Document:

Exhibit 10.4

 

 

 

 

 

 

 

 

 

 

 

 

TAX
RECEIVABLE AGREEMENT

 

by
and among

 

GREENLANE
HOLDINGS, INC.,

 

GREENLANE
HOLDINGS, LLC

 

and

 

THE
MEMBERS OF GREENLANE HOLDINGS, LLC

FROM
TIME TO TIME PARTY HERETO

 

 

 

Dated
as of April 17, 2019

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

CONTENTS

 

	
         
	 	 	 	Page
	Article I. DEFINITIONS	 	2
	Section 1.1	 	Definitions	 	2
	Section 1.2	 	Rules of Construction	 	8
	 	 	 	 	 
	Article II. DETERMINATION OF REALIZED TAX BENEFIT	 	9
	Section 2.1	 	Basis Adjustments; Greenlane Holdings, LLC 754 Election	 	9
	Section 2.2	 	Basis Schedules	 	9
	Section 2.3	 	Tax Benefit Schedules	 	10
	Section 2.4	 	Procedures; Amendments	 	10
	 	 	 	 	 
	Article III. TAX BENEFIT PAYMENTS	 	11
	Section 3.1	 	Timing and Amount of Tax Benefit Payments	 	11
	Section 3.2	 	No Duplicative Payments	 	13
	Section 3.3	 	Pro-Ration of Payments as Between the Members	 	13
	 	 	 	 	 
	Article IV. TERMINATION	 	14
	Section 4.1	 	Early Termination of Agreement; Breach of Agreement	 	14
	Section 4.2	 	Early Termination Notice	 	15
	Section 4.3	 	Payment upon Early Termination	 	15
	 	 	 	 	 
	Article V. SUBORDINATION AND LATE PAYMENTS	 	16
	Section 5.1	 	Subordination	 	16
	Section 5.2	 	Late Payments by the Corporation	 	16
	 	 	 	 	 
	Article VI. TAX MATTERS; CONSISTENCY; COOPERATION	 	16
	Section 6.1	 	Participation in the Corporation’s and Greenlane Holdings, LLC’s Tax Matters	 	16
	Section 6.2	 	Consistency	 	16
	Section 6.3	 	Cooperation	 	17
	 	 	 	 	 
	Article VII. MISCELLANEOUS	 	17
	Section 7.1	 	Notices	 	17
	Section 7.2	 	Counterparts	 	17
	Section 7.3	 	Entire Agreement; No Third Party Beneficiaries	 	17
	Section 7.4	 	Governing Law	 	18
	Section 7.5	 	Severability	 	18
	Section 7.6	 	Assignments; Amendments; Successors; No Waiver	 	18
	Section 7.7	 	Titles and Subtitles	 	18
	Section 7.8	 	Resolution of Disputes	 	19
	Section 7.9	 	Reconciliation	 	20
	Section 7.10	 	Withholding	 	20
	Section 7.11	 	Admission of the Corporation into a Consolidated Group; Transfers of Corporate Assets	 	20
	Section 7.12	 	Confidentiality	 	21
	Section 7.13	 	Change in Law	 	21
	Section 7.14	 	Interest Rate Limitation	 	21
	Section 7.15	 	Independent Nature of Rights and Obligations	 	21

 

Exhibits

 

	Exhibit A	-	Form of Joinder
    Agreement

 

    i

     

    

 

TAX
RECEIVABLE AGREEMENT

 

This
TAX RECEIVABLE AGREEMENT (this “Agreement”), dated as of April 17, 2019, is hereby entered into by and among
Greenlane Holdings, Inc., a Delaware corporation (the “Corporation”), Greenlane Holdings, LLC, a Delaware limited
liability company formerly known as Jacoby Holdings LLC (“Greenlane Holdings, LLC”) and each of the Members
from time to time party hereto. Capitalized terms used but not otherwise defined herein have the respective meanings set forth
in Section 1.1.

 

RECITALS

 

WHEREAS,
Greenlane Holdings, LLC is treated as a partnership for U.S. federal income tax purposes;

 

WHEREAS,
each of the members of Greenlane Holdings, LLC as of the date hereof other than the Corporation (such members, together with each
other Person who becomes party hereto by satisfying the Joinder Requirement, the “Members”) owns common limited
liability company interests in Greenlane Holdings, LLC (the “Units”);

 

WHEREAS,
the Corporation intends to issue shares of its Class A common stock, par value $0.01 per share (the “Class A
Common Stock”), to certain purchasers in an initial public offering of its Class A Common Stock (the “IPO”);

 

WHEREAS,
on the closing date of the IPO (the “IPO Closing Date”), the Corporation will acquire newly-issued Units directly
from Greenlane Holdings, LLC using proceeds from the IPO and will become the managing member of Greenlane Holdings, LLC;

 

WHEREAS,
on and after the IPO Closing Date, pursuant to Article XI of the Operating Agreement (as defined below), each Member has the right,
in its sole discretion, from time to time to have all or a portion its Units redeemed by Greenlane Holdings, LLC for, at the Corporation’s
election, cash or Class A Common Stock (a “Redemption”); provided that, at the election
of the Corporation in its sole discretion, the Corporation may effect a direct exchange of such cash or shares of Class A
Common Stock for such Units (a “Direct Exchange”);

 

WHEREAS,
on the IPO Closing Date, the Corporation will acquire additional Units from certain Members in a Direct Exchange pursuant to the
terms of the IPO Common Unit Redemption Agreement ( as defined below) and may in the future acquire additional Units from such
Members pursuant to the terms of the IPO Common Unit Redemption Agreement;

 

WHEREAS,
Greenlane Holdings, LLC will have in effect an election under Section 754 of the Code as provided under Section 2.1(b) for
the Taxable Year (as defined below) in which any Exchange (as defined below) occurs, which election will result in an adjustment
to the Corporation’s share of the tax basis of the assets owned by Greenlane Holdings, LLC and its relevant subsidiaries
(including any subsidiaries that are classified as partnerships for U.S. federal income tax purposes and have made an election
under Section 754 of the Code) (Greenlane Holdings, LLC and its relevant subsidiaries, the “Greenlane Holdings,
LLC Group”), as of the date of the Exchange, with a consequent result on the taxable income subsequently derived therefrom;
and

 

WHEREAS,
the parties to this Agreement desire to provide for certain payments and make certain arrangements with respect to any tax benefits
to be derived by the Corporation as the result of Exchanges and making payments under this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to be
legally bound hereby, the parties hereto agree as follows:

 

     

     

    

 

Article
I

DEFINITIONS

 

Section
1.1Definitions. As used in this Agreement,
the terms set forth in this Article I shall have the following meanings (such meanings to be equally applicable
to both (i) the singular and plural and (ii) the active and passive forms of the terms defined).

 

“10%
Member” is defined in Section 6.1 of this Agreement.

 

“Actual
Interest Amount” is defined in Section 3.1(b)(vii) of this Agreement.

 

“Actual
Tax Liability” means, with respect to any Taxable Year, the liability for Covered Taxes of the Corporation (a) appearing
on Tax Returns of the Corporation for such Taxable Year and (b) if applicable, determined in accordance with a Determination
(including interest imposed in respect thereof under applicable law).

 

“Advisory
Firm” means an accounting firm that is nationally recognized as being expert in Covered Tax matters, selected by the
Corporation.

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls,
is Controlled by, or is under common Control with, such first Person.

 

“Agreed
Rate” means LIBOR plus 100 basis points.

 

“Agreement”
is defined in the recitals to this Agreement.

 

“Amended
Schedule” is defined in Section 2.4(b) of this Agreement.

 

“Attributable”
is defined in Section 3.1(b)(i) of this Agreement.

 

“Audit
Committee” means the audit committee of the Board.

 

“Basis
Adjustment” means the increase or decrease to, or the Corporation’s share of, the tax basis of the Reference Assets
(i) under Section 734(b), 743(b), 754 and 755 of the Code and, in each case, the comparable sections of U.S. state and
local tax law (in situations where, following an Exchange, Greenlane Holdings, LLC remains in existence as an entity for tax purposes)
and (ii) under Sections 732 and 1012 of the Code and, in each case, the comparable sections of U.S. state and local tax law
(in situations where, as a result of one or more Exchanges, Greenlane Holdings, LLC becomes an entity that is disregarded as separate
from its owner for tax purposes), in each case, as a result of any Exchange and any payments made under this Agreement. Notwithstanding
any other provision of this Agreement, the amount of any Basis Adjustment resulting from an Exchange of one or more Units shall
be determined without regard to any Pre-Exchange Transfer of such Units and as if any such Pre-Exchange Transfer
had not occurred.

 

“Basis
Schedule” is defined in Section 2.2 of this Agreement.

 

“Beneficial
Owner” means, with respect to any security, a Person who directly or indirectly, through any contract, arrangement,
understanding, relationship or otherwise, has or shares: (i) voting power, which includes the power to vote, or to direct
the voting of, with respect to such security and/or (ii) investment power, which includes the power to dispose of, or to
direct the disposition of, such security.

 

“Board”
means the Board of Directors of the Corporation.

 

“Business
Day” means any day excluding Saturday, Sunday and any day that is a legal holiday under the laws of the State of New
York or is a day on which banking institutions located in New York are closed.

 

    2

     

    

 

“Change
of Control” means the occurrence of any of the following events:

 

(1) any
“person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act (excluding any
“person” or “group” who, on the date of the consummation of the IPO, is the Beneficial Owner of securities
of the Corporation representing more than fifty percent (50%) of the combined voting power of the Corporation’s then outstanding
voting securities)) becomes the Beneficial Owner of securities of the Corporation representing more than fifty percent (50%) of
the combined voting power of the Corporation’s then outstanding voting securities;

 

(2) the
shareholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated
an agreement or series of related agreements for the sale or other disposition, directly, or indirectly, by the Corporation of
all or substantially all of the Corporation’s assets (including a sale of assets of Greenlane Holdings, LLC), other than
such sale or other disposition by the Corporation of all or substantially all of the Corporation’s assets to an entity at
least fifty percent (50%) of the combined voting power of the voting securities of which are owned by shareholders of the Corporation
in substantially the same proportions as their ownership of the Corporation immediately prior to such sale;

 

(3) there
is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary of the Corporation (including
Greenlane Holdings, LLC) with any other corporation or other entity, and, immediately after the consummation of such merger or
consolidation, either (x) the board of directors of the Corporation immediately prior to the merger or consolidation does
not constitute at least a majority of the board of directors of the company surviving the merger or, if the surviving company
is a subsidiary, the ultimate parent thereof, or (y) all of the Persons who were the respective Beneficial Owners of the
voting securities of the Corporation immediately prior to such merger or consolidation do not Beneficially Own, directly or indirectly,
more than 50% of the combined voting power of the then outstanding voting securities of the Person resulting from such merger
or consolidation;

 

(4) the
following individuals cease for any reason to constitute a majority of the number of directors of the Corporation then serving:
individuals who were directors of the Corporation on the date of the consummation of the IPO and any new director (other than
a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not
limited to a consent solicitation, relating to the election of directors of the Corporation) whose appointment or election by
the board of directors of the Corporation or nomination for election by the Corporation’s shareholders was approved or recommended
by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors of the Corporation
on the date of the consummation of the IPO or whose appointment, election or nomination for election was previously so approved
or recommended by the directors referred to in this clause 4; or

 

(5) a
“change of control” or similar defined term in any agreement governing indebtedness of Greenlane Holdings, LLC or
any of its Subsidiaries with aggregate principal amount or aggregate commitments outstanding in excess of $25,000,000.

 

Notwithstanding
the foregoing, a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction
or series of integrated transactions immediately following which the record holders of the Class A Common Stock, Class B
Common Stock and Class C Common Stock of the Corporation immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares
of, an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series
of transactions.

 

“Class
A Common Stock” is defined in the recitals to this Agreement.

 

“Class
B Common Stock” means the Corporation’s Class B common stock, par value $0.0001 per share.

 

    3

     

    

 

“Class
C Common Stock” means the Corporation’s Class C common stock, par value $0.0001 per share.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

“Control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

 

“Corporation”
is defined in the recitals to this Agreement.

 

“Corporation
Letter” means a letter prepared by the Corporation in connection with the performance of its obligations under this
Agreement, which states that the relevant Schedules, notices or other information to be provided by the Corporation to the Members,
along with all supporting schedules and work papers, were prepared in a manner that is consistent with the terms of this Agreement
and, to the extent not expressly provided in this Agreement, on a reasonable basis in light of the facts and law in existence
on the date such Schedules, notices or other information were delivered by the Corporation to the Members.

 

“Covered
Taxes” means any and all U.S. federal, state, local and foreign taxes, assessments or similar charges that are based
on or measured with respect to net income or profits, whether as an exclusive or an alternative basis (including for the avoidance
of doubt, franchise taxes), and any interest imposed in respect thereof under applicable law.

 

“Cumulative
Net Realized Tax Benefit” is defined in Section 3.1(b)(iii) of this Agreement.

 

“Default
Rate” means LIBOR plus 500 basis points.

 

“Default
Rate Interest” is defined in Section 3.1(b)(ix) of this Agreement.

 

“Determination”
shall have the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of U.S. state, local or
foreign tax law, as applicable, or any other event (including the execution of IRS Form 870-AD) that finally and conclusively
establishes the amount of any liability for tax.

 

“Direct
Exchange” is defined in the recitals to this Agreement.

 

“Dispute”
is defined in Section 7.8(a) of this Agreement.

 

“Early
Termination Effective Date” means the date of an Early Termination Notice for purposes of determining the Early Termination
Payment.

 

“Early
Termination Notice” is defined in Section 4.2 of this Agreement.

 

“Early
Termination Payment” is defined in Section 4.3(b) of this Agreement.

 

“Early
Termination Rate” means the Agreed Rate.

 

“Early
Termination Reference Date” is defined in Section 4.2 of this Agreement.

 

“Early
Termination Schedule” is defined in Section 4.2 of this Agreement.

 

“Exchange”
means any (i) Direct Exchange, (ii) Redemption or (iii) any transaction using proceeds of the IPO or any distribution
by Greenlane Holdings, LLC that in either case results in an adjustment under Section 743(b) of the Code with respect to
the Greenlane Holdings, LLC Group.

 

“Exchange
Act” means the Securities and Exchange Act of 1934, as amended, or any successor provisions thereto.

 

    4

     

    

 

“Exchange
Date” means the date of any Exchange.

 

“Expert”
is defined in Section 7.9 of this Agreement.

 

“Extension
Rate Interest” is defined in Section 3.1(b)(viii) of this Agreement.

 

“Final
Payment Date” means any date on which a payment is required to be made pursuant to this Agreement. For the avoidance
of doubt, the Final Payment Date in respect of a Tax Benefit Payment is determined pursuant to Section 3.1(a) of
this Agreement.

 

“Greenlane
Holdings, LLC” is defined in the recitals to this Agreement.

 

“Greenlane
Holdings, LLC Group” is defined in the recitals to this Agreement.

