Document:

Exhibit 4.2

 

AGRIFORCE
GROWING SYSTEMS LTD.

 

(the
“COMPANY”)

AMENDED
AND RESTATED STOCK OPTION PLAN

 

Amended
by the directors of the Company effective September 8, 2020

 

Approved
by the shareholders of the Company on September 25, 2020

 

    	 

    	1

    

 

TABLE
OF CONTENTS

 

	 	Page
	 	 
	SECTION
    1 DEFINITIONS AND INTERPRETATION	3
	 	 	 
	1.1	Definitions	3
	1.2	Choice
    of Law	7
	1.3	Headings	7
	 	 	 
	SECTION
    2 GRANT OF OPTIONS	8
	 	 	 
	2.1	Grant
    of Options	8
	2.2	Record
    of Option Grants	8
	2.3	Effect
    of Plan	8
	 	 	 
	SECTION
    3 PURPOSE AND PARTICIPATION	9
	 	 	 
	3.1	Purpose
    of Plan	9
	3.2	Participation
    in Plan	9
	3.3	Limits
    on Option Grants	9
	3.4	Notification
    of Grant	9
	3.5	Copy
    of Plan	10
	3.6	Limitation
    on Service	10
	3.7	No
    Obligation to Exercise	10
	3.8	Agreement	10
	3.9	Notice	10
	3.10	Representation	10
	 	 	 
	SECTION
    4 NUMBER OF SHARES UNDER PLAN	11
	 	 	
	4.1	Board
    to Approve Issuance of Shares	11
	4.2	Number
    of Shares	11
	4.3	Fractional
    Shares	11
	 	 	 
	SECTION
    5 TERMS AND CONDITIONS OF OPTIONS	11
	 	 	 
	5.1	Exercise
    Period of Option	11
	5.2	Number
    of Shares Under Option	11
	5.3	Exercise
    Price of Option	12
	5.4	Incentive
    Stock Options.	12
	5.5	Termination
    of Option	13
	5.6	Vesting
    of Option and Acceleration	14
	5.7	Cashless exercise	14
	5.8	Additional
    Terms	14

 

    	 

    	2

    

 

	SECTION
    6 TRANSFERABILITY OF OPTIONS	14
	 	 	 
	6.1	Non-transferable	14
	6.2	Death
    of Option Holder	15
	6.3	Disability
    of Option Holder	15
	6.4	Disability
    and Death of Option Holder	15
	6.5	Vesting	15
	6.6	Deemed
    Non-Interruption of Engagement	15
	 	 	 
	SECTION
    7 EXERCISE OF OPTION	15
	 	 	 
	7.1	Exercise
    of Option	15
	7.2	Black
    Out Period	16
	7.3	Issue
    of Share Certificates	16
	7.4	No
    Rights as Shareholder	16
	7.5	Tax
    Withholding and Procedures	16
	 	 	 
	SECTION
    8 ADMINISTRATION	17
	 	 	 
	8.1	Board
    or Committee	17
	8.2	Powers
    of Committee	17
	8.3	Administration
    by Committee	18
	8.4	Interpretation	18
	 	 	 
	SECTION
    9 APPROVALS AND AMENDMENT	18
	 	 	 
	9.1	Shareholder
    Approval of Plan	18
	9.2	Amendment
    of Option or Plan	18
	 	 	 
	SECTION
    10 CONDITIONS PRECEDENT TO ISSUANCE OF OPTIONS AND SHARES	19
	 	 	 
	10.1	Compliance
    with Laws	19
	10.2	Regulatory
    Approvals	19
	10.3	Inability
    to Obtain Regulatory Approvals	19
	 	 	 
	SECTION
    11 ADJUSTMENTS AND TERMINATION	19
	 	 	 
	11.1	Termination
    of Plan	19
	11.2	No
    Grant During Suspension of Plan	19
	11.3	Alteration
    in Capital Structure	19
	11.4	Triggering
    Events	19
	11.5	Notice
    of Termination by Triggering Event	19
	11.6	Determinations
    to be Made By Committee	21

 

    	 

    	3

    

 

STOCK
OPTION PLAN

 

SECTION
1

DEFINITIONS
AND INTERPRETATION

 

	1.1	Definitions

 

As
used herein, unless there is something in the subject matter or context inconsistent therewith, the following terms shall have
the meanings set forth below:

 

	(a)	“Administrator”
    means such Executive or Employee of the Company as may be designated as Administrator by the Committee from time to time,
    or, if no such person is appointed, the Committee itself.
	 	 	 
	(b)	“Associate”
    means, where used to indicate a relationship with any person:
	 	 	 
	 	(i)	any
    relative, including the spouse of that person or a relative of that person’s spouse, where the relative has the same
    home as the person;
	 	 	 
	 	(ii)	any
    partner, other than a limited partner, of that person;
	 	 	 
	 	(iii)	any
    trust or estate in which such person has a substantial beneficial interest or as to which such person serves as trustee or
    in a similar capacity; and
	 	 	 
	 	(iv)	any
    corporation of which such person beneficially owns or controls, directly or indirectly, voting securities carrying more than
    10% of the voting rights attached to all outstanding voting securities of the corporation.
	 	 	 
	(c)	“Black-Out”
    means a restriction imposed by the Company on all or any of its directors, officers, employees, insiders or persons in a special
    relationship whereby they are to refrain from trading in the Company’s securities until the restriction has been lifted
    by the Company.
	 	 	 
	(d)	“Board”
    means the board of directors of the Company.
	 	 	 
	(e)	“Change
    of Control” means an occurrence when either:
	 	 	 
	 	(i)	a
    Person or Entity, other than the current “control person” of the Company (as that term is defined in the Securities
    Act), becomes a “control person” of the Company; or
	 	 	 
	 	(ii)	a
    majority of the directors elected at any annual or extraordinary general meeting of shareholders of the Company are not individuals
    nominated by the Company’s then-incumbent Board.
	 	 	 
	(f)	“Code”
    means the United States Internal Revenue Code of 1086, as amended, and any regulations thereunder.
	 	 	 
	(g)	“Committee”
    means a committee of the Board to which the responsibility of approving the grant of stock options has been delegated, or
    if no such committee is appointed, the Board itself.

 

    	 

    	4

    

 

	(h)	“Common
    Shares” means common shares of the Company.
	 	 	 
	(i)	“Company”
    means Agriforce Growing Systems Ltd.;
	 	 	 
	(j)	“Consultant”
    means an individual who:
	 	 	 
	 	(i)	is
    engaged to provide, on an ongoing bona fide basis, consulting, technical, management or other services to the Company or any
    Subsidiary other than services provided in relation to a “distribution” (as that term is described in the Securities
    Act);
	 	 	 
	 	(ii)	provides
    the services under a written contract between the Company or any Subsidiary and the individual or a Consultant Entity (as
    defined in clause (i)(v) below);
	 	 	 
	 	(iii)	in
    the reasonable opinion of the Company, spends or will spend a significant amount of time and attention on the affairs and
    business of the Company or any Subsidiary; and
	 	 	 
	 	(iv)	has
    a relationship with the Company or any Subsidiary that enables the individual to be knowledgeable about the business and affairs
    of the Company or is otherwise permitted by applicable Regulatory Rules to be granted Options as a Consultant or as an equivalent
    thereof,
	 	 	 
	 	and
    includes:
	 	 	 
	 	(v)	a
    corporation of which the individual is an employee or shareholder or a partnership of which the individual is an employee
    or partner (a “Consultant Entity”); or
	 	 	 
	 	(vi)	an
    RRSP or RRIF established by or for the individual under which he or she is the beneficiary.
	 	 	 
	(k)	“Disability”
    means a medically determinable physical or mental impairment expected to result in death or to last for a continuous period
    of not less than 12 months, and which causes an individual to be unable to engage in any substantial gainful activity, or
    any other condition of impairment that the Committee, acting reasonably, determines constitutes a disability.
	 	 	 
	(l)	“Employee”
    means:
	 	 	 
	 	(i)	an
    individual who works full-time or part-time for the Company or any Subsidiary and such other individual as may, from time
    to time, be permitted by applicable Regulatory Rules to be granted Options as an employee or as an equivalent thereto; or
	 	 	 
	 	(ii)	an
    individual who works for the Company or any Subsidiary either full-time or on a continuing and regular basis for a minimum
    amount of time per week providing services normally provided by an employee and who is subject to the same control and direction
    by the Company or any Subsidiary over the details and methods of work as an employee of the Company or any Subsidiary, but
    for whom income tax deductions are not made at source,

 

    	 

    	5

    

 

	 	and
    includes:
	 	 	 
	 	(iii)	a
    corporation wholly-owned by such individual; and
	 	 	 
	 	(iv)	any
    RRSP or RRIF established by or for such individual under which he or she is the beneficiary.
	 	 	 
	(m)	“Exchange”
    means the stock exchange upon which the Common Shares principally trade.
	 	 	 
	(n)	“Executive”
    means an individual who is a director or officer of the Company or a Subsidiary, and includes:
	 	 	 
	 	(i)	a
    corporation wholly-owned by such individual; and
	 	 	 
	 	(ii)	any
    RRSP or RRIF established by or for such individual under which he or she is the beneficiary.
	 	 	 
	(o)	“Exercise
    Notice” means the written notice of the exercise of an Option, in the form set out as Schedule B hereto, duly executed
    by the Option Holder.
	 	 	 
	(p)	“Exercise
    Period” means the period during which a particular Option may be exercised and is the period from and including
    the Grant Date through to and including the Expiry Time on the Expiry Date provided, however, that no Option can be exercised
    unless and until all necessary Regulatory Approvals have been obtained.
	 	 	 
	(q)	“Exercise
    Price” means the price at which an Option is exercisable as determined in accordance with section 5.3.
	 	 	 
	(r)	“Expiry
    Date” means the date the Option expires as set out in the Option Certificate or as otherwise determined in accordance
    with sections 5.4, 6.2, 6.3, 6.4 or 11.4.
	 	 	 
	(s)	“Expiry
    Time” means the time the Option expires on the Expiry Date, which is 4:00 p.m. local time in Vancouver, British
    Columbia, Canada on the Expiry Date.
	 	 	 
	(t)	“Grant
    Date” means the date on which the Committee grants a particular Option, which is the date the Option comes into
    effect provided however that no Option can be exercised unless and until all necessary Regulatory Approvals have been obtained.
	 	 	 
	(u)	“Incentive
    Stock Option” means an Option that is labelled or described as an Incentive Stock Option and which qualifies as
    an Incentive Stock Option within the meaning of Section 422(b) of the Code.
	 	 	 
	(v)	“Insider”
    means an insider as that term is defined in the Securities Act.
	 	 	 
	(w)	“Market
    Value” means the market value of the Common Shares as determined in accordance with section 5.3.
	 	 	 
	(x)	“Non-Statutory
    Stock Option” means an Option granted to a Holder who is a resident of the United States which is not intended to
    be or does not qualify as an Incentive Stock Option.

 

    	 

    	6

    

 

	(y)	“Option”
    means a share purchase option granted pursuant to this Plan entitling the Option Holder to purchase Shares of the Company,
    and includes Incentive Stock Options and Non-Statutory Stock Options.
	 	 	 
	(z)	“Option
    Certificate” means the certificate, in substantially the form set out as Schedule A hereto, evidencing the Option.
	 	 	 
	(aa)	“Option
    Holder” means a Person or Entity who holds an unexercised and unexpired Option or, where applicable, the Personal
    Representative of such person.
	 	 	 
	(bb)	“Outstanding
    Issue” means the aggregate number of Common Shares and Series A Preferred Shares, taken together, that are outstanding
    (on a non-diluted basis) immediately prior to the Common Share issuance or grant of Option in question.
	 	 	 
	(cc)	“Person
    or Entity” means an individual, natural person, corporation, government or political subdivision or agency of a
    government, and where two or more persons act as a partnership, limited partnership, syndicate or other group for the purpose
    of acquiring, holding or disposing of securities of an issuer, such partnership, limited partnership, syndicate or group shall
    be deemed to be a Person or Entity.
	 	 	 
	(dd)	“Personal
    Representative” means:
	 	 	 
	 	(i)	in
    the case of a deceased Option Holder, the executor or administrator of the deceased duly appointed by a court or public authority
    having jurisdiction to do so; and
	 	 	 
	 	(ii)	in
    the case of an Option Holder who for any reason is unable to manage his or her affairs, the person entitled by law to act
    on behalf of such Option Holder.
	 	 	 
	(ee)	“Plan”
    means this Common Share stock option plan as from time to time amended.
	 	 	 
	(ff)	“Pre-Existing
    Options” has the meaning ascribed thereto in section 4.1.
	 	 	 
	(gg)	“Regulatory
    Approvals” means any necessary approvals of the Regulatory Authorities as may be required from time to time for
    the implementation, operation or amendment of this Plan or for the Options granted from time to time hereunder.
	 	 	 
	(hh)	“Regulatory
    Authorities” means all organized trading facilities on which the Shares are listed, and all securities commissions
    or similar securities regulatory bodies having jurisdiction over the Company, this Plan or the Options granted from time to
    time hereunder.
	 	 	 
	(ii)	“Regulatory
    Rules” means all corporate and securities laws, regulations, rules, policies, notices, instruments and other orders
    of any kind whatsoever which may, from time to time, apply to the implementation, operation or amendment of this Plan or the
    Options granted from time to time hereunder including, without limitation, those of the applicable Regulatory Authorities.
	 	 	 
	(jj)	“Securities
    Act” means the Securities Act (British Columbia), RSBC 1996, c.418 as from time to time amended.

 

    	 

    	7

    

 

	(kk)	“Share”
    or “Shares” means, as the case may be, one or more Common Shares without par value in the capital stock
    of the Company.
	 	 	 
	(ll)	“Subsidiary”
    means a wholly-owned or controlled subsidiary corporation of the Company.
	 	 	 
