Document:

Exhibit 10.3

 

EXECUTION COPY

 

PERSHING GOLD CORPORATION
 REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of July 14, 2014, is made by and between Pershing Gold Corporation, a Nevada corporation (the “Company”) and the undersigned investor (the “Investor”).

 

R E C I T A L S

 

WHEREAS, in connection with that certain Subscription Agreement of even date herewith by and between the Company and the Investor (the “Subscription Agreement”) and Unit Purchase Agreement of even date herewith by and between the Company and the Investor (the “Purchase Agreement”), the Investor purchased from the Company, certain units (the “Units”), each Unit consisting of (a) one share (the “Share” and collectively with all Shares issued as part of the Units (“Shares”)) of common stock, par value $0.0001 per share, of the Company (“Common Stock”), and (b) a warrant (the “Warrant” and collectively with the Warrants issued as part of the Units “Warrants”) to purchase one share of Common Stock at an exercise price of $0.45 per share for a period of 30 months from the date of issuance.

 

WHEREAS, to induce the Investor to purchase the Units, the Company has agreed to grant the Investor certain rights with respect to registration of Registrable Securities under the Securities Act pursuant to the terms of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, the Company and the Investor hereby covenant and agree as follows:

 

1.                                      Recitals.  The recitals set forth above are true and correct and are incorporated herein by reference.

 

2.                                      Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings:

 

“Agreement” shall have the meaning set forth in the Preamble hereof.

 

“Automatic Registration Statement” shall have the meaning set forth in Section 3(a) of this Agreement.

 

“Closing” shall mean the closing of the sale of the Units in which the Investor Purchased the Units.

 

“Closing Date” means the date on which the Closing occurred.

 

“Commission” shall mean the Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act.

 

“Company” shall have the meaning set forth in the Preamble hereof.

 

 

“Effectiveness Date” shall mean that date which is sixty (60) days following the Filing Date (in case of a no SEC review) or one hundred eighty (180) days following the Filing Date (in the case of an SEC review).

 

“Delay Period” shall have the meaning set forth in Section 3(b) of this Agreement.

 

“Effectiveness Period” shall have the meaning set forth in Section 3(a) of this Agreement.

 

“End of Suspension Notice” shall have the meaning set forth in Section 3(c) of this Agreement.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Filing Date” shall mean with respect to the Automatic Registration Statement required hereunder, that date which is forty-five (45) days following the Final Closing Date and, with respect to any additional Registration Statements which may be required herein, the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the Registrable Securities.

 

“Final Closing Date” means closing date of the Offering after which the Company ceases to offer for sale the Units.

 

“Investor” shall have the meaning set forth in the Preamble hereof.

 

“Offering” shall have the meaning set forth in the Subscription Agreement.

 

“Piggyback Registration” shall have the meaning set forth in Section 4(a) of this Agreement.

 

“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Purchase Agreement” shall have the meaning set forth in the Preamble hereof.

 

“Purchase Price” shall have the meaning set forth in the Purchase Agreement.

 

“Register,” “registered” and “registration” each shall refer to a registration of the Registrable Securities effected by preparing and filing a Registration Statement or statements or similar documents in compliance with the Securities Act and the declaration or ordering of effectiveness of such Registration Statement or document by the Commission.

 

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“Registrable Securities” shall mean (a) all Shares, (b) all Warrant Shares then issuable upon exercise of the Warrant delivered to Investor in connection with the Offering (assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein), and (c) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing provided, however, that any such Registrable Securities shall cease to be Registrable Securities (i) when subject to an effective Registration Statement under the Securities Act as provided for hereunder, (ii) upon any sale pursuant to a Registration Statement or Rule 144 under the Securities Act or (iii) at such time such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Investors.

 

“Registration Statement” means any registration statement required to be filed hereunder pursuant to Sections 3 or 4 and any additional registration statements contemplated herein, including (in each case) the Prospectus, amendments and supplements to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“SEC Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff and (ii) the Securities Act.

 

“Securities Act” shall mean the Securities Act of 1933, as amended.

 

“Selling Stockholder Questionnaire” shall have the meaning set forth in Section 5(a) of this Agreement.

 

“Shares” shall have the meaning set forth in the Preamble hereof.

 

“Subscription Agreement” shall have the meaning set forth in the Preamble hereof.

 

“Suspension Event” shall have the meaning set forth in Section 3(c) of this Agreement.

 

“Suspension Notice” shall have the meaning set forth in Section 3(c) of this Agreement.

 

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“Warrant” shall have the meaning set forth in the Preamble hereof.

 

“Warrant Shares” shall mean the shares of Common Stock to be issued upon exercise of the Warrants.

 

Capitalized terms used but not defined herein shall have the meanings set forth in the Subscription Agreement.

 

3.                                      Automatic Registration.

 

(a)                                 On or prior to the Filing Date, the Company shall prepare and file with the Commission a registration statement (the “Automatic Registration Statement”) covering the resale of all of the Registrable Securities (and no other securities) for an offering to be made on a continuous basis pursuant to Rule 415. The Automatic Registration Statement required hereunder shall be on Form S-1 or Form S-3, as applicable, and shall contain substantially the “Plan of Distribution” attached hereto as Annex A.  Subject to the terms of this Agreement, the Company shall use its best efforts to cause the Automatic Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event not later than the Effectiveness Date, and shall use its best efforts to keep the Automatic Registration Statement continuously effective under the Securities Act until the earlier of (i) the date when all Registrable Securities covered by the Registration Statement have been sold thereunder or pursuant to Rule 144  or (ii) the date when all Registrable Securities covered by the Registration Statement may be sold by non-affiliates of the Company without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the Investor (the “Effectiveness Period”). The maximum amount of Registrable Securities that may be included in the Automatic Registration Statement at any one time shall be limited by Rule 415 as required by the Commission. In the event that there is a limitation by the Commission on the number of Registrable Securities that may be included for registration at one time, the Company shall promptly so advise the Investor and use its best efforts to file an additional Automatic Registration Statement covering such ineligible Registrable Securities, on a pro-rata basis, within 30 days of the date such securities become eligible and cause such Automatic Registration Statement to be declared effective by the Commission as soon as reasonably practicable.

 

(b)                                 Notwithstanding anything to the contrary set forth herein, the Company shall have the right to delay the filing of the Registration Statement for a period not in excess of 60 consecutive days and no more than 90 days in any consecutive 12-month period (a “Delay Period”), if the Company is pursuing a public offering of securities and the underwriter recommends a Delay Period.

 

(c)                                  In the case of an event that causes the Company to suspend the use of a Registration Statement (a “Suspension Event”), the Company shall give written notice (a “Suspension Notice”) to the Investors to suspend sales of the Registrable Securities included in the Registration Statement and such notice shall continue only for so long as the Suspension Event or its effect is continuing. No Investor shall effect any sales of the Registrable Securities

 

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pursuant to such Registration Statement (or such filings) at any time after it has received a Suspension Notice from the Company and prior to receipt of an End of Suspension Notice (as defined below) with respect to such Registration Statement.  The Investors may recommence effecting sales of the Registrable Securities pursuant to such Registration Statement (or such filings) following further notice to such effect (an “End of Suspension Notice”) from the Company, which End of Suspension Notice shall be given by the Company to the Investors in the manner described above promptly following the conclusion of any Suspension Event and its effect.

