Exhibit
10.7


 


EMPLOYMENT AGREEMENT


 


This EMPLOYMENT AGREEMENT (this
“Agreement”) is entered into as of this 31st day of March, 2021, by and between John Tipton, an individual resident
of the State of Florida (“Executive”), and Verano Holdings Corp., a British Columbia corporation (the “Company”).


 


A. The Company wishes to employ
Executive to provide services to the Company and its subsidiaries in accordance with the terms of this Agreement.


 


B. Executive wishes to accept
employment with the Company and provide such services to the Company and its subsidiaries according to the terms of this Agreement.


 


C. This Agreement shall replace
and supersede in its entirety any prior employment agreements, arrangements or understandings between Executive, on the one hand, and
the Company or any of its subsidiaries, on the other hand (individually and collectively, the “Prior Agreement”).


 


NOW, THEREFORE, in consideration
of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, agree as follows:


 


1. Effectiveness and Employment.


 


(a) The obligations of the Company
in this Agreement shall become effective on the consummation (the “Effective Date”) of that Agreement and Plan of Merger,
dated as of November 6, 2020, by and among Verano Holdings, LLC, Alternative Medical Enterprises, LLC, Plants of Ruskin GPS, LLC and RVC
360, LLC, which transactions include, among other things, such parties becoming subsidiaries of the Company pursuant to a business combination
to be effected under an arrangement governed by the laws of British Columbia (the “Combination”).


 


(b) The Company hereby agrees to
employ Executive, and Executive hereby accepts employment by the Company, upon the terms and conditions set forth in this Agreement for
the period beginning on the Effective Date and ending on the date described in Section 4(a) (the “Employment Period”).


 


2. Position and Duties.


 


(a) During the Employment Period,
Executive shall serve as the President of the Company, and in connection therewith Executive shall render such administrative, financial
and other executive and managerial services to the Company and its subsidiaries and have the responsibilities and authority which are
consistent with Executive’s position, subject to the power and authority of the Board of Directors of the Company (the “Board”)
to expand or limit such duties, responsibilities, functions and authority.


 



    	 



    	 



     


(b) Executive shall report to the
Company’s Chief Executive Officer (or such other person as shall be designated by the Board). Executive shall perform Executive’s
duties and responsibilities to the best of Executive’s abilities in a diligent, trustworthy, businesslike and efficient manner.
Executive shall devote Executive’s full business time, energies and attention during customary business hours (except for permitted
vacation periods and periods of illness or other temporary incapacity) to the business and affairs of the Company and its subsidiaries.
So long as Executive is employed by the Company, Executive shall not, without the prior written consent of the Board, accept other employment
or perform other services for compensation or that interfere with Executive’s employment with the Company; provided, however,
that Executive may (i) continue to provide services to the Dickman family with respect to their properties and personal affairs consistent
with past practices, and (ii) serve as an officer or director of or otherwise participate in purely educational, welfare, social, religious
and civic organizations, in each of the foregoing cases so long as such activities are not in competition with the Company or any of its
subsidiaries and do not interfere with Executive’s ability to carry out Executive’s duties under this Agreement.


 


(c) Executive shall comply with
all lawful rules, policies, procedures, regulations and administrative directions now or hereafter reasonably established by the Board
for officers or employees of the Company or any of its subsidiaries.


 


3. Salary and Benefits. Subject
to Section 4:


 


(a) Salary. During the Employment
Period, the Company shall pay Executive a base salary at the annual rate of US$100,000, payable in regular installments in accordance
with the Company’s usual payment practices subject to required withholdings and taxes.


 


(b) Performance Bonus. Executive
will be eligible to earn four separate performance bonuses, each paid in a combination of cash and Class B Proportionate Voting Shares
of stock of the Company, based upon the gross sales for the Company’s Florida and Arizona operations acquired in the Combination
exceeding specified levels for each of (i) the first fiscal quarter of 2021, (ii) the year to date through the third fiscal quarter of
2021, (iii) the first fiscal quarter of 2022, and (iv) the year to date through the third fiscal quarter of 2022, in each case as set
forth and described on Schedule 3(b) (the “Performance Bonuses”). The right to be paid Performance Bonuses if
earned is in lieu of, and not in addition to, any bonus, incentive or equity plan or any other similar plan or program of the Company.


