Document:

Exhibit 10.26

 

[***] = CERTAIN PERSONALLY IDENTIFIABLE INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN
OMITTED FROM THIS EXHIBIT PURSUANT TO ITEM 601(A)(6) UNDER REGULATION S-K.

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is effective January 1, 2022 (the “Effective Date”), by and between JGMT, LLC,
a Florida limited liability company (the “Company”), James Cacioppo (the “Executive”) and Jushi
Holdings Inc. (“Parent”). (Company and Executive are sometimes individually referred to herein as a “Party”
and collectively as the “Parties.”)

 

WHEREAS, the Executive was
hired by the Company on April 1, 2018; and

 

WHEREAS, the Executive agrees
to continue to provide services for the benefit of the Company and Parent for the additional period provided herein, and the Company wishes
to procure such services as provided herein.

 

NOW, THEREFORE, in consideration
of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

1.             Employment
Term. This Agreement shall be effective as of the Effective Date and Executive’s employment with the Company shall continue
in accordance with the terms of this Agreement and shall continue for an initial period of two (2) years and one day following the Effective
Date (the “Initial Term”), unless earlier terminated pursuant to Section 5 hereof. Upon the end of the Initial
Term, the term of this Agreement shall automatically renew for one successive two-year period (the “Renewal Term”)
unless the Company provides written notice to the Executive of its intention to not renew this Agreement at least 60 days prior to the
end of the Initial Term or the Renewal Term, as applicable, or the Executive provides written notice to the Company of his intention
to not renew this Agreement at least 60 days prior to the end of the Initial Term or the Renewal Term. For purposes of this Agreement,
the “Employment Term” shall mean the Initial Term and the Renewal Term, in each case subject to early termination
in accordance with Section 5 hereof.

 

2.             Position
and Duties; Exclusive Employment; No Conflicts.

 

(a)               Position
and Duties; Exclusive Employment. During the Employment Term, Executive shall serve as an employee of the Company and as Chief
Executive Officer of the Parent and Chairman of the board of directors (the “Board”) of Parent, reporting
directly to the Board and shall have such duties, authority, and responsibility as shall be assigned and determined from time to
time by the Board, including duties and responsibilities for the Company, Parent, any future parent of the Company, and each of
their current and future subsidiaries and affiliates (collectively referred to herein as the “Company Group”).
Executive shall perform those duties and have those authorities commensurate with the position of Chief Executive Officer. During
the Employment Term, Executive shall (i) perform Executive’s duties and responsibilities hereunder faithfully and to the
best of Executive’s abilities in a diligent manner and in accordance with the Company Group’s policies and applicable
law, (ii) use Executive’s commercially reasonable best efforts to promote the success of the Company Group, and (iii) not do
anything, or permit anything to be done at Executive’s direction, that is intended to be inconsistent with Executive’s
duties to the Company Group or opposed to the best interests of the Company Group or which is a conflict of interest, in each case,
subject to applicable law. Notwithstanding the foregoing, Executive may (i) engage in religious, charitable or other community
activities, (ii) actively manage Executive’s personal investments and affairs, which may occur during business hours,
including by serving as a member of the board of directors of any company in which Executive personally invests; and (iii) continue
the outside activities set forth on Exhibit A hereto, provided that the outside activities described in clauses (i) through
(iii) shall not, individually or in the aggregate, interfere with Executive’s performance of Executive’s duties to
Company Group. Any other outside business activities not described herein shall require the prior written approval of the Board (or
a duly authorized committee thereof), which approval will not be unreasonably withheld, conditioned or delayed.

 

     

     

    

 

(b)              
Principal Office. Executive’s principal office will be located in Boca Raton, FL but Executive will be expected to
travel extensively on behalf of the Company.

 

(c)              
No Conflict. Executive represents and warrants to the Company that Executive has the capacity to enter into this Agreement,
and that the execution, delivery and performance of this Agreement by Executive will not violate any agreement, undertaking or covenant
to which Executive is party or is otherwise bound, including any obligations with respect to non-competition, non-solicitation, or proprietary
or confidential information of any other person or entity.

 

3.           Compensation;
Benefits. In consideration for the services to be provided by the Executive and the other premises and covenants set forth herein,
the Company agrees to compensate the Executive as follows:

 

(a)              
Base Salary. From the Effective Date, the Company shall pay to Executive an annual base salary of $750,000 (as the same
may be increased from time to time, the “Base Salary”), which shall be payable in regular installments in accordance
with the Company’s customary payroll practices and procedures, but in no event less frequently than monthly. On each anniversary
of the Effective Date, the Base Salary shall be increased by an additional $100,000 per year.

 

(b)              
Annual Bonus. During the Employment Term, the Executive shall be eligible to receive an annual bonus for each fiscal
year or portion thereof during which the Executive has been employed hereunder, with the minimum amount of the target bonus
to be no less than one hundred percent (100%) of the Base Salary  (the “Annual Bonus”), (such target bonus
amount to be reviewed by the of the compensation committee of the Board on an annual basis for increases but not decreases). The actual
amount of any Annual Bonus earned by Executive shall be at the discretion of the Board; provided that in no event shall such Annual Bonus
be less than the target. The Annual Bonus shall be paid in cash and shall be paid in no event later than two-and-a-half months following
the end of the fiscal year in which the Annual Bonus relates.

 

(c)               Welfare
Benefit Plans. During the Employment Term, Executive shall be eligible to participate in the welfare benefit plans, practices,
policies and programs (including, if applicable, medical, dental, disability, employee life, group life and accidental death
insurance plans and programs) maintained by the Company or its affiliates for similarly situated executives of the Company employed
in the United States, subject in each instance to the terms and conditions of such plans, practices, policies and programs. The
Company reserves the right to amend or terminate its employee benefit plans at any time.

 

    2 

     

    

 

(d)              
Expenses. During the Employment Term, Executive shall be entitled to reimbursement of all documented reasonable business
expenses incurred by Executive in accordance with past practices related to the Executive’s prior travel and expense activities.
In addition, Executive shall be entitled to reimbursement of all documented legal fees incurred by Executive related to the negotiation
of this Agreement and the agreements and documents referred to herein. To the extent that any reimbursement of expenses under this Section
3(d) constitutes “deferred compensation” under Section 409A of the Internal Revenue Code of 1986 and the regulations and
guidance promulgated thereunder (as amended, the “Code” and such section of the Code, “Code Section 409A”),
such reimbursement shall be provided no later than December 31 of the year following the year in which the expense was incurred. The amount
of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year and the right to payment
or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

(e)              
Vacation. During the Employment Term, Executive shall be entitled to time off as needed, subject to the business needs of
the Company and the Parent.

 

(f)              Equity
Compensation. During the Employment Term, Executive shall be eligible to receive an annual equity-based compensation award (an
 “LTI Award”) from the Parent, subject to compliance with Applicable Securities Laws (as hereinafter defined).
During the Initial Term, the LTI Awards shall be as follows: (i) on or before July 30, 2022, Parent shall grant Executive an option
to purchase three million (3,000,000) subordinate voting shares in Parent (“Shares”) (the “2021 LTI
Award”); and (ii) on or before January 1, 2023, Parent shall grant Executive an option to purchase three million
(3,000,000) Shares (the “2022 LTI Award”). During the Renewal Term(s) (if
applicable), the LTI Awards shall be as follows: (i) on or before January 1, 2024 Parent shall grant Executive an option to
purchase three million (3,000,000) Shares (the “2023 LTI Award”); on or before January 1, 2025, Parent shall
grant Executive an option to purchase three million (3,000,000) Shares (the “2024 LTI Award”); and (ii) on or
before January 1, 2026, Parent shall grant Executive an option to purchase three million (3,000,000) Shares (the “2025 LTI
Award”), in each case, except as otherwise provided in Section 5 hereof, subject to Executive’s continued service
with the Company through each grant date. The LTI Awards shall be granted under Parent’s 2019 Equity Incentive Plan, as
amended (the “Equity Plan”), and shall be evidenced by an option agreement setting forth the terms and conditions
of the LTI Award, which shall generally be consistent with the terms set forth herein and shall provide for a five-year post
termination exercise period. Each LTI Award shall have an exercise price per Share equal to the Fair Market Value (as such term is
defined in the Equity Plan) of a Share on the LTI Award grant date. The LTI Awards shall be subject to time-based vesting as set
forth in Exhibit B attached hereto; provided, however, all LTI Awards shall be subject to vesting in accordance with Sections 5 and
7 hereto. All Share numbers in this Section 3(f) referencing an LTI Award that has not yet been granted at the time of any
 “Capitalization Adjustment” shall be equitably adjusted by the Board to reflect any “Capitalization
Adjustment”, as such term is defined in the Equity Plan, and the Board’s good faith action with respect to such
adjustment shall be final, binding and conclusive. In the event there is an insufficient number of Shares available under the Equity
Plan to make an LTI Award to Executive on any date Executive is otherwise eligible to receive an LTI Award, Executive and Parent
pledge to negotiate in good faith to provide Executive with economically equivalent compensation in an alternative form.

 

    3 

     

    

 

(g)              
Director and Officer Indemnification. During the Employment Term and thereafter, the Company shall, to the fullest extent
permitted by law, promptly indemnify Executive against all costs, charges, losses, expenses and liabilities (including, but not limited
to, reasonable attorneys’ fees and costs incurred in defending legal proceedings) incurred by Executive in connection with any actual,
threatened or reasonably anticipated claim, suit, action or proceeding arising in connection with the execution, discharge or exercise
of Executive’s duties as an officer or director of the Company or any member of the Company Group and/or the exercise of Executive’s
powers in Executive’s capacity as an officer or director of the Company or any member of the Company Group or otherwise in relation
thereto (including, without limitation, any regulatory filings and licenses required for the business of the Company Group). Such expenses
shall be promptly advanced to Executive to the fullest extent permitted by law. The Company shall also provide and maintain directors’
and officers’ liability insurance coverage for Executive’s benefit during Executive’s service with the Company or any
member of the Company Group in any capacity and for a period six years thereafter, provided that such coverage shall be no less
favorable than the coverage provided to other members of the Board. The Company shall also assist the Executive in preparing and filing
any applicable regulatory filings for the Company Group and shall reimburse the Executive for any expenses incurred by the Executive with
respect thereto. Any amount payable pursuant to this Section 3(g) shall be paid to Executive as soon as practicable but, in any
event no later than two-and-a-half months following the end of the fiscal year in which a right to payment arises.

 

(h)              
Withholding Taxes. All forms of compensation paid or payable to Executive, whether under this Agreement or otherwise, are
subject to reduction to reflect applicable withholding and payroll taxes pursuant to any applicable law or regulation

 

4.             Piggyback
Registration.

 

(a)               In
the event that Parent proposes to conduct for its own account a registered offering for cash of Shares or other voting equity
securities or files a registration statement or registration statements therefor under Applicable Securities Laws (as defined
below), other than a registration statement (or any registered offering with respect thereto) (i) filed in connection with any
employee stock option or other benefit plan, (ii) pursuant to a registration statement under the Securities Act of 1933, as amended
(the “Securities Act”) on Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the
Securities Act or any successor rule thereto), (iii) for an offering of debt that is convertible into voting equity securities of
the Company, or (iv) for a dividend reinvestment plan, Executive shall have the right, subject to the Board’s good faith
discretion described below, to include as part of such registration, up to a pro rata portion of Executive’s fully-diluted
vested equity securities in the Parent in such registered offering and any applicable registration statement filed for the purpose
thereof. Notwithstanding the foregoing, the Executive’s right to participate in any such registered offering and the number of
Executive’s equity securities in the Parent that may be offered thereunder, if any, shall be subject to the Board’s good
faith discretion, and in the event that the Board determines (including upon the good faith advice of any managing underwriter(s)
for such offering), that the dollar amount or number of equity securities that Parent desires to sell, taken together with
Executive’s equity securities in Parent that Executive desires to sell, exceeds the maximum dollar amount or maximum number of
equity securities that can be sold in the offering without adversely affecting the proposed offering price, the timing, the
distribution method, or the probability of success of such offering, then the Board may reduce the number of Executive’s
equity securities in Parent that may be included in such offering by the minimum amount necessary to avoid such adverse
consequences.

 

    4 

     

    

 

(b)              
In connection with any registration statement in which Executive is participating, Executive shall furnish (or cause to be furnished)
to Parent in writing such information as Parent reasonably requests for use in connection with any such registration statement or prospectus
and, to the extent permitted by law, shall indemnify Parent, its directors, officers, agents and employees, each person, if any, who controls
Parent within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under
the Securities Act, the Exchange Act or otherwise, arising from (i) information furnished by or on behalf of Executive in writing, for
specific inclusion in such registration statement or that relates to Executive or Executive’s proposed method of distribution of
registered securities and was reviewed and approved in writing by Executive expressly for use in such registration statement or (ii) sales
by Executive of registered securities after Parent has advised Executive in writing that such registration statement may no longer be
used due to a material misstatement or omission.

 

(c)              
In order to participate in any underwritten offering or other offering for equity securities of Parent pursuant to a registration
initiated by Parent hereunder, Executive (and any applicable affiliate participating in the offering) (i) agrees to sell such person’s
or entity’s securities on the basis provided in any underwriting, sales, distribution or placement arrangements approved by Parent
and (ii) agrees to complete and execute all customary questionnaires, powers of attorney, indemnities, lock-up agreements, underwriting
or other agreements and other customary documents as may be reasonably required under the terms of such underwriting, sales, distribution
or placement arrangements; provided that Executive shall only be subject to the lock-up restrictions set forth in any such agreements
if the directors and officers of Parent are subject to a similar obligation and the length of any lock-up obligation for Executive shall
be no longer than the shortest lock-up of any such directors and officers.