 

(d)                                 If: (i) the Automatic Registration Statement is not filed on or prior to its Filing Date (if the Company files the Automatic Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 5(a) herein, the Company shall be deemed to have not satisfied this clause (i)), (ii) a Registration Statement registering for resale all of the Registrable Securities is not declared effective by the Commission by the Effectiveness Date (unless the reason for such non-registration of all or any portion of the Registrable Securities is as a result of SEC Guidance under Rule 415 or similar rule which limits the number of Registrable Securities which may be included in a registration statement with respect to the Holders), or (iii) after the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the Investors are otherwise not permitted to utilize the prospectus therein to resell such Registrable Securities, for more than ten (10) consecutive calendar days or more than an aggregate of fifteen (15) calendar days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach being referred to as an “Event”, and for purposes of clause (i) and (iv), the date on which such Event occurs, and for purpose of clause (iii) the date on which such ten (10) or fifteen (15) calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition to any other rights the Investors may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Investor an amount in cash, as partial liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase price paid by such Holder pursuant to the Subscription Agreement and Purchase Agreement. The parties agree that the maximum aggregate liquidated damages payable to an Investor under this Agreement shall be 15% of the aggregate Purchase Price paid by such Investor pursuant to the Purchase Agreement.  If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Investor, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event. Notwithstanding the foregoing, no payments shall be owed (i) to any affiliate of the Company, (ii) with respect to any period during which all of the holder’s Registrable Shares may be sold by such holder under Rule 144 without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144, or (iii) in circumstances described in Sections 3(c)

 

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4.                                      Piggyback Registrations.

 

(a)                                 With respect to any Registrable Securities not otherwise included in the Automatic Registration Statement or any other Registration Statement as a result of any limitation imposed by the Commission under Rule 415 (the “Excluded Registrable Securities”), whenever the Company proposes to register (including, for this purpose, a registration effected by the Company for other shareholders) any of its securities under the Securities Act (other than pursuant to (i) an Automatic Registration pursuant to Section 3 hereof or (ii) registration pursuant to a registration statement on Form S-4 or S-8 or any successor forms thereto), and the registration form to be used may be used for the registration of Registrable Securities (a “Piggyback Registration”), the Company will give written notice to the holder of Excluded Securities of its intention to effect such a registration and will, subject to the provisions of Subsection 4(b) hereof, include in such registration all Excluded Registrable Securities with respect to which the Company has received a written request for inclusion therein within twenty (20) days after the receipt of the Company’s notice.

 

(b)                                 If a Piggyback Registration is an underwritten secondary registration on behalf of holders of the Company’s securities, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company will include in such registration a pro rata share of Excluded Registrable Securities requested to be included in such Registration Statement as calculated by dividing the number of Excluded Registrable Securities requested to be included in such Registration Statement by the number of the Company’s securities requested to be included in such Registration Statement by all selling security holders. In such event, the holder of Excluded Registrable Securities shall continue to have registration rights under this Agreement with respect to any Excluded Registrable Securities not so included in such Registration Statement.

 

(c)                                  Notwithstanding the foregoing, if, at any time after giving a notice of Piggyback Registration and prior to the effective date of the Registration Statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to each record holder of Excluded Registrable Securities and, following such notice, (i) in the case of a determination not to register, shall be relieved of its obligation to register any Excluded Registrable Securities in connection with such registration, and (ii) in the case of determination to delay registering, shall be permitted to delay registering any Excluded Registrable Securities for the same period as the delay in registering such other securities.

 

5.                                      Registration Procedures.  If and whenever the Company is required to effect the registration of any Registrable Securities under the terms herein, the Company will:

 

(a)                                 not less than four 4) trading days prior to the filing of each Registration Statement and not less than one (1) trading day prior to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated therein by reference), and subject, if appropriate, to the relevant parties’ entry into a customary agreement to maintain the confidentiality of any non-public

 

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information provided (a “Confidentiality Agreement”) or the Company may excise any information which would constitute material non-public information regarding the Company, the Company shall (i) furnish to one counsel on behalf of all sellers of Registrable Securities copies of all such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such sellers, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of counsel to the sellers of Registrable Securities, to conduct a reasonable investigation within the meaning of the Securities Act. Notwithstanding the above, the Company shall not be obligated to provide each seller of Registrable Securities advance copies of any universal shelf registration statement registering securities in addition to those required hereunder, or any Prospectus prepared thereto.  The Company shall pay a one time fee of $10,000 to the counsel referenced above in Section 5(a)(i), which shall be paid by the Company at the time such counsel is to review such Registration Statement and in any event prior to the four trading days referred in the first sentence of this subsection (a).

 

(b)                                 prepare and file with the Commission the Registration Statement with respect to such securities and use its best efforts to cause such Registration Statement to become effective in an expeditious manner;

 

(c)                                  (i) prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to one counsel for all sellers of Registrable Securities true and complete copies of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company may either obtain a Confidentiality Agreement from Investors or excise any information contained therein which would constitute material non-public information regarding the Company), and (iv) comply in all material respects with the applicable provisions of the Securities Act and the Securities and Exchange Act of 1934, as amended, with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by each seller of Registrable Securities thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

(d)                                 if during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Investors of not less than the number of such Registrable Securities.

 

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(e)                                  furnish to each seller of Registrable Securities and to each underwriter such number of copies of the Registration Statement and the Prospectus included therein (including each preliminary prospectus) as such persons reasonably may request in order to facilitate the intended disposition of the Registrable Securities covered by such Registration Statement;

 

(f)                                   use its commercially reasonable efforts (i) to register or qualify the Registrable Securities covered by such Registration Statement under the state securities or “blue sky” laws of such jurisdictions as the sellers of Registrable Securities or, in the case of an underwritten public offering, the managing underwriter, reasonably shall request, (ii) to prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements, and take such other actions, as may be necessary to maintain such registration and qualification in effect at all times for the period of distribution contemplated thereby and (iii) to take such further action as may be necessary or advisable to enable the disposition of the Registrable Securities in such jurisdictions, provided, that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction;

 

(g)                                  use its commercially reasonable efforts to list the Registrable Securities covered by such Registration Statement with any securities exchange on which the common stock of the Company is then listed;

 

(h)                                 immediately notify each seller of Registrable Securities and each underwriter under such Registration Statement, at any time when a Prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event of which the Company has knowledge as a result of which the Prospectus contained in such Registration Statement, as then in effect, includes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing and promptly amend or supplement such Registration Statement to correct any such untrue statement or omission;

 

(i)                                     promptly notify each seller of Registrable Securities of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose and make every reasonable effort to prevent the issuance of any stop order and, if any stop order is issued, to obtain the lifting thereof at the earliest possible time;

 

(j)                                    if the offering is an underwritten offering, enter into a written agreement with the managing underwriter selected in the manner herein provided in such form and containing such provisions as are usual and customary in the securities business for such an arrangement between such underwriter and companies of the Company’s size and investment stature, including, without limitation, customary indemnification and contribution provisions;

 

(k)                                 if the offering is an underwritten offering, at the request of any Investor, furnish to such Investor on the date that Registrable Securities are delivered to the underwriters for sale pursuant to such registration: (i) a copy of an opinion, dated such date, of counsel

 

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representing the Company for the purposes of such registration, addressed to the underwriters, stating that such Registration Statement has become effective under the Securities Act and that (A) to the knowledge of such counsel, no stop order suspending the effectiveness thereof has been issued and no proceedings for that purpose have been instituted or are pending or contemplated under the Securities Act, (B) the Registration Statement, the related Prospectus and each amendment or supplement thereof comply as to form in all material respects with the requirements of the Securities Act (except that such counsel need not express any opinion as to financial statements or other financial or statistical information contained therein) and (C) to such other effects as reasonably may be requested by counsel for the underwriters; and (ii) a copy of a letter dated such date from the independent public accountants retained by the Company, addressed to the underwriters, stating that they are independent registered public accountants within the meaning of the Securities Act and that, in the opinion of such accountants, the financial statements of the Company included in the Registration Statement or the Prospectus, or any amendment or supplement thereof, comply as to form in all material respects with the applicable accounting requirements of the Securities Act, and such letter shall additionally cover such other financial matters (including information as to the period ending no more than five business days prior to the date of such letter) with respect to such registration as such underwriters reasonably may request;

 

(l)                                     take all actions reasonably necessary to facilitate the timely preparation and delivery of certificates (not bearing any legend restricting the sale or transfer of such securities) representing the Registrable Securities to be sold pursuant to the Registration Statement and to enable such certificates to be in such denominations and registered in such names as each Investor or any underwriters may reasonably request; and

 

(m)                             take all other reasonable actions necessary to expedite and facilitate the registration of the Registrable Securities pursuant to the Registration Statement.

