Document:

Exhibit 10.6 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is made and entered into as of February 23, 2021, effective as of February
23. 2021 (the “Effective Time”), by and between SmartKem Inc., a Delaware corporation (the “Company”),
and Ian Jenks (“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the
Company and Executive desire for Executive to serve as the Chief Executive Officer and President of the Company, in accordance
with the terms and conditions of this Agreement, effective as of the Effective Time; and

 

NOW, THEREFORE,
in consideration of the foregoing and of the mutual covenants and obligations hereinafter set forth, and for good and valuable
consideration the receipt of which is hereby acknowledged by the parties hereto, and to provide the inducements set forth above,
the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.            Employment. The Company hereby offers Executive employment in accordance with the terms and conditions set forth
herein, and Executive hereby accepts such continued employment, in each case on the date hereof. Such continued employment shall
commence immediately as of the Effective Time, without further notice, upon the terms and conditions set forth herein.

 

2.            Position and Duties. 

 

2.1           Position. During the Term (as defined below), Executive will be employed on a full-time basis as Chief Executive
Officer and President of the Company and shall have the duties and responsibilities assigned by the Company from time to time consistent
with that position. Executive shall perform faithfully and diligently all duties assigned to Executive by the Board of Directors
of the Company (the “Board”). The Company reserves the right to modify Executive’s position and duties
at any time in its sole and absolute discretion; provided, that the duties assigned to Executive are consistent with the
position of an executive.

 

2.2           Best Efforts/Full-time. Executive shall expend Executive’s best efforts on behalf of the Company, and shall
abide by all policies of the Company applicable to Executive and all decisions made by the Company. Executive shall act in the
best interest of the Company at all times. Executive shall devote Executive’s full business time and efforts to the performance
of Executive’s assigned duties for the Company and SmartKem Limited, the sole stockholder of the Company (“SmartKem”);
provided, that nothing herein shall preclude Executive (a) from managing Executive’s and his family’s personal
affairs, (b) (i) from serving on the boards of directors of other for-profit companies that Executive is serving on the board
of as the Effective Date and such arrangements have been previously disclosed to the Board, or (ii) from engaging in charitable
activities, including serving on the boards of directors of non-profit organizations that such Executive is engaging in or serving
on the boards of as of the Effective Date and such arrangements have been previously disclosed to the Board or (c) subject to prior
approval by the Board, which may be given or withheld in its sole discretion, (i) from serving on the boards of directors
of other for-profit companies, or (ii) from engaging in charitable activities, including serving on the boards of directors
of non-profit organizations, as long as such activities in clauses (a), (b) and (c) individually or in the aggregate do not interfere
or conflict with Executive’s duties hereunder or create a potential business or fiduciary conflict (in each case, as determined
by the Company).

 

    	 	 	 

     

    

 

2.3           Other Positions. If requested by the Company, Executive shall serve as a director, manager or officer of the Company
or any Affiliate (as defined below) of the Company for no additional compensation. For purposes of this Agreement, (i) “Affiliate”
means, with respect to any Person (as defined below), any other Person directly or indirectly controlling, controlled by or under
common control with such specified Person, and (ii) “Person” means an individual, corporation, partnership,
limited liability company, joint venture, association, trust, unincorporated organization or other entity.

 

2.4           Compliance with Company Policies. Executive shall be in conformance and comply with all Company policies, rules and
regulations governing benefits and the conduct of their respective employees, now in effect, or as subsequently adopted or amended.

 

2.5           Work Location. Executive’s services shall be performed principally remotely; provided, however,
that at the Company’s request, Executive shall work at the Company’s offices. However, Executive may be required by
his job responsibilities to travel on Company business from time to time and Executive agrees to do so. Executive will spend up
to, but not more than, one hundred and seventy nine (179) days per year in Manchester, United Kingdom, tending to the business
at the offices of SmartKem. During Executive’s employment with the Company, Executive is responsible for obtaining and maintaining
in force all required permits and authorizations to work lawfully in the United States.

 

3.           Term. The employment relationship pursuant to this Agreement shall be for a term commencing at the Effective Time
and continuing for a term of three (3) years from the Effective Time, until terminated in accordance with Section 7 below.
The term of employment shall thereafter be deemed to be automatically extended, upon the same terms and conditions, for successive
periods of one (1) year, unless either party, at least sixty (60) days prior to the expiration of the original term or any extended
term, shall give written notice to the other of its intention not to renew such employment term. The period during which Executive
is employed pursuant to this Agreement, including any extension thereof in accordance with the preceding sentence, shall be referred
to as the “Term.” It is understood and agreed that, for purposes of this Agreement, the non-renewal of this
Agreement by Executive shall not be deemed to be a termination of Executive’s employment hereunder without “Cause”
(as defined in Section 7.1 hereof).

 

4.            Compensation.

 

4.1           Salary. As compensation for Executive’s performance of Executive’s duties hereunder, the Company shall
pay to Executive a salary at the annualized rate of $300,000 (the “Salary”), payable in substantially equal
installments in accordance with the Company’s normal payroll practices as in effect from time to time. The Company shall
deduct from each such installment all payroll taxes and other amounts required or permitted to be deducted or withheld under applicable
law or under any employee benefit plan or program in which Executive participates.

 

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4.2           Annual Target Bonus. In addition to the Salary, Executive shall be eligible for an annual discretionary bonus with
a target bonus opportunity equal to 30% of the Salary (the “Annual Bonus”) for each calendar year ending during
of the Term, as determined by performance targets which shall be set by the Board in consultation with Executive. Any Annual Bonus
for a calendar year, to the extent earned, shall be paid in a lump sum at a time established by the Board in its sole and absolute
discretion, but in no event later than March 15th of the year following the year during which such Annual Bonus relates.
The Annual Bonus shall not be deemed earned until the date that it is paid. Accordingly, in order for Executive to receive an Annual
Bonus (or any portion thereof), Executive must be actively employed by the Company at the time of such payment.

