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Exhibit 10.1
[CERTAIN PERSONALLY IDENTIFIABLE INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT]

Jennifer Wuamett 
[********]

August 2021
EMPLOYMENT AGREEMENT

This agreement (“Agreement”), is entered into as of the date of the last signature provided below (“Effective Date”), by and between NXP USA, Inc. (“NXP” or “the Company”) and you, Jennifer Wuamett (“You” or “Employee”).

In consideration of the mutual promises and covenants set forth herein and for good and valuable consideration, the receipt of which you hereby acknowledged, NXP hereby confirms the employment of Employee on the following terms and conditions and, except to the extent specifically superseded by this Agreement, subject to all NXP policies and procedures regarding its employees:

1.Position. Subject to the terms and conditions below, NXP hereby confirms to have employed you, and you hereby confirm to have accepted such employment, as provided below. As of the Commencement Date (defined below), you serve as the Executive Vice President and General Counsel and report to the Chief Executive Officer (“CEO”), currently Kurt Sievers. In this role, you are designated as a Member of the Management Team and shall perform such duties and responsibilities as may from time to time be assigned to you by the CEO of NXP.

2.Employment Scope. This Agreement sets the terms and conditions of the Employment of the Employee that began on September 1, 2018 (the “Commencement Date”) and shall continue through and until such time it is terminated pursuant to Section 4 below, or otherwise agreed in writing. Notwithstanding any term or provision in this Agreement, Employee’s employment with the Company or its affiliates is presently and shall remain solely at-will; provided, however, that the provisions of Section 8 through 9 of this Agreement shall survive the termination of the Employee’s employment with the Company, for any reason.

3.Compensation and Benefits.

a.Base Salary. Your gross base annual salary currently is $515,0001 (“Base Salary”), subject to federal, state, and/or local withholding as applicable,

1 Unless otherwise stated herein, all monetary amounts provided in this Agreement are in U.S. dollars.

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and shall be paid in accordance with the same payroll schedule applicable to all executives of NXP USA Inc. The CEO, after approval of the Compensation Committee (“Compensation Cie.”) of the Board of Directors (“Board”) of NXP Semiconductors N.V., shall review annually whether any increase in the Base Salary shall be made. Although you shall be informed in writing of any salary increases awarded to you through this process, nothing in this Agreement shall be construed to require any such increases or at any specific periods of time.

b.Incentive Compensation. You are entitled to participate in NXP’s Executive Incentive program. The annual incentive targets will be set from year to year by the CEO, in consultation with the Compensation Cie. The gross at target annual incentive amount is currently 80% of your Base Salary. For incomplete calendar years the annual incentive will be prorated. The actual incentive payout will be based upon performance measures established for any given year and approved by the Compensation Cie. The current maximum annual incentive opportunity is equal to 200% of the at-target annual incentive opportunity. Because the maximum position- related annual incentives are fixed by the Compensation Cie., any changes in the incentive program related to your position introduced and approved by the Compensation Cie. shall automatically apply to the Agreement and will be deemed to form part thereof.

c.Employee Benefits. You shall continue to remain eligible to participate in all employee benefit plans, policies, and programs applicable to other NXP executives or officers, including NXP’s Long Term Incentive Plan(s). The terms and conditions of your participation in any NXP benefit plans, policies, or programs shall be governed by the terms of each such plan, policy, or program.

4.Termination of Employment. Your employment with NXP may be terminated in accordance with any of the following provisions:

a.Termination by Employee. You may terminate employment with NXP at any time during the course of this Agreement by giving three (3) months’ notice in writing to the CEO of NXP, which notice may be waived in whole or in part, and without any obligation to pay, by the Company without affecting the voluntary nature of your resignation. During the notice period, or unless otherwise instructed in writing by the CEO of NXP, you must continue to fulfill all duties and responsibilities of your role with NXP. Your salary and benefits shall remain unchanged during the notice period

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provided you remain actively employed, but failure to comply with this notice requirement shall result in a material breach of this Agreement.

b.Termination by the Company with Notice. NXP may terminate your employment at any time during the course of this Agreement by giving you three (3) months’ notice in writing to you. NXP also may elect to provide payment in lieu of the notice requirement without affecting this provision. During the notice period, or unless otherwise instructed in writing by the CEO of NXP, you must continue to fulfill all duties and responsibilities of your role with NXP. Your salary and benefits will remain unchanged during the notice period unless NXP has already made payment in lieu of notice. This Agreement shall not require NXP to maintain you in active employment for any portion of the notice period.

c.Termination by the Company Without Notice. NXP may, at any time and without notice, terminate your employment for such reasons that shall include but not be limited to the following grounds: (a) failure to perform the duties of your position in a satisfactory manner as determined by NXP;
(b) fraud, misappropriation, embezzlement or acts of similar dishonesty; (c) conviction of a felony involving moral turpitude or in any way relating to the business or activities of the Company or its affiliates; (d) indictment for, conviction of, or plea of nolo contendere (or similar plea) to a failure to contest prosecution for, or commission of any act which is a felony, or any act which is a misdemeanor involving moral turpitude, fraud or misrepresentation or otherwise would have been reasonably likely to be detrimental to the business, reputation, character or standing of the Company or its affiliates or your ability to perform your job duties; (e) intentional and willful misconduct that may subject the Company to criminal or civil liability; (f) breach of your duty of loyalty, including the diversion or usurpation of corporate opportunities properly belonging to the Company; (g) willful disregard of Company policies and procedures; (h) breach of any of the material terms of this Agreement; and (i) insubordination or deliberate refusal to follow the instructions of the CEO of NXP.

d.Termination By Death or Disability. Your employment and rights to compensation under this Agreement shall terminate automatically if you are unable to perform the duties of your position due to death or disability lasting continuously more than 90 days, and your heirs, beneficiaries, successors, or assigns shall not be entitled to any of the compensation or benefits to which you may be entitled under this Agreement, except: (a) to

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the extent specifically provided in this Agreement (b) to the extent required by law; or (c) to the extent that such benefit plans or policies under which you are covered provide a benefit to your heirs, beneficiaries, successors, or assigns.

e.Severance Payment. If NXP terminates your employment for any reason other than that provided in Section 4(c) or 4(d) of this Agreement, and provided you fully execute and do not revoke a separation and general release agreement in a form satisfactory to NXP within 60 days following such termination of employment, then NXP will pay you a lump sum cash severance payment of one (1) year’s Base Salary, less any gross payments or benefits paid during the notice period above unless you have performed or will perform actual work during the notice period.