 


(c) Signing Bonus. Executive
shall be entitled to a signing bonus in the amount of US$1,000,000 (the “Signing Bonus”). The Signing Bonus shall be
earned and payable by Company check or immediately available funds on April 1, 2021.


 


(d) Benefits. During the
Employment Period, Executive shall be entitled to paid vacation, paid holidays and to participate in all health insurance plans, retirement
plans (including 401(k)), life insurance plans and (except for any equity, incentive or bonus plans or programs) all other perquisite
plans and programs for which employees of Executive’s rank in the Company are generally eligible (collectively, the “Benefit
Plans”), in each case consistent with the Company’s then-current practice as approved by the Board from time to time.
The foregoing shall not be construed to require the Company to establish such Benefit Plans or to prevent the modification or termination
of such Benefit Plans once established, and no such action or failure thereof shall affect this Agreement. Executive recognizes that the
Company and its affiliates have the right, in their sole discretion, to amend, modify or terminate any Benefit Plans without creating
any rights in Executive.


 



    	2 



    	 



     


(e) Business Expenses. During
the Employment Period, the Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the course
of performing Executive’s duties under this Agreement; provided such expenses are consistent with the Company’s policies
in effect from time to time with respect to travel, entertainment and other business expenses. As a condition to being issued such reimbursements,
Executive shall submit to the Company on a timely basis business expense reports, including substantiation in accordance with the Company’s
policy as in effect from time to time. For purposes of compliance with Code Section 409A (as defined in Section 23): (i) all expenses
or other reimbursements under this Agreement shall be made on or prior to the last day of the taxable year following the taxable year
in which such expenses were incurred by Executive, (ii) any such right to reimbursement or in kind benefits is not subject to liquidation
or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement or in-kind benefits provided in
any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable
year.


 


4. Employment Period.


 


(a) The Employment Period shall
begin on the Effective Date and shall continue for two years, and shall thereafter automatically renew for one year terms unless either
party gives the other party no less than 30 days’ notice of its election not to renew, or until Executive’s employment hereunder
is terminated in accordance with Section 4(b).


 


(b) The Employment Period and Executive’s
employment hereunder (i) shall terminate upon Executive’s death or permanent disability or incapacity, (ii) may be terminated by
the Company at any time with or without Cause (as defined in Section 4(f)), and (iii) may be terminated by Executive at any time.


 


(c) If Executive’s employment
hereunder is terminated by the Company for Cause or by Executive during the Employment Period, then Executive shall be entitled to receive
only Executive’s accrued, unpaid Salary, and for the year during which Executive’s employment hereunder is terminated, accrued
but unused vacation time through the effective date of Executive’s termination of employment (the “Termination Date”),
any reimbursements owed for business expenses validly incurred on or prior to the Termination Date and reimbursable in accordance with
Section 3(e) and any accrued but unpaid benefits due and owing to Executive under the Benefit Plans (collectively, the “Accrued
Obligations”), and shall not be entitled to any other compensation or benefits.


 


(d) If Executive’s employment
hereunder is terminated without Cause by the Company during the Employment Period, then Executive shall be entitled to receive the Accrued
Obligations and, provided Executive signs and does not revoke a general release of claims against the Company and its affiliates on a
form to be provided by the Company within 14 days of the Termination Date, does not apply for unemployment compensation chargeable to
the Company or any of its subsidiaries during the 12 months following the Termination Date, and subject to Executive’s compliance
with each obligation pursuant to Section 5, Section 6 and Section 7, Executive shall also be entitled to receive any Performance
Bonuses that are earned after the Termination Date and if unpaid as of the Termination Date.


 


(e) If Executive’s employment
hereunder is terminated as a result of Executive’s death, permanent disability or incapacity during the Employment Period, Executive
or Executive’s representatives or beneficiaries shall be entitled to receive only the Accrued Obligations and any rights to continuation
of coverage and to benefits under any Benefit Plans required under applicable law and subject to Executive’s compliance to the extent
possible with each obligation pursuant to Section 5, Section 6 and Section 7, Executive (or his estate, as applicable) shall
also be entitled to receive any Performance Bonuses that are earned after the Termination Date and if unpaid as of the Termination Date.