 

5.            Benefits.

 

5.1           Employee Benefits. Executive will be eligible for all welfare and retirement benefits generally available to executives
of the Company, in effect from time to time, subject to the terms and conditions of the Company’s benefit plan documents.
Unless and until the Company contracts for a health insurance plan for the Company, or if earlier, the Company hires any other
employee, the Company shall maintain an individual health reimbursement arrangement in accordance with the requirements under the
Department of Treasury Regulations 45 CFR Parts 144, 146, 147 and 155. The Company reserves the right to change or eliminate employee
benefits or change contribution levels, at any time and from time to time.

 

5.2           Paid Time Off. Executive shall be entitled to paid vacation, holidays, personal days and sick leave in accordance
with the policies, programs and practices of the Company in effect from time to time. Such vacation shall be taken at such intervals
as shall be appropriate and consistent with the proper performance of Executive’s duties hereunder.

 

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6.            Business Expenses. Executive will be reimbursed for reasonable, out-of-pocket business expenses incurred in the performance
of Executive’s duties on behalf of the Company. To obtain reimbursement, expenses must be submitted promptly with appropriate
supporting documentation in accordance with the Company’s policies and procedures.

 

7.            Termination of Executive’s Employment.

 

7.1           Termination for Cause by the Company. Although the Company anticipates a mutually rewarding employment relationship
with Executive, the Company may terminate Executive’s employment at any time for Cause. For purposes of this Agreement, “Cause”
is defined as:

 

(a)              
Executive’s conduct constituting misconduct in connection with the performance of his duties, including, without limitation,
fraud, theft, embezzlement, deceit or dishonesty, or wrongful appropriation for personal use or benefit of any property;

 

(b)              
Executive’s commission of any felony or other crime involving dishonesty or moral turpitude;

 

(c)              
Executive’s failure to perform the Executive’s duties and responsibilities to the Company, SmartKem or any of
their Affiliates (other than due to a Disability), disregard of or refusal to perform any lawful direction of the Board, or willful
or material violation of the Company’s policies or procedures, in each case which (if curable) is not cured within a period
of fifteen (15) days following written notice thereof from the Company or Board;

 

(d)              
Executive’s breach of this Agreement or any other agreement or contract between Executive and the Company SmartKem
or any of their Affiliates, which breach (if curable) is not cured within a period of fifteen (15) days following written notice
thereof from the Company or Board;

 

(e)              
Any (i) breach of (A) any fiduciary obligation or (B) covenant, agreement or duty to the Company, SmartKem or any of their
Affiliates relating to confidentiality, noncompetition, nonsolicitation, nondisparagement, or proprietary rights, or (ii) breach
of any obligation, covenant, agreement or duty to the Company, SmartKem or any of their Affiliates contained in Section 9 of this
Agreement;

 

(f)               
Executive’s engaging in any sexual harassment or sexual misconduct of any kind;

 

(g)              
Executive’s use of alcohol or controlled substances that impairs his ability to perform his duties and responsibilities
with respect to the Company, SmartKem or any of their Affiliates, or any willful or grossly negligent action or conduct by Executive
that affects or could reasonably be expected to adversely affect the Company, SmartKem or any of their Affiliates; and/or

 

(h)              
Executive’s violation in any material respect of any employment policy of the Company, which violation either is not
reasonably capable of being cured, or is not cured, within fifteen (15) days immediately following notice of such violation from
the Company or Board.

 

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In the event Executive’s
employment is terminated in accordance with this Section 7.1, Executive shall be entitled to receive only the Accrued Obligations
(as defined in Section 7.4). All other obligations of the Company to Executive pursuant to this Agreement shall become automatically
terminated and completely extinguished.

 

7.2           Termination Without Cause by the Company. The Company may terminate Executive’s employment under this Agreement
without Cause, which includes a non-renewal of the Term by the Company, at any time upon written notice to Executive, as set forth
below.

 

If Executive’s
employment is terminated pursuant to this Section 7.2, Executive shall, in full discharge of all of the Company’s
obligations to Executive, be entitled to receive, and the Company’s sole obligation to Executive under this Agreement or
otherwise shall be to pay or provide to Executive, the following:

 

(a)              
The Accrued Obligations (as defined below);

 

(b)              
Subject to Section 7.7, payments equal to six (6) months (the “Severance Period”) of Executive’s
Salary (at the rate in effect immediately prior to the date of termination (the “Termination Date”)), less applicable
withholdings and authorized deductions, to be paid in equal installments in accordance with the Company’s customary payroll
practices (the “Severance Payments”). The Severance Payments shall commence on the first regular payroll date
following Executive’s execution (and non-revocation) of the Release Agreement (as defined below);

 

(c)              
Subject to Section 7.7, and Executive's (A) timely election of, and continued eligibility for, continuation coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") and (B) continued compliance
with the obligations this Agreement, continued participation in the Company's group health plan at the Company’s expense
(to the extent permitted under applicable law and the terms of such plan) which covers Executive (and Executive's eligible dependents)
for a period of six (6) months (the “COBRA Assistance”); provided, that in the event that the Executive
obtains other full-time employment that offers group health benefits, such continuation of coverage by the Company under this Section
7.2(c) shall immediately cease. Notwithstanding the foregoing, the Company shall not be obligated to provide the continuation
coverage contemplated by this Section 7.2(c) if it would result in the imposition of excise taxes on the Company for failure
to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and the
Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable); provided, that if the Company's
group health plan is self-insured, the Company will report to the appropriate tax authorities taxable income to Executive equal
to the portion of the deemed cost of such participation (based on applicable COBRA rates) not paid by Executive, and, moreover,
that if the Company's obligation to make payments to Executive ceases as a result of the application of this sentence, then the
Company shall be obligated to pay Executive an amount in cash equal to the amount of premiums which otherwise would have been payable
by the Company as set forth above; and

 

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(d)              
Subject to Section 7.7, a pro-rata portion of the Annual Bonus payable for the calendar year in which such termination
occurs, based on the product of (x) the Annual Bonus computed at 100% of target that would have been payable with respect to such
calendar year had Executive’s employment not terminated, and (y) a fraction, the numerator of which is the number of days
during such calendar year up to and including the date of termination of Executive’s employment, and the denominator of which
is 365, payable on the date that the Annual Bonus for such calendar year would have been made had Executive remained employed by
the Company (the “Pro-Rated Bonus”).

