Document:

ck6463825153-ex107_51.htm

Exhibit 10.7

 

KENSINGTON CAPITAL ACQUISITION CORP. II

1400 Old Country Road,  Suite 301

Westbury, NY 11590

January 4, 2021

 

Kensington Capital Sponsor II LLC

1400 Old Country Road,  Suite 301

Westbury, NY 11590

Re:Securities Subscription Agreement

Gentlemen:

This letter agreement (this “Agreement”) is entered into as of January 4, 2021 between Kensington Capital Sponsor II LLC, a Delaware limited liability company (the “Subscriber” or “you”), and Kensington Capital Acquisition Corp. II, a Delaware corporation (the “Company,” “we” or “us”) and confirms the Company’s acceptance of the offer the Subscriber has made to purchase 5,750,000 shares of Class B common stock, $0.0001 par value per share (the “Shares”), up to 750,000 of which are subject to forfeiture by you if the underwriters of the initial public offering (“IPO”) of units (“Units”) of the Company, do not fully exercise their over-allotment option (the “Over-allotment Option”). The Company and the Subscriber’s agreements regarding such Shares are as follows:

	
1.
	
Purchase of Securities.  For the sum of $25,000 (the “Purchase Price”), which the Company acknowledges receiving by check on behalf of the Subscriber, the Company hereby issues the Shares to the Subscriber, and the Subscriber hereby purchases the Shares from the Company, subject to forfeiture, on the terms and subject to the conditions set forth in this Agreement.  The Shares will be uncertificated and delivered in book-entry form.

	
2.
	
Representations, Warranties and Agreements.

2.1.Subscriber’s Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Subscriber, the Subscriber hereby represents and warrants to the Company and agrees with the Company as follows:

2.1.1.No Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or made any recommendation or endorsement of the offering of the Shares.

2.1.2.No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions contemplated hereby do not violate, conflict with or constitute a default under (a) the formation and governing documents of the Subscriber, (b) any agreement, indenture or instrument to which the Subscriber is a party, or (c) any law, statute, rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which the Subscriber is subject.

 

2.1.3.Organization and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good standing under the laws of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement. Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of Subscriber, enforceable against Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

2.1.4.Experience, Financial Capability and Suitability. Subscriber is: (a) sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Shares and (b) able to bear the economic risk of its investment in the Shares for an indefinite period of time because the Shares have not been registered under the Securities Act (as defined below) and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available. Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests. Subscriber must bear the economic risk of this investment until the Shares are sold pursuant to: (1) an effective registration statement under the Securities Act or (2) an exemption from registration available with respect to such sale. Subscriber is able to bear the economic risks of an investment in the Shares and to afford a complete loss of Subscriber’s investment in the Shares.

2.1.5.Access to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify the accuracy of all information so obtained. In determining whether to make this investment, Subscriber has relied solely on Subscriber’s own knowledge and understanding of the Company and its business based upon Subscriber’s own due diligence investigation and the information furnished pursuant to this paragraph. Subscriber understands that no person has been authorized to give any information or to make any representations which were not furnished pursuant to this Section 2 and Subscriber has not relied on any other representations or information in making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.

2.1.6.Regulation D Offering. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) and acknowledges the sale contemplated hereby is being made in reliance on a private placement exemption to “accredited investors” within the meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under state law.

2.1.7.Investment Purposes. The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s own account and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof. The 

 

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Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502 under the Securities Act.

2.1.8.Restrictions on Transfer; Shell Company. Subscriber understands the Shares are being offered in a transaction not involving a public offering within the meaning of the Securities Act. Subscriber understands the Shares will be “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, and Subscriber understands that the certificates or book-entries representing the Shares will contain a legend in respect of such restrictions. If in the future the Subscriber decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred only pursuant to: (a) registration under the Securities Act, or (b) an available exemption from registration. Subscriber agrees that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber may be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or an exemption, the Subscriber agrees not to resell the Shares. Subscriber further acknowledges that because the Company is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Shares until one year following consummation of the initial business combination of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer restrictions.

2.1.9.No Governmental Consents. No governmental, administrative or other third party consents or approvals are required, necessary or appropriate on the part of Subscriber in connection with the transactions contemplated by this Agreement.

2.2.Company’s Representations, Warranties and Agreements. To induce the Subscriber to purchase the Shares, the Company hereby represents and warrants to the Subscriber and agrees with the Subscriber as follows:

2.2.1.Organization and Corporate Power. The Company is a Delaware corporation and is qualified to do business in every jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating results or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out the transactions contemplated by this Agreement.

2.2.2.No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated hereby do not violate, conflict with or constitute a default under (a) the Certificate of Incorporation or By Laws of the Company, (b) any agreement, indenture or instrument to which the Company is a party, or (c) any law, statute, rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject.

2.2.3.Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Shares will be duly and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Subscriber will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances of any kind, other than (a) transfer restrictions hereunder and other agreements to which the Shares may be subject which have been notified to the Subscriber in writing, (b) 

 

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transfer restrictions under federal and state securities laws, and (c) liens, claims or encumbrances imposed due to the actions of the Subscriber.

2.2.4.No Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the Company which: (a) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement or (b) question the validity or legality of any transactions or seeks to recover damages or to obtain other relief in connection with any transactions.

	
3.
	
Forfeiture of Shares.

3.1.Partial or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the underwriters of the IPO is not exercised in full, the Subscriber acknowledges and agrees that it (or, if applicable, it and any transferees of Shares) shall forfeit any and all rights to such number of Shares (up to an aggregate of 656,250 Shares and pro rata based upon the percentage of the Over-allotment Option exercised) such that immediately following such forfeiture, the Subscriber (and all other initial stockholders prior to the IPO, if any) will own an aggregate number of Shares, not including Shares issuable upon exercise of any warrants or any Common Stock purchased by Subscriber in the IPO or in the aftermarket equal to 20% of the issued and outstanding Shares immediately following the IPO.

3.2.Termination of Rights as Stockholder. If any of the Shares are forfeited in accordance with this Section 3, then after such time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such forfeited Shares, and the Company shall take such action as is appropriate to cancel such forfeited Shares.

3.3.Shares Uncertificated. In the event any Shares or forfeited pursuant to this Section 3, then an adjustment to the number of securities held by the Subscriber shall be made by the Company in book-entry form.

	
4.
	
Waiver of Liquidation Distributions; Redemption Rights. In connection with the Shares purchased pursuant to this Agreement, the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions by the Company from the trust account which will be established for the benefit of the Company’s public stockholders and into which substantially all of the proceeds of the IPO will be deposited (the “Trust Account”), in the event of a liquidation of the Company upon the Company’s failure to timely complete an initial business combination. For purposes of clarity, in the event the Subscriber purchases Shares in the IPO or in the aftermarket, any additional Shares so purchased shall be eligible to receive any liquidating distributions by the Company. However, in no event will the Subscriber have the right to redeem any Shares into funds held in the Trust Account upon the successful completion of an initial business combination.

	
5.
	
Restrictions on Transfer.

5.1.Securities Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as an “Insider Letter”) to be dated as of the closing of the IPO by and between Subscriber and the Company, Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless, prior thereto (a) 

 

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a registration statement on the appropriate form under the Securities Act and applicable state securities laws with respect to the Shares proposed to be transferred shall then be effective or (b) the Company has received an opinion from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction is exempt from registration under the Securities Act and the rules promulgated by the Securities and Exchange Commission thereunder and with all applicable state securities laws.

5.2.Lock-up. Subscriber acknowledges that the Securities will be subject to lock-up provisions (the “Lock-up”) contained in the Insider Letter.

5.3.Restrictive Legends. The Company shall note in its books and records legends with respect to the Shares substantially as follows:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL, IS AVAILABLE.”