 



    	3 



    	 



     


(f) For purposes of the Agreement,
“Cause” shall mean any of Executive’s (i) willful failure to comply with any valid and legal directive of the
Chief Executive Officer of the Company or the Board, (ii) willful engagement in dishonesty, illegal conduct, or gross misconduct, which
is, in each case, injurious to the Company or any of its affiliates; (iii) embezzlement, misappropriation, or intentional fraud, whether
or not related to Executive’s employment with the Company; (iv) conviction of or plea of guilty or nolo contendere to a crime that
constitutes a felony (or state law equivalent); (v) commission or conviction of a crime which would disqualify Executive for registration
or licensure by the applicable regulatory or licensing authority governing the Company’s, or any subsidiary or affiliate of the
Company’s, participation in a State-regulated cannabis program; (vi) material breach of any material obligation under this Agreement
or any other written agreement between Executive and the Company or any of its subsidiaries; or (vii) any material failure by Executive
to comply with the Company’s written policies or rules, as they may be in effect from time to time, if such failure causes reputational
or financial harm to the Company or any of its affiliates.


 


(g) For purposes of this Agreement,
Executive’s permanent disability or incapacity shall be determined in accordance with the Company’s long-term disability insurance
policy, if such a policy is then in effect, or, if no such policy is then in effect, then such permanent disability or incapacity shall
be deemed to have occurred upon Executive’s inability to perform the essential functions of the position set forth in Section
2(a), after reasonable accommodation by the Company, for a period of at least 180 days, in the aggregate, during any period of 365
calendar days, unless further time is required as a reasonable accommodation under the Americans with Disabilities Act.


 


5. Restrictive Covenants.
In consideration of this Agreement and Executive’s substantial direct and indirect benefits arising from the Combination, Executive,
knowingly and intending to be legally bound, agrees as follows.


 


(a) Noncompetition Covenant.
During the period commencing on the Effective Date and terminating on the third anniversary of the Termination Date (the “Restricted
Period”), Executive shall not directly or indirectly (whether for compensation or without compensation), as principal, agent,
owner, partner, employee, consultant, shareholder, member, director, manager or officer, as the case may be, or otherwise howsoever, own,
operate, be engaged in or connected with the operation of or have any financial interest in or advance, lend money to, guarantee the debts
or obligations of or permit Executive’s name or part thereof to be used or employed in any operation, whether a proprietorship,
partnership, joint venture, company or other entity, legal or otherwise, whatsoever, or otherwise carry on or engage in any activity or
business similar to the Company’s business or be connected or involved in any manner whatsoever in any activity or business similar
to the Company’s business in whole or in part; provided, however, that such restrictions shall not preclude Executive
from (i) owning stock in the Company or up to 1% of the total outstanding stock of any other publicly traded entity, or (ii) continuing
to volunteer for no payment in assisting the government of Panama in establishing its rules and regulations relating to legalized cannabis
cultivation, manufacture, and/or sale.


 



    	4 



    	 



     


(b) Non-solicitation Covenant.
During the Restricted Period, Executive shall not, directly or indirectly (whether for compensation or without compensation), as principal,
agent, owner, partner, employee, consultant, shareholder, member, director, manager or officer, as the case may be (other than as the
holder of stock in the Company or a holder of an ownership interest of not more than 1% of the total outstanding stock of any other publicly
traded entity):


 


(i) interfere with, disrupt or
obtain business from, accept business from or contact any current or former party engaging in business with the Company or any of its
subsidiaries (or attempt to do any of the foregoing), in each case with respect to any activity or business engaged in by the Company
or any of its subsidiaries with such party, whether in whole or in part; or


 


(ii) induce or attempt to induce
any employee of the Company or any of its subsidiaries to terminate employment with the Company or such subsidiary, hire or participate
in the hiring of any employee or independent contractor of the Company or any of its subsidiaries, or interfere with or attempt to disrupt
the relationship, contractual or otherwise, between the Company or any of its subsidiaries and any of their respective employees or independent
contractors. For purposes of this paragraph, an employee or independent contractor means any person employed or contracted by the Company
or any of its subsidiaries during the Employment Period.