 

6.                                      Obligations of Investor.  The Investor shall furnish to the Company such information regarding such Investor, the number of Registrable Securities owned and proposed to be sold by it, the intended method of disposition of such securities and any other information as shall be required to effect the registration of the Registrable Securities, and cooperate with the Company in preparing the Registration Statement and in complying with the requirements of the Securities Act.  Each Investor agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling Stockholder Questionnaire”) on a date that is not less than three trading days prior to the Filing.

 

7.                                      Expenses.

 

(a)                                 All expenses incurred by the Company in complying with Sections 3, 4 and 5 including, without limitation, all registration and filing fees (including the fees of the Commission and any other regulatory body with which the Company is required to file), printing expenses, fees and disbursements of counsel and independent public accountants for the Company, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, and fees of transfer agents and registrars are called “Registration Expenses.” All underwriting discounts and selling commissions applicable to the sale of Registrable Securities are called “Selling Expenses.”

 

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(b)                                 The Company will pay all Registration Expenses in connection with any Registration Statement filed hereunder, and the Selling Expenses in connection with each such Registration Statement shall be borne by the participating sellers in proportion to the number of Registrable Securities sold by each or as they may otherwise agree.

 

(c)                                  Notwithstanding anything herein to the contrary, at the request of any Investor, the Company shall employ its counsel at the Company’s expense to prepare any and all legal opinions necessary for the prompt removal of restrictive legends from certificates representing Registrable Securities as, when and to the extent such legends may be removed in compliance with the Securities Act and/or Rule 144.

 

8.                                      Indemnification and Contribution.

 

(a)                                 In the event of a registration of any of the Registrable Securities under the Securities Act pursuant to the terms of this Agreement, the Company will indemnify and hold harmless and pay and reimburse, each Investor thereunder, each underwriter of such Registrable Securities thereunder and each other person, if any, who controls such seller or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which such Investor, underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant hereto or any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation or alleged violation of the Securities Act or any state securities or “blue sky” laws and will reimburse each such Investor, each such underwriter and each such controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon the Company’s reliance on an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such seller, any such underwriter or any such controlling person in writing specifically for use in such Registration Statement or prospectus.

 

(b)                                 In the event of a registration of any of the Registrable Securities under the Securities Act pursuant hereto, each seller of such Registrable Securities thereunder, severally and not jointly, will indemnify and hold harmless the Company, each person, if any, who controls the Company within the meaning of the Securities Act, each officer of the Company who signs the Registration Statement, each director of the Company, each underwriter and each person who controls any underwriter within the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Company or such officer, director, underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon reliance on any untrue statement or alleged untrue statement of any material fact contained in the registration statement under which such Registrable Securities were registered

 

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under the Securities Act pursuant hereto or any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and each such officer, director, underwriter and controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided that such seller will be liable hereunder in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information pertaining to such seller, as such, furnished in writing to the Company by such seller specifically for use in such Registration Statement or prospectus; and provided, further, that the liability of each seller hereunder shall be limited to the proceeds received by such seller from the sale of Registrable Securities covered by such Registration Statement. Notwithstanding the foregoing, the indemnity provided in this Section 8(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of such indemnified party and provided further, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability (or action in respect thereof) arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission in such Registration Statement, which untrue statement or alleged untrue statement or omission or alleged omission is completely corrected in an amendment or supplement to the Registration Statement and the undersigned indemnitees thereafter fail to deliver or cause to be delivered such Registration Statement as so amended or supplemented prior to or concurrently with the sale of the Registrable Securities to the person asserting such loss, claim, damage or liability (or actions in respect thereof) or expense after the Company has furnished the undersigned with the same.

 

(c)                                  Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to such indemnified party other than under this Section 8 and shall only relieve it from any liability which it may have to such indemnified party under this Section 8 if and to the extent the indemnifying party is materially prejudiced by such omission. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 8 for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded based upon written advice of its counsel that there may be reasonable defenses available to it that are different from or additional to those available to the indemnifying party or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified party shall have the right to select a separate counsel and to assume such

 

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legal defenses and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred.

 

(d)                                 In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any holder of Registrable Securities exercising rights under this Agreement, or any controlling person of any such holder, makes a claim for indemnification pursuant to this Section 8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such selling holder or any such controlling person in circumstances for which indemnification is provided under this Section 8; then, and in each such case, the Company and such holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that such holder is responsible for the portion represented by the percentage that the public offering price of its Registrable Securities offered by the Registration statement bears to the public offering price of all securities offered by such Registration statement, and the Company is responsible for the remaining portion; provided, that, in any such case, (A) no such holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered by it pursuant to such Registration statement and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 12(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

 

9.                                      Changes in Capital Stock.  If, and as often as, there is any change in the capital stock of the Company by way of a stock split, stock dividend, combination or reclassification, or through a merger, consolidation, reorganization or recapitalization, or by any other means, appropriate adjustment shall be made in the provisions hereof so that the rights and privileges granted hereby shall continue as so changed.

 

10.                               Representations and Warranties of the Company.  The Company represents and warrants to the Investor as follows:

 

(a)                                 The execution, delivery and performance of this Agreement by the Company have been duly authorized by all requisite corporate action and will not violate any provision of law, any order of any court or other agency of government, the Articles of Incorporation or Bylaws of the Company or any provision of any indenture, agreement or other instrument to which it or any or its properties or assets is bound, conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Company or its subsidiaries.

 

(b)                                 This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, subject to any applicable bankruptcy, insolvency or other laws

 

12

 

affecting the rights of creditors generally and to general equitable principles and the availability of specific performance.

 

11.                               Rule 144 Requirements.  The Company agrees to:

 

(a)                                 make and keep current public information about the Company available, as those terms are understood and defined in Rule 144 under the Securities Act;

 

(b)                                 use its best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and

 

(c)                                  furnish to any Investor upon request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), (ii) a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents of the Company as such holder may reasonably request to avail itself of any similar rule or regulation of the Commission allowing it to sell any such securities without registration.

 

12.                               Termination.  All of the Company’s obligations to register Registrable Shares under Sections 3, 4, and 5 hereof shall terminate upon the date on which the Investor holds no Registrable Securities or all of the Registrable Securities are eligible for resale without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the Investor.

 

13.                               Miscellaneous.

 

(a)                                 All covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto (including without limitation transferees of any Registrable Securities), whether so expressed or not.

 

(b)                                 All notices, requests, consents and other communications hereunder shall be in writing and shall be delivered in person, mailed by certified mail, return receipt requested, postage prepaid, addressed or sent by a nationally recognized overnight courier service: (i) if to the Company, at Pershing Gold Corporation, 1658 Cole Boulevard, Building 6, Suite 200, Lakewood, Colorado 80401, Attn:  Stephen Alfers, President & CEO ; and (ii) if to any holder of Registrable Securities, to such holder at such address as may have been furnished to the Company or its counsel in writing by such holder; or, in any case, at such other address or addresses as shall have been furnished, in writing to the Company or its counsel (in the case of a holder of Registrable Securities) or to the holders of Registrable Securities (in the case of the Company) in accordance with the provisions of this paragraph.  Any notice or other communication or deliveries hereunder shall be deemed given and effective upon actual receipt by the party to whom such notice is required to be given.