f.Change in Control. If your employment is terminated by NXP at any time and for any reason other than that provided in Section 4(c) of this Agreement, and without you being a Bad Leaver or by you for Good Reason (as defined in the NXP Omnibus Plan), in either case within twelve months following a Change of Control and (ii) you execute and deliver to NXP (and do not revoke) a general release of claims in a form satisfactory to NXP within sixty (60) days following such termination (or such shorter period as may be specified by NXP in accordance with applicable law), then the change of control (CoC) arrangement as approved from time to time by the Compensation Cie. will apply to you. As per the date hereof, the current CoC arrangement is attached as Exhibit A to this Agreement. Defined terms used in this paragraph have the same meaning as defined in the NXP Omnibus Plan.

g.Bonus Payout Upon Termination. In case of termination of your employment for any reason other than that provided in Section 4(a) or 4(c) of this Agreement or, by the Court on application of the Company, the Company will pay a pro rata payment of the bonus for the financial year in which, or shortly after which, your employment is terminated, provided that the conditions for bonus payout are met, which payment will be prorated for the period that you have performed actual work for the Company and whereby the pro rata bonus shall not be paid to you until the financial results for the relevant year have been determined. In all other situations in which the Agreement ends, no (pro rata) payment of the bonus will be considered and/or made. Without prejudice to the previous paragraph, if you have not performed actual work during the full financial year, any bonus paid (if conditions for bonus pay-out are met) shall be pro rata to the

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part of the financial year during which you have performed actual work. For the purposes of this provision "actual work" shall be deemed to include periods of holiday leave and periods of incapacity to work on account of illness or disablement, in so far as such period does not exceed three (3) months.

5.Share Ownership Guidelines. During the term of your MT membership, you will be bound by the Executive Share Ownership Policy (the “EOP”), as approved by the Compensation Cie. As such, you will be required to own at any moment at least three times your base salary in NXP shares. As long as you have not met the three times base salary threshold, you need to retain 100% of the net shares received from LTI grants until the EOP is met. Shares counted towards the EOP are NXP shares directly or beneficially owned, and any unvested tie-based restricted stock units (RSUs). Further details are attached in Exhibit B to this Agreement.

Insider. As Member of the MT and General Counsel, you’re designated as a Section 16 Insider under the NXP Insider Trading Policy. In Section VI of this NXP Insider Trading Policy 2020, you will find specific rules for you as a Section 16 Insider. Below is a summary of the most relevant requirements for you as Section 16 Insider (in addition to the restrictions of the NXP Insider Trading Policy), with which you acknowledge you shall comply:

i.You as a Section 16 Insider are prohibited from trading during closed periods (irrespective of whether you have Inside Information at that time);
ii.You as a Section 16 Insider must notify the Compliance Officer (currently: jean.schreurs@nxp.com) of any envisaged trade (buying or selling) of any NXP securities;
iii.You as a Section 16 Insider must notify the Compliance Officer of any trade in NXP securities immediately after the transaction, so that the required SEC filing can be made within two business days;
iv.You as a Section 16 Insider are prohibited from short-swing transactions in NXP securities; and
v.You as a Section 16 Insider are prohibited from writing call or put options and similar derivatives of NXP securities.

6.Outside Directorship/Additional Occupation. You shall refrain from accepting remuneration or time consuming non-remunerated work activities with or for third parties or from doing business for your own account without the prior written consent of the CEO. You further acknowledge and agree to be bound by the terms of NXP’s Code of Conduct with respect to any outside employment or conflicts of interest and that you may only take up positions in organizations outside NXP,

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provided the following criteria are met:

a.The external function shall not create a conflict of interest with NXP’s interests;
b.You notify the CEO in advance, and the CEO has approved the position/function in writing;
c.The duties involved in the position will not interfere with your responsibilities at work, as determined in NXP’s sole discretion;
d.Approval for the receipt of any compensation for the external position is first obtained in writing by NXP’s CEO; and
e.You report your external function via the Conflict of Interest procedure, sending an email to coi.statement@nxp.com.

7.Fiscal Assistance. NXP Corporate Fiscal in consultation with tax advisors (presently PriceWaterhouseCooper) are available to assist you in the filing of your annual tax returns.

8.Non-Competition and Non-Solicitation. During your employment with the Company and for twelve (12) months following the termination of such employment for any reason (the “Restricted Period”), you shall not, anywhere within the United States of America (the “Restricted Territory”), directly or indirectly (A) engage in for your own benefit or for the benefit of any third party
(B) otherwise own, manage, operate, control, advise, be employed by, or participate in the ownership, management, operation or control of, or provide competitive services to, any person or entity that is engaged in, in either case, a business that is in the same or similar business and competitive with the business conducted by, or actively planned to be conducted by, or otherwise competitive with that of the Company (or any of its affiliates engaged in the same business) (any such business, a “Competing Business”). Notwithstanding the foregoing, your passive ownership solely as an investor of three percent (3%) or less of the outstanding securities of any class of any publicly-traded securities of any company shall not, by itself, be considered to be competition with the Company. During the Restricted Period, you also shall not, directly or indirectly: (i) persuade or attempt to persuade any customer or client, or any potential customer or client to which you have (or an employee who reports to you has or had) made a presentation or with respect to which you had access to confidential or proprietary information, (A) not to hire, engage or purchase products or services from the Company or its affiliates or (B) to hire, engage or purchase products or services from another entity or person in connection with a Competing Business within the Restricted Territory; or (ii) solicit for employment or hire (or solicit for engagement as an independent contractor or engage as an independent contractor) any employee (or independent contractor) of

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the Company or its affiliates (or any person who was employed (or engaged) by the Company or its affiliates within the 12-month period prior to such solicitation, hiring or engagement, as applicable (or, if following the termination of your employment, the 12-month period prior to such termination), or otherwise encourage any employee of, or independent contractor with, the Company or its affiliates to terminate his or her employment with or engagement by the Company or its affiliates or accept employment or a consulting relationship with any entity or person other than the Company or its affiliates.

9.Confidential Information. During your employment, you will have access to or become familiar with information of confidential or proprietary nature that pertains to the business operations of the Company and its affiliates. Such information includes, but is not limited to, (i) information relating to the Company’s or its affiliates’ business, operations, customers, clients, suppliers and vendors, including, but not limited to, information received from third parties under confidential conditions, business plans, financial information, cost, pricing and profit figures, customer files, products and services offered or in development, strategic direction, marketing strategies and plans, software, designs, procedures, formulas, processes, financial data and results of operations; and (ii) other know- how, ideas, concepts, trade secrets, and methodologies and technical, business or financial information relating to the business of the Company or its affiliates (collectively, “Confidential Information”). You acknowledge that the Confidential Information is, among other things, not readily available to the public and extremely valuable to the Company’s and/or its affiliates’ operations. Without limiting any other confidentiality obligations you may owe to the Company or its affiliates, you agree not to disclose any Confidential Information, directly, or use it in any way, either during your employment with the Company or any time thereafter, except (a) required in the course of this employment for the Company,
(b) for information that is or becomes public other than through his breach of any confidentiality obligations (unless such information became public as a result of a violation of any other person or other person or entity’s confidentiality obligations) or (c) as required by legal process (provided that, in the event of legal process, you must provide prompt notice to the Company prior to responding to such legal process and cooperate with the Company or its affiliates if either elects to contest such legal process). You further agree not to copy or record or allow to be copied or recorded any such Confidential Information, except as required in the course of your employment.