 


6. Confidentiality.
In consideration of this Agreement, Executive’s substantial direct and indirect benefits arising from the Combination, and Executive’s
access to Confidential Information (as defined below), Executive, knowingly and intending to be legally bound, agrees as follows.


 


(a) Executive will not at any time
(whether during or after Executive’s employment with the Company) (i) retain or use for the benefit, purposes or account of Executive
or any other person; or (ii) disclose, divulge, reveal, communicate, share, transfer or provide access to any person outside the Company
(other than its professional advisers who are bound by confidentiality obligations), any non-public, proprietary or confidential information,
including without limitation, trade secrets, know-how, research and development, software, databases, inventions, processes, formulae,
technology, designs and other intellectual property, information concerning finances, investments, profits, pricing, costs, products,
services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing,
promotions, government and regulatory activities and approvals, in each case concerning the past, current or future business, activities
and operations of the Company, its subsidiaries or affiliates or any third party that has disclosed or provided any of such information
to the Company or any of its subsidiaries on a confidential basis (collectively, “Confidential Information”) without
the prior written authorization of the Board; provided, that Executive may disclose such information to Executive’s legal
and financial advisors for the limited purpose of enforcing Executive’s rights under this Agreement so long as Executive requires
that such legal and financial advisors not disclose such information, and Executive shall be liable for any disclosure by such legal or
financial advisors.


 



    	5 



    	 



     


(b) Confidential Information shall
not include any information that is: (i) generally known to the industry or the public other than as a result of Executive’s breach
of this Agreement or any breach of other confidentiality obligations by third parties; (ii) made legitimately available to Executive by
a third party without breach of any confidentiality obligation; or (iii) required by applicable law to be disclosed; provided that
Executive shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and cooperate
with any attempts by the Company to obtain a protective order or similar treatment.


 


(c) Executive acknowledges, agrees,
and understands that (i) nothing in this Agreement prohibits Executive from reporting to any governmental authority or attorney information
concerning suspected violations of law or regulation, provided that Executive does so consistent with 18 U.S.C. 1833, and (ii) Executive
may disclose trade secret information to a government official or to an attorney and use it in certain court proceedings without fear
of prosecution or liability, provided that Executive does so consistent with 18 U.S.C. 1833.


 


(d) Except to the extent disclosed
by the Company as may be required by applicable securities and other laws or applicable stock exchange listing standards, Executive will
not disclose to anyone, other than Executive’s spouse, legal or financial advisors or members of the Company’s senior management,
the existence or contents of this Agreement.


 


(e) Upon termination of Executive’s
employment with the Company for any reason, Executive shall: (i) cease and not thereafter commence use of any Confidential Information
or intellectual property (including, without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo,
domain name or other source indicator) owned or used by the Company, its subsidiaries or affiliates; (ii) immediately return to the Company,
at the Company’s option, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files,
letters and other data) in Executive’s possession or control (including any of the foregoing stored or located in Executive’s
office, home, laptop or other computer, whether or not Company property) that contain Confidential Information or otherwise relate to
the business of the Company, its affiliates and subsidiaries, except that Executive may retain only those portions of any personal notes,
notebooks and diaries that do not contain any Confidential Information or are not related to the Company’s business; and (iii) notify
and fully cooperate with the Company regarding the delivery of any other Confidential Information of which Executive is or becomes aware.


 


7. Intellectual Property.
In consideration of this Agreement and Executive’s substantial direct and indirect benefits arising from the Combination, Executive,
knowingly and intending to be legally bound, agrees as follows.


 


(a) If Executive has created, invented,
designed, developed, contributed to or improved any works of authorship, inventions, intellectual property, materials, documents or other
work product (including, without limitation, research, reports, software, databases, systems, applications, presentations, textual works,
content or audiovisual materials) (“Works”), either alone or with third parties, prior to Executive’s employment
by the Company, that are relevant to or implicated by such employment (“Prior Works”), Executive hereby grants the
Company and its subsidiaries a perpetual, non-exclusive, royalty-free, worldwide, assignable, sub-licensable license under all rights
and intellectual property rights (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition
and related laws) therein for all purposes in connection with the Company’s or any of its subsidiaries’ current and future
business. Executive shall provide the Company with a written list of all Prior Works within 15 days after the Effective Date.