 

“Hypothetical
Tax Liability” means, with respect to any Taxable Year, the hypothetical liability of the Corporation that would arise
in respect of Covered Taxes, using the same methods, elections, conventions and similar practices used on the actual relevant
Tax Returns of the Corporation but (i) calculating depreciation, amortization, or other similar deductions, or otherwise
calculating any items of income, gain, or loss, using the Corporation’s share of the Non-Adjusted Tax Basis as
reflected on the Basis Schedule, including amendments thereto for such Taxable Year and (ii) excluding any deduction attributable
to Imputed Interest for such Taxable Year. For the avoidance of doubt, the Hypothetical Tax Liability shall be determined without
taking into account the carryover or carryback of any tax item (or portions thereof) that is attributable to any of the items
described in clauses (i) and (ii) of the previous sentence.

 

“Imputed
Interest” is defined in Section 3.1(b)(vi) of this Agreement.

 

“Independent
Directors” means the members of the Board who are “independent” under the standards set forth in Rule 10A-3 promulgated
under the U.S. Securities Exchange Act of 1933, as amended, and the corresponding rules of the applicable exchange on which the
Class A Common Stock is traded or quoted.

 

“IPO”
is defined in the recitals to this Agreement.

 

“IPO
Closing Date” is defined in the recitals to this Agreement.

 

“IPO
Common Unit Redemption Agreement” means that certain Common Unit Redemption Agreement, dated as of the date hereof,
by and among the Corporation and the Members that are parties thereto.

 

“IRS”
means the U.S. Internal Revenue Service.

 

“Joinder”
means a joinder to this Agreement, in form and substance substantially similar to Exhibit A to this Agreement.

 

“Joinder
Requirement” is defined in Section 7.6(a) of this Agreement.

 

“LIBOR”
means during any period, a rate per annum equal to the ICE LIBOR rate for a period of one month (“ICE LIBOR”),
as published on the applicable Bloomberg screen page (or such other commercially available source providing quotations of ICE
LIBOR as may be designated by the Corporation from time to time) at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such period, for dollar deposits (for delivery on the first day of such period) with a term
equivalent to such period.

 

“Market
Value” shall mean the Common Unit Redemption Price, as defined in the Operating Agreement.

 

    5

     

    

 

“Member
Advisory Firm” means an accounting firm that is nationally recognized as being expert in Covered Tax matters, selected
by the applicable Member; provided that such accounting firm shall be different from the accounting firm serving as the Advisory
Firm.

 

“Members”
is defined in the recitals to this Agreement.

 

“Net
Tax Benefit” is defined in Section 3.1(b)(ii) of this Agreement.

 

“Non-Adjusted Tax
Basis” means, with respect to any Reference Asset at any time, the tax basis that such asset would have had at such
time if no Basis Adjustments had been made.

 

“Objection
Notice” is defined in Section 2.4(a)(i) of this Agreement.

 

“Operating
Agreement” means that certain Third Amended and Restated Operating Agreement of Greenlane Holdings, LLC, dated as of
the date hereof, as such agreement may be further amended, restated, supplemented and/or otherwise modified from time to time.

 

“Parties”
means the parties named on the signature pages to this agreement and each additional party that satisfies the Joinder Requirement,
in each case with their respective successors and assigns.

 

“Person”
means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association,
organization, governmental entity or other entity.

 

“Pre-Exchange Transfer”
means any transfer of one or more Units (including upon the death of a Member or upon the issuance of Units resulting from the
exercise of an option to acquire such Units) (i) that occurs after the IPO but prior to an Exchange of such Units and (ii) to
which Section 743(b) of the Code applies.

 

“Realized
Tax Benefit” is defined in Section 3.1(b)(iv) of this Agreement.

 

“Realized
Tax Detriment” is defined in Section 3.1(b)(v) of this Agreement.

 

“Reconciliation
Dispute” is defined in Section 7.9 of this Agreement.

 

“Reconciliation
Procedures” is defined in Section 2.4(a) of this Agreement.

 

“Redemption”
has the meaning in the recitals to this Agreement.

 

“Reference
Asset” means any asset of Greenlane Holdings, LLC or any of its successors or assigns, and whether held directly by
Greenlane Holdings, LLC or indirectly by Greenlane Holdings, LLC through a member of the Greenlane Holdings, LLC Group, at the
time of an Exchange. A Reference Asset also includes any asset the tax basis of which is determined, in whole or in part, by reference
to the tax basis of an asset that is described in the preceding sentence, including “substituted basis property” within
the meaning of Section 7701(a)(42) of the Code.

 

“Schedule”
means any of the following: (i) a Basis Schedule, (ii) a Tax Benefit Schedule, or (iii) the Early Termination Schedule,
and, in each case, any amendments thereto.

 

“Senior
Obligations” is defined in Section 5.1 of this Agreement.

 

“Subsidiary”
means, with respect to any Person and as of any determination date, any other Person as to which such first Person (i) owns,
directly or indirectly, or otherwise controls, more than 50% of the voting power or other similar interests of such other Person
or (ii) is the sole general partner interest, or managing member or similar interest, of such Person.

 

    6

     

    

 

“Subsidiary
Stock” means any stock or other equity interest in any subsidiary entity of the Corporation that is treated as a corporation
for U.S. federal income tax purposes.

 

“Supermajority
Member Approval” means written approval by Members whose rights under this Agreement are attributable to at least seventy
percent (70%) of the Units outstanding (and not held by the Corporation) immediately after the IPO (as appropriately adjusted
for any subsequent changes to the number of outstanding Units). For purposes of this definition, a Member’s rights under
this Agreement shall be attributed to Units as of the time of a determination of Supermajority Member Approval. For the avoidance
of doubt, (i) an Exchanged Unit shall be attributed only to the Member entitled to receive Tax Benefit Payments with respect
to such Exchanged Unit (i.e., the Exchangor or the assignee of its rights hereunder) and (ii) an outstanding Unit that has
not yet been Exchanged shall be attributed only to the Member entitled to receive Tax Benefit Payments upon the Exchange of such
Unit (i.e., the member of Greenlane Holdings, LLC or the assignee of its rights hereunder).

 

“Tax
Benefit Payment” is defined in Section 3.1(b) of this Agreement.

 

“Tax
Benefit Schedule” is defined in Section 2.3(a) of this Agreement.

 

“Tax
Return” means any return, declaration, report or similar statement required to be filed with respect to taxes (including
any attached schedules), including, without limitation, any information return, claim for refund, amended return and declaration
of estimated tax.

 

“Taxable
Year” means a taxable year of the Corporation as defined in Section 441(b) of the Code or comparable section of
U.S. state or local tax law, as applicable (and, therefore, for the avoidance of doubt, may include a period of less than 12 months
for which a Tax Return is made), ending on or after the closing date of the IPO.

 

“Taxing
Authority” shall mean any national, federal, state, county, municipal, or local government, or any subdivision, agency,
commission or authority thereof, or any quasi-governmental body, or any other authority of any kind, exercising regulatory or
other authority in relation to tax matters.

 

“Termination
Objection Notice” is defined in Section 4.2 of this Agreement.

 

“Treasury
Regulations” means the final, temporary, and (to the extent they can be relied upon) proposed regulations under the
Code, as promulgated from time to time (including corresponding provisions and succeeding provisions) as in effect for the relevant
taxable period.

 

“U.S.”
means the United States of America.

 

“Units”
is defined in the recitals to this Agreement.

 

“Valuation
Assumptions” shall mean, as of an Early Termination Effective Date, the assumptions that:

 

(1) in
each Taxable Year ending on or after such Early Termination Effective Date, the Corporation will have taxable income sufficient
to fully use the deductions arising from the Basis Adjustments and the Imputed Interest during such Taxable Year or future Taxable
Years (including, for the avoidance of doubt, Basis Adjustments and Imputed Interest that would result from future Tax Benefit
Payments that would be paid in accordance with the Valuation Assumptions) in which such deductions would become available;

 

(2) 
the U.S. federal, state and local income tax rates that will be in effect for each such Taxable Year will be those specified for
each such Taxable Year by the Code and other law as in effect on the Early Termination Effective Date, except to the extent any
change to such tax rates for such Taxable Year have already been enacted into law;

 

    7

     

    

 

(3) all
taxable income of the Corporation will be subject to the maximum applicable tax rates for each Covered Tax throughout the relevant
period;

 

(4) any
loss carryovers or carrybacks generated by any Basis Adjustment or Imputed Interest (including such Basis Adjustment and Imputed
Interest generated as a result of payments under this Agreement) and available as of the date of the Early Termination Schedule
will be used by the Corporation ratably in each Taxable Year from the date of the Early Termination Schedule through the scheduled
expiration date of such loss carryovers or carrybacks; by way of example, if on the date of the Early Termination Schedule the
Corporation had $100 of net operating losses with a carryforward period of ten (10) years, $10 of such net operating losses
would be used in each of the ten (10) consecutive Taxable Years beginning in the Taxable Year of such Early Termination Schedule;

 

(5) any non-amortizable assets
(other than Subsidiary Stock) will be disposed of on the fifteenth anniversary of the earlier of (i) the applicable Basis
Adjustment and (ii) the Early Termination Effective Date;

 

(6) any
Subsidiary Stock will be deemed never to be disposed of except if Subsidiary Stock is directly disposed of in the Change of Control;

 

(7) if,
on the Early Termination Effective Date, any Member has Units that have not been Exchanged, then such Units shall be deemed to
be Exchanged for the Market Value of the shares of Class A Common Stock that would be received by such Member if such Units
had been Exchanged on the Early Termination Effective Date, and such Member shall be deemed to receive the amount of cash such
Member would have been entitled to pursuant to Section 4.3(a) had such Units actually been Exchanged on the Early
Termination Effective Date and

 

(8) any
payment obligations pursuant to this Agreement will be satisfied on the date that any Tax Return to which such payment obligation
relates is required to be filed excluding any extensions.

 

Section
1.2Rules of Construction. Unless otherwise
specified herein:

 

(a) The
meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

 

(b) For
purposes of interpretation of this Agreement:

 

(i) The
words “herein,” “hereto,” “hereof” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision thereof.

 

(ii) References
in this Agreement to a Schedule, Article, Section, clause or sub-clause refer to the appropriate Schedule to, or Article,
Section, clause or subclause in, this Agreement.

 

(iii) References
in this Agreement to dollars or “$” refer to the lawful currency of the United States of America.

 

(iv) The
term “including” is by way of example and not limitation.

 

(v) The
term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced, whether in physical or electronic form.

 

    8

     

    

 

(c) In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to but excluding;” and the word
“through” means “to and including.”

 

(d) Section
headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement.

 

(e) Unless
otherwise expressly provided herein, (a) references to organization documents (including the Operating Agreement), agreements
(including this Agreement) and other contractual instruments shall be deemed to include all subsequent amendments, restatements,
extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions,
supplements and other modifications are permitted hereby; and (b) references to any law (including the Code and the Treasury
Regulations) shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting
such Law.

 

Article
II

DETERMINATION OF REALIZED TAX BENEFIT

 

Section
2.1Basis Adjustments; Greenlane Holdings,
LLC 754 Election.

 

(a) Basis
Adjustments. The Parties acknowledge and agree that (A) each Redemption, including each Redemption pursuant to the IPO
Common Unit Redemption Agreement, shall be treated as a direct purchase of Units by the Corporation from the applicable Member
pursuant to Section 707(a)(2)(B) of the Code and (B) each Exchange will give rise to Basis Adjustments. In connection
with any Exchange, the Parties acknowledge and agree that, pursuant to applicable law, the Corporation’s share of the basis
in the Reference Assets shall be increased (or decreased) by the excess (or deficiency), if any, of (A) the sum of (x) the
Market Value of Class A Common Stock or the cash transferred to a Member pursuant to an Exchange as payment for the Units,
(y) the amount of payments made pursuant to this Agreement with respect to such Exchange and (z) the amount of liabilities
allocated to the Units acquired pursuant to the Exchange, over (B) the Corporation’s proportionate share of the basis
of the Reference Assets immediately after the Exchange attributable to the Units exchanged, determined as if each relevant member
of the Greenlane Holdings, LLC Group (including, for the avoidance of doubt, Greenlane Holdings, LLC) remains in existence as
an entity for tax purposes and no member of the Greenlane Holdings, LLC Group (including, for the avoidance of doubt, Greenlane
Holdings, LLC) made the election provided by Section 754 of the Code. For the avoidance of doubt, payments made under this
Agreement shall not be treated as resulting in a Basis Adjustment to the extent such payments are treated as Imputed Interest
or Default Rate Interest. Further, the Parties intend that Basis Adjustments be calculated in accordance with Treasury Regulations Section 1.743-1.

 

(b) Greenlane
Holdings, LLC Section 754 Election. In its capacity as the sole managing member of Greenlane Holdings, LLC, the Corporation
will ensure that, on and after the date hereof and continuing throughout the term of this Agreement, Greenlane Holdings, LLC will
have in effect an election under Section 754 of the Code (and under any similar provisions of applicable U.S. state or local
law) for each Taxable Year.

 

Section 2.2Basis
Schedules. Within one hundred fifty (150) calendar days after the filing of the U.S. federal income Tax Return of the
Corporation for each relevant Taxable Year, the Corporation shall deliver to the Members a schedule (the “Basis Schedule”)
that shows, in reasonable detail as necessary in order to understand the calculations performed under this Agreement: (a) the Non-Adjusted Tax
Basis of the Reference Assets as of each applicable Exchange Date; (b) the Basis Adjustments with respect to the Reference
Assets as a result of the relevant Exchanges effected in such Taxable Year, calculated (I) in the aggregate (including, for
the avoidance of doubt, Exchanges by all Members) and (II) solely with respect to Exchanges by the applicable Member; (c) the
period (or periods) over which the Reference Assets are amortizable and/or depreciable; and (d) the period (or periods) over
which each Basis Adjustment is amortizable and/or depreciable. The Basis Schedule will become final and binding on the Parties
pursuant to the procedures set forth in Section 2.4(a) and may be amended by the Parties pursuant to the
procedures set forth in Section 2.4(b).

 

    9

     

    

 

Section 2.3Tax
Benefit Schedules.

 

(a) Tax
Benefit Schedule. Within one hundred fifty (150) calendar days after the filing of the U.S. federal income Tax Return
of the Corporation for any Taxable Year in which there is a Realized Tax Benefit or Realized Tax Detriment, the Corporation shall
provide to the Members a schedule showing, in reasonable detail, the calculation of the Realized Tax Benefit or Realized Tax Detriment
for such Taxable Year (a “Tax Benefit Schedule”). The Tax Benefit Schedule will become final and binding on
the Parties pursuant to the procedures set forth in Section 2.4(a), and may be amended by the Parties pursuant
to the procedures set forth in Section 2.4(b).

