Document:

Exhibit 10.8

 

		DATED	2021

 

SMARTKEM LIMITED

 

-and-

 

DR SIMON OGIER

 

 

SERVICE
AGREEMENT

 

 

    

     

    

 

INDEX OF CLAUSES

 

	1.	Interpretation	2
	 	 	 
	2.	Employment and Duties	6
	 	 	 
	3.	Period of Employment	6
	 	 	 
	4.	Duties of the Employee	7
	 	 	 
	5.	Hours of Work	8
	 	 	 
	6.	Place of Work	9
	 	 	 
	7.	Remuneration	9
	 	 	 
	8.	Pension and Other Benefits	9
	 	 	 
	9.	Expenses and Company Equipment	9
	 	 	 
	10.	Training	10
	 	 	 
	11.	Holidays	10
	 	 	 
	12.	Absence Due to Illness and Incapacity	10
	 	 	 
	13.	Medical Examination	11
	 	 	 
	14.	Other Paid Leave	11
	 	 	 
	15.	Intellectual Property	11
	 	 	 
	16.	Confidential Information and Company Documents	12
	 	 	 
	17.	Restrictions After Employment	13
	 	 	 
	18.	Data Protection	15
	 	 	 
	19.	Termination Without Notice	16
	 	 	 
	20.	Obligations on Termination	16
	 	 	 
	21.	Garden Leave	17
	 	 	 
	22.	Deductions	18
	 	 	 
	23.	Reconstruction or Amalgamation	18
	 	 	 
	24.	Notices	18
	 	 	 
	25.	Disciplinary and Grievance Procedures	18
	 	 	 
	26.	Anti-Corruption and Bribery	18
	 	 	 
	27.	Litigation Assistance	19
	 	 	 
	28.	Previous Agreements	19
	 	 	 
	29.	Third Party Rights	19
	 	 	 
	30.	Miscellaneous	19

 

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THIS AGREEMENT is made                   the day of
                                           2021

 

BETWEEN:

 

		(1)	Smartkem Limited a company registered in England and Wales under number 06652152 whose registered
office is at Optic Technium Ffordd William Morgan, St. Asaph Business Park, St. Asaph, Clwyd, LL17 0JD (“the Company”);
and

 

		(2)	Dr
                                         Simon Ogier of (“the Employee”)

 

NOW IT IS HEREBY AGREED as follows:

 

		1.	Interpretation

 

		1.1	In this Agreement unless the context otherwise requires the following words shall bear the following
meanings:

 

		“Associated Company”	means any body corporate
which is for the time being associated with the Company within the meaning of Section 449 of the Corporation Taxes Act 2010
or in which the Company or any Subsidiary holds any issued shares;

 

		“Board”	means the board of directors of the Company (including any committee of the board duly appointed
by it);

 

		“Capacity”means	as agent, consultant, director, employee, worker, owner, partner or shareholder;

 

		“Confidential	

 

		Information”	means information in whatever form (including, without limitation, in written, oral, visual or
electronic form or on any magnetic or optical disk or memory and wherever located) relating to the business, products, affairs
and finances of the Company or of any Group Company for the time being confidential to it or to them and trade secrets (including,
without limitation, technical data and know how) relating to the business of the Company or of any Group Company or of any of its
or their suppliers, partners, clients or customers which the Employee develops, creates, receives or obtains in the course of the
Employee’s employment whether or not such information is marked confidential including but not limited to:

 

		1.1.1	any information relating to the design, synthesis and formulation by the Company of organic semi-conductor
materials and any related know-how;

 

		1.1.2	information relating to the sale and commercial exploitation of organic semi-conductor materials
by the Company including supply chain strategic alliances and end user brand relationships;

 

		1.1.3	any Employment Inventions, Employment IPRs, Intellectual Property Rights or Inventions; ;

 

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		1.1.4	existing and prospective software applications, passwords or other confidential matters relating
to computer systems utilised by the Company or any Group Company;

 

		1.1.5	the names, addresses and contact details of the Company or any Group Company’s existing or
prospective customers (including customer and/or prospect lists) in whatever medium this information is stored and their requirements
for any of the Company or any Group Company’s products or services and details of their particular requirements;

 

		1.1.6	existing or prospective suppliers or referrers of business to the Company or any Group Company,
their contact details and details of their particular terms of referral or supply to the Company or any Group Company;

 

		1.1.7	costings, profit margins, discounts, rebates and other financial information;

 

		1.1.8	pricing, credit policies, credit procedures, payment policies, payroll and payment procedures and
systems for the same whether of the Company or any of its clients or customers;

 

		1.1.9	marketing strategies and proposals, plans and specifications for the development of the existing
services and of new services of the Company;

 

		1.1.10	current activities and current and future business plans relating to all or any of development
or sales including the timing of all and any such matters;

 

		1.1.11	details of any existing or prospective joint venture, sub contract agreement, or other commercial
agreement between the Company or any Group Company and any other organisation;

 

		1.1.12	personal data or sensitive personal data regarding employees or officers of the Company or any
Group Company;

 

		1.1.13	business methods and processes and other information related to the operations and running of the
Company and any Group Company’s business which is not in the public domain, including details of salaries, bonuses, commissions,
incentive plans and other terms applicable within the Company or any Group Company;

 

		1.1.14	information received by or on behalf of the Company from third parties in circumstances importing
an obligation of confidentiality (express or implied) on the part of the Company;

 

		1.1.15	all information relating to such matters which comes to the Employee’s knowledge in the course
of the Employee’s employment and which, by reason of its character and/or the manner of its coming to the Employee’s
knowledge, is evidently confidential provided that all such set out herein information shall not be, or shall cease to be, Confidential
Information if and to the extent that it comes to be in the public domain otherwise than as a result of unauthorised act or default;

 

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		“Copies”	means copies or records of any Confidential Information in whatever form (including, without limitation,
in written, oral, visual or electronic form or on any magnetic or optical disk or memory and wherever located) including, without
limitation, extracts, analysis, studies, plans, compilations or any other way of representing or recording and recalling information
which contains, reflects or is derived or generated from Confidential Information;

 

		“Effective Date”	means the Termination Date provided
always that if the Employee has been on Garden Leave in accordance with clause 22, it means the last date on which the Employee
carried out the Employee’s normal duties;

 

		“Employment”	the employment of the Employee under
this Agreement;

 

		“Employment Inventions”	means any Invention which is made wholly or partially by the Employee at any time during the course
of their employment with the Company (whether or not during working hours or using the Company’s premises or resources, and
whether or not recorded in material form);

 

		“Employment IPRs”	means Intellectual Property Rights
created by the Employee in the course of their employment with the Company (whether or not during working hours or using the Company’s
premises or resources);

 

		“Intellectual Property Rights”	means patents, rights to Inventions, copyright and related rights, trade marks, trade names and
domain names, rights in get-up, goodwill and the right to sue for passing off, unfair competition rights, rights in designs, rights
in computer software, database rights, topography rights, rights to use and preserve the confidentiality of information (including
know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including
all applications (or rights to apply) for and rights to be granted, renewals or extensions of, and rights to claim priority from,
such rights and all similar or equivalent rights or forms of protection which subsist or will subsist now or in the future in any
part of the world;

 

		“Invention”	means any invention, idea, discovery, development, improvement or innovation, whether or not
                                                                                   patentable or capable of registration, and whether or not recorded in any medium;

 

		“Garden Leave”	means any period during which the
Company has exercised its rights under clause 22;

 

		“the Group”	means the Company and any company
or companies for the time being which is or are:

 

		1.1.16	a Subsidiary

 

		1.1.17	an Associated Company

 

		1.1.18	a Holding Company

 

 and Group Company shall be interpreted accordingly;

 

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		“Key Person”	 means any person who on the Effective
Date is a director or an employee of the Company or any Relevant Group Company engaged in a managerial, technical, sales, marketing,
finance or development capacity or any consultant of the Company or any Relevant Group Company in either case with whom the Employee
worked or had material dealings or for whose work the Employee was responsible or whom the Employee managed in the course of the
Employee’s Employment at any time during the Relevant Period;

 

		“Relevant Group Company”	means any company in the Group (other than the Company) for which the Employee has performed services
under this Agreement or for which the Employee has had operational or management responsibility at any time during the Relevant
Period;

 

		“Relevant Period”	means the period of 12 months immediately
before the Effective Date;

 

		“Restricted Business”	means those parts of the
business of the Company or any Relevant Group Company with which the Employee has been involved to a material extent during the
Relevant Period;

 

		“Restricted Client”	means any person, firm, company
or organisation who or which at any time during the Relevant Period in connection with the Restricted Business is or was:

 

		1.1.19	negotiating with the Company or a Relevant Group Company; and/or

 

		1.1.20	a client or customer of the Company or any Relevant Group Company;

 

		1.1.21	in the habit of dealing with the Company or any Relevant Group Company;

 

and in each case with whom the
Employee had material dealings during the Relevant Period in the course of the Employee’s employment, or with whom or which
any employee who was under the direct supervision of the Employee had material dealings during the Relevant Period or about whom
or which the Employee became aware or informed during the Relevant Period in the course of the Employee’s employment;

 

		“Restricted Supplier”	means any person, firm,
company or organisation who or which at any time during the Relevant Period has supplied products or services to the Company or
any Relevant Group Company (other than those of an administrative nature or utilities) and with whom the Employee had material
dealings during the Relevant Period;

 

 

		“Subsidiary” and

 “Holding Company”	means any body corporate which
is for the time being a subsidiary or a holding company (as the case may be) of the Company within the meaning assigned to them
respectively by Section 1159 of the Companies Act 2006;

 

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		“Termination”	means the termination of the Employee’s employment with the Company howsoever
                                                                                     caused;

 

		“Termination Date”	means the date of Termination;

 

		1.2	The headings to clauses in this Agreement are inserted for convenience only and do not affect the
construction of this Agreement.

 

		1.3	Unless otherwise required words denoting the singular include the plural and vice versa.

 

		1.4	Any reference to a statutory provision shall be deemed to include a reference to any statutory
modification or re-enactment of it or any subordinate legislation made under it.

 

		2.	Employment and Duties

 

		2.1	The Company shall employ the Employee and the Employee shall serve the Company as Chief Technology
Officer (or in such other capacity as the Company considers appropriate), reporting to the Company’s Chief Executive Officer.

 

		2.2	The Employment commenced on 18th June 2019. [No employment with a previous employer
counts towards the Employee’s period of continuous employment with the Company.

 

		2.3	The Employee warrants that by entering into this Agreement or any other arrangements with the Company
or any Group Company, the Employee will not be in breach of or subject to any express or implied terms of any contract with or
obligation to any third-party binding on the Employee, including without limitation, any notice period or the provisions of any
restrictive covenants or confidentiality obligations arising out of any employment with any other employer or former employer.

 

		2.4	The Employee warrants that at the time of entering into this Agreement the Employee has the right
to work in the United Kingdom and the Employee agrees to provide to the Company copies of all relevant documents in this respect
at the request of the Company. If at any time during the course of the Employment, the Employee ceases to have the right to work
in the United Kingdom, the Company may immediately terminate the Employee’s employment without payment of compensation.

 

		2.5	The Employee accepts that the Company may at its discretion require the Employee to perform other
duties or tasks not within the scope of the Employee’s normal duties but consistent with the Employee’s status and
the Employee agrees to perform those duties or undertake those tasks as if they were specifically required under this Agreement.

 

		3.	Period of Employment

 

		3.1	The Company shall (subject to earlier termination as provided for in this Agreement) employ and
the Employee shall serve the Company on the terms of this Agreement until the Employment is terminated by either party giving the
other not less than 6 months’ prior notice in writing.

 

		3.2	The first 3 months of the Employment shall be a probationary period and the Employment may be terminated
at any time during this period on one week’s notice or payment in lieu of notice. During the probationary period the Employee’s
performance and suitability for continued employment will be monitored. The Company shall have the right to extend this probationary
period for a further 3 months up to a maximum of 6 months. At the end of the probationary period the Employee will be informed
in writing if they have successfully completed the probationary period.

