Company: XXII
Filing Date: 2025-04-30
Form Type: 10-K/A
Source: 0001641172-25-006806
Chunk: 15

Company: 22nd Century Group, Inc.
Filing Date: 2025-04-30
Form: 10-K/A
Chunk 15
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 |                  |         |     |                    |   |   |
| Executive Vice President Sales and Marketing |     | $                | 275,000 |     |                    | N/A |   |     | $                | 275,000 |     |                    | 0 | % |
| Scott Marion (4)                             |     |                  |         |     |                    |     |   |     |                  |         |     |                    |   |   |
| Vice President Manufacturing Operations      |     | $                | 275,000 |     |                    |  31 | % |     | $                | 275,000 |     |                    | 0 | % |

| (1) | Mr.                                                                                    
 Firestone was appointed as Chief Executive Officer on December 1, 2023.                |
| (2) | Mr.                                                                                    
 Otto and Mr. Staffeldt were appointed to their respective positions during April 2024. |
| (3) | Mr.                                                                                    
 Manfredonia was hired August 2024.                                                     |
| (4) | Mr.                                                                                    
 Marion was promoted to his position July 2024.                                         |

Performance−Based Incentive Compensation

Historically, the Compensation Committee has considered, and in some cases established, incentive bonus plans for other executive officers that align pay with performance. Because the Company has not in the Committee’s judgment achieved sufficient levels of revenues or profits, the Committee did not approve performance-based incentive compensation awards for named executive officers in 2024.

During 2024, the Compensation Committee developed a new performance-based incentive compensation plan for our executive officers, initiating for fiscal 2025. The performance-based incentive compensation program will consist of (i) annual performance-based cash bonus opportunity and (ii) long-term equity incentive compensation consisting of equity awards.

The Compensation Committee has developed a performance-based annual cash bonus plan for 2025. Cash bonus amounts awarded will be determined based on (i) a percentage of each executive position’s base pay, (ii) Company performance, (iii) individual performance. Weighting of Company performance will be 80% and individual performance will be 20%.

The cash bonus pool will be based on achievement of key financial metrics for the fiscal year, funded as 25% of Adjusted EBITDA greater than $2.0 million, and up to 150% of target. Individual performance will be tied to the achievement of quarterly initiatives, which will be at least 5 measurable objectives defined for