 

(b) Applicable
Principles. Subject to the provisions of this Agreement, the Realized Tax Benefit or Realized Tax Detriment for each Taxable
Year is intended to measure the decrease or increase in the Actual Tax Liability of the Corporation for such Taxable Year attributable
to the Basis Adjustments and Imputed Interest, as determined using a “with and without” methodology described in Section 2.4(a).
Carryovers or carrybacks of any tax item attributable to any Basis Adjustment or Imputed Interest shall be considered to be subject
to the rules of the Code and the Treasury Regulations or the appropriate provisions of U.S. state and local tax law, as applicable,
governing the use, limitation and expiration of carryovers or carrybacks of the relevant type. If a carryover or carryback of
any tax item includes a portion that is attributable to a Basis Adjustment or Imputed Interest (a “TRA Portion”) and
another portion that is not (a “Non-TRA Portion”), such portions shall be considered to be used in accordance
with the “with and without” methodology so that: (i) the amount of any Non-TRA Portion is deemed utilized
first, followed by the amount of any TRA Portion (with the TRA Portion being applied on a proportionate basis consistent with
the provisions of Section 3.3(a)); and (ii) in the case of a carryback of a Non-TRA Portion, such
carryback shall not affect the original “with and without” calculation made in the prior Taxable Year. The Parties
agree that, subject to the second to last sentence of Section 2.1(a), all Tax Benefit Payments attributable to
an Exchange will be treated as subsequent upward purchase price adjustments that give rise to further Basis Adjustments for the
Corporation beginning in the Taxable Year of payment, and as a result, such additional Basis Adjustments will be incorporated
into such Taxable Year continuing for future Taxable Years until any incremental Basis Adjustment benefits with respect to a Tax
Benefit Payment equals an immaterial amount.

 

Section 2.4Procedures;
Amendments.

 

(a) Procedures.
Each time the Corporation delivers an applicable Schedule to the Members under this Agreement, including any Amended Schedule
delivered pursuant to Section 2.4(b), but excluding any Early Termination Schedule or amended Early Termination
Schedule delivered pursuant to the procedures set forth in Section 4.2, the Corporation shall also: (x) deliver
supporting schedules and work papers, as determined by the Corporation or as reasonably requested by any Member, that provide
a reasonable level of detail regarding the data and calculations that were relevant for purposes of preparing the Schedule; (y) deliver
a Corporation Letter supporting such Schedule; and (z) allow the Members and their advisors to have reasonable access to
the appropriate representatives, as determined by the Corporation or as reasonably requested by the Members, at the Corporation
and the Advisory Firm in connection with a review of such Schedule. Without limiting the generality of the preceding sentence,
the Corporation shall ensure that any Tax Benefit Schedule that is delivered to the Members, along with any supporting schedules
and work papers, provides a reasonably detailed presentation of the calculation of the Actual Tax Liability of the Corporation
for the relevant Taxable Year (the “with” calculation) and the Hypothetical Tax Liability of the Corporation for such
Taxable Year (the “without” calculation), and identifies any material assumptions or operating procedures or principles
that were used for purposes of such calculations. An applicable Schedule or amendment thereto shall become final and binding on
the Parties thirty (30) calendar days from the date on which the Members first received the applicable Schedule or amendment
thereto unless:

 

(i) a
Member within thirty (30) calendar days after receiving the applicable Schedule or amendment thereto, provides the Corporation
with (A) written notice of a material objection to such Schedule that is made in good faith and that sets forth in reasonable
detail such Member’s material objection (an “Objection Notice”) and (B) a letter from a Member Advisory
Firm in support of such Objection Notice; or

 

(ii) each
Member provides a written waiver of its right to deliver an Objection Notice within the time period described in clause (i) above,
in which case such Schedule or amendment thereto becomes binding on the date the waiver from all Members is received by the Corporation.

 

    10

     

    

 

In
the event that a Member timely delivers an Objection Notice pursuant to clause (i) above, and if the Parties, for any reason,
are unable to successfully resolve the issues raised in the Objection Notice within thirty (30) calendar days after receipt
by the Corporation of the Objection Notice, the Corporation and the Member shall employ the reconciliation procedures as described
in Section 7.9 of this Agreement (the “Reconciliation Procedures”). For the avoidance
of doubt, and notwithstanding anything to the contrary herein, the expense of preparing and obtaining the letter from a Member
Advisory Firm referenced in clause (i) above shall be borne solely by the relevant Member and the Corporation shall have
no liability with respect to such letter or any of the expenses associated with its preparation and delivery.

 

(b) Amended
Schedule. The applicable Schedule for any Taxable Year may be amended from time to time by the Corporation: (i) in connection
with a Determination affecting such Schedule; (ii) to correct inaccuracies in the Schedule identified as a result of the
receipt of additional factual information relating to a Taxable Year after the date the Schedule was originally provided to the
Member; (iii) to comply with an Expert’s determination under the Reconciliation Procedures applicable to this Agreement;
(iv) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a carryback
or carryforward of a loss or other Tax item to such Taxable Year; (v) to reflect a change in the Realized Tax Benefit or
Realized Tax Detriment for such Taxable Year attributable to an amended Tax Return filed for such Taxable Year; or (vi) to
adjust a Basis Schedule to take into account any Tax Benefit Payments made pursuant to this Agreement (any such Schedule, an “Amended
Schedule”).

 

ARTICLE
III

TAX
BENEFIT PAYMENTS

 

Section 3.1Timing
and Amount of Tax Benefit Payments.

 

(a) Timing
of Payments. Subject to Sections 3.2 and 3.3, within three (3) Business Days following the
date on which each Tax Benefit Schedule that is required to be delivered by the Corporation to the Members pursuant to Section 2.3(a) of
this Agreement becomes final in accordance with Section 2.4(a) of this Agreement (such date, the “Final
Payment Date” in respect of any Tax Benefit Payment), the Corporation shall pay to each relevant Member the Tax Benefit
Payment as determined pursuant to Section 3.1(b). Each such Tax Benefit Payment shall be made by wire transfer
of immediately available funds to the bank account previously designated by such Members or as otherwise agreed by the Corporation
and such Members. For the avoidance of doubt, the Members shall not be required under any circumstances to return any portion
of any Tax Benefit Payment previously paid by the Corporation to the Members (including any portion of any Early Termination Payment).

 

(b) Amount
of Payments. For purposes of this Agreement, a “Tax Benefit Payment” with respect to any Member means an
amount, not less than zero, equal to the sum of: (i) the Net Tax Benefit that is Attributable to such Member and (ii) the
Actual Interest Amount.

 

(i) Attributable.
A Net Tax Benefit is “Attributable” to a Member to the extent that it is derived from any Basis Adjustment
or Imputed Interest that is attributable to an Exchange undertaken by or with respect to such Member.

 

(ii) Net
Tax Benefit. The “Net Tax Benefit” for a Taxable Year equals the amount of the excess, if any, of (x) 85%
of the Cumulative Net Realized Tax Benefit Attributable to such Member as of the end of such Taxable Year over (y) the aggregate
amount of all Tax Benefit Payments previously made to such Member under this Section 3.1. For the avoidance of
doubt, if the Cumulative Net Realized Tax Benefit as of the end of any Taxable Year is less than the aggregate amount of all Tax
Benefit Payments previously made to a Member, such Member shall not be required to return any portion of any Tax Benefit Payment
previously made by the Corporation to such Member.

 

    11

     

    

 

(iii) Cumulative
Net Realized Tax Benefit. The “Cumulative Net Realized Tax Benefit” for a Taxable Year equals the cumulative
amount of Realized Tax Benefits for all Taxable Years of the Corporation, up to and including such Taxable Year, net of the cumulative
amount of Realized Tax Detriments for the same period. The Realized Tax Benefit and Realized Tax Detriment for each Taxable Year
shall be determined based on the most recent Tax Benefit Schedule or Amended Schedule, if any, in existence at the time of such
determination.

 

(iv) Realized
Tax Benefit. The “Realized Tax Benefit” for a Taxable Year equals the excess, if any, of the Hypothetical
Tax Liability over the Actual Tax Liability for such Taxable Year. If all or a portion of the Actual Tax Liability for such Taxable
Year arises as a result of an audit or similar proceeding by a Taxing Authority of any Taxable Year, such liability shall not
be included in determining the Realized Tax Benefit unless and until there has been a Determination.

 

(v) Realized
Tax Detriment. The “Realized Tax Detriment” for a Taxable Year equals the excess, if any, of the Actual
Tax Liability over the Hypothetical Tax Liability for such Taxable Year. If all or a portion of the Actual Tax Liability for such
Taxable Year arises as a result of an audit or similar proceeding by a Taxing Authority of any Taxable Year, such liability shall
not be included in determining the Realized Tax Detriment unless and until there has been a Determination.

 

(vi) Imputed
Interest. The principles of Sections 1272, 1274, or 483 of the Code, as applicable, and the principles of any similar provision
of U.S. state and local law, will apply to cause a portion of any Net Tax Benefit payable by the Corporation to a Member under
this Agreement to be treated as imputed interest (“Imputed Interest”). For the avoidance of doubt, the deduction for
the amount of Imputed Interest as determined with respect to any Net Tax Benefit payable by the Corporation to a Member shall
be excluded in determining the Hypothetical Tax Liability of the Corporation for purposes of calculating Realized Tax Benefits
and Realized Tax Detriments pursuant to this Agreement.

 

(vii) Actual
Interest Amount. The “Actual Interest Amount” calculated in respect of the Net Tax Benefit for a Taxable
Year will equal the amount of any Extension Rate Interest.

 

(viii) Extension
Rate Interest. The amount of “Extension Rate Interest” calculated in respect of the Net Tax Benefit (including
previously accrued Imputed Interest) for a Taxable Year will equal interest calculated at the Agreed Rate from the due date (without
extensions) for filing the U.S. federal income Tax Return of the Corporation for such Taxable Year until the date on which the
Corporation makes a timely Tax Benefit Payment to the Member on or before the Final Payment Date as determined pursuant to Section 3.1(a).

 

(ix) Default
Rate Interest. In the event that the Corporation does not make timely payment of all or any portion of a Tax Benefit Payment
to a Member on or before the Final Payment Date as determined pursuant to Section 3.1(a), the amount of “Default
Rate Interest” calculated in respect of the Net Tax Benefit (including previously accrued Imputed Interest and Extension
Rate Interest) for a Taxable Year will equal interest calculated at the Default Rate from the Final Payment Date for a Tax Benefit
Payment as determined pursuant to Section 3.1(a) until the date on which the Corporation makes such Tax
Benefit Payment to such Member. For the avoidance of doubt, any deduction for any Default Rate Interest as determined with respect
to any Net Tax Benefit payable by the Corporation to a Member shall be included in the Hypothetical Tax Liability of the Corporation
for purposes of calculating Realized Tax Benefits and Realized Tax Detriments pursuant to this Agreement.

 

    12

     

    

 

(x) The
Corporation and the Members hereby acknowledge and agree that, as of the date of this Agreement and as of the date of any future
Exchange that may be subject to this Agreement, the aggregate value of the Tax Benefit Payments cannot be reasonably ascertained
for U.S. federal income or other applicable tax purposes.

 

(c) Interest.
The provisions of Section 3.1(b) are intended to operate so that interest will effectively accrue in respect
of the Net Tax Benefit for any Taxable Year as follows:

 

(i) first,
at the applicable rate used to determine the amount of Imputed Interest under the Code (from the relevant Exchange Date until
the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for such Taxable Year);

 

(ii) second,
at the Agreed Rate in respect of any Extension Rate Interest (from the due date (without extensions) for filing the U.S. federal
income Tax Return of the Corporation for such Taxable Year until the Final Payment Date for a Tax Benefit Payment as determined
pursuant to Section 3.1(a)); and

 

(iii) third,
at the Default Rate in respect of any Default Rate Interest (from the Final Payment Date for a Tax Benefit Payment as determined
pursuant to Section 3.1(a) until the date on which the Corporation makes the relevant Tax Benefit Payment
to a Member).

 

Section 3.2No
Duplicative Payments. It is intended that the provisions of this Agreement will not result in the duplicative payment of any
amount (including interest) that may be required under this Agreement, and the provisions of this Agreement shall be consistently
interpreted and applied in accordance with that intent. For purposes of this Agreement, and also for the avoidance of doubt, no
Tax Benefit Payment shall be calculated or made in respect of any estimated tax payments, including, without limitation, any estimated
U.S. federal income tax payments.

 

Section 3.3Pro-Ration of
Payments as Between the Members.

 

(a) Insufficient
Taxable Income. Notwithstanding anything in Section 3.1(b) to the contrary, if the aggregate potential
Covered Tax benefit of the Corporation as calculated with respect to the Basis Adjustments and Imputed Interest (in each case,
without regard to the Taxable Year of origination) is limited in a particular Taxable Year because the Corporation does not have
sufficient actual taxable income, then the available Covered Tax benefit for the Corporation shall be allocated among the Members
in proportion to the respective Tax Benefit Payment that would have been payable if the Corporation had in fact had sufficient
taxable income so that there had been no such limitation. As an illustration of the intended operation of this Section 3.3(a),
if the Corporation had $200 of aggregate potential Covered Tax benefits with respect to the Basis Adjustments and Imputed Interest
in a particular Taxable Year (with $50 of such Covered Tax benefits being attributable to Member 1 and $150 of such Covered Tax
benefits being attributable to Member 2), such that Member 1 would have potentially been entitled to a Tax Benefit Payment of
$42.50 and Member 2 would have been entitled to a Tax Benefit Payment of $127.50 if the Corporation had $200 of taxable income,
and if at the same time the Corporation only had $100 of actual taxable income in such Taxable Year, then $25 of the aggregate
$100 actual Covered Tax benefit for the Corporation for such Taxable Year would be allocated to Member 1 and $75 of the aggregate
$100 actual Covered Tax benefit for the Corporation would be allocated to Member 2, such that Member 1 would receive a Tax Benefit
Payment of $21.25 and Member 2 would receive a Tax Benefit Payment of $63.75.

 

(b) Late
Payments. If for any reason the Corporation is not able to timely and fully satisfy its payment obligations under this Agreement
in respect of a particular Taxable Year, then Default Rate Interest will begin to accrue pursuant to Section 5.2 and
the Corporation and other Parties agree that (i) the Corporation shall pay the Tax Benefit Payments due in respect of such
Taxable Year to each Member pro rata in accordance with the principles of Section 3.3(a) and (ii) no
Tax Benefit Payment shall be made in respect of any Taxable Year until all Tax Benefit Payments to all Members in respect of all
prior Taxable Years have been made in full.

 

    13

     

    

 

ARTICLE
IV

TERMINATION

 

Section 4.1Early
Termination of Agreement; Breach of Agreement.

