“Bonus Severance” means the multiple, as indicated, of Executive’s Target Bonus (ignoring any decrease in Target Bonus that forms the basis for Good Reason) for the performance year in which the Qualifying Termination occurs (or, if greater, the Target Bonus for the year preceding the year in which the Qualifying Termination occurs).

Paragraph 3(b)(ii) of the Agreement is hereby modified to increase your Target Bonus to 120% of your Salary; provided that your Target Bonus for the 2024 fiscal year shall be blended to reflect your Target Bonus before and after the date shown above.

Your target bonus, as it may be so increased from time to time, is referred to herein as the “Target Bonus.” As the actual amount payable to you as Bonus will be dependent, among other things, upon the achievement of the performance goal(s) referred to in paragraph 3(b)(ii), your actual Bonus may be less than, greater than or equal to the Target Bonus.

Any Bonus or Pro-Rated Bonus payable pursuant to paragraphs 11, 13 or 14 shall be paid at the lesser of # your Target Bonus amount or # your Target Bonus amount, adjusted based on the Company Performance Factor for the relevant year.

If the income before taxes target is not met at the 100% level, the participant's bonus with respect to that target is prorated on a straight line basis if the participant achieves a range of 85% to 100% of target, with no bonus paid at less than 85% of target. In addition, our Executive Officers (other than the Chairman) can receive an additional maximum performance bonus if income before taxes exceeds 100% of target, up to an amount equal to 60% of the base bonus (80% in the case of the Chief Executive Officer). If the Company exceeds the target, these participants each earn a bonus equal to 6% of the amount of earnings before income taxes (net of such bonuses) that exceeds the target, up to their respective maximum performance bonus amount.

The Committee shall approve annually, no later than the 90th day of a Bonus Year, the individual target amount of bonus (the “Bonus Target”) that may be awarded for a Bonus Year to each Participant; the specific Performance Criteria to be used to determine the amount of bonus, if any, to be paid to each Participant for the Bonus Year; and the formula for determining the percentage of a Bonus Target that is payable based upon the achievement of Performance Criteria. The Performance Criteria may differ from and carry a different weight from Participant to Participant. The Bonus Target and Performance Criteria for each Participant for each Bonus Year shall be established in writing by the Committee.

“Target Annual Bonus” means, with respect to any Participant, the Participant’s target bonus opportunity under the Company’s annual incentive plan applicable to the Participant.

DETERMINATION OF BONUS TARGETS AND PEFORMANCE TARGETS A. Bonus Targets - The Bonus Target, as assigned to a Participant, shall be determined and communicated as a part of the annual compensation process. Final approval of each Bonus Target shall be made by the Committee.

Annual Bonus Compensation. During the Term, Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) pursuant to the terms and conditions of the Company’s annual incentive plan for executive officers (or any successor thereto). Based upon attainment of performance goals predetermined by the Compensation Committee, Executive shall be entitled to an Annual Bonus payment at a target level of 50% of Executive’s Annual Salary. The Compensation Committee shall review the target annual bonus percentage during the Term and may increase such percentage as it may deem advisable (such target annual bonus, as the same may be increased, the “Target Annual Bonus”).

Bonus. The Employee shall be entitled to a percentage bonus of ten percent (10%) of the net gross proft of the Company from the preway and snakevape business units (the “Percentage Bonus”). The Company’s Income Statements, which bonus percentage will be generated from, shall comply with current GAAP principles. Employee shall have the right to review an annual independent, third party audit of the Company’s financial statements. The Percentage Bonus shall be paid by Company to Employee on a quarterly basis.