 

13

 

(c)                                  This Agreement shall be governed by and construed under the laws of the State of New York, without giving effect to principles of conflicts of laws. The Company and Investor (i) agree that any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted exclusively in in New York State Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waive any objection which the Company or Investor may have now or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consent to the jurisdiction of any such federal or state court in any such suit, action or proceeding. The Company and Investor further agree to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding and agree that service of process upon the Company or Investor mailed by certified mail, return receipt requested, postage prepaid, to, in the case of the Company, the Company’s address, and in the case of the Investor, to the Investor’s address as set forth on the Company’s books and records, shall be deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

 

(d)                                 In the event of a breach by the Company or by the Investor, of any of their obligations under this Agreement, the Investor or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and the Investor agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(e)                                  This Agreement may not be amended or modified without the written consent of the Company and the Investor.

 

(f)                                   Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof. No waiver shall be effective unless and until it is in writing and signed by the party granting the waiver.

 

(g)                                  This Agreement may be executed in two or more counterparts (including by facsimile or .pdf transmission) each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission or sent by electronic mail of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(h)                                 If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein.

 

14

 

(i)                                     This Agreement constitutes the entire agreement among the Company and the Investor relative to the subject matter hereof and supersedes in its entirety any and all prior agreements, understandings and discussions with respect thereto.

 

(j)                                    The headings of the sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this Agreement.

 

[Signature Page Follows]

 

15

 

Signature Page to the Registration Rights Agreement

 

IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date set forth in the first paragraph hereof.

 

Investor:

 

The Investor set forth on Exhibit A to the Agreement has executed a Subscription Agreement with the Company which provides, among other things, that by executing the Subscription Agreement such Investor is deemed to have executed the REGISTRATION RIGHTS AGREEMENT in all respects and is bound by its terms.

 

 

THE COMPANY:

 

PERSHING GOLD CORP.

 

 

	
By:
    	
/s/   Stephen Alfers
    	
 
    
	
 
    	
Name:   Stephen Alfers
    	
 
    
	
 
    	
Title:   President and Chief Executive Officer
    	
 
    

 

16

 

Annex A

 

Form of 
 Plan of Distribution

 

Each Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the OTCQB or any other stock exchange, market or trading facility on which the securities are traded or in private transactions.  These sales may be at fixed or negotiated prices.  A Selling Stockholder may use any one or more of the following methods when selling securities:

 

·                  ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

·                  block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

 

·                  purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

·                  an exchange distribution in accordance with the rules of the applicable exchange;

 

·                  privately negotiated transactions;

 

·                  settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;

 

·                  in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated price per security;

 

·                  through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

·                  a combination of any such methods of sale; or

 

·                  any other method permitted pursuant to applicable law.

 

The Selling Stockholders may also sell securities under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales.  Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

 

17

 

In connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume.  The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales.  In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.  Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the securities. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).

 

The Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the securities.  The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

 

Because Selling Stockholders may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act including Rule 172 thereunder.  In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. The Selling Stockholders have advised us that there is no underwriter or coordinating broker acting in connection with the proposed sale of the resale securities by the Selling Stockholders.

 

We agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.  The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

 

18

 

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution.  In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of securities of the common stock by the Selling Stockholders or any other person.  We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

19

 

Annex B

Selling Stockholder Questionnaire

 

20

 

REGISTRATION RIGHTS AGREEMENT

 

EXHIBIT A

 

	
Name of
   Purchaser
    	
 
    	
Units
    	
 
    	
Common
   Stock
    	
 
    	
Warrant
   Shares
    	
 
    	
Total Purchase
   Price Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$Employment Agreement - Jonathan H. Weis Exhibit
    10.1

    

    EXHIBIT
    10.1

    	AMENDED AND RESTATED
                EMPLOYMENT AGREEMENT
	 	 	 	 	 	 
	     THIS AMENDED AND
                RESTATED EMPLOYMENT AGREEMENT, is entered into on
                July 14, 2014 and effective January 1, 2014,
                by and between WEIS MARKETS, INC., a Pennsylvania
                corporation (the "Company"), and Jonathan H. Weis
                (the "Executive"), and amends and restates the
                Employment Agreement dated November 3, 2011 between
                the parties.
	 	 	 	 	 	 
	WITNESSETH
                THAT:
	 	 	 	 	 	 
	     WHEREAS, the
                Executive has served as Vice Chairman and Secretary
                of the Company since 2004, and currently serves as
                Vice Chairman, President and Chief Executive
                Officer, and the Executive desires to continue to
                be employed to serve in such capacity or
                capacities, on the terms and conditions herein set
                forth;
	 	 	 	 	 	 
	     NOW, THEREFORE,
                in consideration of the mutual covenants herein
                contained, the parties hereto, each intending to be
                legally bound hereby, agree as follows:
	 	 	 	 	 	 
	     1.     
            Employment; Prior Agreement. The Company agrees to
            employ the Executive, and the Executive agrees to be
            employed by the Company, for the Term provided in
            Section 3(a) below and upon the other terms and
            conditions hereinafter provided. The Executive hereby
            represents and warrants that he has the legal capacity
            to execute and perform this Agreement, that it is a
            valid and binding agreement, enforceable against him
            according to its terms, and that its execution and
            performance by him do not violate the terms of any
            existing agreement or understanding to which the
            Executive is a party.
	 	 	 	 	 	 
	     2.     
            Position and Responsibilities. During the Term, the
            Executive agrees to serve as Vice Chairman, President
            and Chief Executive Officer ("CEO") of the Company or
            in such other executive capacity or capacities for the
            Company and/or any of its subsidiaries or affiliated
            companies as the Board of Directors of the Company (the
            "Board") or the Chairman of the Board (the "Chairman")
            may from time to time determine. The Executive also
            agrees to serve, if elected and without additional
            compensation, as a member of the Board and/or as an
            officer and director of any other parent, subsidiary or
            affiliate of the Company.
	 	 	 	 	 	 
	     3.     
            Term and Duties.
	 	 	 	 	 	 
	 	(a)	Term of
                Agreement. The term of the Executive's
                employment under this amended and restated
                Agreement shall commence on January 1, 2014 and
                shall continue thereafter through December 31, 2016
                (the "Term").
	 	 	 	 	 	 
	 	(b)	Duties. During
                the Term, and except for illness or incapacity and
                reasonable vacation periods of not less than four
                weeks in any calendar year (or such greater periods
                as shall be consistent with the Company's policies
                for other key executives), the Executive shall
                devote a substantial majority of his business time,
                attention, skill and efforts to the business and
                affairs of the Company and its subsidiaries and
                affiliates, and shall perform and discharge well
                and faithfully the duties which may be assigned to
                him from time to time by the Board and the
                Chairman; provided, however, that nothing in
                this Agreement shall preclude the Executive from
                devoting time during reasonable periods required
                for:
	 	 	 	 	 	 
	 	 	(i)	Delivering lectures and
                fulfilling speaking engagements;
	 	 	 	 	 	 
	 	 	(ii)	Engaging in charitable
                and community activities; and
	 	 	 	 	 	 
	 	 	(iii)	Investing his personal
                assets in businesses in which his participation is
                solely that of an investor in such form or manner
                as will not violate Section 7 below or require any
                services on the part of the Executive in the
                operation or the affairs of such business,
                provided, however, that such activities do
                not materially affect or interfere with the
                performance of the Executive's duties and
                obligations to the Company.
	 	 	 	 	 	 
	     4.     
            Compensation. For all services rendered by the
            Executive in any capacity required hereunder during the
            Term, including, without limitation, services as an
            executive officer, director, or member of any committee
            of the Company or any subsidiary, affiliate or division
            thereof, the Executive shall be compensated as set
            forth below:
	 	 	 	 	 	 
	 	(a)	Base Salary. The
                Executive shall be paid a fixed salary ("Base
                Salary") of $860,000 per annum as of the effective
                date of this Agreement. The Base Salary amount is
                subject to periodic review and adjustment by the
                Board or its Executive Compensation Committee but
                shall not be less than $860,000 per annum during
                the Term of this Agreement. Base Salary shall be
                payable in accordance with the customary payroll
                practices of the Company, but in no event less
                frequently than monthly.
	 	 	 	 	 	 