You further agree that you have continuing obligations pursuant to NXP’s Assignment & Confidentiality Agreement and/or Employee Ethics and Intellectual Property Agreement signed by you (and incorporated herein by reference). Nothing

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herein shall prevent you from using and availing yourself of your general technical, engineering and inventive skill, knowledge and experience, including that pertaining to or derived from the non-secret and non-confidential aspects of the activities of NXP.

10.Successors and Assigns. This Agreement shall bind and insure to the benefit of and be enforceable by the Company and its successors and assigns and you and your heirs, executors, administrators, and successors. Provided that your services to the Company are of a personal nature and that you cannot sell, convey, assign, delegate, transfer or otherwise dispose of, directly or indirectly, any of your rights, or obligations under this Agreement (and any such purported action by you shall be null and void); provided further that the Company may assign this Agreement to, and all rights hereunder shall inure to the benefit of, any subsidiary or affiliate if the Company or any person, firm or corporation resulting from the reorganization of the Company or succeeding to the business or assets of the Company or its subsidiaries by purchase, merger, consolidation or otherwise.

11.Notices. All notices, requests, demands, claims, consents and other communication which are required, permitted or otherwise delivered pursuant or related to this Agreement shall in every case be in writing and shall be deemed properly served if: (a) delivered personally, (b) sent by registered or certified mail, in all such cases with first class postage prepaid, return receipt requested, or (c) delivered by a recognized overnight courier service, to the parties at the addresses as set forth below:

If to the Company:    SVP Total Rewards NXP Semiconductors
6501 William Cannon Dr West, Austin, Texas 78735

If to the Employee:    Jennifer Wuamett [********]

Alternatively, notices may be provided to such other address as shall be furnished in writing by either party to the other party; provided that such notice or change in address shall be effective only when actually received by the other party. Date of service of any such notices or other communication shall be: (a) the date such notice is personally delivered, (b) three days after the date of mailing if sent by certified

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or registered mail, or (c) one business day after date of delivery to the overnight courier of sent by overnight courier.

12.NXP Policies. You will be subject to all NXP policies currently in effect for the Company’s employees and as may be established and/or amended from time to time, including but not limited to, all terms and conditions in any Code of Conduct applicable to the Company’s employees. Your employment (and continued employment) with the Company is contingent upon you obtaining and maintaining authorization to be employed in the United States commensurate with the business needs of the Company.

13.Severability. If any provision of this Agreement is determined by a court of competent jurisdiction not to be enforceable in the manner set forth herein, the Company and the Employee agree that such provision shall be modified to make it enforceable to maximum extent possible under applicable law. If any provision of this Agreement is declared invalid, illegal or unenforceable for any reason and cannot be modified to be enforceable, such provision shall immediately become null and void leaving the remainder of this Agreement in full force and effect.

14.Survival. This Agreement shall continue for so long as any obligations remain under this Agreement. Without limiting the foregoing, the provisions of Sections 8-9 of this Agreement shall survive and shall continue to be binding upon you notwithstanding the termination of your employment with the Company for any reason. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which will be deemed one and the same instrument.

15.Governing Law and Forum. This Agreement is governed by and construed in accordance with the laws of the State of Texas without giving effect to the conflict of law principles thereof. The parties agree to the exclusive personal jurisdiction and venue of the State and Federal courts located in Travis County, Texas for any legal action relating this agreement.

IN WITNESS WHEREOF, NXP and Jennifer Wuamett have executed and delivered this Agreement as of the date written below.

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/s/ Jennifer Wuamett

Jennifer Wuamett
 
Date: August 25, 2021

NXP USA, Inc.

By: /s/ Jan Vernon
Name: Jan Vernon

Title: SVP Total Rewards Date: _08/25/2021_

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Exhibit A

CHANGE IN CONTROL BENEFITS FOR MANAGEMENT TEAM

																		
	Current NXP Job & Org Level
	

Governing Document(s)
	

Severance
	

Benefits Continuation
	

Accelerated Vesting*
	

CoC Protection of Terms

	Executive Officers (Section 16 Officers)
	NXP CoC
Executive Officer Agreement
	Minimum 24 months
Base + 24 months Target Bonus
	12 months (US only); N/A outside US
	Per equity agreements
	12 months post-close per the NXP CoC Executive Officer Agreement

* NXP agreements provide for accelerated vesting if within 12 months of a change-in-control employment is involuntarily terminated or if the employee leaves for “Good Reason”.

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Exhibit B

2021 SHARE OWNERSHIP POLICY

						
	SOG LEVEL/ELEMENT	NXP SOG POLICY
	President & CEO	* 6.0x base salary
	MT: Section 16 Officers	* 3.0x base salary
	MT: Non Section 16 Officers	* 2.0x base salary
	Board of Directors	* 5.0x cash retainer
	Compliance Window	* 5 years
	

Policy if SOG Not Met
	•Retain 100% of net shares received from LTI grants until SOG is met, with
•Committee to retain discretion to assess special situations on a case-by-case basis

	Shares Counted Toward SOG
	•Shares directly or beneficially owned
•Unvested time-based restrictive stock (RSUs)

	

Measurement
	•Report annually at first CC meeting January/February using mid December prior year standings - after Trading Window Closes
•Use 31 December prior year closing share price

12C21 Investments Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

    

     

     

    C21 INVESTMENTS INC.