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”

5.4.Additional Shares or Substituted Securities. In the event of the declaration of a share dividend, the declaration of an extraordinary dividend payable in a form other than Shares, a spin-off, a share split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding Shares without receipt of consideration, any new, substituted or additional securities or other property which are by reason of such transaction distributed with respect to any Shares subject to this Section 5 or into which such Shares thereby become convertible shall immediately be subject to this Section 5 and Section Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of Shares subject to this Section 5 and Section 3.

5.5.Registration Rights. Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration requirements of the Securities Act and will become freely tradable only after certain conditions are met or they are registered pursuant to a registration rights agreement to be entered into with the Company prior to the closing of the IPO.

	
6.
	
Other Agreements.

6.1.Further Assurances. Subscriber agrees to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

6.2.Notices. All notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission 

 

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to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

6.3.Entire Agreement. This Agreement, together with the Insider Letter and the Registration Rights Agreement, each substantially in the form to be filed as an exhibit to the Registration Statement on Form S-1 associated with the Company’s IPO, embodies the entire agreement and understanding between the Subscriber and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

6.4.Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by all parties hereto.

6.5.Waivers and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.

6.6.Assignment. The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of the other party.

6.7.Benefit. All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement shall be construed to create any tights or obligations except among the parties hereto, and no person or entity shall be regarded as a third-party beneficiary of this Agreement.

6.8.Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be governed by and construed in accordance with the laws of New York that apply to contracts made and performed entirely within such state.

6.9.Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that such court shall deem any such provision, or portion thereof, wholly 

 

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unenforceable, the remaining provisions of this Agreement shall nevertheless remain in full force and effect.

6.10.No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand.

6.11.Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof and any investigations made by or on behalf of the parties.

6.12.No Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as to create any liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such claim.

6.13.Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

6.14.Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

6.15.Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. The words “include,” “includes,” and “including” will be 

 

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deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or covenant.

6.16.Mutual Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

	
7.
	
Voting and Tender of Shares. Subscriber agrees to vote the Shares in favor of an initial business combination that the Company negotiates and submits for approval to the Company’s stockholders and shall not seek redemption with respect to such Shares. Additionally, the Subscriber agrees not to tender any Shares in connection with a tender offer presented to the Company’s stockholders in connection with an initial business combination negotiated by the Company.

	
8.
	
Indemnification. Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s fees and expenses) incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

[Signature Page Follows]

 

 

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If the foregoing accurately sets forth our understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

	
Very truly yours,

	
 

	
KENSINGTON CAPITAL ACQUISITION CORP. II

	
 
	
 

	
 
	
 

	
By:
	
/s/ Robert Remenar

	
 
	
Name:
	
Robert Remenar

	
 
	
Title:
	
Vice Chairman and President

 

Accepted and agreed as of the date first written above.

 

KENSINGTON CAPITAL SPONSOR II LLC

 

 

	
By:
	
/s/ Justin Mirro

	
 
	
Name:
	
Justin Mirro

	
 
	
Title:
	
Chairman

 

[Signature Page to Securities Subscription Agreement]Exhibit 10.24

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(“Agreement”) is entered into on December 1, 2020 (“Effective Date”) by and between
Vireo Health, Inc., a Delaware corporation (the “Company”) and Amber Shimpa, an individual residing in the State
of Minnesota (“Employee”) (collectively “Parties” or individually “Party”).

 

RECITALS

 

WHEREAS, the
Company desires to continue to employ Employee pursuant to the terms of this Agreement and Employee desires to accept such employment
pursuant to the terms of this Agreement; and

 

WHEREAS, during
Employee’s employment with the Company, Employee has been and will become acquainted with technical and nontechnical information
which the Company has developed, acquired and uses, or which the Company has developed, acquired or used, or will develop, acquire
or use, and which is commercially valuable to the Company and which the Company desires to protect, and Employee may contribute
to such information through inventions, discoveries, improvements or otherwise.

 

NOW, THEREFORE,
in consideration of the employment of Employee by the Company, and further in consideration of the salary, wages or other compensation
and benefits to be provided by the Company to Employee, and for additional mutual covenants and conditions, the receipt and sufficiency
of which are hereby acknowledged, the Company and Employee, intending legally to be bound, hereby agree as follows:

 

AGREEMENT

 

In consideration of
the above recitals and the mutual promises set forth in this Agreement, the Parties agree as follows:

 

		1.	Nature and Capacity of Employment.

 

		1.1	Title and Duties. Effective as of Effective Date, the Company will employ Employee as its
Chief Administrative Officer, or such other title as may be assigned to Employee by the Company’s Chief Executive Officer
from time to time, pursuant to the terms and conditions set forth in this Agreement. Employee will perform such duties and responsibilities
for the Company as the Company’s Chief Executive Officer may assign to Employee from time to time consistent with Employee’s
position. The Employee hereby agrees to act in that capacity under the terms and conditions set forth in this Agreement. Employee
shall serve the Company faithfully and to the best of Employee’s ability and shall at all times act in accordance with the
law, excepting only the Controlled Substances Act as it applies to the state-licensed operations of the Company. Employee shall
devote Employee’s full working time, attention and efforts to performing Employee’s duties and responsibilities under
this Agreement and advancing the Company’s business interests. Employee shall follow applicable policies and procedures adopted
by the Company from time to time, including without limitation the Company’s Code of Conduct, Employee Handbook and other
Company policies, including those relating to business ethics, conflict of interest, non-discrimination and non-harassment. Employee
shall not, without the prior written consent of the Company’s Board of Directors (the “Board”), accept other
employment or engage in other business activities during Employee’s employment with the Company that may prevent Employee
from fulfilling the duties or responsibilities as set forth in or contemplated by this Agreement. Employee may participate in civic,
religious and charitable activities and personal investment activities to a reasonable extent, so long as such activities do not
interfere with the performance of Employee’s duties and responsibilities hereunder.

 

     

     

    

 

		1.2	No Restrictions. Employee hereby represents and confirms that Employee is under no contractual
or legal commitments that would prevent Employee from fulfilling Employee’s duties and responsibilities as set forth in this
Agreement.

 

		1.3	Location. Employee’s employment will be based at the Company’s corporate headquarters.
Employee acknowledges and agrees that Employee’s position, duties and responsibilities may require regular travel, both in
the U.S. and internationally.

 

		2.	Term. Unless terminated at an earlier date in accordance with Section 5, the term of
Employee’s employment with the Company under the terms and conditions of this Agreement will be for the period commencing
on the Effective Date and ending on the two (2) year anniversary of the Effective Date (the “Initial Term”). On
the two (2) year anniversary of the Effective Date, and on each succeeding one (1) year anniversary of the Effective
Date (each an “Anniversary Date”), the Term shall be automatically extended until the next Anniversary Date (each a
 “Renewal Term”), subject to termination on an earlier date in accordance with Section 5 or unless either Party
gives written notice of non-renewal to the other Party at least one hundred eighty (180) days prior to the Anniversary Date on
which this Agreement would otherwise be automatically extended that the Party providing such notice elects not to extend the Term;
provided, however, that if a Change in Control (as defined in Section 6.5) occurs during the Initial Term or during any Renewal
Term then the Term will expire on the one (1) year anniversary of the date of the Change in Control. The Initial Term together
with any Renewal Terms is the “Term.” If Employee remains employed by the Company after the Term ends for any reason,
then such continued employment shall be according to the terms and conditions established by the Company from time to time (provided
that any provisions of this Agreement and the Restrictive Covenants Agreement (as defined in Section 3) that by their terms
survive the termination of the Term shall remain in full force and effect).

 

		3.	Restrictive Covenants Agreement. On the Effective Date, Employee is executing a Confidential
Information, Intellectual Property Rights, Non-Competition and Non-Solicitation Agreement, in the form of Exhibit A attached
hereto and made a part hereof (the “Restrictive Covenants Agreement”). Employee acknowledges and agrees that the Company’s
execution of this Agreement and agreement to employ Employee are conditioned upon Employee executing the Restrictive Covenants
Agreement. Nothing in this Agreement is intended to modify, amend, cancel or supersede the Restrictive Covenants Agreement in any
manner.

