Exhibit 10.17


 


INDEMNITY AGREEMENT


 


This Indemnity Agreement
(the “Agreement”), dated as of _____________, 2021, is entered into by and among Parasol Investments Corporation,
a Delaware corporation (the “Parent”), SmartKem Limited, a United Kingdom corporation (“SmartKem”
and together with the Parent, the “Companies”), and the undersigned Indemnitee (the “Indemnitee”).


 


W I T N E S S E T H:


 


WHEREAS, Indemnitee
is a director on the board of directors of the Parent (the “Board of Directors”) and/or an officer of the Parent
and in such capacity(ies) is performing valuable services for the Parent; and


 


WHEREAS, the Parent,
the shareholders of SmartKem (the “SmartKem Shareholders”), and SmartKem plan to enter into a Share Exchange
Agreement (the “Exchange Agreement”), pursuant to which SmartKem Shareholders will receive common stock of the
Parent in exchange for their capital stock of SmartKem, (the “Exchange”); and


 


[WHEREAS, Indemnitee
is willing to continue to serve in such capacity(ies) until the Effective Time (as defined in the Exchange Agreement) on the condition
that he be indemnified as herein provided; and]1


 


WHEREAS, it is intended
that Indemnitee shall be paid promptly by the Companies all amounts necessary to effectuate in full the indemnity provided herein;


 


NOW, THEREFORE, in
consideration of the premises and the covenants in this Agreement, and of Indemnitee and the Companies intending to be legally
bound hereby, the parties hereto agree as follows:


 


1.    [Services
by Indemnitee. Indemnitee agrees to serve as director or officer of the Parent, or both, so long as Indemnitee is duly appointed
or elected and qualified in accordance with the applicable provisions of the certificate of incorporation and bylaws of the Parent,
and until such time as Indemnitee resigns or fails to stand for election or is removed from Indemnitee’s positions. Indemnitee
may from time to time also perform other services at the request or for the convenience of, or otherwise benefiting the Parent.]1


 


2.    Indemnification.
Subject to the limitations set forth herein and in Section 6 hereof, the Companies hereby agree to indemnify
Indemnitee as follows:


 


The Companies shall,
from and after the Effective Time, with respect to any Proceeding (as hereinafter defined), indemnify Indemnitee to the fullest
extent permitted by (in the case of the Parent) Section 145 of the General Corporation Law of the State of Delaware (the “DGCL”)
and the certificate of incorporation and by-laws of the Parent or SmartKem in effect on the date hereof or as such law or constitutive
document may from time to time be amended (but, in the case of any such amendment, only to the extent such amendment permits the
relevant Company to provide broader indemnification rights than applicable law or constitutive document permitted the applicable
Company to provide before such amendment). Notwithstanding the foregoing, the Companies shall not be required to indemnify Indemnitee
for acts or omissions of Indemnitee constituting fraud, bad faith, gross negligence or intentional misconduct. The right to indemnification
conferred herein and in the constitutive documents of the Companies shall be presumed to have been relied upon by Indemnitee in
serving the Parent and shall be enforceable as a contract right. Without in any way diminishing the scope of the indemnification
provided by this Section 2, the Companies will, from and after the Effective Time, indemnify Indemnitee against
Expenses (as hereinafter defined) and Liabilities (as hereinafter defined) actually and reasonably incurred by Indemnitee or on
their behalves in connection with the investigation, defense, settlement or appeal of such Proceeding. In addition to, and not
as a limitation of, the foregoing, the rights of indemnification of Indemnitee provided under this Agreement shall include those
rights set forth in Section 8 below. Notwithstanding the foregoing, from and after the Effective Time, the
Companies shall be required to indemnify Indemnitee in connection with a Proceeding commenced by Indemnitee (other than a Proceeding
commenced by Indemnitee to enforce Indemnitee’s rights under this Agreement) only if the commencement of such Proceeding
was authorized by the Board of Directors following the Effective Time. Notwithstanding anything to the contrary contained herein,
the Parent shall have no obligation to indemnify the Indemnitee to the extent such indemnification would not be permitted under
Section 145 of the DGCL or the Parent’s certificate of incorporation in effect on the date hereof.


 





 






1 Assuming
a simultaneous sign and close, the bracketed provisions won’t be needed.


 






     


     


    

 


3.    Presumptions
and Effect of Certain Proceedings. Upon making a request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification under this Agreement and the Companies shall have the burden of proof to overcome that presumption in reaching
any contrary determination. The termination of any Proceeding by judgment, order, settlement, arbitration award or conviction,
or upon a plea of nolo contendere or its equivalent, shall not affect this presumption or, except as determined by a judgment or
other final adjudication adverse to Indemnitee, establish a presumption with regard to any factual matter relevant to determining
Indemnitee’s rights to indemnification hereunder.


