Document:

Exhibit 10.1

 

AKANDA
CORP.

2021
EQUITY INCENTIVE PLAN

 

ADOPTED
BY THE BOARD OF DIRECTORS: August 6, 2021

 

		1.	GENERAL.

 

(a)           Eligible
Award Recipients. Employees, Officers, Directors and Consultants are eligible to receive Awards.

 

(b)           Available
Awards. The Plan provides for the grant of the following types of Awards: (i) Stock Options, and (ii) Restricted Share Unit
Awards.

 

(c)           Purpose.
The Plan, through the grant of Awards, is intended to help the Corporation secure and retain the services of eligible award recipients,
provide incentives for such persons to exert maximum efforts for the success of the Corporation and any Affiliate and provide a means
by which the eligible recipients may benefit from increases in value of the Common Shares.

 

		2.	ADMINISTRATION.

 

(a)           Administration
by the Board. The Board will administer the Plan. The Board may delegate administration of the Plan to a Committee or Committees,
as provided in Section 2(c).

 

(b)           Powers
of the Board. The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i)            To
determine (A) who will be granted Awards; (B) when and how each Award will be granted; (C) what type of Award will be granted;
(D) the provisions of each Award (which need not be identical), including when a person will be permitted to exercise or otherwise
receive cash or Common Shares under the Award; (E) the number of Common Shares subject to, or the cash value of, an Award.

 

(ii)           To
construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for administration
of the Plan and Awards. The Board, in the exercise of these powers, may correct any defect, omission or inconsistency in the Plan or in
any Award Agreement, in a manner and to the extent it will deem necessary or expedient to make the Plan or Award fully effective.

 

(iii)           To
settle all controversies regarding the Plan and Awards granted under it.

 

(iv)           To
accelerate, in whole or in part, the time at which an Award may be exercised or vest (or the time at which cash or Common Shares may be
issued in settlement thereof).

 

(v)           To
suspend or terminate the Plan at any time. Except as otherwise provided in the Plan or an Award Agreement, suspension or termination of
the Plan will not impair a Participant’s rights under the Participant’s then-outstanding Award without the Participant’s
written consent except as provided in subsection (viii) below.

 

     

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(vi)           To
amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, by adopting amendments relating to
Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and/or bringing the Plan or
Awards granted under the Plan into compliance with the requirements for Incentive Stock Options or ensuring that they are exempt from,
or compliant with, the requirements for nonqualified deferred compensation under Section 409A of the Code, subject to the limitations,
if any, of applicable law. If required by applicable law or listing requirements, and except as provided in Section 9(a) relating
to Capitalization Adjustments, the Corporation will seek shareholder approval of any amendment of the Plan that (A) materially increases
the number of Common Shares available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive
Awards under the Plan, (C) materially increases the benefits accruing to Participants under the Plan, (D) materially reduces
the price at which Common Shares may be issued or purchased under the Plan, (E) materially extends the term of the Plan, or (F) materially
expands the types of Awards available for issuance under the Plan. Except as otherwise provided in the Plan or an Award Agreement, no
amendment of the Plan will materially impair a Participant’s rights under an outstanding Award without the Participant’s written
consent.

 

(vii)         To
submit any amendment to the Plan for shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy the
requirements of (A) Section 422 of the Code regarding Incentive Stock Options.

 

(viii)        To
approve forms of Award Agreements for use under the Plan and to amend the terms of any one or more Awards, including, but not limited
to, amendments to provide terms more favorable to the Participant than previously provided in the Award Agreement, subject to any specified
limits in the Plan that are not subject to Board discretion; provided however, that a Participant’s rights under any Award
will not be impaired by any such amendment unless (A) the Corporation requests the consent of the affected Participant, and (B) such
Participant consents in writing. Notwithstanding the foregoing, (1) a Participant’s rights will not be deemed to have been
impaired by any such amendment if the Board, in its sole discretion, determines that the amendment, taken as a whole, does not materially
impair the Participant’s rights, and (2) subject to the limitations of applicable law, if any, the Board may amend the terms
of any one or more Awards without the affected Participant’s consent (A) to maintain the qualified status of the Award as an
Incentive Stock Option under Section 422 of the Code; (B) to change the terms of an Incentive Stock Option, if such change results
in impairment of the Award solely because it impairs the qualified status of the Award as an Incentive Stock Option under Section 422
of the Code; (C) to clarify the manner of exemption from, or to bring the Award into compliance with, Section 409A of the Code;
or (D) to comply with other applicable laws or listing requirements.

 

(ix)           Generally,
to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Corporation
and that are not in conflict with the provisions of the Plan or Awards.

 

(x)           To
adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Officers, Directors
or Consultants who are foreign nationals or employed outside the United States (provided that Board approval will not be necessary for
immaterial modifications to the Plan or any Award Agreement that are required for compliance with the laws of the relevant foreign jurisdiction).

 

(xi)           To
effect, with the consent of any adversely affected Participant, (A) the reduction of the exercise, purchase or strike price of any
outstanding Award; (B) the cancellation of any outstanding Award and the grant in substitution therefor of a new (1) Option,
(2) Restricted Share Unit Award, and/or (3) Other Award, determined by the Board, in its sole discretion, with any such substituted
award (x) covering the same or a different number of Common Shares as the cancelled Award and (y) granted under the Plan or
another equity or compensatory plan of the Corporation; or (C) any other action that is treated as a repricing under generally accepted
accounting principles.