 

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		3.3	Notwithstanding clause 3.1, the Company may, in its sole and absolute discretion, terminate the
Employment at any time and with immediate effect by notifying the Employee that the Company is exercising its right under this
clause 3.3 and that it will make within 28 days a payment in lieu of notice (Payment in Lieu) to the Employee. This Payment
in Lieu will be equal to the basic salary (as at the Termination Date) which the Employee would have been entitled to receive under
this agreement during the notice period referred to at clause 3.1 (or, if notice has already been given, during the remainder of
the notice period) less income tax and National Insurance contributions. For the avoidance of doubt, the Payment in Lieu shall
not include any element in relation to:

 

		3.3.1	any payment in respect of benefits which the Employee would have been entitled to receive during
the period for which the Payment in Lieu is made;

 

		3.3.2	any bonus or commission payments that might otherwise have been due during the period for which
the Payment in Lieu is made; and

 

		3.3.3	any payment in respect of any holiday entitlement that would have accrued during the period for
which the Payment in Lieu is made.

 

		3.4	The Company may pay any sums due under clause 3.3 in equal monthly instalments until the date on
which the notice period referred to at clause 3.1would have expired if notice had been given. The Employee shall be obliged
to seek alternative income during this period and to notify the Company of any income so received. The instalment payments shall
then be reduced by the amount of such income.

 

		3.5	The Employee shall have no right to receive a Payment in Lieu unless the Company has exercised
its discretion in clause 3.3. Nothing in this clause 3 shall prevent the Company from terminating the Employment in breach.

 

		3.6	Notwithstanding clause 3.3 the Employee shall not be entitled to any Payment in Lieu if the Company
is entitled to terminate the Employment without notice in accordance with clause 20.1. In that case the Company shall also be entitled
to recover from the Employee any Payment in Lieu already made.

 

		4.	Duties of the Employee

 

		4.1	The Employee will be required to carry out such duties and functions, exercise such powers and
comply with such instructions in connection with the business of the Company and any Group Company as the Company reasonably determines
from time to time and shall comply with all the Company’s rules, regulations, policies and procedures from time to time in
force.

 

		4.2	Unless prevented by illness, accident or holiday, the Employee will during the Employee’s
hours of work devote the whole of the Employee’s time, attention and skill to the Employee’s duties and to the business
and affairs of the Company and use his best endeavours to promote, protect, develop and extend the Company’s business..

 

		4.3	The Employee will comply with all reasonable and lawful directions given to them by the Company.

 

		4.4	The Employee will promptly make such reports to the Company in connection with the Company’s
affairs on such matters and at such times as are reasonably required.

 

		4.5	The Employee will comply with any I.T. and Communication Systems policy that we may issue from
time to time.

 

		4.6	The Employee is required at all times to comply with the Company’s rules, policies and procedures
in force from time to time including those contained in the Staff Handbook, a copy of which is available from HR and is available
on the internal system.

 

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		4.7	The Employee acknowledges and agrees that they are at all times during the Employment, including
during any period of suspension or notice, subject to a duty of goodwill, trust, confidence, faith and fidelity to the Company.
These duties include, without limitation, the duty throughout the duration of this Agreement:

 

		4.7.1	not to compete with the Company or any Group Company, nor engage in, be concerned with or provide
services to (whether as employee, officer, director, agent, partner, consultant or otherwise) any other business or other activity
which does or might reasonably be expected to affect the performance of the Employee’s duties;

 

		4.7.2	not to make preparations to compete with the Company or any Group Company after this agreement
has terminated;

 

		4.7.3	not to solicit in competition with the Company or any or Group Company any customer or customers
of the Company or any Group Company;

 

		4.7.4	not to entertain invitations to provide services in a personal capacity from customers of the Company
or any Group Company where such invitations relate to services which could be provided by the Company or any Group Company;

 

		4.7.5	not to offer employment to employees of the Company or any Group Company (other than employment
by the Company or any Group Company); and

 

		4.7.6	not to copy or memorise Confidential Information or trade secrets of the Company or any Group Company
with a view to using or disclosing such information for a purpose other than for the benefit of the Company or any Group Company.

 

		4.8	The Employee accepts that they have a duty to report to the Company their own wrongdoing and any
wrongdoing or proposed wrongdoing of any other employee of the Company immediately upon becoming aware of it.

 

		4.9	The Employee will disclose promptly to the Company in writing all of their interests in any business
other than that of the Company and the Group and will notify the Company immediately of any change in their external interests.
The Employee shall not without the prior written consent of the Company during the Employment be directly or indirectly engaged,
concerned or interested whether as principal, servant or agent (on the Employee’s own behalf or on behalf of or in association
with any other person) in any other trade, business or occupation other than the business of the Company or any Group Company.
This clause will not prevent the Employee from being interested for investment purposes only as a member, debenture holder or beneficial
owner of any stock, shares or debentures which are listed or dealt in on a recognised investment exchange and which do not represent
more than 3% of the total share or loan capital from time to time in issue in such company.

 

		4.10	The Employee agrees to disclose to the Company any matters relating to their spouse or civil partner
(or anyone living as such), children or parents which may, in the Company’s reasonable opinion, be considered to interfere,
conflict or compete with the proper performance of the Employee’s obligations under this agreement.

 

		4.11	The Company takes a zero-tolerance approach to tax evasion. The Employee must not engage in any
form of facilitating tax evasion, whether under UK law or under the law of any foreign country. The Employee must immediately report
to the Company any request or demand from a third party to facilitate the evasion of tax or any concerns that such a request or
demand may have been made.

 

		5.	Hours of Work

 

		5.1	The Employee’s normal hours of work are 37.5 hours per week (9am – 5:30pm) Mondays
to Fridays with an unpaid lunch break of one hour each day. Subject to clause 5.2 below, the Employee’s normal hours and
days of work will not vary unless the Company agrees a change to their working pattern in writing.

 

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		5.2	The Employee shall be required to work such additional hours outside these hours without additional
remuneration as are necessary for the proper discharge of the Employee’s duties under this Agreement and/or to meet the requirements
of the Company.

 

		5.3	The Employee should refer to Schedule 2 of this Agreement in relation to their average weekly working
hours.

 

		6.	Place of Work

 

		6.1	The Employee’s normal place of work shall be the Company’s office in The Neville Hamlin
Building, Thomas Wright Way, NETPark, Sedgefield TS21 3FG or such other place within a reasonable area which the Company may reasonably
require for the proper performance and exercise of the Employee’s duties.

 

		6.2	The Employee will be required as part of their duties to travel on the business of the Company
both within and outside the United Kingdom, but the Employee shall not be required to work outside the United Kingdom for any continuous
period of more than one month.

 

		7.	Remuneration

 

		7.1	The Company shall pay to the Employee a basic salary at the rate of £120,000 per annum.

 

		7.2	The Employee’s salary shall accrue from day to day and be payable by equal monthly instalments,
in arrears, by credit transfer into a nominated bank account on or around the 28th day of each month.

 

		7.3	The Employee’s salary may be reviewed from time to time provided that the increase of such
salary will be a matter to be decided at the discretion of the Company. The fact that the Employee’s salary may be increased
by a particular amount in any year or years during the Employment shall not confer any right on the Employee to receive any commensurate
increase in any subsequent year. There will be no review of salary after notice has been given by either party to terminate the
Employment.

 

		8.	Pension and Other Benefits

 

		8.1	The Company will comply with the employer pension duties in accordance with Part 1 of the
Pensions Act 2008. Further details of the Company’s occupational pension scheme are available from HR.

 

		8.2	The Employee shall be entitled to participate in the Company’s Death in Service Scheme from
the commencement of the Employment subject to the terms of the scheme, as amended from time to time, the rules or insurance
policy of the relevant insurance provider, as amended from time to time and the Employee satisfying the normal underwriting requirements
of the relevant insurance provider and the premium being at a rate which the Company considers reasonable. The Company may change
the insurance provider at any time at its discretion. If the insurance provider refuses for any reason to provide cover for the
Employee the Company shall not be liable to provide any replacement benefit or to pay any compensation in lieu of such benefit.

 

		9.	Expenses and Company Equipment

 

		9.1	There shall be refunded to the Employee all reasonable out-of-pocket expenses wholly, properly
and necessarily incurred by the Employee in the performance of their duties provided that the Employee submits to the Company written
evidence of payment of such expenses, in accordance with guidelines issued by the Company from time to time.

 

		9.2	The Employee shall abide by the Company’s policy on expenses as set out in the Staff Handbook
from time to time.

 

		9.3	During the Employment, the Employee shall be provided with Company equipment as necessary for the
performance of his duties, shall promptly report to the Company any loss of or damage to such Company equipment and shall return
it upon request or immediately upon Termination.

 

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		10.	Training

 

		10.1	The Employee will be required to undertake training provided by the Company from time to time including
in relation to health and safety and machinery, changes in the law and the Company’s procedures and any other matters which
are relevant to the Employee’s role.

 

		11.	Holidays

 

		11.1	The Company’s holiday year runs from 1 January to 31 December. If the Employment starts
or finishes part way through the holiday year, holiday entitlement during that year shall be calculated on a pro-rata basis rounded
up to the nearest half day.

 

		11.2	The Employee shall be entitled to 28 days’ paid holiday per annum in addition to the usual
public holidays. Holidays must be requested in accordance with the holidays policy in the Staff Handbook and may only be taken
at such time or times as may be approved by the Company in advance. The Employee may not take any more than 10 days’ holiday
at any one time without specific authorisation from the Company. The Company operates a shutdown period between Christmas and New
Year during which the Employee is required to use 3 days of the annual allowance.

 

		11.3	The Employee shall have no entitlement to any payment in lieu of accrued but untaken holiday except
on Termination. The amount of such payment in lieu shall be 1/260th of the Employee’s salary for each untaken day of the
entitlement. If the Employee shall have taken more days’ holiday than the Employee’s accrued entitlement, the Company
is entitled to recover from the Employee by way of deduction from any payments due to the Employee or otherwise one day's pay for
each excess day.

 

		11.4	The Employee shall not carry forward any accrued but untaken holiday entitlement to a subsequent
holiday year except as set out in the Company’s Holiday policy contained within the Staff Handbook.

 

		11.5	The Company reserves the right, at its sole discretion, to require the Employee to take or not
to take all or part of any outstanding holiday entitlement during any period of notice.

 

		12.	Absence Due to Illness and Incapacity

 

		12.1	If the Employee is at any time prevented by illness or accident from performing the Employee’s
duties the Employee shall notify the Company as soon as possible and, in any event, not later than 10.00 am on the first day of
absence.

 

		12.2	The Employee shall certify their absence in accordance with the Company’s Sickness Absence
policy contained within the Staff Handbook.

 

		12.3	The Employee’s qualifying days for statutory sick pay purposes are Monday to Friday.

 

		12.4	After completion of the probationary period referred to at clause 3.2, the Employee will, subject
always to compliance with this agreement and the Company’s Sickness Absence policy contained within the Staff Handbook, be
entitled to payment of the basic salary under clause 7.1 above (less any social security or other benefits paid to him) during
absence from work due to illness or incapacity for a period (in total) of 3 months in any rolling period of twelve months (whether
the absence is intermittent or continuous). Any payments pursuant to this sub-clause will be inclusive of any Statutory Sick Pay
payable.

 

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		12.5	If the Employee’s absence due to illness or incapacity is or appears to be occasioned by
actionable negligence, nuisance or breach of any statutory duty on the part of a third party in respect of which damages are or
may be recoverable, the Employee shall immediately notify the Company of that fact and of any claim, settlement or judgment made
or awarded in connection with it and all relevant particulars that the Company may reasonably require. The Employee shall if required
by the Company, co-operate in any related legal proceedings and refund to the Company that part of any damages or compensation
recovered by the Employee relating to the loss of earnings for the period of the absence as the Company may reasonably determine
less any costs borne by the Employee in connection with the recovery of such damages or compensation, provided that the amount
to be refunded shall not exceed the total amount paid to the Employee by the company in respect of the period of absence.