	(mm)	“Ten
    Percent Shareholder Participant” means a Holder to whom an Incentive Stock Option is granted pursuant to the provisions
    of the Plan who is, on the date of the grant, the owner of stock (as determined under Section 424(d) of the Code) possessing
    more than 10% of the total combined voting power of all classes of stock of the Company or its parent, if any, or its subsidiary
    corporations (as defined in Code Section 424(e)).
	 	 	 
	(nn)	“Triggering
    Event” means:
	 	 	 
	 	(i)	the
    proposed dissolution, liquidation or wind-up of the Company;
	 	 	 
	 	(ii)	a
    proposed merger, amalgamation, arrangement or reorganization of the Company with one or more corporations as a result of which,
    immediately following such event, the shareholders of the Company as a group, as they were immediately prior to such event,
    are expected to hold less than a majority of the outstanding capital stock of the surviving corporation;
	 	 	 
	 	(iii)	the
    proposed acquisition of all or substantially all of the issued and outstanding shares of the Company by one or more Persons
    or Entities;
	 	 	 
	 	(iv)	a
    proposed Change of Control of the Company;
	 	 	 
	 	(v)	the
    proposed sale or other disposition of all or substantially all of the assets of the Company; or
	 	 	 
	 	(vi)	a
    proposed material alteration of the capital structure of the Company which, in the opinion of the Committee, is of such a
    nature that it is not practical or feasible to make adjustments to this Plan or to the Options granted hereunder to permit
    the Plan and Options granted hereunder to stay in effect.
	 	 	 
	(oo)	“Vest”
    or “Vesting” means that a portion of the Option granted to the Option Holder which is available to be exercised
    by the Option Holder at any time and from time to time.

 

1.2
Choice of Law

 

The
Plan is established under, and the provisions of the Plan shall be subject to and interpreted and construed solely in accordance
with, the laws of the Province of British Columbia and the laws of Canada applicable therein without giving effect to the conflicts
of laws principles thereof and without reference to the laws of any other jurisdiction. The Company and each Option Holder hereby
attorn to the jurisdiction of the Courts of British Columbia.

 

1.3
Headings

 

The
headings used herein are for convenience only and are not to affect the interpretation of the Plan.

 

    	 

    	8

    

 

SECTION
2

GRANT
OF OPTIONS

 

2.1
Grant of Options

 

The
Committee shall, from time to time in its sole discretion, grant Options to such Persons or Entities and on such terms and conditions
as are permitted under this Plan.

 

2.2
Record of Option Grants

 

The
Committee shall be responsible to maintain a record of all Options granted under this Plan and such record shall contain, in respect
of each Option:

 

	(a)	the
    name and address of the Option Holder;
	 	 
	(b)	the
    category (Executive, Employee or Consultant) under which the Option was granted to him, her or it;
	 	 
	(c)	the
    designation of Options as Incentive Stock Options or Non-Statutory Options, as applicable;
	 	 
	(d)	the
    Grant Date and Expiry Date of the Option;
	 	 
	(e)	the
    number of Shares which may be acquired on the exercise of the Option and the Exercise Price of the Option;
	 	 
	(f)	the
    vesting and other additional terms, if any, attached to the Option; and
	 	 
	(g)	the
    particulars of each and every time the Option is exercised.

 

2.3
Effect of Plan

 

All
Options granted pursuant to the Plan shall be subject to the terms and conditions of the Plan notwithstanding the fact that the
Option Certificates issued in respect thereof do not expressly contain such terms and conditions but instead incorporate them
by reference to the Plan. The Option Certificates will be issued for convenience only and in the case of a dispute with regard
to any matter in respect thereof, the provisions of the Plan and the records of the Company shall prevail over the terms and conditions
in the Option Certificate, save and except as noted below. Each Option will also be subject to, in addition to the provisions
of the Plan, the terms and conditions contained in the schedules, if any, attached to the Option Certificate for such Option.
Should the terms and conditions contained in such schedules be inconsistent with the provisions of the Plan, such terms and conditions
will supersede the provisions of the Plan.

 

    	 

    	9

    

 

SECTION
3

PURPOSE
AND PARTICIPATION

 

3.1
Purpose of Plan

 

The
purpose of the Plan is to provide the Company with a share-related mechanism to attract, retain and motivate qualified Executives,
Employees and Consultants to contribute toward the long term goals of the Company, and to encourage such individuals to acquire
Shares of the Company as long term investments.

 

3.2
Participation in Plan

 

The
Committee shall, from time to time and in its sole discretion, determine those Executives, Employees and Consultants to whom Options
are to be granted.

 

3.3
Limits on Option Grants

 

The
following limitations shall apply to the Plan and all Options thereunder:

 

	(a)	the
    maximum number of Options which may be granted to any one Option Holder under the Plan within any 12 month period shall be
    5% of the Outstanding Issue (unless the Company has obtained disinterested shareholder approval if required by Regulatory
    Rules);
	 	 
	(b)	if
    required by Regulatory Rules, disinterested shareholder approval is required to the grant to Insiders, within a 12 month period,
    of a number of Options which, when added to the number of outstanding incentive stock options granted to Insiders within the
    previous 12 months, exceed 10% of the Outstanding Issue;
	 	 
	(c)	with
    respect to section 5.1, the Expiry Date of an Option shall be no later than the tenth anniversary of the Grant Date of such
    Option;
	 	 
	(d)	the
    maximum number of Options which may be granted to any one Consultant within any 12 month period must not exceed 2% of the
    Outstanding Issue; and
	 	 
	(e)	the
    maximum number of Options which may be granted within any 12 month period to Employees or Consultants engaged in investor
    relations activities must not exceed 2% of the Outstanding Issue and such options must vest in stages over 12 months with
    no more than 25% of the Options vesting in any three month period, and such limitation will not be an amendment to this Plan
    requiring the Option Holders consent under section 9.2 of this Plan.

 

3.4
Notification of Grant

 

Following
the granting of an Option, the Administrator shall, within a reasonable period of time, notify the Option Holder in writing of
the grant and shall enclose with such notice the Option Certificate representing the Option so granted. In no case will the Company
be required to deliver an Option Certificate to an Option Holder until such time as the Company has obtained all necessary Regulatory
Approvals for the grant of the Option.

 

    	 

    	10

    

 

3.5
Copy of Plan

 

Each
Option Holder, concurrently with the notice of the grant of the Option, shall be provided with a copy of the Plan. A copy of any
amendment to the Plan shall be promptly provided by the Administrator to each Option Holder.

 

3.6
Limitation on Service

 

The
Plan does not give any Option Holder that is an Executive the right to serve or continue to serve as an Executive of the Company
or any Subsidiary, nor does it give any Option Holder that is an Employee or Consultant the right to be or to continue to be employed
or engaged by the Company or any Subsidiary.

 

3.7
No Obligation to Exercise

 

Option
Holders shall be under no obligation to exercise Options.

 

3.8
Agreement

 

The
Company and every Option Holder granted an Option hereunder shall be bound by and subject to the terms and conditions of this
Plan. By accepting an Option granted hereunder, the Option Holder has expressly agreed with the Company to be bound by the terms
and conditions of this Plan. In the event that the Option Holder receives his, her or its Options pursuant to an oral or written
agreement with the Company or a Subsidiary, whether such agreement is an employment agreement, consulting agreement or any other
kind of agreement of any kind whatsoever, the Option Holder acknowledges that in the event of any inconsistency between the terms
relating to the grant of such Options in that agreement and the terms attaching to the Options as provided for in this Plan, the
terms provided for in this Plan shall prevail and the other agreement shall be deemed to have been amended accordingly.

 

3.9
Notice

 

Any
notice, delivery or other correspondence of any kind whatsoever to be provided by the Company to an Option Holder will be deemed
to have been provided if provided to the last home address, fax number or email address of the Option Holder in the records of
the Company and the Company shall be under no obligation to confirm receipt or delivery.

 

3.10
Representation

 

As
a condition precedent to the issuance of an Option, the Company must be able to represent to the Exchange as of the Grant Date
that the Option Holder is a bona fide Executive, Employee or Consultant of the Company or any Subsidiary.

 

    	 

    	11

    

 

SECTION
4

NUMBER
OF SHARES UNDER PLAN

 

4.1
Board to Approve Issuance of Shares

 

The
Committee shall approve by resolution the issuance of all Shares to be issued to Option Holders upon the exercise of Options,
such authorization to be deemed effective as of the Grant Date of such Options regardless of when it is actually done. The Committee
shall be entitled to approve the issuance of Shares in advance of the Grant Date, retroactively after the Grant Date, or by a
general approval of this Plan.

 

4.2
Number of Shares

 

Subject
to adjustment as provided for herein and to Section 12, the number of Shares which will be available for purchase pursuant to
Options granted pursuant to this Plan will not exceed 15% of the Outstanding Issue. If any Option expires or otherwise terminates
for any reason without having been exercised in full, the number of Shares in respect to that Option will be available for subsequent
issuance. The Plan is an “evergreen” plan, as Shares of the Company covered by Options which have been exercised will
be available for subsequent grant under the Plan and the number of Options that may be granted under the Plan increases if the
total Outstanding Issue of the Company increases. For greater certainty, if an outstanding Option is exercised or alternatively
expires or is forfeited, surrendered, cancelled or otherwise terminated or lapses for any reason without having been exercised
or settled in full, the Shares covered by such Option, if any, will again be available for issuance under the Plan.

 

4.3
Fractional Shares

 

No
fractional shares shall be issued upon the exercise of any Option and, if as a result of any adjustment, an Option Holder would
become entitled to a fractional share, such Option Holder shall have the right to purchase only the next lowest whole number of
Shares and no payment or other adjustment will be made for the fractional interest.

 

SECTION
5

TERMS
AND CONDITIONS OF OPTIONS

 

5.1
Exercise Period of Option

 

Subject
to sections 5.4, 6.2, 6.3, 6.4 and 11.4, the Grant Date and the Expiry Date of an Option shall be the dates fixed by the Committee
at the time the Option is granted and shall be set out in the Option Certificate issued in respect of such Option. No Incentive
Stock Option may be granted after ten (10) years from the date of this Plan. The term and expiry date of any Incentive Stock Option
granted to a Ten Percent Shareholder Participant shall not exceed five (5) years from Grant Date of such Incentive Stock Option.

 

5.2
Number of Shares Under Option

 

The
number of Shares which may be purchased pursuant to an Option shall be determined by the Committee and shall be set out in the
Option Certificate issued in respect of the Option.

 

    	 

    	12

    

 

5.3
Exercise Price of Option

 

The
Exercise Price at which an Option Holder may purchase a Share upon the exercise of an Option shall be determined by the Committee
and shall be set out in the Option Certificate issued in respect of the Option. The Exercise Price shall not be less than the
Market Value of the Shares as of the Grant Date. The Market Value of the Shares for a particular Grant Date shall be determined
as follows:

 

	(a)	for
    each organized trading facility on which the Shares are listed, Market Value will be the closing trading price of the Shares
    on the day immediately preceding the Grant Date, and may be less than this price if it is within the discounts permitted by
    the applicable Regulatory Authorities;
	 	 
	(b)	if
    the Company’s Shares are listed on more than one organized trading facility, the Market Value shall be the Market Value
    as determined in accordance with subparagraph (a) above for the primary organized trading facility on which the Shares are
    listed, as determined by the Committee, subject to any adjustments as may be required to secure all necessary Regulatory Approvals;
	 	 
	(c)	if
    the Company’s Shares are listed on one or more organized trading facilities but have not traded during the ten trading
    days immediately preceding the Grant Date, then the Market Value will be, subject to any adjustments as may be required to
    secure all necessary Regulatory Approvals, such value as is determined by the Committee; and
	 	 
	(d)	if
    the Company’s Shares are not listed on any organized trading facility, then the Market Value will be, subject to any
    adjustments as may be required to secure all necessary Regulatory Approvals, such value as is determined by the Committee
    to be the fair value of the Shares, taking into consideration all factors that the Committee deems appropriate, including,
    without limitation, recent sale and offer prices of the Shares in private transactions negotiated at arms’ length. Notwithstanding
    anything else contained herein, in no case will the Market Value be less than the minimum prescribed by each of the organized
    trading facilities that would apply to the Company on the Grant Date in question.

 

Notwithstanding
the foregoing, the Exercise Price of Shares subject to an Incentive Stock Option granted under the Plan to a Ten Percent Shareholder
Participant shall be not less than 110% of the fair market value of the Shares on the Grant Date as determined in good faith by
the Committee at the Grant Date.

 

5.4
Incentive Stock Options.

 

Incentive
Stock Options may only be granted to Employees who are resident in the United States. To the extent that Options designated as
Incentive Stock Options become exercisable by a Holder for the first time during any calendar year for Shares having a fair market
value greater than US$100,000, the portion of such Options which exceeds such amount shall not be treated as Incentive Stock Options
but instead shall be treated as Non-Statutory Stock Options. For the purposes of this Section 5.4, Options designated as Incentive
Stock Options shall be taken into account in the order in which they were granted, and the fair market value of Shares shall be
determined as of the Grant Date of the Option with respect to such Shares. If the Code is amended to provide for a different limitation
than that set forth in this Section 5.4, such different limitation shall be deemed incorporated herein effective as of the date
and with respect to such Options as may be required or permitted by such amendment to the Code. If an Option is treated as a Non-Statutory
Option in part by reason of the limitation set forth in this Section 5.4, the Holder may designate which portion of such Option
the Holder is exercising at any given time. In the absence of such designation, the Holder shall be deemed to have exercised the
Incentive Stock Option portion of the Option first. The Company shall have no liability to a Holder, or any other party, if any
Option (or any part thereof) intended to be an Incentive Stock Option is not an Incentive Stock Option.