 

		4.	Compensation, Benefits and Business Expenses.

 

		4.1	Base Salary. As of the Effective Date, the Company agrees to pay Employee an annualized
base salary of USD$260,000.00 (the “Base Salary”), which Base Salary will be earned by Employee on a pro rata
basis as Employee performs services and which shall be paid according to the Company’s normal payroll practices. For each
of the Company’s fiscal years during the Term, the Company’s Chief Executive Officer will conduct a periodic review
of Employee and, based on that review and the Chief Executive Officer’s discretion, establish Employee’s Base Salary
in an amount not less than the Base Salary in effect for the prior year, unless Employee’s Base Salary is reduced as part
of a general reduction in the base salaries for all officers of the Company and in substantially the same proportion as the reduction
in the base salaries for all officers of the Company. The review contemplated by this Section 4.1 need not be formal, nor
need it be conducted on or before a specific date.

 

		4.2	Annual Incentive Compensation. For each of the Company’s fiscal years during the Term,
Employee may be eligible to earn an annualized cash bonus if and in an amount determined by the Company’s Chief Executive
Officer in his or her discretion and subject to the terms of any written document addressing such annual cash bonus as the Company’s
Chief Executive Officer may adopt in his or her sole discretion. Unless specified otherwise a written annual cash bonus document
applicable to Employee, Employee must be employed on the date any annual cash bonus is paid in order to earn and receive each such
bonus.

 

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		4.3	[Reserved.]

 

		4.4	Employee Benefits. While Employee is employed by the Company during the Term, Employee shall
be entitled to participate in the retirement plans, health plans, and all other employee benefits made available by the Company,
and as they may be changed from time to time. Employee acknowledges and agrees that Employee will be subject to all eligibility
requirements and all other provisions of these benefits plans, and that the Company is under no obligation to Employee to establish
and maintain any employee benefit plan in which Employee may participate. The terms and provisions of any employee benefit plan
of the Company are matters within the exclusive province of the Board, subject to applicable law.

 

		4.5	Paid Time Off. While Employee is employed by the Company during the Term, Employee shall
have available unlimited personal time off in accordance with the Company’s policies then in effect. Paid time off may be
used for illness or other personal business, or as vacation time off at such times so as not to materially disrupt the operations
of the Company. Paid time off is intended to be used, not stored, and these days shall in no event be converted to cash, nor shall
any unused days be paid to Employee upon termination of his employment under this Agreement.

 

		4.6	Business Expenses. While Employee is employed by the Company during the Term, the Company
shall reimburse Employee for all reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by
Employee in the performance of Employee’s duties and responsibilities hereunder, subject to the Company’s normal policies
and procedures for expense verification and documentation.

 

		5.	Termination of Employment.

 

		5.1	Termination of Employment Events. Employee’s employment with the Company is at-will.
Employee’s employment with the Company will terminate immediately upon:

 

		(a)	The date of Employee’s receipt of written notice from the Company of the termination of Employee’s
employment (or any later date specified in such written notice from the Company);

 

		(b)	Employee’s abandonment of Employee’s employment or the effective date of Employee’s
resignation for Good Reason (as defined below) or any other reason (as specified in written notice from Employee);

 

		(c)	Employee’s Disability (as defined below); or

 

		(d)	Employee’s death.

 

		5.2	Termination Date. The date upon which Employee’s termination of employment with the
Company is effective is the “Termination Date.” For purposes of Sections 6.1 or 6.2 only, with respect to the timing
of the Pre-CIC Severance Payments or the Post-CIC Severance Payment (as applicable), the Pre-CIC Benefits Continuation Payments
or the Post-CIC Benefits Continuation Payments (as applicable), the Outplacement Payments, the Termination Date means the date
on which a “separation from service” has occurred for purposes of Section 409A of the Internal Revenue Code, as
amended, and the regulations and guidance thereunder (the “Code”).

 

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		5.3	Resignation From Positions. Unless otherwise requested by the Board in writing, upon Employee’s
termination of employment with the Company for any reason Employee shall automatically resign as of the Termination Date from all
titles, positions and appointments Employee then holds with the Company, whether as an officer, director, trustee or employee (without
any claim for compensation related thereto), and Employee hereby agrees to take all actions necessary to effectuate such resignations.

 

		6.	Payments Upon Termination of Employment.

 

		6.1	Termination of Employment Without Cause or for Good Reason During the Term and Before the First
Change in Control. If Employee’s employment with the Company is terminated during the Term by the Company for any reason
other than for Cause (as defined in Section 6.4), or by Employee for Good Reason (as defined in Section 6.6), and the
Termination Date occurs before the first Change in Control to occur during the Term, then the Company shall, in addition to paying
Employee’s Base Salary and other compensation earned through the Termination Date, and subject to Section 6.9,

 

		(a)	pay to Employee as severance pay an amount equal to fifty percent (50%) of Employee’s annualized
Base Salary as of the Termination Date, less all legally required and authorized deductions and withholdings, payable in substantially
equal installments in accordance with the Company’s regular payroll cycle during the twelve (12) month period immediately
following the Termination Date, provided, however, that any installments that otherwise would be payable on the Company’s
regular payroll dates between the Termination Date and the 45th calendar day after the Termination Date will be delayed until the
Company’s first regular payroll date that is more than forty-five (45) days after the Termination Date and included with
the installment payable on such payroll date (the “Pre-CIC Severance Payments”); and

 

		(b)	if Employee is eligible for and takes all steps necessary to continue Employee’s group health
insurance coverage with the Company following the Termination Date (including completing and returning the forms necessary to elect
COBRA coverage), pay for the portion of the premium costs for such coverage that the Company would pay if Employee remained employed
by the Company, at the same level of coverage that was in effect as of the Termination Date, through the earliest of: (i) the
six (6) month anniversary of the Termination Date, (ii) the date Employee becomes eligible for group health insurance
coverage from any other employer, or (iii) the date Employee is no longer eligible to continue Employee’s group health
insurance coverage with the Company under applicable law (“Pre-CIC Benefits Continuation Payments”).

 

		6.2	Termination of Employment Without Cause or for Good Reason During the Term and Within Twelve
(12) Months After the First Change in Control. If Employee’s employment with the Company is terminated during the Term
by the Company for any reason other than for Cause, or by Employee for Good Reason, and the Termination Date occurs on the date
of the first Change in Control to occur during the Term or before the twelve (12) month anniversary of such Change in Control,
then the Company shall, in addition to paying Employee’s Base Salary and other compensation earned through the Termination
Date, and subject to Section 6.9,

 

    	 	4	 

     

    

 

		(a)	pay to Employee as severance pay an amount equal to one hundred percent (100%) of Employee’s
annualized Base Salary as of the Termination Date, less all legally required and authorized deductions and withholdings, payable
in a lump sum on the Company’s first regular payroll date that is after the expiration of all rescission periods identified
in the Release (as defined in Section 6.9) but in no event later than seventy-five (75) days after the Termination Date (the
 “Post-CIC Severance Payment”); provided, however, if the Post-CIC Severance Payment could be made in two different
calendar years based on the date on which Employee signs the Release and all rescission periods identified in the Release expire,
then the Post-CIC Severance Payment shall be paid in a lump sum in the second calendar year but no later than March 15 of
such calendar year;

 

		(b)	if Employee is eligible for and takes all steps necessary to continue Employee’s group health
insurance coverage with the Company following the Termination Date (including completing and returning the forms necessary to elect
COBRA coverage), pay for the portion of the premium costs for such coverage that the Company would pay if Employee remained employed
by the Company, at the same level of coverage that was in effect as of the Termination Date, through the earliest of: (i) the
twelve (12) month anniversary of the Termination Date, (ii) the date Employee becomes eligible for group health insurance
coverage from any other employer, or (iii) the date Employee is no longer eligible to continue Employee’s group health
insurance coverage with the Company under applicable law (“Post-CIC Benefits Continuation Payments”); and

 

		(c)	pay up to $10,000.00 for outplacement services by an outplacement services provider selected by
Employee, with any such amount payable by the Company directly to the outplacement services provider or reimbursed to Employee,
in either case subject to Employee’s submission of appropriate receipts before the twelve (12) month anniversary of the Termination
Date (the “Outplacement Payments”).