 


4.    Advancement
of Expenses. To the extent not prohibited by law, from and after the Effective Time, the Companies shall advance the Expenses
or Liabilities incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made within thirty (30) calendar
days after the receipt by the Companies of a statement or statements requesting such advances (which shall include invoices received
by Indemnitee in connection with such Expenses or Liabilities but, in the case of invoices in connection with legal services, any
references to legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable
law shall not be included with the invoice) and upon request of the Companies, an undertaking to repay the advancement of Expenses
or Liabilities if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment,
not subject to appeal, that Indemnitee is not entitled to be indemnified by the Companies. Advances shall be unsecured, interest
free and without regard to Indemnitee’s ability to repay the expenses. Advances shall include any and all Expenses and/or
Liabilities actually and reasonably incurred by Indemnitee pursuing an action to enforce Indemnitee’s right to indemnification
under this Agreement, or otherwise and this right of advancement, including Expenses and/or Liabilities incurred preparing and
forwarding statements to the Company to support the advances claimed. Indemnitee acknowledges that the execution and delivery of
this Agreement shall constitute an undertaking providing that Indemnitee shall, to the fullest extent required by law, repay the
advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject
to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances under this Section shall continue
until final disposition of any proceeding, including any appeal therein. This Section 4 shall not apply to
any claim made by Indemnitee for which indemnity is excluded pursuant to Section 15(d)(ii).


 






     


     


    

 


5.    Procedure
for Determination of Entitlement to Indemnification.


 


(a)    Whenever
Indemnitee believes that Indemnitee is entitled to indemnification pursuant to this Agreement, Indemnitee shall submit a written
request for indemnification or advancement of expenses to the Companies. Any request for indemnification or advancement of expenses
shall include sufficient documentation or information reasonably available to Indemnitee for the determination of entitlement to
indemnification or advancement of expenses. In any event, Indemnitee shall submit Indemnitee’s claim for indemnification
or advancement of expenses within a reasonable time, not to exceed sixty calendar (60) days after any judgment, order, settlement,
dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its equivalent, or final termination, whichever
is the later date for which Indemnitee requests indemnification.


 


(b)    Independent
Legal Counsel (as hereinafter defined) shall determine whether Indemnitee is entitled to indemnification or advancement of expenses.
Determination of Indemnitee’s entitlement to indemnification or advancement of expenses shall be made not later than ninety
calendar (90) days after the Companies’ receipt of Indemnitee’s written request for such indemnification or advancement
of expenses, provided that any request for indemnification or advancement of expenses for Liabilities, other than amounts paid
in settlement, shall have been made after a determination thereof in a Proceeding.


 


6.    Specific
Limitations on Indemnification. Notwithstanding anything in this Agreement to the contrary, the Companies shall not be obligated
under this Agreement to make any indemnity or payment to Indemnitee in connection with any claim against Indemnitee:


 


(a)    to
the extent that payment is actually made to Indemnitee under any insurance policy, contract, agreement or otherwise or is made
to Indemnitee by either of the Companies or affiliates otherwise than pursuant to this Agreement. Notwithstanding the availability
of such insurance, Indemnitee also may claim indemnification from the Companies pursuant to this Agreement by assigning to the
Companies any claims under such insurance to the extent Indemnitee is paid by the Companies;


 


(b)    for
Liabilities in connection with Proceedings settled without the Companies’ consent, which consent, however, shall not be unreasonably
withheld;


 






     


     


    

 


(c)    in
no event shall the Companies be liable to pay the fees and disbursements of more than one counsel in any single Proceeding except
to the extent that, in the opinion of counsel of the Indemnitee, the Indemnitee has conflicting interests in the outcome of such
Proceeding;


 


(d)    to
the extent it would be otherwise prohibited by law, if so established by a judgment or other final adjudication adverse to Indemnitee;


 


(e)    for
an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Companies within
the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory
law or common law;


 


(f)    in
connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of
any Proceeding) initiated by Indemnitee against the Companies or their directors, officers, employees or other indemnitees, unless
(i) the commencement of such Proceeding was authorized by the Board of Directors (or any part of any Proceeding) prior to
its initiation and following the Effective Time, or (ii) the Company provides the indemnification, in its sole discretion,
pursuant to the powers vested in the Company under applicable law; or


 


(g)    for
any reimbursement of the Companies by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits
realized by Indemnitee from the sale of securities of the Companies, as required in each case under the Securities Exchange Act
of 1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304
of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Companies of profits
arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if
Indemnitee is held liable therefor.