 

(a) Corporation’s
Early Termination Right. With the written approval of a majority of the Independent Directors, the Corporation may completely
terminate this Agreement, as and to the extent provided herein, with respect to all amounts payable to the Members pursuant to
this Agreement by paying to the Members the Early Termination Payment; provided that Early Termination Payments may
be made pursuant to this Section 4.1(a) only if made to all Members that are entitled to such a payment simultaneously,
and provided further, that the Corporation may withdraw any notice to execute its termination rights under this Section
4.1(a) prior to the time at which any Early Termination Payment has been paid. Upon the Corporation’ payment of the
Early Termination Payment, the Corporation shall not have any further payment obligations under this Agreement, other than with
respect to any: (i) prior Tax Benefit Payments that are due and payable under this Agreement but that still remain unpaid
as of the date of the Early Termination Notice; and (ii) current Tax Benefit Payment due for the Taxable Year ending on or
including the date of the Early Termination Notice (except to the extent that the amount described in clause (ii) is included
in the calculation of the Early Termination Payment). If an Exchange subsequently occurs with respect to Units for which the Corporation
has exercised its termination rights under this Section 4.1(a), the Corporation shall have no obligations under
this Agreement with respect to such Exchange.

 

(b) Acceleration
upon Change of Control. In the event of a Change of Control, all obligations hereunder shall be accelerated and such obligations
shall be calculated pursuant to this Article IV as if an Early Termination Notice had been delivered on the closing
date of the Change of Control and utilizing the Valuation Assumptions by substituting the phrase “the closing date of a
Change of Control” in each place where the phrase “Early Termination Effective Date” appears. Such obligations
shall include, but not be limited to, (1) the Early Termination Payment calculated as if an Early Termination Notice had
been delivered on the closing date of the Change of Control, (2) any Tax Benefit Payments agreed to by the Corporation and
the Members as due and payable but unpaid as of the Early Termination Notice and (3) any Tax Benefit Payments due for any
Taxable Year ending prior to, with or including the closing date of a Change of Control (except to the extent that any amounts
described in clauses (2) or (3) are included in the Early Termination Payment). For the avoidance of doubt, Sections
4.2 and 4.3 shall apply to a Change of Control, mutadis mutandi.

 

(c) Acceleration
upon Breach of Agreement. In the event that the Corporation materially breaches any of its material obligations under this
Agreement, whether as a result of failure to make any payment when due, failure to honor any other material obligation required
hereunder, or by operation of law as a result of the rejection of this Agreement in a case commenced under the Bankruptcy Code
or otherwise, then all obligations hereunder shall be accelerated and become immediately due and payable upon notice of acceleration
from such Member (provided that in the case of any proceeding under the Bankruptcy Code or other insolvency statute, such acceleration
shall be automatic without any such notice), and such obligations shall be calculated as if an Early Termination Notice had been
delivered on the date of such notice of acceleration (or, in the case of any proceeding under the Bankruptcy Code or other insolvency
statute, on the date of such breach) and shall include, but not be limited to: (i) the Early Termination Payment calculated
as if an Early Termination Notice had been delivered on the date of such acceleration; (ii) any prior Tax Benefit Payments
that are due and payable under this Agreement but that still remain unpaid as of the date of such acceleration; and (iii) any
current Tax Benefit Payment due for the Taxable Year ending with or including the date of such acceleration. Notwithstanding the
foregoing, in the event that the Corporation breaches this Agreement and such breach is not a material breach of a material obligation,
a Member shall still be entitled to enforce all of its rights otherwise available under this Agreement, including potentially
seeking an acceleration of amounts payable under this Agreement. For purposes of this Section 4.1(c), and subject
to the following sentence, the Parties agree that the failure to make any payment due pursuant to this Agreement within thirty
(30) days of the relevant Final Payment Date shall be deemed to be a material breach of a material obligation under this
Agreement for all purposes of this Agreement, and that it will not be considered to be a material breach of a material obligation
under this Agreement to make a payment due pursuant to this Agreement within thirty (30) days of the relevant Final Payment
Date. Notwithstanding anything in this Agreement to the contrary, it shall not be a material breach of a material obligation of
this Agreement if the Corporation fails to make any Tax Benefit Payment within thirty (30) days of the relevant Final Payment
Date to the extent that the Corporation has insufficient funds, or cannot take commercially reasonable actions to obtain sufficient
funds, to make such payment; provided that the interest provisions of Section 5.2 shall apply
to such late payment (unless the Corporation does not have sufficient funds to make such payment as a result of limitations imposed
by any Senior Obligations, in which case Section 5.2 shall apply, but the Default Rate shall be replaced
by the Agreed Rate).

 

    14

     

    

 

Section 4.2 Early
Termination Notice. If the Corporation chooses to exercise its right of early termination under Section 4.1 above,
the Corporation shall deliver to the Members a notice of the Corporation’s decision to exercise such right (an “Early
Termination Notice”) and a schedule (the “Early Termination Schedule”) showing in reasonable detail
the calculation of the Early Termination Payment. The Corporation shall also (x) deliver supporting schedules and work papers,
as determined by the Corporation or as reasonably requested by a Member, that provide a reasonable level of detail regarding the
data and calculations that were relevant for purposes of preparing the Early Termination Schedule; (y) deliver a Corporation
Letter supporting such Early Termination Schedule; and (z) allow the Members and their advisors to have reasonable access
to the appropriate representatives, as determined by the Corporation or as reasonably requested by the Members, at the Corporation
and the Advisory Firm in connection with a review of such Early Termination Schedule. The Early Termination Schedule shall become
final and binding on each Party thirty (30) calendar days from the first date on which the Members received such Early Termination
Schedule unless:

 

(i) a
Member within thirty (30) calendar days after receiving the Early Termination Schedule, provides the Corporation with (A) notice
of a material objection to such Early Termination Schedule made in good faith and setting forth in reasonable detail such Member’s
material objection (a “Termination Objection Notice”) and (B) a letter from a Member Advisory Firm in
support of such Termination Objection Notice; or

 

(ii) each
Member provides a written waiver of such right of a Termination Objection Notice within the period described in clause (i) above,
in which case such Early Termination Schedule becomes binding on the date the waiver from all Members is received by the Corporation.

 

In
the event that a Member timely delivers a Termination Objection Notice pursuant to clause (i) above, and if the Parties,
for any reason, are unable to successfully resolve the issues raised in the Termination Objection Notice within thirty (30) calendar
days after receipt by the Corporation of the Termination Objection Notice, the Corporation and such Member shall employ the Reconciliation
Procedures. For the avoidance of doubt, and notwithstanding anything to the contrary herein, the expense of preparing and obtaining
the letter from a Member Advisory Firm referenced in clause (i) above shall be borne solely by such Member and the Corporation
shall have no liability with respect to such letter or any of the expenses associated with its preparation and delivery. The date
on which the Early Termination Schedule becomes final in accordance with this Section 4.2 shall be the “Early
Termination Reference Date.”

 

Section 4.3Payment
upon Early Termination.

 

(a) Timing
of Payment. Within three (3) Business Days after the Early Termination Reference Date, the Corporation shall pay to each
Member an amount equal to the Early Termination Payment for such Member. Such Early Termination Payment shall be made by the Corporation
by wire transfer of immediately available funds to a bank account or accounts designated by the Members or as otherwise agreed
by the Corporation and the Members.

 

(b) Amount
of Payment. The “Early Termination Payment” payable to a Member pursuant to Section 4.3(a) shall
equal the present value, discounted at the Early Termination Rate as determined as of the Early Termination Reference Date, of
all Tax Benefit Payments that would be required to be paid by the Corporation to such Member, whether payable with respect to
Units that were Exchanged prior to the Early Termination Effective Date or on or after the Early Termination Effective Date, beginning
from the Early Termination Effective Date and using the Valuation Assumptions. For the avoidance of doubt, an Early Termination
Payment shall be made to each Member, regardless of whether such Member has Exchanged all of its Units as of the Early Termination
Effective Date.

 

    15

     

    

 

ARTICLE
V

SUBORDINATION
AND LATE PAYMENTS

 

Section 5.1Subordination.
Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment required
to be made by the Corporation to the Members under this Agreement shall rank subordinate and junior in right of payment to any
principal, interest, or other amounts due and payable in respect of any obligations owed in respect of secured indebtedness for
borrowed money of the Corporation and its Subsidiaries (“Senior Obligations”) and shall rank pari passu in
right of payment with all current or future unsecured obligations of the Corporation that are not Senior Obligations. To the extent
that any payment under this Agreement is not permitted to be made at the time payment is due as a result of this Section 5.1
and the terms of the agreements governing Senior Obligations, such payment obligation nevertheless shall accrue for the benefit
of the Members and the Corporation shall make such payments at the first opportunity that such payments are permitted to be made
in accordance with the terms of the Senior Obligations.

 

Section 5.2Late
Payments by the Corporation. The amount of all or any portion of any Tax Benefit Payment or Early Termination Payment not
made to the Members when due under the terms of this Agreement, whether as a result of Section 5.1 and the
terms of the Senior Obligations or otherwise, shall be payable together with Default Rate Interest, which shall accrue beginning
on the Final Payment Date and be computed as provided in Section 3.1(b)(ix).

 

ARTICLE
VI

TAX
MATTERS; CONSISTENCY; COOPERATION

 

Section 6.1Participation
in the Corporation’s and Greenlane Holdings, LLC’s Tax Matters. Except as otherwise provided herein, and except
as provided in Article IX of the Operating Agreement, the Corporation shall have full responsibility for, and sole discretion
over, all tax matters concerning the Corporation and Greenlane Holdings, LLC, including without limitation the preparation, filing
or amending of any Tax Return and defending, contesting or settling any issue pertaining to taxes. Notwithstanding the foregoing,
the Corporation shall notify the Members of, and keep them reasonably informed with respect to, the portion of any tax audit of
the Corporation or Greenlane Holdings, LLC, or any of Greenlane Holdings, LLC’s Subsidiaries, the outcome of which is reasonably
expected to materially affect the Tax Benefit Payments payable to such Members under this Agreement, and any Member holding directly
and/or indirectly at least ten percent (10%) of the outstanding Units, provided that Greenlane Holdings, LLC has knowledge that
such Member holds directly and/or indirectly at least ten percent (10%) of the outstanding Units (a “10% Member”),
shall have the right to participate in and to monitor at their own expense (but, for the avoidance of doubt, not to control) any
such portion of any such Tax audit; provided that the Corporation shall not settle or fail to contest any issue pertaining to
Covered Taxes that is reasonably expected to materially adversely affect the Members’ rights and obligations under this
Agreement without the consent of each 10% Member, such consent not to be unreasonably withheld or delayed.

 

Section 6.2Consistency.
All calculations and determinations made hereunder, including, without limitation, any Basis Adjustments, the Schedules, and the
determination of any Realized Tax Benefits or Realized Tax Detriments, shall be made in accordance with the elections, methodologies
or positions taken by the Corporation and Greenlane Holdings, LLC on their respective Tax Returns. Each Member shall prepare its
Tax Returns in a manner that is consistent with the terms of this Agreement, and any related calculations or determinations that
are made hereunder, including, without limitation, the terms of Section 2.1 of this Agreement and the Schedules
provided to the Members under this Agreement. In the event that an Advisory Firm is replaced with another Advisory Firm acceptable
to the Audit Committee, such replacement Advisory Firm shall perform its services under this Agreement using procedures and methodologies
consistent with the previous Advisory Firm, unless otherwise required by law or unless the Corporation and all of the Members
agree to the use of other procedures and methodologies.

 

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Section 6.3Cooperation.

 

(a) Each
Member shall (i) furnish to the Corporation in a timely manner such information, documents and other materials as the Corporation
may reasonably request for purposes of making any determination or computation necessary or appropriate under this Agreement,
preparing any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (ii) make
itself available to the Corporation and its representatives to provide explanations of documents and materials and such other
information as the Corporation or its representatives may reasonably request in connection with any of the matters described in
clause (i) above, and (iii) reasonably cooperate in connection with any such matter.

 

(b) The
Corporation shall reimburse the Members for any reasonable and documented out-of-pocket costs and expenses incurred
pursuant to Section 6.3(a).

 

ARTICLE
VII.

MISCELLANEOUS

 

Section 7.1Notices.
All notices, requests, consents and other communications hereunder shall be in writing and shall be given (and shall be deemed
to have been duly given upon receipt) by delivery in person, by courier service, by fax, by electronic mail (delivery receipt
requested) or by certified or registered mail (postage prepaid, return receipt requested) to the respective Parties at the following
addresses (or at such other address for a Party as shall be as specified in a notice given in accordance with this Section 7.1).
All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing
by the Party to receive such notice:

 

If
to the Corporation, to:

 

Greenlane
Holdings, Inc.

1095
Broken Sound Parkway, Suite 300

Boca
Raton, Florida 33487

Attn:
Ethan Rudin, Chief Financial Officer

E-mail: erudin@gnln.com

 

with
a copy (which shall not constitute notice to the Corporation) to:

 

Pryor
Cashman LLP

7
Times Square, 40th Floor

New
York, New York 10036

Attn:
Jeffrey C. Johnson, Esq.

E-mail: jjohnson@pryorcashman.com

 

If
to a Member, the address, facsimile number and e-mail address specified on such Member’s signature page to this
Agreement.

 

Any
Party may change its address, fax number or e-mail address by giving each of the other Parties written notice thereof
in the manner set forth above.

 

Section 7.2Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties, it
being understood that all Parties need not sign the same counterpart. Delivery of an executed signature page to this Agreement
by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement.

 

Section 7.3Entire
Agreement; No Third Party Beneficiaries. This Agreement constitutes the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the Parties with respect to the subject matter hereof. This Agreement shall be
binding upon and inure solely to the benefit of each Party hereto and their respective successors and permitted assigns, and nothing
in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement.

 

    17

     

    

 

Section 7.4 Governing
Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of Delaware, without regard
to the conflicts of laws principles thereof that would mandate the application of the laws of another jurisdiction.

 

Section 7.5 Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy,
all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

Section 7.6 Assignments;
Amendments; Successors; No Waiver.

 

(a) Assignment.
No Member may assign, sell, pledge, or otherwise alienate or transfer any interest in this Agreement, including the right to receive
any Tax Benefit Payments under this Agreement, to any Person without the prior written consent of the Corporation, which consent
shall not be unreasonably withheld, conditioned or delayed, and without such Person executing and delivering a Joinder agreeing
to succeed to the applicable portion of such Member’s interest in this Agreement and to become a Party for all purposes
of this Agreement (the “Joinder Requirement”); provided, however, that to the extent any Member
sells, exchanges, distributes or otherwise transfers Units to any Person (other than the Corporation or Greenlane Holdings, LLC)
in accordance with the terms of the Operating Agreement, the Members shall have the option to assign to the transferee of such
Units its rights under this Agreement with respect to such transferred Units, provided that such transferee has
satisfied the Joinder Requirement. For the avoidance of doubt, if a Member transfers Units in accordance with the terms of the
Operating Agreement but does not assign to the transferee of such Units its rights under this Agreement with respect to such transferred
Units, such Member shall continue to be entitled to receive the Tax Benefit Payments arising in respect of a subsequent Exchange
of such Units. The Corporation may not assign any of its rights or obligations under this Agreement to any Person without Supermajority
Member Approval (and any purported assignment without such consent shall be null and void).