 

    	 

    	13

    

 

5.5
Termination of Option

 

Subject
to such other terms or conditions that may be attached to Options granted hereunder, an Option Holder may exercise an Option in
whole or in part at any time and from time to time during the Exercise Period. Any Option or part thereof not exercised within
the Exercise Period shall terminate and become null, void and of no effect as of the Expiry Time on the Expiry Date. The Expiry
Date of an Option shall be the earlier of the date so fixed by the Committee at the time the Option is granted as set out in the
Option Certificate and the date established, if applicable, in paragraphs (a) or (b) below or sections 6.2, 6.3, 6.4, or 11.4
of this Plan:

 

	(a)	Ceasing
    to Hold Office - In the event that the Option Holder holds his or her Option as an Executive and such Option Holder ceases
    to hold such position other than by reason of death or Disability, the Expiry Date of the Option shall be, unless otherwise
    determined by the Committee and expressly provided for in the Option Certificate, the 30th day following the date the Option
    Holder ceases to hold such position unless the Option Holder ceases to hold such position as a result of:
	 	 	 
	 	(i)	ceasing
    to meet the qualifications set forth in the corporate legislation applicable to the Company;
	 	 	 
	 	(ii)	a
    special resolution having been passed by the shareholders of the Company removing the Option Holder as a director of the Company
    or any Subsidiary; or
	 	 	 
	 	(iii)	an
    order made by any Regulatory Authority having jurisdiction to so order,
	 	 	 
	 	in
    which case the Expiry Date shall be the date the Option Holder ceases to hold such position; OR
	 	 	 
	(b)	Ceasing
    to be Employed or Engaged - In the event that the Option Holder holds his or her Option as an Employee or Consultant and
    such Option Holder ceases to hold such position other than by reason of death or Disability, the Expiry Date of the Option
    shall be, unless otherwise determined by the Committee and expressly provided for in the Option Certificate, the 30th day
    following the date the Option Holder ceases to hold such position, unless the Option Holder ceases to hold such position as
    a result of:
	 	 	 
	 	(i)	termination
    for cause;
	 	 	 
	 	(ii)	resigning
    his or her position; or
	 	 	 
	 	(iii)	an
    order made by any Regulatory Authority having jurisdiction to so order,
	 	 	 
	 	in
    which case the Expiry Date shall be the date the Option Holder ceases to hold such position.

 

    	 

    	14

    

 

In
the event that the Option Holder ceases to hold the position of Executive, Employee or Consultant for which the Option was originally
granted, but comes to hold a different position as an Executive, Employee or Consultant prior to the expiry of the Option, the
Committee may, in its sole discretion, choose to permit the Option to stay in place for that Option Holder with such Option then
to be treated as being held by that Option Holder in his or her new position and such will not be considered to be an amendment
to the Option in question requiring the consent of the Option Holder under section 9.2 of this Plan. Notwithstanding anything
else contained herein, in no case will an Option be exercisable later than the Expiry Date of the Option.

 

5.6
Vesting of Option and Acceleration

 

The
vesting schedule for an Option, if any, shall be determined by the Committee and shall be set out in the Option Certificate issued
in respect of the Option. The Committee may elect, at any time, to accelerate the vesting schedule of one or more Options including,
without limitation, on a Triggering Event, and such acceleration will not be considered an amendment to the Option in question
requiring the consent of the Option Holder under section 9.2 of this Plan.

 

5.7
Cashless Exercise

 

The
Committee may permit cashless exercises of any Options granted under this Plan, subject to applicable stock exchange rules, in
the manner contemplated in the Option Certificate attached to this Plan.

 

5.8
Additional Terms

 

Subject
to all applicable Regulatory Rules and all necessary Regulatory Approvals, the Committee may attach additional terms and conditions
to the grant of a particular Option, such terms and conditions to be set out in a schedule attached to the Option Certificate.
The Option Certificates will be issued for convenience only, and in the case of a dispute with regard to any matter in respect
thereof, the provisions of this Plan and the records of the Company shall prevail over the terms and conditions in the Option
Certificate, save and except as noted below. Each Option will also be subject to, in addition to the provisions of the Plan, the
terms and conditions contained in the schedules, if any, attached to the Option Certificate for such Option. Should the terms
and conditions contained in such schedules be inconsistent with the provisions of the Plan, such terms and conditions will supersede
the provisions of the Plan.

 

SECTION
6

TRANSFERABILITY
OF OPTIONS

 

6.1
Non-transferable

 

An
Incentive Stock Option shall not be assignable or transferable by any Holder and, subject to section 6.2 hereof, may be exercised
during the life of the Holder only by the Holder. An Option other than an Incentive Stock Option are non-assignable and non-transferable,
except as provided otherwise in this section 6.

 

    	 

    	15

    

 

6.2
Death of Option Holder

 

In
the event of the Option Holder’s death, any Options held by such Option Holder shall pass to the Personal Representative
of the Option Holder and shall be exercisable by the Personal Representative on or before the date which is the earlier of one
year following the date of death and the applicable Expiry Date.

 

6.3
Disability of Option Holder

 

If
the employment or engagement of an Option Holder as an Employee or Consultant or the position of an Option Holder as a director
or officer of the Company or a Subsidiary is terminated by the Company by reason of such Option Holder’s Disability, any
Options held by such Option Holder shall be exercisable by such Option Holder or by the Personal Representative on or before the
date which is the earlier of one year following the termination of employment, engagement or appointment as a director or officer
and the applicable Expiry Date.

 

6.4
Disability and Death of Option Holder

 

If
an Option Holder has ceased to be employed, engaged or appointed as a director or officer of the Company or a Subsidiary by reason
of such Option Holder’s Disability and such Option Holder dies within one year after the termination of such engagement,
any Options held by such Option Holder that could have been exercised immediately prior to his or her death shall pass to the
Personal Representative of such Option Holder and shall be exercisable by the Personal Representative on or before the date which
is the earlier of one year following the death of such Option Holder and the applicable Expiry Date.

 

6.5
Vesting

 

Unless
the Committee determines otherwise, Options held by or exercisable by a Personal Representative shall, during the period prior
to their termination, continue to vest in accordance with any vesting schedule to which such Options are subject.

 

6.6
Deemed Non-Interruption of Engagement

 

Employment
or engagement by the Company shall be deemed to continue intact during any military or sick leave or other bona fide leave
of absence if the period of such leave does not exceed 90 days or, if longer, for so long as the Option Holder’s right to
re-employment or re-engagement by the Company is guaranteed either by statute or by contract. If the period of such leave exceeds
90 days and the Option Holder’s re-employment or re-engagement is not so guaranteed, then his or her employment or engagement
shall be deemed to have terminated on the ninety-first day of such leave.

 

SECTION
7

EXERCISE
OF OPTION

 

7.1
Exercise of Option

 

An
Option may be exercised only by the Option Holder or the Personal Representative of any Option Holder. An Option Holder or the
Personal Representative of any Option Holder may exercise an Option in whole or in part at any time and from time to time during
the Exercise Period up to the Expiry Time on the Expiry Date by delivering to the Administrator the required Exercise Notice,
the applicable Option Certificate and a certified cheque or bank draft or wire transfer payable to the Company or its legal counsel
in an amount equal to the aggregate Exercise Price of the Shares then being purchased pursuant to the exercise of the Option.
Notwithstanding anything else contained herein, Options may not be exercised during a Black-Out unless the Committee determines
otherwise.

 

    	 

    	16

    

 

7.2
Black Out Period

 

Notwithstanding
the foregoing, except in the case of Incentive Stock Options, if an Option expires, terminates or is cancelled (other than an
expiry, termination or cancellation pursuant to section 5.5(a)(i)(ii) or (iii) or section 5.5(b)(i)(ii) or (iii) above) within
or immediately after a Black Out, the Holder may elect for the term of such Option to be extended to the date which is ten (10)
business days after the last day of the Black Out; provided, that, the expiration date as extended by this section 7.2 will not
in any event be beyond the later of: (i) December 31 of the calendar year in which the Option was otherwise due to expire; and
(ii) the 15th day of the third month following the month in which the Option was otherwise due to expire.

 

7.3
Issue of Share Certificates

 

As
soon as reasonably practicable following the receipt of the Exercise Notice, the Administrator shall cause to be delivered to
the Option Holder a certificate for the Shares so purchased. If the number of Shares so purchased is less than the number of Shares
subject to the Option Certificate surrendered, the Administrator shall also provide a new Option Certificate for the balance of
Shares available under the Option to the Option Holder concurrent with delivery of the Share Certificate.

 

7.4
No Rights as Shareholder

 

Until
the date of the issuance of the certificate for the Shares purchased pursuant to the exercise of an Option, no right to vote or
receive dividends or any other rights as a shareholder shall exist with respect to such Shares, notwithstanding the exercise of
the Option, unless the Committee determines otherwise. In the event of any dispute over the date of the issuance of the certificates,
the decision of the Committee shall be final, conclusive and binding.

 

7.5
Tax Withholding and Procedures

 

Notwithstanding
anything else contained in this Plan, the Company may, from time to time, implement such procedures and conditions as it determines
appropriate with respect to the withholding and remittance of taxes imposed under applicable law, or the funding of related amounts
for which liability may arise under such applicable law. Without limiting the generality of the foregoing, an Option Holder who
wishes to exercise an Option must, in addition to following the procedures set out in 7.1 and elsewhere in this Plan, and as a
condition of exercise:

 

	(a)	deliver
    a certified cheque, wire transfer or bank draft payable to the Company for the amount determined by the Company to be the
    appropriate amount on account of such taxes or related amounts;
	 	 
	(b)	otherwise
    ensure, in a manner acceptable to the Company (if at all) in its sole and unfettered discretion, that the amount will be securely
    funded; or
	 	 
	(c)	and
    must in all other respects follow any related procedures and conditions imposed by the Company.

 

    	 

    	17

    

 

SECTION
8

ADMINISTRATION

 

8.1
Board or Committee

 

The
Plan shall be administered by the Administrator with oversight by the Committee.

 

8.2
Powers of Committee

 

The
Committee shall have the authority to do the following:

 

	(a)	oversee
    the administration of the Plan in accordance with its terms;
	 	 	 
	(b)	appoint
    or replace the Administrator from time to time;
	 	 	 
	(c)	determine
    all questions arising in connection with the administration, interpretation and application of the Plan, including all questions
    relating to the Market Value;
	 	 	 
	(d)	correct
    any defect, supply any information or reconcile any inconsistency in the Plan in such manner and to such extent as shall be
    deemed necessary or advisable to carry out the purposes of the Plan;
	 	 	 
	(e)	prescribe,
    amend, and rescind rules and regulations relating to the administration of the Plan;
	 	 	 
	(f)	determine
    the duration and purposes of leaves of absence from employment or engagement by the Company which may be granted to Option
    Holders without constituting a termination of employment or engagement for purposes of the Plan;
	 	 	 
	(g)	do
    the following with respect to the granting of Options:
	 	 	 
	 	(i)	determine
    the Executives, Employees or Consultants to whom Options shall be granted, based on the eligibility criteria set out in this
    Plan;
	 	 	 
	 	(ii)	determine
    the terms of the Option to be granted to an Option Holder including, without limitation, the Grant Date, Expiry Date, Exercise
    Price and vesting schedule (which need not be identical with the terms of any other Option);
	 	 	 
	 	(iii)	subject
    to any necessary Regulatory Approvals and section 9.2, amend the terms of any Options;
	 	 	 
	 	(iv)	determine
    when Options shall be granted;
	 	 	 
	 	(v)	determine
    the number of Shares subject to each Option; and
	 	 	 
	 	(vi)	to
    designate Options as Incentive Stock Options or Non-Statutory Options, as applicable;

 

    	 

    	18

    

 

	(h)	accelerate
    the vesting schedule of any Option previously granted; and
	 	 	 
	(i)	make
    all other determinations necessary or advisable, in its sole discretion, for the administration of the Plan.

 

8.3
Administration by Committee

 

All
determinations made by the Committee in good faith shall be final, conclusive and binding upon all persons. The Committee shall
have all powers necessary or appropriate to accomplish its duties under this Plan.

 

8.4
Interpretation

 

The
interpretation by the Committee of any of the provisions of the Plan and any determination by it pursuant thereto shall be final,
conclusive and binding and shall not be subject to dispute by any Option Holder. No member of the Committee or any person acting
pursuant to authority delegated by it hereunder shall be personally liable for any action or determination in connection with
the Plan made or taken in good faith and each member of the Committee and each such person shall be entitled to indemnification
with respect to any such action or determination in the manner provided for by the Company.

 

SECTION
9

APPROVALS
AND AMENDMENT

 

9.1
Shareholder Approval of Plan

 

If
required by a Regulatory Authority or by the Committee, this Plan may be made subject to the approval of the shareholders of the
Company as prescribed by the Regulatory Authority. If shareholder approval is required, any Options granted under this Plan prior
to such time will not be exercisable or binding on the Company unless and until such shareholder approval is obtained.

 

9.2
Amendment of Option or Plan

 

Subject
to any required Regulatory Approvals, the Committee may from time to time amend any existing Option or the Plan or the terms and
conditions of any Option thereafter to be granted provided that where such amendment relates to an existing Option and it would:

 

	(a)	materially
    decrease the rights or benefits accruing to an Option Holder; or
	 	 
	(b)	materially
    increase the obligations of an Option Holder; then, unless otherwise excepted out by a provision of this Plan, the Committee
    must also obtain the written consent of the Option Holder in question to such amendment. If at the time the Exercise Price
    of an Option is reduced the Option Holder is an Insider of the Company, the Insider must not exercise the option at the reduced
    Exercise Price until the reduction in Exercise Price has been approved by the disinterested shareholders of the Company, if
    required by the Exchange.

 

    	 

    	19

    

 

SECTION
10

CONDITIONS
PRECEDENT TO ISSUANCE OF OPTIONS AND SHARES

 

10.1
Compliance with Laws

 

An
Option shall not be granted or exercised, and Shares shall not be issued pursuant to the exercise of any Option, unless the grant
and exercise of such Option and the issuance and delivery of such Shares comply with all applicable Regulatory Rules, and such
Options and Shares will be subject to all applicable trading restrictions in effect pursuant to such Regulatory Rules and the
Company shall be entitled to legend the Option Certificates and the certificates representing such Shares accordingly.