 

		13.	Medical Examination

 

		13.1	The Company may (at its expense) require the Employee to undergo a medical examination by a medical
advisor appointed or approved by the Company and the Employee agrees to consent to any such examination. Entitlement to sick pay
pursuant to clause 13.4 will be conditional upon the Employee complying with the terms of clauses 13 and 14.

 

		14.	Other Paid Leave

 

		14.1	If relevant and subject to compliance with the relevant statutory requirements and provisions of
the Staff Handbook, the Employee may be entitled to paid leave in respect of maternity, paternity, shared parental leave, parental
bereavement leave and/or adoption, and they may be entitled to unpaid parental leave.

 

		14.2	Further details of such leave and pay during such leave are available from the Staff Handbook.

 

		14.3	The Company may replace, amend or withdraw the Company's policy on any of the above types of leave
at any time.

 

		15.	Intellectual Property

 

		15.1	The Employee acknowledges that all Employment IPRs, Employment Inventions and all materials embodying
them shall automatically belong to the Company to the fullest extent permitted by law. To the extent that they do not vest in the
Company automatically, the Employee hold them on trust for the Company.

 

		15.2	The Employee acknowledges that, because of the nature of their duties and the particular responsibilities
arising from the nature of those duties, they have, and shall have at all times while employed by the Company, a special obligation
to further the Company’s interests.

 

		15.3	To the extent that legal title in and to any Employment IPRs or Employment Inventions does not
vest in the Company as described in clause 16.1, the Employee agrees, immediately on creation of such rights and Inventions, to
offer to the Company in writing a right of first refusal to acquire them on arm’s length terms to be agreed between the parties.
If the parties cannot agree on such terms within 30 days of the Company receiving the offer, the Company shall refer the dispute
for determination to an expert. The expert’s decisions shall be final and binding on the parties in the absence of manifest
error, and the costs of arbitration shall be borne equally by the parties. The parties will be entitled to make submissions to
the expert and will provide (or procure that others provide) the expert with such assistance and documents as the expert reasonably
requires for the purpose of reaching a decision. The Employee agrees that the provisions of this clause 16.3 shall apply to all
Employment IPRs and Employment Inventions offered to the Company under this clause 16.3 until such time as the Company has agreed
in writing that the Employee may offer them for sale to a third party.

 

		15.4	The Employee agrees:

 

		15.4.1	to give the Company full written details of all Employment Inventions which relate to or are capable
of being used in the business of the Company or any Group Company promptly on their creation;

 

		15.4.2	at the Company’s request and in any event on the termination of the Employee’s employment
to give the Company all originals and copies of correspondence, documents, papers and records on all media which record or relate
to any of the Employment IPRs;

 

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		15.4.3	not to attempt to register any Employment IPR nor patent any Employment Invention unless requested
to do so by the Company; and

 

		15.4.4	to keep confidential each Employment Invention unless the Company has consented in writing to its
disclosure by the Employee.

 

		15.5	The Employee waives all the Employee’s present and future moral rights which arise under
the Copyright Designs and Patents Act 1988, and all similar rights in other jurisdictions relating to any copyright which forms
part of the Employment IPRs, and agree not to support, maintain or permit any claim for infringement of moral rights in such copyright
works.

 

		15.6	The Employee acknowledges that, except as provided by law, no further remuneration or compensation
other than that provided for in this agreement is or may become due to the Employee in respect of their compliance with this clause.
This clause is without prejudice to the Employee’s rights under the Patents Act 1977.

 

		15.7	The Employee undertakes to use best endeavours to execute all documents and do all acts both during
and after their employment with the Company as may, in the opinion of the Company, be necessary or desirable to vest the Employment
IPRs in the Company, to register them in the Company’s name and to protect and maintain the Employment IPRs and the Employment
Inventions. Such documents may, at the Company’s request, include waivers of all and any statutory moral rights relating
to any copyright works which form part of the Employment IPRs. The Company agrees to reimburse the Employee’s reasonable
expenses of complying with this clause 16.7.

 

		15.8	The Employee agrees to give all necessary assistance to the Company to enable it to enforce its
Intellectual Property Rights against third parties, to defend claims for infringement of third party Intellectual Property Rights
and to apply for registration of Intellectual Property Rights, where appropriate throughout the world, and for the full term of
those rights.

 

		15.9	The Employee hereby irrevocably appoint the Company to be their attorney in their name and on their
behalf to execute documents, use their name and do all things which are necessary or desirable for the Company to obtain for itself
or its nominee the full benefit of this clause.

 

		16.	Confidential Information and Company Documents

 

		16.1	Without prejudice to the Employee’s common law duties, the Employee shall neither during
the Employment (except in the proper performance of the Employee’s duties or with the express written consent of the Company)
nor at any time (without limit) after the termination of the Employment except in compliance with an order of a competent court:

 

		16.1.1	divulge or communicate to any person, company, business entity or other organisation any Confidential
Information;

 

		16.1.2	use for the Employee’s own purposes or for any purposes other than those of the Company or
any Group Company any Confidential Information; or

 

		16.1.3	whether through any failure to exercise due care and diligence or otherwise, permit or cause any
unauthorised disclosure of any Confidential Information.

 

		16.2	The Employee is responsible for ensuring the security of Confidential Information in their home
and undertakes to:

 

		16.2.1	encrypt and/or protect by password any Confidential Information held on his home computer;

 

		16.2.2	lock his computer termination whenever it is left unattended;

 

    	 	 	12 

     

    

 

		16.2.3	ensure that any wireless network used is secure;

 

		16.2.4	keep all papers containing Confidential Information in filing cabinets that are locked when not
in use.

 

		16.3	The restrictions in clause 17.1 shall not apply to protected disclosures within the meaning of
section 43A of the Employment Rights Act 1996 and shall cease to apply to any information which shall become available to the public
generally otherwise than through any breach by the Employee of the provisions of this Agreement or other default of the Employee.

 

		16.4	The Employee will not during the Employment or any time (without limit) after Termination obtain
or seek any financial advantage (direct or indirect) from the disclosure of any Confidential Information acquired by the Employee
in the course of the Employment.

 

		16.5	The Employee acknowledges that all books, notes, memoranda, records, lists of customers and suppliers
and employees, correspondence, documents, computer and other discs and tapes, data listings, codes, designs and drawings and other
documents and material whatsoever (whether made or created by the Employee or otherwise) relating to the business of the Company
or any Group Company (and any copies of the same):

 

		16.5.1	shall be and remain the property of the Company or the relevant Group Company; and

 

		16.5.2	shall be handed over by the Employee to the Company or to the relevant Group Company on demand
and in any event on the termination of the Employment and the Employee shall certify that all such property has been handed over
on request by the Company.

 

		16.6	On termination of the Employment or at the Company’s request, the Employee shall irretrievably
delete any Confidential Information (including any Copies) stored on any magnetic or optical disk or memory, including personal
computer networks, personal e-mail accounts or personal accounts on websites, and all matter derived from such sources which is
in the Employee’s possession or under the Employee’s control outside the Company's premises;

 

		16.7	The provisions of this clause 17 are without prejudice to the duties and obligations of the Employee
to be implied into this Agreement at common law.

 

		17.	Restrictions After Employment

 

		17.1	The Employee acknowledges that the Company’s business is a highly specialised and competitive
business and that the Employee will have access to and an intimate knowledge of the Company’s Confidential Information and
that the disclosure of any Confidential Information to actual or potential competitors of the Company or the use of any Confidential
Information by the Employee either alone or with other persons would place the Company at a serious competitive disadvantage and
would do material damage, financial or otherwise, to its legitimate business interests. Further the Employee acknowledges that
they will have contact with and the ability to develop business connections with and influence over the Company’s clients,
suppliers, business partners and employees. Therefore the Employee acknowledges and agrees that the restrictions set out in this
Agreement are fair and reasonable in the circumstances for the protection of the Company’s legitimate business interests.

 

		17.2	Accordingly, the Employee covenants with the Company (on behalf of itself and as trustee and agent
for each Group Company) that the Employee will not:

 

		17.2.1	at any time during the period of 6 months from the Termination Date have any dealings with any
Restricted Supplier to the extent that any such dealings cause or would cause the Restricted Supplier to alter its terms of supply
to the detriment of the Company or any Relevant Group Company or to cease or materially reduce its supplies to the Company or any
Relevant Group Company; or

 

    	 	 	13 

     

    

 

		17.2.2	at any time during the period of 6 months from the Termination Date have any dealings with any
Restricted Client to the extent that any such dealings cause or would cause the Restricted Client to cease or materially to reduce
its orders to or contracts with the Company or any Relevant Group Company; or

 

		17.2.3	at any time during the period of 6 months from the Termination Date induce, procure or encourage
or attempt to induce, procure or encourage any Restricted Supplier to alter its terms of supply to the detriment of the Company
or any Relevant Group Company or to cease or materially reduce its supplies to the Company or any Relevant Group Company; or

 

		17.2.4	at any time during the period of 6 months from the Termination Date solicit or endeavour to entice
away from the Company or any Relevant Group Company the business or custom of a Restricted Client with a view to providing goods
or services to that Restricted Client in competition with any Restricted Business; or

 

		17.2.5	at any time during the period of 6 months from the Termination Date be involved with the provision
of goods or services to (or otherwise have any business dealings with) any Restricted Client in the course of any business concern
which is in competition with any Restricted Business; or

 

		17.2.6	at any time during the period of 6 months from the Termination Date in the course of any business
concern which is or proposes to be in competition with any Restricted Business offer to employ or engage or otherwise solicit,
induce or endeavour to entice away from the Company or any Relevant Group Company any Key Person, whether or not such person would
commit any breach of their contract of employment or engagement by leaving the service of the Company or any Group Company; or

 

		17.2.7	at any time during the period of 6 months from the Termination Date in the course of any business
concern which is or proposes to be in competition with any Restricted Business, employ, engage or appoint or otherwise cause or
facilitate the employment, engagement or appointment of any Key Person whether or not such person would be in breach of contract
as a result of such employment, engagement or appointment; or

 

		17.2.8	at any time during the period of 6 months from the Termination Date provide technical, commercial
or professional advice to, or be involved in any Capacity with, any business concern or commercial venture which is (or intends
to be) in competition with any Restricted Business; or

 

		17.2.9	at any time after Termination, represent themselves as connected with the Company or any Relevant
Group Company in any Capacity, other than as a former employee, or use any registered names or trading names associated with the
Company or any Group Company; or

 

		17.2.10	encourage, assist or procure any third party to do anything which, if done by the Employee would
be in breach of 18.2.1 to 18.2.9 above.

 

		17.3	The restrictions imposed on the Employee by this Clause 18 apply to the Employee acting:

 

		17.3.1	directly or indirectly; and

 

		17.3.2	on the Employee’s own behalf or on behalf of, or in conjunction with, any firm, company or
person.

 

		17.4	If at any time during the Employee’s employment two or more Key Persons have left their employment,
appointment or engagement with the Company to carry out services for a business concern which is, or intends to be, in competition
with any Restricted Business, the Employee will not at any time during the 6 months following the last date on which any of those
Key Persons were employed or engaged by the Company, be employed or engaged in any way with that business concern.

 

    	 	 	14 

     

    

 

		17.5	None of the restrictions in clause 18 shall prevent the Employee from:

 

		17.5.1	holding an investment by way of shares or other securities of not more than 5% of the total issued
share capital of any company, whether or not listed or dealt in on a recognised stock exchange; or

 

		17.5.2	being engaged in any business concern, provided that the Employee’s duties or work shall
relate solely to services or activities of a kind with which the Employee was not concerned to a material extent in the Relevant
Period.

 

		17.6	The period for which the restrictions in clause 18.2 apply shall be reduced by any period that
the Employee spends on Garden Leave immediately before Termination.