 

(b) Amendments.
No provision of this Agreement may be amended unless such amendment is approved in writing by the Corporation and made with Supermajority
Member Approval; provided that amendment of the definition of Change of Control will also require the written
approval of a majority of the Independent Directors. No provision of this Agreement may be waived unless such waiver is in writing
and signed by the Party against whom the waiver is to be effective.

 

(c) Successors.
All of the terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit of and be enforceable
by, the Parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The
Corporation shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Corporation, by written agreement, expressly to assume and agree
to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform if no such
succession had taken place.

 

(d) Waiver.
No failure by any Party to insist upon the strict performance of any covenant, duty, agreement, or condition of this Agreement,
or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or any other
covenant, duty, agreement, or condition.

 

Section 7.7Titles
and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement.

 

    18

     

    

 

Section 7.8Resolution
of Disputes.

 

(a) Except
for Reconciliation Disputes subject to Section 7.9, any and all disputes which cannot be settled after substantial
good-faith negotiation, including any ancillary claims of any Party, arising out of, relating to or in connection with the validity,
negotiation, execution, interpretation, performance or non-performance of this Agreement (including the validity, scope
and enforceability of this arbitration provision) (each a “Dispute”) shall be finally resolved by arbitration
in accordance with the International Institute for Conflict Prevention and Resolution Rules for Non-Administered Arbitration
by a panel of three arbitrators, of which the Corporation shall designate one arbitrator and the Members party to such Dispute
shall designate one arbitrator in accordance with the “screened” appointment procedure provided in Resolution Rule
5.4. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq., and judgment
upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of the arbitration
shall be Boca Raton, Florida.

 

(b) Notwithstanding
the provisions of paragraph (a), any Party may bring an action or special proceeding in any court of competent jurisdiction for
the purpose of compelling another Party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder,
and/or enforcing an arbitration award and, for the purposes of this paragraph (b), each Party (i) expressly consents to the
application of paragraph (c) of this Section 7.8 to any such action or proceeding, and (ii) agrees
that proof shall not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate
and that remedies at law would be inadequate. For the avoidance of doubt, this Section 7.8 shall not apply
to Reconciliation Disputes to be settled in accordance with the procedures set forth in Section 7.9.

 

(c) This
Agreement shall be governed in all respects, including as to validity, interpretation and effect, by the internal laws of the
State of Delaware, without giving effect to the conflict of laws rules thereof. The Parties agree that any suit or proceeding
in connection with, arising out of, or relating to this Agreement shall be instituted only in a court (whether federal or Delaware)
located in Kent County, Delaware, and the Parties, for the purpose of any such suit or proceeding, irrevocably consent and submit
to the personal and subject matter jurisdiction and venue of any such court in any such suit or proceeding. Each Party agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit
on the judgment or in any other manner provided by law.

 

(d) Each
Party irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection that it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred
to in Section 7.8(c). Each Party irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of any such suit, action or proceeding in any such court.

 

(e) Each
Party irrevocably consents to service of process by means of notice in the manner provided for in Section 7.1.
Nothing in this Agreement shall affect the right of any Party to serve process in any other manner permitted by law.

 

(f) WAIVER
OF RIGHT TO TRIAL BY JURY. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

 

(g) Any
dispute as to whether a dispute is a Reconciliation Dispute within the meaning of Section 7.9, or a Dispute within
the meaning of this Section 7.8, shall be decided and resolved as a Dispute subject to the procedures set forth
in this Section 7.8.

 

    19

     

    

 

Section 7.9Reconciliation.
In the event that the Corporation and any Member are unable to resolve a disagreement with respect to a Schedule (other than an
Early Termination Schedule) prepared in accordance with the procedures set forth in Section 2.4, or with respect
to an Early Termination Schedule prepared in accordance with the procedures set forth in Section 4.2, within
the relevant time period designated in this Agreement (a “Reconciliation Dispute”), the Reconciliation Dispute
shall be submitted for determination to a nationally recognized expert (the “Expert”) in the particular area
of disagreement mutually acceptable to both Parties. The Expert shall be a partner or principal in a nationally recognized accounting
firm, and unless the Corporation and such Member agree otherwise, the Expert shall not, and the firm that employs the Expert shall
not, have any material relationship with the Corporation or such Member or other actual or potential conflict of interest. If
the Parties are unable to agree on an Expert within fifteen (15) calendar days of receipt by the respondent(s) of written
notice of a Reconciliation Dispute, the selection of an Expert shall be treated as a Dispute subject to Section 7.8 and
an arbitration panel shall pick an Expert from a nationally recognized accounting firm that does not have any material relationship
with the Corporation or such Member or other actual or potential conflict of interest. The Expert shall resolve any matter relating
to the Basis Schedule or an amendment thereto, or the Early Termination Schedule or an amendment thereto within thirty (30) calendar
days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment thereto within fifteen (15) calendar
days or as soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert for resolution.
Notwithstanding the preceding sentence, if the matter is not resolved before any payment that is the subject of a disagreement
would be due (in the absence of such disagreement) or any Tax Return reflecting the subject of a disagreement is due, the undisputed
amount shall be paid on the date prescribed by this Agreement and such Tax Return may be filed as prepared by the Corporation,
subject to adjustment or amendment upon resolution. The costs and expenses relating to the engagement of such Expert or amending
any Tax Return shall be borne by the Corporation except as provided in the next sentence. The Corporation and the Members shall
bear their own costs and expenses of such proceeding, unless (i) the Expert adopts the Member’s position, in which
case the Corporation shall reimburse the Member for any reasonable and documented out-of-pocket costs and expenses in
such proceeding, or (ii) the Expert adopts the Corporation’s position, in which case the Member shall reimburse the
Corporation for any reasonable and documented out-of-pocket costs and expenses in such proceeding. The Expert shall
finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this Section 7.9 shall
be binding on the Corporation and the Members and may be entered and enforced in any court having competent jurisdiction.

 

Section 7.10Withholding.
The Corporation shall be entitled to deduct and withhold from any payment that is payable to any Member pursuant to this Agreement
such amounts as the Corporation is required to deduct and withhold with respect to the making of such payment under the Code or
any provision of U.S. state, local or foreign tax law. To the extent that amounts are so withheld and paid over to the appropriate
Taxing Authority by the Corporation, such withheld amounts shall be treated for all purposes of this Agreement as having been
paid by the Corporation to the relevant Member. Each Member shall promptly provide the Corporation with any applicable tax forms
and certifications reasonably requested by the Corporation in connection with determining whether any such deductions and withholdings
are required under the Code or any provision of U.S. state, local or foreign tax law.

 

Section 7.11Admission
of the Corporation into a Consolidated Group; Transfers of Corporate Assets.

 

(a) If
the Corporation is or becomes a member of an affiliated or consolidated group of corporations that files a consolidated income
Tax Return pursuant to Section 1501 or other applicable Sections of the Code governing affiliated or consolidated groups,
or any corresponding provisions of U.S. state or local law, then: (i) the provisions of this Agreement shall be applied with
respect to the group as a whole; and (ii) Tax Benefit Payments, Early Termination Payments, and other applicable items hereunder
shall be computed with reference to the consolidated taxable income of the group as a whole.

 

(b) If
any entity that is obligated to make a Tax Benefit Payment or Early Termination Payment hereunder transfers one or more assets
to a corporation (or a Person classified as a corporation for U.S. income tax purposes) with which such entity does not file a
consolidated Tax Return pursuant to Section 1501 of the Code, such entity, for purposes of calculating the amount of any
Tax Benefit Payment or Early Termination Payment due hereunder, shall be treated as having disposed of such asset in a fully taxable
transaction on the date of such contribution. The consideration deemed to be received by such entity shall be equal to the fair
market value of the contributed asset. For purposes of this Section 7.11, a transfer of a partnership interest
shall be treated as a transfer of the transferring partner’s share of each of the assets and liabilities of that partnership.

 

    20

     

    

 

Section 7.12Confidentiality.
Each Member and its assignees acknowledges and agrees that the information of the Corporation is confidential and, except in the
course of performing any duties as necessary for the Corporation and its Affiliates, as required by law or legal process or to
enforce the terms of this Agreement, such Person shall keep and retain in the strictest confidence and not disclose to any Person
any confidential matters, acquired pursuant to this Agreement, of the Corporation and its Affiliates and successors, learned by
any Member heretofore or hereafter. This Section 7.12 shall not apply to (i) any information that has
been made publicly available by the Corporation or any of its Affiliates, becomes public knowledge (except as a result of an act
of any Member in violation of this Agreement) or is generally known to the business community, (ii) the disclosure of information
to the extent necessary for a Member to prosecute or defend claims arising under or relating to this Agreement, and (iii) the
disclosure of information to the extent necessary for a Member to prepare and file its Tax Returns, to respond to any inquiries
regarding the same from any Taxing Authority or to prosecute or defend any action, proceeding or audit by any Taxing Authority
with respect to such Tax Returns. Notwithstanding anything to the contrary herein, the Members and each of their assignees (and
each employee, representative or other agent of the Members or their assignees, as applicable) may disclose at their discretion
to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the Corporation, the Members and
any of their transactions, and all materials of any kind (including tax opinions or other tax analyses) that are provided to the
Members relating to such tax treatment and tax structure. If a Member or an assignee commits a breach, or threatens to commit
a breach, of any of the provisions of this Section 7.12, the Corporation shall have the right and remedy to have
the provisions of this Section 7.12 specifically enforced by injunctive relief or otherwise by any court
of competent jurisdiction without the need to post any bond or other security, it being acknowledged and agreed that any such
breach or threatened breach shall cause irreparable injury to the Corporation or any of its Subsidiaries and that money damages
alone shall not provide an adequate remedy to such Persons. Such rights and remedies shall be in addition to, and not in lieu
of, any other rights and remedies available at law or in equity.

 

Section 7.13Change
in Law. Notwithstanding anything herein to the contrary, if, in connection with an actual or proposed change in law, a Member
reasonably believes that the existence of this Agreement could cause income (other than income arising from receipt of a payment
under this Agreement) recognized by such Member (or direct or indirect equity holders in such Member) in connection with any Exchange
to be treated as ordinary income rather than capital gain (or otherwise taxed at ordinary income rates) for U.S. federal income
tax purposes or would have other material adverse tax consequences to such Member or any direct or indirect owner of such Member,
then at the written election of such Member in its sole discretion (in an instrument signed by such Member and delivered to the
Corporation) and to the extent specified therein by such Member, this Agreement shall cease to have further effect and shall not
apply to an Exchange occurring after a date specified by such Member, or may be amended by in a manner reasonably determined by
such Member, provided that such amendment shall not result in an increase in any payments owed by the Corporation
under this Agreement at any time as compared to the amounts and times of payments that would have been due in the absence of such
amendment.

 

Section 7.14Interest
Rate Limitation. Notwithstanding anything to the contrary contained herein, the interest paid or agreed to be paid hereunder
with respect to amounts due to any Member hereunder shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the “Maximum Rate”). If any Member shall receive interest in an amount that exceeds the
Maximum Rate, the excess interest shall be applied to the Tax Benefit Payment or Early Termination Payment, as applicable (but
in each case exclusive of any component thereof comprising interest) or, if it exceeds such unpaid non-interest amount,
refunded to the Corporation. In determining whether the interest contracted for, charged, or received by any Member exceeds the
Maximum Rate, such Member may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the payment
obligations owed by the Corporation to such Member hereunder. Notwithstanding the foregoing, it is the intention of the Parties
to conform strictly to any applicable usury laws.

 

Section 7.15Independent
Nature of Rights and Obligations. The rights and obligations of each Member hereunder are several and not joint with the rights
and obligations of any other Person. A Member shall not be responsible in any way for the performance of the obligations of any
other Person hereunder, nor shall a Member have the right to enforce the rights or obligations of any other Person hereunder (other
than the Corporation). The obligations of a Member hereunder are solely for the benefit of, and shall be enforceable solely by,
the Corporation. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken
by any Member pursuant hereto or thereto, shall be deemed to constitute the Members acting as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the Members are in any way acting in concert or as a group
with respect to such rights or obligations or the transactions contemplated hereby, and the Corporation acknowledges that the
Members are not acting in concert or as a group and will not assert any such claim with respect to such rights or obligations
or the transactions contemplated hereby.

 

[Signature
Page Follows This Page]

 

    21

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed or caused to be executed on their behalf this Agreement as of the date first written
above.

 

	 	GREENLANE HOLDINGS, INC.
	 	 
	 	By:	/s/ Aaron LoCascio
	 	Name:  	Aaron LoCascio
	 	Title: 	Chief Executive Officer
	 	 
	 	GREENLANE HOLDINGS, LLC
	 	By:
    Greenlane Holdings, Inc., its Manager
	 	 
	 	By:	/s/ Aaron
    LoCascio
	 	Name: 	Aaron LoCascio
	 	Title: 	Chief Executive Officer
	 	 
	 	MEMBERS
	 	 
	 	CLASS A
	 	 
	 	JACOBY & CO. INC.
	 	 
	 	By:	/s/ Aaron
    LoCascio
	 	Name: 	Aaron LoCascio
	 	Title: 	Co-President
	 	 
	 	By:	/s/ Adam
    Schoenfeld
	 	Name: 	Adam Schoenfeld
	 	Title: 	Co-President
	 	 
	 	/s/ Adam
Schoenfeld
	 	Adam Schoenfeld
	 	 
	 	CLASS B
	 	 
	 	BETTER LIFE PRODUCTS INVESTMENT
    GROUP, INC.
	 	 