 

10.2
Regulatory Approvals

 

In
administering this Plan, the Committee will seek any Regulatory Approvals which may be required. The Committee will not permit
any Options to be granted without first obtaining the necessary Regulatory Approvals unless such Options are granted conditional
upon such Regulatory Approvals being obtained. The Committee will make all filings required with the Regulatory Authorities in
respect of the Plan and each grant of Options hereunder. No Option granted will be exercisable or binding on the Company unless
and until all necessary Regulatory Approvals have been obtained. The Committee shall be entitled to amend this Plan and the Options
granted hereunder in order to secure any necessary Regulatory Approvals and such amendments will not require the consent of the
Option Holders under section 9.2 of this Plan.

 

10.3
Inability to Obtain Regulatory Approvals

 

The
Company’s inability to obtain Regulatory Approval from any applicable Regulatory Authority, which Regulatory Approval is
deemed by the Committee to be necessary to complete the grant of Options hereunder, the exercise of those Options or the lawful
issuance and sale of any Shares pursuant to such Options, shall relieve the Company of any liability with respect to the failure
to complete such transaction.

 

SECTION
11

ADJUSTMENTS
AND TERMINATION

 

11.1
Termination of Plan

 

Subject
to any necessary Regulatory Approvals, the Committee may terminate or suspend the Plan. Unless earlier terminated as provided
in this section 11, the Plan shall terminate on, and no more Options shall be granted under the Plan after, the tenth anniversary
of the date of the Exchange’s acceptance of the Plan.

 

11.2
No Grant During Suspension of Plan

 

No
Option may be granted during any suspension, or after termination, of the Plan. Suspension or termination of the Plan shall not,
without the consent of the Option Holder, alter or impair any rights or obligations under any Option previously granted.

 

    	 

    	20

    

 

11.3
Alteration in Capital Structure

 

If
there is a material alteration in the capital structure of the Company and the Shares are consolidated, subdivided, converted,
exchanged, reclassified or in any way substituted for, the Committee shall make such adjustments to this Plan and to the Options
then outstanding under this Plan as the Committee determines to be appropriate and equitable under the circumstances, so that
the proportionate interest of each Option Holder shall, to the extent practicable, be maintained as before the occurrence of such
event. Such adjustments may include, without limitation:

 

	(a)	a
    change in the number or kind of shares of the Company covered by such Options; and
	 	 
	(b)	a
    change in the Exercise Price payable per Share provided, however, that the aggregate Exercise Price applicable to the unexercised
    portion of existing Options shall not be altered, it being intended that any adjustments made with respect to such Options
    shall apply only to the Exercise Price per Share and the number of Shares subject thereto.

 

For
purposes of this section 11.3, and without limitation, neither:

 

	(c)	the
    issuance of additional securities of the Company in exchange for adequate consideration (including services); nor
	 	 
	(d)	the
    conversion of outstanding securities of the Company into Shares shall be deemed to be material alterations of the capital
    structure of the Company. Any adjustment made to any Options pursuant to this section 11.3 shall not be considered an amendment
    requiring the Option Holder’s consent for the purposes of section 9.2 of this Plan.

 

11.4
Triggering Events

 

Subject
to the Company complying with section 11.5 and any necessary Regulatory Approvals and notwithstanding any other provisions of
this Plan or any Option Certificate, the Committee may, without the consent of the Option Holder or Holders in question:

 

	(a)	cause
    all or a portion of any of the Options granted under the Plan to terminate upon the occurrence of a Triggering Event; or
	 	 
	(b)	cause
    all or a portion of any of the Options granted under the Plan to be exchanged for incentive stock options of another corporation
    upon the occurrence of a Triggering Event in such ratio and at such exercise price as the Committee deems appropriate, acting
    reasonably.

 

Such
termination or exchange shall not be considered an amendment requiring the Option Holder’s consent for the purpose of section
9.2 of the Plan.

 

11.5
Notice of Termination by Triggering Event

 

In
the event that the Committee wishes to cause all or a portion of any of the Options granted under this Plan to terminate on the
occurrence of a Triggering Event, it must give written notice to the Option Holders in question not less than 10 days prior to
the consummation of a Triggering Event so as to permit the Option Holder the opportunity to exercise the vested portion of the
Options prior to such termination. Upon the giving of such notice and subject to any necessary Regulatory Approvals, all Options
or portions thereof granted under the Plan which the Company proposes to terminate shall become immediately exercisable notwithstanding
any contingent vesting provision to which such Options may have otherwise been subject.

 

    	 

    	21

    

 

11.6
Determinations to be Made By Committee

 

Adjustments
and determinations under this section 11 shall be made by the Committee, whose decisions as to what adjustments or determination
shall be made, and the extent thereof, shall be final, binding, and conclusive.

 

SECTION
12

ADJUSTMENTS
AND TERMINATION

 

12.1
Maximum Number of Options

 

Notwithstanding
anything contained in the Plan to the contrary, the maximum number of options the committee can grant is 10% of the number of
Common Shares. For the avoidance of doubt, the maximum number of stock options granted under this Plan must not exceed 10% of
the Outstanding Issue, or such lesser amount required from time-to-time by any Regulatory Authority.

 

    	 

    	 

    

 

SCHEDULE
A

 

TO
THE STOCK OPTION PLAN OF AGRIFORCE GROWING SYSTEMS LTD.

 

[Include
legends prescribed by Regulatory Authorities, if required.]

 

STOCK
OPTION CERTIFICATE

OF

AGRIFORCE
GROWING SYSTEMS LTD.

(the
“Corporation”)

 

	TO:	[NAME
    OF OPTIONEE] (the “Optionee”)

 

This
stock option certificate (the “Certificate”) certifies that as of the date of grant set forth below (the “Date
of Grant”), you have been granted the option (the “Option”) to purchase the number of common shares
of the Corporation set forth below (the “Option Shares”) at the exercise price set forth below (the “Exercise
Price”). The Option shall be subject to the terms and conditions set forth in the Corporation’s Stock Option Plan,
as amended or replaced from time to time (the “Plan”), and in addition shall be subject to the terms set forth
below. Where used herein all defined terms shall have the respective meanings attributed thereto in the Plan.

 

	Date
    of Grant:	[  ]
	Number
    of Option Shares:	[  ]
	Exercise
    Price:	[  ]
	Expiry
    Date of Option:	5:00
    p.m. (Vancouver Time), [  ]

 

Exercise
Price

 

The
Option provides you with the right to exercise the Option in whole or in part to purchase up to the number of Options Shares set
forth above at the Exercise Price. The number of Option Shares subject to the Option and the Exercise Price are each subject to
adjustment in certain events in accordance with the Plan.

 

Expiry
Date

 

The
Option is exercisable up until the Expiry Date set forth above, provided that (i) the Expiry Date may be accelerated in accordance
with the Plan, (ii) the Options are subject to termination in certain events in accordance with the Plan, and (iii) no Option
may be exercised until vested. On the close of business on the Expiry Date, the Option will expire and terminate and be of no
further force and effect whatsoever.

 

    	 

    	 

    

 

Vesting

 

You
are only entitled to exercise the Option to the extent that the Option has vested. The Option will vest on a cumulative basis
over a two year period from the Date of Grant as follows:

 

	Date
    of Vesting	 	Number
    of Options
	Three
    month anniversary of Date of Grant	 	[  ]
	Six
    month anniversary of Date of Grant	 	[  ]
	Nine
    month anniversary of Date of Grant	 	[  ]
	Twelve
    month anniversary of Date of Grant	 	[  ]
	Fifteenth
    month anniversary of Date of Grant	 	[  ]
	Eighteenth
    month anniversary of Date of Grant	 	[  ]
	Twenty-first
    month anniversary of Date of Grant	 	[  ]
	Twenty-fourth
    anniversary of Date of Grant	 	[  ]
	Total	 	[  ]

 

Exercise
of Option

 

You
may exercise the Option from time to time, in whole or in part AND to the extent the Option is vested and exercisable, by delivery
of an Election to Exercise in a form substantially the same as that attached hereto as Schedule A (the “Election to Exercise”).
You must properly complete and execute the Election to Exercise and deliver it to the Corporation together with a certified cheque
or bank draft in an amount equal to the aggregate Exercise Price for the number of Option Shares specified in the Election to
Exercise (the “Purchase Price”), unless you elect a cashless exercise of your Option in which case you acknowledge
the number of Option Shares will be reduced in accordance with the formula set out in the Election to Exercise. You must deliver
the Election to Exercise and, if applicable, the Purchase Price to the Corporation at the principal office of the Corporation
at [AGRIFORCE ADDRESS] or such other address in Canada as you may be notified in writing by the Corporation.

 

Termination
of the Option

 

The
Option is subject to termination in certain events under the Plan, including if you cease to be an eligible director, officer,
employee or consultant under the Plan. You may not exercise the Option after termination.

 

Copy
of Plan

 

The
Corporation has delivered a copy of the Plan to you with this Certificate. By acceptance of this Certificate, you acknowledge
receipt of a copy of the Plan.

 

    	 

    	 

    

 

Additional
Agreements of Optionee

 

By
acceptance of this Certificate and the Option evidenced hereby, you agree and acknowledge that:

 

	 	(i)	the
    terms of this Option (including the Exercise Price and the number of Options) may be modified by the Corporation without your
    consent to the extent reasonably necessary to enable the Corporation to list on the Canadian Securities Exchange or on any
    other stock exchange (the “CSE”), of which there is no assurance;
	 	 	 
	 	(ii)	the
    certificates representing the Option Shares may be endorsed with certain restrictive legends to the extent required to comply
    with securities laws applicable to you and the Company and the rules and policies of the CSE, or any other exchange on which
    the common shares of the Corporation may be traded;
	 	 	 
	 	(iv)	you
    will enter into such lock-up or escrow agreements required in connection with the listing of the Company on the CSE, as reasonably
    requested by the Company;
	 	 	 
	 	(v)	the
    Option and the issuance of the Option Shares have not been registered under the U.S. Securities Act of 1933, as amended and
    accordingly the Option Shares are not freely tradeable in the United States, and will be endorsed with legends confirming
    such restricted status if the Optionee is resident in or otherwise subject to U.S. securities laws;
	 	 	 
	 	(iv)	the
    Option and all Option Shares purchased upon any exercise of the Option have been and will be acquired for investment purposes
    only and not with the view to distribution or transfer and will be held for your own individual account;
	 	 	 
	 	(v)	the
    Option is not transferable; and
	 	 	 
	 	(vi)	you
    will execute and deliver to the Corporation such additional documentation, as reasonable required in the opinion of legal
    counsel to the Corporation, to establish that the Option Shares may be issued to you in reliance on exemptions from prospectus
    and registration requirements under applicable securities laws as a condition of the issuance of any Option Shares upon the
    exercise of the Option;
	 	 	 
	 	(vii)	where
    the terms of this Certificate are inconsistent with the terms of the Plan, the terms of the Plan shall prevail.

 

This
Certificate is executed to be effective as of the Date of Grant.

 

	AGRIFORCE
    GROWING SYSTEMS LTD. 	 	Accepted
    and agreed by the Optionee:
	 	 	 
	 	 	 	 
	Per:	 	 	Signature
    of Optionee
	 	Authorized
    Signatory	 	 
	 	 	 	[NAME
    OF OPTIONEE]
	 	 	 	 
	 	 	 	Name
    of Optionee

 

    	 

    	 

    

 

Schedule
A to Option Certificate

 

Election
to Exercise

 

The
undersigned Optionee hereby irrevocably elects to exercise the Option granted by Agriforce Growing Systems Ltd. (the “Corporation”)
on Date of Grant set forth below to purchase the number of Option Shares as set forth below:

 

	Date
    of Grant of Option:	 	 
	 	 	 
	(a)
    Number of Option Shares to be Acquired:	 	 
	 	 	 
	(b)
    Exercise Price (Per Option Share):	 	 
	 	 	 
	Aggregate
    Purchase Price [(a) multiplied by (b)]:	$
    	 

 

and
hereby exercise the Option as follows:

 

	A.	Cash
    Exercise 	[  ]	[Check
    box as applicable]

 

The
Optionee hereby tenders a certificate cheque or bank draft for such aggregate Purchase Price, and directs such shares to be registered
and a certificate therefore to be issued as directed below.

 

Or

 

	B.	Cashless
    Exercise  	[  ]	[Check
    box as applicable]

 

The
Optionee elects to complete a cashless exercise of the Options and agrees to the cancellation of that number of Option Shares
as is necessary, in accordance with the formula set forth in Exhibit A attached to this Notice, to exercise the Option with respect
to the number of Option Shares being purchased by means of a cashless exercise (the “Cashless Exercise Method”).

 

The
Optionee will further agree to any additional representations and agreements required to ensure compliance with U.S. securities
laws if the Optionee is a U.S. person or otherwise subject to U.S. securities laws.

 

The
undersigned acknowledges and agrees that issuance of the Option Shares is subject to the terms and conditions of the Certificate
representing the Option and the Stock Option Plan of the Corporation, as amended and replaced from time to time.

 

DATED
this___________day of ___________, ______.

 

	 	 	 
	 	 	Signature
    of Optionee
	 	 	 
	 	 	Name
    of Optionee
	 	 	 
	Direction
    as to Registration of Option Shares	 
	 	 
	 	Name
    of Registered Holder:	 
	 	 	 
	 	Address
    of Registered Holder:	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

EXHIBIT
A

 

TO
NOTICE OF EXERCISE

 

CASHLESS
EXERCISE

 

1. If
permitted by the policies of any stock exchange on which the Company may be listed from time to time, the Option may be exercised
by means of a “cashless exercise”, in which event the Company shall issue to the undersigned the net number of Shares
determined as follows:

 

 

where:

 

	a
    =	the
    net Shares to be issued to the undersigned;
	 	 
	b
    =	the
    number of Shares in respect of which the Option is being exercised;
	 	 
	c
    =	the
    average of the “Closing Sale Prices” of the Company’s shares of common shares for at least the two trading
    days ending on the date immediately preceding the Exercise Date; and
	 	 
	d
    =	the
    Exercise Price of the Option.