 

(d)              
For purposes of this Agreement, the term “Applicable Securities Laws” means all applicable securities laws of the United
States and/or Canada, including without limitation, the Securities Act, the Exchange Act and any blue sky or other state securities laws
in the United States, and the applicable rules and regulations of the Canadian Securities Exchange and/or any other United States or Canadian
stock exchange on which the Parent’s equity securities are then listed or traded.

 

    5 

     

    

 

5.            Termination.
This Agreement and Executive’s employment with the Company may be terminated in accordance with any of the following provisions.

 

(a)              
Termination by the Company Without Cause or by the Executive for Good Reason. The Company may terminate Executive’s
employment and this Agreement without Cause (as defined in Section 5(f)) by providing written notice to the Executive at least
forty-five (45) days prior to the effective date of termination (the “Notice Period”). During the Notice Period, Executive
shall continue to perform the duties of Executive’s position and the Company shall continue to compensate Executive as set forth
herein. Notwithstanding the foregoing, the Company will have the option of requiring Executive to immediately vacate the Company’s
premises and cease performing Executive’s duties hereunder. If the Company so elects this option, then the Company will be obligated
to compensate the Executive for the duration of the Notice Period. In the event Company terminates Executive’s employment and this
Agreement without Cause (or by election not to renew for the Renewal Term pursuant to Section 1 hereof) or the Executive terminates
his employment with the Company for Good Reason (as defined in Section 5(f)), the Company shall provide the Executive with the
following, subject to the Executive executing a general release of all claims in a form mutually agreeable to Executive and the Company
, which Executive and the Company mutually pledge to negotiate in good faith and agree to no later than July 30, 2022, that becomes final,
binding and irrevocable no more than fifty-five (55) days after Executive’s termination of employment (“Release”)
(i) the grant of the LTI Award for the fiscal year of termination that would have otherwise been granted by the end of the fiscal year;
(ii) full vesting as of the date of termination of all the Executive’s outstanding equity-based awards of Parent (including the
LTI Awards, including those referenced in clause (i)) and (iii) a one-time lump sum payment equal to five million dollars ($5,000,000)
(clause (iii), the Severance Payments”). The Severance Payments shall be made within five (5) business days after the expiration
of the applicable revocation period with respect to such Release; provided that if Executive’s employment is terminated on or after
November 1 of any taxable year and prior to January 1 of the following taxable year, if necessary to comply with Code Section 409A, such
Severance Payment shall not be paid to Executive until the beginning of the taxable year following the taxable year in which Executive’s
employment is terminated but shall include all amounts that would otherwise have been paid to the Executive during the period beginning
on the date of the Executive's termination and ending on the Severance Payment date as if no delay had been imposed. In the event the
LTI Award described in clause (i) above cannot be granted in compliance with Applicable Securities Laws, Executive and Parent pledge to
negotiate in good faith to provide Executive with economically equivalent compensation in an alternative form.

 

(b)              
Termination by Executive without Good Reason. Executive may terminate his employment and this Agreement without Good Reason
by providing written notice to the Company at least thirty (30) days prior to the effective date of termination (the “Executive
Notice Period”). During the Executive Notice Period, Executive shall continue to perform the duties of Executive’s position
and the Company shall continue to compensate Executive as set forth herein. Notwithstanding the foregoing, the Company will have the option
of requiring Executive to immediately vacate the Company’s premises and cease performing Executive’s duties hereunder. If
the Company so elects this option, then the Company will be obligated to compensate the Executive for the duration of the Executive Notice
Period.

 

    6 

     

    

 

(c)              
 Termination by the Company for Cause. The Company may terminate Executive’s employment and this Agreement for Cause,
which shall be effective upon delivery by the Company of written notice to Executive of such termination.

 

(d)              
Death of Executive. Executive’s employment and this Agreement shall terminate automatically upon the date of Executive’s
death. In the event of a termination due to death and Executive’s estate signs the Release, Executive’s estate, shall be entitled
to the following payments and benefits: (i) a lump sum payment of a pro rata portion of the Annual Bonus in respect of the fiscal year
in which such termination occurs based on the number of days elapsed in such year through the effective date of Executive’s termination
of employment (the “Pro Rata Bonus Payment”); (ii) a lump-sum cash payment in an amount equal to the monthly COBRA
premiums that Executive would be required to pay to continue group health coverage as in effect on the date of his termination for himself
and, if applicable, his eligible covered dependents for a period of eighteen (18) months following the Executive’s termination of
employment, which payment shall be made regardless of whether Executive or his dependent elects COBRA continuation coverage (the “COBRA
Equivalent Payment”); and (iii) full vesting on the date of death of all outstanding equity-based awards of Parent (including
all LTI Awards), subject to compliance with Applicable Securities Laws, (clauses (i) through (ii) collectively, the “Separation
Payments”). The Separation Payments shall be made within five (5) business days after the expiration of the applicable revocation
period with respect to such Release; provided that if Executive’s employment is terminated on or after November 1 of any taxable
year and prior to January 1 of the following taxable year, if necessary to comply with Code Section 409A, such Separation Payment shall
not be paid to Executive’s estate until the beginning of the taxable year following the taxable year in which Executive’s
employment is terminated but shall include all amounts that would otherwise have been paid to the Executive’s estate during the
period beginning on the date of the Executive's termination and ending on the Separation Payment date as if no delay had been imposed.

 

(e)              
Disability of Executive. This Agreement shall be terminated upon thirty (30) days’ written notice by Company to Executive
that Company has made a good faith determination that Executive has a Disability (as defined in Section 5(f)). In the event
of a termination due to Disability and Executive signs the Release, Executive, shall be entitled to the Separation Payments which shall
be paid within five (5) business days after the expiration of the applicable revocation period with respect to such Release; provided
that if Executive’s employment is terminated on or after November 1 of any taxable year and prior to January 1 of the following
taxable year, if necessary to comply with Code Section 409A, such Separation Payment shall not be paid to Executive until the beginning
of the taxable year following the taxable year in which Executive’s employment is terminated but shall include all amounts that
would otherwise have been paid to the Executive during the period beginning on the date of the Executive's termination and ending on the
Separation Payment date as if no delay had been imposed.

 

(f)            Definitions. The terms set forth below have the following meanings, except where otherwise expressly indicated:

 

(i)             “Cause”
shall mean, with respect to Executive, one or more of the following: (A) commission of a felony or other crime involving moral turpitude
that has been fully adjudicated including all appeals during Executive’s employment with the Company; provided, that for the sake
of clarity, no action or inaction by Executive that may be considered a violation of any U.S. federal law prohibiting the sale of cannabis
products shall be grounds for any termination by the Company for Cause; or (B) a breach of any applicable fiduciary duty with respect
to the Company based on Executive’s gross negligence or willful misconduct.

 

    7 

     

    

 

(ii)          
“Change of Control” means the occurrence of any one of the following:

 

(A)            
any one person (or more than one person acting as a group) other than any trustee or other fiduciary holding securities of the
Parent under an employee benefit plan of the Parent, an underwriter temporarily holding securities pursuant to an offering of such securities
or any corporation owned, directly or indirectly, by the stockholders of the Parent in substantially the same proportions as their ownership
of stock of the Parent, directly or indirectly acquires equity securities representing more than 50% of the combined voting power or fair
market value of the Parent’s then outstanding equity securities;

 

(B)             
the consummation of a reorganization, merger, statutory share exchange, consolidation, amalgamation or similar corporate transaction
(each, a “Business Combination”) other than a Business Combination in which all or substantially all of the persons
who were the beneficial owners of the Parent’s voting securities immediately prior to such Business Combination beneficially own,
directly or indirectly, 50% or more of the combined voting power and fair market value of the voting securities of the entity resulting
from such Business Combination (including, without limitation, an entity which as a result of the Business Combination owns the Parent
or all or substantially all of the Parent’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership of the Parent’s voting securities immediately prior to such Business Combination;

 

(C)             
any one person (or more than one person acting as a group) acquires all or substantially all of the assets of the Parent within
any twelve (12) consecutive month period; or

 

(D)            
individuals who, as of the Effective Date, constituted the Board (the “Incumbent Directors”) cease for any reason
to constitute at least a majority of the Board; provided, that any individual who becomes a member of the Board subsequent to the Effective
Date and whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors shall be treated
as an Incumbent Director unless he or she assumed office in connection with a Business Combination or as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a person other than the Board.

 

Notwithstanding the
forgoing, if necessary to comply with Code Section 409A, none of the foregoing events shall constitute a Change of Control of the Parent
unless such event also constitutes a change in ownership of the Parent within the meaning of Treasury Regulation Section 1.409A- 3(i)(5)(v),
a change in the effective control of the Parent within the meaning of Treasury Regulation Section 1.409A- 3(i)(5)(vi) or a change in ownership
of a substantial portion of the assets of the Parent within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii).

 

    8 

     

    

 

(iii)           
“Disability” means (i) the Executive has been incapacitated by bodily injury, illness or disease
so as to be prevented thereby from engaging in the performance of the Executive’s duties (provided, however, that the Company acknowledges
its obligations to provide reasonable accommodation to the extent required by applicable law); (ii) such total incapacity shall have
continued for a period of six (6) consecutive months; and (iii) such incapacity will, in the opinion of a qualified physician,
be permanent and continuous during the remainder of the Executive’s life.

 

(iv)            
“Good Reason” means (i) the assignment to Executive of any duties materially inconsistent with his position,
including any change in status, title, authority, duties or responsibilities or other action which results in a material diminution in
such status, title, authority, duties or responsibilities; (ii) a material reduction in Executive’s Base Salary by the Company;
(iii) the relocation of Executive’s principal office to a location more than fifty (50) miles from his then current principal office;
or (iv) beginning during the 2023 fiscal year, Executive finds a replacement for his position and such replacement is approved by the
Board.

 

6.             Payments of Accrued Obligations Upon Termination. In the event that Executive’s employment with the Company terminates
for any reason, the Company’s obligation to compensate Executive shall in all respects cease as of the date of termination, except
that the Company shall pay to Executive through the date of termination (i) any accrued but unpaid Base Salary, (ii) any unpaid Annual
Bonus for the year prior to the year of termination; (iii) any payments Executive is entitled to receive pursuant to Section 3,
and (iv) any rights or payments that are vested benefits or that Executive is otherwise entitled to receive at or subsequent to the date
of termination of employment under any benefit plan or any other contract or agreement with the Company, which shall be payable in accordance
with the terms of such benefit plan, contract or agreement, except as explicitly modified by this Agreement, including, without limitation,
any of Executive’s business expenses that are reimbursable, but have not been reimbursed as of the date of termination of employment
(the “Accrued Obligations”). The Company shall pay to Executive (or to Executive’s estate in the event of Executive’s
death), the Accrued Obligations (other than the Severance Payments described in Section 5(a) and Separation Payments described
in Section 5(c)) within thirty (30) days after the date of termination of Executive’s employment with the Company.

 

7.            Change
in Control Benefits. In the event of a Change in Control during the Employment Term, the Company shall provide the Executive
with: (i) a one-time lump sum payment equal to five million dollars ($5,000,000); (ii) a grant of the LTI Award that would have
otherwise been granted during the fiscal year of the Change in Control, which shall be granted immediately prior to such Change in
Control subject to compliance with Applicable Securities Laws; and (iii) full vesting of all the Executive’s outstanding
equity-based awards of Parent (including all LTI Awards, including those referenced in clause (ii)) subject to compliance with
Applicable Securities Laws.

 

    9 

     

    

 

8.             Non-Disclosure of Confidential Information.

 

(a)              
Confidential Information. Executive acknowledges that in the course of Executive’s employment with the Company, Executive
will be provided with, have access to, access, use, and develop Confidential Information (as defined herein) of the Company Group. For
purposes of this Agreement, “Confidential Information” shall mean and include all information, whether written or oral,
tangible or intangible (in any form or format), of a private, secret, proprietary or confidential nature, of or concerning the Company
Group or the business or operations of the Company Group, including without limitation: any trade secrets or other confidential or proprietary
information which is not publicly known or generally known in the industry; the identity, background, and preferences of any current or
prospective clients, investors, distributors, suppliers, vendors, referral sources, and business affiliates; pricing and financial information;
current and prospective client, investor, distributor, supplier, or vendor lists and leads; proposals with prospective clients, investors,
distributors, suppliers, vendors, or business affiliates; contracts with clients, investors, distributors, suppliers, vendors or business
affiliates; marketing plans; brand standards guidelines; proprietary computer software and systems; marketing materials and information;
operating and business plans and strategies; research and development; policies and manuals; personnel information of employees that is
private and confidential; any information related to the compensation of employees, consultants, agents or representatives of Company
Group; sales and financial reports and forecasts; any information concerning any product, technology or procedure employed by Company
Group but not generally known to its current or prospective clients, investors, distributors, suppliers, vendors or competitors, or under
development by or being tested by Company Group; any inventions, innovations or improvements covered by Section 11 hereof; and
private information concerning planned or pending acquisitions or divestitures. Notwithstanding the foregoing, the term Confidential Information
shall not include information which (A) becomes available to Executive from a source other than Company Group or from third parties with
whom Company Group is not bound by a duty of confidentiality, or (B) becomes generally available or known in the industry other than as
a result of its disclosure by Executive.

 

(i)                
During the course of Executive’s employment with Company, Executive agrees to use Executive’s commercially reasonable
best efforts to maintain the confidentiality of the Confidential Information, including adopting and implementing all reasonable procedures
prescribed by Company Group to prevent unauthorized use of Confidential Information or disclosure of Confidential Information to any unauthorized
person.