     

    	STOCK OPTION PLAN

     

     

    Dated as of July 9, 2021

     

     

     

     

     

    

    TABLE OF CONTENTS

    	ARTICLE 1 DEFINED TERMS AND INTERPRETATION	1
	 	 
	1.1	Defined Terms	1
	 	 	 
	1.2	Interpretation	4
	 	 	 
	ARTICLE 2 ESTABLISHMENT OF PLAN	4
	 	 
	2.1	Purpose	4
	 	 	 
	2.2	Shares Reserved	4
	 	 	 
	2.3	Non-Exclusivity	5
	 	 	 
	2.4	Effective Date	5
	 	 	 
	ARTICLE 3 ADMINISTRATION OF PLAN	5
	 	 
	3.1	Administration	5
	 	 	 
	3.2	Amendment, Suspension and Termination	6
	 	 	 
	3.3	Compliance with Legislation	6
	 	 	 
	ARTICLE 4 OPTION GRANTS	7
	 	 
	4.1	Eligibility and Multiple Grants	7
	 	 	 
	4.2	Option Agreement	7
	 	 	 
	4.3	Limitation on Grants and Exercises	7
	 	 	 
	ARTICLE 5 OPTION TERMS	8
	 	 
	5.1	Exercise Price	8
	 	 	 
	5.2	Expiry Date	9
	 	 	 
	5.3	Vesting	9
	 	 	 
	5.4	Takeover Bid or Tender Offer	9
	 	 	 
	5.5	Change of Control	10
	 	 	 
	5.6	Non-Assignability	10
	 	 	 
	5.7	Ceasing to be Eligible Person	10

    

    

    	ARTICLE 6 EXERCISE PROCEDURE	11
	 	 
	6.1	Exercise Procedure	11
	 	 	 
	ARTICLE 7 AMENDMENT OF OPTIONS	12
	 	 
	7.1	Consent to Amend	12
	 	 	 
	7.2	Amendment Subject to Approval	13
	 	 	 
	ARTICLE 8 MISCELLANEOUS	13
	 	 
	8.1	No Rights as Shareholder	13
	 	 	 
	8.2	No Right to Employment	13
	 	 	 
	8.3	Governing Law	13
	 	 	 
	8.4	Approval	13
	 	 	 
	SCHEDULE "A" FORM OF STOCK OPTION PLAN OPTION AGREEMENT	14
	 	 
	SCHEDULE "B" NOTICE OF EXERCISE	16

    

    

    ARTICLE 1

    DEFINED TERMS AND INTERPRETATION

    1.1 Defined Terms

    For the purposes of this Plan, the following terms shall have the following meanings:

    (a) "Affiliate" has the meaning set forth in section 1(2) of the Securities Act (British Columbia), as amended from time to time, and includes those issuers that are similarly related, whether or not any of the issuers are corporations, companies, partnerships, limited partnerships, trusts, income trusts or investment trusts or any other organized entity issuing securities;

    (b) "Board" means the Board of Directors of the Corporation or, as applicable, a committee consisting of not less than three (3) Directors of the Corporation duly appointed to administer this Plan;

    (c) "Change of Control" means the occurrence of any one or more of the following events:

    (i) a consolidation, merger, amalgamation, arrangement or other reorganization or acquisition involving the Corporation or any of its affiliates and another corporation or other entity, as a result of which the holders of Common Shares immediately prior to the completion of the transaction hold less than 50% of the outstanding shares of the successor corporation immediately after completion of the transaction;

    (ii) the sale, lease, exchange or other disposition, in a single transaction or a series of related transactions, of all or substantially all of the assets, rights or properties of the Corporation and its subsidiaries on a consolidated basis to any other person or entity, other than transactions among the Corporation and its subsidiaries;

    (iii) a resolution is adopted to wind-up, dissolve or liquidate the Corporation;

    (iv) any person, entity or group of persons or entities acting jointly or in concert (the

    "Acquiror") acquires, or acquires control (including, without limitation, the power to vote or direct the voting) of, voting securities of the Corporation which, when added to the voting securities owned of record or beneficially by the Acquiror or which the Acquiror has the right to vote or in respect of which the Acquiror has the right to direct the voting, would entitle the Acquiror and/or associates and/or affiliates of the Acquiror to cast or direct the casting of 50% or more of the votes attached to all of the Corporation's outstanding voting securities which may be cast to elect directors of the Corporation or the successor corporation (regardless of whether a meeting has been called to elect directors);

    (v) as a result of or in connection with: (A) a contested election of directors of the Corporation; or (B) a consolidation, merger, amalgamation, arrangement or other reorganization or acquisition involving the Corporation or any of its affiliates and another corporation or other entity (a "Transaction"), fewer than 50% of the Directors are persons who were directors of the Corporation immediately prior to such Transaction; or

    

    (vi) the Board adopts a resolution to the effect that a Change of Control as defined herein has occurred or is imminent.

    For the purposes of the foregoing definition of Change of Control, "voting securities" means Common Shares and any other shares entitled to vote for the election of directors of the Corporation and shall include any security, whether or not issued by the Corporation, which are not shares entitled to vote for the election of directors but are convertible into or exchangeable for shares which are entitled to vote for the election of directors, including any options or rights to purchase such shares or securities.

    (d) "Common Shares" means the common shares of the Corporation;

    (e) "Company" unless specifically indicated otherwise, means a corporation, incorporated association or organization, body corporate, partnership, trust, association or other entity other than an individual;

    (f) "Consultant" means, in relation to the Corporation, an individual that:

    (i) is engaged to provide on an ongoing bona fide basis, consulting, technical, management or other services to the Corporation or to an Affiliate of the Corporation, other than services provided in relation to a distribution;

    (ii) provides the services under a written contract between the Corporation or the Affiliate and the individual or a Company, as the case may be;

    (iii) in the reasonable opinion of the Corporation, spends or will spend a significant amount of time and attention on the affairs and business of the Corporation or an Affiliate of the Corporation; and

    (iv) has a relationship with the Corporation or an Affiliate of the Corporation that enables the individual to be knowledgeable about the business and affairs of the Corporation,

    provided that, the Consultant is a natural person that provides bona fide consulting services to the Corporation or to an Affiliate and such services are not in connection with the offer or sale of securities in a capital-raising transaction, and do no directly or indirectly promote or maintain a market for the Corporation's securities;

    (g) "Corporation" means C21 Investments Inc. and its successor entities;

    (h) "Director" means a director of the Corporation or of an Affiliate;

    (i) "Disinterested Shareholder Approval" means the passing of an ordinary resolution by the holders of Common Shares excluding the Common Shares held by, to the Corporation's knowledge at the time the information is provided, the Corporation, a Participant or an Eligible Person;

    
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    (j) "Eligible Person" means a Director, Officer, Employee or Consultant, and includes an issuer, all the voting securities of which are owned by Eligible Persons;

    (k) "Employee" means an individual who:

    (i) is considered an employee of the Corporation or its subsidiary under the Income Tax Act (Canada) (and for whom income tax, employment insurance and CPP deductions must be made at source);

    (ii) works full-time for the Corporation or its subsidiary providing services normally provided by an employee and who is subject to the same control and direction by the Corporation over the details and methods of work as an employee of the Corporation, but for whom income tax deductions are not made at source; or

    (iii) works for the Corporation or its subsidiary on a continuing and regular basis for a minimum amount of time per week (the number of hours should be disclosed in the submission) providing services normally provided by an employee and who is subject to the same control and direction by the Corporation over the details and methods of work as an employee of the Corporation, but for whom income tax deductions are not made at source;

    (l) "Exchange" means the Canadian Securities Exchange or any other principal stock exchange on which the Common Shares may be listed from time to time;