 

7.3           Resignation by Executive for Good Reason by Executive. Executive may terminate Executive’s employment under
this Agreement for Good Reason (as defined below) at any time upon written notice to the Company, as set forth below.

 

(a)              
“Good Reason” means any of the following occurring without the consent of Executive: (i) a reduction
in Executive’s Salary, (ii) a material breach of this Agreement by the Company, or (iii) a material diminution in Executive’s
duties, authorities or responsibilities. In order for a termination to be considered for Good Reason, Executive must provide written
notice to the Company of the event within thirty (30) days from the date of occurrence of the event. Upon receipt of such timely
written notice, the Company shall have thirty (30) days to remedy the event, and failure to remedy the same shall entitle Executive
to resign for Good Reason.

 

(b)              
If Executive’s employment is terminated pursuant to this Section 7.3, Executive shall, in full discharge
of all of the Company’s obligations to Executive, be entitled to receive, and the Company’s sole obligation to Executive
under this Agreement or otherwise shall be to pay or provide to Executive the Accrued Obligations and, subject to Section 7.7,
the Severance Payments, the COBRA Assistance and the Pro-Rated Bonus. The Severance Payments shall commence on the first regular
payroll date following Executive’s execution (and non-revocation) of the Release Agreement (as defined below).

 

7.4           Voluntary
Resignation by Executive without Good Reason. Executive may voluntarily resign Executive’s position with the Company
at any time without Good Reason, on sixtey (60) days’ advance written notice to the Company. If Executive’s employment
is terminated pursuant to this Section 7.4, Executive shall, in full discharge of all of the Company’s obligations
to Executive, be entitled to receive, and the Company’s sole obligation under this Agreement or otherwise shall be to pay
or provide to Executive, the following (collectively, the “Accrued Obligations”):

 

(a)              
Executive’s earned, but unpaid, Salary through the Termination Date, payable in accordance with the Company’s
standard payroll practices;

 

(b)              
Executive’s accrued, but unused, vacation (to the extent payable pursuant to, and in accordance with, the Company’s
policies and applicable law);

 

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(c)              
expenses reimbursable under Section 6 above incurred on or prior to the Termination Date but not yet reimbursed;
and

 

(d)              
amounts or benefits (if any) that are vested amounts or vested benefits or that Executive is otherwise entitled to receive
under any plan, program, policy or practice (with the exception of those, if any, relating to severance) on the Termination Date,
in accordance with such plan, program, policy, or practice.

 

7.5           Termination of Employment due to Executive’s death or Disability. Executive’s employment under this Agreement
shall terminate automatically upon Executive’s death. The Company may terminate Executive’s employment under this Agreement
due to Executive’s Disability at any time upon written notice. If Executive’s employment under this Agreement terminates
due to his death or Disability, Executive or Executive’s estate, as the case may be, shall receive the Accrued Obligations.
For purposes of this Agreement “Disability” shall mean Executive’s physical or mental illness, which prevents
Executive from performing Executive’s material duties, with or without reasonable accommodation, for a period of (A) sixty
(60) consecutive calendar days or (B) an aggregate of ninety (90) calendar days out of any consecutive six (6) month period.

 

7.6           Termination of Employment Upon Expiration of the Term or Non-Renewal by Executive. This Agreement shall expire as
of, Executive’s employment with the Company shall terminate as of, and Executive shall only be entitled to Executive’s
Salary then in effect paid through, in each case, the last day of the Term unless this Agreement is renewed or the Term is otherwise
extended pursuant to a mutual agreement in writing by the Company and Executive. On the last day of the Term (absent such mutual
agreement), all other obligations of the Company to Executive pursuant to this Agreement shall be automatically terminated and
completely extinguished, except as provided in Section 9.9.

 

7.7           Release Agreement. In order to receive the Severance Payments, the COBRA Assistance and the Pro-Rated Bonus set forth
in Section 7.2 and Section 7.3 (if eligible), Executive must timely execute (and not revoke) a separation agreement
and general release (the “Release Agreement”) in a form as is determined acceptable to the Company in its sole
and absolute discretion within sixty (60) days following the Termination Date. Notwithstanding anything in this Agreement to the
contrary, in the event any such sixty (60) day period plus the first regularly scheduled payroll date following such sixty (60)
day period spans two (2) calendar years, then any Severance Payments payable hereunder will commence on the first regularly scheduled
payroll date of the second (2nd) calendar year if such date is later than the date on which payment would otherwise
have been made absent this proviso.

 

7.8           Post-Termination Breach. Notwithstanding anything to the contrary contained in this Agreement, the Company’s
obligations to provide Severance Payments, the COBRA Assistance and the Pro-Rated Bonus shall immediately cease if Executive breaches
any of the provisions of this Agreement, the Release Agreement or any other agreement Executive has with the Company, SmartKem
or any of their Affiliates.

 

7.9           Removal from any Boards and Positions. If Executive’s employment is terminated for any reason, then Executive
shall be deemed to, and shall, resign (i) from any board or other governing body to which he has been appointed or nominated
by or on behalf of the Company, and (ii) from any position with the Company, SmartKem or any of their Affiliates, including, but
not limited to, as an officer.