 

(ii)              Executive
agrees that all Confidential Information shall be Company Group’s sole property during and after Executive’s employment
with Company. Executive agrees that Executive will not remove any hard copies of Confidential Information from Company Group’s
premises, will not download, upload, or otherwise transfer copies of Confidential Information to any external storage media or cloud
storage (except as necessary in the performance of Executive’s duties for Company Group and for Company Group’s
benefit), and will not print hard copies of any Confidential Information that Executive accesses electronically from a remote
location (except as necessary in the performance of Executive’s duties for Company Group and for Company Group’s
benefit).

 

    10 

     

    

 

(iii)           
Other than as contemplated in Section 8(a)(iv) below, in the event that Executive becomes legally obligated to disclose
any Confidential Information to anyone other than to Company Group, Executive will provide Company with prompt written notice thereof
so that Company may seek a protective order or other appropriate remedy and Executive will cooperate with and assist Company in securing
such protective order or other remedy. In the event that such protective order is not obtained, or that Company waives compliance with
the provisions of this Section 8(a)(iii) to permit a particular disclosure, Executive will furnish only that portion of the Confidential
Information which Executive is legally required to disclose.

 

(iv)            
Nothing in this Agreement shall be construed to prohibit Executive from: filing a charge or participating in any investigation
or proceeding conducted by any federal, state or local government agency charged with enforcement of any law; reporting possible violations
of any law, rule or regulation to any governmental agency or entity charged with enforcement of any law, rule or regulation; or making
other disclosures that are protected under whistleblower provisions of any law, rule or regulation. Executive acknowledges that an individual
shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is:
(A) made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and made solely
for the purpose of reporting or investigating a suspected violation of law; or (B) made in a complaint or other document filed in
a lawsuit or other proceeding, if such filing is made under seal. Executive further acknowledges that an individual who files a lawsuit
for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual
and use the trade secret information in the court proceeding, if the individual: (1) files any document containing the trade secret under
seal; and (2) does not disclose the trade secret, except pursuant to court order.

 

(b)              
Restrictions On Use And Disclosure Of Confidential Information. At all times during Executive’s employment with the
Company and for two (2) years after Executive’s employment with Company terminates, regardless of the reason for termination, Executive
agrees: (i) not to use, permit use of, discuss, disclose, transfer, or disseminate in any manner any Confidential Information, except
as necessary in the performance of Executive’s duties for Company Group and for Company Group’s benefit; (ii) not to make,
or cause to be made, copies (in any form or format) of the Confidential Information, except as necessary in the performance of Executive’s
duties for Company Group and for Company Group’s benefit; and (iii) to promptly and fully advise the Company of all facts known
to Executive concerning any actual or threatened unauthorized use of the Confidential Information or disclosure of the Confidential Information
to any unauthorized person about which Executive becomes aware. The restrictions contained in this Section 7(b) also apply to Confidential
Information developed by Executive during Executive’s employment with the Company, which are related to the Company Group or to
the Company Group’s successor or assigns, as such information is developed for the benefit of and ownership of the Company Group
and all rights and privileges to such information or derivative works, including but not limited to trademarks, patents and copyrights
remain with the Company Group.

 

    11 

     

    

 

(c)              
 Third Party Information. Executive acknowledges that during the course of Executive’s employment with the Company,
Executive may receive or have access to, confidential or proprietary information belonging to third parties (“Third Party Information”).
During the Employment Term and thereafter, Executive agrees: (i) to hold the Third Party Information in the strictest confidence, take
all reasonable precautions to prevent the inadvertent disclosure of the Third Party Information to any unauthorized person, and follow
all of the Company’s policies regarding protecting the Third Party Information; (ii) not to use, permit use of, discuss, disclose,
transfer, or disseminate in any manner any Third Party Information, except as necessary in the performance of Executive’s duties
for Company Group; (iii) not to make, or cause to be made, copies (in any form or format) of the Third Party Information, except as necessary
in the performance of Executive’s duties for Company Group or as compelled by subpoena or other legal order or process; and (iv)
to promptly and fully advise the Company of all facts known to Executive concerning any actual or threatened unauthorized use of the Third
Party Information or disclosure of the Third Party Information to any unauthorized person about which Executive becomes aware.

 

(d)              
Return of Confidential Information and Property. Upon termination of Executive’s employment with the Company, notwithstanding
the reason or cause of termination, and at any other time upon written request by the Company, Executive shall promptly return to the
Company all originals, copies, or duplicates, in any form or format (whether paper, electronic or other storage media), of the Confidential
Information and the Third Party Information, as well as any and all other documents, computer discs, computer data, equipment, and property
of the Company Group (including, but not limited to, cell phones, credit cards, and laptop computers if they have been provided to Executive),
relating in any way to the business of the Company Group or in any way obtained by Executive during and in the course of Executive’s
employment with the Company. Executive further agrees that after termination of Executive’s employment with the Company, Executive
shall not knowingly retain any copies, notes, or abstracts in any form or format (whether paper, electronic or other storage media) of
the Confidential Information, the Third Party Information, or other documents or property belonging to the Company Group unless otherwise
required by law or any applicable regulatory guidance.

 

9.           Non-Competition;
Non-Solicitation. The Company recognizes the Executive’s personal good will is crucial to the viability and increased profitability
of the Company Group and as a result this provision is a material component in this Agreement.

 

(a)               Non-Competition.
Executive acknowledges the highly competitive nature of Company Group’s business and, in consideration of Executive’s
employment with the Company, access to the Confidential Information, the payment of the Base Salary, grant of equity-based
compensation awards, eligibility for Severance Payments pursuant to Section 5(a), Separation Payments pursuant to Section
5(b), and the Change in Control benefits described in Section 7, and any other benefits by Company to Executive pursuant
to the terms hereof (which Executive acknowledges is sufficient to justify the restrictions contained herein), Executive agrees that
during the Employment Term and for eighteen (18) months from the date of termination of Executive’s employment with Company
for any reason, Executive will not engage, directly or indirectly, as a principal, officer, agent, employee, director, member,
partner, stockholder (other than as the passive holder of less than ten percent (10%) of the outstanding stock of a publicly-traded
corporation), independent contractor, or through the investment of capital, lending of money or property, rendering of consulting
services or advice, or in any other capacity, whether with or without compensation or other remunerations, in the Restricted
Business (as hereinafter defined) anywhere within the anywhere within the Restricted Area (as hereinafter defined). For purposes of
this Agreement, the “Restricted Area” is the United States. For purposes of this Agreement, “Restricted
Business” shall mean the multi-state operator business of cultivating, manufacturing, processing, packaging, purchasing,
distributing, dispensing, and selling cannabis and hemp products; provided, such business has a market capitalization of at least
$500,000,000.

 

    12 

     

    

 

(b)              
Non-Solicitation of Business Opportunities. Executive agrees that during the Employment Term and for two (2) years from
the date of termination of Executive’s employment with Company for any reason, Executive shall not, for Executive’s own benefit
or on behalf of any other person or entity (other than the Company Group), directly or indirectly through another person or entity: (i)
divert existing business opportunities related to the Restricted Business to some person or entity engaged in the Restricted Business
(other than for the Company Group); or (ii) aid or assist any other person, business, or entity to do any of the aforesaid prohibited
acts. The restriction created by this Section 9(b) is limited to existing and prospective business opportunities of the
Company Group with whom Executive had material contact or business dealings during Executive’s employment with the Company.

 

(c)              
Non-Solicitation of Employees, Consultants, and Independent Contractors. Executive agrees that during the Employment Term
and for two (2) years from the date of termination of Executive’s employment with Company for any reason, including upon expiration
of the Employment Term, Executive will not, directly or indirectly (in any capacity, on Executive’s own behalf or on behalf of any
other person or entity): (i) solicit, request, induce or encourage any individual who was an employee, consultant, or independent contractor
of the Company Group at the time of Executive’s termination of employment with the Company to terminate their employment, to cease
to be engaged by the Company Group, and/or to terminate or reduce their business relationship with the Company Group; or (ii) hire, employ,
or offer to hire or employ any individual who was an employee, consultant, or independent contractor of the Company Group (other than
for the Company Group) at the time of Executive’s termination of employment with the Company; provided, however this subsection
(ii) shall only apply for up to a maximum of six (6) months after such employee, consultant or independent contractor leaves the service
of the Company Group and shall not apply to non-targeted solicitations or search inquiries, open notices or general media advertisements
or to any employees who are classified as exempt under the U.S. Fair Labor Standards Act.

 

(d)              
Scope of Restrictive Covenants. Company and Executive recognize and agree that the Company Group conducts business operations
and generates revenues from clients throughout the Restricted Area. Executive acknowledges that the Company Group would be greatly damaged
if Executive took action that would violate the restrictive covenants of this Section 9 anywhere in the Restricted Area. Accordingly,
Company and Executive agree that the restrictive covenant provisions contained in this Section 9 are applicable to the Restricted
Area, and Executive shall be prohibited from violating the terms of this Section 9 from any location anywhere in the Restricted
Area. The Parties acknowledge and agree that the scope of the restrictive covenants in this Section 9 shall not prevent Executive
from engaging in the practice of law in the Restricted Business or otherwise.

 

    13 

     

    

 

(e)              
 Reasonableness of Restrictive Covenants. Executive agrees and acknowledges that to assure the Company that the Company
Group will retain the value of its operations, it is necessary that the Executive abide by the restrictions set forth in this Agreement.
Executive further agrees and acknowledges that during the Employment Term, Executive will be engaged in, obtain Confidential Information
about, and have operational duties and responsibilities in connection with, all aspects of the Restricted Business. Executive further
agrees that the promises made in this Agreement are reasonable and necessary for protection of the Company Group’s legitimate business
interests including, but not limited to: the Confidential Information; client good will associated with the specific marketing and trade
area in which the Company Group conducts its business; the Company Group’s substantial relationships with prospective and existing
clients, investors, distributors, vendors, and suppliers; and a productive and competent and undisrupted workforce. Executive agrees that
the restrictive covenants in this Agreement will not prevent Executive from earning a livelihood in Executive’s chosen business,
they do not impose an undue hardship on Executive, and that they will not injure the public.

 

10.          Mutual Non-Disparagement. Executive agrees that at all times during and after the Employment Term, Executive will not
engage in any conduct that is injurious to the reputation or interests of the Company Group, including, but not limited to, making disparaging
comments (or inducing or encouraging others to make disparaging comments) about the Company Group, any of the shareholders, members, directors,
officers, employees, investors, or agents of the Company Group, or the Company Group’s operations, financial condition, prospects,
products or services. The Company agrees that at all times during and after the Employment Term, the officers and directors of the Company
Group will not engage in any conduct that is injurious to the reputation or interests of the Executive, including, but not limited to,
making disparaging comments (or inducing or encouraging others to make disparaging comments) about the Executive or Executive’s
affiliates, partners or any of Executive’s new business enterprises. However, nothing in this Agreement shall prohibit Executive
or the Company from: exercising protected rights under Section 7 of the National Labor Relations Act; filing a charge with or participating
in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other local, state, or federal administrative
body or government agency that is authorized to enforce or administer any law, rule, or regulation; testifying truthfully in any forum
or before any government agency responsible for enforcing any law, rule, or regulation; reporting possible violations of any law, rule
or regulation to any governmental agency or entity charged with enforcement of any law, rule or regulation; or making other disclosures
that are protected under whistleblower provisions of any law, rule or regulation. 

 

11.          Intellectual Property.

 

(a)               Work
Product Owned By Company. Executive agrees that the Company or the applicable member of the Company Group (each individually the
 “Assigned Party”) is and will be the sole and exclusive owner of all ideas, inventions, discoveries,
improvements, designs, plans, methods, works of authorship, deliverables, writings, brochures, manuals, know-how, method of
conducting its business, policies, procedures, products, processes, software, or any enhancements, or documentation of or to the
same and any other work product in any form or media that Executive makes, works on, conceives, or reduces to practice, individually
or jointly with others, in the course of Executive’s employment for the Assigned Party and with the use of the Assigned
Party’s time, materials or facilities, and is in any way related or pertaining to or connected with the present or anticipated
business, products or services of the Assigned Party whether produced during normal business hours or on personal time
(collectively, “Work Products”).

 

    14 

     

    

 

 

(b)              
Definition of Intellectual Property. “Intellectual Property” means any and all (i) copyrights and
other rights associated with works of authorship, (ii) trade secrets and other confidential information, (iii) patents, patent disclosures
and all rights in inventions (whether patentable or not), (iv) trademarks, trade names, Internet domain names, and registrations and applications
for the registration thereof together with all of the goodwill associated therewith, (v) all other intellectual and industrial property
rights of every kind and nature throughout the world and however designated, whether arising by operation of law, contract, license, or
otherwise, and (vi) all registrations, applications, renewals, extensions, continuations, divisions, or reissues thereof now or hereafter
in effect.

 

(c)              
Assignment. Executive acknowledges Executive’s work and services provided for the Assigned Party and all results and
proceeds thereof, including, the Work Products, are works done under Company Group’s direction and control and have been specially
ordered or commissioned by the Company Group. To the extent the Work Products are copyrightable subject matter, they shall constitute
 “works made for hire” for the Company Group within the meaning of the Copyright Act of 1976, as amended, and shall be the
exclusive property of the Assigned Party. Should any Work Product be held by a court of competent jurisdiction to not be a “work
made for hire,” and for any other rights, Executive hereby assigns and transfers to Assigned Party, to the fullest extent permitted
by applicable law, all right, title, and interest in and to the Work Products, including but not limited to all Intellectual Property
pertaining thereto, and in and to all works based upon, derived from, or incorporating such Work Products, and in and to all income, royalties,
damages, claims and payments now or hereafter due or payable with respect thereto, and in and to all causes of action, either in law or
in equity for past, present, or future infringement. Executive hereby waives and further agrees not to assert Executive’s rights
known in various jurisdictions as moral rights and grants the Company Group the right to make changes, as the Company Group deems necessary,
in the Work Products.