 



    	6 



    	 



     


(b) If Executive creates, invents,
designs, develops, contributes to or improves any Works, either alone or with third parties, at any time during Executive’s employment
by the Company and within the scope of such employment or with the use of any resources of the Company or any of its subsidiaries (“Company
Works”), Executive shall promptly and fully disclose the Company Works to the Company and hereby irrevocably assigns, transfers
and conveys, to the maximum extent permitted by applicable law, all rights and intellectual property rights therein (including rights
under patent, industrial property, copyright, trademark, trade secret, unfair competition and related laws) to the Company to the extent
ownership of any such rights does not vest originally in the Company.


 


(c) Executive shall keep and maintain
adequate and current written records (in the form of notes, sketches, drawings and any other form or media requested by the Company) of
all Company Works. The records will be available to and remain the sole property and intellectual property of the Company at all times.


 


(d) Executive shall take all requested
actions and execute all requested documents (including any licenses or assignments required by a government contract) at the Company’s
expense (but without further remuneration) to assist the Company in validating, maintaining, protecting, enforcing, perfecting, recording,
patenting or registering any of the Company’s rights in the Prior Works and Company Works. If the Company is unable for any other
reason to secure Executive’s signature on any document for this purpose, then Executive hereby irrevocably designates and appoints
the Company and its duly authorized officers and agents as Executive’s agent and attorney in fact, to act for and in Executive’s
behalf and stead to execute any documents and to do all other lawfully permitted acts in connection with the foregoing.


 


(e) Executive shall not improperly
use for the benefit of, bring to any premises of, divulge, disclose, communicate, reveal, transfer or provide access to, or share with
the Company or any of its subsidiaries any confidential, proprietary or non-public information or intellectual property relating to a
former employer or other third party (in each case that is not then a subsidiary of the Company) without prior written permission of such
third party. Executive shall comply with all relevant policies and guidelines of the Company regarding the protection of confidential
information and intellectual property and potential conflicts of interest. Executive acknowledges that the Company may amend any such
policies and guidelines from time to time, and that Executive remains at all times bound by their most current version that has been communicated
to Executive.


 


8. Return of Company Property.
At the termination of the Employment Period and at any other time upon the request of the Company, Executive shall deliver to the Company
any and all of the Company’s documents, plans, records, computer tapes, software, drawings, notes, memoranda, specifications, devices
(including, without limitation, any cellular phone or computer), and formulas relating to the Company’s business, together with
all copies thereof, which is in the possession of Executive.


 



    	7 



    	 



     


9. Enforcement.
If, at the time of enforcement of Section 5, Section 6 or Section 7, a court holds that the restrictions stated herein are
unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or area. It is specifically understood and agreed that any
breach of the provisions of Section 5, Section 6 or Section 7 are likely to result in irreparable injury to the Company
and the parties hereto agree that money damages would be an inadequate remedy for any breach of Section 5, Section 6 or Section
7. Therefore, in the event of a breach or threatened breach of Section 5, Section 6 or Section 7, the Company or its
successors or assigns shall, in addition to other rights and remedies existing in their favor, be entitled to specific performance and/or
injunctive or other relief in order to enforce, or prevent any violations of, Section 5, Section 6 or Section 7.


 


10. Representations and Warranties.


 


(a) Executive hereby represents
and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Executive does not and will not conflict
with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a
party or by which Executive is bound, (ii) Executive is not a party to or bound by any employment agreement, non-solicitation agreement,
assignment of inventions or confidentiality agreement with any other person or entity, (iii) Executive is not subject to any noncompetition
agreement or any other agreement or restriction of any kind that would impede in any way the ability of Executive to carry out fully all
activities of Executive in furtherance of the business of the Company or any of its subsidiaries, (iv) Executive is not in violation of
a confidentiality, non-solicitation or non-competition agreement or any other agreement relating to the relationship of Executive with
any third party, because of the nature of the business conducted by the Company or any of its subsidiaries, and (v) upon execution and
delivery of this Agreement, this Agreement shall be the valid and binding obligation of Executive, enforceable against Executive in accordance
with its terms, and shall replace and supersede in its entirety any Prior Agreement.