    (m) "Expiry Date" means the last day of the term for an Option, as set by the Board at the time of grant in accordance with Section 5.2 and, if applicable, as amended from time to time;

    (n) Insider" means in respect of the Corporation: (a) a Director or senior officer of the Corporation, (b) a Director or senior officer of a Company that is an Insider or subsidiary of the Corporation; (c) a Person that beneficially owns or controls, directly or indirectly, Common Shares carrying more than 10% of the voting rights attached to all outstanding Common Shares of the Corporation, or (d) the Corporation itself if it holds any of its own securities;

    (o) "Management Company Employee" means an individual who is employed by a person providing management services to the Corporation or an Affiliate which are required for the ongoing successful operation of the business enterprise of the Corporation or the Affiliate;

    (p) "Officer" means an officer of the Corporation or of an Affiliate, and includes a Management Company Employee;

    (q) "Option" means an option to purchase Common Shares pursuant to this Plan;

    
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    (r) "Option Agreement" means an agreement, in the form attached hereto as Schedule "A", whereby the Corporation grants to an Eligible Persons an Option.

    (s) "Other Share Compensation Arrangement" means, other than this Plan and any

    Options, any stock option plan, stock options, employee stock purchase plan or other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares, including but not limited to a purchase of Common Shares from treasury which is financially assisted by the Corporation by way of loan, guarantee or otherwise;

    (t) "Participant" means an Eligible Person who has been granted an Option; and

    (u) "Plan" means this Stock Option Plan.

    1.2 Interpretation

    (a) References to the outstanding Common Shares at any point in time shall be computed on a non-diluted basis.

    ARTICLE 2

    ESTABLISHMENT OF PLAN

    2.1 Purpose

    The purpose of this Plan is to advance the interests of the Corporation, through the grant of Options, by:

    (a) providing an incentive mechanism to foster the interest of Eligible Persons in the success of the Corporation and its Affiliates;

    (b) encouraging Eligible Persons to remain with the Corporation or its Affiliates; and

    (c) attracting new Directors, Officers, Employees and Consultants.

    2.2 Shares Reserved

    (a) The aggregate number of Common Shares that may be reserved for issuance pursuant to Options shall not exceed 10% of the outstanding Common Shares at the time of the granting of an Option, LESS the aggregate number of Common Shares then reserved for issuance pursuant to any Other Share Compensation Arrangement. For greater certainty, if an Option is surrendered, terminated or expires without being exercised, the Common Shares reserved for issuance pursuant to such Option shall be available for new Options granted under this Plan.

    (b) If there is a change in the outstanding Common Shares by reason of any share consolidation or split, reclassification or other capital reorganization, or a stock dividend, arrangement, amalgamation, merger or combination, or any other change to, event affecting, exchange of or corporate change or transaction affecting the Common Shares, the Board shall make, as it shall deem advisable and subject to the requisite approval of the relevant regulatory authorities, appropriate substitution and/or adjustment in:

    
        4

    

    

    (i) the number and kind of shares or other securities or property reserved or to be allotted for issuance pursuant to this Plan;

    (ii) the number and kind of shares or other securities or property reserved or to be allotted for issuance pursuant to any outstanding unexercised Options, and in the exercise price for such shares or other securities or property; and

    (iii) the vesting of any Options (subject to the approval of the Exchange if such vesting is mandatory under the policies of the Exchange), including the accelerated vesting thereof on conditions the Board deems advisable,

    and if the Corporation undertakes an arrangement or is amalgamated, merged or combined with another corporation, the Board shall make such provision for the protection of the rights of Participants as it shall deem advisable.

    (c) No fractional Common Shares shall be reserved for issuance under this Plan and the Board may determine the manner in which an Option, insofar as it relates to the acquisition of a fractional Common Share, shall be treated.

    (d) The Corporation shall, at all times while this Plan is in effect, reserve and keep available such number of Common Shares as will be sufficient to satisfy the requirements of this Plan.

    2.3 Non-Exclusivity

    Nothing contained herein shall prevent the Board from adopting such other incentive or compensation arrangements as it shall deem advisable.

    2.4 Effective Date

    This Plan shall be subject to the approval of any regulatory authority whose approval is required, if any. Any Options granted under this Plan prior to such approvals being given, if required, shall be conditional upon such approvals being given, and no such Options may be exercised unless and until such approvals are given. If no such approvals are required then this Plan is effective on the date it is approved by the Board.

    ARTICLE 3

    ADMINISTRATION OF PLAN

    3.1 Administration

    (a) This Plan shall be administered by the Board. Subject to the provisions of this Plan, the Board shall have the authority:

    (i) to determine the Eligible Persons to whom Options are granted, to grant such Options, and to determine any terms and conditions, limitations and restrictions in respect of any particular Option grant, including but not limited to the nature and duration of the restrictions, if any, to be imposed upon the acquisition, sale or other disposition of Common Shares acquired upon exercise of the Option, and the nature of the events and the duration of the period, if any, in which any Participant's rights in respect of an Option or Common Shares acquired upon exercise of an Option may be forfeited; and

    
        5

    

    

    (ii) to interpret the terms of this Plan, to make all such determinations and take all such other actions in connection with the implementation, operation and administration of this Plan, and to adopt, amend and rescind such administrative guidelines and other rules and regulations relating to this Plan, as it shall from time to time deem advisable, including without limitation for the purpose of ensuring compliance with Section 3.3 hereof.

    (b) The Board's interpretations, determinations, guidelines, rules and regulations shall be conclusive and binding upon the Corporation, Eligible Persons, Participants and all other persons.

    3.2 Amendment, Suspension and Termination

    The Board may amend, subject to the approval of any regulatory authority whose approval is required, suspend or terminate this Plan or any portion thereof. No such amendment, suspension or termination shall alter or impair any outstanding unexercised Options or any rights without the consent of such Participant. If this Plan is suspended or terminated, the provisions of this Plan and any administrative guidelines, rules and regulations relating to this Plan shall continue in effect for the duration of such time as any Option remains outstanding.

    3.3 Compliance with Legislation

    (a) This Plan, the grant and exercise of Options hereunder and the Corporation's obligation to sell, issue and deliver any Common Shares upon exercise of Options shall be subject to all applicable federal, provincial and foreign laws, policies, rules and regulations, to the policies, rules and regulations of any stock exchanges or other markets on which the Common Shares are listed or quoted for trading and to such approvals by any governmental or regulatory agency as may, in the opinion of counsel to the Corporation, be required. The Corporation shall not be obligated by the existence of this Plan or any provision of this Plan or the grant or exercise of Options hereunder to sell, issue or deliver Common Shares upon exercise of Options in violation of such laws, policies, rules and regulations or any condition or requirement of such approvals.

