Exhibit 10.4


 


Non-Plan Stock Option Grant Agreement


 


	Name of Grantee:	[●]	(the “Grantee”)
	 	 	 
	No. of Shares Underlying Options:	[●]	(the “Underlying Shares”)
	 	 	 
	Grant Date:	July [●], 2020 	(the “Grant Date”)
	 	 	 
	Vesting Date:	April 17, 2022 	(the “Vesting Date”)
	 	 	 
	Expiration Date:	April 17, 2023 	(the “Expiration Date”)
	 	 	 
	Option Price/Share:	$0.001	(the “Option Price”)



 


Clever Leaves International Inc. (together
with all successors thereto, the “Company”), a corporation organized under the laws of British Columbia, hereby grants
to the Grantee, an option to purchase, on or prior to the Expiration Date (or such earlier date as provided in Section 3 below),
all or any part of the number of Shares of Common Stock of the Company indicated above (the “Underlying Shares,” with
such Shares once issued being referred to herein as “Option Shares”) at the Option Price per share indicated above
(the “Option”). The Option shall be issued in one tranche exercisable for the Underlying Shares and shall be subject
to time-based vesting criteria and the Option grant shall be referred to herein as the “Time-Vested Option.”


 


Notwithstanding that the Option Shares
do not comprise part of the available pool of Shares reserved for delivery under the Clever Leaves International Inc. 2018 Omnibus
Incentive Compensation Plan, as amended (the “Plan”), the terms of the Plan are incorporated by reference into this
Stock Option Agreement (“Agreement”), and this Option and any Option Shares shall be subject to, and governed by, all
the terms and conditions of the Plan, with necessary changes made (including, without limitation, Section 18.5 thereof concerning
certain restrictions on transfer of Option Shares and related matters), except in each case to the extent the Plan would conflict
with the terms of the Option expressly set forth in this Agreement. Except as set forth in the immediately preceding sentence,
to the extent there is any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan shall control.
A copy of the Plan is attached to this Agreement.


 


All capitalized terms used in this Agreement
and not otherwise defined shall have the respective meanings given such terms in the Plan.


 


Vesting and Exercisability.
The Option shall vest and become exercisable as follows:


 


1. Time-Vested Option. Subject to Section
1(b) below, 100% of the Time-Vested Option shall vest and become exercisable on the Vesting Date, provided that the Grantee
remains in continuous service with the Company or any of its Affiliates through each applicable vesting date. In the event
that the Grantee incurs a Termination of Affiliation initiated by the Company (or any of its Affiliates) without Cause during
the one (1) year period commencing on the closing of a Change in Control, the Time-Vested Option (to the extent not
previously terminated) shall be fully vested and exercisable upon such Termination of Affiliation.


 


Exercise of Option.
Prior to the Expiration Date (or such earlier date provided in this Section 2), the Grantee may exercise this Option by delivering
an Option exercise notice (an “Exercise Notice”) in the form of Appendix A hereto indicating his or her election
to purchase some or all of the Underlying Shares with respect to which this Option is then vested and exercisable at the time of
such notice. The Option may not be exercised with respect to any fractional shares.


 






     


     


    

 


1. Termination of Affiliation. Except as the
Committee may otherwise expressly provide, or as may otherwise be expressly provided in any agreement between the Company and
the Grantee, if the Grantee has a Termination of Affiliation with the Company and all of its Affiliates, the period within
which the Grantee may exercise this Option to the extent then vested and exercisable may be subject to earlier termination as
set forth below:


 


(a) Termination of Affiliation Due to Death or
Disability. If the Grantee’s Termination of Affiliation occurs by reason of such Grantee’s death or
Disability, this Option may be exercised, to the extent vested and exercisable on the date of such termination, by the
Grantee or by the Grantee’s legal representative or legatee for a period of twelve (12) months from the date of such
termination or until the Expiration Date, if earlier.


 


(b) Termination for Cause. If
the Grantee has a Termination of Affiliation for Cause, all Options (unvested and vested) shall terminate immediately.


 


(c) Other Termination. If the Grantee’s
Termination of Affiliation occurs for any reason other than death or Disability or Cause, this Option may be exercised, to
the extent exercisable on the date of such termination, by the Grantee for a period of three months from the date of
termination or until the Expiration Date, if earlier.


 


2. Treatment of Unvested Options on Termination
of Affiliation. Any portion of this Option that is not vested or exercisable on the date of the Grantee’s
Termination of Affiliation for any reason shall terminate immediately and be null and void and of no further force and
effect. For the purpose of this Section 2, the date of the Grantee’s Termination of Affiliation shall be calculated
without reference to any period of notice of termination under contract, statute or common law, regardless of whether such
Termination of Affiliation was lawful or whether notice of termination (or pay in lieu) was provided to the Grantee.