 

(d)              
License of Intellectual Property Not Assigned. Notwithstanding the above, should Executive be deemed to own or have any
Intellectual Property that is used, embodied, or reflected in the Work Products, Executive hereby grants to the Company Group, its successors
and assigns, the non-exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license, with rights to sublicense through
multiple levels of sublicenses, to use, reproduce, publish, create derivative works of, market, advertise, distribute, sell, publicly
perform and publicly display and otherwise exploit by all means now known or later developed the Work Products and Intellectual Property.

 

    15

     

    

 

(e)               Maintenance;
Disclosure; Execution; Attorney-In-Fact. Executive will, at the request and cost of the Assigned Party, sign, execute, make and
do all such deeds, documents, acts and things as the Assigned Party and their duly authorized agents may reasonably require to apply
for, obtain and vest in the name of the Assigned Party alone (unless the Assigned Party otherwise directs) letters patent,
copyrights or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the
same. In the event the Assigned Party is unable, after reasonable effort, to secure Executive’s signature on any letters
patent, copyright or other analogous protection relating to a Work Product, whether because of Executive’s physical or mental
incapacity or for any other reason whatsoever, Executive hereby irrevocably designates and appoints the Assigned Party and its duly
authorized officers and agents as Executive’s agent and attorney-in-fact (which designation and appointment shall be (i)
deemed coupled with an interest and (ii) irrevocable, and shall survive Executive’s death or incapacity), to act for and
in Executive’s behalf and stead to execute and file any such application or applications and to do all other lawfully
permitted acts to further the prosecution and issuance of letters patent, copyright or other analogous protection thereon with the
same legal force and effect as if executed by Executive.

 

(f)               
Executive’s Representations Regarding Work Products. Executive represents and warrants that all Work Products that
Executive makes, works on, conceives, or reduces to practice, individually or jointly with others, in the course of performing Executive’s
duties for Assigned Party under this Agreement are (i) original or an improvement of the Assigned Party’s prior Work Products and
(ii) do not include, copy, use, or infringe any Intellectual Property rights of a third party.

 

(g)              
Transfer of State Licenses. For the avoidance of doubt, following the Employment Term, Executive will cooperate diligently
with the members of the Company Group to transfer any and all state licenses related to the conduct of the Company Group’s business
that were obtained in Executive’s name into the name of such member of the Company Group as requested by the Board and the Company
Group shall work diligently to effectuate the transfer of such state licenses in a timely manner following the Employment Term.

 

12.                
Cooperation. During the Employment Term and thereafter, Executive will cooperate with all reasonable requests by the
Company Group for assistance in connection with any investigations or legal proceedings involving the Company Group, including by providing
truthful testimony in person in any such legal proceedings without having to be subpoenaed; provided, however, that the foregoing shall
not apply to any investigation or legal proceeding involving disputes between Executive and the Company Group arising under this Agreement
or any other agreement. In no event shall Executive’s cooperation materially interfere with his services for a subsequent employer
or other similar service recipient. The Company agrees that (i) it shall promptly reimburse the Executive for his reasonable and documented
expenses in connection with his rendering assistance and/or cooperation under this Section 12 upon his presentation of documentation
for such expenses and (ii) the Executive shall be reasonably compensated for any continued material services as required under this Section
12.

 

13.                 Severability;
Independent Covenants. If any term or provision of this Agreement shall be determined by a court of competent jurisdiction to be
illegal, invalid or unenforceable for any reason, the remaining provisions of this Agreement shall remain enforceable and the
invalid, illegal or unenforceable provisions shall be modified so as to be valid and enforceable and shall be enforced as modified;
provided, that no severance shall be effective if it materially changes the economic benefit of this Agreement to either party. Upon
such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate,
in good faith, a legal, valid and enforceable substitute provision which most nearly effects, to the extent possible, the same
economic, business or other purposes of the invalid, illegal or unenforceable provision. If, moreover, any part of this Agreement is
for any reason held too excessively broad as to time, duration, geographic scope, activity, or subject, it is the intent of the
parties that this Agreement shall be judicially modified by limiting or reducing it so as to be enforceable to the extent compatible
with the applicable law. Except as otherwise provided in this Agreement, the existence of any claim or cause of action of Executive
against the Company Group (or against any member, shareholder, director, officer, or employee thereof), whether arising out of the
Agreement or otherwise, shall not constitute a defense to: (i) the enforcement by the Company Group of any of the restrictive
covenants contemplated by this Agreement; or (ii) the Company Group’s entitlement to remedies hereunder.
Executive’s obligations under this Agreement are independent of any of the Company Group’s obligations to the
Executive.

 

    16

     

    

 

14.                
Remedies for Breach. Executive acknowledges and agrees that it would be difficult to measure the damages to the Company
Group from any breach or threatened breach by Executive of this Agreement, including but not limited to Sections 8, 9,10 or 11
hereof; that injury to the Company Group from any such breach would be irreparable; and that money damages would therefore be an inadequate
remedy for any such breach. Accordingly, Executive agrees that if Executive breaches or threatens to breach any of the promises contained
in this Agreement, the Company Group shall, in addition to all other remedies it may have (including monetary remedies), be entitled to
seek an injunction and/or equitable relief, on a temporary or permanent basis, to restrain any such breach or threatened breach without
showing or proving any actual damage to the Company Group. Nothing herein shall be construed as a waiver of any right the Company Group
may have or hereafter acquire to pursue any other remedies available to it for such breach or threatened breach, including recovery of
damages from Executive.

 

15.                
Attorneys’ Fees and Costs. In any action brought to enforce or otherwise interpret any provision of this Agreement,
the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs from the non-prevailing party to the action
or proceeding, including through settlement, judgment and/or appeal.

 

16.                 Assignment;
Third-Party Beneficiaries. The rights of the Company under this Agreement may, without the consent of Executive, be assigned by
the Company to (i) any person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or
otherwise, directly or indirectly, acquires all or substantially all of the Company’s stock or assets, or (ii) any affiliate
or future affiliate of the Company, and such assignment by Company pursuant to this Section 16 shall automatically,
and without any further action required by the Parties, relieve the assignor Company (and discharge and release the assignor
Company) from all obligations and liabilities under or related to this Agreement (all such obligations and/or automatically
liabilities assumed by the assignee Company). This Agreement shall be binding upon and inure to the benefit of any successor or
assigns of Company. Executive may not assign this Agreement without the written consent of the Company. Executive agrees that each
member of the Company Group is an express third-party beneficiary of this Agreement, and this Agreement, including the restrictive
covenants and other obligations set forth in Sections 8, 9, 10 and 12 hereof, are for each such member’s benefit.
Executive expressly agrees and consents to the enforcement of this Agreement, including but not limited to the restrictive covenants
and other obligations in Sections 8, 9, 10 and 12 hereof, by any member of the Company Group as well as by the Company
Group’s future affiliates, successors and/or assigns.

 

    17

     

    

 

17.                
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida,
without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any jurisdiction
other than the State of Florida.

 

18.                
Jurisdiction; Venue. The Parties hereto irrevocably and unconditionally submit to the exclusive jurisdiction of any
state or federal court sitting in Palm Beach County, Florida over any suit, action or proceeding arising out of or relating to this Agreement.
Service of any process, summons, notice or document by U.S. registered mail sent to the address of any Party for receipt of notices hereunder
as provided in Section 25 hereof shall be effective service of process for any action, suit or proceeding brought against
such Party in any such court. The Parties hereto irrevocably and unconditionally waive any objection to the laying of venue of any such
suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court
has been brought in an inconvenient forum. A final judgment in any suit, action or proceeding brought in any such court shall be conclusive
and binding upon the Parties and may be enforced in any other courts to whose jurisdiction a Party is or may be subject, by suit upon
such judgment.

 

19.                
Mutual Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND A TRIAL BY
JURY FOR ANY CAUSE OF ACTION, CLAIM, RIGHT, ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT
OR THE RELATIONSHIP OF THE PARTIES. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING FROM ANY SOURCE, INCLUDING
BUT NOT LIMITED TO THE CONSTITUTION OF THE UNITED STATES, THE CONSTITUTION OF ANY STATE, COMMON LAW OR ANY APPLICABLE STATUTE OR REGULATION.
EACH PARTY HEREBY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING THE RIGHT TO DEMAND TRIAL BY JURY.

 

20.                
Waiver. No waiver of any breach or other rights under this Agreement shall be deemed a waiver unless the acknowledgment
of the waiver is in writing executed by the Party committing the waiver. No waiver shall be deemed to be a waiver of any subsequent breach
or rights. All rights are cumulative under this Agreement. The failure or delay of the Company at any time or times to require performance
of, or to exercise any of its powers, rights or remedies with respect to any term or provision of this Agreement or any other aspect of
Executive’s conduct or employment in no manner (except as otherwise expressly provided herein) shall affect the Company’s
right at a later time to enforce any such term or provision.

 

21.                
Survival. Executive’s post-termination obligations and the Company Group’s post-termination rights under
Sections 8 through 19 of this Agreement and the obligations of the Company Group under Sections 3(f) and (g) and
Sections 5 through 7 shall survive the termination of this Agreement and the termination of Executive’s employment
with the Company regardless of the reason for termination; shall continue in full force and effect in accordance with their terms; and
shall continue to be binding on the parties.

 

    18

     

    

 

22.                
 Independent Advice. Executive acknowledges that the Company has provided Executive with a reasonable opportunity to obtain
independent legal advice with respect to this Agreement and, particularly, to understand and acknowledge the restrictions being placed
on Executive pursuant to Sections 8-15 of this Agreement, and that Executive has had such independent legal advice prior to executing
this Agreement.

 

23.                
Entire Agreement. This Agreement constitutes the entire understanding of the Parties relating to the subject matter
hereof and supersedes all prior agreements, understandings, arrangements, promises and commitments, whether written or oral, express or
implied, relating to the subject matter hereof, and all such prior agreements, understandings, arrangements, promises and commitments
are hereby canceled and terminated.

 

24.                
Amendment. This Agreement may not be amended, supplemented or modified in whole or in part except by an instrument in
writing signed by the Party or Parties against whom enforcement of such amendment, supplement, or modification is sought.

 

25.                
Notices. Any notice, request or other document required or permitted to be given under this Agreement shall be in writing
and shall be deemed given: (a) upon delivery, if delivered by hand; (b) three business (3) days after the date of deposit in the mail,
postage prepaid, if mailed by certified U.S. mail; or (c) on the next business day, if sent by prepaid overnight courier service. If not
personally delivered by hand, notice shall be sent using the addresses set forth below or to such other address as either party may designate
by written notice to the other:

 

If to the Executive: at the
Executive’s most recent address on the records of the Company.

 

with copies (which shall not
constitute notice) to:

 

Greenberg Traurig, P.A.

333 S.E. 2nd Avenue

Miami, FL 33131

Attn: Leanne M. Reagan, Esq.

 

If to the Company, to:

 

JGMT, LLC

1800 NW Corporate Blvd., Suite 200

Boca Raton, FL 33431

Attn: Tobi Lebowitz, Esq.

 

    19

     

    

 

26.                 Code
Section 409A Compliance. It is intended that the provisions of this Agreement are either exempt from or comply with the terms
and conditions of Code Section 409A, and to the extent that the requirements of Code Section 409A are applicable thereto, all
provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under
Code Section 409A. If under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A,
each installment shall be treated as a separate payment. If and to the extent required to comply with Section 409A, no payment or
benefit required to be paid under this Agreement on account of termination of the Executive’s employment shall be made unless
and until the Executive incurs a “separation from service” within the meaning of Section 409A. Executive shall have no
duties following the termination of Executive’s employment with the Company that are inconsistent with Executive having had a
 “separation from service” within the meaning of Section 409A. If the Executive is a “specified employee” (as
determined in accordance with Section 409A), then no payment or benefit that is payable on account of the Executive’s
 “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is
six months after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s
death) if and to the extent that such payment or benefit constitutes deferred compensation under Section 409A and such deferral is
required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentence shall
be paid out or provided in a single lump sum at the end of such required delay period. Notwithstanding anything herein to the
contrary or otherwise, except to the extent any expense, reimbursement or in-kind benefit provided pursuant to this Section does not
constitute a “deferral of compensation” within the meaning of Code Section 409A and the regulations and other guidance
thereunder: (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year
will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar
year; (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day
of the calendar year following the calendar year in which the applicable expense is incurred; (iii) the right to payment or
reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit and (iv) payment of any tax
reimbursements or gross-ups under this Agreement must be made by no later than the end of the taxable year of the Executive
following the taxable year of the Executive in which the Executive remits the related taxes.

 

27.                
Excess Parachute Excise Tax.

 

(a)                  If
any payment or other benefit (including any acceleration of vesting) Executive would receive in connection with any transaction
constituting a 280G Change in Control (which for purposes of this Section 27 shall mean a change in ownership or control
as determined in accordance with the regulations promulgated under Section 280G of the Code) (the “Benefit”)
would (i) constitute a “parachute payment” within the meaning of Code Section 280G, and (ii) but for this sentence, be subject
to the excise tax under Section 4999 (the “Excise Tax”), then the Company shall make a payment to the Executive
(a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including any Excise Tax)
imposed upon the Gross-Up Payment, the Executive retains (or has had paid to the Internal Revenue Service (the “IRS”)
on his behalf) an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Benefit and (y) the product of
any deductions disallowed because of the inclusion of the Gross-Up Payment in the Executive’s adjusted gross income and the highest
applicable marginal rate of federal income taxation for the calendar year in which the Gross-Up Payment is to be made. For purposes of
determining the amount of the Gross-Up Payment, the Executive shall be deemed to (x) pay federal income taxes at the highest marginal
rates of federal income taxation for the calendar year in which the Gross-Up Payment is to be made, and (y) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local taxes.