 

2.
For purposes hereof, “Closing Sale Price” means, for any security as of any date, the last trade price for
such security on the principal securities exchange or trading market for such security, or, if such exchange or trading market
begins to operate on an extended hours basis and does not designate the last trade price, then the last trade price of such security
prior to 4:00 p.m., Toronto time, or if the foregoing do not apply, the last trade price of such security in the over-the-counter
market on the electronic bulletin board for such security, or, if no last trade price is reported for such security, the average
of the bid prices, or the ask prices, respectively, of any market makers for such security as reported by the OTC Markets Group
Inc.

 

3.
If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing
Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the undersigned.

 

4.
If the Company and the undersigned are unable to agree upon the fair market value of such security, then the Company shall, within
two business days submit via facsimile (a) the disputed determination of the Closing Sale Price to an independent, reputable investment
bank selected by the Company and approved by the undersigned or (b) the disputed arithmetic calculation of the Shares of Common
Stock to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the
accountant, as the case may be, to perform the determinations or calculations and notify the Company and the undersigned of the
results no later than ten business days from the time it receives the disputed determinations or calculations. Such investment
bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent
demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination
or other similar transaction during the applicable calculation period.Exhibit
4.3

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS
AND A DAY AFTER THE LATER OF (I) THE 21ST DAY OF DECEMBER, 2018, AND (II) THE DATE THE CORPORATION BECAME A REPORTING
ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.

 

THE
WARRANT EVIDENCED HEREBY IS EXERCISABLE ON OR BEFORE 4:00 P. M. (VANCOUVER TIME) ON THE 21st DAY OF DECEMBER, 2021,
SUBJECT TO ACCELERATION OF THE EXPIRY TIME AS SET FORTH HEREIN, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED
TO BE VOID AND OF NO FURTHER FORCE OR EFFECT. 

 

WARRANTS
TO PURCHAS

COMMON SHARES OF CANIVATE GROWING SYSTEMS LTD.

 

	Warrant
                                         Certificate Number:
	Number
                                         of Warrants:

        

        

	 	 
	♦	♦

 

THIS
IS TO CERTIFY THAT for value received ♦ [NTD: Name of
Warrantholder], ♦ [NTD: Address of Warrantholder] (the “Warrantholder”) has the right
to purchase in respect of each whole warrant (collectively the “Warrants”) represented by this certificate
or by a replacement certificate (in either case this “Warrant Certificate”), at any time up to 5:00 p.m. Vancouver
time, on December 21, 2021, subject to acceleration as provided in Schedule “A” (the “Expiry Time”)
one fully paid and non-assessable common share (collectively the “Common Shares” and which term shall include
any shares or other securities to be issued in addition thereto or in substitution or replacement therefor as provided herein)
of Canivate Growing Systems Ltd. (the “Corporation”), a corporation incorporated under the British Columbia
Business Corporations Act, as constituted on the date hereof at a purchase price (the purchase price in effect from time to
time being called the “Exercise Price”) of $0.50 (Cdn) per Common Share. The number of Common Shares which
the Warrantholder is entitled to acquire upon exercise of the Warrants and the Exercise Price are subject to adjustment as hereinafter
provided.

 

The
Corporation agrees that the Common Shares purchased pursuant to the exercise of the Warrants shall be and be deemed to be issued
to the Warrantholder as of the close of business on the date on which this Warrant Certificate shall have been surrendered and
payment made for such Common Shares as aforesaid.

 

Nothing
contained herein shall confer any right upon the Warrantholder to subscribe for or purchase any Common Shares at any time after
the Expiry Time and from and after the Expiry Time the Warrants and all rights under this Warrant Certificate shall be void and
of no value.

 

This
Warrant Certificate is issued upon the terms and conditions as are set out in Schedule “A” hereto, which terms, conditions
and provisions are attached hereto and are incorporated herein and form a part hereof. Unless the context otherwise requires capitalized
expressions herein shall have the meanings provided for in Schedule “A” hereto.

 

    	 

    	-2-

    

 

IN
WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be executed by its duly authorized officers this 21st
day of December, 2018.

 

	 	CANIVATE
    GROWING SYSTEMS LTD.
	 	 	 
	 	Per:
	 	 
	 	 	Authorized
    Signatory

 

    	 

    	 

    

 

SCHEDULE
“A”

 

TERMS
AND CONDITIONS

ATTACHED TO WARRANTS ISSUED BY

CANIVATE GROWING SYSTEMS LTD.

(the “Corporation”)

 

Each
Warrant is subject to these Terms and Conditions as they were at the date of issue of the Warrant.

 

Terms
used but not otherwise defined herein have the meaning ascribed thereto on the face page of the Warrant Certificate.

 

	1.	Definitions:
    In this Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following
    expressions shall have the following meanings namely:

 

	 	a)	“Adjustment
    Period” means the period commencing on the date of issue of the Warrants and ending at the Expiry Time;
	 	 	 
	 	b)	“Current
    Market Price” of the Common Shares at any date means the price per share equal to the weighted average price at
    which the Common Shares have traded on the Canadian Securities Exchange or, if the Common Shares are not then listed on the
    Canadian Securities Exchange, on such other Canadian stock exchange as may be selected by the directors of the Corporation
    for such purpose or, if the Common Shares are not then listed on any Canadian stock exchange, in the over-the-counter market,
    during the period of any 20 consecutive trading days ending not more than five business days before such date; provided that
    the weighted average price shall be determined by dividing the aggregate sale price of all Common Shares sold on the said
    exchange or market, as the case may be, during such 20 consecutive trading days by the total number of Common Shares so sold;
    and provided further that if the Common Shares are not then listed on any Canadian stock exchange or traded in the over-the-counter
    market, then the Current Market Price shall be determined by a firm of independent chartered accountants selected by the directors
    of the Corporation;
	 	 	 
	 	c)	“director”
    means a director of the Corporation for the time being and, unless otherwise specified herein, a reference to action “by
    the directors” means action by the directors of the Corporation as a board or, whenever empowered, action by any committee
    of the directors of the Corporation;
	 	 	 
	 	d)	“Definitive
    Offtake Agreement” means one or more definitive, legally binding agreement or agreements entered into by the Company
    or a directly or indirectly owned subsidiary of the Company for the growing and purchase of cannabis or cannabis derived products;
	 	 	 
	 	e)	 “trading
    day” with respect to a stock exchange or over-the-counter market means a day on which such stock exchange or market
    is open for business;
	 	 	 
	 	f)	 “Regulation
    S” means Regulation S promulgated under the U.S. Securities Act;
	 	 	 
	 	g)	 “United
    States” has the meaning prescribed in Regulation S;

 

    	 

    	-2-

    

 

	 	h)	 “U.S.
    Person” has the meaning prescribed in Regulation S; and
	 	 	 
	 	i)	 “U.S.
    Securities Act” means the the United States Securities Act of 1933, as amended.
	 	 	 
	 	In
    addition, words importing the singular number include the plural and vice versa, and words importing the masculine gender
    include feminine and neuter genders.

 

	2.	Exercise:
    In the event that the Warrantholder desires to exercise the right to purchase Common Shares conferred hereby, the Warrantholder
    shall:

 

	 	a)	complete
    to the extent possible in the manner indicated and execute a subscription form in the form attached as Schedule B to this
    Warrant Certificate if the Warrantholder is not a U.S. Person, resident in the United States or otherwise not subject to the
    securities laws of the United States, or Schedule C to this Warrant Certificate if the Warrantholder is a U.S. Person, resident
    in the United States or otherwise subject to the securities laws of the United States, 
	 	 	 
	 	b)	surrender
    this Warrant Certificate to the Corporation in accordance with section 13 hereof, and 
	 	 	 
	 	c)	pay
    the amount payable on the exercise of such Warrants in respect of the Common Shares subscribed for by certified cheque, bank
    draft or money order in lawful money of Canada payable to the Corporation or by transmitting same day funds in lawful money
    of Canada by wire to such account as the Corporation shall direct the Warrantholder.
	 	 	 
	 	Upon
    such surrender and payment as aforesaid, the Warrantholder shall be deemed for all purposes to be the holder of record of
    the number of Common Shares to be so issued and the Warrantholder shall be entitled to delivery of a certificate or certificates
    representing such Common Shares and the Corporation shall cause such certificate or certificates to be delivered to the Warrantholder
    at the address specified in the subscription form within three business days after such surrender and payment as aforesaid.
    No fractional Common Shares will be issuable upon any exercise of this Warrant and the Warrantholder will not be entitled
    to any cash payment or compensation in lieu of a fractional Common Share.

 

	3.	Acceleration
    of Expiry Time: In the event that the Company or a direct or indirect subsidiary of the Company enters into a Definitive
    Offtake Agreement, the Company may accelerate the Expiry Time for the Warrants as follows:

 

	 	a)	the
    Company will be entitled to give notice of acceleration (an “Acceleration Notice”) upon execution of a Definitive
    Offtake Agreement;
	 	 	 
	 	b)	upon
    delivery of an Acceleration Notice to a Warrantholder, the Expiry Time will be accelerated to 5:00pm on the date that is 30
    calendar days from the date of delivery of the Acceleration Notice to the Warrantholder (the “Accelerated Expiry
    Date”); 
	 	 	 
	 	c)	the
    Warrantholder will be entitled to exercise the Warrants up to the Expiry Time on the Accelerated Expiry Date; and
	 	 	 
	 	d)	if
    the Warrantholder does not exercise the Warrants by the Expiry Time on the Accelerated Expiry Date, the Warrant and the rights
    provided under this Warrant Certificate will terminate.

 

    	 

    	-3-

    

 

	4.	Partial
    Exercise: The Warrantholder may from time to time subscribe for and purchase any lesser number of Common Shares than the
    number of Common Shares expressed in this Warrant Certificate. In the event that the Warrantholder subscribes for and purchases
    any such lesser number of Common Shares prior to the Expiry Time, the Warrantholder shall be entitled to receive a replacement
    certificate representing the unexercised balance of the Warrants.
	 	 
	5.	Not
    a Shareholder: The holding of the Warrants shall not constitute the Warrantholder a shareholder of the Corporation nor
    entitle the Warrantholder to any right or interest in respect thereof except as expressly provided in this Warrant Certificate.
	 	 
	6.	Resale
    Restrictions and Legends on Common Shares:
	 	 
	 	The
    Common Shares received by the Warrantholder upon the exercise of the Warrants may be subject to a hold period as determined
    by the Securities Act (British Columbia), the rules and policies of the Canadian Securities Exchange (if the common
    shares are traded on the Canadian Securities Exchange at that time) and/or other applicable securities laws.
	 	 
	 	Canadian
    Legends
	 	 
	 	Any
    certificate representing Common Shares issued upon the exercise of this Warrant prior to the date which is four months and
    one day after the date the Company becomes a “reporting issuer” in Canada will bear the following legends:
	 	 
	 	“UNLESS
    PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4
    MONTHS AND A DAY AFTER THE LATER OF (I) DECEMBER 21, 2019, AND (II) THE DATE THE CORPORATION BECAME A REPORTING ISSUER IN
    ANY PROVINCE OR TERRITORY OF CANADA.”
	 	 
	 	provided
    that at any time subsequent to the date which is four months and one day after the date the Company became a “reporting
    issuer” any certificate representing such Common Shares may be exchanged for a certificate bearing no such legends.
	 	 
	 	U.S.
    Resale Restrictions and Legends
	 	 
	 	This
    Warrant and the Common Shares to be issued upon its exercise have not been and will not be registered under the U.S. Securities
    Act or the securities laws of any state of the United States. This Warrant may not be exercised in the United States, or by
    or for the account or benefit of a U.S. Person or a person in the United States, unless (i) the Common Shares are registered
    under the U.S. Securities Act and the applicable laws of any such state, or (ii) an exemption from such registration requirements
    is available, and (iii) the Warrantholder has complied with the requirements set forth in the subscription form attached hereto
    as Schedule C. 

 

    	 

    	-4-

    

 

	 	Any
    Common Shares issued upon exercise of this Warrant in the United States, or to or for the account or benefit of a U.S. person
    or a person in the United States, will be “restricted securities”, as defined in Rule 144(a)(3) under the U.S.
    Securities Act. The certificates representing such Common Shares, as well as all certificates issued in exchange or in substitution
    therefor, until such time as is no longer required under the applicable requirements of the U.S. Securities Act, or applicable
    state securities laws, will bear, on the face of such certificate, the following legends:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES,
AGREES FOR THE BENEFIT OF CANIVATE GROWING SYSTEMS LTD. (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION
S UNDER THE U.S. SECURITIES ACT; (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT PROVIDED BY RULES 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS; OR
(D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
AND, IN THE CASE OF PARAGRAPH (C) OR (D), THE SELLER FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING
IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION TO SUCH EFFECT.

 

THE
PRESENCE OF THIS LEGEND MAY IMPAIR THE ABILITY OF THE HOLDER HEREOF TO EFFECT “GOOD DELIVERY” OF THE SECURITIES REPRESENTED
HEREBY ON A CANADIAN STOCK EXCHANGE. A CERTIFICATE WITHOUT A LEGEND MAY BE OBTAINED FROM THE REGISTRAR AND TRANSFER AGENT OF THE
CORPORATION IN CONNECTION WITH A SALE OF THE SECURITIES REPRESENTED HEREBY AT A TIME WHEN THE CORPORATION IS A “FOREIGN
ISSUER” AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT, UPON DELIVERY OF THIS CERTIFICATE, AN EXECUTED DECLARATION
AND, IF REQUESTED BY THE CORPORATION OR THE TRANSFER AGENT, AN OPINION OF COUNSEL OF RECOGNIZED STANDING, EACH IN FORM AND SUBSTANCE
SATISFACTORY TO THE CORPORATION AND ITS TRANSFER AGENT, TO THE EFFECT THAT SUCH SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING
MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT.”