	 	By:	/s/ Jeffrey
    Sherman
	 	Name: 	Jeffrey Sherman
	 	Title: 	President

 

SIGNATURE
PAGE TO

TAX
RECEIVABLE AGREEMENT

 

     

     

    

 

	 	ROCHESTER VAPOR GROUP, LLC
	 	 	 
	 	By:	/s/
    Clive Fleissig
	 	Name:	Clive Fleissig
	 	Title:	Manager
	 	 	 
	 	POLLEN GEAR HOLDINGS LLC
	 	 	 
	 	By:	/s/
    Edward Kilduff
	 	Name:	Edward Kilduff
	 	Title:	Manager
	 	 	 
	 	/s/ Zachary
    Tapp
	 	Zachary Tapp
	 	 
	 	/s/ Jay
    Scheiner
	 	Jay Scheiner
	 	 
	 	/s/ Sasha
    Kadey
	 	Sasha Kadey
	 	 
	 	/s/ Tessa
    Weaver
	 	Tessa Weaver
	 	 
	 	/s/ Chad
    Freling
	 	Chad Freling

 

	 	/s/ Hisham Boulhimez
	 	Hisham Boulhimez
	 	 
	 	/s/ Seth Sznapstajler
	 	Seth Sznapstajler

 

SIGNATURE
PAGE TO

TAX
RECEIVABLE AGREEMENT

 

     

     

    

 

	 	/s/ Joseph Hurwitz
	 	Joseph Hurwitz
	 	 
	 	/s/ William Bradford Dulin
	 	William Bradford Dulin
	 	 
	 	/s/ Matthew Paul
	 	Matthew Paul
	 	 
	 	/s/ Wade Wilson
	 	Wade Wilson
	 	 
	 	/s/ Fabian Acuna
	 	Fabian Acuna
	 	 
	 	/s/ James Leonard

	 	James Leonard
	 	 
	 	/s/ Ethan Rudin
	 	Ethan Rudin
	 	 
	 	/s/ Jason Baum
	 	Jason Baum
	 	 
	 	/s/ Dawn Marie Cavanagh

	 	Dawn Marie Cavanagh
	 	 
	 	/s/ Douglas Fischer

	 	Douglas Fischer

 

SIGNATURE
PAGE TO

TAX
RECEIVABLE AGREEMENT

 

     

     

    

 

Exhibit
A

 

FORM
OF JOINDER AGREEMENT

 

This
JOINDER AGREEMENT, dated as of                              ,
20             (this “Joinder”), is delivered pursuant
to that certain Tax Receivable Agreement, dated as of [●] 2019 (as amended, restated, amended and restated, supplemented
or otherwise modified from time to time, the “Tax Receivable Agreement”) by and among Greenlane Holdings, Inc.,
a Delaware corporation (the “Corporation”), Greenlane Holdings, LLC, a Delaware limited liability company (“Greenlane
Holdings, LLC”), and each of the Members from time to time party thereto. Capitalized terms used but not otherwise defined
herein have the respective meanings set forth in the Tax Receivable Agreement.

 

	 	1.	Joinder to the
    Tax Receivable Agreement. The undersigned hereby represents and warrants to the Corporation that, as of the date hereof,
    the undersigned has been assigned an interest in the Tax Receivable Agreement from a Member.

 

	 	2.	Joinder to the
    Tax Receivable Agreement. Upon the execution of this Joinder by the undersigned and delivery hereof to the Corporation,
    the undersigned hereby is and hereafter will be a Member under the Tax Receivable Agreement and a Party thereto, with all
    the rights, privileges and responsibilities of a Member thereunder. The undersigned hereby agrees that it shall comply with
    and be fully bound by the terms of the Tax Receivable Agreement as if it had been a signatory thereto as of the date thereof.

 

	 	3.	Incorporation
    by Reference. All terms and conditions of the Tax Receivable Agreement are hereby incorporated by reference in this Joinder
    as if set forth herein in full.

 

	 	4.	Address.
    All notices under the Tax Receivable Agreement to the undersigned shall be direct to:

 

[Name]

[Address]

[City,
State, Zip Code]

Attn:

Facsimile:

E-mail:

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Joinder as of the day and year first above written.

 

	 	[NAME OF NEW PARTY]
	 	 	 
	 	By:	               
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	Acknowledged and agreed

as of the date first set forth above:

	 	 	 
	 	GREENLANE HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:Exhibit 10.5 

 

GREENLANE HOLDINGS, INC. 

 

2019 EQUITY INCENTIVE PLAN 

 

1. Purpose.

 

The Plan’s purpose is to enhance the Company’s
ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing
these individuals with equity ownership opportunities. Capitalized terms used in the Plan are defined in Section 11.

 

2. Eligibility.

 

Service Providers are eligible to be granted Awards under the
Plan, subject to the limitations described herein.

 

3. Administration and Delegation.

 

(a) Administration. The Plan is administered by the
Administrator. The Administrator has authority to determine which Service Providers receive Awards, grant Awards and set Award
terms and conditions, subject to the conditions and limitations in the Plan. The Administrator also has the authority to take
all actions and make all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt, amend and repeal
Plan administrative rules, guidelines and practices as it deems advisable. The Administrator may correct defects and ambiguities,
supply omissions and reconcile inconsistencies in the Plan or any Award or Award Agreement as it deems necessary or appropriate
to administer the Plan and any Awards. The Administrator’s determinations under the Plan are in its sole discretion and
will be final and binding on all persons having or claiming any interest in the Plan or any Award. The Administrator’s determinations
under the Plan need not be uniform and may be made selectively among Participants, whether or not such Participants are similarly
situated.

 

(b) Appointment of Committees; Delegation of Powers.
To the extent Applicable Laws permit, the Board may delegate any or all of its powers under the Plan to one or more Committees.
The Board may also delegate to an executive officer of the Company the authority to grant Awards to Service Providers that are
not subject to Section 16 of the Exchange Act. The Board may rescind any such delegation at any time or re-vest in itself any
previously delegated authority at any time.

 

4. Stock Available for Awards.

 

(a) Number of Shares. Subject to adjustment under Section
8 and the terms of this Section 4, Awards may be made under the Plan covering up to the Overall Share Limit. Shares issued under
the Plan may consist of authorized but unissued Shares, Shares purchased on the open market or treasury Shares.

 

(b) Share Recycling. If all or any part of an Award
expires, lapses or is terminated, exchanged for cash, surrendered, repurchased, canceled without having been fully exercised or
forfeited, in any case, in a manner that results in the Company acquiring Shares covered by the Award for less than Fair Market
Value or not issuing any Shares covered by the Award, the unused Shares covered by the Award will, as applicable, become or again
be available for Award grants under the Plan. In addition, Shares tendered by the Participant or withheld by the Company in payment
of the exercise price of an Option or to satisfy any tax withholding obligation with respect to an Award will, as applicable,
become or again be available for Award grants under the Plan.

 

(c) Incentive Stock
Option Limitations. Notwithstanding anything to the contrary herein, no more than  5,000,000 Shares may be issued
pursuant to the exercise of Incentive Stock Options, and no Shares may again be optioned, granted or awarded if it would
cause an Incentive Stock Option not to qualify as an Incentive Stock Option.

 

(d) Substitute Awards. In connection with an entity’s
merger or consolidation with the Company or the Company’s acquisition of an entity’s property or stock, the Administrator
may grant Awards in substitution for any options or other stock or stock-based awards granted before such merger or consolidation
by such entity or its affiliate. Substitute Awards may be granted on such terms as the Administrator deems appropriate, notwithstanding
limitations on Awards in the Plan. Substitute Awards will not count against the Overall Share Limit, except that Shares acquired
by exercise of substitute Incentive Stock Options will count against the maximum number of Shares that may be issued pursuant
to the exercise of Incentive Stock Options under the Plan.

 

 

     

     

    

 

5. Stock Options and Stock Appreciation Rights.

 

(a) General. The Administrator may grant Options or
Stock Appreciation Rights to Service Providers subject to the limitations in the Plan, including Section 5(f) with respect to
Incentive Stock Options. The Administrator will determine the number of Shares covered by each Option and Stock Appreciation Right,
the exercise price of each Option and Stock Appreciation Right and the conditions and limitations applicable to the exercise of
each Option and Stock Appreciation Right. A Stock Appreciation Right shall entitle the Participant (or other person entitled to
exercise the Stock Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the Stock Appreciation Right
(to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the
difference obtained by subtracting the exercise price per share of the Stock Appreciation Right from the Fair Market Value on
the date of exercise of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right
shall have been exercised, subject to any limitations of the Plan or as the Administrator may impose.

 

(b) Exercise Price. The Administrator will establish
each Option’s and Stock Appreciation Right’s exercise price and specify the exercise price in the Award Agreement.
The exercise price will not be less than 100% of the Fair Market Value on the grant date of the Option or Stock Appreciation Right.

 

(c) Duration of Options. Each Option or Stock Appreciation
Right will be exercisable at such times and as specified in the Award Agreement, provided that the term of an Option or Stock
Appreciation Right will not exceed ten years.

 

(d) Exercise; Notification of Disposition. Options and
Stock Appreciation Rights may be exercised by delivering to the Company a written notice of exercise, in a form the Administrator
approves (which may be electronic), signed by the person authorized to exercise the Option or Stock Appreciation Right, together
with, as applicable, payment in full (i) as specified in Section 5(e) for the number of Shares for which the Award is exercised
and (ii) as specified in Section 9(e) for any applicable withholding taxes. Unless the Administrator otherwise determines, an
Option or Stock Appreciation Right may not be exercised for a fraction of a Share.

 

(e) Payment Upon Exercise. The exercise price of an
Option must be paid in cash or by check payable to the order of the Company or, subject to Section 10(h), any Company insider
trading policy (including blackout periods) and Applicable Laws, by:

 

(i) if there is a public market for Shares at the time of exercise,
unless the Administrator otherwise determines, (A) delivery (including telephonically to the extent permitted by the Company)
of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient
funds to pay the exercise price, or (B) the Participant’s delivery to the Company of a copy of irrevocable and unconditional
instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to pay the exercise
price;

 

(ii) delivery (either by actual delivery or attestation) of
Shares owned by the Participant valued at their Fair Market Value, provided (A) such payment method is then permitted under Applicable
Laws, (B) such Shares, if acquired directly from the Company, were owned by the Participant for a minimum time period that the
Company may establish and (C) such Shares are not subject to repurchase, forfeiture, unfulfilled vesting or other similar requirements;
or

 

(iii) any other mechanism that the Administrator, in its sole
discretion, determines to be appropriate for a Participant, which the Administrator can determine on a case by case basis and
any such determination with respect to one Participant shall not bind the Administrator with respect to any other Participant.

 

(f) Additional Terms of Incentive Stock Options. The
Administrator may grant Options intended to qualify as Incentive Stock Options only to employees of the Company, any of its present
or future “parent corporations” or “subsidiary corporations” as defined in Sections 424(e) or (f) of the
Code, respectively, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code.
No person qualifying as a Greater Than 10% Stockholder may be granted an Incentive Stock Option, unless such Incentive Stock Option
conforms to Section 422 of the Code. If an Incentive Stock Option is granted to a Greater Than 10% Stockholder, the exercise price
will not be less than 110% of the Fair Market Value on the Option’s grant date, and the term of the Option will not exceed
five years. The Administrator may modify an Incentive Stock Option with the holder’s consent to disqualify such Option as
an Incentive Stock Option. All Options intended to qualify as Incentive Stock Options will be subject to and construed consistently
with Section 422 of the Code. By accepting an Incentive Stock Option, the Participant agrees to give prompt notice to the Company
of dispositions or other transfers (other than in connection with a Change in Control) of Shares acquired from the Option made
within (i) two years from the grant date of the Option or (ii) one year after the transfer of such Shares to the Participant,
specifying the date of the disposition or other transfer and the amount the Participant realized, in cash, other property, assumption
of indebtedness or other consideration, in such disposition or other transfer. Neither the Company nor the Administrator will
be liable to a Participant, or any other party, (i) if an Option (or any part thereof) intended to qualify as an Incentive Stock
Option fails to qualify as an Incentive Stock Option or (ii) for the Administrator’s actions or omissions that cause an
Option not to qualify as an Incentive Stock Option, including the conversion of an Incentive Stock Option to a Non-Qualified Stock
Option or the grant of an Option intended as an Incentive Stock Option that fails to qualify as an Incentive Stock Option. Any
Option that is intended to qualify as an Incentive Stock Option, but fails to qualify for any reason, including the portion of
any Option becoming exercisable with respect to Shares having a fair market value exceeding the $100,000 limitation under Treasury
Regulation Section 1.422-4, will be a Non-Qualified Stock Option.

 

    2

     

    

 

6. Restricted Stock; Restricted Stock Units.

 

(a) General. The Administrator may grant Restricted
Stock, or the right to purchase Restricted Stock, to any Service Provider, subject to the Company’s right to repurchase
all or part of such shares at their issue price or other stated or formula price from the Participant (or to require forfeiture
of such shares if issued at no cost) if conditions the Administrator specifies in the Award Agreement are not satisfied before
the end of the applicable restriction period or periods that the Administrator establishes for such Award. In addition, the Administrator
may grant to Service Providers Restricted Stock Units, which may be subject to vesting and forfeiture conditions during applicable
restriction period or periods, as set forth in an Award Agreement. The Administrator will determine and set forth in the Award
Agreement the terms and conditions for each Restricted Stock and Restricted Stock Unit Award, subject to the conditions and limitations
contained in the Plan.

 

(b) Restricted Stock.

 

(i) Dividends. Participants holding shares of Restricted
Stock will be entitled to all ordinary cash dividends paid with respect to such shares, unless the Administrator provides otherwise
in the Award Agreement. In addition, unless the Administrator provides otherwise, if any dividends or distributions are paid in
Shares, or consist of a dividend or distribution to holders of Common Stock of property other than an ordinary cash dividend,
the Shares or other property will be subject to the same restrictions on transferability and forfeitability as the shares of Restricted
Stock with respect to which they were paid. All such dividend payments will be made no later than March 15 of the calendar year
following the calendar year in which the right to the dividend payment becomes nonforfeitable.

 

(ii) Stock Certificates. The Company may require that
the Participant deposit in escrow with the Company (or its designee) any stock certificates issued in respect of shares of Restricted
Stock, together with a stock power endorsed in blank.

 

(c) Restricted Stock Units.

 

(i) Settlement. When a Restricted Stock Unit vests,
the Participant will be entitled to receive from the Company one Share, an amount of cash or other property equal to the Fair
Market Value of one Share on the settlement date or a combination of both, as the Administrator determines and as provided in
the Award Agreement. The Administrator may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably
practicable after the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant’s
election, in a manner intended to comply with Section 409A.

 

(ii) Stockholder Rights. A Participant will have no
rights of a stockholder with respect to Shares subject to any Restricted Stock Unit unless and until the Shares are delivered
in settlement of the Restricted Stock Unit.

 

7. Other Stock or Cash Based Awards; Dividend Equivalents.

 

(a) Other Stock or Cash Based Awards. Other Stock or
Cash Based Awards may be granted to Participants, including Awards entitling Participants to receive Shares to be delivered in
the future and including annual or other period or long-term cash bonus awards (whether based on specified Performance Criteria
or otherwise), in each case subject to the conditions and limitations in the Plan. Such Other Stock or Cash Based Awards will
also be available as a payment form in the settlement of other Awards, as standalone payments and as payment in lieu of compensation
to which a Participant is otherwise entitled. Other Stock or Cash Based Awards may be paid in Shares, cash or other property,
as the Administrator determines. Subject to the provisions of the Plan, the Administrator will determine the terms and conditions
of each Other Stock or Cash Based Award, including any purchase price, performance goal (which may be based on the Performance
Criteria), transfer restrictions, and vesting conditions, which will be set forth in the applicable Award Agreement.

 

(b) Dividend Equivalents. If the Administrator provides,
a grant of Restricted Stock Units or an Other Stock Award may provide a Participant with the right to receive Dividend Equivalents,
and no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights. Dividend Equivalents may be
paid currently or credited to an account for the Participant, settled in cash or Shares and subject to the same restrictions on
transferability and forfeitability as the Award with respect to which the Dividend Equivalents are paid and subject to other terms
and conditions as set forth in the Award Agreement. All such Dividend Equivalent payments will be made no later than March 15
of the calendar year following the calendar year in which the right to the Dividend Equivalent payment becomes nonforfeitable,
unless determined otherwise by the Administrator.