    (b) No Option shall be granted and no Common Shares sold, issued or delivered hereunder where such grant, sale, issue or delivery would require registration or other qualification of this Plan or of the Common Shares under the securities laws of any foreign jurisdiction, and any purported grant of any Option or any sale, issue and delivery of Common Shares hereunder in violation of this provision shall be void. In addition, the Corporation shall have no obligation to sell, issue or deliver any Common Shares hereunder unless such Common Shares shall have been duly listed, upon official notice of issuance, with all stock exchanges on which the Common Shares are listed for trading.

    
        6

    

    

    (c) Common Shares sold, issued and delivered to Participants pursuant to the exercise of Options shall be subject to restrictions on resale and transfer under applicable securities laws and the requirements of any stock exchanges or other markets on which the Common Shares are listed or quoted for trading, and any certificates representing such Common Shares shall bear, as required, a restrictive legend in respect thereof.

    ARTICLE 4

    OPTION GRANTS

    4.1 Eligibility and Multiple Grants

    Options shall only be granted to Eligible Persons. An Eligible Person may receive Options on more than one occasion and may receive separate Options, with differing terms, on any one or more occasions.

    4.2 Option Agreement

    Every Option shall be evidenced by an Option Agreement executed by the Corporation and the Participant, which shall, if the Participant is an Employee, Consultant or Management Company Employee, contain a representation and warranty by the Corporation and such Participant that such Participant is a bona fide Employee, Consultant or Management Company Employee, as the case may be, of the Corporation or an Affiliate. In the event of any discrepancy between this Plan and an Option Agreement, the provisions of this Plan shall govern.

    4.3 Limitation on Grants and Exercises

    (a) Compliance with Securities Laws. All grants of Options under this Plan will comply with Section 2.25 of National Instrument 45-106 - Prospectus Exemptions ("NI 45-106") as if the Corporation were an "unlisted reporting issuer" and applicable United States securities laws.

    (b) To any one person. The number of Common Shares reserved for issuance to any one person in any 12 month period under this Plan and any Other Share Compensation Arrangement shall not exceed 5% of the outstanding Common Shares at the time of the grant, unless the Corporation has obtained Disinterested Shareholder Approval to exceed such limit as required by Section 2.25(3) of NI 45-106.

    (c) To Consultants. The number of Common Shares reserved for issuance to any one Consultant in any 12 month period under this Plan and any Other Share Compensation Arrangement shall not exceed 2% of the outstanding Common Shares at the time of the grant.

    (d) To Insiders. Unless the Corporation has received Disinterested Shareholder Approval to do so:

    (i) the aggregate number of Common Shares reserved for issuance to Insiders under this Plan and any Other Share Compensation Arrangement shall not exceed 10% of the outstanding Common Shares at the time of the grant; and

    
        7

    

    

    (ii) the aggregate number of Common Shares reserved for issuance to Insiders in any 12 month period under this Plan and any Other Share Compensation Arrangement shall not exceed 10% of the outstanding Common Shares at the time of the grant.

    (e) To United States Residents. No Options shall be granted to residents in the United States unless such Options and the Common Shares issuable upon exercise of such Options are registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or are issued in compliance with an available exemption from the registration requirements of the U.S. Securities Act.

    (f) Exercises. Unless the Corporation has received Disinterested Shareholder Approval to do so, the number of Common Shares issued to any Eligible Person within a 12 month period pursuant to the exercise of Options granted under this Plan and any Other Share Compensation Arrangement shall not exceed 5% of the outstanding Common Shares at the time of the exercise.

    ARTICLE 5

    OPTION TERMS

    5.1 Exercise Price

    (a) The Corporation must not grant Options with an exercise price lower than the greater of the closing market prices of the underlying securities on: (a) the trading day prior to the date of grant of the Options; and (b) the date of grant of the Options.

    (b) If an Option is granted by the Corporation after its initial listing or after it has been recalled for trading following a suspension or halt, the Corporation must wait until a satisfactory market has been established before setting the exercise price for and granting the option, being at least ten trading days since the date of listing or the day on which trading in the Company's securities resumes, as the case may be.

    (c) If Options are granted within ninety days of a distribution by the Corporation by prospectus, then the exercise price per Common Share for such Option shall not be less than the greater of the minimum exercise price calculated pursuant to subsection 5.1(a) herein and the price per Common Share paid by the public investors for Common Shares acquired pursuant to such distribution. Such ninety-day period shall begin:

    (i) on the date the final receipt is issued for the final prospectus in respect of such distribution;

    (ii) in the case of an IPO, on the date of listing; and

    (iii) in the case of a prospectus that qualifies special warrants, on the closing date of the private placement in respect of such special warrants.

    
        8

    

    

    5.2 Expiry Date

    (a) Every Option shall have a term not exceeding and shall therefore expire no later than 10 years after the date of grant, subject to extension where the Expiry Date falls within a blackout period as detailed in Section 5.2(b) below.

    (b) The Expiry Date of an Option shall automatically extend if such Expiry Date falls within a period (a "blackout period") during which an the Corporation prohibits Participants from exercising their Options to the extent that:

    (i) the blackout period is formally imposed by the Corporation pursuant to its internal trading policies as a result of the bona fide existence of undisclosed material information. For greater certainty, in the absence of the Corporation formally imposing a blackout period, the Expiry Date of any Options will not be automatically extended in any circumstances;

    (ii) the blackout period must expire upon the general disclosure of the undisclosed material information. The Expiry Date of the affected Options can be extended to no later than ten (10) business days after the expiry of the blackout period; and

    (iii) the automatic extension of a Participant's Options will not be permitted where the Participant or the Corporation is subject to a cease trade order (or similar order under securities laws) in respect of the Corporation's securities.

    5.3 Vesting

    (a) Subject to compliance with the policies of the Exchange, if applicable, the Board shall determine the manner in which an Option shall vest and become exercisable.

