The Director represents to the Company that
his execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written)
that he may have with or to any person or entity, including without limitation, any prior or current employer. The Director hereby
acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely
of the Company, and the Director shall have no recourse whatsoever against any stockholder of the Company or any of their respective
affiliates with regard to this Agreement.

 

6. Director Covenants.

 

Unauthorized Disclosure. The Director agrees
and understands that in the Director's position with the Company, the Director has been and will be exposed to and receive information
relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing
plans, strategies, customer information, other information concerning the Company's products, promotions, development, financing,
expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and
in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such
information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without
the prior written consent of the Company; provided, however, that (i) the Director shall have no such obligation to the extent
such information is or becomes publicly known or generally known in the Company's industry other than as a result of the Director's
breach of his obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable
under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial
or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination
of the Directorship Term, the Director will promptly return to the Company and/or destroy at the Company's direction all property,
keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs,
machines, technical data, other product or document, and any summary or compilation of the foregoing, in whatever form, including,
without limitation, in electronic form, which has been produced by, received by or otherwise submitted to the Director in the course
or otherwise as a result of the Director's position with the Company during or prior to the Directorship Term, provided that the
Company shall retain such materials and make them available to the Director if requested by him in connection with any litigation
against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that
the materials are necessary to his defense in the litigation and (ii) the confidentiality of the materials is preserved to the
reasonable satisfaction of the Company.

 

    	3  

    	 

    

 

 

Non-Solicitation. During the Directorship Term
and for a period of three (3) years thereafter, the Director shall not interfere with the Company's relationship with, or endeavor
to entice away from the Company, any person who, on the date of the termination of the Directorship Term and/or at any time during
the one year period prior to the termination of the Directorship Term, was an employee or customer of the Company or otherwise
had a material business relationship with the Company.

 

Non-Compete. The Director agrees that during
the Directorship Term and for a period of three (3) years thereafter, he shall not in any manner, directly or indirectly, through
any person, firm or corporation, alone or as a member of a partnership or as an officer, director, stockholder, investor or employee
of or consultant to any other corporation or enterprise; engage in the business of developing, marketing, selling or supporting
technology to or for businesses in which the Company engages in or in which the Company has an actual intention, as evidenced by
the Company's written business plans, to engage in, within any geographic area in which the Company is then conducting such business.
Nothing in this Section 6 shall prohibit the Director from being (i) a stockholder in a mutual fund or a diversified investment
company or (ii) a passive owner of not more than three percent of the outstanding stock of any class of securities of a corporation,
which are publicly traded, so long as the Director has no active participation in the business of such corporation.

 

Insider Trading Guidelines. Director agrees
to execute the Company's Insider Trading Guidelines in the form attached hereto.

 

Remedies. The Director agrees that any breach
of the terms of this Section 6 would result in irreparable injury and damage to the Company for which the Company would have no
adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company
shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued
breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages or paying
a bond, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph
shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including,
but not limited to, the recovery of damages from the Director. The Director acknowledges that the Company would not have entered
into this Agreement had the Director not agreed to the provisions of this Section 6.

 

The provisions of this Section 6 shall survive
any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants
and agreements of this Section 6.

 

    	4  

    	 

    

 

 

7. Indemnification.

 

The Company agrees to indemnify the Director
for his activities as a member of the Board to the fullest extent permitted under applicable law and shall use its best efforts
to maintain Directors and Officers Insurance benefitting the Board.

 

8. Non-Waiver of Rights.

 

The failure to enforce at any time the provisions
of this Agreement or to require at any time performance by the other party hereto of any of the provisions hereof shall in no way
be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right
of either party hereto to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any
breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver
of similar or dissimilar provisions at that time or at any prior or subsequent time.

 

9. Notices.

Every notice relating to this Agreement shall
be in writing and shall be given by personal delivery or by registered or certified mail, postage prepaid, return receipt requested
to address well known by the Parties. Either of the parties hereto may change their address for purposes of notice hereunder by
giving notice in writing to such other party pursuant to this Section 9.

 

If to: Cannabis Global Inc 520 S Grand Ave #320
Los Angeles, Ca 90071

 

If to: Mr. Jim Riley Address:

 

58 Morning
View Way Kalispell, MT 59901

 

 

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10.Binding Effect/Assignment.

 

This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including,
without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither
the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

 

11. Entire Agreement. This Agreement (together
with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

 

12. Severability.

 

If any provision of this Agreement, or any application
thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable
and shall not affect other provisions or applications of this Agreement.

 

13. Governing Law.

 

This Agreement shall be governed by and construed
in accordance with the laws of the State of California without reference to the principles of conflict of laws. All actions and
proceedings arising out of or relating to this Agreement shall be heard and determined in any court in Los Angeles County, California
and the parties hereto hereby consent to the jurisdiction of such courts in any such action or proceeding; provided, however, that
neither party shall commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve
the claim, dispute or cause of action which is the subject of such action or proceeding through mediation by an independent third
party.

 

15. Modifications. Neither this Agreement nor
any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to
be charged.

 

 

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16. Tense and Headings.

 

Whenever any words used herein are in the singular
form, they shall be construed as though they were also used in the plural form in all cases where they would so apply. The headings
contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the meaning
or interpretation of this Agreement.

 

17. Counterparts.

 

This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOEF, the Company has caused
this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set his hand, on the
day and year first above written.

 

CANNABIS GLOBAL, INC.

 

/s/ Arman Tabatabaei

 

ARMAN TABATABAEI

 

Chief Executive Officer and Director

 

 

DIRECTOR

 

/s/ Jim Riley

 

Jim Riley

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