 


(b) The Company hereby represents
and warrants to Executive that (i) the execution, delivery and performance of this Agreement by the Company does not and will not conflict
with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Company is
a party or by which the Company is bound and (ii) upon execution and delivery, this Agreement shall be the valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms.


 


11.
Successors and Assigns. This Agreement shall bind and inure to the benefit of and be enforceable by Executive and the
Company and their respective heirs, successors and permitted assigns. Neither party may assign any of its rights or assign or delegate
any of its obligations hereunder without the prior written consent of the other party hereto; provided, however, that (a)
the Company shall be permitted to assign this Agreement to any of its subsidiaries or to any successor to all or substantially all of
its business or assets that agrees in writing to assume all of the Company’s obligations hereunder, and (b) the Company’s
subsidiaries and affiliates are third party beneficiaries of this Agreement. Any change of control, merger, business combination or similar
transaction of the Company after the Effective Date shall not be deemed to result in an assignment or delegation of this Agreement by
the Company.


 



    	8 



    	 



     


12.
Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions
of this Agreement shall be in writing and shall be deemed to have been given (a) on the date having been delivered personally, (b) on
the date delivered by a private courier as established by evidence obtained from such courier, (c) on the date sent by facsimile or e-mail
transmission (with acknowledgement of both complete transmission and receipt), or (d) on the fifth day after the date mailed, by certified
or registered mail, return receipt requested, postage prepaid. Notices, demands or communications to any party hereto will, unless another
address is specified in writing pursuant to this Section 12, be sent to the addresses indicated below.


 


	 	
    If to Executive:

     

    John Tipton

    6210 Glen Abbey Lane

    Bradenton, FL 34202

    Email: [***]
	 	
    If to the Company:

     

    Verano Holdings Corp.

    415 N. Dearborn Street, Suite 400

    Chicago, IL 60654

    Attn: George Archos, Chief Executive
    Officer

    Email: george@verano.holdings



 


13. Severability.
Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid under applicable law; but, if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but except as otherwise
set forth in this Agreement, this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal
or unenforceable provision had never been contained herein.


 


14. Complete Agreement.
This Agreement embodies the complete agreement and understanding between the parties hereto with respect to the subject matter hereof
and supersedes and preempts any prior understandings, agreements or representations by or among the parties hereto, written or oral, which
may have related to the subject matter hereof in any way, including without limitation, any Prior Agreement.


 


15. Signatures; Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which together will constitute
one and the same instrument. For purposes hereof, a facsimile signature, portable document format (.pdf) signature or signature sent by
electronic transmission will be considered an original signature.


 


16. Governing Law.
All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by,
and construed in accordance with, the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of
law rules or provisions (whether of the State of Illinois or any other jurisdiction).


 


17. Survival. From
and after the Effective Date, the provisions of Section 4, Section 5, Section 6, Section 7, Section 8, Section 9, Section 11, Section
12, Section 13, Section 14, Section 16, this Section 17, Section 19, Section 20, Section 21, Section 23, Section 24, and Section
26 shall survive the termination of Executive’s employment and the termination of this Agreement for any reason.


 


18. Tax Withholdings.
The Company shall deduct or withhold from any amounts owing from the Company to Executive any federal, state, local or foreign withholding
taxes, excise tax, or employment taxes imposed with respect to Executive’s compensation or other payments from the Company or Executive’s
ownership interest in the Company, if any (including, without limitation, wages, bonuses, dividends, the receipt or exercise of equity
options and/or the receipt or vesting of restricted equity).


 



    	9 



    	 



     


19. Dispute Resolution.
Any controversy, dispute or claim arising out of or relating to any interpretation, performance, construction, termination or breach of
this Agreement shall first be settled through good faith negotiation between the parties hereto. If the controversy, dispute or claim
cannot be settled through negotiation, such matter must only be settled by final and binding arbitration by a single arbitrator held in
Chicago, Illinois, except as otherwise provided herein. Such mandatory arbitration may be brought by either party hereto and shall be
administered by JAMS pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment Arbitration
Minimum Standards of Procedural Fairness. Judgment on the arbitration award may be entered in any court having proper jurisdiction. In
aid of arbitration, either party hereto may seek preliminary or temporary injunctive relief at any time before the arbitration demand
has been filed and served or before an arbitrator has been selected. This agreement to mandatory arbitration is a specifically bargained
for inducement for each of the parties hereto to enter into this Agreement (after having the opportunity to consult with counsel).