 

	 	provided,
    that if the Common Shares are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation
    S under the U.S. Securities Act at a time when the Corporation is a “foreign issuer”, as defined in Rule 902(e)
    of Regulation S at the time of sale, the legends set forth above may be removed by providing a declaration to the Corporation
    and its registrar and transfer agent, as set forth in Schedule D attached hereto (or in such other form as the Corporation
    prescribe from time to time); and provided, further, that, if the Common Shares are being sold otherwise than in accordance
    with Rule 904 of Regulation S and other than to the Corporation, the legends may be removed by delivery to the Corporation
    and its registrar and transfer agent of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation,
    that such legends are no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

 

    	 

    	-5-

    

 

	7.	Transfer:
    The Warrants are transferable subject to compliance with applicable laws, including the rules and policies of any securities
    regulatory authority having jurisdiction any and any stock exchange on which the Common Shares are listed or traded. The term
    “Warrantholder” shall be deemed to include any successor, transferee or assignee of the current or any future
    Warrantholder. The Warrants may be transferred by the Warrantholder by completing and delivering to the Corporation the transfer
    form attached hereto as Schedule E, together with any such additional documentation or legal opinions reasonably required
    by the Corporation to evidence compliance with applicable laws. The Corporation shall issue and deliver, as soon as practicable
    and in any event within three (3) business days of delivery of such documentation, a new Warrant Certificate registered in
    the name of such transferee or as the transferee may direct and shall take all other necessary actions to effect the transfer
    as directed, which warrant certificate shall be endorsed with such legends as required to ensure compliance with applicable
    laws.
	 	 
	8.	Covenants,
    Representations and Warranties: The Corporation hereby represents and warrants that it is authorized to create and issue
    the Warrants and covenants and agrees that it will cause the Common Shares from time to time subscribed for and purchased
    in the manner provided in this Warrant Certificate and the certificate or certificates representing such Common Shares to
    be issued and that, at all times prior to the Expiry Time, it will reserve and there will remain unissued a sufficient number
    of Common Shares to satisfy the right of purchase provided for in this Warrant Certificate. The Corporation hereby further
    covenants and agrees that it will at its expense expeditiously use its best efforts to obtain the listing of such Common Shares
    (subject to issue or notice of issue) on each stock exchange or over-the-counter market on which the Common Shares may be
    listed from time to time. All Common Shares which are issued upon the exercise of the right of purchase provided in this Warrant
    Certificate, upon payment therefor of the amount at which such Common Shares may be purchased pursuant to the provisions of
    this Warrant Certificate, shall be and be deemed to be fully paid and non-assessable shares and free from all taxes, liens
    and charges with respect to the issue thereof. The Corporation hereby represents and warrants that this Warrant Certificate
    is a valid and enforceable obligation of the Corporation, enforceable in accordance with the provisions of this Warrant Certificate.
	 	 
	9.	Adjustment
    Provisions:

 

	 	a)	Adjustments:
    The Exercise Price and the number of Common Shares issuable to the Warrantholder upon the exercise of the Warrants shall be
    subject to adjustment from time to time in the events and in the manner provided as follows:

 

	 	 	i.	If
    at any time during the Adjustment Period the Corporation shall:

 

	 	1)	fix
    a record date for the issue of, or issue, Common Shares to the holders of all or substantially all of the outstanding Common
    Shares by way of a stock dividend;
	 	 	 
	 	2)	fix
    a record date for the distribution to, or make a distribution to, the holders of all or substantially all of the outstanding
    Common Shares payable in Common Shares or securities exchangeable for or convertible into Common Shares; 

 

    	 

    	-6-

    

 

	 	3)	subdivide,
    redivide or exchange the outstanding Common Shares into a greater number of Common Shares; or
	 	 	 
	 	4)	consolidate,
    combine or reduce the outstanding Common Shares into a lesser number of Common Shares,
	 	 	 
	 	(any
    of such events in subclauses 8(a)(i)(1), 8(a)(i)(2), 8(a)(i)(3) and 8(a)(i)(4) above being herein called a “Common
    Share Reorganization”), the Exercise Price shall be adjusted on the earlier of the record date on which holders
    of Common Shares are determined for the purposes of the Common Share Reorganization and the effective date of the Common Share
    Reorganization to the amount determined by multiplying the Exercise Price in effect immediately prior to such record date
    or effective date, as the case may be, by a fraction:

 

	 	A.	the
    numerator of which shall be the number of Common Shares outstanding on such record date or effective date, as the case may
    be, before giving effect to such Common Share Reorganization; and
	 	 	 
	 	B.	the
    denominator of which shall be the number of Common Shares which will be outstanding immediately after giving effect to such
    Common Share Reorganization (including in the case of a distribution of securities exchangeable for or convertible into Common
    Shares the number of Common Shares that would have been outstanding had such securities been exchanged for or converted into
    Common Shares on such date).

 

	 	To
    the extent that any adjustment in the Exercise Price occurs pursuant to this clause 8(a)(i) as a result of the fixing by the
    Corporation of a record date for the distribution of securities exchangeable for or convertible into Common Shares, the Exercise
    Price shall be readjusted immediately after the expiry of any relevant exchange or conversion right to the Exercise Price
    which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry
    and shall be further readjusted in such manner upon the expiry of any further such right. Any Warrantholder who has not exercised
    his right to subscribe for and purchase Common Shares on or prior to the record date of such stock dividend or distribution
    or the effective date of such subdivision or consolidation, as the case may be, upon the exercise of such right thereafter
    shall be entitled to receive and shall accept in lieu of the number of Common Shares then subscribed for and purchased by
    such Warrantholder, at the Exercise Price determined in accordance with this clause 8(a)(i) the aggregate number of Common
    Shares that such Warrantholder would have been entitled to receive as a result of such Common Share Reorganization, if, on
    such record date or effective date, as the case may be, such Warrantholder had been the holder of record of the number of
    Common Shares so subscribed for and purchased. 

 

    	 

    	-7-

    

 

	 	ii.	If
    at any time during the Adjustment Period the Corporation shall fix a record date for the issue or distribution to the holders
    of all or substantially all of the outstanding Common Shares of rights, options or warrants pursuant to which such holders
    are entitled, during a period expiring not more than 45 days after the record date for such issue (such period being the “Rights
    Period”), to subscribe for or purchase Common Shares or securities exchangeable for or convertible into Common Shares
    at a price per share to the holder (or in the case of securities exchangeable for or convertible into Common Shares, at an
    exchange or conversion price per share) at the date of issue of such securities of less than 95% of the Current Market Price
    of the Common Shares on such record date (any of such events being called a “Rights Offering”), the Exercise
    Price shall be adjusted effective immediately after the record date for such Rights Offering to the amount determined by multiplying
    the Exercise Price in effect on such record date by a fraction:

 

	 	1)	the
    numerator of which shall be the aggregate of

 

	 	A.	the
    number of Common Shares outstanding on the record date for the Rights Offering, and
	 	 	 
	 	B.	the
    quotient determined by dividing

 

	 	I.	either
    (a) the product of the number of Common Shares offered during the Rights Period pursuant to the Rights Offering and the price
    at which such Common Shares are offered, or, (b) the product of the exchange or conversion price of the securities so offered
    and the number of Common Shares for or into which the securities offered pursuant to the Rights Offering may be exchanged
    or converted, as the case may be, by 
	 	 	 
	 	II.	the
    Current Market Price of the Common Shares as of the record date for the Rights Offering; and

 

	 	2)	the
    denominator of which shall be the aggregate of the number of Common Shares outstanding on such record date and the number
    of Common Shares offered pursuant to the Rights Offering (including in the case of the issue or distribution of securities
    exchangeable for or convertible into Common Shares the number of Common Shares for or into which such securities may be exchanged
    or converted).

 

    	 

    	-8-

    

 

	 	If
    by the terms of the rights, options, or warrants referred to in this clause 8(a)(ii), there is more than one purchase, conversion
    or exchange price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription
    or purchase, or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered, shall
    be calculated for purposes of the adjustment on the basis of the lowest purchase, conversion or exchange price per Common
    Share, as the case may be. Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be
    outstanding for the purpose of any such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant
    to this clause 8(a)(ii) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights,
    options or warrants referred to in this clause 8(a)(ii), the Exercise Price shall be readjusted immediately after the expiry
    of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in effect based upon the
    number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner
    upon the expiry of any further such right.

 

		iii.	If
    at any time during the Adjustment Period the Corporation shall fix a record date for the issue or distribution to the holders
    of all or substantially all of the outstanding Common Shares of:

 

	 	1)	shares
    of the Corporation of any class other than Common Shares;
	 	 	 
	 	2)	rights,
    options or warrants to acquire Common Shares or securities exchangeable for or convertible into Common Shares (other than
    rights, options or warrants pursuant to which holders of Common Shares are entitled, during a period expiring not more than
    45 days after the record date for such issue, to subscribe for or purchase Common Shares or securities exchangeable for or
    convertible into Common Shares at a price per share (or in the case of securities exchangeable for or convertible into Common
    Shares at an exchange or conversion price per share) at the date of issue of such securities to the holder of at least 95%
    of the Current Market Price of the Common Shares on such record date);
	 	 	 
	 	3)	evidences
    of indebtedness of the Corporation; or
	 	 	 
	 	4)	any
    property or assets of the Corporation;
	 	 	 
	 	and
    if such issue or distribution does not constitute a Common Share Reorganization or a Rights Offering (any of such non-excluded
    events being herein called a “Special Distribution”), the Exercise Price shall be adjusted effective immediately
    after the record date for the Special Distribution to the amount determined by multiplying the Exercise Price in effect on
    the record date for the Special Distribution by a fraction:

 

	 	A.	the
    numerator of which shall be the difference between

 

		I.	the
    product of the number of Common Shares outstanding on such record date and the Current Market Price of the Common Shares on
    such record date, and

 

    	 

    	-9-

    

 

		II.	the
    fair value, as determined by the directors of the Corporation, to the holders of Common Shares of the shares, rights, options,
    warrants, evidences of indebtedness or property or assets to be issued or distributed in the Special Distribution, and

 

		B.	the
    denominator of which shall be the product obtained by multiplying the number of Common Shares outstanding on such record date
    by the Current Market Price of the Common Shares on such record date.

 

	 	 	Any
    Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of
    such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 8(a)(iii) as a result
    of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants to acquire
    Common Shares or securities exchangeable for or convertible into Common Shares referred to in this clause 8(a)(iii), the Exercise
    Price shall be readjusted immediately after the expiry of any relevant exercise, exchange or conversion right to the amount
    which would then be in effect based upon the number of Common Shares issued and remaining issuable after such expiry and shall
    be further readjusted in such manner upon the expiry of any further such right.
	 	 	 	 
	 	iv.	If
    at any time during the Adjustment Period there shall occur:

 

	 	1)	a
    reclassification or redesignation of the Common Shares, a change of the Common Shares into other shares or securities or any
    other capital reorganization involving the Common Shares other than a Common Share Reorganization;
	 	 	 
	 	2)	a
    consolidation, amalgamation or merger of the Corporation or other form of business combination with or into another body corporate
    which results in a reclassification or redesignation of the Common Shares or a change of the Common Shares into other shares
    or securities;
	 	 	 
	 	3)	the
    transfer of the undertaking or assets of the Corporation as an entirety or substantially as an entirety to another corporation
    or entity;

 

	 	(any
    of such events being called a “Capital Reorganization”), after the effective date of the Capital Reorganization
    the Warrantholder shall be entitled to receive, and shall accept, for the same aggregate consideration, upon exercise of the
    Warrants, in lieu of the number of Common Shares to which the Warrantholder was theretofor entitled upon the exercise of the
    Warrants, the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization
    which the Warrantholder would have been entitled to receive as a result of the Capital Reorganization if, on the effective
    date thereof, the Warrantholder had been the registered holder of the number of Common Shares which the Warrantholders was
    theretofore entitled to purchase or receive upon the exercise of the Warrants. If necessary, as a result of any such Capital
    Reorganization, appropriate adjustments shall be made in the application of the provisions of this Warrant Certificate with
    respect to the rights and interests thereafter of the Warrantholder to the end that the provisions shall thereafter correspondingly
    be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter
    deliverable upon the exercise of the Warrants.

 

	 	v.	If
    at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price shall occur pursuant to the
    provisions of clause 8(a)(i), 8(a)(ii) or 8(a)(iii) of this Warrant Certificate, then the number of Common Shares purchasable
    upon the subsequent exercise of the Warrants shall be simultaneously adjusted or readjusted, as the case may be, by multiplying
    the number of Common Shares purchasable upon the exercise of the Warrants immediately prior to such adjustment or readjustment
    by a fraction which shall be the reciprocal of the fraction used in the adjustment or readjustment of the Exercise Price.

 

	 	b)	Rules:
    The following rules and procedures shall be applicable to adjustments made pursuant to subsection 8(a) hereof:

 

	 	i.	Subject
    to the following clauses of this subsection 8(b), any adjustment made pursuant to subsection 8(a) hereof shall be made successively
    whenever an event referred to therein shall occur.
	 	 	 
	 	ii.	No
    adjustment in the Exercise Price shall be required unless such adjustment would result in a change of at least one per cent
    in the then Exercise Price and no adjustment shall be made in the number of Common Shares purchasable or issuable on the exercise
    of the Warrants unless it would result in a change of at least one one-hundredth of a Common Share; provided, however, that
    any adjustments which except for the provision of this clause 8(b)(ii) would otherwise have been required to be made shall
    be carried forward and taken into account in any subsequent adjustment. Notwithstanding any other provision of subsection
    8(a) hereof, no adjustment of the Exercise Price shall be made which would result in an increase in the Exercise Price or
    a decrease in the number of Common Shares issuable upon the exercise of the Warrants (except in respect of the Common Share
    Reorganization described in subclause 8(a)(i)(4) hereof or a Capital Reorganization described in subclause 8(a)(iv)(2) hereof).
	 	 	 
	 	iii.	No
    adjustment in the Exercise Price or in the number or kind of securities purchasable upon the exercise of the Warrants shall
    be made in respect of any event described in section 8 hereof if the Warrantholder is entitled to participate in such event
    on the same terms mutatis mutandis as if the Warrantholder had exercised the Warrants prior to or on the record date
    or effective date, as the case may be, of such event.