 

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8.            Covenants.

 

8.1           Confidential Information. While working for the Company, Executive may develop or acquire knowledge in Executive’s
work or from the Board, officers, employees, agents or consultants of the Company of Confidential Information relating to the Company,
its business or potential business or that of SmartKem or any Affiliate of SmartKem or the Company. “Confidential Information”
includes all trade secrets, know-how, show-how, technical, operating, financial, and other business information, whether or not
reduced to writing or other medium and whether or not marked or labeled confidential, proprietary or the like, specifically including,
but not limited to, information regarding source codes, software programs, computer systems, commission rates, loss experiences,
algorithms, formulae, works of authorship, techniques, documentation, models and systems, marketing, sales and pricing techniques,
designs, inventions, products, improvements, modifications, methodology, processes, concepts, records, files, memoranda, reports,
plans, proposals, price lists, client and supplier information, product development and project procedures.

 

With respect
to Confidential Information of the Company:

 

(a)              
Executive shall use Confidential Information only in the performance of Executive’s duties for the Company. Executive
shall not use Confidential Information at any time (during or after Executive’s employment with the Company) for Executive’s
personal benefit, for the benefit of any other Person, or in any manner adverse to the interests of the Company, SmartKem or any
of their Affiliates;

 

(b)              
Executive shall not disclose Confidential Information at any time (during or after Executive’s employment with the
Company) except to authorized personnel of the Company, unless the Company consents in advance in writing or unless the Confidential
Information indisputably becomes of public knowledge or enters the public domain (other than through Executive’s direct or
indirect act or omission);

 

(c)              
Executive shall safeguard the Confidential Information by all reasonable steps and abide by all policies and procedures
of the Company in effect from time to time regarding storage, copying and handling of documents; and

 

(d)              
Executive shall return all materials containing and/or relating to Confidential Information, together with all other property
of the Company to the Company when Executive’s employment relationship with the Company terminates or otherwise on demand
and, at that time Executive shall certify to the Company, in writing and under oath, that Executive has complied with this Agreement.
Executive shall not retain any copies or reproductions of correspondence, memoranda, reports, notebooks, drawings, photographs,
databases, or other documents or electronically stored information of any kind relating in any way to the business, potential business
or affairs of the Company.

 

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8.2           Inventions and Patents. Executive agrees that all inventions, innovations, improvements, technical information, systems,
software developments, methods, designs, analyses, drawings, reports, copyrights, service marks, trademarks, trade names, logos
and all similar or related information (whether patentable or unpatentable) which relate to Executive’s work for the Company
or which relate to the Company’s, SmartKem’s or any of their Affiliates’ businesses, research and development
or existing or future products or services and which are conceived, developed or made by Executive (whether or not during usual
business hours and whether or not alone or in conjunction with any other person) during the Term, together with all patent applications,
letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may
be granted for or upon any of the foregoing (collectively referred to in this Agreement as “Work Product”),
belong to the Company. Executive agrees to take reasonable steps to promptly disclose such Work Product to the Company and perform
all actions requested by the Company (whether during or after the Term) at the Company’s expense, to establish and confirm
such ownership (including the execution and delivery of assignments, consents, powers of attorney and other instruments) and to
provide reasonable assistance to the Company, at no out-of-pocket cost to Executive, in connection with the prosecution of any
applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences
relating to any Work Product. Executive agrees that any such copyrightable work is work made for hire by Executive for the Company.
Executive hereby assigns to the Company, or waives if not assignable, all of Executive’s “moral rights” in and
to all such Work Product, and agrees promptly to execute any further specific assignments or waivers related to moral rights at
the request of the Company. In the event that the Company is unable to secure Executive’s signature after reasonable effort
in connection with any patent, trademark, copyright, mask work or other similar protection relating to a Work Product, Executive
hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Executive’s agent and
attorney in fact, to act for and on Executive’s behalf and stead to execute and file any such application and to do all other
lawfully permitted acts to further the prosecution and issuance of patents, trademarks, copyrights, mask works or other similar
protection thereon with the same legal force and effect as if executed by Executive. Notwithstanding the foregoing, “work
product” does not include any information or materials that Executive creates or develops entirely on Executive’s own
time and for which no equipment, supplies, facilities, intellectual property, resources, employees or Confidential Information
of the Company were used, unless the information or materials (i) relate to the Company’s business, (ii) relate to the Company’s
actual or anticipated research or development or (iii) result from any work performed by Executive for the Company within the scope
of Executive’s employment.

 

8.3           Non-Competition.

 

(a)              
Scope. To protect the Company’s legitimate protectable interests in, among other things, the Company’s
Confidential Information, customer relationships and goodwill, Executive agrees that during the term of employment and for twelve
(12) months thereafter (the “Restricted Period”), Executive shall not, directly or indirectly, (a) in any geographic
location where the Executive performed direct, substantive services for any of the Company’s customers, (b) in which the
Executive provided services to Company, or (c) where the Executive’s use or disclosure of Confidential Information could
disadvantage the Company, become employed by, engage, invest or participate in any Competitive Business (defined below), provided,
however, that Executive may own, as a passive investor, publicly-traded securities of any corporation that competes with the business
of the Company so long as such securities do not, in the aggregate, constitute more than three percent 3%) of any class of outstanding
securities of such corporations.  For purposes of this Agreement, “Competitive Business” means (a)
any business engaged in the manufacturing of materials for organic thin-film transistors; or (b) any business or division or unit
of a larger enterprise in which the Company is actively engaged or has taken active plans to engage during the Executive’s
employment with the Company.