    5.4 Takeover Bid or Tender Offer

    Notwithstanding the foregoing provisions of this section 5:

    (a) if there is a takeover bid or tender offer (the "Offer") made for all or any of the issued and outstanding Common Shares, then the Board may, by resolution, permit all Options outstanding to become immediately exercisable in order to permit the Common Shares issuable under such Options to be tendered to the Offer. Any such exercise of the Option shall be deemed to occur immediately before the later of the completion of the Offer and the payment of Common Shares taken up by the offeror under the Offer. For greater certainty, however, if, for any reason:

    (i) the Offer is not completed within the time specified therein, or

    (ii) all of the Common Shares tendered by the Participant pursuant to the Offer are not taken up or paid for by the offeror in respect thereof,

    then the Common Shares received upon such exercise or, in the case of section 5.4(a)(ii), the Common Shares that are not taken up and paid for, may be returned by the Participant to the Corporation and reinstated as authorized but unissued Common Shares and, with respect to such returned Common Shares, the Option will be reinstated as if it had not been exercised and the terms upon which such Common Shares were to become vested pursuant to this section will be reinstated. If any Common Shares are returned to the Corporation under this section 5.4, the Corporation will immediately refund the exercise price to the Participant for such Common Shares; and

    
        9

    

    

    (b) if an Offer is made by an offeror at any time when an Option granted under the Plan remains unexercised, in whole or in part, the Board may, by resolution and upon notifying each Participant of full particulars of the Offer, declare all Common Shares issuable upon the exercise of Options granted under the Plan to be vested and declare that the expiry date for the exercise of all unexercised Options granted under the Plan be accelerated so that all Options will either be exercised or will expire prior to the date upon which Common Shares must be tendered pursuant to the Offer,

    5.5 Change of Control

    Unless otherwise provided for at the time a grant is made pursuant to the Plan, where a Change of Control occurs, the Board may, at its discretion, cause any and all outstanding Options issued to Participants to automatically vest, whereupon such Options may be exercised in whole or in part by any such Participant.

    5.6 Non-Assignability

    Options may not be assigned or transferred.

    5.7 Ceasing to be Eligible Person

    (a) If a Participant who is an Officer, Employee or Consultant is terminated for cause, each Option held by such Participant shall terminate and shall therefore cease to be exercisable upon such termination for cause.

    (b) If a Participant dies prior to otherwise ceasing to be an Eligible Person, each Option held by such Participant shall terminate and shall therefore cease to be exercisable no later than the earlier of the Expiry Date and the date which is six months after the date of the Participant's death, always provided that the Board may, in its discretion, extend the date of such termination and the resulting period in which such Option remains exercisable to a date not exceeding the earlier of the Expiry Date and the date which is twelve months after the date of the Participant's death.

    (c) If a Participant ceases to be an Eligible Person other than in the circumstances set out in subsection (a) or (b) herein, each Option held by such Participant shall terminate and shall therefore cease to be exercisable no later than the earlier of the Expiry Date and the date which is 30 days after such event, always provided that the Board may, in its discretion, extend the date of such termination and the resulting period in which such Option remains exercisable to a date not exceeding the earlier of the Expiry Date and the date which is twelve months after such event, and further provided that the Board may, in

    
        10

    

    

    (d) its discretion, on a case-by-case basis and only with the approval of the Exchange, further extend the date of such termination and the resulting period in which such Option remains exercisable to a date exceeding the date which is after twelve months of such event.

    (e) For greater certainty, if a Participant dies, each Option held by such Participant shall be exercisable by the legal representative of such Participant until such Option terminates and therefore ceases to be exercisable pursuant to the terms of Section 5.5(b).

    (f) If any portion of an Option is not vested at the time a Participant ceases, for any reason whatsoever, to be an Eligible Person, such unvested portion of the Option may not be thereafter exercised by the Participant or its legal representative, as the case may be, always provided that the Board may, in its discretion further and subject to the approval of the Exchange where the vesting of the said Participant's options was a requirement of the Exchange's policies, thereafter permit the Participant or its legal representative, as the case may be, to exercise all or any part of such unvested portion of the Option that would have vested prior to the time such Option otherwise terminates and therefore ceases to be exercisable pursuant to the terms of this Section. For greater certainty, and without limitation, this provision will apply regardless of whether the Participant ceased to be an Eligible Person voluntarily or involuntarily, was dismissed with or without cause, and regardless of whether the Participant received compensation in respect of dismissal or was entitled to a notice of termination for a period which would otherwise have permitted a greater portion of an Option to vest.

    ARTICLE 6

    EXERCISE PROCEDURE

    6.1 Exercise Procedure

    (a) An Option may be exercised from time to time, and shall be deemed to be validly exercised by the Participant only upon the Participant's delivery to the Corporation at its registered office:

    (i) a written notice of exercise, in the form hereto attached as Schedule "B", addressed to the Corporate Secretary of the Corporation, specifying the number of Common Shares with respect to which the Option is being exercised;

    (ii) the originally signed Option Agreement with respect to the Option being exercised;

    (iii) a certified cheque or bank draft made payable to the Corporation for the aggregate exercise price for the number of Common Shares with respect to which the Option is being exercised; and

    (iv) documents containing such representations, warranties, agreements and undertakings, including such as to the Participant's future dealings in such Common Shares, as counsel to the Corporation reasonably determines to be necessary or advisable in order to comply with or safeguard against the violation of the laws of any jurisdiction;

    
        11

    

    

    and on the business day following, the Participant shall be deemed to be a holder of record of the Common Shares with respect to which the Option is being exercised, and thereafter the Corporation shall, within a reasonable amount of time, cause certificates for such Common Shares to be issued and delivered to the Participant.

    (b) In lieu of exercising an Option in accordance with section 6.1(a), the Board may permit a Participant to elect to receive, without payment by the Participant of any additional consideration, Common Shares equal to the value of the Option (or the portion thereof being exercised) by surrender of the Option at the head office of the Corporation, together with written notice, addressed to the secretary of the Corporation, reflecting such "cashless" exercise, in which event the Corporation shall issue to the Participant a number of whole Common Shares computed using the following formula:

    
        	
                     X = Y (A - B)
A

                
	
                     

                	
                     

                	
                     

                
	
                    Where:

                	
                    X =

                	
                    The number of whole Common Shares to be issued to the Participant pursuant to the cashless exercise;

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    Y =

                	
                    The number of Common Shares in respect of which the cashless exercise election is made;

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    A =

                	
                    The market price of one Common Share on the date of cashless exercise of the Option; and

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    B =

                	
                    The exercise price of the Option.

                

    

    For the purposes of this section 6.1(b), the market price of one Common Share as of a particular cashless exercise date is the volume weighted average trading price of one Common Share on the Exchange, for the five trading days immediately preceding such date.

    ARTICLE 7

    AMENDMENT OF OPTIONS

    7.1 Consent to Amend

    The Board may amend any Option with the consent of the affected Participant and the Exchange, including any shareholder approval required by the Exchange. For greater certainty, if the rules and policies of the Exchange so require, Disinterested Shareholder Approval shall be required for any reduction in the exercise price of an Option if the Participant is an Insider at the time of the proposed amendment.

    
        12

    

    

    7.2 Amendment Subject to Approval

    If the amendment of an Option requires regulatory or shareholder approval, such amendment may be made prior to such approvals being given, but no such amended Options may be exercised unless and until such approvals are given.

    ARTICLE 8

    MISCELLANEOUS

    8.1 No Rights as Shareholder

    Nothing in this Plan or any Option shall confer upon a Participant any rights as a shareholder of the Corporation with respect to any of the Common Shares underlying an Option unless and until such Participant shall have become the holder of such Common Shares upon exercise of such Option in accordance with the terms of the Plan.