	 	(b)	Bonus. The
                Executive shall be eligible to participate in such
                annual or long-term bonus or incentive plans
                maintained by the Company for its senior
                executives, as determined from time to time by the
                Board or its Executive Compensation Committee. The
                basis for the Executive's participation shall be
                the same as for other similarly situated
                executives, and it is understood that awards under
                any such plan may be discretionary.
	 	 	 	 	 	 
	 	(c)	CEO Supplemental
                Long-Term Cash Incentive. The Executive may
                earn a supplemental long-term cash incentive under
                the Company's Amended and Restated Chief Executive
                Officer Incentive Award Plan (the "Plan") effective
                January 1, 2014, as amended from time to
                time by the Board. The supplemental cash incentive
                is contingent upon the Executive's continued
                employment with the Company for the period set
                forth in the Plan.
	 	 	 	 	 	 
	 	(d)	Equity-Based
                Compensation. The Executive shall be eligible
                to participate in, and to be granted stock options,
                stock appreciation rights or other equity-based
                awards under any stock option, stock ownership,
                stock incentive or other equity-based compensations
                plans maintained by the Company for its senior
                executives, as determined from time to time by the
                Board or its Executive Compensation Committee. The
                basis for the Executive's participation shall be
                the same as for other similarly situated
                executives, and it is understood that awards under
                any such plan may be discretionary.
	 	 	 	 	 	 
	 	(e)	Additional
                Benefits. Except as modified by this Agreement,
                as determined from time to time by the Board or its
                Executive Compensation Committee, the Executive
                shall be entitled to participate in all
                compensation or employee benefit plans or programs,
                and to receive all benefits, perquisites and
                emoluments, for which any member of senior
                management at the Company is eligible under any
                plan or program now or hereafter established and
                maintained by the Company for senior officers, to
                the extent permissible under the general terms and
                provisions of such plans or programs and in
                accordance with the provisions thereof, including
                group hospitalization, health, dental care, senior
                executive life or other life insurance, travel or
                accident insurance, disability plans, tax-qualified
                or non-qualified pension, savings, thrift and
                profit-sharing plans, sick-leave plans, and
                executive contingent compensation plans, including,
                without limitation, capital accumulation programs
                and stock purchase plans. Notwithstanding the
                foregoing, the Executive acknowledges and agrees
                that the severance payments provided in certain
                circumstances under this Agreement are in lieu of
                any rights which the Executive might otherwise have
                under any and all other displacement, separation or
                severance plans or programs of the Company, and the
                Executive hereby waives all rights to participate
                in any of such plans or programs in the event of
                the termination of his employment during the
                Term.
	 	 	 	 	 	 
	 	(f)	Life Insurance.
                The Company shall provide a term life insurance
                policy to the Executive insuring the life of the
                Executive with a death benefit of $1,000,000. The
                Executive shall be required to provide any
                reasonable information or testing as may be
                necessary to obtain such policy.
	 	 	 	 	 	 
	 	(g)	Recoupment Policy
                (Clawback). Incentive based awards under this
                Agreement (including under Sections 4 (b), (c), and
                (d)) may be cancelled without payment and/or a
                demand for repayment of any incentive based awards
                may be made upon Executive pursuant to the
                provisions set forth below. If the Board or a
                committee of the Board determines that the
                Executive has been incompetent or negligent in the
                performance of his or her duties or has engaged in
                fraud or willful misconduct, in each case in a
                manner that has caused or otherwise contributed to
                the need for a material restatement of the
                Company's financial results, the Board will review
                all performance-based compensation awarded to or
                earned by the Executive on the basis of performance
                during fiscal periods affected by the restatement.
                If, in the Board's view, the performance-based
                compensation would have been lower if it had been
                based on the restated results, the Board and the
                Company will, to the extent permitted by applicable
                law, seek recoupment from the Executive of any
                portion of such performance-based compensation as
                it deems appropriate after a review of all relevant
                facts and circumstances. Generally, this review
                would include consideration of:
	 	 	 	 	 	 
	 	 	

	
            

	the Board's view of
                what performance-based compensation would have been
                awarded to or earned by the Executive had the
                financial statements been properly
                reported;
	 	 	

	
            

	the nature of the
                events that led to the restatement;
	 	 	

	
            

	the conduct of the
                Executive in connection with the events that led to
                the restatement;
	 	 	

	
            

	whether the assertion
                of a claim against the Executive could prejudice
                the Company's overall interests and whether other
                penalties or punishments are being imposed on the
                Executive, including by third parties such as
                regulators or other authorities; and
	 	 	

	
            

	any other facts and
                circumstances that the Executive deems
                relevant.
	 	 	 	 	 	 
	     5.     
            Business Expenses. The Company shall pay or
            reimburse the Executive for all reasonable travel and
            other expenses incurred by the Executive (and his
            spouse where there is a legitimate business reason for
            his spouse to accompany him) in connection with the
            performance of his duties and obligations under this
            Agreement, subject to the Executive's presentation of
            appropriate vouchers in accordance with such policies
            and procedures as the Company from time to time
            establish for senior officers. All reimbursements
            provided under this Agreement shall be made or provided
            in accordance with the requirements of Internal Revenue
            Code (the "Code") Section 409A, including, where
            applicable, the requirement that (i) any reimbursement
            is for expenses incurred during the Executive's
            lifetime (or during the shorter Term specified in this
            Agreement), (ii) the amount of expenses eligible for
            reimbursement during a calendar year may not affect the
            expenses eligible for reimbursement in any other
            calendar year, (iii) the reimbursement of an eligible
            expense will be made on or before the last day of the
            calendar year following the year in which the expense
            is incurred, and (iv) the right to reimbursement is not
            subject to liquidation or exchange for another
            benefit.
	 	 	 	 	 	 
	     6.     
            Effect of Termination of Employment; Effect of
            Disability.
	 	 	 	 	 	 
	 	(a)	Without Cause
                Termination or Termination of the Executive for
                Good Reason. Subject to the provisions of
                Section 7 below, in the event the Executive's
                employment hereunder terminates due to either a
                Without Cause Termination (as defined in Section
                6(e)(iii) or a termination by the Executive for
                Good Reason (as defined in Section
                6(e)(ii)):
	 	 	 	 	 	 
	 	 	(i)	Earned but unpaid Base
                Salary as of the Date of Termination (as defined in
                Section 13(b)) and any earned but unpaid bonuses
                for prior years under Section 4(b) (but not
                under Section 4(c)) (collectively, the
                "Accrued Obligations"), shall be payable in full on
                their regularly scheduled payment dates, and the
                Company shall, as liquidated damages or severance
                pay, or both:
	 	 	 	 	 	 
	 	 	 	(A)	Continue to pay the
                Executive's Base Salary, as in effect at the Date
                of Termination, from the Date of Termination until
                the end of the Term, at the same time Base Salary
                would otherwise be payable hereunder,
                and
	 	 	 	 	 	 
	 	 	 	(B)	Pay to the Executive
                for the year of termination and for each subsequent
                calendar year or portion thereof during the
                remainder of the Term, an amount (prorated in the
                case of any partial year) equal to the highest
                annual incentive bonus under Section 4(b) (but
                not under Section 4(c)) received by the
                Executive for any year in the two years preceding
                the Date of Termination, such payments to be made
                at the normal times for payment of bonuses under
                the Company's annual incentive bonus plan (as
                described in Section 4(b)) as in effect at the
                Date of Termination (the "Bonus Plan").
	 	 	 	 	 	 