 

    3

     

    

 

8. Adjustments for Changes in Common Stock and Certain
Other Events.

 

(a) In connection with any Equity Restructuring, notwithstanding
anything to the contrary in this Section 8, the Administrator will equitably adjust each outstanding Award as it deems appropriate
to effect the Equity Restructuring, which may include adjusting the number and type of securities subject to each outstanding
Award and/or the Award’s exercise price or grant price (if applicable), granting new Awards to Participants, and making
a cash payment to Participants. The adjustments provided under this Section 8(a) will be nondiscretionary and final and binding
on the affected Participant and the Company; provided that the Administrator will determine whether an adjustment is equitable.

 

(b) In the event that the Administrator determines that any
dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), reorganization, merger,
consolidation, combination, repurchase, recapitalization, liquidation, dissolution, or sale, transfer, exchange or other disposition
of all or substantially all of the assets of the Company, or sale or exchange of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction
or event, as determined by the Administrator, affects the Common Stock such that an adjustment is determined by the Administrator
to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to
be made available under the Plan or with respect to any Award, then the Administrator may, in such manner as it may deem equitable,
adjust any or all of:

 

(i) the number and kind of Shares (or other securities or property)
with respect to which Awards may be granted or awarded (including, but not limited to, adjustments of the limitations in Section
4 hereof on the maximum number and kind of shares which may be issued and specifically including for the avoidance of doubt adjustments
to the Incentive Stock Option limitation set forth in Section 4(c));

 

(ii) the number and kind of Shares (or other securities or
property) subject to outstanding Awards;

 

(iii) the grant or exercise price with respect to any Award;
and

 

(iv) the terms and conditions of any Awards (including, without
limitation, any applicable financial or other performance “targets” specified in an Award Agreement).

 

(c) In the event of any transaction or event described in Section
8(b) hereof (including without limitation any Change in Control) or any unusual or nonrecurring transaction or event affecting
the Company or the financial statements of the Company, or any change in any Applicable Laws or accounting principles, the Administrator,
on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence
of such transaction or event, is hereby authorized to take such actions as it deems appropriate, including, but not limited to,
any one or more of the following actions:

 

(i) To provide for the cancellation of any such Award in exchange
for either an amount of cash or other property with a value equal to the amount that could have been obtained upon the exercise
or settlement of the vested portion of such Award or realization of the Participant’s rights under the vested portion of
such Award, as applicable; provided that, if the amount that could have been obtained upon the exercise or settlement of the vested
portion of such Award or realization of the Participant’s rights, in any case, is equal to or less than zero, then the vested
portion of such Award may be terminated without payment;

 

(ii) To provide that such Award shall vest and, to the extent
applicable, be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions
of such Award;

 

(iii) To provide that such Award be assumed by the successor
or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by awards covering the stock of the successor
or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and
applicable exercise or purchase price, in all cases, as determined by the Administrator;

 

(iv) To make adjustments in the number and type of Shares (or
other securities or property) subject to outstanding Awards, and/or in the terms and conditions of (including the grant or exercise
price), and the criteria included in, outstanding Awards;

 

(v) To replace such Award with other rights or property selected
by the Administrator; and/or

 

(vi) To provide that the Award will terminate and cannot vest,
be exercised or become payable after the applicable event.

 

(d) In the event of any pending stock dividend, stock split,
combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets
to stockholders, or any other extraordinary transaction or change affecting the Shares or the share price of Common Stock, including
any Equity Restructuring or any securities offering or other similar transaction, for administrative convenience, the Administrator
may refuse to permit the exercise of any Award for up to 60 days before or after such transaction.

 

    4

     

    

 

(e) Except as expressly provided in the Plan or the Administrator’s
action under the Plan, no Participant will have any rights due to any subdivision or consolidation of Shares of any class, dividend
payment, increase or decrease in the number of Shares of any class or dissolution, liquidation, merger, or consolidation of the
Company or other corporation. Except as expressly provided with respect to an Equity Restructuring under Section 8(a) above or
the Administrator’s action under the Plan, no issuance by the Company of shares of any class, or securities convertible
into shares of any class, will affect, and no adjustment will be made regarding, the number of Shares subject to an Award or the
Award’s grant or exercise price. The existence of the Plan, any Award Agreements and the Awards granted hereunder will not
affect or restrict in any way the Company’s right or power to make or authorize (i) any adjustment, recapitalization, reorganization
or other change in the Company’s capital structure or its business, (ii) any merger, consolidation dissolution or liquidation
of the Company or sale of Company assets or (iii) any sale or issuance of securities, including securities with rights superior
to those of the Shares or securities convertible into or exchangeable for Shares. The Administrator may treat Participants and
Awards (or portions thereof) differently under this Section 8.

 

(f) No action shall be taken under this Section 8 which shall
cause an Award to fail to comply with Section 409A of the Code or the Treasury Regulations thereunder, to the extent applicable
to such Award.

 

9. General Provisions Applicable to Awards.

 

(a) Transferability. Except as the Administrator may
determine or provide in an Award Agreement or otherwise, in accordance with Applicable Laws (and subject to the applicable requirements
for Shares underlying Awards to be registered on Form S-8 under the Securities Act), Awards may not be sold, assigned, transferred,
pledged or otherwise encumbered, either voluntarily or by operation of law, except by will or the laws of descent and distribution,
or, subject to the Administrator’s consent, pursuant to a DRO, and, during the life of the Participant, will be exercisable
only by the Participant. Any permitted transfer of an Award hereunder shall be without consideration, except as required by Applicable
Law. References to a Participant, to the extent relevant in the context, will include references to a Participant’s authorized
transferee that the Administrator specifically approves under Applicable Laws.

 

(b) Documentation. Each Award will be evidenced in an
Award Agreement, as the Administrator determines. Each Award may contain terms and conditions in addition to those set forth in
the Plan.

 

(c) Discretion. Except as the Plan otherwise provides,
each Award may be made alone or in addition or in relation to any other Award. The terms of each Award to a Participant need not
be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly.

 

(d) Termination of Status. The Administrator will determine
how the disability, death, retirement, authorized leave of absence or any other change or purported change in a Participant’s
Service Provider status affects an Award and the extent to which, and the period during which, the Participant, the Participant’s
legal representative, conservator, guardian or Designated Beneficiary may exercise rights under the Award, if applicable.

 

(e) Withholding. Each Participant must pay the Company,
or make provision satisfactory to the Administrator for payment of, any taxes required by law to be withheld in connection with
such Participant’s Awards by the date of the event creating the tax liability. In satisfaction of the foregoing requirement
or in satisfaction of any additional tax withholding, the Company may satisfy, or may allow a Participant to satisfy, such obligations
by any payment means described in Section 5(e) hereof, including, without limitation, by withholding, or allowing such Participant
to elect to have the Company or an affiliate withhold, Shares otherwise issuable under an Award (or allow the surrender of Shares).
The number of Shares which may be so withheld or surrendered shall be limited to the number of Shares which have a fair market
value on the date of withholding or repurchase no greater than the aggregate amount of such liabilities based on the maximum individual
statutory withholding rates in the applicable jurisdiction, in accordance with Company policies and at the discretion of the Administrator.
The Administrator shall determine the fair market value of the Shares, consistent with applicable provisions of the Code, for
tax withholding obligations due in connection with a broker-assisted cashless Option or Stock Appreciation Right exercise involving
the sale of Shares to pay the Option or Stock Appreciation Right exercise price or any tax withholding obligation.

 

(f) Amendment of Award. The Administrator may amend,
modify or terminate any outstanding Award, including by substituting another Award of the same or a different type, changing the
exercise or settlement date, and converting an Incentive Stock Option to a Non-Qualified Stock Option. The Participant’s
consent to such action will be required unless (i) the Administrator determines that the action, taking into account any related
action, would not materially and adversely affect the Participant, or (ii) the change is permitted under Section 8 or pursuant
to 10(f).

 

    5

     

    

 

(g) Conditions on Delivery of Stock. The Company will
not be obligated to deliver any Shares under the Plan or remove restrictions from Shares previously delivered under the Plan until
(i) all Award conditions have been met or removed to the Company’s satisfaction, (ii) as determined by the Company, all
other legal matters regarding the issuance and delivery of such Shares have been satisfied, including any applicable securities
laws and stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company
such representations or agreements as the Administrator deems necessary or appropriate to satisfy any Applicable Laws. The Company’s
inability to obtain authority from any regulatory body having jurisdiction, which the Administrator determines is necessary to
the lawful issuance and sale of any securities, will relieve the Company of any liability for failing to issue or sell such Shares
as to which such requisite authority has not been obtained.

 

(h) Acceleration. The Administrator may at any time
provide that any Award will become immediately vested and fully or partially exercisable, free of some or all restrictions or
conditions, or otherwise fully or partially realizable.

 

(i) Repricing. Subject to Section 8, the Administrator
shall have the authority, without the approval of the stockholders of the Company, to (i) authorize the amendment of any outstanding
Option or Stock Appreciation Right to reduce its price per share, or (ii) cancel any Option or Stock Appreciation Right in exchange
for cash or another Award when the Option or Stock Appreciation Right price per share exceeds the Fair Market Value of the underlying
Shares. In addition, subject to Section 8, the Administrator shall have the authority, without the approval of the stockholders
of the Company, to amend any outstanding Award to increase the price per share or to cancel and replace an Award with the grant
of an Award having a price per share that is greater than or equal to the price per share of the original Award.

 

(j) Cash Settlement. Without limiting the generality
of any other provision of the Plan, the Administrator may provide, in an Award Agreement or subsequent to the grant of an Award,
in its discretion, that any Award may be settled in cash, Shares or a combination thereof.

 

10. Miscellaneous. 

 

(a) No Right to Employment or Other Status. No person
will have any claim or right to be granted an Award, and the grant of an Award will not be construed as giving a Participant the
right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time
to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan or any Award,
except as expressly provided in an Award Agreement.

 

(b) No Rights as Stockholder; Certificates. Subject
to the Award Agreement, no Participant or Designated Beneficiary will have any rights as a stockholder with respect to any Shares
to be distributed under an Award until becoming the record holder of such Shares. Notwithstanding any other provision of the Plan,
unless the Administrator otherwise determines or Applicable Laws require, the Company will not be required to deliver to any Participant
certificates evidencing Shares issued in connection with any Award and instead such Shares may be recorded in the books of the
Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on stock certificates
issued under the Plan that the Administrator deems necessary or appropriate to comply with Applicable Laws.

 

(c) Effective Date and Term of Plan. The Plan will become
effective on the date it is adopted by the Board. No Awards may be granted under the Plan after ten years from the earlier of
(i) the date the Board adopted the Plan or (ii) the date the Company’s stockholders approved the Plan, but Awards previously
granted may extend beyond that date in accordance with the Plan. If the Plan is not approved by the Company’s stockholders
in accordance with Section 422 of the Code, the Plan and any Awards granted under the Plan shall be null and void and of no force
and effect.

 

(d) Amendment of Plan. The Administrator may amend,
suspend or terminate the Plan at any time; provided that no amendment, other than an increase to the Overall Share Limit may materially
and adversely affect any Award outstanding at the time of such amendment without the affected Participant’s consent. Awards
outstanding at the time of any Plan suspension or termination will continue to be governed by the Plan and the Award Agreement,
as in effect before such suspension or termination. The Board will obtain stockholder approval of any Plan amendment to the extent
necessary to comply with Applicable Laws.

 

(e) Provisions for Foreign Participants. The Administrator
may modify Awards granted to Participants who are foreign nationals or employed outside the United States or establish subplans
or procedures under the Plan to address differences in laws, rules, regulations or customs of such foreign jurisdictions with
respect to tax, securities, currency, employee benefit or other matters.

 

(f) Section 409A.

 

    6

     

    

 

(i) General. The Company intends that all Awards be
structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences, interest, or penalties under
Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the Administrator may, without
a Participant’s consent, amend this Plan or Awards, adopt policies and procedures, or take any other actions (including
amendments, policies, procedures and retroactive actions) as are necessary or appropriate to preserve the intended tax treatment
of Awards, including any such actions intended to (A) exempt this Plan or any Award from Section 409A, or (B) comply with Section
409A, including regulations, guidance, compliance programs and other interpretative authority that may be issued after an Award’s
grant date. The Company makes no representations or warranties as to an Award’s tax treatment under Section 409A or otherwise.
The Company will have no obligation under this Section 10(f) or otherwise to avoid the taxes, penalties or interest under Section
409A with respect to any Award and will have no liability to any Participant or any other person if any Award, compensation or
other benefits under the Plan are determined to constitute noncompliant, “nonqualified deferred compensation” subject
to taxes, penalties or interest under Section 409A.

 

(ii) Separation from Service. If an Award constitutes
“nonqualified deferred compensation” under Section 409A, any payment or settlement of such Award upon a termination
of a Participant’s Service Provider relationship will, to the extent necessary to avoid taxes under Section 409A, be made
only upon the Participant’s “separation from service” (within the meaning of Section 409A), whether such “separation
from service” occurs upon or after the termination of the Participant’s Service Provider relationship. For purposes
of this Plan or any Award Agreement relating to any such payments or benefits, references to a “termination,” “termination
of employment” or like terms means a “separation from service.”

 

(iii) Payments to Specified Employees. Notwithstanding
any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified deferred compensation”
required to be made under an Award to a “specified employee” (as defined under Section 409A and as the Administrator
determines) due to his or her “separation from service” will, to the extent necessary to avoid taxes under Section
409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such “separation from service”
(or, if earlier, until the specified employee’s death) and will instead be paid (as set forth in the Award Agreement) on
the day immediately following such six-month period or as soon as administratively practicable thereafter (without interest).
Any payments of “nonqualified deferred compensation” under such Award payable more than six months following the Participant’s
“separation from service” will be paid at the time or times the payments are otherwise scheduled to be made.

 

(iv) Separate Payments. Each payment made under this
Plan shall be designated as a “separate payment” within the meaning of Section 409A.

 

(g) Limitations on Liability. Notwithstanding any other
provisions of the Plan, no individual acting as a director, officer, other employee or agent of the Company will be liable to
any Participant, former Participant, spouse, beneficiary, or any other person for any claim, loss, liability, or expense incurred
in connection with the Plan or any Award, and such individual will not be personally liable with respect to the Plan because of
any contract or other instrument executed in his or her capacity as an Administrator, director, officer, other employee or agent
of the Company. The Company will indemnify and hold harmless each director, officer, other employee and agent of the Company that
has been or will be granted or delegated any duty or power relating to the Plan’s administration or interpretation, against
any cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of a claim with the Administrator’s
approval) arising from any act or omission concerning this Plan unless arising from such person’s own fraud or bad faith.

