Document:

EXHIBIT
10.2

 

Form
of Pledge Agreement

 

     

     

    

 

COLLATERAL
PLEDGE AGREEMENT

 

This
Collateral Pledge Agreement (the “Agreement”), is entered into this 9th day of July, 2019 by and between
Vegalab, Inc., a Nevada corporation (“Pledgor”), and ______________, a _______ corporation and/or its assigns ("Pledgee"),
collectively referred to hereinafter as the “Parties” or individually referred to as a “Party”.

 

WITNESSETH

 

WHEREAS,
Pledgor has executed a $500,000 Amended Promissory Note payable to Pledgee which is attached hereto and the terms and
conditions of which are made a part hereof (the “Note”); and,

 

WHEREAS,
in order to assure the payment in full of the Note, Pledgor has agreed to grant to Pledgee, a security interest in certain
assets of Pledgor.

 

NOW,
THEREFORE in consideration of the mutual covenants, promises and other good and valuable consideration hereinafter set
forth, the sufficiency of which is hereby acknowledged by the Parties, the Parties do hereby agree as follows:

 

1.       Grant
of Security Interest. Pledgor hereby grants to Pledgee a security interest Pledgor’s present and future
assets, wherever located, including but not limited to the Pledgor’s accounts, chattel paper, inventory, equipment, instruments
including promissory notes, investment property, documents, deposit accounts, letter of credits rights, general intangibles, supporting
obligations and all proceeds and products of the foregoing (“the Collateral). Said security interest shall be evidenced by
the prompt filing of a UCC- 1 Financing Statement with the Nevada Secretary of State. Pledgor shall be allowed to, from time to
time, sell some or all of the Collateral, provided that any Collateral sold will be promptly replaced with other inventory of equal
value and salability and that a new UCC-1 statement is promptly fled with the Nevada Secretary of State.

 

2.       Default.
In the event that Pledgor defaults on any of the terms of the Note, Pledgor agrees that the Collateral may be
immediately transferred and delivered to Pledgee upon Pledgee’s demand and instructions.

 

3.       Modification.
No modification or waiver of any of the terms of this Agreement shall be allowed except by written agreement
signed by both Parties.

 

4.       Choice
of Law. This Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall
be governed by, the laws of the State of Minnesota. The Parties agree that venue for any suit, action, proceeding or litigation
arising out of or in relation to this Agreement will be in any federal or state court in Hennepin County, Minnesota, having subject
matter jurisdiction, and the Parties hereby submit to the jurisdiction of that Court.

 

IN
WITNESS WHEREOF, this Agreement has been executed and delivered as of the date first written above.

 

	PLEDGOR	 	PLEDGEE	 
	 	 	 	 	 	 
	By: 	 	 	By: 	 	 
	 	Name:	 	 	Name:	 
	 	Title:	 	 	Title:EXHIBIT
10.3

 

Form
of Warrant

 

     

     

    

  

VEGALAB,
INC.

 

NONQUALFIED
STOCK WARRANT AGREEMENT

 

THIS AGREEMENT, made this 9th day of February, 2019,
by and between Vegalab, Inc., a Nevada corporation (the “Company”), and ____________., (the “Warrant Holder”);

 

WITNESSETH

 

WHEREAS, the Warrant Holder on the date hereof has made a loan to
the Company; and

 

WHEREAS, to reward and compensate the Warrant Holder for making
said loan, the Company desires to grant to the Warrant Holder a nonqualified stock warrant to purchase shares of its Common Stock;
and

 

WHEREAS, on the date above, the Company’s Board of Directors
authorized the issuance of this non-qualified warrant to the Warrant Holder;

 

NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the Company and the Warrant Holder hereby agree as follows:

 

		1.	Grant
of Warrant. The Company hereby grants to the Warrant Holder, on the date of this agreement, the option to purchase three
million four hundred thousand (3,400,000) shares of Common Stock of the Company (the “Warrant Stock”) subject to the
terms and conditions herein contained,

 

		2.	Warrant
Price. During the term of this Warrant, the purchase price for the shares of Warrant Stock is $1.00 per share purchased.

 

		3.	Term
of Warrant. This warrant is fully exercisable for four (4) years from the date of this agreement. This warrant will
terminate as of the close of business on July 9, 2023 if not exercised.

 

		4.	Exercise
bv Warrant Holder Only. This warrant shall, during the lifetime of the Warrant Holder, be exercisable only by said Warrant
Holder and shall not be transferable by the Warrant Holder, in whole or in part, other than by will or the laws of descent and
distribution.

 

		5.	Manner
of Exercise of Warrant. This warrant is to be exercised by the Warrant Holder (or by the Warrant Holder’s successor
or successors) by giving written notice to the Company of an election to exercise such warrant. Such notice shall specify the number
of shares to be purchased hereunder and shall specify a date (not more than 30 calendar days from the date of notice) on which
the Warrant Holder shall deliver payment of the full price purchase price for the shares being purchased and the Company shall
deliver certificates to the Warrant Holder representing the shares so purchased. Notice shall be delivered to the Company at its
principal place of business. The warrant shall be considered exercised at the time the Company receives such notice.

 

		6.	Rights
as a Shareholder. The Warrant Holder (or the Warrant Holder’s successor or successors) shall have no rights as
a shareholder with respect to any shares covered by this warrant until the issuance of a stock certificate for such shares. No
adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions
or other rights for which the record date is prior to the date such stock certificate is issued.