 

		6.3	Other Termination of Employment Events. If Employee’s employment with the Company
is terminated by the Company or Employee for any reason upon or following the expiration of the Term, or if Employee’s employment
with the Company is terminated during the Term by reason of:

 

		(a)	Employee’s abandonment of Employee’s employment or Employee’s resignation for
any reason other than Good Reason;

 

		(b)	termination of Employee’s employment by the Company for Cause; or

 

		(c)	Employee’s death or Disability,

 

then the Company shall pay to
Employee or Employee’s beneficiary or Employee’s estate, as the case may be, Employee’s Base Salary and other
compensation earned through the Termination Date and Employee shall not be eligible or entitled to receive any severance pay or
benefits from the Company.

 

		6.4	Cause Defined. “Cause” hereunder means:

 

		(a)	Employee’s material failure to perform his job duties competently as reasonably determined
by the Board;

 

    	 	5	 

     

    

 

		(b)	gross misconduct by Employee which the Board reasonably determines is (or will be if continued)
demonstrably and materially damaging to the Company;

 

		(c)	fraud, misappropriation, or embezzlement by Employee;

 

		(d)	an act or acts of dishonesty by Employee and intended to result in gain or personal enrichment
of Employee at the expense of the Company;

 

		(e)	Employee’s conviction of or plea of nolo contendere to a felony regardless of whether involving
the Company and whether or not committed during the course of Employee’s employment, other than with respect to any criminal
penalties related to the illegality of possessing or using Marijuana under the Controlled Substance Act, 21 U.S.C. Section 812(b);

 

		(f)	Employee’s violation of the Company’s Code of Conduct, Employee Handbook or other material
written policy, as reasonably determined by the Board; or

 

		(g)	the material breach of this Agreement of the Restrictive Covenants Agreement by Employee.

 

With respect to Section 6.4(a) and
Section 6.4(f), the Company shall first provide Employee with written notice and an opportunity to cure such breach, if curable,
in the reasonable discretion of the Board, and identify with specificity the action needed to cure within fifteen (15) days of
Employee’s receipt of written notice from the Company. If the Company terminates Employee’s employment for Cause pursuant
to this Section 6.4, then Employee shall not be eligible or entitled to receive any severance pay or benefits from the Company.

 

		6.5	Change in Control Defined. “Change in Control” hereunder has the same meaning
such term has in the Vireo Health International Inc. 2019 Equity Incentive Plan, as amended from time to time (the “Equity
Incentive Plan”).

 

		6.6	Good Reason Defined. “Good Reason” hereunder means the initial occurrence of
any of the following events without Employee’s consent:

 

		(a)	a material diminution in the Employee’s responsibilities, authority or duties or a change
in his title;

 

		(b)	a material diminution in the Employee's salary, other than a general reduction in base salaries
that affects all similarly situated Company employees in substantially the same proportions;

 

		(c)	a relocation of the Employee’s principal place of employment to a location more than fifty
(50) miles from his principal place of employment on the Effective Date; or

 

		(d)	the material breach of this Agreement by the Company.

 

provided, however, that “Good
Reason” shall not exist unless Employee has first provided written notice to the Company of the initial occurrence of one
or more of the conditions under clauses (a) through (d) above within thirty (30) days of the condition’s occurrence,
such condition is not fully remedied by the Company within thirty (30) days after the Company’s receipt of written notice
from Employee, and the Termination Date as a result of such event occurs within ninety (90) days after the initial occurrence of
such event.

 

    	 	6	 

     

    

 

		6.7	Disability Defined. “Disability” hereunder has the same meaning such term has
in the Equity Incentive Plan.

 

		6.8	The Company’s Sole Obligation. In the event of termination of Employee’s employment,
the sole obligation of the Company to provide Employee with severance pay or benefits shall be its obligation to make the payments
called for by Section 6.1 or Section 6.2, as the case may be, and the Company shall have no other severance-related obligation
to Employee or to Employee’s beneficiary or Employee’s estate. For avoidance of doubt, nothing in this Section 6.8
affects Employee’s right to receive any amounts due under the terms of any employee benefit plans or programs (other than
any severance-related plan or program) then maintained by the Company in which Employee participates.

 

		6.9	Conditions To Receive Payments. Notwithstanding the foregoing provisions of this Section 6,
the Company will not be obligated to make the Pre-CIC Severance Payments or Pre-CIC Benefits Continuation Payments under Section 6.1,
or the Post-CIC Severance Payment, Post-CIC Benefits Continuation Payments or Outplacement Payments under Section 6.2, to
or on behalf of Employee unless (a) Employee signs a release of claims in favor of the Company in a form to be prescribed
by the Company (the “Release”), (b) all applicable consideration periods and rescission periods provided by law
with respect to the Release have expired without Employee rescinding the Release, and (c) Employee is in strict compliance
with the terms of this Agreement and the Restrictive Covenants Agreement and any other written agreement between Employee and the
Company.

 

		7.	Anticipatory Termination without Cause. If Employee’s employment with the Company
is terminated during the Term by the Company for any reason other than for Cause or by Employee for Good Reason, and a Change in
Control occurs (i) within six (6) months after Employee’s Termination Date or (ii) within one year after Employee’s
Termination Date, pursuant to an agreement executed within sixty (60) days after Employee’s Termination Date, then Employee
shall receive an additional cash payment equal to fifty percent (50%) of Employee’s annualized Base Salary as of the Termination
Date, less all legally required and authorized deductions and withholdings, payable in a single lump sum no later than ten (10) days
after the date of such Change in Control.

 

		8.	Section 409A and Taxes Generally.

 

		8.1	Taxes. The Company is entitled to withhold on and report the making of such payments as
may be required by law as determined in the reasonable discretion of the Company. Except for any tax amounts withheld by the Company
from any compensation that Employee may receive in connection with Employee’s employment with the Company and any employer
taxes required to be paid by the Company under applicable laws or regulations, Employee is solely responsible for payment of any
and all taxes owed in connection with any compensation, benefits, reimbursement amounts or other payments Employee receives from
the Company under this Agreement or otherwise in connection with Employee’s employment with the Company. The Company does
not guarantee any particular tax consequence or result with respect to any payment made by the Company.

 

    	 	7	 

     

    

 

		8.2	Section 409A. This Agreement is intended to provide for payments that satisfy, or are
exempt from, the requirements of Section 409A, including Sections 409A(a)(2), (3) and (4) of the Code and current
and future guidance and regulations interpreting such provisions, and should be interpreted accordingly. In furtherance of the
foregoing, the provisions set forth below shall apply notwithstanding any other provision in this Agreement:

 

		(a)	all payments to be made to Employee hereunder, to the extent they constitute a deferral of compensation
subject to the requirements of Section 409A (after taking into account all exclusions applicable to such payments under Section 409A),
shall be made no later, and shall not be made any earlier, than at the time or times specified in this Agreement or in any applicable
plan for such payments to be made, except as otherwise permitted or required under Section 409A;

 

		(b)	the date of Employee’s “separation from service”, as defined in Section 409A
(and as determined by applying the default presumptions in Treas. Reg. §1.409A-1(h)(1)(ii)), shall be treated as the date
of Employee’s termination of employment for purposes of determining the time of payment of any amount that becomes payable
to Employee related to Employee’s termination of employment under Sections 10(a), 10(b) or 10(c), and any reference
to Employee’s “Termination Date” or “termination” of Employee’s employment in Section 6.1
or Section 6.2 shall mean the date of Employee’s “separation from service”, as defined in Section 409A
(and as determined by applying the default presumptions in Treas. Reg. §1.409A-1(h)(1)(ii));