 

    20

     

    

 

(b)                The
accounting firm engaged by the Company for general audit purposes as of the day
prior to the effective date of the 280G Change in Control shall perform any calculations necessary in connection with this Section
27.  If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity,
or group effecting the 280G Change in Control, the Company shall appoint another qualified accounting firm to make the determinations
required hereunder.  The Company shall bear all expenses with respect to the determinations by such accounting firm required to be
made hereunder.

 

(c)              The
accounting firm engaged to make the determinations under this Section
27 shall provide its calculations, together with detailed supporting documentation, to Executive and the Company
within fifteen (15) calendar days after the date on which Executive’s right to a Benefit is triggered (if requested at that time
by Executive or the Company) or such other time as requested by Executive or the Company. Any Gross-Up Payment, as
determined pursuant to this Section 27, shall be paid by the Company to the Executive within five (5) calendar days of the
receipt of the accounting firm’s determination. If the
accounting firm determines that no Excise Tax is payable with respect to a Benefit, it shall furnish Executive and the Company with an
opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Benefit.  Any good faith determinations
of the accounting firm made hereunder shall be final, binding, and conclusive upon Executive and the Company, except as set forth below.

 

(d)              In
light of the uncertainty in applying Sections 280G and 4999 of the Code, if it is subsequently determined that the Gross-up Payment
is not sufficient to put the Executive in the same after-tax position (taking into account any and all applicable federal, state,
local and foreign income, employment and excise taxes (including the Excise Tax and such taxes imposed on the Gross-up Payment))
that the Executive would have been in if the Executive had not incurred the Excise Tax, then the Company shall promptly pay to or for
the benefit of the Executive such additional amounts necessary to put the Executive in the same after-tax position that the
Executive would have been in if the Excise Tax had not been imposed. In the event that a written ruling of the IRS is obtained by or on
behalf of the Company or the Executive, which provides that the Executive is not required to pay, or is entitled to a refund with respect
to, all or a portion of the Excise Tax, then the Executive shall reimburse the Company in an amount equal to the Gross-up Payment,
less any amounts which remain payable by or are not refunded to the Executive, within thirty (30) days of the date of the IRS determination
or the date the Executive receives the refund, as applicable. The Executive and the Company shall reasonably cooperate with each other
in connection with any administrative or judicial proceedings concerning the existence or amount of liability for the Excise Tax; provided
that, if the Company decides to contest a claim by the IRS relating to the Excise Tax, then the Company shall bear and pay directly or
indirectly all costs and expenses (including any additional interest and penalties and any legal and accounting fees and expenses) incurred
in connection with such action and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax
or income tax, including interest and penalties with respect thereto, imposed as a result of the Company’s action.

 

28.                
Counterparts; Electronic Transmission; Headings. This Agreement may be executed in counterparts, each of which shall
be deemed an original, including an electronic copy or facsimile, but both of which taken together shall constitute one and the same
instrument. The headings used herein are for ease of reference only and shall not define or limit the provisions hereof.

 

    21

     

    

 

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

 

	 	COMPANY:
	 	 
	 	JGMT,
    LLC
	 	 
	 	By:	/s/ Jon Barack

 

	 	Print Name:	Jon Barack

 

	 	Title:	 President

 

	 	PARENT:
	 	 
	 	Jushi
    Holdings Inc.
	 	 
	 	By:	/s/ Jon Barack

 

	 	Print Name:	Jon Barack

 

	 	Title:	President

 

	 	EXECUTIVE:
	 	 
	 	/s/ James
    Cacioppo 
	 	James
    Cacioppo
	 	 
	 	Address:
	 	 
	 	[***]
	 	 
	 	[***]
	 	 
	 	 

 

    22

     

    

 

EXHIBIT A

OUTSIDE ACTIVITIES

 

		1.	Activities (including board positions) related to One East Capital Advisors L.P., its affiliated funds (collectively “One East”)
and any new or derivative funds based upon One East’s historical activities.

 

		2.	Activities (including board positions) related to ST2, LLC or any other real estate development activities in similar entities.

 

		3.	Activities (including board positions) related to Florida Peninsula Insurance Company or its affiliates.

 

     

     

    

 

EXHIBIT B

LTI AWARD VESTING SCHEDULE

 

2021 LTI Award

 

	Cumulative Vesting 

of 2021 LTI 

Award	Vesting Date
	33 1/3%	Grant Date
	66 2/3%	January 1, 2023
	100%	January 1, 2024

 

2022 LTI Award

 

	Cumulative Vesting 

of 2022 LTI 

Award	Vesting Date
	33 1/3%	January 1, 2023
	66 2/3%	January 1, 2024
	100%	January 1, 2025

 

2023 LTI Award

 

	Cumulative Vesting 

of 2023 LTI 

Award	Vesting Date
	50%	January 1, 2024
	100%	January 1, 2025

 

2024 LTI Award

 

	Cumulative Vesting 

of 2024 LTI 

Award	Vesting Date
	50%	January 1, 2025
	100%	January 1, 2026

 

2025 LTI Award

 

	Cumulative Vesting 

of 2025 LTI 

Award	Vesting Date
	100%	January 1, 2026EX-10.1

 Exhibit 10.1 

NORWOOD FINANCIAL CORP 

2014 EQUITY INCENTIVE PLAN 

AS AMENDED 
 1. PURPOSE OF PLAN.

 The purpose of this 2014 Equity Incentive Plan is to provide incentives and rewards to officers, employees and directors who
contribute to the long-term success and growth of Norwood Financial Corp and its Affiliates, and to assist these entities in attracting and retaining directors, officers and other selected employees with the necessary experience and ability required
to aid the Company in increasing the long-term value of the Company for the benefit of its shareholders. 
 2. DEFINITIONS. 

“Affiliate” means any “parent corporation” or “subsidiary corporation” of the Company, as
such terms are defined in Sections 424(e) and 424(f) of the Code, respectively. The term Affiliate shall include the Bank. 

“Award” means any Restricted Stock Award and/or Stock Option, as set forth in Section 6 of the Plan. 

“Bank” means Wayne Bank, Honesdale, Pennsylvania, and any successors thereto. 

“Beneficiary” means the person or persons designated by the Participant to receive any benefits payable under the Plan in the
event of such Participant’s death. Such person or persons shall be designated in writing by the Participant and addressed to the Company or the Committee on forms provided for this purpose by the Committee, and delivered to the Company or the
Committee. Such Beneficiary designation may be changed from time to time by similar written notice to the Committee. A Participant’s last will and testament or any codicil thereto shall not constitute a subsequent written designation of a
Beneficiary. In the absence of such written designation, the Beneficiary shall be the Participant’s surviving spouse, if any, or if none, the Participant’s estate. 

“Board of Directors” means the board of directors of the Company. 

“Cause” means the personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profits,
intentional failure to perform stated duties, willful violation of a material provision of any law, rule or regulation (other than traffic violations and similar offenses), or a material violation of a final cease-and-desist order or any other action which results in a substantial financial loss to the Company or its Affiliates. 

 “Change in Control” shall mean: (i) the sale of all, or a material
portion, of the assets of the Company or its Affiliates; (ii) the merger or recapitalization of the Company whereby the Company is not the surviving entity; (iii) a change in control of the Company, as otherwise defined or determined by
the Company’s applicable banking regulatory agency or regulations promulgated by it; or (iv) the acquisition after the effective date of the Plan, directly or indirectly, of the beneficial ownership (within the meaning of that term as it
is used in Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder) of more than nineteen and nine-tenths percent (19.9%) or more of the outstanding voting securities of the Company by any person, trust, entity or
group. This limitation shall not apply to the purchase of shares by underwriters in connection with a public offering of Company stock. The term “person” refers to an individual or a corporation, partnership, trust, association, joint
venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Committee” means the Board of Directors of the Company or the administrative committee designated, pursuant to
Section 3 of the Plan, to administer the Plan. 
 “Common Stock” or “Shares” means shares of common
stock of the Company. 
 “Company” means Norwood Financial Corp and any successor entity or any future parent corporation
of the Bank. 
 “Director” means a person serving as a member of the Board of Directors of the Company, or the board of
directors of an Affiliate, or any successor thereto from time to time. 
 “Director Emeritus” means a person serving as a
director emeritus, advisory director, consulting director or other similar position as may be appointed by the Board of Directors of the Company or the Bank from time to time. 

“Disability” means (i) with respect to Incentive Stock Options, the “permanent and total disability” of the
Employee as such term is defined at Section 22(e)(3) of the Code; and (ii) with respect to other Awards, a condition of incapacity of a Participant which renders that person unable to engage in the performance of his or her duties by
reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. 

“Effective Date” shall mean the date of stockholder approval of the Plan by the stockholders of the Company. 

“Eligible Participant” means an Employee or Outside Director who may receive an Award under the Plan. 

“Employee” means any person employed by the Company or an Affiliate. Directors who are also employed by the Company or an
Affiliate shall be considered Employees under the Plan. 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
 “Exercise Price” means the price at which an individual may purchase a share of Common Stock pursuant to an
Option. 

 “Fair Market Value” means (i) for a security traded on a national
securities exchange, including the NASDAQ Global Market, the last reported sales price reported on such date or, if the Common Stock was not traded on such date, on the immediately preceding day on which the Common Stock was traded thereon or the
last previous date on which a sale is reported; (ii) if the Shares are not traded on a national securities exchange, but are traded on the over-the-counter market,
if sales prices are not regularly reported for the Shares for the trading day referred to in clause (i), and if bid and asked prices for the Shares are regularly reported, the mean between the bid and the asked price for the Shares at the close of
trading in the over-the-counter market on the applicable date, or if the applicable date is not a trading day, on the trading day immediately preceding the applicable
date; and (iii) in the absence of such markets for the Shares, the Fair Market Value shall be determined in good faith by the Committee. 

“Grant Date” means the date an Award is made by the Committee. 

“Incentive Stock Option” means a Stock Option granted under the Plan, which is intended to meet the requirements of
Section 422 of the Code. 
 “Non-Statutory Stock Option” means a Stock Option
granted to an individual under the Plan that is not intended to be and is not identified as an Incentive Stock Option, or an Option granted under the Plan that is intended to be and is identified as an Incentive Stock Option, but that does not meet
the requirements of Section 422 of the Code. 
 “Option” or “Stock Option” means an Incentive Stock
Option or a Non-Statutory Stock Option, as applicable. 
 “Outside Director” means
a member of the Board of Directors of the Company who is not also an Employee. 
 “Parent” means any present or future
corporation which would be a “parent corporation” of the Bank or the Company as defined in Sections 424(e) and (g) of the Code. 

“Participant” means an individual who is granted an Award pursuant to the terms of the Plan; provided, however, upon the
death of a Participant, the term “Participant” shall also refer to a Beneficiary designated in accordance with the Plan. 

“Plan” means this Norwood Financial Corp 2014 Equity Incentive Plan, as amended. 

“Restricted Stock Award” means an Award of shares of restricted stock granted to a Participant pursuant to
Section 6.1(b) of the Plan. 
 “Trust” shall mean any grantor trust established by the Company for purposes of
administration of the Plan. 
 “Trustee” or “Trustee Committee” means that person(s) or entity appointed
by the Committee to hold legal title to the Plan assets under any Trust for the purposes set forth herein. 

 3. ADMINISTRATION. 
  

	 	(a)	 Committee. The Committee shall administer the Plan. The Committee shall consist of two or more
disinterested directors of the Company, who shall be appointed by the Board of Directors and serve at the pleasure of the Board of Directors. A member of the Board of Directors shall be deemed to be disinterested only if he or she satisfies:
(i) such requirements as the Securities and Exchange Commission may establish for non-employee directors administering plans intended to qualify for exemption under Rule
16b-3 (or its successor) of the Exchange Act and (ii) to the extent deemed appropriate by the Board of Directors, such requirements as the Internal Revenue Service may establish for outside directors
acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code; provided, however, a failure to comply with the requirements of subparagraphs (i) and (ii) shall not disqualify any actions taken by the
Committee. A majority of the entire Committee shall constitute a quorum and the action of a majority of the members present at any meeting at which a quorum is present shall be deemed the action of the Committee. In no event may the Committee revoke
outstanding Awards without the consent of the Participant. All decisions, determinations and interpretations of the Committee shall be final and conclusive on all persons affected thereby. 

 

	 	(b)	 Authority of Committee. Subject to paragraph (a) of this Section 3, the Committee shall:

  

	 	(i)	 select the individuals who are to receive Awards under the Plan; 

 

	 	(ii)	 determine the type, number, vesting requirements, acceleration of vesting and other features and conditions of
Awards made under the Plan; 

  

	 	(iii)	 interpret the Plan and Award Agreements (as defined below); and 

 

	 	(iv)	 make all other decisions and determinations that may be required or as the Committee deems necessary or
advisable related to the operation of the Plan and Awards made thereunder. 

 The Committee may adopt such rules or
guidelines as it deems appropriate to implement the Plan. 
  

	 	(c)	 Awards. Each Award granted under the Plan shall be evidenced by a written agreement (an “Award
Agreement”). Each Award Agreement shall constitute a binding contract between the Company or an Affiliate and the Participant, and every Participant, upon acceptance of an Award Agreement, shall be bound by the terms and restrictions of the
Plan and the Award Agreement. The terms of each Award Agreement shall be set in accordance with the Plan, but each Award Agreement may also include any additional provisions and restrictions determined by the Committee. In particular, and at a
minimum, the Committee shall set forth in each Award Agreement: 

  

	 	(i)	 the type of Award granted; 

 

	 	(ii)	 the Exercise Price for any Option; 

 

	 	(iii)	 the number of shares or rights subject to the Award; 

 

	 	(iv)	 the expiration date of the Award; 

	 	(v)	 the manner, time and rate (cumulative or otherwise) of exercise or vesting of the Award; and

  

	 	(vi)	 the restrictions, if any, placed on the Award, or upon shares which may be issued upon the exercise or vesting
of the Award. 