 

    	 

    	-10-

    

 

	 	iv.	No
    adjustment in the Exercise Price or in the number of Common Shares purchasable upon the exercise of the Warrants shall be
    made pursuant to subsection 8(a) hereof in respect of the issue from time to time of Common Shares pursuant to this Warrant
    Certificate or pursuant to any stock option, stock purchase or stock bonus plan in effect from time to time for directors,
    officers or employees of the Corporation and/or any subsidiary of the Corporation and any such issue, and any grant of options
    in connection therewith, shall be deemed not to be a Common Share Reorganization, a Rights Offering nor any other event described
    in subsection 8(a) hereof.
	 	 	 
	 	v.	If
    at any time during the Adjustment Period the Corporation shall take any action affecting the Common Shares, other than an
    action described in subsection 8(a) hereof, which in the opinion of the directors would have a material adverse effect upon
    the rights of Warrantholders, either or both the Exercise Price and the number of Common Shares purchasable upon exercise
    of Warrants shall be adjusted in such manner and at such time by action by the directors, in their sole discretion, as may
    be equitable in the circumstances. Failure of the taking of action by the directors so as to provide for an adjustment prior
    to the effective date of any action by the Corporation affecting the Common Shares shall be deemed to be conclusive evidence
    that the directors have determined that it is equitable to make no adjustment in the circumstances.
	 	 	 
	 	vi.	If
    the Corporation shall set a record date to determine holders of Common Shares for the purpose of entitling such holders to
    receive any dividend or distribution or any subscription or purchase rights and shall, thereafter and before the distribution
    to such holders of any such dividend, distribution or subscription or purchase rights, legally abandon its plan to pay or
    deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Exercise Price or the number
    of Common Shares purchasable upon exercise of the Warrant shall be required by reason of the setting of such record date.
	 	 	 
	 	vii.	In
    any case in which this Warrant Certificate shall require that an adjustment shall become effective immediately after a record
    date for an event referred to in subsection 8(a) hereof, the Corporation may defer, until the occurrence of such event:

 

	 	1)	issuing
    to the Warrantholder, to the extent that the Warrants are exercised after such record date and before the occurrence of such
    event, the additional Common Shares or other securities issuable upon such exercise by reason of the adjustment required by
    such event; and
	 	 	 
	 	2)	delivering
    to the Warrantholder any distribution declared with respect to such additional Common Shares or other securities after such
    record date and before such event;

 

    	 

    	-11-

    

 

	 	 	provided,
    however, that the Corporation shall deliver to the Warrantholder an appropriate instrument evidencing the right of the Warrantholder
    upon the occurrence of the event requiring the adjustment, to an adjustment in the Exercise Price or the number of Common
    Shares purchasable upon the exercise of the Warrants and to such distribution declared with respect to any such additional
    Common Shares issuable on the exercise of the Warrants.
	 	 	 
	 	viii.	In
    the absence of a resolution of the directors fixing a record date for a Rights Offering, the Corporation shall be deemed to
    have fixed as the record date therefor the date of the issue of the rights, options or warrants issued pursuant to the Rights
    Offering.
	 	 	 
	 	ix.	If
    a dispute shall at any time arise with respect to adjustments of the Exercise Price or the number of Common Shares purchasable
    upon the exercise of the Warrants, such disputes shall be conclusively determined by the auditors of the Corporation or if
    they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by the directors
    and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to subsection 8(a)
    hereof and shall be binding upon the Corporation and the Warrantholder.
	 	 	 
	 	x.	As
    a condition precedent to the taking of any action which would require an adjustment pursuant to subsection 8(a) hereof, including
    the Exercise Price and the number or class of Common Shares or other securities which are to be received upon the exercise
    thereof, the Corporation shall take any action which may, in the opinion of counsel to the Corporation, be necessary in order
    that the Corporation may validly and legally issue as fully paid and non-assessable shares all of the Common Shares or other
    securities which the Warrantholder is entitled to receive in accordance with the provisions of this Warrant Certificate.

 

		c)	Notice:
    At least 21 days prior to the effective date of any event which requires or might require an adjustment in any of the rights
    of the Warrantholder under this Warrant Certificate, including the Exercise Price or the number of Common Shares which may
    be purchased under this Warrant Certificate, the Corporation shall deliver to the Warrantholder a certificate of the Corporation
    specifying the particulars of such event and, if determinable, the required adjustment and the calculation of such adjustment.
    In case any adjustment for which a notice in this subsection 8(c) has been given is not then determinable, the Corporation
    shall promptly after such adjustment is determinable deliver to the Warrantholder a certificate providing the calculation
    of such adjustment. The Corporation hereby covenants and agrees that the register of transfers and share transfer books for
    the Common Shares will be open, and that the Corporation will not take any action which might deprive the Warrantholder of
    the opportunity of exercising the rights of subscription contained in this Warrant Certificate, during such 21 day period.

 

    	 

    	-12-

    

 

	10.	Lost
    Certificate: If this Warrant Certificate or any replacement hereof becomes stolen, lost, mutilated or destroyed, the Corporation
    shall, on such terms as it may in its discretion impose, acting reasonably, issue and deliver a new certificate, in form identical
    hereto but with appropriate changes, representing any unexercised portion of the subscription rights represented hereby to
    replace the certificate so stolen, lost, mutilated or destroyed.
	 	 
	11.	Further
    Assurances: The Corporation hereby covenants and agrees that it will do, execute, acknowledge and deliver, or cause to
    be done, executed, acknowledged and delivered, all and every such other act, deed and assurance as the Warrantholder shall
    reasonably require for the better accomplishing and effectuating of the intentions and provisions of this Warrant Certificate.
	 	 
	12.	Time
    of Essence: Time shall be of the essence of this Warrant Certificate.
	 	 
	13.	Governing
    Laws: This Warrant Certificate shall be construed in accordance with the laws of the Province of British Columbia and
    the federal laws of Canada applicable therein.
	 	 
	14.	Notices:
    All notices or other communications to be given under this Warrant Certificate shall be delivered by hand or by telecopier
    and, if delivered by hand, shall be deemed to have been given on the delivery date and, if sent by telecopier, on the date
    of transmission if sent before 4:00 p.m. on a business day or, if such day is not a business day, on the first business day
    following the date of transmission.

 

Notices
to the Corporation shall be addressed to:

 

Canivate
Growing Systems Ltd.

Suite
500, 1112 West Pender Street

Vancouver,
British Columbia

Canada
V6E 2S1

 

Attention:
Mr. Ingo Mueller, C.E.O.

E-mail
Address: ingo.mueller@canivate.com

 

Notices
to the Warrantholder shall be addressed to the address of the Warrantholder set out on the face page of this Warrant Certificate.

 

	 	The
    Corporation and the Warrantholder may change its address for service by notice in writing to the other of them specifying
    its new address for service under this Warrant Certificate.
	 	 
	15.	Language:
    The parties hereto acknowledge and confirm that they have requested that this Warrant Certificate as well as all notices
    and other documents contemplated hereby be drawn up in the English language. Les parties aux présentes reconnaissent
    et confirment qu’elles ont exigé que la présente convention ainsi que tous les avis et documents qui s’y
    rattachent soient rédigés en langue anglaise.
	 	 
	16.	Successors
    and Assigns: This Warrant Certificate shall enure to the benefit of the Warrantholder and the successors and assignees
    thereof and shall be binding upon the Corporation and the successors thereof.

 

[REST
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	 	 

     

    

 

SCHEDULE
B

 

SUBSCRIPTION
FORM

(Non-U.S. Warrantholders)

 

	TO:	CANIVATE
    GROWING SYSTEMS LTD.

 

The
undersigned hereby subscribes for ____________ common shares (“Common Shares”) of Canivate Growing Systems
Ltd. (the “Corporation”) (or such other number of Common Shares or other securities to which such subscription
entitles the undersigned in lieu thereof or in addition thereto) pursuant to the provisions of the warrant certificate (the “Warrant
Certificate”) dated December 21, 2018 issued by the Corporation to the Warrantholder (as defined in the Warrant Certificate)
at the purchase price of $0.50 (Cdn) per Common Share (or at such other purchase price as may then be in effect under the provisions
of the Warrant Certificate) and on and subject to the other terms and conditions specified in the Warrant and encloses herewith
a cheque, bank draft or money order or has transmitted good same day funds by wire or other similar transfer in lawful money of
Canada payable to or to the order of the Corporation in payment of the subscription price.

 

By
executing this subscription form the undersigned represents and warrants that the undersigned at the time of execution and delivery
of this subscription form (i) is not in the United States and is not a “U.S. Person” (as defined in Regulation S promulgated
under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”)); (ii) is not exercising
the right provided for herein for the account or benefit of a U.S. Person or a person in the United States (as defined in Regulation
S); (iii) is not exercising Warrants with the intent to distribute either directly or indirectly any of the securities acquirable
upon exercise in the United States, except in compliance with the U.S. Securities Act; and (iv) has in all other respects complied
with the terms of Regulation S of the U.S. Securities Act.

 

The
undersigned hereby directs that the Common Shares subscribed for be registered and delivered as follows:

 

	Name
    in Full	 	Address
    (include Postal Code)	 	Number
    of Common Shares
	 	 	 	 	 
	 	 	 	 	 

DATED this _______ day of ___________________, 20___.

 

	By:	 	 
	 	Authorized
    Signatory	 

 

    	 

    	 

    

 

SCHEDULE
C

 

SUBSCRIPTION
FORM

(U.S. Warrantholders)

 

	TO:	CANIVATE
    GROWING SYSTEMS LTD.

 

The
undersigned hereby subscribes for ____________ common shares (“Common Shares”) of Canivate Growing Systems
Ltd. (the “Corporation”) (or such other number of Common Shares or other securities to which such subscription
entitles the undersigned in lieu thereof or in addition thereto) pursuant to the provisions of the warrant certificate (the “Warrant
Certificate”) dated as of issued by the Corporation to the Warrantholder (as defined in the Warrant Certificate) at
the purchase price of $0.50 (Cdn) per Common Share (or at such other purchase price as may then be in effect under the provisions
of the Warrant Certificate) and on and subject to the other terms and conditions specified in the Warrant and encloses herewith
a cheque, bank draft or money order or has transmitted good same day funds by wire or other similar transfer in lawful money of
Canada payable to or to the order of the Corporation in payment of the subscription price.

 

The
undersigned is a resident of the United States or is otherwise subject to the securities laws of the United States and as at the
time of exercise hereunder, the undersigned Warrantholder represents, warrants and certifies [Initial, as appropriate]:

 

	[  ]	(a) the undersigned
    Warrantholder is resident in the United States, is a U.S. person, or is exercising the Warrant for the account or benefit
    of a U.S. person or a person in the United States (a “U.S. Holder”), and is an “accredited investor”,
    as defined in Rule 501(a) of Regulation D under the U.S. Securities Act (a “U.S. Accredited Investor”),
    and has completed the U.S. Accredited Investor Status Certificate in the form attached to this subscription form; OR
	 	 
	[  ]	(b) if the undersigned
    Warrantholder is a U.S. Holder, the undersigned Warrantholder has delivered to the Corporation and its registrar and transfer
    agent an opinion of counsel (which will not be sufficient unless it is in form and substance satisfactory to the Corporation)
    or such other evidence satisfactory to the Corporation to the effect that with respect to the Common Shares to be delivered
    upon exercise of the Warrant, the issuance of such securities has been registered under the U.S. Securities Act and applicable
    state securities laws, or an exemption from the registration requirements of the U.S. Securities Act and applicable state
    securities laws is available.

 

Note:
Certificates representing Common Shares will not be registered or delivered to an address in the United States unless box (a)
or (b) immediately above is initialled.

 

If
the undersigned Warrantholder has indicated that the undersigned Warrantholder is a U.S. Accredited Investor by marking box (a)
above, the undersigned Warrantholder additionally represents and warrants to the Corporation that:

 

	1.	the
    undersigned Warrantholder has such knowledge and experience in financial and business matters as to be capable of evaluating
    the merits and risks of an investment in the Common Shares, and the undersigned is able to bear the economic risk of loss
    of his or her entire investment;

 

    	 

    	-2-

    

 

	2.	the
    undersigned is: (i) purchasing the Common Shares for his or her own account or for the account of one or more U.S. Accredited
    Investors with respect to which the undersigned is exercising sole investment discretion, and not on behalf of any other person;
    (ii) is purchasing the Common Shares for investment purposes only and not with a view to resale, distribution or other disposition
    in violation of United States federal or state securities laws; and (iii) in the case of the purchase by the undersigned of
    the Common Shares as agent or trustee for any other person or persons (each a “Beneficial Purchaser”),
    the undersigned Warrantholder has due and proper authority to act as agent or trustee for and on behalf of each such Beneficial
    Purchaser in connection with the transactions contemplated hereby; provided that: (x) if the undersigned Warrantholder, or
    any Beneficial Purchaser, is a corporation or a partnership, syndicate, trust or other form of unincorporated organization,
    the undersigned Warrantholder or each such Beneficial Purchaser was not incorporated or created solely, nor is it being used
    primarily to permit purchases without a prospectus or registration statement under applicable law; and (y) each Beneficial
    Purchaser, if any, is a U.S. Accredited Investor; and
	 	 
	3.	the
    undersigned has not exercised the Warrants as a result of any form of general solicitation or general advertising (as such
    terms are used in Rule 502 of Regulation D under the U.S. Securities Act), including advertisements, articles, notices or
    other communications published in any newspaper, magazine or similar media, or broadcast over radio, television, the Internet
    or other form of telecommunications, or any seminar or meeting whose attendees have been invited by general solicitation or
    general advertising.