 

		(c)	in the case of any amounts payable to Employee under this Agreement that may be treated as payable
in the form of “a series of installment payments”, as defined in Treas. Reg. §1.409A-2(b)(2)(iii), Employee’s
right to receive such payments shall be treated as a right to receive a series of separate payments for purposes of Treas. Reg.
 §1.409A-2(b)(2)(iii);

 

		(d)	to the extent that the reimbursement of any expenses eligible for reimbursement or the provision
of any in-kind benefits under any provision of this Agreement would be considered deferred compensation under Section 409A
(after taking into account all exclusions applicable to such reimbursements and benefits under Section 409A): (i) reimbursement
of any such expense shall be made by the Company as soon as practicable after such expense has been incurred, but in any event
no later than December 31st of the year following the year in which Employee incurs such expense; (ii) the amount of
such expenses eligible for reimbursement, or in-kind benefits to be provided, during any calendar year shall not affect the amount
of such expenses eligible for reimbursement, or in-kind benefits to be provided, in any calendar year; and (iii) Employee’s
right to receive such reimbursements or in-kind benefits shall not be subject to liquidation or exchange for another benefit;

 

		(e)	to the extent any payment or delivery otherwise required to be made to Employee hereunder on account
of Employee’s separation from service is properly treated as a deferral of compensation subject to Section 409A after
taking into account all exclusions applicable to such payment and delivery under Section 409A, and if Employee is a “specified
employee” under Section 409A at the time of Employee’s separation from service, then such payment and delivery
shall not be made prior to the first business day after the earlier of (i) the expiration of six months from the date of Employee’s
separation from service, or (ii) the date of Employee’s death (such first business day, the “Delayed Payment Date”),
and on the Delayed Payment Date, there shall be paid or delivered to Employee or, if Employee has died, to Employee’s estate,
in a single payment or delivery (as applicable) all entitlements so delayed, and in the case of cash payments, in a single cash
lump sum, an amount equal to aggregate amount of all payments delayed pursuant to the preceding sentence. Except for any tax amounts
withheld by the Company from the payments or other consideration hereunder and any employment taxes required to be paid by the
Company, Employee shall be responsible for payment of any and all taxes owed in connection with the consideration provided for
in this Agreement; and

 

    	 	8	 

     

    

 

		(f)	the Parties agree that this Agreement may be amended, as may be necessary to fully comply with,
or to be exempt from, Section 409A and all related rules and regulations in order to preserve the payments and benefits
provided hereunder without additional cost to either Party.

 

		9.	Miscellaneous.

 

		9.1	Integration. This Agreement and the Restrictive Covenants Agreement embody the entire agreement
and understanding among the Parties relative to subject matter hereof and combined supersede all prior agreements and understandings
relating to such subject matter, including but not limited to any earlier offers to Employee by the Company; provided, however,
this Agreement and the Restrictive Covenants Agreement are not intended to supersede or otherwise affect the Equity Incentive Plan
or any Award Agreement (as defined in the Equity Incentive Plan), each of which shall remain in effect in accordance with its terms.

 

		9.2	Applicable Law. All matters relating to the interpretation, construction, application, validity
and enforcement of this Agreement are governed by the laws of the State of Minnesota without giving effect to any choice or conflict
of law provision or rule, whether of the State of Minnesota or any other jurisdiction, that would cause the application of laws
of any jurisdiction other than the State of Minnesota.

 

		9.3	Choice of Jurisdiction. Employee and the Company consent to jurisdiction of the courts of
the State of Minnesota and/or the federal district courts, District of Minnesota, for the purpose of resolving all issues of law,
equity, or fact, arising out of or in connection with this Agreement or Employee’s employment with the Company or the termination
of such employment. Any action involving claims for interpretation, breach or enforcement of this Agreement or related to Employee’s
employment with the Company or the termination of such employment shall be brought in such courts. Each party consents to personal
jurisdiction over such party in the state and/or federal courts of Minnesota and hereby waives any defense of lack of personal
jurisdiction or inconvenient forum.

 

		9.4	Employee’s Representations. Employee represents that Employee is not subject to any
agreement or obligation that would prevent or limit Employee from entering into this Agreement or that would be breached upon performance
of Employee’s duties under this Agreement, including but not limited to any duties owed to any former employers not to compete.
If Employee possesses any information that Employee knows or should know is considered by any third party, such as a former employer
of Employee’s, to be confidential, trade secret, or otherwise proprietary, Employee shall not disclose such information to
the Company or use such information to benefit the Company in any way.

 

		9.5	Counterparts. This Agreement may be executed in several counterparts and as so executed
shall constitute one agreement binding on the Parties.

 

		9.6	Assignment and Successors. The rights and obligations of the Company under this Agreement
shall inure to the benefit of and will be binding upon the successors and assigns of the Company. Neither party may, without the
written consent of the other party, assign or delegate any of its rights or obligations under this Agreement except that the Company
may, without any further consent of Employee, assign or delegate any of its rights or obligations under this Agreement to any corporation
or other business entity (a) with which the Company may merge or consolidate, (b) to which the Company may sell or transfer
all or substantially all of its assets or capital stock or equity, or (c) any affiliate or subsidiary of the Company. After
any such assignment or delegation by the Company, the Company will be discharged from all further liability hereunder and such
assignee will thereafter be deemed to be the “Company” for purposes of all terms and conditions of this Agreement,
including this Section 9.6. Employee may not assign this Agreement or any rights or obligations hereunder. Any purported or
attempted assignment or transfer by Employee of this Agreement or any of Employee’s duties, responsibilities, or obligations
hereunder is void.

 

    	 	9	 

     

    

 

		9.7	Modification. This Agreement shall not be modified or amended except by a written instrument
signed by the Parties.

 

		9.8	Severability. The invalidity or partial invalidity of any portion of this Agreement shall
not invalidate the remainder thereof, and said remainder shall remain in fully force and effect.

 

		9.9	Opportunity to Obtain Advice of Counsel. Employee acknowledges that Employee has been advised
by the Company to obtain legal advice prior to executing this Agreement, and that Employee had sufficient opportunity to do so
prior to signing this Agreement.

 

		9.10	280G Limitations. In the event that the severance and other benefits provided for in this
Agreement or otherwise payable to Employee (a) constitute “parachute payments” within the meaning of Section 280G
of the Code and (b) would be subject to the excise tax imposed by Code Section 4999, then such benefits shall be either
be: (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such severance
benefits being subject to excise tax under Code Section 4999, whichever of the foregoing amounts, taking into account the
applicable federal, state and local income and employment taxes and the excise tax imposed by Code Section 4999, results in
the receipt by Employee, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of
such benefits may be subject to excise tax under Code Section 4999. Any determination required under this Section 9.10
will be made in writing by an accounting firm selected by the Company or such other person or entity to which the parties mutually
agree (the “Accountants”), whose determination will be conclusive and binding upon Employee and the Company for all
purposes. For purposes of making the calculations required by this Section 9.10, the Accountants may make reasonable assumptions
and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application
of Code Sections 280G and 4999. The Company and the Employee shall furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section 9.10. Any reduction in payments
and/or benefits required by this Section 9.10 shall occur in the following order: (A) cash payments shall be reduced
first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event
triggering such excise tax will be the first cash payment to be reduced; (B) accelerated vesting of stock awards, if any,
shall be cancelled/reduced next and in the reverse order of the date of grant for such stock awards (i.e., the vesting of the most
recently granted stock awards will be reduced first), with full-value awards reversed before any stock option or stock appreciation
rights are reduced; and (C) deferred compensation amounts subject to Section 409A shall be reduced last.