	 	 	Notwithstanding
                anything to the contrary in this Agreement, if
                Executive is a "specified employee" within the
                meaning of Code Section 409A at the time of
                Executive's termination (other than due to death),
                then the continuing payments of deferred
                compensation, if any, that are payable within the
                first six (6) months following Executive's
                separation from service, will become payable on the
                first payroll date that occurs on or after the
                first day of the seventh (7) month following the
                date of Executive's separation from service. All
                subsequent continuing payments, if any, will be
                payable in accordance with the payment schedule
                applicable to each payment or benefit.
                Notwithstanding anything herein to the contrary, if
                Executive dies following Executive's separation
                from service, but before the six (6) month
                anniversary of the separation from service, then
                any payments delayed in accordance with this
                paragraph will be payable in a lump sum as soon as
                administratively practicable after and within 90
                days of the date of Executive's death and all other
                continuing payments will be payable in accordance
                with the payment schedule applicable to each
                payment or benefit. It is
                intended that to the extent possible none of the
                severance payments under this Agreement will
                constitute deferred compensation but rather will be
                exempt from Section 409A as a payment that
                would fall within the "short-term deferral period"
                or under the separation pay plan exception from
                Section 409A.
	 	 	 	 	 	 
	 	(b)	Disability. In
                the event of the Executive's Disability, the
                Company may, by giving a Notice of Disability as
                provided in Section 13(c), remove the Executive
                from active employment and in that event shall
                provide the Executive with the same payments and
                benefits as those provided in Section 6(a), except
                that:
	 	 	 	 	 	 
	 	 	(i)	Base Salary payments
                under Section 6(a)(i)(A) shall be at the rate 50%
                of the Executive's Base Salary as in effect at the
                Date of Disability;
	 	 	 	 	 	 
	 	 	(ii)	In lieu of the bonus
                payments provided in Section 6(a)(i)(B), the
                Executive shall receive, at the same time as bonus
                payments for the year of Disability would otherwise
                be made under the Bonus Plan, a prorated bonus for
                the year of Disability only equal to the amount
                determined by the Company in good faith (which
                determination shall be final and conclusive) to be
                the amount of the bonus award the Executive would
                have received if he had been employed throughout
                the bonus year, prorated on a daily basis as of the
                Date of Disability; and
	 	 	 	 	 	 
	 	 	(iii)	Except for Accrued
                Obligations, Base Salary payments shall be offset
                by any amounts otherwise payable to the Executive
                under the Company's disability program generally
                available to other employees.
	 	 	 	 	 	 
	 	(c)	Death. In the
                event the Executive's employment hereunder
                terminates due to death:
	 	 	 	 	 	 
	 	 	(i)	Accrued Obligations as
                of the date of death shall be payable in
                full;
	 	 	 	 	 	 
	 	 	(ii)	From the date of the
                Executive's death until the end of the Term, the
                Company shall, at the same times Base Salary would
                otherwise be payable hereunder, make payments at
                the rate of 50% of the Executive's Base Salary in
                effect at the date of death to (A) the Executive's
                spouse at the date of his death, should she survive
                him and (B) following the death of the Executive's
                spouse or should she not survive him, to the
                Executive's estate.
	 	 	 	 	 	 
	 	(d)	Other Termination of
                Employment. In the event the Executive's
                employment hereunder terminates due to a
                Termination for Cause or the Executive terminates
                employment with the Company other than for Good
                Reason, Disability, retirement under established
                retirement policies of the Company, or death,
                Accrued Obligations and vested benefits as of the
                Date of Termination shall be payable in full on
                their regularly scheduled payment dates. No other
                payments shall be made, or benefits provided, by
                the Company except for benefits which have already
                become vested under the terms of employee benefit
                programs maintained by the Company or its
                affiliates for its employees generally as provided
                in Section 10. The foregoing is not intended to
                limit the remedies available to the Company under
                this Agreement.
	 	 	 	 	 	 
	 	(e)	Definitions. For
                purposes of this Agreement, the following terms,
                when capitalized, shall have the following meanings
                unless the context otherwise requires:
	 	 	 	 	 	 
	 	 	(i)	"Termination for Cause"
                means, to the maximum extent permitted by
                applicable law, a termination of the Executive's
                employment by the Company by a vote of the majority
                of the Board members then in office, because the
                Executive (a) has been convicted of, or has entered
                a plea of nolo contendere to, a criminal
                offense involving moral turpitude, or (b) has
                willfully continued to fail to substantially
                perform his duties with the Company (other than any
                such failure resulting from the Executive's
                incapacity due to physical or mental illness or any
                such failure subsequent to the Executive being
                delivered a Notice of Termination without Cause by
                the Company or delivering a Notice of Termination
                for Good Reason to the Company) after a written
                demand for substantial performance is delivered to
                the Executive by the Board which specifically
                identifies the manner in which the Board believes
                that the Executive has not substantially performed
                his duties or (c) has committed an improper action
                resulting in personal enrichment at the expense of
                the Company or (d) has engaged in illegal or gross
                misconduct that is materially and demonstrably
                injurious to the Company, or (e) has violated the
                representations made in Section 1 above, or the
                provisions of Section 7 below; provided,
                however that the Board has given the Executive
                advance notice of such Termination for Cause
                including the reasons therefor, together with a
                reasonable opportunity for the Executive to appear
                with counsel before the Board and to reply to such
                notice.
	 	 	 	 	 	 
	 	 	(ii)	a "Termination by the
                Executive for 'Good Reason'" shall mean a
                termination of his employment by the Executive by a
                Notice of Termination given at any time due
                to:
	 	 	 	 	 	 
	 	 	 	(A)	any material reduction
                without the consent of the Executive in the
                Executive's salary below the amount then provided
                for under Section 4(a) hereof; or
	 	 	 	 	 	 
	 	 	 	(B)	failure of the Company
                or its successor to fulfill its obligations under
                this Agreement in any material respect.
	 	 	 	 	 	 
	 	 	 	Executive may not
                resign for Good Reason without first providing the
                Company with written notice within thirty (30) days
                of the first occurrence of the condition that
                Executive believes constitutes Good Reason
                specifically identifying the acts or omissions
                constituting the grounds for Good Reason and
                providing a cure period of not less than ten (10)
                days following the date of such notice. The
                Executive's right to terminate employment for Good
                Reason shall not be affected by the Executive's
                incapacities due to mental or physical illness and
                the Executive's continued employment shall not
                constitute consent to, or a waiver of rights with
                respect to, any event or condition constituting
                Good Reason; provided, however, that the Executive
                must provide notice of termination of employment
                within 180 days following the Executive's knowledge
                of an event constituting Good Reason or such event
                shall not constitute Good Reason under this
                Agreement.
	 	 	 	 	 	 
	 	 	(iii)	"Without Cause
                Termination" means a termination of the Executive's
                employment by the Company other than due to
                Disability or expiration of the Term and other than
                a Termination for Cause.
	 	 	 	 	 	 
	 	 	(iv)	"Disability" for
                purposes of this Agreement shall have the meaning
                set forth in Code Section 409(a)(2)(C) and the
                regulations thereunder.
	 	 	 	 	 	 
	 	 	(v)	The "Date of
                Termination" and "Date of Disability" shall have
                the meanings ascribed to them in Section 13. To the
                fullest extent permitted by applicable law and the
                general terms of the underlying benefit plans, to
                the extent this Agreement requires the payment of
                Base Salary and/or the provision of coverages and
                benefits subsequent to the Date of Termination or
                Date of Disability, the Executive's Date of
                Termination or Date of Disability, as applicable,
                shall not be treated as a termination of employment
                (a "Benefit Plan Termination Date") from the
                Company for purposes of determining the Executive's
                rights, responsibilities and tax treatment under
                any and all employee pension, welfare and fringe
                benefit plans maintained by the Company. Rather,
                the Benefit Plan Termination Date shall be the day
                following the last day for which any Base Salary
                and/or coverages and benefits are required to be
                provided by this Agreement.
	 	 	 	 	 	 