 The Chairman of the Committee, the President of the Company and such other directors and officers as shall
be designated by the Committee are hereby authorized to execute Award Agreements on behalf of the Company or an Affiliate and to cause them to be delivered to the Participants granted Awards under the Plan. 

 

	 	(d)	 Six-Month Holding Period. Subject to vesting requirements, if
applicable, except in the event of death or Disability of the Participant or a Change in Control of the Company, a minimum of six months must elapse between the Grant Date of an Option and the date of the sale of the Common Stock received through
the exercise of such Option. 

 4. ELIGIBILITY. 

Subject to the terms of the Plan, Employees and Outside Directors, as the Committee shall determine from time to time, shall be eligible to
receive Awards in accordance with the Plan. 
 5. SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS. 

5.1 Shares Available. Subject to the provisions of Section 8, the Common Stock that may be delivered under this Plan shall
be shares of the Company’s authorized but unissued Common Stock, shares of Common Stock purchased in the open-market by the Company or any Trust established for purposes of administration of the Plan and any shares of Common Stock held as
treasury shares. 
 5.2 Share Limits. The maximum number of shares of Common Stock that may be delivered pursuant to Awards
granted under this Plan (the “Share Limit”) equals 475,0001 shares. The following limits also apply with respect to Awards granted under this Plan: 

 

	 	(a)	 The maximum number of shares of Common Stock that may be delivered pursuant to the exercise of Stock Options
granted under this Plan is 475,0001 shares, reduced by the number of Plan shares issued as Restricted Stock Awards. 

 

	 	(b)	 The maximum number of shares of Common Stock that may be delivered pursuant to Restricted Stock Awards granted
under this Plan is 165,0001 shares. 

 5.3 Awards Settled
in Cash, Reissue of Awards and Shares. To the extent that an Award is settled in cash or a form other than shares of Common Stock, or if shares of Common Stock are withheld from an Award for tax purposes, then the shares that would have been
delivered had there been no such cash or other settlement shall be counted against the shares 
 available for issuance under this Plan. Shares that are
subject to or underlie Awards which expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall again be available for subsequent Awards under this Plan.

  

	1 	 Reflects 50% stock dividend declared August, 8, 2017 and an increase in total shares available for issuance
under the plan of 100,000 shares of which not more than 70,000 of these additional shares may be in the form of Restricted Stock Awards; effective as of the date of approval of such plan amendment by the stockholders of the Company.

 5.4 Reservation of Shares; No Fractional Shares; Minimum Issue. The Company
shall at all times reserve a number of shares of Common Stock sufficient to cover the Company’s obligations and contingent obligations to deliver shares with respect to Awards then outstanding under this Plan. No fractional shares shall be
delivered under this Plan. The Committee may pay cash in lieu of any fractional shares in settlement of Awards under this Plan. No fewer than 100 shares may be purchased on exercise of any Stock Option unless the total number purchased or exercised
is the total number at the time available for purchase or exercise by the Participant. 
 6. AWARDS. 

6.1 Except as otherwise detailed herein, the Committee shall determine the type or types of Award(s) to be made to each Eligible
Participant. Awards may be granted singularly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or
compensation plan of the Company. The types of Awards that may be granted under this Plan are Stock Options and Restricted Stock Awards, as follows: 
  

	 	(a)	 Stock Options. 

The Committee may, subject to the limitations of this Plan and the availability of shares of Common Stock reserved but not previously awarded
under the Plan, grant Stock Options to Employees and Outside Directors, subject to terms and conditions as it may determine, to the extent that such terms and conditions are consistent with the following provisions: 

 

	 	(i)	 Exercise Price. The Exercise Price of Stock Options shall not be less than one hundred percent (100%) of
the Fair Market Value of the Common Stock on the Grant Date. 

  

	 	(ii)	 Terms of Options. In no event may an individual exercise an Option, in whole or in part, more than ten
(10) years from the Grant Date. 

  

	 	(iii)	 Non-Transferability. Unless otherwise determined by the
Committee, an individual may not transfer, assign, hypothecate, or dispose of an Option in any manner, other than by will or the laws of intestate succession. The Committee may, however, in its sole discretion, permit the transfer or assignment of a
Non-Statutory Stock Option, if it determines that the transfer or assignment is for valid estate planning purposes and is permitted under the Code and Rule 16b-3 of the
Exchange Act. For purposes of this Section 6.1(a), a transfer for valid estate planning purposes includes, but is not limited to, transfers: 

  

	 	(1)	 to a revocable inter vivos trust, as to which an individual is both settlor and trustee;

	 	(2)	 for no consideration to: (a) any member of the individual’s Immediate Family; (b) a trust solely
for the benefit of members of the individual’s Immediate Family; (c) any partnership whose only partners are members of the individual’s Immediate Family; or (d) any limited liability corporation or other corporate entity whose
only members or equity owners are members of the individual’s Immediate Family. 

 For purposes of this
Section 6.1, “Immediate Family” includes, but is not necessarily limited to, a Participant’s parents, grandparents, spouse, children, grandchildren, siblings (including half brothers and sisters), and individuals who are family
members by adoption. Nothing contained in this Section 6.1 shall be construed to require the Committee to give its approval to any transfer or assignment of any Non-Statutory Stock Option or portion
thereof, and approval to transfer or assign any Non-Statutory Stock Option or portion thereof does not mean that such approval will be given with respect to any other
Non-Statutory Stock Option or portion thereof. The transferee or assignee of any Non-Statutory Stock Option shall be subject to all of the terms and conditions
applicable to such Non-Statutory Stock Option immediately prior to the transfer or assignment and shall be subject to any other conditions prescribed by the Committee with respect to such Non-Statutory Stock Option. 
  

	 	(iv)	 Special Rules for Incentive Stock Options. Notwithstanding the foregoing provisions, the following rules
shall further apply to grants of Incentive Stock Options: 

  

	 	(1)	 If an Employee owns or is treated as owning, for purposes of Section 422 of the Code, Common Stock
representing more than ten percent (10%) of the total combined voting securities of the Company at the time the Committee grants the Incentive Stock Option (a “10% Owner”), the Exercise Price shall not be less than one hundred and ten
percent (110%) of the Fair Market Value of the Common Stock on the Grant Date. 

  

	 	(2)	 An Incentive Stock Option granted to a 10% Owner shall not be exercisable more than five (5) years from
the Grant Date. 

  

	 	(3)	 To the extent the aggregate Fair Market Value of shares of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by an Employee during any calendar year, under the Plan or any other stock option plan of the Company or an Affiliate, exceeds $100,000, or such higher value as may be permitted under Section 422 of
the Code, such Incentive Stock Options in excess of the $100,000 limit shall be treated as Non-Statutory Stock Options. Fair Market Value shall be determined as of the Grant Date for each Incentive Stock Option. 

	 	(4)	 Each Award Agreement for an Incentive Stock Option shall require the individual to notify the Committee within
ten (10) days of any disposition of shares of Common Stock under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions). 

 

	 	(5)	 Incentive Stock Options may only be awarded to an Employee of the Company or its Affiliates.

  

	 	(v)	 Option Awards to Outside Directors. Subject to the limitations of Section 6.4(a), the Committee may
award Non-Statutory Stock Options to purchase shares of Common Stock to any Outside Director of the Company at an Exercise Price equal to the Fair Market Value of the Common Stock on such Grant Date. Such
Options will be first exercisable as determined by the Committee at the time of such grant, but in no case more quickly than at the rate of 100% on the one-year anniversary of the Grant Date of such Award
during periods of continuing service as an Outside Director or Director Emeritus. Options awarded to Outside Directors that become earned and exercisable shall continue to be exercisable for a period of ten years following the Grant Date without
regard to the continued services of such Outside Director to the Company. Upon the death or Disability of the Outside Director, such Option shall be deemed exercisable as if the Outside Director had attained the next applicable vesting event and
shall continue to be exercisable for the remaining term of such Option. In the event of the Outside Director’s death, such Options may be exercised by the Beneficiary or the personal representative of his or her estate or person or persons to
whom his or her rights under such Option shall have passed by will or by the laws of descent and distribution. Options may be granted to newly appointed or elected Outside Directors within the sole discretion of the Committee. All outstanding Awards
shall become immediately exercisable in the event of a Change in Control of the Bank or the Company. Unless otherwise inapplicable, or inconsistent with the provisions of this paragraph, the Options to be granted to Outside Directors hereunder shall
be subject to all other provisions of this Plan. 

  

	 	(b)	 Restricted Stock Awards. 

The Committee may make grants of Restricted Stock Awards, which shall consist of the grant of some number of shares of Common Stock to an
Eligible Participant upon such terms and conditions as it may determine, to the extent such terms and conditions are consistent with the following provisions: 
  

	 	(i)	 Grants of Stock. Restricted Stock Awards may only be granted in whole shares of Common Stock.

	 	(ii)	 Non-Transferability. Except to the extent permitted by the Code,
the rules promulgated under Section 16(b) of the Exchange Act or any successor statutes or rules: 

  

	 	(1)	 The recipient of a Restricted Stock Award grant shall not sell, transfer, assign, pledge, or otherwise encumber
shares subject to the grant until full vesting of such shares has occurred. For purposes of this Section 6.1(b), the separation of beneficial ownership and legal title through the use of any “swap” transaction is deemed to be a
prohibited encumbrance. 

  

	 	(2)	 Unless otherwise determined by the Committee, and except in the event of the Participant’s death or
pursuant to a qualified domestic relations order, a Restricted Stock Award grant is not transferable and may be earned only by the individual to whom it is granted during his or her lifetime. Upon the death of a Participant, a Restricted Stock Award
shall be transferred to the Beneficiary. The designation of a Beneficiary shall not constitute a transfer. 

  

	 	(3)	 If the recipient of a Restricted Stock Award is subject to the provisions of Section 16 of the Exchange
Act, shares of Common Stock subject to the grant may not, without the written consent of the Committee (which consent may be given in the Award Agreement), be sold or otherwise disposed of within six (6) months following the Grant Date.

  

	 	(iii)	 Issuance of Certificates. The Committee shall take such action as is reasonably necessary for the
issuance of shares of Common Stock to be issued pursuant to a Restricted Stock Award prior to the time that such Award shall be deemed earned and non-forfeitable, with such stock certificate evidencing such
shares registered in the name of the Participant to whom the Restricted Stock Award was granted; provided, however, that the Company may not cause a stock certificate to be issued unless it has received a stock power duly endorsed in blank with
respect to such shares. Further, each such stock certificate shall bear the following legend: 

 THE TRANSFERABILITY OF
THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE RESTRICTIONS, TERMS AND CONDITIONS (INCLUDING FORFEITURE PROVISIONS AND RESTRICTIONS AGAINST TRANSFER) CONTAINED IN THE NORWOOD FINANCIAL CORP 2014 EQUITY INCENTIVE PLAN
AND THE RELATED AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER OF SUCH SHARES AND NORWOOD FINANCIAL CORP THE PLAN AND AWARD AGREEMENT ARE ON FILE IN THE OFFICE OF THE CORPORATE SECRETARY OF NORWOOD FINANCIAL CORP. 

 This legend shall not be removed until the Award becomes earned and non-forfeitable pursuant to the terms of the Plan and respective Award Agreement. Each certificate issued pursuant to this Section 6.1(b) shall be held by the Company or its Affiliates as custodian, unless the
Committee determines otherwise. 
  

	 	(iv)	 Treatment of Dividends. Participants are entitled to all dividends and other distributions declared and
paid on all shares of Common Stock subject to a Restricted Stock Award from and after the Grant Date of such Restricted Stock Award. Such dividends and other distributions shall be distributed to the holder of such Restricted Stock Award within 30
days of the payment date applicable to such distributions declared and paid with respect to the Common Stock; provided that in the event of the forfeiture of such Restricted Stock Award, all future dividend rights shall cease. 

 

	 	(v)	 Voting Rights Associated with Restricted Stock Awards. Voting rights associated with any Restricted
Stock Award shall not be exercised by the Participant until certificates of Common Stock representing such Award have been issued to such Participant and the Restricted Stock Award shall be deemed earned and
non-forfeitable. Any shares of Common Stock held by the Company or the Trust prior to such time shall be voted by the Company or the Trustee of such Trust, as applicable, as directed by the Committee. Any
shares of Common Stock held by the Company after a Restricted Stock Award has been made, but prior to such time that such award has become earned and non-forfeitable, shall be voted by the Committee in
accordance with the stock power held by the Company applicable to such Awards. 

  

	 	(vi)	 Restricted Stock Awards to Outside Directors. Notwithstanding anything herein to the contrary, the
Committee may grant a Restricted Stock Award consisting of shares of Common Stock to any Outside Director of the Company. Such Award shall be earned and non-forfeitable as determined by the Committee at the
time of grant, but in no case more quickly than at the rate of 100% on the one-year anniversary of the Grant Date of such Award during periods of continuing service as an Outside Director or Director Emeritus.
Upon the death or Disability of the Outside Director, such Award shall be deemed earned and non-forfeitable as if the Outside Director had attained the next applicable vesting event. Such Award shall be
immediately 100% earned and non-forfeitable upon a Change in Control of the Company or the Bank. Restricted Stock Awards may be granted to newly elected or appointed Outside Directors within the discretion of
the Committee, provided that the total Restricted Stock Awards granted to Outside Directors shall not exceed the limitations set forth at Section 6.4(b) herein. 

