SEC Contract Filing

Filing Date: 2023-11-29

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>tm2331522d1_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.1&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>22nd Century Group, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">500 Seneca Street, Suite 508</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Buffalo, New York</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(716) 270-1523</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Dated as of November [&nbsp; ], 2023</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To Holders of Common Stock Purchase Warrants</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Re: <U>Inducement Offer to
Exercise Common Stock Purchase Warrants</U></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Holder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">22nd Century Group, Inc. (the
 &ldquo;<U>Company</U>&rdquo;) is pleased pursuant to this letter agreement (this &ldquo;<U>Agreement</U>&rdquo;) to offer to you the opportunity
to exercise all or part of: (i) the common stock purchase warrants of the Company issued to you on or about June 22, 2023 (&ldquo;<U>June
Warrants</U>&rdquo;); (ii) the common stock purchase warrants of the Company issued to you on or about July 10, 2023 (&ldquo;<U>July 10
Warrants</U>&rdquo;); (iii) the common stock purchase warrants of the Company issued to you on or about July 21, 2023 (&ldquo;<U>July
21 Warrants&rdquo;)</U>; and/or (iv) the common stock purchase warrants of the Company issued to you on or about October 19, 2023 (&ldquo;<U>October
Warrants</U>&rdquo;), each with an exercise price of $0.525 per share (June Warrants, July 10 Warrants, July 21 Warrants, and October
Warrants, collectively, the &ldquo;<U>Existing Warrants</U>&rdquo;), set forth on the signature page hereto, which are currently held
by you (the &ldquo;<U>Holder</U>&rdquo;). The Existing Warrants and all of the shares of common stock, par value $0.00001 per share, of
the Company (the &ldquo;<U>Common Stock</U>&rdquo;) underlying the Existing Warrants (the &ldquo;<U>Existing Warrant Shares</U>&rdquo;)
have been offered and sold in a registered offering (the &ldquo;<U>Offering</U>&rdquo;) pursuant to the Company&rsquo;s registration statement
on Form S-3 (File No. 333-270473), which was declared effective by the U.S. Securities Exchange Commission (the &ldquo;<U>Commission</U>&rdquo;)
on March 31, 2023 (the &ldquo;<U>Registration Statement</U>&rdquo;). The Registration Statement is currently effective and, upon exercise
of the Existing Warrants pursuant to this letter agreement, will be effective for the issuance or sale, as the case may be, of the Existing
Warrant Shares. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Existing Warrants. In addition,
each and every reference to share prices or exercise prices in any Existing Warrant shall be subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur prior to the date of this
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0.5in; text-align: justify">The
Company desires to reduce the Exercise Price (as defined in the respective Existing Warrants) of the Existing Warrants to $[ &nbsp;]
per share (the &ldquo;<U>Reduced Exercise Price</U>&rdquo;). In consideration for exercising the Existing Warrants held by you in full
or in part for the number of Existing Warrant Shares set forth on the signature page hereto (the &ldquo;<U>Warrant Exercise</U>&rdquo;),
the Company hereby offers to issue you or your designee a new common stock purchase warrant (the &ldquo;<U>New Warrant</U>&rdquo;) pursuant
to Section 4(a)(2) of the Securities Act of 1933, as amended (&ldquo;<U>Securities Act</U>&rdquo;), to purchase up to a quantity of shares
of Common Stock (the &ldquo;<U>New Warrant Shares</U>&rdquo;) equal to 200% of the number of Existing Warrant Shares issued pursuant
to the exercise of the Existing Warrants hereunder, which New Warrant shall be substantially in the form of the Existing Warrants, will
be exercisable at any time on or after the Stockholder Approval Date (as defined in the New Warrant), have an expiration date of five
years from the Stockholder Approval Date, and an exercise price equal to the Nasdaq Minimum Price (as defined in the as defined in Nasdaq
Listing Rule 5635(d)).</P>

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