 

		17.7	Each of the restrictions in clause 18 is intended to be separate and severable. If any of the restrictions
shall be held to be void or ineffective for whatever reason but would be valid and effective if part of their wording were deleted,
such restrictions shall apply with such modifications as may be necessary to make them valid and effective.

 

		17.8	If, during the Employee’s employment or before the expiry of the last of the covenants in
this clause 18, the Employee receives an approach or offer to be involved in any Capacity in a business which competes with any
part or parts of the Company or Relevant Group Company’s business with which the Employee is or has been involved to a material
extent during Employment, the Employee shall:

 

		17.8.1	notify the Company in writing of the approach or offer and the identity of the person making the
approach or offer as soon as possible;

 

		17.8.2	if requested, provide a copy of any written offer as soon as possible; and

 

		17.8.3	give the person making the offer a copy of this clause 18 within 7 days of the offer being made.

 

The obligations contained in
this clause 18.8 are continuing obligations and shall also apply if, at any time subsequent to the relevant approach or offer being
made but before the expiry of the last of the covenants in this clause 18.8, the business making the offer or approach so competes
with the Company or Group Company’s business.

 

		17.9	The Employee will, at the Company’s request and expense, enter into a separate agreement
with any Relevant Group Company in which the Employee agrees to be bound by restrictions corresponding to those restrictions in
this clause 18 (or such of those restrictions as may be appropriate) in relation to that Relevant Group Company.

 

		18.	Data Protection

 

		18.1	The Company will collect and process information relating to the Employee in accordance with the
privacy notice which is annexed to this agreement. The Employee is required to sign and date the privacy notice and return to HR.

 

		18.2	The Employee shall comply with the Company’s data protection policy when handling personal
data in the course of employment including personal data relating to any employee, worker, contractor, customer, client, supplier
or agent of the Company. The Employee will also comply with the Company’s I.T. and communications systems policy and social
media policy.

 

		18.3	Failure to comply with the data protection policy or any of the policies listed above in clause
19.2 may be dealt with under the Company’s disciplinary procedure and, in serious cases, may be treated as gross misconduct
leading to summary dismissal.

 

    	 	 	15 

     

    

 

		19.	Termination Without Notice

 

		19.1	Notwithstanding the provisions of clause 3.1 this Agreement may be terminated by the Company with
immediate effect without notice and with no liability to make any further payment to the Employee (other than in respect of amounts
accrued due at the date of termination):

 

		19.1.1	if the Employee is in the reasonable opinion of the Company guilty of any gross default, misconduct,
fraud, dishonesty, negligence or wilful neglect in connection with or affecting the business of the Company or any Group Company;

 

		19.1.2	in the event of any repeated breach or non-observance by the Employee of any of the provisions
contained in this Agreement or failure to observe the reasonable and lawful directions of the Company;

 

		19.1.3	if the Employee is guilty of conduct which in the opinion of the Company brings the Employee or
the Company or any Group Company into disrepute;

 

		19.1.4	if, in the reasonable opinion of the Company, the Employee is negligent and incompetent in the
performance of their duties;

 

		19.1.5	if the Employee is in breach of the Company’s Anti-Corruption and Bribery Policy and related
procedures issued from time to time;

 

		19.1.6	if the Employee is in breach of the Company’s I.T. and Communication Systems Policy issued
from time to time;

 

		19.1.7	if the Employee is in breach of their obligations under clause 4.11;

 

		19.1.8	if the Employee becomes bankrupt, makes any arrangement or composition with the Employee’s
creditors, has an interim order made against them pursuant to Section 252 of the Insolvency Act 1986, or has a county court
administration order made against them under the County Court Act 1984;

 

		19.1.9	if the Employee is convicted of any arrestable criminal offence (other than a minor offence under
road traffic legislation in the United Kingdom for which a fine or non-custodial penalty is imposed);

 

		19.1.10	if the Employee is, in the opinion of a medical practitioner, physically or mentally incapable
of performing their duties and may remain so for more than three months and the medical professional has given a medical opinion
to the Company to that effect; if the Employee ceases to be eligible to work in the United Kingdom;

 

		19.1.11	if the Employee fails to reach performance requirements set by the Company after receiving a written
warning regarding the Employee’s performance from the Company; or

 

		19.1.12	if the Employee is unfit to carry out the duties hereunder because of sickness, injury or otherwise
for an aggregate period of 6 months in any 12 month period;

 

		19.2	The rights of the Company under clause 20.1 are without prejudice to any other rights that it might
have at law to terminate the Employee’s employment or to accept any breach of this agreement by the Employee as having brought
the employment to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof.

 

		20.	Obligations on Termination

 

		20.1	On termination of the Employee’s employment (howsoever arising) or, if earlier, at the start
of a period of Garden Leave, the Employee shall:

 

    	 	 	16 

     

    

 

		20.1.1	subject to clause 21.2, immediately deliver to the Company all equipment, documents, books, materials,
records, correspondence, papers and information (on whatever media and wherever located) relating to the business or affairs of
the Company or any Group Company or its or their business contacts, any keys, credit cards and other property of the Company or
any Group Company (including any Company car and all associated equipment and documentation) which are in the Employee’s
possession or under their control;

 

		20.1.2	irretrievably delete any information relating to the business or affairs of the Company or any
Group Company stored on any magnetic or optical disk or memory and all matter derived from such sources which are in the Employee’s
possession or under their control outside the Company’s premises; and

 

		20.1.3	provide a signed statement that the Employee has complied fully with their obligations under this
clause 21.1.

 

		20.2	Where the Employee has been placed on Garden Leave, they shall not be required by clause 21.1.1
to return, until the end of the Garden Leave period, any property provided to the Employee as a contractual benefit for use during
the Employment.

 

		20.3	On termination of the Employment the Employee shall not be entitled to any compensation for the
loss of any rights of benefits under any share option, bonus, long term incentive plan or other profit-sharing scheme operated
by the Company or any Group Company in which the Employee may participate.

 

		21.	Garden Leave

 

		21.1	Following service of notice to terminate this Agreement by either party, or if the Employee purports
to terminate the Agreement in breach, the Company may by written notice place the Employee on Garden Leave for the whole or part
of the remainder of the Employment.

 

		21.2	During any period of Garden Leave the Company:

 

		21.2.1	shall be under no obligation to provide any work to, or vest any powers in the Employee and may
revoke any powers the Employee holds on behalf of the Company or any Group Company; and

 

		21.2.2	may require the Employee to carry out alternative duties or to only perform such specific duties
as are expressly assigned to the Employee, at such location (including the Employee’s home) as the Company may decide; and

 

		21.2.3	may exclude the Employee from any of the Company’s or any Group Company's premises.

 

		21.3	During any period of Garden Leave the Employee shall:

 

		21.3.1	continue to receive their salary and all contractual benefits in the usual way and subject to the
terms of any benefit arrangement;

 

		21.3.2	remain an employee of the Company and bound by the terms of this Agreement (including any implied
duties of good faith and fidelity);

 

		21.3.3	not without the prior written consent of the Company, contact, deal with (or attempt to contract
or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, advisor, or other
business contact of the Company or any Group Company; and

 

		21.3.4	(except during any periods taken as holiday in the usual way) ensure that the Company knows where
the Employee will be and how they can be contacted during each working day.

 

    	 	 	17 

     

    

 

		22.	Deductions

 

		22.1	The Company may deduct from the salary, or any other sums owed to the Employee, any money owed
to the Company or any Group Company by the Employee including but not limited to the cost of repairing any damage or loss to the
Company’s property caused by the Employee.

 

		23.	Reconstruction or Amalgamation

 

		23.1	If the Employment is terminated at any time by reason of any reconstruction or amalgamation of
the Company or any Group Company, whether by winding up or otherwise, and the Employee is offered employment with any concern or
undertaking involved in or resulting from the reconstruction or amalgamation on terms which (considered in their entirety) are
no less favourable to any material extent than the terms of this agreement, the Employee shall have no claim against the Company,
any Group Company or any such undertaking arising out of or connected with the termination.

 

		24.	Notices

 

		24.1	Any notice required to be given under this Agreement shall be in writing and shall be deemed to
have been duly given and received:

 

		24.1.1	if sent by hand when handed to the addressee or placed in the letter box of the addressee if there
is no reply; or

 

		24.1.2	if sent by facsimile at the time of dispatch if the same is within the normal business hours of
the recipient and if not then at 10.00 a.m. on the next business day; or

 

		24.1.3	if sent by first class post to, in the case of the Company, its registered office for the time
being or, in the case of the Employee, the Employee’s last known address on the second business day following that on which
it was posted.

 

		25.	Disciplinary and Grievance Procedures

 

		25.1	The Employee is subject to the Company’s disciplinary and grievance procedures contained
in the staff handbook. These procedures do not form part of the Employee’s contract of employment. If the Employee wishes
to obtain redress of any grievance relating to the Employment, or wishes to appeal any reprimand, suspension or other disciplinary
step taken by the Company, the Employee may apply in writing to the CEO, setting out the nature and details of any such grievance
or appeal in accordance with the Company’s grievance or disciplinary procedure (as appropriate).

 

		25.2	The Company shall have the right to suspend (subject to the continued payment of salary and benefits)
the Employee pending any investigation into any potential misconduct, dishonesty or any other circumstances which may give rise
to a right on the part of the Company to terminate the Employment for such period as it deems to be reasonably necessary.

 

		26.	Anti-Corruption and Bribery

 

		26.1	During the continuance of the Employment the Employee:

 

		26.1.1	shall not directly or indirectly procure accept or obtain for the Employee’s own benefit
(or for the benefit of any other person) any payment, rebate, discount, commission, vouchers, gift, entertainment or other benefit
outside the normal course of business (“Gratuities”) from any third party in respect of any business transacted (whether
or not by the Employee) by or on behalf of the Company or any Group Company;

 

		26.1.2	shall observe the terms of any policy issued by the Company or any Group Company in relation to
Gratuities and/or Bribery and Anti Corruption; and

 

    	 	 	18 

     

    

 

		26.1.3	shall, as soon as reasonably practicable, disclose or account to the Company or any Group Company
for any Gratuities received by the Employee (or any other person on the Employee’s behalf or at the Employee’s instruction).

 

		27.	Litigation Assistance

 

		27.1	During the Employment and at all times thereafter, the Employee shall furnish such information
and proper assistance to the Company or any Group Companies as it or they may reasonably require in connection with litigation
in which it is or they are or may become a party. This obligation on the Employee’s behalf shall include, without limitation,
meeting with the Company or any Group Company’s legal advisors, providing witness evidence, both in written and oral form,
and providing such other assistance in the litigation that the Company or any Group Company’s legal advisors in their reasonable
opinion determine. The Company shall reimburse the Employee for all reasonable out of pocket expenses incurred by the Employee
in furnishing such information and assistance. For the avoidance of doubt the obligations under this clause 28 shall continue notwithstanding
the termination of this Agreement.

 

		28.	Previous Agreements

 

		28.1	This Agreement contains the entire and only agreement between and will govern the relationship
between the Company and the Employee and supersedes and extinguishes any and all previous agreements, promises, assurances, warranties,
representations, understandings and arrangements between the Company and the Employee whether written, oral or implied relating
to its subject matter.

 

		28.2	Each party acknowledges that in entering into this Agreement it does not rely on, and shall have
no remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that is
not set out in this Agreement.

 

		28.3	Each party agrees that it shall have no claim for innocent or negligent misrepresentation or negligent
misstatement based on any statement in this Agreement.

 

		28.4	Nothing in this clause shall limit or exclude any liability for fraud.

 

		29.	Third Party Rights

 

		29.1	The Contracts (Rights of Third Parties) Act 1999 shall not apply to this Agreement and no person
other than the Employee and the Group shall have any rights under it. The terms of this Agreement or any of them may be varied,
amended or modified or this Agreement may be suspended, cancelled or terminated by agreement in writing between the parties or
this Agreement may be rescinded (in each case) without the consent of any third party.