 

[Signature Page Follows]

 

    	 	10	 

     

    

 

THIS EMPLOYMENT
AGREEMENT was voluntarily and knowingly executed by the Parties effective as of the Effective Date first set forth above.

 

	 	 	VIREO HEALTH, INC.
	 	 	 
	 	 	 
	Date: December 22, 2020	 	/s/ Kyle Kingsley
	 	 	By: Kyle Kingsley
	 	 	Its: Chief Executive Officer
	 	 	 
	 	 	 
	 	 	EMPLOYEE:
	 	 	 
	 	 	 
	Date: December 12, 2020	 	/s/ Amber Shimpa
	 	 	Amber Shimpa

 

[Signature Page to Employment Agreement]

 

     

     

    

 

Exhibit A

to Employment Agreement

 

Confidential Information, Intellectual
Property Rights, Non-Competition and Non-Solicitation Agreement

 

     

     

    

 

CONFIDENTIAL INFORMATION, INTELLECTUAL
PROPERTY RIGHTS,

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

 

This Confidential Information, Intellectual
Property Rights, Non-Competition and Non-Solicitation Agreement (the “Agreement”) is made and entered into by
and between Vireo Health, Inc., a Delaware corporation (“Company”) and Amber Shimpa (“Employee”),
as of December 1, 2020 (the “Effective Date”). Each of Company and Employee hereinafter may be referred
to individually as a “Party” or, collectively, as the “Parties.” In consideration of Employee’s employment
with Company, the compensation Employee will earn in connection with such employment, Company entering into an Employment Agreement
with Employee (the “Employment Agreement”), Company providing Employee with ongoing access to Confidential Information
(as defined below), and other good and valuable consideration, the sufficiency and receipt of which Employee acknowledges, Employee
agrees as follows:

 

		1.	Confidential Information

 

		1.1	Confidential Information and Trade Secrets Defined. Employee hereby acknowledges and understands
the term “Confidential Information” means any data, information, or material of Company or its owners or its
Affiliates relating directly or indirectly to Company or its owners or Affiliates: clients and customers or potential clients and
customers (collectively “Customer(s)”); competitors; vendors; advertisers; employees; contractors; suppliers;
or business partners, that is discovered or developed by, or disclosed to, Employee through Employee’s relationship with
Company, that is not generally ascertainable from public information, whether it is expressly identified as “confidential”
or “trade secret,” that includes, but is not limited to: financial information; invoices; business plans; business
and contract applications; contracts; forms; research; price lists; marketing materials; advertising materials and developments;
sales materials and reports; copyrighted materials; Trade Secrets; the particular needs and requirements of Customers; identities
of potential Customers; and all accompanying Customer data. Employee hereby acknowledges and understands the term “Trade
Secret(s)” includes, but is not limited to, a confidential, proprietary, and/or sensitive: formula; software; methodology;
model; architecture; pattern; compilation; program; device; method; technique; or process, that is discovered, developed in whole
or part by Employee, or disclosed to Employee, through Employee’s relationship with Company, including any information, data,
or material concerning the Business (as defined in Subsection 3.2), and all other information related to Company and its owner
and Affiliates businesses, that is not generally known and readily ascertainable by proper means by any other person and/or Employee.
This includes, but is not limited to, all inventions or discoveries made by Employee and/or Company (or its owners or Affiliates)
resulting in whole or part from Employee’s relationship with Company. The term “Trade Secret(s)” also
includes, but is not limited to, Customer lists, invoices and reports containing specifically developed information, such as the
name, address, phone number, buying history and other traits of Customers, along with any other information that Company derives
a competitive advantage from and that Company makes reasonable efforts to maintain as secret. For purposes of this Agreement, “Affiliates”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, or an unincorporated organization, that directly, or indirectly through one or more intermediaries, controls,
or has been or is controlled by, or is under common control with, Company, including without limitation Vireo Health International, Inc.

 

		1.2	Use & Restriction. Employee acknowledges that Employee has had and will continue
to have access to and be provided with Confidential Information in connection with performing services for Company. Employee expressly
recognizes that the efficacy and profitability of Company and its owners and Affiliates is dependent in part upon Employee’s
protection of the Confidential Information. Employee may use the Confidential Information solely in connection with performing
services for Company and its owners and Affiliates. To ensure the continued confidentiality of the Confidential Information, Employee
agrees to hold the Confidential Information in strict confidence. Employee shall not, either during Employee’s relationship
with Company, or for such period as such information remains Confidential Information after termination, disclose or use for Employee’s
own benefit or for the benefit of any other individual or third party, directly or indirectly, any of the Confidential Information,
except as such disclosure or use is expressly authorized by Company in writing. Employee hereby agrees to adhere to the method
and form of protection of Confidential Information required by Company, subject to change at Company’s sole discretion. Employee
shall not communicate any Confidential Information, even in furtherance of Company’s business, to any individual or third
party not privy to the Confidential Information, without express consent by Company and the individual or third party’s agreement
to be bound by confidentiality terms that adequately protect Company’s Confidential Information.

 

     

     

    

 

		1.3	Exceptions. The confidentiality and restriction on the use of Confidential Information under
this Agreement shall not apply to Confidential Information to the extent that such Confidential Information: is now, or hereafter
becomes, through no breach of this Agreement by Employee, generally known or available to the public; was known to Employee without
an obligation to hold it in confidence prior to the time such Confidential Information was disclosed to Employee by Company; is
disclosed or used, as applicable, with the prior written consent of Company and in accordance with any limitations or conditions
on such disclosure or use that may be imposed in such written consent; or was or is independently developed by Employee without
any use of or reference to the Confidential Information. In addition, notwithstanding any other language in this Agreement to the
contrary, Employee understands that Employee may not be held criminally or civilly liable under any federal or state trade secret
law for the disclosure of a trade secret that is made (a) in confidence to a federal, state or local government official,
either directly or indirectly, or to an attorney if such disclosure is made solely for the purpose of reporting or investigating
a suspected violation of law or for pursuing an anti-retaliation lawsuit; or (b) in a complaint or other document filed in
a lawsuit or other proceeding, if such filing is made under seal and Employee does not disclose the trade secret except pursuant
to a court order.

 

		1.4	Required Disclosure. The confidentiality obligations under this Agreement shall not apply
to Confidential Information to the extent that such Confidential Information is required to be disclosed pursuant to the order
or requirement of a court, administrative agency, or other authority, or otherwise by operation of applicable law. In the event
of such order or requirement, Employee, if and to the extent permitted by law, shall give Company written notice thereof and of
the Confidential Information to be disclosed as soon as practicable prior to disclosure of such Confidential Information and shall
provide such reasonable assistance as Company may request, at Company’s sole expense, in seeking a protective order or other
appropriate relief in order to protect the confidentiality of the Confidential Information.

 

		1.5	Other Nondisclosure Agreements. In the event that Company is subject to the terms of any
confidentiality or nondisclosure agreement relating to some or all of the Confidential Information that imposes greater restrictions
on the disclosure and/or use of such Confidential Information, then Employee shall comply with such greater restrictions to the
extent that Employee is made aware of them.

 

		1.6	Property of Company. Employee specifically acknowledges and understands that all Confidential
Information and all of Company’s and its owners and its Affiliates strategies and files, including, but not limited to, computer
data, reports, materials, records, documents, notes, memoranda, and other items, and any originals or copies thereof, related to
the business of Company or its owners or its Affiliates, which Employee either is provided, prepares, uses, or simply acquires
during the term of this Agreement, are and shall remain the sole and exclusive property of Company and, to the extent applicable,
shall not be removed from Company’s premises without the prior consent of Company.