 


20. Headings; No Strict
Construction. The headings of the paragraphs and sections of this Agreement are inserted for convenience only and shall not be
deemed a part of or affect the construction or interpretation of any provision hereof. The language used in this Agreement shall be deemed
to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against
any party.


 


21. Executive’s Cooperation.
During the Employment Period and thereafter, Executive shall, subject to the Company reimbursing Executive for out-of-pocket expenses,
cooperate with the Company in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested
by the Company (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual
investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process,
volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into
Executive’s possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities
and commitments).


 


22. Corporate Opportunity.
During the Employment Period, Executive shall submit to the Board all business, commercial and investment opportunities or offers presented
to Executive or of which Executive becomes aware which relate to the business of the Company or any of its subsidiaries at any time during
the Employment Period (“Corporate Opportunities”). Unless previously approved in writing by the Board, Executive shall
not accept or pursue, directly or indirectly, any Corporate Opportunities on Executive’s own behalf.


 



    	10 



    	 



     


23. Section 409A Compliance.
The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of
1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”) and,
accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. To the extent that any
provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the
maximum extent reasonably possible, maintain the original intent and economic benefit to Executive and the Company of the applicable provision
without violating the provisions of Code Section 409A. In no event whatsoever shall the Company be liable for any additional tax, interest
or penalty that may be imposed on Executive by Code Section 409A or damages for failing to comply with Code Section 409A. Notwithstanding
anything herein to the contrary, a termination of employment shall be deemed to have occurred at the time such termination constitutes
a “separation from service” within the meaning of Code Section 409A for purposes of any provision of this Agreement providing
for the payment of any amounts or benefits in connection with a termination of employment and, for purposes of any such provision of this
Agreement, references to a “termination,” “termination of employment” or like terms shall mean a “separation
from service.” Notwithstanding any other provision to the contrary, in no event shall any payment under this Agreement that constitutes
“deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted
by Code Section 409A.


 


24. Amendment and Waiver.
The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and Executive, and no course
of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability
of this Agreement.


 


25. Key Person Insurance.
The Company and its affiliates shall have the right, but not the obligation, to obtain or increase insurance on Executive’s life
in such amount as the Board or such affiliate determines, in the name of the Company or such affiliates, as the case may be, and for its
sole benefit or otherwise. Upon reasonable advance notice, Executive will cooperate in any and all necessary physical examinations without
expense to Executive, supply information and sign documents and otherwise cooperate fully with each of the Company and its affiliates
as the Company and its affiliates may request.


 


26. Read and Understood.
Executive has read this Agreement carefully and understands each of its terms and conditions. Executive has sought independent legal counsel
of Executive’s choice to the extent Executive deemed such advice necessary in connection with the review and execution of this Agreement.


 


[SIGNATURES ON FOLLOWING PAGE]


 



    	11 



    	 



     


IN WITNESS WHEREOF, the
parties hereto have executed this Agreement to be effective as of the Effective Date.


 


	 	THE COMPANY: 
	 	Verano Holdings Corp.
	 	 
	 	By:	/s/ “George Archos”
	 	 	George Archos, CEO
	 	 	 
	 	EXECUTIVE:
	 	 
	 	/s/ “John Tipton”

	 	John Tipton


 



    	12 



    	 



     


Schedule 3(b) 


 


Performance Bonus


 


1.
Defined Terms. As used herein, capitalized terms have the meanings set forth below or in the Employment Agreement to
which this Schedule 3(b) is attached (the “Employment Agreement”), as applicable.


 


“Additional Payment”
means an aggregate amount of US$15,500,000.


 


“Applicable Period”
means each of the following four separate and distinct fiscal periods of time for the Company as determined from the Company Financial
Statements: (i) the first fiscal quarter of 2021; (ii) the year-to-date from the first day of fiscal year 2021 through the last day of
the third fiscal quarter of 2021; (iii) the first fiscal quarter of 2022; (iv) the year-to-date from the first day of fiscal year 2022
through the last day of the third fiscal quarter of 2022.


