SEC Contract Filing

Filing Date: 2024-09-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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 <title>Flora Growth Corp.: Exhibit 10.1 - Filed by newsfilecorp.com</title>
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 <p style="text-align: center;"><b>Stock Appreciation Rights Agreement</b></p>
 <p style="text-align: justify; margin-left: 5pt; margin-bottom: 0pt; text-indent: 24.45pt;">This Stock Appreciation Rights Agreement ("<u>SAR Agreement</u>") evidences the grant to _____________ (the "<u>Participant</u>") by Flora Growth Corp. (the "<u>Company</u>") of the right to receive shares of Common Stock of the Company (the "<u>Shares</u>") on the terms and conditions provided for below (the "<u>SARs</u>").</p>
 <p style="text-align: justify; margin-left: 5pt; text-indent: 24.45pt;">1.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Grant Date and Term. </i>The date on which the SARs are granted is ______, 20__ (the "<u>Grant Date</u>"). The term of the SARs is from the Grant Date until the tenth anniversary of the Grant Date with a post-termination exercise period of one year. In addition to the foregoing, all SARs granted hereunder shall remain unexercisable and shall be subject to forfeiture, unless the Company's shareholders approve such SAR grant at the Company's annual shareholder meeting held on ______, 202_.</p>
 <p style="text-align: justify; margin-left: 5pt; text-indent: 24.45pt;">2.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Number of Shares Subject to SARs; Rights Conferred by Grant of SARs. </i>The number of Shares subject to the SARs is ________. The SARs represent the right, upon exercise, to receive a number of Shares with a fair market value, determined on the date of exercise, equal to the product of (i) the aggregate number of Shares with respect to which this SAR is exercised and (ii) the excess of (A) the fair market value of a Share as of the date of exercise over (B) the SAR Base Price specified below. The fair market value of a share on the date of exercise shall be determined as provided in <u>Section 5</u> below. The Participant shall not be entitled to receive a cash payment in respect of the Shares underlying the SARs on any dividend payment date for the Shares.</p>
 <p style="margin-left: 41.45pt; text-indent: -12.05pt; text-align: justify;">3.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Base Price. </i>The Base Price of the SARs is $_______.</p>
 <p style="text-align: justify; margin-left: 5pt; text-indent: 24.45pt;">4.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font>Vesting. The SARs shall vest in ___ tranches with each tranche representing ___% of the total outstanding shares. The first tranche shall vest upon the Company's stock increasing by 50% from the share price at grant date with each tranche thereafter requiring an additional 50% increase in share price to vest in accordance with the following schedule:</p>
 <p style="text-align: center;">[<i>Insert Vesting Schedule</i>]</p>
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 <p style="text-align: justify; margin-left: 5pt; text-indent: 24.45pt;">5.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Exercise of SARs. </i>the Participant may exercise a vested SAR, in whole or in part, at any time during the term of the SARs by providing written notice to the Company stating the number of shares in respect of which the SAR is being exercised. Such written notice may be delivered in person or by certified mail to the Chief Financial Officer of the Company. Upon exercise, the Participant will receive a number of Shares having a fair market value at the time of exercise equal to the product of (A) the excess of the fair market value of a Share at time of exercise over the Base Price and (B) the number of Shares with respect to which the SARs are exercised. For purposes of this <u>Section 5</u>, fair market value shall be the most recent real time closing price of a Share at the time of exercise of the SAR based on transactions reported on the NASDAQ or other national securities exchange, provided that if the Shares are not then listed and traded on the NASDAQ or other national securities exchange, fair market value shall be what the Company determines in good faith to be the fair market value of a Share at the time of such exercise, using such criteria as it shall determine, in its discretion, to be appropriate for valuation.</p>
 <p style="margin-left: 41.45pt; text-indent: -12.05pt; text-align: justify;">6.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Transferability of SAR</i>.</p>
 <p style="margin-left: 41.45pt; text-indent: -12.05pt; text-align: justify;">The SARs granted hereby shall not be transferable.</p>
 <p style="text-align: justify; margin-left: 5pt; text-indent: 24.45pt;">7.<font style="width: 3.05pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Withholding Taxes. </i>No later than the date as of which an amount first becomes includible in the gross income of the Participant for federal income tax purposes with respect to the SARs, the Participant shall pay to the Company or make arrangements satisfactory to the Company regarding the payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount. If approved by the Company in its sole discretion, the minimum required withholding obligations may be settled with Shares, including without limitation Shares otherwise delivered upon exercise of the SARs. The obligations of the Company under this SAR Agreement shall be conditional on such paym