 


Status of
Option. This Option is intended to qualify as an “incentive stock option” as defined in Section 422(b) of
the Code. Notwithstanding any provision in this Agreement to the contrary, to the extent that any portion of this Option
exceeds $100,000 Limit (as described in Section 6.4(d) and (e) of the Plan) such portion of the Option shall not qualify as
an “incentive stock option.” In addition, this Option shall not qualify as an “incentive stock
option” with respect to the portion of the Option that is exercised more than 3 months after the Grantee ceases to be
an employee of the Company or any Subsidiary for any reason other than the Grantee’s death or Disability.


 


Disqualifying
Dispositions. Within 10 days after any Disqualifying Disposition (as defined in Section 6.4(f) of the Plan) of Option
Shares acquired upon exercise of this Option, the Grantee shall notify the Company of such Disqualifying Disposition.


 


Requirements
Under Applicable Securities Laws. The Grantee represents and agrees for the Grantee and the Grantee’s transferees
by will or the laws of descent and distribution that, unless a registration statement under the U.S. Securities Act of 1933, as
amended, is in effect as to Option Shares purchased upon any exercise of this Option, (a) any and all Option Shares so purchased
will be acquired for the personal account of the Grantee (or such other person entitled to exercise this Option) and not with a
view to or for sale in connection with any distribution, and (b) each notice of the exercise of any portion of this Option is accompanied
by a representation and warranty in writing, signed by the Grantee (or such other person entitled to exercise this Option), that
the Option Shares are being so acquired in good faith for his or her personal account and not with a view to or for sale in connection
with any distribution. Such writing will be in a form as required by Company and its counsel to ensure that the issuance of the
Option Shares being purchased complies with all United States federal and relevant state securities laws.


 


Miscellaneous Provisions.


 


1. Shareholders’
Agreement and Power of Attorney. No Option Shares shall be issued to the Grantee pursuant to the exercise of this Option
unless and until the Grantee has executed and become party to the Shareholders’ Agreement, if any is then in effect,
and has executed a power of attorney in favor of the Company in the form attached to the Plan as Schedule A.


 






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2. Change and Modifications. This Agreement
may not be orally changed, modified or terminated, nor shall any oral waiver of any of its terms be effective. This Agreement
may be changed, modified or terminated only by an agreement in writing signed by the Company and the Grantee or as otherwise
provided in the Plan.


 


3. Notices.
All notices, requests, consents and other communications shall be in writing and be deemed given when delivered personally,
by electronic transmission (including email) or when received if mailed by first class registered or certified mail, postage
prepaid. Notices to the Company or the Grantee shall be addressed as set forth underneath their signatures below, or to such
other address or addresses as may have been furnished by such party in writing to the other. Grantee acknowledges receipt of
the Plan including Amendment Nos. 1 and 2 thereto on or prior to the date hereof. Notices of changes to the Plan will be
provided to the Grantee in due course.


 


4. Counterparts. For the convenience of the
parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same document.


 


[The remainder of this page is intentionally
blank; signature page follows.]


 






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The foregoing Agreement
is hereby accepted, and the terms and conditions thereof hereby agreed to by the undersigned as of the date first above written.


 


	 	CLEVER LEAVES INTERNATIONAL INC.
	 	 	 	 
	 	By:	 
	 	 	Name:  	Kyle Detwiler
	 	 	Title: 	Chief Executive Officer
	 	 	 	 
	 	Address:	489 Fifth Avenue, 27th Floor New York, NY 10017
	 	 	kyle.detwiler@cleverleaves.com



 


The undersigned hereby acknowledges
receiving and reviewing a copy of the Plan, including, without limitation, Section 18.5 thereof, and understands that the Option
granted hereby is subject to the terms of the Plan and of this Agreement. This Agreement is hereby accepted, and the terms and
conditions thereof and of the Plan hereby agreed to, by the undersigned as of the date first above written.


 


	 	GRANTEE:
	 	 	 
	 	 
	 	Name:	 
	 	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	Email:	 



 


 


	DESIGNATION OF BENEFICIARY: 	 




 


	Beneficiary’s Address: 	 	 
	 	 	 
	 	 	 




 






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Appendix A


 


STOCK OPTION EXERCISE NOTICE


 


Clever Leaves International Inc.


Attention: Corporate Secretary


	 	 
	 	 
	 	 




 


Pursuant to the terms of the stock option agreement between
myself and Clever Leaves International Inc. (the “Company”) dated                             
(the “Agreement”), I, [Insert Name]                                            
, hereby [Circle One] partially/fully exercise such Option by including herein payment in the amount of $                       
representing the purchase price for [Fill in number of Underlying Shares]                             
Option Shares. I have chosen the following form(s) of payment:


 


	 	☐	1. Cash
	 	☐	2. Personal, certified or bank check payable to Clever Leaves International Inc.
	 	☐	3. Wire transfer, or
	 	☐	4. Other (as described in the Plan (please describe))
	 	 	 
	 	 	 



 


In connection with
my exercise of the Option as set forth above, I hereby represent and warrant to the Company as follows:


 


(a) I have executed the Power of Attorney in the form
attached as Schedule A of the Plan (a copy of which is attached to this Exercise Notice) and I have executed and become a
party to the Shareholders’ Agreement.