	     7.     
            Other Duties of the Executive During and After
            Term.
	 	 	 	 	 	 
	 	(a)	Confidential
                Information. The Executive recognizes and
                acknowledges that certain information pertaining to
                the affairs, business, suppliers, or customers of
                the Company or any of its subsidiaries of
                affiliates (any or all of such entities hereinafter
                referred to as the "Business"), as such information
                may exist from time to time, is confidential
                information and is a unique and valuable asset of
                the Business, access to and knowledge of which are
                essential to the performance of his duties under
                this Agreement. The Executive shall not, through
                the end of the Term or at any time thereafter,
                except to the extent reasonably necessary in the
                performance of his duties under this Agreement,
                divulge to any person, firm, association,
                corporation or governmental agency, any information
                concerning the affairs, business, suppliers, or
                customers of the Business (except such information
                as is required by law to be divulged to a
                governmental agency or pursuant to lawful process
                or such information which is or shall become part
                of the public realm through no fault of the
                Executive), or make use of any such information for
                his own purposes or for the benefit of any person,
                firm, association or corporation (except the
                Business) and shall use his reasonable best efforts
                to prevent the disclosure of any such information
                by others. All records and documents relating to
                the Business, whether made by the Executive or
                otherwise coming into his possession are, shall be,
                and shall remain the property of the Business. No
                copies thereof shall be made which are not retained
                by the Business, and the Executive agrees, on any
                termination of his employment, or on demand of the
                Company, to deliver the same to the
                Company.
	 	 	 	 	 	 
	 	(b)	Non-Competition.
                During his employment by the Company, whether
                during or after the Term, and for a period of four
                years following the termination of his employment
                for any reason except for a Without Cause
                Termination or termination by the Executive for
                Good Reason, the Executive shall not, without
                express prior written approval by order of the
                Board, directly or indirectly, engage in, whether
                as an officer, director, employee, consultant,
                agent, partner, joint venture, proprietor or
                otherwise, become interested in (other than as a
                shareholder owning not more than 1% of the
                outstanding shares of any class of securities
                registered under Section 12 of the Securities
                Exchange Act of 1934) or assist any business which
                (i) is in competition with the Company or any of
                its affiliates in the retail grocery business or
                (A) during his employment, in any other business in
                which the Company or any of its subsidiaries is
                then engaged or proposes to engage or (B) following
                the termination of his employment, in any other
                business which during the 12 months preceding the
                Executive's Date of Termination accounted for more
                than 2% of the Company's consolidated revenues and
                (ii) engages in any such business in any county in
                which the Company then engages in such business or
                any county contiguous thereto.
	 	 	 	 	 	 
	 	(c)	Non-Interference. During his employment
                with the Company and until four years after the
                termination of the Executive's employment, whether
                during or after the Term and notwithstanding the
                cause of termination, the Executive shall not (i)
                hire or employ, directly or indirectly through any
                enterprise with which he is associated, any
                employee of the Company or any of its affiliates or
                (ii) recruit, solicit or induce (or in any way
                assist another person or enterprise in recruiting,
                soliciting or inducing) any such employee or any
                consultant, vendor or supplier of the Company or
                any of its affiliates to terminate or reduce such
                person's employment, consulting or other
                relationship with the Company or any of its
                affiliates.
	 	 	 	 	 	 
	 	(d)	Remedies. The
                Company's obligation to make payments or provide
                for or increase any benefits under this Agreement
                (except to the extent previously vested) shall
                cease upon any violation of the provisions of this
                Section 7: provided, however, that the
                Executive shall first have the right to appear
                before the Board with counsel and that such
                cessation of payments or benefits shall require a
                vote of a majority of the Board members then in
                office. In addition, in the event of a violation by
                the Executive of the provisions of this Section 7,
                the Company shall be entitled, if it shall so
                elect, to institute legal proceedings to obtain
                damages for any such breach, and/or to enforce the
                specific performance by the Executive of this
                Section 7 and to enjoin the Executive from any
                further violation, and may exercise such remedies
                cumulatively or in conjunction with such other
                remedies as may be available to the Company at law
                or in equity. The Executive acknowledges, however,
                that the remedies at law for any breach by him of
                the provisions of this Section 7 would be
                inadequate and agrees that the Company shall be
                entitled to injunctive relief against him in the
                event of any such breach.
	 	 	 	 	 	 
	 	(e)	Survival;
                Authorization to Modify Restrictions. The
                covenants of the Executive contained in this
                Section 7 shall survive any termination of the
                Executive's employment for the periods stated
                herein, whether during or after the Term and,
                except as otherwise provided in this Section 7,
                regardless of the reason for such termination. The
                Executive represents that his experience and
                capabilities are such that the enforcement of the
                provisions of this Section 7 will not prevent him
                from earning his livelihood, and acknowledges that
                it would cause the Company serious and irreparable
                injury and cost if the Executive were to use his
                ability and knowledge in competition with the
                Company or to otherwise breach the obligations
                contained in this Section 7. Accordingly, it is the
                intention of the parties that the provisions of
                this Section 7 shall be enforceable to the fullest
                extent permissible under applicable law, but that
                the unenforceability (or modification to conform to
                such law) of any provision or provisions hereof
                shall not render unenforceable, or impair, the
                remainder thereof. If any provision or provisions
                hereof shall be deemed invalid or unenforceable,
                either in whole or in part, this Agreement shall be
                deemed amended to delete or modify, as necessary,
                the offending provision or provisions and to alter
                the bounds thereof to the extent required in order
                to render it valid and enforceable.
	 	 	 	 	 	 
	     8.     
            Resolution of Disputes. Except as otherwise
            provided in Section 7(d) hereof, any dispute or
            controversy arising under or in connection with this
            Agreement shall be settled exclusively by arbitration
            in Sunbury, Pennsylvania, by three arbitrators in
            accordance with the rules of the American Arbitration
            Association then in effect. Judgment may be entered on
            the arbitrators' award in any court having
            jurisdiction. In the event of any arbitration,
            litigation or other proceeding between the Company and
            the Executive with respect to the subject matter of
            this Agreement and the enforcement of rights hereunder,
            the Company shall reimburse the Executive for his
            reasonable costs and expenses relating to such
            arbitration, litigation or other proceeding, including
            attorneys' fees and expenses, to the extent that such
            arbitration, litigation or other proceeding results in
            any: (i) settlement requiring the Company to make a
            payment, continue to make payments or provide any other
            benefit to the Executive; or (ii) judgment, order or
            award against the Company in favor of the Executive or
            his spouse, legal representative or heirs, unless such
            judgment, order or award is subsequently reversed on
            appeal or in a collateral proceeding. At the request of
            the Executive, costs and expenses (including attorneys'
            fees) incurred in connection with any arbitration,
            litigation or other proceeding referred to in this
            Section shall be paid by the Company in advance of the
            final disposition of the arbitration, litigation or
            other proceeding upon receipt of an undertaking by or
            on behalf of the Executive to repay the amounts
            advanced if it is ultimately determined that he is not
            entitled to reimbursement of such costs and expenses by
            the Company a set forth in this Section.
	 	 	 	 	 	 