 

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(b)              
Reasonableness of Restrictions. Executive represents and agrees that the restrictions on competition, as to time,
geographic area, and scope of activity, required by this Section 8 are reasonable, are necessary to protect the goodwill
of the Company, do not impose a greater restraint than is necessary to protect the goodwill and business interests of the Company,
and are not unduly burdensome to Executive. Executive expressly acknowledges that the Company competes on a worldwide basis and
that the geographical scope of these limitations is reasonable and necessary for the protection of the Company’s trade secrets
and other confidential and proprietary information. Executive further agrees that these restrictions allow Executive an adequate
number and variety of employment alternatives, based on Executive’s varied skills and abilities. Executive represents that
Executive is willing and able to compete in other employment not prohibited by this Agreement.

 

8.4           Non-Solicitation; Non-Disparagement.

 

(a)              
Non-Solicitation of Employees, Customers or Suppliers. To protect the legitimate business interests of the Company
and in consideration of the Company’s willingness to provide the Executive access to its Confidential Information, customer
relationships and goodwill, Executive agrees that during the Restricted Period, the Executive will not directly or indirectly,
whether as employee, owner, sole proprietor, partner, shareholder, director, member, consultant, agent, founder, co-venture partner
or otherwise, (i) do anything to divert or attempt to divert from the Company any business of any kind, including, without limitation,
solicit or interfere with any of the Company’s customers, clients, members, business partners or suppliers (“Business
Partners”) with whom the Executive performed direct, substantive services during his/her employment or as to whom Executive
had access to Confidential Information where the Executive’s use or disclosure of Confidential Information could disadvantage
the Company, or (ii) solicit, induce, recruit or encourage any person engaged or employed by the Company to terminate his or her
employment or engagement.  This restriction shall not apply to any Business Partner with whom the Executive can demonstrate
he/she had a pre-existing relationship prior to his/her employment with the Company. 

 

(b)              
Non-Disparagement. Executive shall not, either directly or indirectly, disparage, or induce or encourage others to
disparage, the reputation of the Company, its services, its products or any of its current or former Affiliates, including SmartKem
or any of their respective members, officers, directors, employees, or agents.

 

8.5          Reformation if Necessary. To the extent permitted by applicable law, in the event a court of competent jurisdiction
determines that the geographic area, duration, or scope of activity of any restriction under this Section 8 is unenforceable,
the restrictions under this Section 8 shall not be terminated but shall be reformed and modified to the extent required
to render them valid and enforceable.

 

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8.6           Tolling of Restricted Period. The Restricted Period shall be extended for an amount of time equal to the time period
during which a court of competent jurisdiction determines that Executive was in violation of any provision of Section 8.3
or 8.4 and shall continue through any action, suit or proceedings arising out of or relating to Section 8.3
or 8.4.

 

8.7           No Defense. The existence or assertion of any claim of or by Executive, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of the covenants contained in this Section 8 (collectively,
the “Restrictive Covenants”).

 

8.8           Reasonableness; Injunction. Executive acknowledges and agrees that (i) Executive has obtained the advice of
counsel in connection with this Agreement, (ii) the Restrictive Covenants are reasonable in scope and in all other respects, (iii) any
violation of the Restrictive Covenants will result in irreparable injury to the Company, (iv) money damages would be an inadequate
remedy at law for the Company in the event of a breach of any of the Restrictive Covenants by Executive, and (v) specific performance
in the form of injunctive relief would be an adequate remedy for the Company. If Executive breaches or threatens to breach a Restrictive
Covenant, the Company shall be entitled, in addition to all other remedies, to an injunction restraining any such breach, without
any bond or other security being required and without the necessity of showing actual damages.

 

8.9           Preserved Rights. This Agreement is not intended to, and shall not, in any way prohibit, limit or otherwise interfere
with Executive’s protected rights under federal, state or local law to, without notice to the Company: (a) communicate or
file a charge with a government regulator; (b) participate in an investigation or proceeding conducted by a government regulator;
or (c) receive an award paid by a government regulator for providing information.

 

8.10         Cooperation. Subject to Section 8.9 of this Agreement, in the event that any action, suit, claim, hearing,
proceeding, arbitration, mediation, audit, assessment, inquiry or investigation (whether civil, criminal, administrative or otherwise)
(each, a “Proceeding”) is commenced by any governmental authority or other Person in connection with the Company
or any of its Affiliates, Executive agrees to cooperate in good faith with the Company or any such Affiliate to defend against
such Proceeding and, if an injunction or other order is issued in any such Proceeding, to cooperate in good faith with the Company
or any such Affiliate in its efforts to have such injunction or other order lifted. Such cooperation shall include, but not be
limited to, attending any telephone or in-person meetings, conferences, interviews, depositions, hearings, proceedings or preparation
sessions, and providing access to any books and records in Executive’s control, in each case, at the request of the Company
or any of its Affiliates or any of their respective representatives. Upon presentation of appropriate documentation, the Company
shall pay or promptly reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred
by the Executive in complying with this Section 8.10. In connection with any cooperation under this Section 8.10
following a termination of employment, unless Executive is receiving payment under Section 7.2 or 7.3, the Company
shall pay Executive a daily fee of $1,250 for any full day (and pro-rated for partial days of service) in which Executive’s
services used under this Section 8.10 are used.

 

    	 	-11-	 

     

    

 

9.            General Provisions.

 

9.1           Parties in Interest. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any Person
other than the Company and its Affiliates and Executive, or their successors or permitted assigns, any rights or remedies under
or by reason of this Agreement.

 

9.2           Amendment; Waiver. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver
is in writing and signed, in the case of an amendment, by the Company and Executive, or in the case of a waiver, by the party against
whom the waiver is to be effective. No oral amendment or modification shall be effective under any circumstances whatsoever. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power
or privilege, and no waiver in any one instance shall be effective with respect to any other instance or create a course of dealing.

