I had to look this up on Loeb's Library. (I'm not an expert in Latin.)
Exhibenda is a gerundivegerundive: an adjectival form of a verb, indicating that the action of the verb must or ought to be done. It's comparable to the English construction "to be past participle", as in "The poor are to be pitied, not blamed." The full sentence is:
Quod si essem natura asperior et durior, frangeret me tamen infirmitas liberti mei Zosimi, cui tanto maior humanitas exhibenda est, quanto nunc illa magis eget.
Exhibenda modifies humanitas: the first clause in bold literally means, "to whom as much more kindness [humanitas] must be shown [exhibenda est]". The second clause in bold literally means, "according as he now needs it [illā, ablative, referring to humanitas] more."
Literally translated, the elegant Latin becomes clumsy English. Fortunately we have Betty Radice's liberal translation into clear and graceful English:
Even if I were harsh and unfeeling by nature, my heart would be softened by the illness of my freedman Zosimus, whose claim to sympathy is all the stronger now that he needs it so much.