	     9.     
            Full Settlement; No Mitigation; Non-Exclusivity of
            Benefits. The Company's obligation to make any
            payment provided for in this Agreement and otherwise to
            perform its obligations hereunder shall be in lieu and
            in full settlement of all other severance payments to
            the Executive under any other severance plan,
            arrangement or agreement of the Company and its
            affiliates, and in full settlement of any and all
            claims or rights of the Executive for severance,
            separation and/or salary continuation payments
            resulting from the termination of his employment. In no
            event shall the Executive be obligated to seek other
            employment or to take other action by way of mitigation
            of the amounts payable to the Executive under any of
            the provisions of this Agreement, and except as
            specifically provided herein, such amounts shall not be
            reduced whether or not the Executive obtains other
            employment. Except as provided above in this Section 9,
            nothing in this Agreement shall prevent or limit the
            Executive's continuing or future participation in any
            plan, program policy or practice provided by the
            Company or any of its affiliates for which the
            Executive may qualify, nor except as otherwise
            specifically provided in this Agreement, shall anything
            herein limit or otherwise affect such rights as the
            Executive may have under any contract or agreement with
            the Company or any of its affiliates, including without
            limitation any stock option agreement. Amounts or
            benefits which are vested benefits or which the
            Executive is otherwise entitled to receive under any
            such plan, program, policy, practice, contract or
            agreement prior to, at or subsequent to any Date of
            Termination or Date of Disability shall be paid or
            provided in accordance with the terms of such plan,
            program policy, practice, contract or agreement except
            as explicitly modified by this Agreement.
	 	 	 	 	 	 
	     10.     
            Employment and Payments by Affiliates. Except as
            herein otherwise specifically provided, references in
            this Agreement to employment by the Company shall
            include employment by affiliates of the Company, and
            the obligation of the Company to make any payment or
            provide any benefit to the Executive hereunder shall be
            deemed satisfied to the extent that such payment is
            made or such benefit is provided by any affiliate of
            the Company.
	 	 	 	 	 	 
	     11.     
            Withholding Taxes. The Company may directly or
            indirectly withhold from any payments made under this
            Agreement all Federal, state, city or other taxes as
            shall be required pursuant to any law or governmental
            regulation or ruling.
	 	 	 	 	 	 
	     12.     
            Consolidation, Merger, or Sale of Assets. Nothing
            in this Agreement shall preclude the Company from
            consolidating or merging into or with, or transferring
            all or substantially all of its assets to, another
            corporation or entity which assumes this Agreement and
            all obligations and undertakings of the Company
            hereunder. Upon such a consolidation, merger or
            transfer of assets and assumption, the term, "Company"
            as used herein shall mean such other corporation or
            entity, and this Agreement shall continue in full force
            and effect.
	 	 	 	 	 	 
	     13.     
            Notices.
	 	 	 	 	 	 
	 	(a)	General. All
                notices, requests, demands and other communications
                required or permitted hereunder shall be given in
                writing and shall be deemed to have been duly given
                when delivered or 5 days after being deposited in
                the United States mail, certified and return
                receipt requested, postage prepaid, addressed as
                follows:
	 	 	 	 	 	 
	 	 	(i)	To the
                Company:
	 	 	 	 	 	 
	 	 	 	Weis Markets,
                Inc.
	 	 	 	1000 S. Second
                Street
	 	 	 	P.O. Box
                471
	 	 	 	Sunbury, PA
                17801
	 	 	 	 	 	 
	 	 	 	Attention: Corporate
                Secretary
	 	 	 	 	 	 
	 	 	(ii)	To the
                Executive:
	 	 	 	 	 	 
	 	 	 	Jonathan H.
                Weis
	 	 	 	1000 S. Second
                Street
	 	 	 	P.O. Box
                471
	 	 	 	Sunbury, PA
                17801
	 	 	 	 	 	 
	Or to such other
                address as the addressee party shall have
                previously specified in writing to the
                other.
	 	 	 	 	 	 
	 	(b)	Notice of
                Termination. Except in the case of death of the
                Executive, any termination of the Executive's
                employment hereunder, whether by the Executive or
                the Company, shall be effected only by a written
                notice given to the other party in accordance with
                this Section 13 (a "Notice of Termination"). Any
                Notice of Termination shall (i) indicate the
                specific termination provision in Section 6 relied
                upon, (ii) in the case of a termination by the
                Company for Cause or by the Executive for Good
                Reason, set forth in reasonable detail the facts
                and circumstances claimed to provide a basis for
                such termination and (iii) specify the effective
                date of such termination of employment (the "Date
                of Termination"), which shall not be less than 15
                days nor more than 60 days after such notice is
                given. Notwithstanding anything to the contrary in
                this Agreement, no severance pay or benefits to be
                paid or provided to Executive, if any, pursuant to
                this Agreement that, when considered together with
                any other severance payments or separation
                benefits, are considered deferred compensation
                under Section 409A will be paid or otherwise
                provided until Executive has a "separation from
                service" within the meaning of Section 409A. The
                failure of the Executive or the Company to set
                forth in any Notice of Termination any fact or
                circumstance which contributes to a showing of
                Cause or Good Reason shall not waive any right of
                the Executive or the Company hereunder or preclude
                the Executive or the Company from asserting such
                fact or circumstance in enforcing the Executive's
                or the Company's rights hereunder.
	 	 	 	 	 	 
	 	(c)	Notice of
                Disability. Any finding of Disability by the
                Company shall be affected only by a written notice
                given to the Executive in accordance with this
                Section 13 (a "Notice of Disability"). Any Notice
                of Disability shall (i) set forth in reasonable
                detail the facts and circumstances claimed to
                provide a basis for such finding of Disability and
                (ii) specify an effective date (the "Date of
                Disability''), which shall not be less than 10 days
                after such notice is given. The failure of the
                Company to set forth in any Notice of Disability
                any fact or circumstance which contributes to a
                showing of Disability shall not waive any right of
                the Company hereunder or preclude the Company from
                asserting such fact or circumstance in enforcing
                the Company's rights hereunder.
	 	 	 	 	 	 
	     14.     
            Source of Payments. Subject to Section 10 hereof,
            all payments provided for under this Agreement shall be
            paid in cash from the general funds of the Company. The
            Company shall not be required to establish a special or
            separate fund or other segregation of assets to assure
            such payments, and, if the Company shall make any
            investments to aid it in meeting its obligations
            hereunder, the Executive shall have no right, title or
            interest whatever in or to any such investments except
            as may otherwise be expressly provided in a separate
            written instrument relating to such investments.
            Nothing contained in this Agreement, and no action
            taken pursuant to its provisions, shall create or be
            construed to create a trust of any kind, or a fiduciary
            relationship, between the Company and the Executive or
            any other person. To the extent that any person
            acquires a right to receive payments from the Company,
            hereunder, such right shall be no greater than the
            right of an unsecured creditor.
	 	 	 	 	 	 
	     15.     
            Binding Agreement. This Agreement shall be binding
            upon, and shall inure to the benefit of, the Executive
            and the Company and, as permitted by this Agreement,
            their respective successors, assigns, heirs,
            beneficiaries and representatives.
	 	 	 	 	 	 
	     16.     
            Governing Law. The validity, interpretation,
            performance and enforcement of this Agreement shall be
            governed exclusively by the laws of the Commonwealth of
            Pennsylvania, without regard to principles of conflicts
            of laws thereof.
	 	 	 	 	 	 
	     17.     
            Counterparts; Headings. This Agreement may be
            executed in counterparts, each of which, when executed,
            shall be deemed to be an original and all of which
            together shall be deemed to be one and the same
            instrument. The underlined Section headings contained
            in this Agreement are for convenience of reference only
            and shall not affect the interpretation or construction
            of any provision hereof.
	 	 	 	 	 	 
	IN WITNESS THEREOF, The
                Company has caused this Agreement to be executed by
                its Officer thereunto duly authorized, and the
                Executive has signed this Agreement, all of this
                date first above.
	 	 	 	 	 	 
	 	 	 	 	 	WEIS MARKETS,
                INC.
	 	 	 	 	 	 
	 	 	 	 	 	By: /s/ Scott
                Frost
	 	 	 	 	 	Name: Scott
                Frost
	 	 	 	 	 	Title:   Chief Financial
                Officer
	 	 	 	 	 	 
	 	 	 	 	 	/s/ Jonathan H.
                Weis
	 	 	 	 	 	Jonathan H.
                Weis

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