 

9.3           Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of
any provision shall not affect the validity or enforceability of the other provisions hereof. If any term or other provision of
this Agreement, or the application thereof to any Person or any circumstance, is invalid, illegal or unenforceable, (a) a suitable
and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent
and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision
to other Persons, entities or circumstances shall not be affected by such invalidity, illegality or unenforceability, nor shall
such invalidity, illegality or unenforceability affect the validity or enforceability of such provision, or the application thereof,
in any other jurisdiction.

 

9.4           Governing Law. This Agreement and its negotiation, execution, performance or non-performance, interpretation, termination,
construction and all Proceedings that may be based upon, arise out of, or relate to this Agreement, or the transactions contemplated
hereby (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in
connection with this Agreement or as an inducement to enter this Agreement), shall be exclusively governed by, and construed in
accordance with, the laws of the State of Delaware regardless of laws that might otherwise govern under any applicable conflict
of laws principles.

 

9.5           Jurisdiction. Each party hereto hereby irrevocably and unconditionally: (i) consents and submits for itself
and its property in any Proceeding based upon, arising out of, or related to this Agreement and its negotiation, execution, performance,
non-performance, interpretation, termination, construction or the transactions contemplated hereby, or for recognition and enforcement
of any judgment in respect thereof, to the exclusive jurisdiction of the state and federal courts located in the State of Delaware;
(ii) consents that any such Proceeding may be brought in such courts, and waives any objection that it may now or hereafter have
to the venue of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agrees not
to plead or claim the same; (iii) agrees that service of process in any such Proceeding may be effected by mailing a copy thereof
by registered or certified mail (or any substantially similar form of mail), postage prepaid, to any party hereto at its or his
or her address set forth in this Agreement or at such other address of which the sender shall have been previously notified in
writing and in accordance with this Agreement; and (iv) agrees that nothing herein shall affect the right to effect service
of process in any other manner permitted by law. Each of the parties also agrees that any final, non-appealable judgment against
a party in connection with any Proceeding arising out of or relating to this Agreement shall be conclusive and binding on such
party and that such award or judgment may be enforced in any court of competent jurisdiction, either within or outside of the United
States. A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award
or judgment.

 

    	 	-12-	 

     

    

 

9.6           WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO
A JURY TRIAL OF ANY PROCEEDING BASED UPON, ARISING OUT OF, OR RELATED TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY
COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE PARTIES ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH
WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE PARTIES FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED
THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR
AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

 

9.7           Remedies Cumulative. All remedies provided in this Agreement are cumulative and in addition to all other remedies
which may be available at law or in equity.

 

9.8           Notices. All notices or other communications hereunder shall be deemed to have been duly given and effective upon
delivery if in writing and if served by personal delivery upon the party for whom it is intended, if delivered by registered or
certified mail, return receipt requested, or by a national courier service, or if sent by facsimile or electronic mail; provided,
that the facsimile or electronic mail is promptly confirmed by telephone confirmation thereof or followed by one of the other foregoing
permitted means of notice (other than facsimile or electronic mail), to the party at the address set forth below, or such other
address as may be designated in writing hereafter, in the same manner, by such party:

 

    	 	-13-	 

     

    

 

If to the Company, to:

 

Octopus Investments

33 Holborn

London

EC1N 2HT

Attn: Simon King, Ph.D.

Email: simon.king@octopusventures.com

 

with a copy to:

 

Lowenstein Sandler LLP

One Lowenstein Drive

Roseland, NJ 07068

Attention: John (“Jack”) Hogoboom

E-mail: jhogoboom@lowenstein.com

 

If to Executive, to him at the offices of the Company
with a copy to him at his home address, set forth in the records of the Company.

 

9.9           Survival. Notwithstanding anything herein to the contrary, each provision of this Agreement (other than Sections
1 through 6) shall survive the termination of this Agreement and termination of employment for any reason or Executive’s
ceasing to provide services to the Company to the extent necessary to give effect to its terms, including, without limitation,
Sections 8, 9, 10, 11, 12, and 13 of this Agreement.

 

9.10         Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile or electronic .pdf
submission), each of which shall be deemed an original, and all of which shall constitute one and the same agreement and shall
become effective when one or more counterparts have been signed by each of the parties and delivered (by telecopy, portable document
format (.pdf) or otherwise) to the other party, it being understood that both parties need not sign the same counterpart.

 

9.11         Defend Trade Secrets Act. Executive acknowledges receipt of the following notice under the Defend Trade Secrets Act:
An individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of
a trade secret if he/she (i) makes such disclosure in confidence to a federal, state, or local government official, either directly
or indirectly, or to an attorney and such disclosure is made solely for the purpose of reporting or investigating a suspected violation
of law; or (ii) such disclosure was made in a complaint or other document filed in a lawsuit or other proceeding if such filing
is made under seal. Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation
of law may disclose the employer's trade secrets to the attorney and use the trade secret information in the court proceeding if
the individual: (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret, except
pursuant to court order. Nothing contained herein will waive, limit or affect any rights of the Company under any applicable trade
secrets laws, including Defend Trade Secrets Act of 2016, which will be enforceable separate and apart from this Agreement.

 

    	 	-14-	 

     

    

 

9.12         Assignment. This Agreement is personal to Executive and shall not be assigned by Executive, including by operation
of law or otherwise, without the prior written consent of the Company. The Company may assign its rights under this Agreement without
Executive’s consent. Any purported assignment, hypothecation or transfer in breach of this Section 9.12 shall be null
and void.

 

10.          No Other Contracts. Executive represents and warrants to the Company that neither the execution and delivery of this
Agreement by Executive nor the performance of Executive’s obligations hereunder, shall constitute a default under or a breach
of any other agreement or contract to which Executive is a party or by which Executive is bound, nor shall the execution and delivery
of this Agreement by Executive nor the performance of Executive’s duties and obligations hereunder give rise to any claim
or charge against either Executive or the Company based upon any other contract, or agreement to which Executive is a party or
by which Executive is bound. Executive shall indemnify and hold harmless the Company against any and all claims that execution
and delivery of this Agreement by Executive or Executive’s performance of his obligations hereunder constitutes a default
under or a breach of any other agreement or contract to which Executive is a party or by which Executive is bound.