 

    	 	2	 

     

    

 

		1.7	Return or Destroy Confidential Information. Employee agrees, immediately upon the termination
of the relationship between Employee and Company for any reason or upon earlier request by Company to make a diligent search for
any and all documents, computer discs, electronic files, software, tapes, computer printouts, or any other material constituting
Confidential Information described in this Section 1, and shall: cease using the Confidential Information; promptly return
to Company or destroy all Confidential Information and any copies thereof; and certify in writing that Employee has complied with
the obligations of this Subsection 1.7.

 

		1.8	Return of Company Property. Employee agrees, immediately upon the termination of the relationship
between Employee and Company for any reason or upon earlier request by Company to promptly deliver to Company all Company property
not covered by Subsection 1.7.

 

		2.	Intellectual Property

 

		2.1	Prior Inventions. Any intellectual property, including, but not limited to, any ideas, inventions,
patents, trademarks, service marks, copyrights, creations, know how, work product, and other developments or improvements, if any,
patented or unpatented, that Employee, alone or with others, conceived, created, invented, developed, reduced to practice, or caused
to be conceived and or caused to be reduced to practice prior to the earlier of (a) commencement of Employee’s employment
with Company or (b) when Employee first provided services to Company, is listed on Schedule 1 attached hereto (“Prior
Inventions”).

 

		2.2	Ownership. Except with respect to Prior Inventions, all right, title, and interest of every
kind and nature, whether now known or unknown, in and to any and all intellectual property, including, but not limited to, any
ideas, inventions, patents, trademarks, service marks, copyrights, creations, know how, work product, properties and other developments
or improvements, patented or unpatented, conceived, created, invented, written, developed, furnished, produced, disclosed, reduced
to practice, or caused to be conceived and or caused to be reduced to practice in whole or in part, alone or with others, whether
or not during working hours, by Employee during the term of Employee’s employment with Company and for six (6) months
thereafter, that are within the scope of Company’s business operations or that relate to any of Company’s work or projects,
will, as and between Company and Employee, be and remain the sole and exclusive property of Company for any and all purposes and
uses, and Employee hereby agrees to assign and assigns all rights thereto to Company. Intellectual property may be in any form
including, but not limited to, written, oral, electronic, digital, or other form.

 

		2.3	Work Made for Hire. Any work of Employee for which a copyright could be claimed developed
in the course of employment with the Company will be deemed “work made for hire” under federal copyright law and all
ownership rights to such work belong exclusively to Company. To the extent any invention does not qualify as a work for hire under
applicable law, and to the extent any invention is subject to copyright, patent, trade secret, or other proprietary right protection,
Employee hereby assigns, and agrees to assign, all rights therein to Company.

 

    	 	3	 

     

    

 

		2.4	Pre-Existing Work. If, in the course of Employee’s relationship with Company, Employee
has used or uses, has relied upon or relies upon, has provided or provides, or has incorporated or incorporates any Prior Invention
or any other intellectual property Employee owns, or in which Employee has had or has an interest, into any idea, invention, patent,
trademark, service mark, copyright, creation, know how, work product, and other development or improvement conceived, created,
invented, written, developed, furnished, produced, or disclosed in whole or in part, alone or with others, whether or not during
working hours, by Employee during the term of Employee’s employment with Company, Employee hereby grants Company, under all
of Employee’s intellectual property and proprietary rights, the following worldwide, non-exclusive, perpetual, irrevocable,
royalty free, fully paid up rights: (a) to make, use, copy, modify, and create derivative works of such intellectual property;
(b) to publicly perform or display, import, broadcast, transmit, distribute, license, offer to sell, and sell, rent, lease
or lend copies of the intellectual property, and derivative works of the intellectual property; and (c) to sublicense the
rights in this Subsection 2.3 to third parties.

 

		2.5	Required Undertakings. Employee agrees, both while an employee of Company and thereafter,
to assist Company and its owners and Affiliates, at Company’s expense, in any and all attempts to obtain patents, copyrights,
and/or trademarks or other intellectual property protection on any work Employee participated in developing and agrees to execute
all documents necessary to obtain such rights in the name of or to transfer such rights to Company. If, because of Employee’s
mental or physical incapacity or for any other reason whatsoever, Company is unable to secure Employee’s signature to apply
for or pursue any patents, copyrights, or other protection for any invention assigned to Company under this Agreement or otherwise,
Employee irrevocably designates and appoints Company and its duly authorized officers and agents as Employee’s agent and
attorney-in-fact to act for Employee and on Employee’s behalf and stead to file any applications and to do all other lawfully-permitted
acts to further the prosecution and issuance of any patents, copyrights, or other protections with the same legal force and effect
as if executed by Employee.

 

		2.6	Limited Exclusion. This Section 2 does not apply to any inventions or intellectual
property for which no equipment, supplies, facility or Confidential Information of Company was used, and which was developed entirely
on Employee’s own time, and (a) which does not relate (i) directly or indirectly to the business of Company or
(ii) to Company’s actual or demonstrably anticipated research or development, or (b) which does not result from
any work performed by Employee for Company.

 

		3.	Non-competition and Non-solicitation

 

		3.1	No Existing Restrictions. Employee represents and warrants that Employee is not a party
to any confidentiality agreement, non-competition agreement, non-solicitation agreement, intellectual property rights agreement,
or any other agreement with any former employer or other entity that in any way prohibits or inhibits Employee’s ability
to (a) be employed by Company; (b) perform services for Company; (c) enter into this Agreement; or (d) comply
with Employee’s obligations under this Agreement.

 

    	 	4	 

     

    

 

		3.2	Non-competition and Non-solicitation. Employee acknowledges that Company is engaged in the
business of the promotion, manufacture, cultivation, marketing or distribution of cannabis (the “Business”).
Employee agrees that during the term of Employee’s employment with Company and for twelve (12) consecutive months from the
date of the termination of such employment (the “Restricted Period”), regardless of the reason for such termination
and whether such termination is at the initiative of Employee or Company, Employee will not, directly or indirectly, individually
or in connection with other individuals or entities, without the prior written consent of Company:

 

		(a)	Other than on behalf of Company, anywhere within a Market Area (as defined herein) in which Company
or any of its Affiliates is then operating or doing business or in which the Company has then or within the prior six (6) months
identified an intention of doing business (as confirmed by reasonable written support including, but not limited to, having begun
the application or certification process to enable such Company or an Affiliate to do business in such Market Area) (the “Restricted
Area”), control, manage, operate, be employed or engaged by, or otherwise participate, assist, or engage in business as,
or own an interest in or provide financial or other assistance to, or permit Employee’s name to be used in connection with,
any individual proprietorship, partnership, corporation, joint venture, trust or any other form of business entity, if such entity
is engaged, in whole or in part, in business or operations that compete with or that is the same as or substantially similar to
the Business or that compete with or that is the same as or substantially similar to any other business then engaged in by Company
or Company’s owners or Affiliates, in in the Restricted Area; provided, however, this Section 3.2(a) does not prohibit
or restrict Employee from holding a passive investment of not more than one percent (1%) of the outstanding shares of the capital
stock of any publicly held corporation. For purposes of this Agreement, “Market Area” shall mean an imaginary circle
with a fifty-mile radius centered on a cultivation, manufacturing, or retail facility operated by the Company or its Affiliate,
or such smaller area as may be finally determined by a court of competent jurisdiction to be a reasonable area from which to exclude
Employee from engaging in a competitive activity;

 

		(b)	Other than on behalf of Company, solicit any person who is then an employee, contractor, or consultant
of Company, or Company’s owners or Affiliates, or who was an employee, contractor, or consultant of Company, or Company’s
owners or Affiliates, within the prior six (6) months, to perform services, as an employee, contractor, consultant or otherwise,
or take any actions which are intended to persuade any such employee, contractor, or consultant of Company, or Company’s
owners or Affiliates, to terminate his or her association with Company or Company’s owners or Affiliates; or

 

		(c)	Other than on behalf of Company, solicit any then-current customer, potential customer, affiliate,
or strategic partner of, or investor in, Company, for business that is the same as or substantially similar to, or otherwise competes
with, the Business or with any other business then engaged in by Company or Company’s owners or Affiliates in the Restricted
Area, or otherwise interfere with the relationships of Company, or Company’s owners or Affiliates, with any then-current
customer, potential customer, affiliate, or strategic partner of, or investor in, Company, or Company’s owners or Affiliates,
or otherwise seek to cause a change in any such relationships.