 

		30.	Miscellaneous

 

		30.1	The termination of this Agreement shall be without prejudice to any right the Company may have
in respect of any breach by the Employee of any of the provisions of this Agreement which may have occurred prior to such termination.

 

		30.2	This Agreement is governed by and is to be construed in accordance with the Laws of England and
Wales. The parties to this agreement submit to the exclusive jurisdiction of the English Courts in relation to any claim, dispute
or matter arising out of or relating to this agreement.

 

		30.3	There are no collective agreements which affect the Employee’s employment.

 

		30.4	This agreement may be executed in any number of counterparts, each of which when executed and delivered
shall constitute a duplicate original, but all the counterparts shall together constitute the one agreement.

 

    	 	 	19 

     

    

 

	Signed as a deed by DR SIMON OGIER:	 	/s/ Simon Ogier
	 	 	 
	 	 	EMPLOYEE SIGNATURE
	 	 	 
	IN THE PRESENCE OF	 	 
	 	 	 
	/s/ Rueon Boorman	 	 
	 	 	 
	SIGNATURE OF WITNESS	 	 
	 	 	 
	NAME OF WITNESS	 	 
	 	 	 
	ADDRESS OF WITNESS	 	 
	 	 	 
	OCCUPATION OF WITNESS	 	 
	 	 	 
	 	 	 
	Executed as a deed by SmartKem Limited	 	/s/
Robert Bahns
	 	 	 
	acting by ROBERT BAHNS, a director,	 	SIGNATURE
OF DIRECTOR
	 	 	 
	in the presence of:	 	Director
	 	 	 
		 	 
	 	 	 
	SIGNATURE OF WITNESS	 	 
	 	 	 
	NAME OF WITNESS	 	 
	 	 	 
	ADDRESS OF WITNESS	 	 
	 	 	 
	OCCUPATION OF WITNESS	 	 

 

    	 	 	20 

     

    

 

 

Schedule 1

 

Employee Privacy Notice

 

		1.	Why are we sending you this document?

 

SmartKem Limited takes seriously
the privacy and security of your personal information.

 

We wish to share with you information
about the personal information we collect and use during and after your working relationship with us, in accordance with the General
Data Protection Regulation (GDPR). This notice applies to all employees, workers and contractors.

 

This notice applies to current
and former employees, workers and contractors. This notice does not form part of any contract of employment or other contract to
provide services. We may update this notice at any time.

 

SmartKem Limited of Optic Technium,
Ffordd William Morgan, St. Asaph Business Park, St. Asaph, Clwyd, LL17 0JD is a "data controller". This means that we
are responsible for deciding how we hold and use personal information about you. We are required under data protection legislation
to notify you of the information contained in this privacy notice.

 

It is important that you read
this notice, together with any other privacy notice we may provide on specific occasions when we are collecting or processing personal
information about you, so that you are aware of how and why we are using such information.

 

		2.	Use of personal information

 

We will comply with data protection
law. This says that the personal information we hold about you must be:

 

		·	Used lawfully, fairly and in a transparent
way.

 

		·	Collected only for valid purposes that
we have clearly explained to you and not used in any way that is incompatible with those purposes.

 

		·	Relevant to the purposes we have told
you about and limited only to those purposes.

 

		·	Accurate and kept up to date.

 

		·	Kept only as long as necessary for the
purposes we have told you about.

 

		·	Kept securely.

 

		3.	The kind of information we hold about you

 

Personal data, or personal information,
means any information about an individual from which that person can be identified. It does not include data where the identity
has been removed (anonymous data).

 

There are "special categories" of more
sensitive personal data which require a higher level of protection.

 

We will collect, store, and
use the following categories of personal information about you:

 

    21

     

    

 

Recruitment
information (including copies of right to work documentation, references and other information included in a CV or cover letter
or as part of the application process)

 

The reason
we process the above information is so that we can enter into and maintain our employment relationship.

 

Salary and payment details

 

		·	Bank account details, payroll records
and tax details

 

		·	Salary, annual leave, pension and benefits
information

 

		·	Start and end dates of your employment

 

		·	Information relating to pension schemes
operated by us of which you are a member and any company benefits

 

The reason we process the above
information is so that we can pay you for the work you carry out and administer your pension and benefits.

 

Employment records

 

		·	Employment records (including job titles,
work history, working hours, training records)

 

		·	Information about lateness and absences

 

		·	Performance information (including annual
appraisals)

 

		·	Information relating to any disciplinary
action taken against you and any grievances brought by you

 

		·	Documents relating to pregnancy or maternity
leave or paternity leave

 

		·	Copy of UK Right to Work documentation
such as passport, Birth Certificate and any applicable visas for non-UK citizens

 

The reason we process the above
information is so that we can keep a record of information so that we can fulfil our obligations in relation to maintaining your
employment or work that you do for us and comply with legal requirements, manage your performance, consider career progression,
and deal with disciplinary and grievance proceedings.

 

Other information

 

		·	Information about your use of our computer
system such as dates and time of your log in, your internet browsing and your work-related emails

 

		·	Information recorded in our accident book
or reports of accidents at work

 

    22

     

    

 

The reason we process the above
information is so that we can comply with our legal obligations in relation to health and safety and insurance, to prevent fraud,
so that we can ensure that our information and communication systems are used properly in accordance with our IT Policy, to ensure
network and information security, including preventing unauthorised access to our computer and electronic communications systems,
preventing malicious software distribution and to deal with legal disputes involving you, or other employees, workers and contractors,
including accidents at work.

 

We may also collect, store and
use the following "special categories" of more sensitive personal information:

 

		·	Information about your health, including
any medical condition, health and sickness records

 

The reason
we process the above information is so that we can carry out any equal opportunities monitoring, and we can decide whether there
are any medical conditions which might impact on your ability to do the job and whether there is any support that is required.
At the recruitment stage we ask for information about any relevant medical conditions once a decision has been made to offer you
the job.

 

		4.	How do we collect your personal information?

 

We collect personal information
about employees, and workers through our recruitment process, either directly from candidates or sometimes from an employment agency
or former employers by way of a response to a reference request.

 

We will collect additional personal
information in the course of job-related activities throughout the period of you working for us.

 

		5.	How do we use information about you?

 

We will only use your personal
information when the law allows us to. In most cases, we will use your personal information in the following circumstances:

 

		a)	Where we need to perform the contract we have entered into with you

 

		b)	Where we need to comply with a legal obligation

 

		c)	Where it is necessary for our legitimate interests (or those of a third party)

 

We may also use your personal
information in the following situations, which are likely to be rare:

 

		a)	Where we need to protect your interests (or someone else's interests)

 

		b)	Where it is needed in the public interest or for official purposes

 

		6.	Failing to provide personal information

 

If you fail to provide certain
information when requested, we may not be able to perform the contract we have entered into with you (such as paying you or providing
a benefit), or we may be prevented from complying with our legal obligations (such as to ensure the health and safety of our workers).

 

    23

     

    

 

		7.	Change of purpose

 

We will only use your personal
information for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason
and that reason is compatible with the original purpose. If we need to use your personal information for an unrelated purpose,
we will notify you and we will explain the legal basis which allows us to do so.

 

Please note that we may process
your personal information without your knowledge or consent, in compliance with the above rules, where this is required or permitted
by law.

 

		8.	Special categories of personal information

 

We may need to collect and use
 "Special categories" of particularly sensitive personal information. We need to have further justification for collecting,
storing and using this type of personal information. We may process special categories of personal information in the following
circumstances:

 

		·	With your explicit written consent for
example where it is needed to assess your working capacity on health grounds, subject to appropriate confidentiality safeguards.

 

		·	Where we need to carry out our legal obligations
and in line with our data protection policy.

 

		·	Where it is needed in the public interest,
such as for equal opportunities monitoring.

 

Less commonly, we may process
this type of information where it is needed in relation to legal claims

 

We may
use your particularly sensitive personal information in the following ways: to deal with any absences on the grounds of sickness,
to obtain information about fitness for work, to ensure your health and safety in the workplace, to provide appropriate workplace
adjustments, to administer benefits, for equal opportunities monitoring

 

Do we
need your consent?

 

We do not need your consent
if we use special categories of your personal information in accordance with our written policy to carry out our legal obligations
or exercise specific rights in the field of employment law. In limited circumstances, we may approach you for your written consent
to allow us to process certain particularly sensitive data. If we do so, we will provide you with full details of the information
that we would like and the reason we need it, so that you can carefully consider whether you wish to consent. You should be aware
that it is not a condition of your contract with us that you agree to any request for consent from us.

 

		9.	Information about criminal convictions

 

We may only use information
relating to criminal convictions where the law allows us to do so. This will usually be where such processing is necessary to carry
out our obligations and provided we do so in line with our data protection policy

 

We may also use information
relating to criminal convictions where it is necessary in relation to legal claims.

 

    24

     

    

 

We will only collect information
about criminal convictions if it is appropriate given the nature of the role and where we are legally able to do so. Where appropriate,
we will collect information about criminal convictions as part of the recruitment process or we may be notified of such information
directly by you in the course of you working for us. We will use information about criminal convictions and offences in the following
ways: in order to check whether you are suitable to work for us.

 

		10.	Who will you share my personal information with?

 

We may have to share your data
with third parties, including third-party service providers. Specifically, these currently include the pension provider, Royal
London of 55 Gracechurch Street, London, EC3V 0RL, to be able to fulfil our obligations to you under the automatic enrolment requirements
for pension and the payroll provider, Mattocks Grindley of 18 Mulberry Avenue, Turnstone Park, Widnes, Cheshire, WA8 0WN to fulfil
our obligation to pay you your salary.

 

We require third parties to
respect the security of your data and to treat it in accordance with the law.

 

We may disclose your relevant
personal information freely between the member companies of our group, which at the moment is SmartKem Limited (registered in England
under number 06652152 whose registered office is at Optic Technium, Ffordd William Morgan, St. Asaph Business Park, St. Asaph,
Clwyd, LL17 0JD.

 

		11.	Why might you share my personal information with third parties?

 

We will share your personal
information with third parties where required by law, where it is necessary to administer the working relationship with you or
where we have another legitimate interest in doing so. For example, in order to receive HR or legal advice, with our pension provider,
or with HMRC.

 

		12.	How secure is my information with third-party service providers?

 

All our third-party service
providers are required to take appropriate security measures to protect your personal information in line with our policies. We
do not allow our third-party service providers to use your personal data for their own purposes. We only permit them to process
your personal data for specified purposes and in accordance with our instructions.

 

		13.	How secure is my personal information?

 

We have put in place appropriate
security measures to prevent your personal information from being accidentally lost, used or accessed in an unauthorised way, altered
or disclosed. In addition, we limit access to your personal information to those employees, agents, contractors and other third
parties who have a business need to know. They will only process your personal information on our instructions and they are subject
to a duty of confidentiality.

 

Third parties will only process
your personal information on our instructions and where they have agreed to treat the information confidentially and to keep it
secure.

 

We have put in place procedures
to deal with any suspected data security breach and will notify you and any applicable regulator of a suspected breach where we
are legally required to do so.

 

    25

     

    

 

		14.	How long will you use my information for?

 

We will only retain your personal
information for as long as necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal,
accounting, or reporting requirements. The minimum period of retention of your personal information will be 6 years post-employment.
Different types of data have different minimum retention periods. More information on this is available from HR.

 

To determine the appropriate
retention period for personal data, we consider the amount, nature, and sensitivity of the personal data, the potential risk of
harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether
we can achieve those purposes through other means, and the applicable legal requirements.

 

In some circumstances we may
anonymise your personal information so that it can no longer be associated with you, in which case we may use such information
without further notice to you. Once you are no longer an employee, worker or contractor of the company we will retain and securely
destroy your personal information in accordance with our data retention policy.

 

		15.	Your duty to inform us of changes

 

It is important that the personal
information we hold about you is accurate and current. Please keep us informed if your personal information changes during your
working relationship with us by informing the HR Department.