 

11.          Code Section 409A Compliance.

 

11.1         This Agreement is intended to comply with, or otherwise be exempt from, Section 409A of the Internal Revenue Code of 1986
as amended, and any regulations and Treasury guidance promulgated thereunder (collectively, “Section 409A of the Code”).

 

11.2         The Company shall not be liable to Executive for any payment made under this Agreement which is determined to result in
an additional tax, penalty or interest under Section 409A of the Code, nor for reporting in good faith any payment made under this
Agreement as an amount includible in gross income under Section 409A of the Code.

 

11.3         Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of
the Code.

 

11.4         With respect to any reimbursement of expenses or any provision of in-kind benefits to Executive specified under this Agreement,
such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (a) the expenses
eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible
for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangements
providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (b) the reimbursement of an eligible expense
shall be made no later than the end of the year following the year in which such expense was incurred; and (c) the right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

 

    	 	-15-	 

     

    

 

11.5         
Notwithstanding anything in this Agreement to the contrary, if a payment obligation arises on account of Executive’s
separation from service while Executive is a “specified employee” as described in Section 409A of the Code and
the Treasury Regulations thereunder and as determined by the Company in accordance with its procedures, by which determination
Executive is bound, any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1),
after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) shall be made on the first
(1st) business day of the seventh (7th) month following the date of Executive’s separation from service, or, if
earlier, within fifteen (15) days after the appointment of the personal representative or executor of Executive’s estate
following Executive’s death.

 

11.6         
Notwithstanding anything contained herein to the contrary, Executive shall not be considered to have terminated employment
with the Company for purposes of this Agreement unless Executive would be considered to have incurred a “termination of employment”
from the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii). In no event whatsoever shall the Company be
liable for any additional tax, interest or penalty that may be imposed on Executive by Section 409A of the Code or damages for
failing to comply with Section 409A of the Code.

 

12.           Entire Agreement. This Agreement contains the entire agreement among the parties with respect to the subject matter
hereof and supersede all prior agreements and understandings, oral or written, with the subject matter hereof.

 

13.           280G Cutback. If any payment, benefit or distribution of any type to or for the benefit of Executive, whether paid
or payable, provided or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively,
the “Parachute Payments”) would subject Executive to the excise tax imposed under Section 4999 of the Code (the
 “Excise Tax”) or would not be deductible as a result of Section 280G of the Code, the Parachute Payments shall
be reduced so that the maximum amount of the Parachute Payments (after reduction) shall be one dollar ($1.00) less than the amount
which would cause the Parachute Payments to be subject to the Excise Tax or would cause the Parachute Payments to not be deductible.
The Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating any cash payments (with the payments
to be made furthest in the future being reduced first), then by reducing or eliminating accelerated vesting of stock options or
other awards that vest based on attainment of performance measures, then by reducing or eliminating accelerated vesting of stock
options or other awards that vest based only on Executive’s continued service to the Company, taking the last ones scheduled
to vest (absent the acceleration) first, then by reducing or eliminating any other remaining Parachute Payments; provided,
that no such reduction or elimination shall apply to any non-qualified deferred compensation amounts (within the meaning of Section
409A of the Code) to the extent such reduction or elimination would accelerate or defer the timing of such payment in manner that
does not comply with Section 409A of the Code.

 

    	 	-16-	 

     

    

 

THE PARTIES TO THIS AGREEMENT HAVE READ
THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS
AGREEMENT AS OF THE DATE FIRST ABOVE WRITTEN.

 

[The remainder of this page is intentionally
left blank.]

 

    	 	-17-	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	PARASOL INVEStMENTS CORP.
	 	 
	 	 
	 	By: 	 /s/ Robert Bahns
	 	 	Name: Robert Bahns 
	 	 	Title: Chief Financial Officer
	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	 /s/ Ian Jenks 
	 	Name: Ian Jenks

   

[Signature
Page to Employment Agreement]Exhibit 10.7

 

	DATED 	2021

 

SMARTKEM LIMITED

 

-and-

 

ROBERT BAHNS

 

 

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	 	 	9
	 	 	 	 	 	 	 
	6.	 	 	Place of Work	 	 	9
	 	 	 	 	 	 	 
	7.	 	 	Remuneration	 	 	9
	 	 	 	 	 	 	 
	8.	 	 	Pension and Other Benefits	 	 	9
	 	 	 	 	 	 	 
	9.	 	 	Expenses and Company Equipment	 	 	10
	 	 	 	 	 	 	 
	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	 	 	16
	 	 	 	 	 	 	 
	19.	 	 	Termination Without Notice	 	 	16
	 	 	 	 	 	 	 
	20.	 	 	Obligations on Termination	 	 	17
	 	 	 	 	 	 	 
	21.	 	 	Garden Leave	 	 	17
	 	 	 	 	 	 	 
	22.	 	 	Deductions	 	 	18
	 	 	 	 	 	 	 
	23.	 	 	Reconstruction or Amalgamation	 	 	18
	 	 	 	 	 	 	 
	24.	 	 	Notices	 	 	18
	 	 	 	 	 	 	 
	25.	 	 	Disciplinary and Grievance Procedures	 	 	19
	 	 	 	 	 	 	 
	26.	 	 	Anti-Corruption and Bribery	 	 	19
	 	 	 	 	 	 	 
	27.	 	 	Litigation Assistance	 	 	19
	 	 	 	 	 	 	 
	28.	 	 	Previous Agreements	 	 	19
	 	 	 	 	 	 	 
	29.	 	 	Third Party Rights	 	 	20
	 	 	 	 	 	 	 
	30.	 	 	Miscellaneous	 	 	20

 

    1 

     

    

 

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)	Robert Bahns (“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; ;

 

		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;

 

    2 

     

    

 

		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;

 

		“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;

 

    3 

     

    

 

		“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;

 

		“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;

 

    4 

     

    

 

		“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;

 

		“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.