    8.2 No Right to Employment

    Nothing in this Plan or any Option shall confer upon a Participant any right to continue in the employ of the Corporation or any Affiliate or affect in any way the right of the Corporation or any Affiliate to terminate the Participant's employment, with or without cause, at any time; nor shall anything in the Plan or any Option be deemed or construed to constitute an agreement, or an expression of intent, on the part of the Corporation or any Affiliate to extend the employment of any Participant beyond the time which the Participant would normally be retired pursuant to the provisions of any present or future retirement plan of the Corporation or any Affiliate, or beyond the time at which they would otherwise be retired pursuant to the provisions of any contract of employment with the Corporation or any Affiliate.

    8.3 Governing Law

    This Plan, all Option Agreements, the grant and exercise of Options hereunder, and the sale, issue and delivery of Common Shares hereunder upon exercise of Options shall be, as applicable, governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. The Courts of the Province of British Columbia shall have the exclusive jurisdiction to hear and decide any disputes or other matters arising herefrom.

    8.4 Approval

    Approved by the Board of the Corporation on July 9, 2021.

    
        13

    

    

    SCHEDULE "A"

    FORM OF STOCK OPTION PLAN OPTION AGREEMENT

    This Option Agreement is entered into between C21 Investments Inc. (the "Corporation") and the Optionee named below pursuant to the Stock Option Plan of the Corporation (the "Plan"), a copy of which is attached hereto, and confirms that:

    1. _______________________________(the "Grant Date");

    2. _______________________________(the "Optionee");

    3. was granted the option (the "Option") to purchase_______________________________common shares (the "Common Shares") of the Corporation;

    4. for the price (the "Option Price") of $_________per Common Share;

    5. which shall be exercisable ("Vested") in whole or in part in the following amounts on or after the following dates:

     (a) _____% on the Grant Date; and

     (b) _____% every_____months thereafter;

    6. terminating on_______________________________(the "Expiry Date"),

    all on the terms and subject to the conditions set out in the Plan. For greater certainty, once Common Shares have become Vested, the Common Shares continue to be exercisable until the termination or cancellation thereof as provided in this Option Agreement and the Plan.

    If the Optionee is resident in the United States, unless the Plan or the Options and the Common Shares are registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), the Options and the Common Shares are being or will be issued, as applicable, pursuant to an available exemption or exclusion from registration under the U.S. Securities Act. Accordingly, any Options or Common Shares issued prior to an effective registration statement filed with the United States Securities and Exchange Commission will be "restricted securities" as such term is defined in Rule 144 under the U.S. Securities Act, and, therefore may not be transferred, sold, assigned, pledged, hypothecated or otherwise disposed by the Optionee, directly or indirectly, without registration under the U.S. Securities Act and applicable state securities laws or unless in compliance with an available exemption therefrom.

    The undersigned Optionee represents and warrants that he/she is engaged to provide on, an ongoing bona fide basis, consulting, technical, management or other services to the Corporation or to an Affiliate of the Corporation.

    By signing this Option Agreement, the Optionee acknowledges that the Optionee has read and understandings the Plan and agrees to the terms and conditions of the Plan and this Option Agreement.

    [REMAINDER INTENTIONALLY LEFT BLANK]

    

    IN WITNESS WHEREOF the parties hereto have executed this Option Agreement as of the ____day of ___________________, 20__.

    

    	 	 	C21 INVESTMENTS INC.
	 	 	 	 	 	 
	
                 

            	 	
                Per:

            	 	
                 

            	
                 

            
	
                 

            	 	
                 

            	
                 

            	
                 

            	
                Name:

            
	
                 

            	 	
                 

            	
                 

            	
                 

            	
                Title:

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                SIGNED, SEALED, AND DELIVERED

            	 	
                )

            	
                 

            	
                OPTIONEE

            
	
                in the presence of

            	 	
                )

            	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	
                 

            	
                 

            	
                 

            
	
                Witness

            	 	 	
                 

            	
                «Name»

            
	
                 

            	 	
                )

            	
                 

            	
                 

            	
                 

            

    

    

    SCHEDULE "B"

    NOTICE OF EXERCISE

    To Exercise the Options, Complete and Return this Form

    The undersigned Optionee (or his or her legal representative(s) permitted under the Stock Option Plan of C21 Investments Inc. (the "Corporation") (as the same may be supplemented and amended from time to time) (the "Plan") hereby irrevocably elects to exercise the Options for the number of common shares of the Corporation ("Common Shares") as set forth below: 

    
        	(a) Number of Options to be Exercised:	 
	 	 
	(b) Option Exercise Price per Common Share: $	$
	 	 
	
                    Aggregate Purchase Price [ (a) multiplied by (b) ]:

                	
                    $

                

    

    and hereby tenders a certified cheque or bank draft for such Aggregate Purchase Price, and directs such Common Shares to be issued and registered in the name of the undersigned and that a Common Share certificate therefor be issued as directed in the Plan, all subject to and in accordance with the Plan. Unless otherwise defined herein, any capitalized terms used herein shall have the meaning ascribed to such terms in the Plan.

    If the undersigned Optionee is resident in the United States, the undersigned hereby represents, warrants, acknowledges and agrees that unless the Common Shares issuable hereby have been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), the issuance hereby is being made pursuant to an exemption or exclusion from the registration requirements of the U.S. Securities Act and similar exemptions under applicable state securities laws. Accordingly, any Common Shares issued prior to an effective registration statement filed with the United States Securities and Exchange Commission will be "restricted securities" as such term is defined in Rule 144 under the U.S. Securities Act, and, therefore may not be transferred, sold, assigned, pledged, hypothecated or otherwise disposed by the Optionee, directly or indirectly, without registration under the U.S. Securities Act and applicable state securities laws or unless in compliance with an available exemption therefrom. The undersigned Optionee understands and agrees that unless the Common Shares have been registered under the U.S. Securities Act, the certificate(s) representing the Common Shares and all certificate(s) issued in exchange therefor or in substitution thereof, will be endorsed with the following or a similar legend until such time as it is no longer required under the applicable requirements of the U.S. Securities Act: 

    

    "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER. HEDGING TRANSACTIONS INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT."

    DATED:_________________, 20___

    	
                SIGNED, SEALED, AND DELIVERED 

            	  	
                )

            	 	
                 

            	
                OPTIONEE

            
	
                in the presence of

            	 	
                )

            	 	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	 	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	 	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	 	
                 

            	
                 

            	
                 

            
	
                 

            	 	
                )

            	 	
                 

            	
                 

            	
                 

            
	
                Witness

            	 	 	 	
                 

            	
                «Name»

            
	
                 

            	 	
                )

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