 


7.    Fees
and Expenses of Independent Legal Counsel. The Companies agree to pay the reasonable fees and expenses of Independent Legal
Counsel and to fully indemnify such Independent Legal Counsel against any and all reasonable expenses and losses incurred by any
of them arising out of or relating to this Agreement or their engagement pursuant hereto.


 


8.    Remedies
of Indemnitee.


 


(a)    In
the event that (i) a determination pursuant to Section 5 hereof is made that Indemnitee is not entitled
to indemnification, (ii) payment has not been timely made following a determination of entitlement to indemnification pursuant
to this Agreement, (iii) the person or persons empowered to make a determination pursuant to Section 5 hereof
shall have failed to make the requested determination within ninety calendar (90) days after the Companies’ receipt
of Indemnitee’s written request for such indemnification or advancement of expenses, or (iv) Indemnitee otherwise seeks
enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in a court of competent jurisdiction in the
State of Delaware of the remedy sought.


 


(b)    If
a determination that Indemnitee is entitled to indemnification has been made pursuant to Section 5 hereof,
or is deemed to have been made pursuant to Section 5 hereof or otherwise pursuant to the terms of this Agreement,
the Companies shall be bound by such determination in the absence of a misrepresentation or omission of a material fact by Indemnitee
in connection with such determination.


 






     


     


    

 


(c)    The
Companies shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and enforceable.
The Companies shall stipulate in any such court or before any such arbitrator that the Companies are bound by all the provisions
of this Agreement and are precluded from making any assertion to the contrary.


 


(d)    Expenses
reasonably incurred by Indemnitee in connection with Indemnitee’s request for indemnification under, seeking enforcement
of or to recover damages for breach of this Agreement shall be borne by the Companies when and as incurred by Indemnitee, to the
extent it is determined that Indemnitee is entitled to indemnification hereunder.


 


9.    Contribution.
To the fullest extent permissible under applicable law, in the event the Companies are obligated to indemnify Indemnitee under
this Agreement and the indemnification provided for herein is unavailable to Indemnitee for any reason whatsoever, the Companies,
in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties,
excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable
event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding
in order to reflect (i) the relative benefits received by the Companies and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Companies (and their respective directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).


 


10.  Modification,
Waiver, Termination and Cancellation. No supplement, modification, termination, cancellation or amendment of this Agreement
shall be binding unless executed in writing by all of the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute
a continuing waiver.


 


11.  Subrogation.
In the event of any payment under this Agreement, the Companies shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure
such rights, including the execution of such documents necessary to enable the Companies effectively to bring suit to enforce such
rights.


 


12.  Notice
by Indemnitee and Defense of Claim. Indemnitee shall promptly notify the Companies in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil, criminal, administrative
or investigative for which such Indemnitee is entitled to indemnification or an advancement of expenses hereunder, but the omission
so to notify the Companies will not relieve it from any liability that it may have to Indemnitee if such omission does not prejudice
the Companies’ rights. If such omission does prejudice the Companies’ rights, the Companies will be relieved from liability
only to the extent of such prejudice. No such omission shall relieve the Companies of any liability they may otherwise have to
Indemnitee outside of this Agreement under applicable law, the Companies’ constitutive documents or any agreements.


 






     


     


    

 


13.  Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly delivered and received
hereunder (a) one business day after being sent for next business day delivery, fees prepaid, via a reputable international
overnight courier service, (b) upon delivery in the case of delivery by hand, or (c) on the date delivered in the place
of delivery if sent by email (with a written or electronic confirmation of delivery from the recipient, excluding any automated
response) prior to 5:00 p.m. Eastern time, otherwise on the next succeeding business day, in each case to the intended recipient
as set forth below:


	 
	(a)	If to the Parent	Parasol Investments Corporation
	 	(prior to Exchange closing):	2255 Glades Road, Suite 324A
	 	 	Boca Raton, Florida 33431
	 	 	Attn: Ian Jacobs, CEO
	 	 	Email: ian@montrosecapital.com
	 	 	 
	(b)	If to SmartKem or the Parent (after Exchange closing):	SmartKem Limited
	 	 	Hexagon Tower
	 	 	Delaunays Road, Blackley
	 	 	Manchester 
	 	 	M9 8GQ
	 	 	Attn: [______]
	 	 	 Email: [______]
	 	 	 
	(c)	If to Indemnitee:	The address set forth on the signature page hereto.


or any party may change the address to
which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties notice
in the manner herein set forth.