 

		16.	Your rights in connection with personal information

 

Under certain circumstances,
by law you have the right to:

 

		·	Request access to your personal
information (commonly known as a "data subject access request"). This enables you to receive a copy of the personal information
we hold about you and to check that we are lawfully processing it.

 

		·	Request correction of the personal
information that we hold about you. This enables you to have any incomplete or inaccurate information we hold about you corrected.

 

		·	Request erasure of your personal
information. This enables you to ask us to delete or remove personal information where there is no good reason for us continuing
to process it. You also have the right to ask us to delete or remove your personal information where you have exercised your right
to object to processing (see below).

 

		·	Object to processing of your personal
information where we are relying on a legitimate interest (or those of a third party) and there is something about your particular
situation which makes you want to object to processing on this ground. You also have the right to object where we are processing
your personal information for direct marketing purposes.

 

		·	Request the restriction of processing
of your personal information. This enables you to ask us to suspend the processing of personal information about you, for example
if you want us to establish its accuracy or the reason for processing it.

 

    26

     

    

 

		·	Request the transfer of your personal
information to another party.

 

		·	Report a data breach of your personal
information should you feel it has not been processed or stored in accordance with GDPR.

 

If you want to review, verify,
correct or request erasure of your personal information, object to the processing of your personal data, or request that we transfer
a copy of your personal information to another party, please contact the HR Department.

 

If you wish to make a data subject
access request of find out more about this process please contact the HR Department

 

You will not have to pay a fee
to access your personal information (or to exercise any of the other rights). However, we may charge a reasonable fee if your request
for access is clearly unfounded or excessive. Alternatively, we may refuse to comply with the request in such circumstances.

 

We may need to request specific
information from you to help us confirm your identity and ensure your right to access the information (or to exercise any of your
other rights). This is another appropriate security measure to ensure that personal information is not disclosed to any person
who has no right to receive it.

 

		17.	Right to withdraw consent

 

In the limited circumstances
where you may have provided your consent to the collection, processing and transfer of your personal information for a specific
purpose, you have the right to withdraw your consent for that specific processing at any time. To withdraw your consent, please
contact the HR Department, once we have received notification that you have withdrawn your consent, we will no longer process your
information for the purpose or purposes you originally agreed to, unless we have another legitimate basis for doing so in law.
Please be aware that there are likely to be implications on our ability to continue our working relationship in the event that
we are not able to process your personal information.

 

		18.	Changes to this privacy notice

 

We reserve the right to update
this privacy notice at any time, and we will provide you with a new privacy notice when we make any substantial updates. We may
also notify you in other ways from time to time about the processing of your personal information.

 

		19.	Who to contact

 

If you have any questions or
concerns comments regarding our data processing practices, you can contact the HR Department or CEO.

 

Further information on data
protection (including your right to complain about the use of your personal data) can be found on The Information Commissioner's
Office (ICO), website www.ico.org.uk

 

    27

     

    

 

Schedule 2

 

Dr Simon Ogier

 

Temporal Lodge

 

Shirley Avenue

 

Ripon

 

North Yorkshire

 

HG4 1SP

 

Dear Simon,

 

Agreement to opt out of maximum weekly
working time

 

Under regulation 4(1) of the Working
Time Regulations 1998 a worker’s average working time, including overtime, must not exceed 48 hours a week unless the worker
has previously agreed otherwise in writing.

 

Please sign below to confirm your agreement
that this limit on your working hours will not apply, and that your average working time may therefore exceed 48 hours a week.

 

Either of us may terminate this agreement
by giving three months’ written notice at any time. Unless it is terminated in this way, this agreement shall remain in force
until your employment with us ends.

 

You may choose whether to sign this agreement
and we will not subject you to any detriment if you do not sign it or if you exercise your right to terminate it.

 

Yours sincerely

 

 

		 	 
	SmartKem Limited
	 
	I agree that the statutory maximum average working time of 48 hours a week shall not apply to my employment with SmartKem Limited and that my average working time may therefore exceed 48 hours a week.

 

 

	Signed	/s/ Simon Ogier	 
	 
	by Dr Simon Ogier
	 
	Date 	 	 	 

 

    28Exhibit 10.9

 

 

Dated 2021

 

 

 

 

 

SMARTKEM LIMITED

 

and

 

B BROWN CONSULTANTS LIMITED

 

 

 

 

 

 

 

CONSULTANCY AGREEMENT

 

 

    	1

     

    

 

INDEX

 

	1.	 	 	Interpretation	 	 	3
	2.	 	 	Term of Engagement	 	 	6
	3.	 	 	Duties	 	 	6
	4.	 	 	Fees	 	 	8
	5.	 	 	Expenses	 	 	8
	6.	 	 	Other Activities	 	 	8
	7.	 	 	Confidential Information	 	 	9
	8.	 	 	Data Protection	 	 	9
	9.	 	 	Intellectual Property	 	 	10
	10.	 	 	Insurance and Liability	 	 	12
	11.	 	 	Termination	 	 	12
	12.	 	 	Obligations upon and following Termination	 	 	13
	13.	 	 	Consultant Status	 	 	14
	14.	 	 	Notices	 	 	15
	15.	 	 	Entire Agreement and Previous Contracts	 	 	15
	16.	 	 	Variation	 	 	16
	17.	 	 	Counterparts	 	 	16
	18.	 	 	Third Party Rights	 	 	16
	19.	 	 	Governing Law and Jurisdiction	 	 	16

 

    	2

     

    

 

This agreement is made the day
of 2021

 

PARTIES

 

	(1)	SmartKem Limited, Registered Number 06652152, whose Registered Office is at Optic Technium
Ffordd William Morgan, St. Asaph Business Park, St. Asaph, Clwyd, LL17 0JD (the Company).

 

	(2)	B
                                         Brown Consultants Limited, Registered Number 9070783, (the Consultant Company).

 

AGREED TERMS

 

	1.	Interpretation

 

	1.1	The definitions and rules of interpretation in this clause apply in this agreement (unless
the context requires otherwise).

 

Board: the board of directors
of the Company (including any committee of the board duly appointed by it).

 

Business Opportunities:
any opportunities which the Consultant Company becomes aware of during the Engagement which relate to the business of the Company
or any Group Company or which the Board reasonably considers might be of benefit to the Company or any Group Company.

 

Capacity: as agent, consultant,
director, employee, owner, partner, shareholder or in any other capacity.

 

Commencement Date: 1st
April 2021

 

Confidential Information:
means information (whether or not recorded in documentary form or stored on any magnetic or optical disk or memory) which is not
in the public domain relating to the business, services, products, affairs and finances of the Company or of any Group Company
for the time being confidential to it or to them and trade secrets (including, without limitation, technical data and know how)
relating to the business of the Company or of any Group Company or of any of its or their suppliers, customers or business contacts
including but not limited to:

 

		(i)	contractual arrangements in place between the Company or any Group Company and its or their suppliers
or customers;

 

		(ii)	any database (as amended from time to time) of customers or suppliers or prospective customers
and suppliers;

 

		(iii)	strategic and operational business plans;

 

		(iv)	customers, customer contact details and details of customer’s particular requirements;

 

    	3

     

    

 

		(v)	identities and contact details of suppliers and details of their particular terms of supply;

 

		(vi)	prices, fee structures, costings, funding arrangements, profit margins and other financial information
concerning the Company or any Group Company;

 

		(vii)	marketing strategies and tactics;

 

		(viii)	research and development;

 

		(ix)	current activities and current and future plans relating to development or sales including the
timing of all and any such matters;

 

		(x)	personal data relating to employees or contractors engaged by the Company or any Group Company;

 

		(xi)	information about manufacturing processes, methods or techniques employed by the Company or any
Group Company.

 

Engagement: the engagement
of the Consultant Company by the Company on the terms of this agreement.

 

Group Company: the Company,
any company of which it is a Subsidiary (its holding company) and any other Subsidiaries of any such holding company.

 

Individual: Dr Beverley
Brown

 

Insurance Policies: commercial
general liability insurance cover, employer’s liability insurance cover and public liability insurance cover.

 

Intellectual Property Rights:
patents, rights to inventions, copyright and related rights, trade-marks, trade names and domain names, rights in get-up, rights
in goodwill or to sue for passing off, rights in designs, rights in computer software, database rights, rights in confidential
information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered
or unregistered and including all applications (or rights to apply) for, and renewals or extensions of, such rights and all similar
or equivalent rights or forms of protection which may now or in the future subsist in any part of the world.

 

Invention: any invention,
idea, discovery, development, improvement or innovation made by the Consultant Company, Individual or Substitute in the provision
of the Services, whether or not patentable or capable of registration, and whether or not recorded in any medium.

 

Key Person: shall mean
any person who on the Termination Date is engaged in the Technology Field and who is or has been employed, engaged or otherwise
had dealings with the Company or any Group Company.

 

Pre-Contractual Statement:
any undertaking, promise, assurance, statement, representation, warranty or understanding (whether in writing or not) of any person
(whether party to this agreement or not) relating to the Engagement other than as expressly set out in this agreement or any documents
referred to in it.

 

    	4

     

    

 

Restricted
Business:any business activity conducted by the Company
or any Group Company with which the Consultant Company and the Individual have been materially concerned during the 12 months immediately
preceding the Termination Date.

 

Services: the services
to be provided as referred to in clause 3 and as more particularly described at Appendix A.

 

Subsidiary: in relation
to a company (a holding company) means a subsidiary (as defined in section 1159 of the Companies Act 2006) and any other company
which is a subsidiary (as so defined) of a company which is itself a subsidiary of such holding company.

 

Substitute: a substitute
for the Individual appointed under the terms of clause 3.3.

 

Technology Field: the
technology area in which the Services are being provided and refers specifically to any aspect of organic semiconductor materials
including but not limited to; IPR; novel molecule/polymer design; chemistry routes; materials purification and characterisation;
semiconductor formulations thereof; electronic device fabrication and testing and their use in Thin Film Transistors for display
backplanes and any general printed electronics applications.

 

Termination Date: the
date of termination of this agreement howsoever arising.

 

Works: all records, reports,
documents, papers, drawings, designs, transparencies, photos, graphics, logos, typographical arrangements, software, and all other
materials in whatever form, including but not limited to hard copy and electronic form, prepared by the Consultant Company, Individual
or Substitute in the provision of the Services.

 

	1.2	The headings in this agreement are inserted for convenience only and shall not affect its construction.

 

	1.3	A reference to a particular law is a reference to it as it is in force for the time being taking
account of any amendment, extension, or re-enactment and includes any subordinate legislation for the time being in force made
under it.

 

	1.4	A reference to one gender includes a reference to the other gender.

 

	1.5	The schedules to this agreement form part of (and are incorporated into) this agreement.

 

    	5

     

    

 

	2.	Term of Engagement

 

	2.1	The Company shall engage the Consultant Company and the Consultant Company shall make available
to the Company the Individual or Substitute to provide the Services on the terms of this agreement. The Consultant Company warrants
that it has the right to enter into this Agreement and provide the services of the Individual.

 

	2.2	The Engagement shall commence on the Commencement Date and shall continue, subject to the remaining
terms of this agreement, until it terminates on the third anniversary of the Commencement Date without the need for notice, unless
and until terminated:

 

		2.2.1	as provided by the terms of this Agreement; or

 

		2.2.2	by either party giving to the other not less than 12 months’ prior written notice.

 

	3.	Duties

 

	3.1	During the Engagement the Consultant Company shall and (where appropriate) shall procure that the
Individual or Substitute shall:

 

		3.1.1	provide the Services set out at Appendix A with all due care, skill and ability and use all reasonable
endeavours to promote the interests of the Company; and

 

		3.1.2	promptly give to the Board all such information and reports as it may reasonably require in connection
with matters relating to the provision of the Services or the business of the Company or any Group Company.

 

	3.2	If the Individual is unable to provide the Services due to illness or injury the Consultant Company
shall advise the Company of that fact as soon as reasonably practicable. In the event that no Substitute is appointed under clause
3.3 below a pro rata reduction will be applied to the Consultant Company’s fee.