 

     

     

    

 

		7,	Investment
Purpose. The Company requires as a condition to the grant and exercise of this warrant that any stock acquired pursuant
to this warrant be acquired for only investment if, in the opinion of counsel for the Company, such is required, or deemed advisable
under securities laws or any other applicable law, regulation or rule of any government or governmental agency. In this regard,
if requested by the Company, the Warrant Holder, prior to the acquisition of any shares pursuant to this Warrant, shall execute
an investment letter to the effect that the Warrant Holder is acquiring shares pursuant to the option for investment purposes only
and not with the intention of making any distribution of such shares and will not dispose of the shares in violation of the applicable
federal and state securities laws.

 

		8,	Recapitalizations.
Sales. Mergers, Exchanges, Consolidations. Liquidation. In the event of a stock dividend or stock split, the number
of shares of Warrant Stock and exercise price shall be adjusted accordingly. Similarly, in the event of a sale, merger, exchange,
consolidation or liquidation of the Company, this warrant shall be adjusted accordingly.

 

		9.	Scope
of Agreement. This agreement shall bind and inure to the benefit of the Company and its successors and assigns and the
Warrant Holder and any successor or successors of the Warrant Holder permitted by Paragraph 4 above.

 

IN WITNESS WHEREOF, the Company and the Warrant Holder
have executed this agreement in the manner appropriate to each, as of the day and year first above written.

 

	 	VEGALAB, INC.	 
	 	 	 	 
	 	By	 	 
	 	 	David Selakovic, CEOThe Flowr Corporation: Exhibit 99.2 - Filed by newsfilecorp.com

	THE FLOWR CORPORATION 
	PRIMARY OFFERING OF
      COMMON SHARES 
	July 15, 2019
      

An amended and restated preliminary short form base PREP
prospectus containing important information relating to the securities described
in this document has been filed with the securities regulatory authorities in
each of the provinces of Canada other than Quebec. A copy of the amended and
restated preliminary short form base PREP prospectus, and any amendment, is
required to be delivered to any investor with this document. 

The amended and restated preliminary short form base PREP
prospectus is still subject to completion. There will not be any sale or any
acceptance of an offer to buy the securities until a receipt for the final short
form base PREP prospectus has been issued. 

This document does not provide full disclosure of all
material facts relating to the securities offered. Investors should read the
amended and restated preliminary short form base PREP prospectus, final short
form base PREP prospectus, the supplemented prospectus and any amendment, for
disclosure of those facts, especially risk factors relating to the securities
offered, before making an investment decision. The aforementioned filings can be
found on SEDAR at www.sedar.com. 

Additionally, an amended and restated preliminary
prospectus, containing important information relating to the securities
described in this term sheet, has been filed with the United States Securities
and Exchange Commission as part of a registration statement on Form F-10, in
accordance with the Multijurisdictional Disclosure System established between
Canada and the United States. A copy of such amended and restated preliminary
prospectus, and any amendment, is required to be delivered to any investor that
received this term sheet and expressed an interest in acquiring the securities.
The F-10 is still subject to completion. 

There will not be any sale or any acceptance of an offer to
buy the securities until the Form F-10 has become effective. This term sheet
does not provide full disclosure of all material facts relating to the
securities offered. Investors should read the amended and restated preliminary
prospectus and any amendment for disclosure of those facts, especially risk
factors relating to the securities offered, before making an investment
decision. The aforementioned filings can be found on EDGAR at www.sec.gov.

	ISSUER: 	
      The Flowr Corporation (the “Issuer”). 

	 	
       

	AMOUNT: 	
      ~C$125 million 

	 	
       

	OVER-ALLOTMENT OPTION: 	
      The Issuer has granted the underwriters an over-allotment
      option exercisable for 30 days from the date of closing to purchase up to
      an additional 15% of the Common Shares. 

	 	
       

	USE OF PROCEEDS: 	
      The Issuer intends to use the net proceeds from the
      offering to fund (i) the cash portion of the consideration for the
      acquisition of Holigen (the “Acquisition”); (ii) the fees and expenses
      incurred in connection with the Acquisition; (iii) capital required for
      the construction and development of Holigen’s and the Issuer’s facilities;
      and (iv) working capital and general corporate purposes. 

	 	
       

	LISTING: 	
      “FLWR” / TSX.V; “FLWR” / NASDAQ (to trade following
      pricing) 

	 	
       

	FORM OF OFFERING: 	
      Cross-border offering via short form base PREP prospectus
      in all provinces of Canada, except Quebec, and pursuant to MJDS, via
      prospectus (filed as part of a Form F-10) in the U.S. 

	 	
       

	FORM OF UNDERWRITING: 	
      Fully marketed offering. 

	 	
       

	LOCK-UP: 	
      90 days for Issuer officers, directors and certain other
      shareholders. 

	THE FLOWR CORPORATION 
	PRIMARY OFFERING OF
      COMMON SHARES 
	July 15, 2019
      

	ELIGIBILITY: 	
      The Common Shares will be eligible for Canadian RRSPs,
      RRIFs, RESPs, TFSAs, RDSPs and DPSPs. 

	 	
       

	JOINT BOOKRUNNERS: 	
      Barclays Capital, BMO Capital Markets, Credit Suisse
      Securities. 

	 	
       

	UNDERWRITING FEE: 	
      6.00%. 

	 	
       

	CLOSING: 	
      July 23, 2019.

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