 


14.  Non-Exclusivity.
The rights of Indemnitee hereunder shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under
applicable law, the Companies’ constitutive documents, or any agreements, vote of stockholders, resolution of the Boards
of Directors or otherwise with respect to any Proceeding (as hereinafter defined) associated with Indemnitee acting in his official
capacity as an officer and director of the Parent arising out of or pertaining to actions relating to the approval of and entering
into the Exchange Agreement, the Transaction Documentation (as defined in the Exchange Agreement), the Exchange and each of the
transactions contemplated thereby, whether asserted or claimed prior to, at or after the Effective Time.


 






     


     


    

 


15.    Certain
Definitions.


 


(a)  “Expenses”
shall include all direct and indirect costs (including, without limitation, attorneys’ fees, retainers, court costs, transcripts,
fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees, all other disbursements or out-of-pocket expenses) actually and reasonably incurred in connection with either the
investigation, defense, settlement or appeal of a Proceeding or establishing or enforcing a right to indemnification under this
Agreement, applicable law or otherwise; provided, however, that “Expenses” shall not include any Liabilities.


 


(b)  “Independent
Legal Counsel” means a law firm or a member of a firm selected by the Companies and approved by Indemnitee (which approval
shall not be unreasonably withheld). Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not
include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest
in representing either the Companies or Indemnitee in an action to determine Indemnitee’s right to indemnification under
this Agreement.


 


(c)  “Liabilities”
means liabilities of any type whatsoever including, but not limited to, any judgments, fines, ERISA excise taxes and penalties,
penalties and amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with
or in respect of such judgments, fines, penalties or amounts paid in settlement) of any Proceeding.


 


(d)  “Proceeding”
means any threatened, pending or completed action, claim, suit, arbitration, alternative dispute resolution mechanism, investigation,
administrative hearing or any other proceeding, whether civil, criminal, administrative or investigative, that (i) is asserted
or claimed or otherwise arises after the Effective Time, (ii) is associated with Indemnitee’s actions as an officer
and/or director of the Parent arising out of or pertaining to actions relating to the approval of and entering into the Exchange
Agreement, the Transaction Documentation (as defined in the Exchange Agreement), the Exchange and each of the transactions contemplated
thereby, including any action brought by or in the right of the Parent or SmartKem, and (iii) is not initiated or brought
by one or more Indemnitee(s).


 


16.  Binding
Effect; Duration and Scope of Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the Companies), spouses, heirs and personal
and legal representatives. This Agreement shall continue in effect for six (6) years subsequent to the date of this Agreement,
regardless of whether Indemnitee continues to serve as director or an officer of the Parent.


 


17.  Severability.
If any provision or provisions of this Agreement (or any portion thereof) shall be held to be invalid, illegal or unenforceable
for any reason whatsoever:


 


(a)  the
validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired
thereby; and


 


(b)  to
the fullest extent legally possible, the provisions of this Agreement shall be construed so as to give effect to the intent of
any provision held invalid, illegal or unenforceable.


 






     


     


    

 


18.  Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, as
applied to contracts between Delaware residents entered into and to be performed entirely within the State of Delaware, without
regard to conflict of laws rules.


 


19.  Consent
to Jurisdiction. The Companies and Indemnitee each irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or Proceeding that arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of Delaware.


 


20.  Entire
Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no other agreements, contracts
or understandings between the parties hereto with respect to the subject matter of this Agreement.


 


21.  Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but
all of which together shall constitute one and the same Agreement. This Agreement and any documents relating to it may be executed
and transmitted to any other party by email of a PDF, which PDF shall be deemed to be, and utilized in all respects as, an original,
wet-inked document.


 


[Signature Page Follows]


 






     


     


    

 


IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the date first written above.


 


	PARASOL INVESTMENTS CORPORATION
	 
	 	 	 	 
	By:	 
	Name:	 
	Its:	 
	 	 	 	 
	SMARTKEM LIMITED
	 
	 	 	 	 
	By:	 
	Name:	 
	Its:	 
	 	 	 	 
	INDEMNITEE
	 
	 	 	 	 
	By:	 
	Name:	 
	Address:	 
	 	 	 	 
	 	 	 	 


 


[Signature Page to Indemnity Agreement]