 

	3.3	The Consultant Company may, with the prior written approval of the Board, appoint a suitably qualified
and skilled Substitute to perform the Services instead of the Individual provided that the Substitute shall be required to enter
into direct undertakings with the Company, including with regard to confidentiality and intellectual property. If the Company accepts
the Substitute, the Consultant Company shall continue to invoice the Company in accordance with clause 4 and shall be responsible
for the remuneration of the Substitute.

 

	3.4	The Consultant Company shall procure that the Individual or Substitute is available at all times
on reasonable prior notice to provide such assistance or information as the Company may require.

 

	3.5	Unless it or she has been specifically authorised to do so by the Company in writing, neither the
Consultant Company, nor the Individual, nor the Substitute shall:

 

    	6

     

    

 

		3.5.1	have any authority to incur any expenditure in the name of or for the account of the Company; or

 

		3.5.2	hold itself or herself out as having authority to bind the Company.

 

	3.6	The Consultant Company shall and shall procure that the Individual or Substitute shall, comply
with all reasonable standards of safety and comply with the Company's health and safety procedures from time to time in force at
the premises where the Services are provided and report to the Company any unsafe working conditions or practices.

 

	3.7	The Consultant Company will be responsible for providing all and any tools or equipment required
to perform the Services.

 

	3.8	The Consultant Company undertakes to the Company that during the Engagement it shall take all reasonable
steps to offer (or cause to be offered) to the Company any Business Opportunities as soon as practicable after the same shall have
come to its knowledge and before such opportunities shall have been offered to any other party.

 

	3.9	Provided always that the Consultant Company procures that the terms as to Confidential Information
set out in clause 7 are adhered to the Consultant Company may use another person, firm or company to perform any administrative,
clerical or secretarial functions which are reasonably incidental to the provision of the Services provided that the Company will
not be liable to bear the cost of such functions.

 

	3.10	The Consultant Company shall, and shall procure that the Individual shall:

 

		3.10.1	comply with all applicable laws, regulations, codes and sanctions relating to anti-bribery and
anti-corruption including but not limited to the Bribery Act 2010 (“Relevant Requirements”);

 

		3.10.2	not engage in any activity, practice or conduct which would constitute an offence under sections
1, 2 or 6 of the Bribery Act 2010 if such activity, practice or conduct had been carried out in the UK;

 

		3.10.3	have and shall maintain in place throughout the term of this agreement its own policies and procedures,
including but not limited to adequate procedures under the Bribery Act 2010, to ensure compliance with the Relevant Requirements
and will enforce them where appropriate;

 

		3.10.4	immediately notify the Client if a foreign public official becomes an officer or employee of the
Consultant Company or acquires a direct or indirect interest in the Consultant Company (and the Consultant Company warrants that
it has no foreign public officials as officers, employees or direct or indirect owners at the date of this agreement);

 

    	7

     

    

 

	4.	Fees

 

	4.1	In consideration of the provision of the Services during the Engagement, the Company shall within
30 days of receipt of an invoice submitted in accordance with clause 4.2, pay to the Consultant Company a consultancy fee of £820.00
per day plus VAT such fee to be payable by bank transfer monthly in arrears. For the purposes of this clause, a day shall comprise
8 hours and the Consultant Company shall be paid pro rata for part days on the basis of an hourly rate of £102.50.

 

	4.2	On the last working day of each month during the Engagement, the Consultant Company shall submit
to the Company an invoice which gives details of the hours which the Individual or any Substitute has worked and the Services which
have been provided by the Consultant Company and the amount of the fee payable for such Services during that month.

 

	4.3	The Company shall be entitled to deduct from the fees (and any other sums) due to the Consultant
Company any sums that the Consultant Company, Individual or Substitute may owe to the Company or any Group Company at any
time.

 

	4.4	The Individual or Substitute will not be entitled to receive holiday pay or any special absence
pay from the Company in any circumstances. The Individual is not entitled to receive any form of company benefits or partake in
any pension run by the Company.

 

	5.	Expenses

 

	5.1	The Company shall reimburse (or procure the reimbursement of) all reasonable expenses properly
and necessarily incurred by the Consultant Company or the Individual or Substitute in the course of the Engagement and in compliance
with the Company’s expenses policies for contractors, subject to production of receipts, including (without limitation) business
travel and electronic communication costs.

 

	5.2	If the Individual or Substitute is required to travel abroad in connection with the provision of
the Services the Consultant Company shall be responsible for any necessary insurances, inoculations and immigration requirements.

 

	6.	Other Activities

 

	6.1	Nothing in this agreement shall prevent the Consultant Company (including its shareholders and
directors) or Individual from being engaged, concerned or having any financial interest in any Capacity in any other business,
trade, profession or occupation during the Engagement provided that:

 

		6.1.1	such activity does not cause a breach of any of the Consultant Company's obligations under this
agreement; and

 

		6.1.2	the Consultant Company shall not and shall procure that the Individual or Substitute shall not,
engage in any such activity if it relates to a business or Technology Field which, in the sole direction of the Company, is similar
to or in any way competitive with the business of the Company or any Group Company without the prior written consent of the Board.

 

    	8

     

    

 

	7.	Confidential Information

 

	7.1	The Consultant Company acknowledges that in the course of the Engagement it and the Individual
or Substitute will have access to Confidential Information. The Consultant Company has therefore agreed to accept the restrictions
in this clause 7.

 

	7.2	The Consultant Company shall not and shall procure that the Individual or Substitute or any director,
officer or shareholder of the Consultant Company shall not (except in the proper course of its or her duties) either during the
Engagement or at any time after the Termination Date, use or disclose to any person, firm or company (and shall use its best endeavours
and procure that the Individual and Substitute shall use her best endeavours to prevent the publication or disclosure of) any Confidential
Information. This restriction does not apply to:

 

		7.2.1	any use or disclosure authorised by the Company or required by law; or

 

		7.2.2	any information which is already in, or comes into, the public domain otherwise than through the
Consultant Company's or the Individual’s unauthorised disclosure.

 

	7.3	All documents, manuals, hardware and software provided for the Individual’s use by the Company
and any data or documents (including copies) produced, maintained or stored on the Company’s computer systems or other electronic
equipment (including mobile phones if provided by the Company) remain the property of the Company.

 

	7.4	The Company reserves any right or remedy (including but not limited to an application through the
courts for injunctive relief) that it may have now, or in the future, in connection with, or arising from any breach of this clause
7.

 

	8.	Data Protection

 

	8.1	The Consultant Company shall procure that the Individual consents to the Company and any Group
Company holding and processing data relating to her for legal, personnel, administrative and management purposes and in particular
to the processing of any "sensitive personal data" (as defined in the General Data Protection Regulation (GDPR)) relating
to the Individual including, as appropriate:

 

		8.1.1	information about the Individual's physical or mental health or condition in order to monitor sick
leave and take decisions as to the Individual's fitness to perform the Services;

 

		8.1.2	the Individual's racial or ethnic origin or religious or similar beliefs in order to monitor compliance
with equal opportunities legislation;

 

		8.1.3	information relating to any criminal proceedings in which the Individual has been involved for
insurance purposes and in order to comply with legal requirements and obligations to third parties.

 

	8.2	The Consultant Company consents (and shall procure that the Individual and Substitute consents)
to the Company making such information available to any Group Company, those who provide products or services to the Company and
any Group Company (such as advisers), regulatory authorities, governmental or quasi- governmental organisations and potential purchasers
of the Company or any part of its business.

 

    	9

     

    

 

	8.3	The Consultant Company consents (and shall procure that the Individual and Substitute consents)
to the transfer of such information to the Company's and any Group Company's business contacts outside the European Economic Area
in order to further its or their business interests.

 

	9.	Intellectual Property

 

	9.1	The Consultant Company warrants to the Company that it has obtained
from the Individual a written and valid assignment of all existing and future Intellectual Property Rights created during the course
of providing the Services including (but not limited to) all such rights in the Works and Inventions
and of all materials embodying such rights and a written irrevocable waiver of all the Individual’s
statutory moral rights in the Works, to the fullest extent permissible by law, and that the Individual shall hold on trust for
the Consultant Company such rights in which the legal title has not passed (or will not pass) to the Consultant Company. The Consultant
Company shall provide to the Company a copy of this assignment on or before the commencement date.

 

	9.2	The Consultant Company hereby assigns to the Company all existing and future Intellectual Property
Rights created during the course of providing the Services including (but not limited to) all such rights in the Works and the
Inventions and all materials embodying such rights to the fullest extent permitted by law. Insofar as they do not so vest automatically
by operation of law or under this agreement, the Consultant Company holds legal title in such rights and inventions on trust for
the Company.

 

	9.3	The Consultant Company undertakes:

 

		9.3.1	to notify to the Company in writing full details of any Works and Inventions promptly on their
creation;

 

		9.3.2	to keep confidential details of all Inventions;

 

		9.3.3	whenever requested to do so by the Company and in any event on the termination of the Engagement,
promptly to deliver to the Company all correspondence, documents, papers and records on all media (and all copies or abstracts
of them), recording or relating to any part of the Works and the process of their creation which are in its possession, custody
or power;

 

		9.3.4	not to register nor attempt to register any of the Intellectual Property Rights in the Works, nor
any of the Inventions, unless requested to do so by the Company;

 

		9.3.5	to do all acts necessary to confirm that absolute title in all Intellectual Property Rights in
the Works and the Inventions has passed, or will pass, to the Company and

 

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		9.3.6	to notify the Company immediately upon becoming aware that the Works and/or Inventions infringe
or may infringe a third party’s Intellectual Property Rights.

 

and confirms that the Individual
has given written undertakings in the same terms to the Consultant Company.

 

	9.4	The Consultant Company warrants to the Company that:

 

		9.4.1	The Inventions and Works are original works created by the Consultant Company and/or the Individual;

 

		9.4.2	it has not given and will not give permission to any third party to use any of the Works or the
Inventions, nor any of the Intellectual Property Rights in the Works;

 

		9.4.3	it is unaware of any use by any third party of any of the Works or Intellectual Property Rights
in the Works;

 

		9.4.4	it will use best endeavours to ensure that the use by the Company of the Works, Inventions
or the Intellectual Property Rights created during the course of the Services will not infringe the rights of any third party;
and

 

confirms that the Individual
has given written undertakings in the same terms to the Consultant Company.

 

	9.5	The Consultant Company acknowledges that no further remuneration or compensation other than that
provided for in this agreement is or may become due to the Consultant Company in respect of the performance of its obligations
under this clause 9.

 

	9.6	The Consultant Company undertakes, at the expense of the Company, at any time either during or
after the Engagement, to execute all documents, make all applications, give all assistance and do all acts and things as may, in
the opinion of the Board, be necessary or desirable to vest the Intellectual Property Rights in, and to register them in, the name
of the Company and to defend the Company against claims that works embodying Intellectual Property Rights or Inventions infringe
third party rights, and otherwise to protect and maintain the Intellectual Property Rights in the Works and the Inventions. The
Consultant Company confirms that the Individual has given written undertakings in the same terms to the Consultant Company.

 

	9.7	The Consultant Company hereby irrevocably appoints the Company to be its attorney to execute and
do any such instrument or thing and generally to use its name for the purpose of giving the Company or its nominee the benefit
of this clause 9 and acknowledges in favour of a third party that a certificate in writing signed by any director or the secretary
of the Company that any instrument or act falls within the authority conferred by this clause 9 shall be conclusive evidence that
such is the case.

 

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	9.8	The Company reserves any right or remedy (including but not limited to an application through the
courts for injunctive relief) that it may have now, or in the future, in connection with, or arising from any breach of this clause
9.

 

	10.	Insurance and Liability

 

	10.1	The Consultant Company shall have liability for and shall indemnify the Company for any loss, liability,
costs (including reasonable legal costs), damages or expenses arising from any breach by the Consultant Company or the Individual
or Substitute engaged by it of the terms of this agreement including any negligent or reckless act, omission or default in the
provision of the Services. The Consultant Company shall maintain in force during the Engagement full and comprehensive Insurance
Policies in respect of the provision of the Services in order to indemnify the Company for any loss, liability or costs (including
reasonable legal costs) incurred by the Company in connection with the provision of the Services.

