Company: XXII
Filing Date: 2025-06-10
Form Type: PRER14A
Source: 0001641172-25-014371
Chunk: 24

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: PRER14A
Chunk 24
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 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 that position that are strategic for the Company in achieving its goals.

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For fiscal 2025, the Compensation Committee set target bonus levels as follows:

| Name                                         |     | Target Bonus % of Base Salary |     |   |     | Target Cash Bonus |         |
|:---------------------------------------------|:----|:------------------------------|----:|:--|:----|:------------------|--------:|
| Lawrence D. Firestone                        
 Chief Executive Officer                      |     |                               | 100 | % |     | $                 | 425,000 |
| Daniel A. Otto                               
 Chief Financial Officer                      |     |                               |  75 | % |     | $                 | 236,250 |
| Jonathan Staffeldt                           
 General Counsel                              |     |                               |  75 | % |     | $                 | 236,250 |
| Robert Manfredonia                           
 Executive Vice President Sales and Marketing |     |                               |  75 | % |     | $                 | 206,250 |
| Scott Marion                                 
 Vice President Manufacturing Operations      |     |                               |  75 | % |     | $                 | 206,250 |

Long-Term Equity Incentive Program Compensation

Our 2021 Omnibus Incentive Plan, as amended and restated, authorizes the Company to grant various types of equity awards, including stock options and restricted stock units, as incentives for management to increase stockholder value. Equity awards are granted to executive officers as long−term incentives in order to align executives’ performance with the interests of the Company’s stockholders. In addition, the multi-year nature of the vesting periods of such awards encourages executive retention.

Our Compensation Committee has authority to determine eligible participants, the types of awards, and the terms and conditions of awards. Upon review of the Company’s financial performance for 2024, the Committee determined to forego issuance of long-term equity incentive awards for 2024.

For 2025, the Compensation Committee has developed a new long-term equity incentive program, whereby ] equity awards will be aligned to the prior fiscal