 

		3.3	Notice. Employee agrees that during the Restricted Period Employee will notify Company,
in writing, of any opportunities that may involve a competitive activity or opportunity as set forth in Subsection 3.2(a) prior
to accepting an offer to perform such services.

 

    	 	5	 

     

    

 

		3.4	Affirmative Disclosure Obligation. Employee agrees that during the Restricted Period Employee
will disclose the existence and terms of this Agreement to any prospective third party or other contracting party for whom Employee
is considering providing services that constitute a competitive activity as set forth in Subsection 3.2.

 

		3.5	Reasonableness. Employee agrees that the covenants contained in this Section 3 are
necessary to protect Company’s legitimate and protectable business interests and are reasonable with respect to their duration
and scope. If, at the time of enforcement of this Section 3, a court holds that any restriction identified herein is unreasonable
under the circumstances then existing, Company and Employee agree that such restriction shall be modified by the court such that
the maximum period or scope legally permissible under such circumstances will be substituted for the period or scope identified
herein.

 

		3.6	Tolling. In the event that Employee violates any provision of this Section 3 to which
there is a specific time period during which Employee is prohibited from taking certain actions or from engaging in certain activities
as set forth herein, a violation of this Section 3 will toll the running of that time period from the date the violation commences
until the date of its cessation. The period of time will also be tolled during any time period required for litigation during which
Company seeks to enforce this Section 3.

 

		4.	Non-disparagement

 

Subject to Section 6, Employee agrees
that during and after Employee’s period of employment with Company Employee will not, publicly or privately, disparage or
defame Company or its Affiliates, or any of Company’s or its Affiliates’ employees, officers, governors, members or
agents.

 

		5.	Injunctive Relief

 

In the event of a breach or threatened
breach of any covenant in Sections 1, 2, 3 or 4, Employee agrees that Company will be irreparably harmed, that money damages alone
cannot adequately compensate Company, and that Company shall be entitled to temporary and injunctive relief as well as all applicable
remedies at law or in equity available to Company against Employee including, but not limited to, reasonable attorneys’ fees
and costs incurred in bringing any action against Employee or otherwise enforcing the terms of this Agreement. Employee further
agrees that in any such action, Company shall be entitled to relief without posting any bond or security.

 

		6.	No Unlawful Restriction

 

Employee understands and agrees that nothing
in this Agreement is intended to or will prevent or interfere with Employee’s ability or right to (a) provide truthful
testimony if under subpoena to do so, (b) file any charge with or participate in any investigation or proceeding before the
U.S. Equal Employment Opportunity Commission or any other federal, state or local governmental agency, (c) engage in any conduct
protected under the National Labor Relations Act, or (d) respond to a subpoena, court order or as otherwise provided by law.

 

		7.	Miscellaneous

 

		7.1	At Will Employment. Employee’s employment with Company is “at will,” which
means it may be terminated at any time, with or without notice and for any or no reason, at the option of either Employee or Company.

 

		7.2	Assignment. All of the terms and provisions of this Agreement shall be binding upon and
inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors
and assigns of the Parties, except that the duties and responsibilities of Employee under this Agreement are of a personal nature
and shall not be assignable or delegable in whole or in part by Employee.

 

    	 	6	 

     

    

 

		7.3	Severability. Subject to Subsection 3.5, if any provision of this Agreement or application
thereof to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the
invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application
in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular circumstances, it
shall nevertheless remain in full force and effect in all other circumstances.

 

		7.4	Entire Agreement. This Agreement and the Employment Agreement embody the entire agreement
and understanding among the Parties relative to subject matter hereof and combined supersede all prior agreements and understandings
relating to such subject matter, including but not limited to any earlier offers to Employee by Company; provided, however, this
Agreement and the Employment Agreement are not intended to supersede or otherwise affect the Equity Incentive Plan (as defined
in the Employment Agreement) or any Award Agreement (as defined in the Equity Incentive Plan), each of which shall remain in effect
in accordance with its terms.

 

		7.5	Applicable Law. All matters relating to the interpretation, construction, application, validity
and enforcement of this Agreement are governed by the laws of the State of Minnesota without giving effect to any choice or conflict
of law provision or rule, whether of the State of Minnesota or any other jurisdiction, that would cause the application of laws
of any jurisdiction other than the State of Minnesota.

 

		7.6	Choice of Jurisdiction. Employee and Company consent to jurisdiction of the courts of the
State of Minnesota and/or the federal district courts, District of Minnesota, for the purpose of resolving all issues of law, equity,
or fact, arising out of or in connection with this Agreement. Any action involving claims for interpretation, breach or enforcement
of this Agreement shall be brought in such courts. Each party consents to personal jurisdiction over such party in the state and/or
federal courts of Minnesota and hereby waives any defense of lack of personal jurisdiction or inconvenient forum.

 

		7.7	Attorneys’ Fees. In the event of any litigation or other proceeding concerning any
controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement, the breach hereof or the
interpretation hereof, the prevailing party will be entitled to recover from the other party reasonable expenses, attorneys' fees,
and costs incurred therein or in the enforcement or collection of any judgment or award rendered therein. The “prevailing
party” means the party determined by the court to have most nearly prevailed, even if such party did not prevail in all matters,
not necessarily the party in whose favor a judgment is rendered. Further, in the event of any breach by Employee under this Agreement,
Employee shall pay all the expenses and attorneys’ fees incurred by Company in connection with such breach, whether or not
any litigation is commenced.

 

		7.8	Counterparts. This Agreement may be executed in any number of counterparts (including facsimile
counterparts or counterparts delivered by electronic transmission (e.g., .PDF attachment)), each of which shall be an original,
but all of which together shall constitute one instrument.

 

* * * * *

 

[signature page follows]

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the Effective Date first above written.

 

	 	Vireo Health, Inc.
	 	 
	 	 	 
	 	By:	/s/ Kyle Kingsley
	 	Kyle Kingsley
	 	Chief Executive Officer
	 	 
	 	 
	 	EMPLOYEE
	 	 
	 	 	 
	 	/s/ Amber Shimpa
	 	Amber Shimpa

 

    	 	8	 

     

    

 

SCHEDULE 1

 

PRIOR INVENTIONS

 

		TO:	Vireo Health, Inc.

 

		FROM:	_________________________

 

		DATE:	_________________________

 

SUBJECT: PRIOR INVENTIONS

 

1.          Except
as listed in Section 2 below, the following is a complete and accurate list of all intellectual property, including, but not
limited to, any ideas, inventions, patents, trademarks, service marks, copyrights, creations, know how, work product, and other
developments or improvements, if any, patented or unpatented, which I, alone or with others, conceived, created, invented, developed,
reduced to practice, or caused to be conceived and or caused to be reduced to practice prior to the commencement of my employment
or other relationship with Vireo Health, Inc.:

 

		_______	I have no Prior Inventions to disclose

 

		_______	Please see below:

 

 

 

 

 

		_______	Additional Sheets Attached

 

2.          Due
to a prior confidentiality agreement, I cannot complete the disclosure under Section 1 above with respect to Prior Inventions
generally listed below, the proprietary rights and duty of confidentiality with respect to which I owe to the following Party (ies):

 

	 	Prior Invention	 	Party(ies)	 	Relationship
	 	 	 	 	 	 
	1.	____________________	 	____________________	 	____________________
	 	 	 	 	 	 
	2.	____________________	 	____________________	 	____________________
	 	 	 	 	 	 
	3.	____________________	 	____________________	 	____________________

 

		_______	Additional Sheets Attached

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