 6.2 Award Payouts. Awards may be paid out in the form of cash, Common Stock,
or combinations thereof as the Committee shall determine in its sole discretion, and with such restrictions as it may impose. 
 6.3
Consideration for Stock Options. The Exercise Price for any Stock Option granted under this Plan may be paid by means of any lawful consideration as determined by the Committee, including, without limitation, one or a combination of the
following methods: 
  

	 	(a)	 cash, check payable to the order of the Company, or electronic funds transfer; 

 

	 	(b)	 the delivery of previously owned shares of Common Stock; or 

 

	 	(c)	 subject to such procedures as the Committee may adopt, pursuant to a “cashless exercise” with a third
party who provides financing for the purposes of (or who otherwise facilitates) the purchase or exercise of such Stock Option. 

 In no
event shall any shares newly-issued by the Company be issued for less than the minimum lawful consideration for such shares or for consideration other than consideration permitted by applicable state law. In the event that the Committee allows a
Participant to exercise an Option by delivering shares of Common Stock previously owned by such Participant, any such shares delivered which were initially acquired by the Participant from the Company (upon exercise of a stock option or otherwise)
must have been owned by the Participant for at least six months prior to such date of delivery. Shares of Common Stock used to satisfy the Exercise Price of an Option shall be valued at their Fair Market Value on the date of exercise. The Company
will not be obligated to deliver any shares unless and until it receives full payment of the Exercise Price and any related withholding obligations under Section 9.5 have been satisfied, or until any other conditions applicable to exercise or
purchase have been satisfied. No shares of Common Stock shall be issued until full payment has been received by the Company, and no Participant shall have any of the rights of a stockholder of the Company until shares of Common Stock are issued upon
the exercise of such Stock Options. Unless expressly provided otherwise in the applicable Award Agreement, the Committee may at any time within its sole discretion eliminate or limit a Participant’s ability to pay the purchase or Exercise Price
of any Award by any method other than a cash payment to the Company. 
 6.4 Limitations on Awards. 

 

	 	(a)	 Stock Option Award Limitations. During the ten-year period
following the Effective Date (and in any single calendar year), Shares subject to Options granted to Outside Directors in the aggregate under this Plan shall not exceed 100,000 Shares representing approximately 21% of the total number of
Shares authorized for delivery under this Plan pursuant to Section 5.2(a) with respect to Stock Options or exceed 2% of such Shares to any individual Outside Director. During the ten-year period following
the Effective Date (and in any single calendar year), the aggregate number of Shares subject to Options granted to any single Employee shall not exceed 25% of the total number of Shares authorized for delivery under the Plan pursuant to
Section 5.2(a) herein. Notwithstanding anything herein to the contrary, effective on and after January 1, 2022, not more than 2,000 Shares subject to Options may be granted to any single Outside Director in any single calendar year, and
not more than 10,000 Shares subject to Options may be granted to any single Employee in any single calendar year. 

	 	(b)	 Restricted Stock Award Limitations. During the ten-year period
following the Effective Date (and in any single calendar year), Shares subject to Restricted Stock Awards granted to Outside Directors in the aggregate under this Plan shall not exceed 62,300 Shares or approximately 38% of the total number of
Shares authorized for delivery under this Plan pursuant to Section 5.2(b) with respect to Restricted Stock Awards or exceed 9.3% to any individual Outside Director. Further, Restricted Stock Awards granted to any individual Outside Director
will not exceed 700 shares in any calendar year. During the ten-year period following the Effective Date (and in any single calendar year), the aggregate number of Shares subject to Restricted Stock Awards
granted to any single Employee shall not exceed 25% of the total number of Shares authorized for delivery under the Plan pursuant to Section 5.2(b) herein. Notwithstanding anything herein to the contrary, effective on and after January 1,
2022, a Restricted Stock Award consisting of not more than 10,000 shares of Company Common Stock may be granted to any single Employee in any single calendar year. 

 

	 	(c)	 Vesting of Awards. Except as otherwise provided by the terms of the Plan or by action of the Committee
at the time of the grant of an Award, Stock Options will be first exercisable at the rate of 100% of such Award on the one-year anniversary of the Grant Date during such periods of continued service as an
Employee, Outside Director or Director Emeritus, as applicable, and Restricted Stock Awards will be earned and non-forfeitable at the rate of 20% of such Award on the
one-year anniversary of the Grant Date and 20% annually thereafter during such periods of continued service as an Employee, Outside Director or Director Emeritus, as applicable. Notwithstanding the foregoing,
Awards will not be earned and non-forfeitable more quickly than at the rate of 100% of such award on the one-year anniversary of the Grant Date of such Award, except in
the event of the death or Disability of the Participant or a Change in Control transaction occurring after the Grant Date of such Award. 

7. EFFECT OF TERMINATION OF SERVICE ON AWARDS. 

7.1 General. The Committee shall establish the effect of a termination of employment or service, death or Disability on the
continuation of rights and benefits available under an Award, and, in so doing, may make distinctions based upon, among other things, the recipient of such Award, the cause of termination and the type of the Award. Notwithstanding the foregoing, the
terms of Awards shall be consistent with the following, as applicable: 
  

	 	(a)	 Termination of Employment or Service. In the event that any Employee Participant’s employment with
the Company or an Affiliate shall terminate for any reason, other than Disability or death, all of any such Participant’s Stock Options, and all of any such Participant’s rights to purchase or receive shares of Common Stock pursuant
thereto, shall automatically terminate (A) on the earlier of: (i) the respective expiration dates of any such Stock Options, or (ii) the expiration of three (3) months after the date of such termination of employment; or
(B) at such later date as is determined by the Committee at the time of the grant 

	 	
of such Award based upon the Participant’s continuing status as a Director or Director Emeritus of the Bank or the Company, but only if, and to the extent that, the Participant was otherwise
entitled to exercise any such Stock Options at the date of such termination of employment or service, and further that such Stock Options shall thereafter be deemed Non-Statutory Stock Options.

  

	 	(b)	 Disability. In the event that any Employee Participant’s employment with the Company shall
terminate as the result of the Disability of such Participant, such Participant may exercise any Stock Options previously granted to the Participant pursuant to the Plan at any time prior to the earlier of (i) the respective expiration dates of
any such Stock Options, or (ii) the date which is one (1) year after the date of such termination of employment, but only if, and to the extent that, the Participant was entitled to exercise any such Stock Options at the date of such
termination of employment or would have been eligible to exercise such Award had they continued employment through the date of the next applicable vesting event. 

 

	 	(c)	 Death. In the event of the death of an Employee Participant, any Stock Options previously granted to
such Participant may be exercised by the Participant’s Beneficiary or the person or persons to whom the Participant’s rights under any such Incentive Stock Options pass by will or by the laws of descent and distribution (including the
Participant’s estate during the period of administration) at any time prior to the earlier of (i) the respective expiration dates of any such Stock Options, or (ii) the date which is two (2) years after the date of death of such
Participant, but only if, and to the extent that, the Participant was entitled to exercise any such Stock Options at the date of death or would have been eligible to exercise such Award had they continued employment through the date of the next
applicable vesting event. At the discretion of the Committee, upon exercise of such Options, the Beneficiary may receive Shares or cash or a combination thereof. If cash shall be paid in lieu of shares of Common Stock, such cash shall be equal to
the difference between the Fair Market Value of such Shares and the exercise price of such Options on the exercise date. 

7.2 Events Not Deemed Terminations of Employment or Service. Unless the Company’s policy or the Committee provides
otherwise, the employment or service relationship shall not be considered terminated in the case of (a) sick leave, (b) military leave, (c) any other leave of absence authorized by the Company or the Committee; provided that, unless
reemployment upon the expiration of such leave is guaranteed by contract or law, such leave is for a period of not more than 90 days, or (d) in the case of transfers between payroll locations or between the Company, an Affiliate or a successor.
In the case of any Employee on an approved leave of absence, continued vesting of the Award while on leave may be suspended until the Employee returns to service, unless the Committee otherwise provides or applicable law otherwise requires. In no
event shall an Award be exercised after the expiration of the term set forth in the Award Agreement. 
 7.3 Effect of Change of
Affiliate Status. For purposes of this Plan and any Award, if an entity ceases to be an Affiliate of the Company, a termination of employment or service shall be deemed to have occurred with respect to each individual who does not continue as an
Employee or Outside Director with the Company or another Affiliate after giving effect to the Affiliate’s change in status. 

	 	8.	 ADJUSTMENTS IN CAPITAL STRUCTURE; ACCELERATION UPON A CHANGE IN CONTROL. 

8.1 Adjustments in Capital Structure. Upon any reclassification, recapitalization, stock split (including a stock split in the
form of a stock dividend) or reverse stock split; any merger, combination, consolidation, or other reorganization; any spin-off, split-up, or similar extraordinary
dividend distribution with respect to the Common Stock (whether in the form of securities or property); any exchange of Common Stock or other securities of the Company, or any similar, unusual or extraordinary corporate transaction affecting the
Common Stock; or a sale of all or substantially all the business or assets of the Company in its entirety; then the Committee shall proportionately adjust the Plan and the Awards thereunder in such manner, to such extent and at such times, as is
necessary to preserve the benefits or potential benefits of such Awards, including: 
  

	 	(a)	 proportionately adjust any or all of: (1) the number and type of shares of Common Stock (or other
securities) that thereafter may be made the subject of Awards (including the specific Share Limits, maximums and numbers of shares set forth elsewhere in this Plan); (2) the number, amount and type of shares of Common Stock (or other securities or
property) subject to any or all outstanding Awards; (3) the grant, purchase, or Exercise Price of any or all outstanding Awards; (4) the securities, cash or other property deliverable upon exercise or payment of any outstanding Awards; or
(5) the performance standards applicable to any outstanding Awards; or 

  

	 	(b)	 make provision for a cash payment or for the assumption, substitution or exchange of any or all outstanding
Awards, based upon the distribution or consideration payable to holders of the Common Stock. 

 8.2 The Committee
may adopt such valuation methodologies for outstanding Awards as it deems reasonable in the event of a cash or property settlement and, in the case of Options, may base such settlement solely upon the excess, if any, of the per share amount payable
upon or in respect of such event over the Exercise Price or base price of the Award. With respect to any Award of an Incentive Stock Option, the Committee may make an adjustment that causes the Option to cease to qualify as an Incentive Stock Option
without the consent of the affected Participant. 
 8.3 Upon any of the events set forth in Section 8.1, the Committee may take
such action prior to such event to the extent that the Committee deems the action necessary to permit the Participant to realize the benefits intended to be conveyed with respect to the Awards in the same manner as is or will be available to
stockholders of the Company generally. In the case of any stock dividend, stock split or reverse stock split, if no action is taken by the Committee, the proportionate adjustments contemplated by Section 8.1(a) above shall nevertheless be made.

 8.4 Automatic Acceleration of Awards. Unless otherwise determined by the
Committee at the time of the Award, upon a Change in Control of the Company or the Bank, each Stock Option then outstanding shall become fully earned and exercisable and remain exercisable for its remaining term and all Restricted Stock Awards then
outstanding shall be deemed fully earned and non-forfeitable and be free of restrictions. The Committee may, in its sole discretion, determine that in the event of a Change in Control each outstanding Stock
Option shall be cancelled in exchange for a cash payment equal to the difference between the Fair Market Value of the Common Stock on the date of the Option cancellation and the Exercise Price per share of the Option, in accordance with
Section 9.7(i) herein. 
 8.5 Acceleration of Vesting. The Committee shall at all times have the power to accelerate the
exercise date of Options and the date that Restricted Stock Awards shall be earned and non-forfeitable with respect to previously granted Awards; provided that such action is not contrary to regulations of the
Company’s applicable banking regulatory agency then in effect. 
 9. MISCELLANEOUS PROVISIONS. 

9.1 Compliance with Laws. This Plan, the granting and vesting of Awards under this Plan, the offer, issuance and delivery of
shares of Common Stock, the acceptance of payment of money under this Plan or under Awards are subject to compliance with all applicable federal and state laws, rules and regulations (including, but not limited to, state and federal securities laws)
and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. The person acquiring any securities under this Plan will, if requested
by the Company, provide such assurances and representations to the Company as may be deemed necessary or desirable to assure compliance with all applicable legal and accounting requirements. 

9.2 Claims. No person shall have any claim or rights to an Award (or additional Awards, as the case may be) under this Plan,
subject to any express contractual rights to the contrary (set forth in a document other than this Plan). 
 9.3 No
Employment/Service Contract. Nothing contained in this Plan (or in any other documents under this Plan or in any Award Agreement) shall confer upon any Participant any right to continue in the employ or other service of the Company, constitute
any contract or agreement of employment or other service or affect an Employee’s status as an employee-at-will, nor interfere in any way with the right of the
Company to change a Participant’s compensation or other benefits, or terminate his or her employment or other service, with or without cause. Nothing in this Section 9.3, however, is intended to adversely affect any express independent
right of such Participant under a separate employment or service contract other than an Award Agreement. 
 9.4 Plan Not Funded.
Awards payable under this Plan shall be payable in shares of Common Stock or from the general assets of the Company. No Participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset
(including shares of Common Stock, except as expressly provided otherwise) of the Company by reason of any Award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action
taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company and any Participant, Beneficiary or other person. Notwithstanding the foregoing, the Company
may establish a Trust in accordance with Section 10 with respect to Awards made in accordance with Section 6.1(b) herein. To the extent that a Participant, Beneficiary or other person acquires a right to receive payment pursuant to any
Award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended. 