 

	10.2	The Consultant Company shall ensure that the Insurance Policies are taken out with reputable insurers
acceptable to the Company and that the level of cover and other terms of insurance are acceptable to and agreed by the Company.

 

	10.3	The Consultant Company shall on request supply to the Company copies of such Insurance Policies
and evidence that the relevant premiums have been paid.

 

	10.4	The Consultant Company shall comply with all terms and conditions of the Insurance Policies at
all times for the duration of the provision of Services. If cover under the Insurance Policies shall lapse or not be renewed or
be changed in any material way or if the Consultant Company is aware of any reason why the cover under the Insurance Policies may
lapse or not be renewed or be changed in any material way, the Consultant Company shall notify the Company without delay.

 

	11.	Termination

 

	11.1	The Company may terminate the Engagement in writing with immediate effect from receipt of the letter
by the Consultant Company with no liability to make any further payment to the Consultant Company (other than in respect of amounts
accrued prior to the notified Termination Date) if at any time:

 

		11.1.1	the Consultant Company or the Individual or Substitute is guilty of any gross misconduct affecting
the business of the Company or any Group Company; or

 

		11.1.2	the Consultant Company or the Individual or Substitute commits any serious or repeated breach or
non-observance of any of the provisions of this agreement or repeatedly refuses or neglects to comply with any reasonable and lawful
directions of the Company; or

 

		11.1.3	the Individual is convicted of any criminal offence (other than an offence under any road traffic
legislation in the United Kingdom or elsewhere for which a fine or non-custodial penalty is imposed); or

 

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		11.1.4	the Consultant Company or the Individual or the Substitute is in the reasonable opinion of the
Board negligent and incompetent in the performance of the Services; or

 

		11.1.5	the Individual is declared bankrupt or makes any arrangement with or for the benefit of her creditors
or has a County Court Administration Order made against her under the County Court Act 1984; or

 

		11.1.6	the Consultant Company makes a resolution for its winding up, makes an arrangement or composition
with its creditors or makes an application to a court of competent jurisdiction for protection from its creditors or an administration
or winding up order is made or an administrator or receiver is appointed in relation to the Consultant Company; or

 

		11.1.7	the Individual and Substitute are each incapacitated (including by reason of illness or accident)
from providing the Services for a period of 60 consecutive working days each in any 52-week consecutive period; or

 

		11.1.8	the Consultant Company or the Individual or Substitute is found guilty of any fraud or dishonesty
or acts in any manner which in the opinion of the Board brings or is likely to bring the Individual or Consultant Company into
disrepute or is materially adverse to the interests of the Company or any Group Company.

 

		11.2	The rights of the Company under clause 11.1 are without prejudice to any other rights that it might
have at law to terminate the Engagement or to accept any breach of this agreement on the part of the Consultant Company as having
brought the agreement to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof.

 

		12.	Obligations upon and following Termination

 

		12.1	On the Termination Date the Consultant Company shall and shall procure that the Individual and
Substitute shall:

 

		12.1.1	immediately deliver to the Company all documents, books, materials, records, correspondence, papers
and information (on whatever media and wherever located) relating to the business or affairs of the Company or any Group Company,
their business contacts, any keys, and any other property of the Company or any Group Company, which is in her possession or under
her control save for information in the public domain.

 

		12.1.2	irretrievably delete any confidential information relating to the business of the Company or any
Group Company stored on any magnetic or optical disk or memory and all matter derived from such sources which is in her possession
or under her control outside the premises of the Company; and

 

		12.1.3	provide a signed statement that it or she has complied fully with its or her obligations under
this clause 12.1.

 

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		12.2	In consideration for the fees under this Agreement, the Consultant Company agrees that in order
to protect the Confidential Information, trade secrets and business connections of the Company to which the Consultant Company,
the Individual and Substitute will have access as a result of the Engagement, the Consultant Company shall not and shall procure
that the Individual and Substitute shall not, without the previous consent in writing of the Company, such consent not to be unreasonably
withheld by the Company, for the period of 6 months immediately after the termination of the Engagement howsoever arising (“the
First Period”), whether as principal or agent and whether alone or jointly with, or as a director, manager, partner, shareholder,
employee, consultant or otherwise

 

		12.2.1	carry on or be engaged, concerned or interested in any business which is similar to or which is
(or intends to be) in competition with the Restricted Business; or

 

		12.2.2	employ, engage or appoint or in any way cause to be employed, engaged or appointed a Key Person.

 

		12.2	In consideration of the payment set out in clause 12.3 the Consultant Company agrees to remain
bound by the obligations set out in clause 12.2 and agrees to procure that the Individual and Substitute comply with the restrictions
in clause 12.2 for a further period of 6 months immediately after the First Period (“the Second Period”)

 

		12.3	Subject to clause 12.4, the Company will make a payment to the Consultancy Company of a sum equivalent
to the fees paid to the Consultancy Company by the Company under the terms of this Agreement during the three months immediately
prior to the Termination Date (“The Restriction Payment”). The Restriction Payment shall be paid to the Consultant
Company in 6 equal monthly installments throughout the Second Period.

 

		12.4	If the Individual secures alternative income during the Second Period, the Consultancy Company
is required to immediately notify the Company and the installments of the Restriction Payment shall immediately cease to be payable.

 

		13.	Consultant Status

 

		13.1	The relationship of the Consultant Company (and the Individual) to the Company will be that of
independent contractor and nothing in this agreement shall render it (or the Individual or Substitute) an employee, worker, agent
or partner of the Company and the Consultant Company shall not hold itself out as such and shall procure that the Individual and
Substitute shall not hold themselves out as such.

 

		13.2	This agreement constitutes a contract for the provision of services and not a contract of employment
and accordingly the Consultant Company shall be fully responsible for and shall indemnify the Company or any Group Company for
and in respect of:-

 

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		13.2.1	any income tax, National Insurance and Social Security contributions and any other liability, deduction,
contribution, assessment or claim arising from or made in connection with the performance of the Services, where such recovery
is not prohibited by law. The Consultant Company shall further indemnify the Company or any Group Company against all reasonable
costs, expenses and any penalty, fine or interest incurred or payable by the Company or any Group Company in connection with or
in consequence of any such liability, deduction, contribution, assessment or claim other than where the latter arise out of the
Company’s or any Group Company negligence or wilful default.

 

		13.2.2	any liability for any employment-related claim or any claim based on worker status (including reasonable
costs and expenses) brought by the Individual or any Substitute against the Company arising out of or in connection with the provision
of the Services.

 

		13.3	The Company may at its option satisfy such indemnity (in whole or in part) by way of deduction
from any payments due to the Consultant Company. The Consultant Company agrees that it will direct that an amount of consideration
payable to it in respect of the sale by it of any shares in the Company be paid to the Company to satisfy any unpaid amounts in
respect of such indemnity on completion of such sale of shares.

 

		13.4	The Consultant Company warrants that it is not nor will it prior to the cessation of this agreement
become a Managed Service Company within the meaning of section 61B Income Tax (Earnings and Pensions) Act 2003.

 

		13.5	The Consultant Company warrants that if legislation changes in regard of independent contracts
and tax liabilities, in particular income tax, of the Consultant Company or the Company, this is accepted as a term of the contract
and has no impact on other existing terms.

 

		14.	Notices

 

		14.1	Any notice given under this agreement shall be in writing and signed by or on behalf of the party
giving it and shall be served by delivering it personally or sending it by pre-paid recorded delivery or registered post to the
relevant party at (in the case of the Company) its registered office for the time being and (in the case of the Consultant) her
last known address. Any such notice shall be deemed to have been received:

 

		14.1.1	if delivered personally, at the time of delivery;

 

		14.1.2	in the case of pre-paid recorded delivery or registered post, 48 hours from the date of posting;
and

 

		14.2	In proving such service, it shall be sufficient to prove that the envelope containing such notice
was addressed to the address of the relevant party and delivered either to that address or into the custody of the postal authorities
as a pre-paid recorded delivery or registered post.

 

		15.	Entire Agreement and Previous Contracts

 

		15.1	Each party on behalf of itself and (in the case of the Company, as agent for any Group Companies)
acknowledges and agrees with the other party (the Company acting on behalf of itself and as agent for each Group Company) that:

 

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		15.1.1	this agreement together with any documents referred to in it constitutes the entire agreement and
understanding between the Consultant Company and the Company and any Group Company and supersedes any previous agreement between
them relating to the Engagement (which shall be deemed to have been terminated by mutual consent);

 

		15.1.2	in entering into this agreement neither party nor any Group Company has relied on any Pre-Contractual
Statement; and

 

		15.1.3	the only remedy available to either party for breach of this agreement shall be for breach of contract
under the terms of this agreement and it shall have no right of action against any other party in respect of any Pre-Contractual
Statement. Nothing in this agreement shall, however, operate to limit or exclude any liability for fraud.

 

		16.	Variation

 

		16.1	No variation of this agreement shall be valid unless it is in writing and signed by or on behalf
of each of the parties.

 

		17.	Counterparts

 

		17.1	This agreement may be executed in any number of counterparts, each of which, when executed and
delivered, shall be an original, and all the counterparts together shall constitute one and the same instrument.

 

		18.	Third Party Rights

 

		18.1	The Contracts (Rights of Third Parties) Act 1999 shall not apply to this agreement and no person
other than the Consultant Company and the Company shall have any rights under it. The terms of this agreement or any of them may
be varied, amended or modified or this agreement may be suspended, cancelled or terminated by agreement in writing between the
parties or this agreement may be rescinded (in each case), without the consent of any third party.

 

		19.	Governing Law and Jurisdiction

 

		19.1	This agreement shall be governed by and construed in accordance with the law of England and Wales.

 

		19.2	Each party irrevocably agrees to submit to the exclusive jurisdiction of the courts of England
and Wales over any claim or matter arising under or in connection with this agreement.

 

This document has been executed as a deed
and is delivered and takes effect on the date stated at the beginning of it.

 

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APPENDIX A

 

SERVICES

 

		1.	The Individual shall provide advice in relation to the Company’s technical and commercial
strategy to the executives and Board of the Company to include attendance at Board meetings as required.

 

		1.	To provide technical services and support to a standard equivalent to that of Chief Scientific
Officer.

 

		2.	To ensure that the Company’s scientific and technical team are given adequate advice and
support on all scientific matters.

 

		3.	To keep the Company continually advised on the third-party IP landscape in the Technology Field
of the Services including freedom to operate matters.

 

		4.	To encourage and support the filing of new patent applications.

 

		5.	To operate to the ongoing year by year business objectives set down by the CEO (approved by the
Board).

 

		6.	To operate and help to manage the objectives of a rolling 3 month technical plan as agreed by
the CEO and CTO.

 

		7.	Where appropriate, to attend Board Meetings as a guest and appraise the Board on all relevant
scientific and technology matters.

 

		8.	Where appropriate and with a frequency mutually agreeable, to travel to support important commercial
projects at the request of the Company’s CEO.

 

The Services shall principally be performed
at the Company’s premises. From time to time the Individual or Substitute may also be required to perform the Services at
location other than the Company’s premises as notified by the Company and mutually agreed.

 

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	Executed as a deed by	)
	SmartKem Limited acting by	)
	Robert Bahns	)
	a Director	)     /s/ Robert Bahns
	 	      Director
	 
	in the presence of:
	 
	/s/ Ian Jenks
	 
	[Name, address and
	occupation of witness]
	 
	Executed as a deed by	)
	BAB Consultants Limited	)
	acting by Beverley Brown	)
	a Director   	)     /s/ Beverley Brown
	 	      Director
	 
	in the presence of:
	 
	/s/ Stephen Whitelegg
	 
	[Name, address and
	occupation of witness]

 

    18

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