 

If
the undersigned has indicated that the undersigned is a U.S. Accredited Investor by marking box (a) above, the undersigned also
acknowledges and agrees that:

 

	1.	the
    Corporation has provided to the undersigned the opportunity to ask questions and receive answers concerning the terms and
    conditions of the offering, and the undersigned has had access to such information concerning the Corporation as the undersigned
    has considered necessary or appropriate in connection with the undersigned’s investment decision to acquire the Common
    Shares;
	 	 
	2.	if
    the undersigned decides to offer, sell or otherwise transfer any of the Common Shares, the undersigned must not, and will
    not, offer, sell or otherwise transfer any of such Common Shares directly or indirectly, unless:

 

	 	(a)	the
    sale is to the Corporation;
	 	 	 
	 	(b)	the
    sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the U.S.
    Securities Act and in compliance with applicable local laws and regulations;
	 	 	 
	 	(c)	the
    sale is made pursuant to the exemption from the registration requirements under the U.S. Securities Act provided by Rules
    144 or 144A thereunder, if available, and in accordance with any applicable state securities or “blue sky” laws;
    or
	 	 	 
	 	(d)	the
    Common Shares are sold in a transaction that does not require registration under the U.S. Securities Act or any applicable
    state laws and regulations governing the offer and sale of securities, and it has prior to such sale furnished to the Corporation
    an opinion of counsel reasonably satisfactory to the Corporation;

 

	3.	the
    Common Shares are “restricted securities” under applicable federal securities laws and that the U.S. Securities
    Act and the rules of the United States Securities and Exchange Commission provide in substance that the undersigned may dispose
    of the Common Shares only pursuant to an effective registration statement under the U.S. Securities Act or an exemption therefrom;

 

    	 

    	-3-

    

 

	4.	the
    Corporation has no obligation to register any of the Common Shares or to take action so as to permit sales pursuant to the
    U.S. Securities Act (including Rule 144 thereunder);
	 	 
	5.	the
    certificates representing the Common Shares (and any certificates issued in exchange or substitution for the Common Shares)
    will bear a legend stating that such securities have not been registered under the U.S. Securities Act or the securities laws
    of any state of the United States, and may not be offered for sale or sold unless registered under the U.S. Securities Act
    and the securities laws of all applicable states of the United States, or unless an exemption from such registration requirements
    is available;
	 	 
	6.	delivery
    of certificates bearing such a legend may not constitute “good delivery” in settlement of transactions on Canadian
    stock exchanges or over-the-counter markets, but if the Corporation is a “foreign issuer” (within the meaning
    of Regulation S promulgated under the U.S. Securities Act) at the time of sale, a new certificate will be made available to
    the undersigned upon provision by the undersigned of a declaration to the Corporation and its registrar and transfer agent
    (the “Transfer Agent”) in the form attached as Schedule C hereto (or in such other form as the Corporation
    may prescribe from time to time) and, if requested by the Corporation or the Transfer Agent, an opinion of counsel of recognized
    standing in form and substance satisfactory to the Corporation and the Transfer Agent to the effect that such sale is being
    made in compliance with Rule 904 of Regulation S; and provided, further, that, if any Common Shares are being sold otherwise
    than in accordance with Rule 904 of Regulation S and other than to the Corporation, the legend may be removed by delivery
    to the Transfer Agent and the Corporation of an opinion of counsel, of recognized standing reasonably satisfactory to the
    Corporation, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities
    laws;
	 	 
	7.	the
    financial statements of the Corporation have been prepared in accordance with Canadian generally accepted accounting principles
    or International Financial Reporting Standards, which differ in some respects from United States generally accepted accounting
    principles, and thus may not be comparable to financial statements of United States companies; 
	 	 
	8.	there
    may be material tax consequences to the undersigned of an acquisition or disposition of the Common Shares;
	 	 
	9.	the
    Corporation gives no opinion and makes no representation with respect to the tax consequences to the undersigned under United
    States, state, local or foreign tax law of the undersigned’s acquisition or disposition of any Common Shares; in particular,
    no determination has been made whether the Corporation will be a “passive foreign investment company” (commonly
    known as a “PFIC”) within the meaning of Section 1297 of the United States Internal Revenue Code; 
	 	 
	10.	funds
    representing the subscription price for the Common Shares which will be advanced by the undersigned to the Corporation upon
    exercise of the Warrants will not represent proceeds of crime for the purposes of the United States Uniting and Strengthening
    America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”),
    and the undersigned acknowledges that the Corporation may in the future be required by law to disclose the undersigned’s
    name and other information relating to this exercise form and the undersigned’s subscription hereunder, on a confidential
    basis, pursuant to the PATRIOT Act. No portion of the subscription price to be provided by the undersigned (i) has been or
    will be derived from or related to any activity that is deemed criminal under the laws of the United States of America, or
    any other jurisdiction, or (ii) is being tendered on behalf of a person or entity who has not been identified to or by the
    undersigned, and it shall promptly notify the Corporation if the undersigned discovers that any of such representations ceases
    to be true and provide the Corporation with appropriate information in connection therewith;
	 	 
	11.	the
    Corporation is not obligated to remain a “foreign issuer”; and
	 	 
	12.	the
    undersigned consents to the Corporation making a notation on its records or giving instructions to any transfer agent of the
    Corporation in order to implement the restrictions on transfer set forth and described in this subscription form.

 

The
undersigned hereby directs that the Common Shares subscribed for be registered and delivered as follows:

 

	Name
    in Full	 	Address
    (include Postal Code)	 	Number
    of Common Shares
	 	 	 	 	 
	 	 	 	 	 

 

DATED
this _______ day of ___________________, 20___.

 

	By:	 	 
	 	Authorized
    Signatory	 

 

    	 

    	

    

 

APPENDIX
C-1

 

U.S.
ACCREDITED INVESTOR STATUS CERTIFICATE

 

	TO:	CANIVATE GROWING
    SYSTEMS LTD.

 

In
connection with the purchase by the undersigned or the disclosed principal, the undersigned (the “Purchaser”)
hereby represents and warrants that the Purchaser (and, if the Purchaser is acting on behalf of a beneficial purchaser, such beneficial
purchaser) is an “Accredited Investor”, as defined in Rule 501(a) under the United States Securities Act of 1933,
as amended (the “U.S. Securities Act”) as a result of satisfying one or more of the following categories of
Accredited Investor below to which the undersigned has affixed his or her initials (the line identified as “BP” is
to be initialed by the beneficial purchaser, if any, on each line that applies).

 

	_________

                                                                                          

                                                                                         _________

                                                                                         
	 

                               

                               

                              (BP)
	a
    natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his or her purchase
    exceeds US$1,000,000 (for the purposes of calculating net worth: (i) the person’s primary residence shall not be included
    as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value
    of the primary residence at the time of the sale and purchase of securities contemplated by the accompanying Subscription
    Form, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the
    sale and purchase of securities contemplated by the accompanying Subscription Form exceeds the amount outstanding 60 days
    before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included
    as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated
    fair market value of the primary residence shall be included as a liability).
	 	 	 
	________

                                                                              

                                                                             ________

                                                                             
	 

         
(BP)	A
    natural person who had annual gross income during each of the last two full calendar years in excess of US$200,000 (or together
    with his or her spouse in excess of US$300,000) and reasonably expects to have annual gross income in excess of US$200,000
    (or together with his or her spouse in excess of US$300,000) during the current calendar year, and no reason to believe that
    his or her annual gross income will not remain in excess of US$200,000 (or that together with his or her spouse will not remain
    in excess of US$300,000) for the foreseeable future;
	 	 	 
	________

________

        
	 

         
(BP)	Any
    bank as defined in Section 3(a)(2) of the United States Securities Act of 1933, as amended (the “U.S. Securities
    Act”), or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities
    Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the
    U.S. Securities Exchange Act of 1934; any insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; any
    investment company registered under the U.S. Investment Company Act of 1940 or a business development company as defined in
    Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under
    Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958; any plan established and maintained by a state, its
    political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its
    employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the U.S.
    Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section
    3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser,
    or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, with investment decisions
    made solely by persons that are “accredited investors” (as such term is defined in Rule 501 of Regulation D of
    the U.S. Securities Act).

 

    	 

    	-2-

    

 

	________ 

        ________

        
	 

                               
(BP)	Any
    private business development company as defined in Section 202(a)(22) of the U.S. Investment Advisers Act of 1940.
	 	 	 
	________
 

                                                                                                                                                   ________

        

        
	 

         
(BP)	Any
    organization described in Section 501(c)(3) of the U.S. Internal Revenue Code, corporation, Massachusetts or similar business
    trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess
    of US$5,000,000.
	 	 	 
	________

    

    ________

         

        
	 

         
(BP)	Any
    director or executive officer of Canivate Growing Systems Ltd.
	 	 	 
	
________

         

        ________

        
	 

         
(BP)	Any
    trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered,
    whose purchase is directed by a sophisticated person (being defined as a person who has such knowledge and experience in financial
    and business matters that he or she is capable of evaluating the merits and risks of the prospective investment).
	 	 	 
	________
 

________

         

        
	 

         
(BP)	Any
    entity in which all of the equity owners meet the requirements of at least one of the above categories.

 

DATED
at ____________this________ day of _______________, 20__.

 

	 	By:	 
	 	Name:	
	 	Title:	

 

    	 

    	 

    

 

SCHEDULE
D

 

FORM
OF DECLARATION FOR REMOVAL OF LEGEND

 

	TO:	Canivate
    Growing Systems Ltd. (the “Corporation”)
	 	 
	AND
    TO:	The
    registrar and transfer agent for the securities of Canivate Growing Systems Ltd.

 

The
undersigned (A) acknowledges that the sale of the ________________ Common Shares in the capital of the Corporation represented
by certificate number _______________, to which this declaration relates, is being made in reliance on Rule 904 of Regulation
S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and (B) certifies
that (1) the undersigned is not an “affiliate” (as defined in Rule 405 under the U.S. Securities Act) of the Corporation
or a “distributor”, as defined in Regulation S, or an affiliate of a “distributor”; (2) the offer of such
securities was not made to a person in the United States and either (a) at the time the buy order was originated, the buyer was
outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the
United States, or (b) the transaction was executed on or through the facilities of the Canadian Securities Exchange or any other
designated offshore securities market within the meaning of Rule 902(b) of Regulation S under the U.S. Securities Act, and neither
the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States;
(3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged in any directed selling
efforts in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of “washing
off” the resale restrictions imposed because the securities are “restricted securities” (as such term is defined
in Rule 144(a)(3) under the U.S. Securities Act); (5) the seller does not intend to replace the securities sold in reliance on
Rule 904 of Regulation S under the U.S. Securities Act with fungible unrestricted securities; and (6) the contemplated sale is
not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a
plan or a scheme to evade the registration provisions of the U.S. Securities Act. Unless otherwise specified, terms used herein
have the meanings given to them by Regulation S under the U.S. Securities Act.

 

	Dated:		 

 

	 	 
	Signature
    of individual (if Seller is an individual)	 
	 	 
	Authorized
    signatory (if Seller is not an individual)	 
	 	 
	Name
    of Seller (please print)	 
	 	 
	Name
    of authorized signatory (please print)	 
	 	 
	Official
    capacity of authorized signatory (please print)	 

 

    	 

    	-2-

    

 

Affirmation
by Seller’s Broker-Dealer (Required for sale pursuant to paragraph (B)(2)(b) above)

 

We
have read the foregoing representations of our customer, _________________________ (the “Seller”) dated _______________________,
with regard to the sale, for such Seller’s account, of the securities of the Corporation described therein, and we hereby
affirm that: (a) we have no knowledge that the transaction had been prearranged with a buyer in the United States; (b) the transaction
was executed on or through the facilities of the Canadian Securities Exchange or another “designated offshore securities
market”; (c) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with
the offer and sale of such securities, and (d) no selling concession, fee or other remuneration is being paid to us in connection
with this offer and sale other than the usual and customary broker’s commission that would be received by a person executing
such transaction as agent. Terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

 

	 	 	 
	 	Name
    of Firm	 
	 	 	 
	By:		 
	 	Authorized
    officer	 
	 	 	 
	Date:	 	 

 

    	 

    	 

    

 

SCHEDULE
E

 

FORM
OF TRANSFER

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

(include
name and address of the transferee) Warrants exercisable for common shares of Canivate Growing Systems Ltd. (the “Corporation”)
registered in the name of the undersigned on the register of the Corporation maintained therefor, and hereby irrevocably appoints

 

 

the attorney of the undersigned to transfer the said securities on the books maintained by the Corporation with full power
of substitution.

 

DATED
this _______ day of ___________________, 20___.

 

Signature
of Transferor guaranteed by:

 

	 	 	 
	Medallion
    Signature Guarantee	 	Signature
    of Transferor
	Stamp
    of Transferor	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Address
    of Transferor

 

The
Transferor hereby certifies that:

 

(check
one)

 

	[  ]	the
    transferee was not offered the Warrants in the United States and is not in the United States or a “U.S. Person”
    (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities
    Act”)), and is not acquiring the Warrants for the account or benefit of a person in the United States or a U.S.
    Person; or
	 	 
	[  ]	enclosed
    herewith is an opinion of counsel (which the transferee understands must be satisfactory to the Corporation) to the effect
    that no violation of the U.S. Securities Act or applicable securities laws will result from transfer, exercise or deemed exercise
    of the Warrants.

 

It
is understood that the Corporation may require additional evidence necessary to verify the foregoing.

 

INSTRUCTIONS
FOR TRANSFER

 

	1.	The
    signature of the Warrantholder must correspond with the name written upon the face of this Warrant Certificate in every particular
    without any changes whatsoever.
	 	 
	2.	If
    the Transfer Form is signed by a trustee, executor, administrator, curator, guardian, attorney, officer of a corporation or
    any person acting in a fiduciary or representative capacity, the certificate must be accompanied by evidence of authority
    to sign satisfactory to the Corporation.
	 	 
	3.	The
    signature on the Transfer Form must be guaranteed by a chartered back or trust company, or a member firm of an approved signature
    guarantee medallion program. The guarantor must affix a stamp bearing the actual words: “SIGNATURE GUARANTEED”.
	 	 
	4.	The
    Warrants will only be transferable in accordance with applicable laws. The Warrants and the common shares issuable upon exercise
    thereof have not been and will not be registered under the U.S. Securities Act, or under the securities laws of any state
    of the United States, and may not be transferred to or for the account or benefit of a U.S. person or any person in the United
    States without registration under the U.S. Securities Act and applicable state securities laws, or compliance with the requirements
    of an exemption from registration. “United States” and “U.S. Person” are as defined in Regulation
    S under the U.S. Securities Act.

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