 

(h) Lock-Up Period. The Company may, at the request
of any underwriter representative or otherwise, in connection with registering the offering of any Company securities under the
Securities Act, prohibit Participants from, directly or indirectly, selling or otherwise transferring any Shares or other Company
securities during a period of up to 180 days following the effective date of a Company registration statement filed under the
Securities Act, or such longer period as determined by the underwriter.

 

    7

     

    

 

(i) Data Privacy. As a condition for receiving any Award,
each Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal
data as described in this paragraph by and among the Company and its Affiliates exclusively for implementing, administering and
managing the Participant’s participation in the Plan. The Company and its Affiliates may hold certain personal information
about a Participant, including the Participant’s name, address and telephone number; birthdate; social security, insurance
number or other identification number; salary; nationality; job title(s); any Shares held in the Company or its Affiliates; and
Award details, to implement, manage and administer the Plan and Awards (the “Data”). The Company and
its Affiliates may transfer the Data amongst themselves as necessary to implement, administer and manage a Participant’s
participation in the Plan, and the Company and its Affiliates may transfer the Data to third parties assisting the Company with
Plan implementation, administration and management. These recipients may be located in the Participant’s country, or elsewhere,
and the Participant’s country may have different data privacy laws and protections than the recipients’ country. By
accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic
or other form, to implement, administer and manage the Participant’s participation in the Plan, including any required Data
transfer to a broker or other third party with whom the Company or the Participant may elect to deposit any Shares. The Data related
to a Participant will be held only as long as necessary to implement, administer, and manage the Participant’s participation
in the Plan. A Participant may, at any time, view the Data that the Company holds regarding such Participant, request additional
information about the storage and processing of the Data regarding such Participant, recommend any necessary corrections to the
Data regarding the Participant or refuse or withdraw the consents in this Section 10(i) in writing, without cost, by contacting
the local human resources representative. The Company may cancel Participant’s ability to participate in the Plan and, in
the Administrator’s discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws
the consents in this Section 10(i). For more information on the consequences of refusing or withdrawing consent, Participants
may contact their local human resources representative.

 

(j) Severability. If any portion of the Plan or any
action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts
of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded, and the illegal
or invalid action will be null and void.

 

(k) Governing Documents. If any contradiction occurs
between the Plan and any Award Agreement or other written agreement between a Participant and the Company (or any Affiliate) that
the Administrator has approved, the Plan will govern, unless it is expressly specified in such Award Agreement or other written
document that a specific provision of the Plan will not apply.

 

(l) Governing Law. The Plan and all Awards will be governed
by and interpreted in accordance with the laws of the State of Delaware, disregarding any state’s choice-of-law principles
requiring the application of a jurisdiction’s laws other than the State of Delaware.

 

(m) Claw-back Provisions. All Awards (including any
proceeds, gains or other economic benefit the Participant actually or constructively receives upon receipt or exercise of any
Award or the receipt or resale of any Shares underlying the Award) will be subject to any Company claw-back policy implemented
to the comply with Applicable Laws, including any claw-back policy adopted to comply with the Dodd-Frank Wall Street Reform and
Consumer Protection Act and any rules or regulations promulgated thereunder, as set forth in such claw-back policy or the Award
Agreement.

 

(n) Titles and Headings. The titles and headings of
the Sections in the Plan are for convenience of reference only and, if any conflict, the Plan’s text, rather than such titles
or headings, will control.

 

(o) Conformity to Securities Laws. Participant acknowledges
that the Plan is intended to conform to the extent necessary with Applicable Laws. Notwithstanding anything herein to the contrary,
the Plan and all Awards will be administered only in conformance with Applicable Laws. To the extent Applicable Laws permit, the
Plan and all Award Agreements will be deemed amended as necessary to conform to Applicable Laws.

 

(p) Relationship to Other Benefits. No payment under
the Plan will be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group
insurance, welfare or other benefit plan of the Company or any Affiliate except as expressly provided in writing in such other
plan or an agreement thereunder.

 

(q) Grant of Awards to Certain Eligible Service Providers.
The Company may provide through the establishment of a formal written policy (which shall be deemed a part of this Plan) or otherwise
for the method by which Common Stock or other securities of the Company may be issued and by which such Common Stock or other
securities and/or payment therefor may be exchanged or contributed, or may be returned upon any forfeiture of Common Stock or
other securities by the eligible Service Provider.

 

(r) Section 83(b) Election. No Participant may make
an election under Section 83(b) of the Code with respect to any Award under the Plan without the consent of the Administrator,
which the Administrator may grant (prospectively or retroactively) or withhold in its sole discretion. If, with the consent of
the Administrator, a Participant makes an election under Section 83(b) of the Code to be taxed with respect to the Restricted
Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Participant would
otherwise be taxable under Section 83(a) of the Code, the Participant shall be required to deliver a copy of such election to
the Company promptly after filing such election with the Internal Revenue Service.

 

11. Definitions. As used in the Plan,
the following words and phrases will have the following meanings:

 

(a) “Administrator” means the Board
or a Committee to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee.

 

(b) “Affiliate” means (a) Greenlane
Holdings, LLC, and (b) any Subsidiary.

 

    8

     

    

 

(c) “Applicable Accounting Standards”
means the U.S. Generally Accepted Accounting Principles, International Financial Reporting Standards or other accounting principles
or standards applicable to the Company’s financial statements under U.S. federal securities laws.

 

(d) “Applicable Laws” means the requirements
relating to the administration of equity incentive plans under U.S. federal and state securities, tax and other applicable laws,
rules and regulations, the applicable rules of any stock exchange or quotation system on which the Common Stock is listed or quoted
and the applicable laws and rules of any foreign country or other jurisdiction where Awards are granted.

 

(e) “Award” means, individually or
collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Other
Stock or Cash Based Awards.

 

(f) “Award Agreement” means a written
agreement evidencing an Award, which may be electronic, that contains such terms and conditions as the Administrator determines,
consistent with and subject to the terms and conditions of the Plan.

 

(g) “Board” means the Board of Directors
of the Company.

 

(h) “Change in Control” means and
includes each of the following:

 

(i) A transaction or series of transactions (other than an
offering of Common Stock to the general public through a registration statement filed with the Securities and Exchange Commission)
whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d)
and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, any employee benefit plan maintained by the
Company or any of its subsidiaries, any Significant Stockholder, or a “person” that, prior to such transaction, directly
or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the
total combined voting power of the Company’s securities outstanding immediately after such acquisition; or

 

(ii) During any period of two consecutive years, individuals
who, at the beginning of such period, constitute the Board together with any new Director(s) (other than a Director designated
by a person who shall have entered into an agreement with the Company to effect a transaction described in Section 11(h)(i) or
11(h)(iii)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote
of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of the two-year
period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority
thereof; or

 

(iii) The consummation by the Company (whether directly involving
the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization,
or business combination or (y) a sale or other disposition of all or substantially all of the Company’s assets in any single
transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other
than a transaction: (A) which results in the Company’s voting securities outstanding immediately before the transaction
continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person
that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially
all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor
Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s
outstanding voting securities immediately after the transaction, and (B) after which no person or group beneficially owns voting
securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or
group shall be treated for purposes of this Section 11(h)(iii)(B) as beneficially owning 50% or more of the combined voting power
of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction;
or

 

(iv) The consummation of a liquidation or dissolution of the
Company.

 

Notwithstanding the foregoing, if a Change in Control constitutes
a payment event with respect to any portion of an Award that provides for the deferral of compensation and is subject to Section
409A of the Code, the transaction or event described in subsection (i), (ii), (iii) or (iv) with respect to such Award (or portion
thereof) must also constitute a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5)
to the extent required by Section 409A.

 

The Administrator shall have full and final authority, which
shall be exercised in its sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the
above definition, and the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided
that any exercise of authority in conjunction with a determination of whether a Change in Control is a “change in control
event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.

 

(i) “Code” means the Internal Revenue
Code of 1986, as amended, and the regulations issued thereunder.

 

    9

     

    

 

(j) “Committee” means one or more
committees or subcommittees comprised of one or more Company directors or executive officers, to the extent Applicable Laws permit.
To the extent required to comply with the provisions of Rule 16b-3, it is intended that each member of the Committee will be,
at the time the Committee takes any action with respect to an Award that is subject to Rule 16b-3, a “non-employee director”
within the meaning of Rule 16b-3; however, a Committee member’s failure to qualify as a “non-employee director”
within the meaning of Rule 16b-3 will not invalidate any Award granted by the Committee that is otherwise validly granted under
the Plan.

 

(k) “Common Stock” means the Class
A common stock of the Company.

 

(l) “Company” means Greenlane Holdings,
Inc., a Delaware corporation, or any successor.

 

(m) “Consultant” means any person,
including any adviser, engaged by the Company or its parent or Affiliate to render services to such entity if the consultant or
adviser: (i) renders bona fide services to the Company; (ii) renders services not in connection with the offer or sale
of securities in a capital-raising transaction and does not directly or indirectly promote or maintain a market for the Company’s
securities; and (iii) is a natural person.

 

(n) “Designated Beneficiary” means
the beneficiary or beneficiaries the Participant designates, in a manner the Administrator determines, to receive amounts due
or exercise the Participant’s rights if the Participant dies or becomes incapacitated. Without a Participant’s effective
designation, “Designated Beneficiary” will mean the Participant’s estate.

 

(o) “Director” means a Board member.

 

(p) “Dividend Equivalents” means
a right granted to a Participant under Section 7(b) to receive the equivalent value (in cash or Shares) of dividends paid on Shares.

 

(q) “DRO” means a domestic relations
order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder.

 

(r) “Employee” means any employee
of the Company or its Affiliates.

 

(s) “Equity Restructuring” means,
as the Administrator determines, a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend,
stock split, spin-off or recapitalization through a large, nonrecurring cash dividend, affecting the Shares (or other Company
securities) or the share price of Common Stock (or other Company securities) and causing a change in the per share value of the
Common Stock underlying outstanding Awards.

 

(t) “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

(u) “Fair Market Value” means, as
of any date, the value of Common Stock determined as follows: (i) if the Common Stock is listed on any established stock exchange,
the closing sales price for such Common Stock as quoted on such exchange for such date, or if no sale occurred on such date, the
first market trading day immediately before such date during which a sale occurred, as reported in The Wall Street Journal
or another source the Administrator deems reliable; (ii) if the Common Stock is not traded on a stock exchange but is quoted
on a national market or other quotation system, the closing sales price on such date, or if no sales occurred on such date, then
on the date immediately before such date on which sales prices are reported, as reported in The Wall Street Journal or
another source the Administrator deems reliable; or (iii) without an established market for the Common Stock, the Administrator
will determine the Fair Market Value in its discretion.

 

Notwithstanding the foregoing, with respect to any Award granted
after the effectiveness of the Company’s registration statement relating to its initial public offering and prior to the
Public Trading Date, the Fair Market Value shall mean the initial public offering price of a Share as set forth in the Company’s
final prospectus relating to its initial public offering filed with the Securities and Exchange Commission.

 

(v) “Greater Than 10% Stockholder”
means an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting
power of all classes of stock of the Company or its subsidiary or parent corporation, as defined in Section 424(e) and (f) of
the Code, respectively.

 

(w) “Incentive Stock Option” means
an Option intended to qualify as an “incentive stock option” as defined in Section 422 of the Code.

 

(x) “Non-Qualified Stock Option”
means an Option, or portion thereof, not intended or not qualifying as an Incentive Stock Option.

 

(y) “Option” means an option to purchase
Shares.

 

(z) “Other Stock or Cash Based Awards”
means cash awards, awards of Shares, and other awards valued wholly or partially by referring to, or are otherwise denominated
in, based on or linked to, Shares or other property.

 

    10

     

    

 

(aa) “Overall Share Limit” means
the sum of (i) 5,000,000 Shares and (ii) an annual increase on the first day of each calendar year beginning January 1, 2020 and
ending on and including January 1, 2028, equal to the least of (A) 3,000,000 Shares, (B) 5% of the aggregate number of shares
of the Company’s Class A Common Stock and the Company’s Class B common stock plus one-third of the Company’s
Class C common stock outstanding on the final day of the immediately preceding calendar year and (C) such smaller number of Shares
as is determined by the Board.

 

(bb) “Participant” means a Service
Provider who has been granted an Award.

 

(cc) “Performance Criteria” means
mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals for a performance
period.

 

(dd) “Performance Goals” shall mean,
for a Performance Period, one or more goals established by the Administrator for the Performance Period based upon one or more
Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, Performance Goals may be
expressed in terms of overall Company performance or the performance of an Affiliate, division, operating or business unit, or
an individual.

 

(ee) “Performance Period” shall mean
one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the
attainment of one or more Performance Goals will be measured for the purpose of determining a Holder’s right to, and the
payment of, an Award.

 

(ff) “Plan” means this 2019 Equity
Incentive Plan.

 

(gg) “Public Trading Date” shall
mean the first date upon which Common Stock is listed upon notice of issuance on any securities exchange or designated upon notice
of issuance as a national market security on an interdealer quotation system.

 

(hh) “Restricted Stock” means Shares
awarded to a Participant under Section 6 subject to certain vesting conditions and other restrictions.

 

(ii) “Restricted Stock Unit” means
an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in cash or other consideration
determined by the Administrator to be of equal value as of such payment date, subject to certain vesting conditions and other
restrictions.

 

(jj) “Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act.

 

(kk) “Section 409A” means Section
409A of the Code and all regulations, guidance, compliance programs and other interpretative authority thereunder.

 

(ll) “Securities Act” means the Securities
Act of 1933, as amended.

 

(mm) “Service Provider” means an
Employee, Consultant or Director of the Company or any subsidiary of the Company.

 

(nn) “Shares” means shares of Common
Stock.

 

(oo) “Significant Stockholder” shall
mean any “person” or related “group” of “persons” (as such terms are used in Sections 13(d)
and 14(d)(2) of the Exchange Act) that, immediately following the issuance of Common Stock and Class B common stock to holders
of equity interests in Greenlane Holdings, LLC in connection with the Company’s initial public offering and prior to the
Public Trading Date, holds 10% or more of the total combined voting power of all classes of common stock of the Company (ignoring
for purposes of such calculation any Common Stock issued in connection with the Company’s initial public offering to persons
or entities other than the holders of equity interests in Greenlane Holdings, LLC).

 

(pp) “Stock Appreciation Right” means
a stock appreciation right granted under Section 5.

 

(qq) “Subsidiary” means any entity
(other than the Company or Greenlane Holdings, LLC), whether domestic or foreign, in an unbroken chain of entities beginning with
the Company or Greenlane Holdings, LLC if each of the entities other than the last entity in the unbroken chain beneficially owns,
at the time of the determination, securities or interests representing at least 50% of the total combined voting power of all
classes of securities or interests in one of the other entities in such chain.

 

(rr) “Termination of Service” means
the date the Participant ceases to be a Service Provider.

 

***

 

11

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