 


(b) I am purchasing the
Option Shares for my own account for investment only, and not for resale or with a view to the distribution thereof.


 


(c) I have had such an opportunity as I have deemed
adequate to obtain from the Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company and have consulted with my own advisers with respect to my investment in the Company.


 


(d) I have sufficient experience in business, financial
and investment matters to be able to evaluate the risks involved in the purchase of the Option Shares and to make an informed
investment decision with respect to such purchase.


 


(e) I can afford a complete
loss of the value of the Option Shares and am able to bear the economic risk of holding such Option Shares for an indefinite period
of time.


 


(f) I understand that the Option Shares may not be
registered under the U.S. Securities Act of 1933 (it being understood that the Option Shares are being issued and sold in
reliance on the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue sky” laws
and may not be sold or otherwise transferred or disposed of in the absence of an effective registration statement under the
U.S. Securities Act of 1933 and under any applicable state securities or “blue sky” laws (or exemptions from the
registration requirements thereof). I further acknowledge that certificates representing Option Shares will bear restrictive
legends reflecting the foregoing.


 






     


     


    

 


(g) I understand and agree that the Option Shares when
issued will continue to be subject to the transfer and other restrictions imposed under the Company’s corporate charter
or by-laws and under Section 18.5 of the Plan and that certificates representing Option Shares will bear restrictive legends
reflecting such transfer and other restrictions.


 


	 	Sincerely yours,
	 	 
	 	 
	 	Name:
	 	 
	 	Address:
	 	 
	 	 
	 	 




 






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Schedule A


 


Power of Attorney


 


TO: Clever Leaves International Inc. (the “Company”)


 


Defined terms herein shall have the meaning
ascribed to them in the Company’s 2018 Omnibus Incentive Compensation Plan to which this Schedule A is attached.


 


The Grantee does hereby constitute and
appoint the Chief Executive Officer of the Company as the true and lawful attorney for the Grantee, and in the name, place and
stead of the Grantee, to (i) vote at and to execute and deliver any and all proxies relating to any meeting of shareholders of
the Company, or any adjournments thereof, (ii) to execute on behalf of the Grantee, any resolution or other document, agreement
or other instrument in writing to be executed by the shareholders of the Company (except any amendment to this power of attorney),
with respect to an Award, and (iii) to execute and deliver all deeds, transfers, assignments and assurances necessary to effectively
transfer Shares issued pursuant to any Award under this Plan.


 


(a) The provisions of this Power of Attorney relating to the Shares
shall apply, mutatis mutandis
to any shares or securities into which the Shares may be converted, exchanged, changed, reclassified, redesignated,
subdivided or consolidated, any shares or securities which entitle the holder thereof to vote at any meeting of shareholders
of the Company which may be distributed on the Shares as a stock dividend or otherwise and any shares or securities of the
Company or of any successor Company which may be received on or in respect of the Shares on a reorganization, amalgamation,
consolidation or merger, statutory or otherwise.


 


(b) This Power of Attorney
shall be governed by and construed in accordance with the laws of the Province of Ontario. This Power of Attorney is not
intended to be a continuing power of attorney within the meaning of and governed by the Substitute Decisions Act (Ontario),
or any similar power of attorney under equivalent legislation in any of the provinces or territories of Canada (a
“CPOA”). The execution of this Power of Attorney does not terminate any CPOA granted previously and this
Power of Attorney is not terminated by the execution by the Grantee in the future of a CPOA, and the Grantee hereby agrees
not to take any action that results in the termination of this Power of Attorney prior to any termination of the
Shareholders’ Agreement. Any proxy executed and delivered pursuant hereto relating to any meeting of Shareholders or
any adjournments thereof shall revoke any proxy otherwise executed and delivered by or on behalf of the Grantee with respect
to such meeting or any adjournments thereof, regardless of the respective dates thereof.


 


(c) Such appointment, being
coupled with an interest, is irrevocable by the Grantee and shall not be revoked by the insolvency, bankruptcy, death,
incapacity, dissolution, liquidation or other termination of the existence of the Grantee and the Grantee agrees to ratify
and confirm all that the Secretary of the Company may do or cause to be done pursuant to the foregoing. In furtherance of
this Schedule A, the Shareholder shall, if requested by the Company, execute a stock transfer power in such form as may be
supplied by the Company.


 


(d) This Power of Attorney shall terminate
automatically upon the earlier of (i) the termination of the Shareholders’ Agreement or upon closing of an initial
public offering of the Company’s Common Stock or upon such Common Stock otherwise becoming publicly traded.


 






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	SIGNED, SEALED AND DELIVERED in the presence of:	)	 
	 	)	 
	 	)	 
	 	 ) 	 
	Witness	 	Grantee



 


 


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