 


“Cash and Share Percentages”
means (a) 41.379% of the total amount of a Performance Bonus will be comprised of cash paid in United States Dollars by Company check
or wire transfer of funds, and (b) 58.621% of the total amount of a Performance Bonus will be comprised of Consideration Shares issued
to Executive and valued at the Share Price multiplied by 100.


 


“Company Financial Statements”
means the unaudited consolidating financial statements of the Company and its subsidiaries for an applicable period prepared in the ordinary
course of business in accordance with International Reporting Standards issued by the International Accounting Board Standards, except
that such financial statements shall not contain footnotes or year-end adjustments.


 


“Company Shares”
means Class A Subordinate Voting Shares of the Company. “Consideration Shares” means Class B Proportionate Voting Shares
of the Company.


 


“Gross Sales”
means, for the applicable period of determination, an aggregate amount equal to the consolidated sales of the Company arising solely from
the Company’s operations consisting of (a) Alternative Medical Enterprises, LLC, (b) Plants of Ruskin GPS, LLC, and (c) RVC 360,
LLC, that were in effect as of the Effective Date and acquired by the Company in the Combination. For the avoidance of doubt, Gross Sales
shall not include any operations acquired by the Company or any of its subsidiaries after the Effective Date, but shall include organic
growth and expansion of such operations. Such Gross Sales shall be in United States Dollars and determined from the Company Financial
Statements for the Applicable Period of determination and shall be reduced by any discounts, returns and sales allowances.


 


“Share Price”
means for each Company Share, the volume weighted average price (VWAP) trading benchmark for the trading day that is the third business
day prior to (and not including) the date of payment of the applicable Performance. The Share Price shall be calculated and applied in
United States Dollars.


 



    	13 



    	 



     


 


“US$ or United States Dollars”
means the currency of the United States of America denominated in dollars.


 


2. Performance Bonuses.


 


(a) For each Applicable Period,
if Executive is eligible to earn a Performance Bonus at such time in accordance with the Employment Agreement, Executive shall be paid
a Performance Bonus in United States Dollars equal to 25% of the Additional Payment if, and only if, Gross Sales for such Applicable Period
exceed the following applicable amount:


 


	Applicable Period	Gross Sales Must Exceed
	
    the first fiscal quarter of 2021

     
	US$35,000,000
	
    the year-to-date from the first day of fiscal year 2021

    through the last day of the third fiscal quarter of 2021

     
	US$120,000,000
	
    the first fiscal quarter of 2022

     
	US$40,000,000
	
    the year-to-date from the first day of fiscal year 2022

    through the last day of the third fiscal quarter of 2022
	US$120,000,000


 


In no event shall any Gross Sales be carried forward
or carried back to any other Applicable Period. If earned, a Performance Bonus shall only be equal to 25% of the Additional Payment and
shall not be based on a sliding scale or any proration. Only one Performance Bonus can be earned for an Applicable Period and if not earned
for such Applicable Period, such Performance Bonus shall be forfeited and null and void. In no event shall more than four Performance
Bonuses be earned and the aggregate amount of Performance Bonuses shall not exceed the Additional Payment. It is the intent of the parties
hereto that the Performance Bonuses are based solely on the aggregate Gross Sales of the operations of Alternative Medical Enterprises,
LLC, Plants of Ruskin GPS, LLC, and RVC 360, LLC that were acquired by the Company in the Combination on the Effective Date and shall
not include any operations acquired thereafter.


 


(b) Achievement of a Performance
Bonus shall be determined within ten business days of the final issuance of the applicable Company Financial Statements, and paid within
ten business days of determination that such Performance Bonus is earned and payable to Executive. Each Performance Bonus shall be paid
to Executive in accordance with the Cash and Share Percentages. Any Company Shares issued to Executive as part of a Performance Bonus
shall be subject to any lock-up agreement or similar trading restriction applicable to Executive with respect to Company Shares.


 


(c) As may be applicable, Canadian
dollars shall be converted into U.S. dollars using the applicable exchange rate at the date of determination as published by the Bank
of Canada.


 



    	14