 

    5 

     

    

 

	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 Financial
Officer (or in such other capacity as the Company considers appropriate), reporting to the Company’s CEO.

 

	2.2	The Employment commenced on 24th February 2020. 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.
The Employee undertakes to indemnify the Company against any claims, costs, damages, liabilities or expenses which it may incur
as a result if the Employee is in breach of any such obligations.

 

	2.4	The Employee warrants that they are not subject to any restrictions which prevent them from holding
office as a director.

 

	2.5	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.

 

	2.6	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.

 

    6 

     

    

 

	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.

 

	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;

 

    7 

     

    

 

		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.

 

	4.12	The Employee shall, during the Employment:

 

		4.12.1	act as a director of the Company and carry out duties on behalf of any other Group Company including,
if so required by the Board, acting as an officer or consultant of any such Group Company;

 

		4.12.2	comply with the articles of association (as amended from time to time) of any Group Company of
which they are a director;

 

		4.12.3	abide by any statutory, fiduciary or common law duties to any Group Company of which they are a
director; and

 

		4.12.4	not do anything that would cause them to be disqualified from acting as a director.

 

    8 

     

    

 

	4.13	Except with the prior approval of the Board, or as provided in the articles of association of any
Group Company of which the Employee is a director, they shall not resign as a director of any Group Company.

 

	4.14	If during the Employment the Employee ceases to be a director of the Company (otherwise than by
reason of their death, resignation or disqualification pursuant to the articles of association of the Company, as amended from
time to time, or by statute or court order) the Employment shall continue with the Employee as an employee only and the terms of
this Agreement (other than those relating to the holding of the office of director) shall continue in full force and effect. The
Employee shall have no claims in respect of such cessation of office.

 

	5.	Hours of Work

 

	5.1	The Employee’s normal hours of work are 37.5 hours per week 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.

 

	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 WeWork No. 1
Poultry, 1 Poultry, London, EC2R 8EJ 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 £150,000 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.

 

	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 

     

    

 

		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.

 

		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 25 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 will shut down for a period of 3 days between Christmas
and New Year and you will be granted these days as additional paid leave.

 

		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.

 

    10 

     

    

 

		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.

 

		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 12.4 will be conditional upon the Employee complying with the terms of clauses 12 and 13.

 

		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 15.1, 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 15.3 shall apply to all
Employment IPRs and Employment Inventions offered to the Company under this clause 15.3 until such time as the Company has agreed
in writing that the Employee may offer them for sale to a third party.

 

    11 

     

    

 

		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;

 

		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 15.7.

 

		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;

 

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		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;

 

		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 16.1 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 16 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.

 

    13 

     

    

 

		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

 

		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 17.2.1 to 17.2.9 above.

 

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		17.3	The restrictions imposed on the Employee by this Clause 17 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.

 

		17.5	None of the restrictions in clause 17 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 17.2 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 17 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 17, 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 17 within 7 days of the offer being made.

 

The obligations contained in
this clause 17.8 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 17.8, 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 17 (or such of those restrictions as may be appropriate) in relation to that Relevant Group Company.

 

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		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.

 

		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 disqualified from acting as a director or resigns as a director from any Group
Company without the prior written approval of the Board;

 

		19.1.2	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;

 

		19.1.3	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;

 

		19.1.4	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;

 

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

 

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

 

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

 

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

 

		19.1.9	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;

 

		19.1.10	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);

 

		19.1.11	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;

 

    16 

     

    

 

		19.1.12	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

 

		19.1.13	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 19.1 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:

 

		20.1.1	immediately resign, without any claim for compensation, from any directorships in any Group Company
or from any position which the Employee holds as a trustee in relation to the business of any Group Company;

 

		20.1.2	subject to clause 20.2, 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;

 

		20.1.3	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

 

		20.1.4	provide a signed statement that the Employee has complied fully with their obligations under this
clause 20.1.

 

		20.2	Where the Employee has been placed on Garden Leave, they shall not be required by clause 20.1.1
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.

 

		20.4	The Employee hereby irrevocably appoint the Company to be their attorney to execute and do any
such instrument or thing and generally to use their name for the purpose of giving the Company or the Company’s nominee the
full benefit of clause 20.1.1.

 

		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.

 

    17 

     

    

 

		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.

 

		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.

 

    18 

     

    

 

		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

 

		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 27 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.

 

    19 

     

    

 

		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.

 

	Signed as a deed by ROBERT BAHNS:	/s/ Robert Bahns	 

 

EMPLOYEE SIGNATURE

 

in the presence of

 

	/s/ Ian Jenks	 	 
	 	 	 
	SIGNATURE OF WITNESS	 	 
	 	 	 
	NAME OF WITNESS	 	 
	 	 	 
	ADDRESS OF WITNESS	 	 
	 	 	 
	OCCUPATION OF WITNESS	 	 

 

	Executed as a deed by SmartKem Limited	 	/s/ Ian Jenks
	 	 	 
	acting as a director,	 	SIGNATURE OF DIRECTOR
	 	 	 
	in the presence of:	 	Director

 

	/s/ Selena Kirkwood	 	 
	 	 	 
	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

 

Robert Bahns

 

9 Cholmeley Crescent,

 

London,

 

N6 5EZ

 

Dear Robert,

 

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

 

	/s/ Ian Jenks
	 
	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/ Robert Bahns

	 
	by Robert Bahns
	 
	Date ................................

 

    28

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