 9.5 Tax Matters; Tax Withholding. 

 

	 	(a)	 Tax Withholding. Upon any exercise, vesting, or payment of any Award, the Company shall have the right,
within its sole discretion, to: 

  

	 	(i)	 require the Participant (or the Participant’s personal representative or Beneficiary, as the case may be)
to pay or provide for payment of at least the minimum amount of any taxes which the Company may be required to withhold with respect to such Award or payment; 

 

	 	(ii)	 deduct from any amount otherwise payable in cash to the Participant (or the Participant’s personal
representative or Beneficiary, as the case may be) the minimum amount of any taxes which the Company may be required to withhold with respect to such cash payment; or 

 

	 	(iii)	 in any case where tax withholding is required in connection with the delivery of shares of Common Stock under
this Plan, pursuant to such rules and subject to such conditions as the Committee may establish, reduce the number of shares to be delivered to the Participant by the appropriate number of shares, valued in a consistent manner at their Fair Market
Value as necessary to satisfy the minimum applicable withholding obligation. In no event shall the shares withheld exceed the minimum whole number of shares required for tax withholding under applicable law. 

 

	 	(b)	 Required Notification of Section 83(b) Election. In the event a Participant makes an
election under Section 83(b) of the Code in connection with an Award, the Participant shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue Service or other governmental authority,
in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code or other applicable provision. 

  

	 	(c)	 Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the
Code. If any Participant shall make any disposition of shares of Common Stock delivered pursuant to the exercise of Incentive Stock Options under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying
dispositions), such Participant shall notify the Company of such disposition within ten (10) days thereof. 

 9.6
Effective Date; Termination and Suspension; Approval; Amendments. 
  

	 	(a)	 Effective Date and Termination. This Plan is effective upon the later of approval of the Plan by the
Board of Directors of the Company or the vote of approval by the stockholders of the Company (“Approval Date”). Unless earlier terminated by the Board, this Plan shall terminate at the close of business on the day preceding the tenth
anniversary of the Approval Date. After the termination of this Plan either upon such stated expiration date or its earlier termination by the Board, no additional Awards may be granted under this Plan, but previously granted Awards (and the
authority of the Committee with respect thereto, including the authority to amend such Awards) shall remain outstanding in accordance with their applicable terms and conditions and the terms and conditions of this Plan. 

	 	(b)	 Board of Directors Authorization. Subject to applicable laws and regulations, the Board of Directors
may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in part; provided, however, that no such amendment may have the effect of repricing the Exercise Price of Options, except if such action is approved
by a vote of stockholders. No Awards may be granted during any period that the Board of Directors suspends this Plan. 

  

	 	(c)	 Stockholder Approval. Stockholder approval of such Plan shall be determined by an affirmative vote of a
majority of the votes cast on the matter at a meeting of stockholders of the Company within one year of the date of adoption of the Plan by the Board of Directors of the Company. Any material amendment to the Plan deemed to require an approval vote
of stockholders shall be approved by an affirmative vote of a majority of the votes cast on the matter at a meeting of stockholders of the Company. 

  

	 	(d)	 Limitations on Amendments to Plan and Awards. No amendment, suspension or termination of this Plan or
change affecting any outstanding Award shall, without the written consent of the Participant, affect in any manner materially adverse to the Participant any rights or benefits of the Participant or obligations of the Company under any Award granted
under this Plan prior to the effective date of such change. Changes, settlements and other actions contemplated by Section 8 shall not be deemed to constitute changes or amendments for purposes of this Section 9.6. Notwithstanding any
provision in this Plan or any Award Agreement to the contrary, the Committee may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of (i) conforming the Plan or the
Award Agreement to any present or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), or (ii) avoiding an accounting treatment resulting from an accounting pronouncement or
interpretation thereof issued by the Securities and Exchange Commission or Financial Accounting Standards Board subsequent to the adoption of the Plan or the making of the Award affected thereby, which in the sole discretion of the Committee, may
materially and adversely affect the financial condition or results of operations of the Company. By accepting an Award under this Plan, each Participant agrees and consents to any amendment made pursuant to this Section 9.6 or Section 9.11
herein with respect to any Award granted under this Plan without further consideration, consent or action. 

  

	 	9.7	 Governing Law; Compliance with Regulations; Construction; Severability. 

 

	 	(a)	 Construction. This Plan, the Awards, all documents evidencing Awards and all other related documents
shall be governed by, and construed in accordance with the laws of the Commonwealth of Pennsylvania, except to the extent preempted by Federal law. 

	 	(b)	 Forfeiture of Awards in Certain Circumstances. In addition to any forfeiture or reimbursement conditions
the Committee may impose upon an Award, a Participant may be required to forfeit an Award, or reimburse the Company for the value of a prior Award, by virtue of the requirement of Section 304 of the Sarbanes-Oxley Act of 2002 (or by virtue of
any other applicable statutory or regulatory requirement), but only to the extent that such forfeiture or reimbursement is required by such statutory or regulatory provision. Unless otherwise determined by the Committee, in the event of a forfeiture
of an Award with respect to which a Participant paid cash consideration, the Participant shall be repaid the amount of such cash consideration. 

  

	 	(c)	 Severability. If a court of competent jurisdiction holds any provision invalid and unenforceable, the
remaining provisions of this Plan shall continue in effect. 

  

	 	(d)	 Section 16 of Exchange Act. It is the intent of the Company that the Awards and
transactions permitted by Awards be interpreted in a manner that, in the case of Participants who are or may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent compatible with the express terms of the Award, for
exemption from matching liability under Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the foregoing, the Company shall have no liability to any Participant for Section 16 consequences of
Awards or events affecting Awards if an Award or event does not so qualify. 

  

	 	(e)	 Compliance with Federal Securities Law. Shares of Common Stock shall not be issued with respect to any
Award granted under the Plan unless the issuance and delivery of such shares shall comply with all relevant provisions of applicable law, including, without limitation, the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, any applicable state securities laws and the requirements of any stock exchange upon which the shares may then be listed. 

  

	 	(f)	 Necessary Approvals. The inability of the Company to obtain any necessary authorizations, approvals or
letters of non-objection from any regulatory body or authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares of Common Stock issuable hereunder shall
relieve the Company of any liability with respect to the non-issuance or sale of such shares. 

  

	 	(g)	 Representations and Warranties of Participants. As a condition to the exercise of any Option or the
delivery of shares in accordance with an Award, the Company may require the person exercising the Option or receiving delivery of the shares to make such representations and warranties as may be necessary to assure the availability of an exemption
from the registration requirements of federal or state securities law. 

	 	(h)	 Termination for Cause. Notwithstanding anything herein to the contrary, upon the termination of
employment or service of a Participant by the Company or an Affiliate for “Cause” as determined by the Board of Directors or the Committee, all Awards held by such Participant which have not yet been delivered shall be forfeited by such
Participant as of the date of such termination of employment or service. 

  

	 	(i)	 Cash Payment in Lieu of Delivery of Shares. Upon the exercise of an Option, the Committee, in its sole
and absolute discretion, may make a cash payment to the Participant, in whole or in part, in lieu of the delivery of shares of Common Stock. Such cash payment to be paid in lieu of delivery of Common Stock shall be equal to the difference between
the Fair Market Value of the Common Stock on the date of the Option exercise and the Exercise Price per share of the Option. Such cash payment shall be in exchange for the cancellation of such Option. Such cash payment shall not be made in the event
that such transaction would result in liability to the Participant or the Company under Section 16(b) of the Exchange Act and regulations promulgated thereunder, or subject the Participant to additional tax liabilities related to such cash
payments pursuant to Section 409A of the Code. 

 9.8 Captions. Captions and headings are given to the
sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof. 

9.9 Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the
authority of the Board of Directors or the Committee to grant Awards or authorize any other compensation, with or without reference to Common Stock, under any other plan or authority. 

9.10 Limitation on Liability. No Director, member of the Committee or the Trustee shall be liable for any determination made in
good faith with respect to the Plan, the Trust or any Awards granted. If a Director, member of the Committee or the Trustee is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative, by any reason of anything done or not done by him or her in such capacity under or with respect to the Plan, the Company shall indemnify such person against expenses (including attorney’s fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in the best
interests of the Company and its Affiliates and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. 

9.11 Section 409A Compliance. To the extent that any Award is determined to constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the Committee from time to time in order to comply with
Section 409A of the Code. In this regard, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A of the Code) to a Participant who is then considered a “specified
employee” (within the meaning of Section 409A of the Code), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the 

 
Participant’s separation from service, or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest,
penalties and/or additional tax imposed pursuant to Section 409A of the Code. Further, the settlement of any such 409A Award may not be accelerated except to the extent permitted by Section 409A of the Code. To the extent that an Award is
deemed to constitute a 409A Award, and for which payment with respect to the Award or acceleration of such Award being deemed earned and exercisable or non-forfeitable is determined solely by reference to
whether a Change in Control has occurred, the term “Change in Control” means (for purposes of determining whether a payment is due or acceleration exists) the first to occur of a “change in the ownership of the Company,” a
“change in the effective control of the Company” or a “change in the ownership of a substantial portion of the Company’s assets,” as those phrases are determined under Section 409A of the Code and the regulations
promulgated thereunder, as in effect at the time of such Change in Control transaction. 
 9.12 Successors. Any obligations of
the Company or an Affiliate under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company or Affiliate, respectively, whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company or Affiliate, as applicable. 
 10. TRUST.

 10.1 Activities of Trustee. The Trustee(s) shall receive, hold, administer, invest and make distributions and
disbursements from the Trust in accordance with the provisions of the Plan and the applicable directions, rules, regulations, procedures and policies established by the Committee pursuant to the Plan. 

10.2 Management of Trust. It is the intention of this Plan that the Trustee shall have complete authority and discretion with
respect to the management, control and investment of the Trust, and that the Trustee shall invest all assets of the Trust, except those attributable to cash dividends paid with respect to unearned and unawarded Restricted Stock Awards, in Common
Stock to the fullest extent practicable, except to the extent that the Trustee determines that the holding of monies in cash or cash equivalents is necessary to meet the obligations of the Trust. In performing their duties, the Trustees shall have
the power to do all things and execute such instruments as may be deemed necessary or proper, including the following powers: 
  

	 	(a)	 To invest up to one hundred percent (100%) of all Trust assets in Common Stock without regard to any law now or
hereafter in force limiting investments for Trustees or other fiduciaries. The investment authorized herein may constitute the only investment of the Trust, and in making such investment, the Trustee is authorized to purchase Common Stock from the
Company or from any other source, and such Common Stock so purchased may be outstanding, newly issued, or treasury shares. 

  

	 	(b)	 To invest any Trust assets not otherwise invested in accordance with (a) above in such deposit accounts,
and certificates of deposit (including those issued by the Bank), obligations of the United States government or its agencies or such other investments as shall be considered the equivalent of cash. 

	 	(c)	 To sell, exchange or otherwise dispose of any property at any time held or acquired by the Trust.

  

	 	(d)	 To cause stocks, bonds or other securities to be registered in the name of a nominee, without the addition of
words indicating that such security is an asset of the Trust (but accurate records shall be maintained showing that such security is an asset of the Trust). 

  

	 	(e)	 To hold cash without interest in such amounts as may be in the opinion of the Trustee reasonable for the proper
operation of the Plan and Trust. 

  

	 	(f)	 To employ brokers, agents, custodians, consultants and accountants. 

 

	 	(g)	 To hire counsel to render advice with respect to their rights, duties and obligations hereunder, and such other
legal services or representation as they may deem desirable. 

  

	 	(h)	 To hold funds and securities representing the amounts to be distributed to a Participant or his Beneficiary as
a consequence of a dispute as to the disposition thereof, whether in a segregated account or held in common with other assets. 

  

	 	(i)	 As may be directed by the Committee or the Board of Directors from time to time, the Trustee shall pay to the
Company any earnings of the Trust attributable to unawarded or forfeited Restricted Stock Awards. 

 Notwithstanding
anything herein contained to the contrary, the Trustee shall not be required to make any inventory, appraisal or settlement or report to any court, or to secure any order of a court for the exercise of any power herein contained, or to maintain
bond. 
 10.3 Records and Accounts. The Trustee shall maintain accurate and detailed records and accounts of all transactions
of the Trust, which shall be available at all reasonable times for inspection by any legally entitled person or entity to the extent required by applicable law, or any other person determined by the Committee. 

10.4 Earnings. All earnings, gains and losses with respect to Trust assets shall be allocated in accordance with a reasonable
procedure adopted by the Committee, to bookkeeping accounts for Participants or to the general account of the Trust, depending on the nature and allocation of the assets generating such earnings, gains and losses. In particular, any earnings on cash
dividends received with respect to Restricted Stock Awards shall be allocated to accounts for Participants, except to the extent that such cash dividends are distributed to Participants, if such shares are the subject of outstanding Restricted Stock
Awards, or, otherwise held by the Trust or returned to the Company. 
 10.5 Expenses. All costs and expenses incurred in the
operation and administration of this Plan, including those incurred by the Trustee, shall be paid by the Company or, if not so paid, then paid from the cash assets of the Trust. 

 10.6 Indemnification. Subject to the requirements and limitations of
applicable laws and regulations, the Company shall indemnify, defend and hold the Trustee harmless against all claims, expenses and liabilities arising out of or related to the exercise of the Trustee’s powers and the discharge of their duties
hereunder, unless the same shall be due to their gross negligence or willful misconduct. 
 10.7 Term of Trust. The Trust, if
established, shall remain in effect until the earlier of (i) termination by the Committee, (ii) the distribution of all assets of the Trust, or (iii) 21 years from the Effective Date. Termination of the Trust shall not affect any
Restricted Stock Awards previously granted, and such Restricted Stock Awards shall remain valid and in effect until they have been earned and paid, or by their terms expire or are forfeited. 

10.8 Tax Status of Trust. It is intended that the Trust established hereby shall be treated as a grantor trust of the Company
under the provisions of Section 671 et seq. of the Code.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]