 

     

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(c)           Delegation
to Committee.

 

(i)            General.
The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration of the Plan is delegated
to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board
that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or subcommittee,
as applicable). Any delegation of administrative powers will be reflected in resolutions, not inconsistent with the provisions of the
Plan, adopted from time to time by the Board or Committee (as applicable). The Committee may, at any time, abolish the subcommittee and/or
revest in the Committee any powers delegated to the subcommittee. The Board may retain the authority to concurrently administer the Plan
with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.

 

(d)           Delegation
to an Officer. The Board may delegate to one or more Officers the authority to do one or both of the following: (i) designate
Employees who are not Officers to be recipients of Options and SARs (and, to the extent permitted by applicable law, other Awards) and,
to the extent permitted by applicable law, the terms of such Awards, and (ii) determine the number of Common Shares to be subject
to such Awards granted to such Employees; provided, however, that the Board resolutions regarding such delegation will specify
the total number of Common Shares that may be subject to the Awards granted by such Officer and that such Officer may not grant an Award
to himself or herself. Any such Awards will be granted on the form of Award Agreement most recently approved for use by the Committee
or the Board, unless otherwise provided in the resolutions approving the delegation authority. The Board may not delegate authority to
an Officer who is acting solely in the capacity of an Officer (and not also as a Director) to determine the Market Value pursuant to Section 14(w)(i)B
below.

 

(e)           Effect
of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith will not be subject
to review by any person and will be final, binding and conclusive on all persons.

 

		3.	SHARES SUBJECT TO THE PLAN.

 

(a)           Share
Reserve. Subject to Section 9(a) relating to Capitalization Adjustments and any subsequent amendment to this Plan, the aggregate
number of shares reserved for issuance pursuant to Awards granted under this Plan, including any options granted under previous stock
option plans outstanding as of the date of this Plan, shall not exceed [20%] of the Corporation’s total issued and outstanding Common
Shares from time to time. This Plan is considered an “evergreen” plan, since the shares covered by Awards which have been
exercised or terminated shall be available for subsequent grants under the Plan and the number of Awards available to grant increases
as the number of issued and outstanding Shares increases.

 

(b)           To
the extent any Awards (or portion(s) thereof) under this Plan are exercised, terminate or are cancelled for any reason prior to exercise
in full, any shares subject to such Awards (or portion(s) thereof) shall be added back to the number of shares reserved for issuance
under this Plan and will again become available for issuance pursuant to the exercise of Awards granted under this Plan.

 

(c)           Any
shares issued by the Corporation through the assumption or substitution of outstanding stock options or other equity-based awards from
an acquired company shall not reduce the number of Shares available for issuance pursuant to the exercise of Awards granted under this
Plan.

 

     

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(d)           For
clarity, the Share Reserve in this Section 3(a) is a limitation on the number of Common Shares that may be issued pursuant to
the Plan. Accordingly, this Section 3(a) does not limit the granting of SAR Awards or any Other Award not involving, whether
by election or otherwise, the issuance of Common Shares to the Participant.

 

(e)           Reversion
of Shares to the Share Reserve. If an Award or any portion thereof (i) expires or otherwise terminates without all of the shares
covered by such Award having been issued or (ii) is settled in cash (i.e., the Participant receives cash rather than stock),
such expiration, termination or settlement will not reduce (or otherwise offset) the number of Common Shares that may be available for
issuance under the Plan. If any Common Shares issued pursuant to an Award are forfeited back to or repurchased by the Corporation because
of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares that are forfeited
or repurchased will revert to and again become available for issuance under the Plan. Any shares reacquired by the Corporation in satisfaction
of tax withholding obligations on an Award or as consideration for the exercise or purchase price of an Award will again become available
for issuance under the Plan.

 

(f)            Source
of Shares. The shares issuable under the Plan will be shares of authorized but unissued Common Shares.

 

		4.	ELIGIBILITY.

 

(a)           Eligibility
for Specific Awards. Incentive Stock Options may be granted only to applicable employees of the Corporation or a “parent corporation”
or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e) and 424(f) of the Code).
Awards other than Incentive Stock Options may be granted to Employees, Officers, Directors and Consultants.

 

(b)           Ten
Percent Shareholders. A Ten Percent Shareholder will not be granted an Incentive Stock Option unless the exercise price of such Option
is at least 110% of the Market Value on the date of grant and the Option is not exercisable after the expiration of five years from
the date of grant.

 

		5.	PROVISIONS RELATING TO OPTIONS AND STOCK APPRECIATION RIGHTS.

 

Each Option or SAR
will be in such form and will contain such terms and conditions as the Board deems appropriate. All Options will be separately designated
Incentive Stock Options or Non-Incentive Stock Options at the time of grant, and, if certificates are issued, a separate certificate
or certificates will be issued for Common Shares purchased on exercise of each type of Option. If an Option is not specifically designated
as an Incentive Stock Option, or if an Option is designated as an Incentive Stock Option but some portion or all of the Option fails to
qualify as an Incentive Stock Option under the applicable rules, then the Option (or portion thereof) will be a Non-Incentive Stock Option.
The provisions of separate Options or SARs need not be identical; provided, however, that each Award Agreement will conform to
(through incorporation of provisions hereof by reference in the applicable Award Agreement or otherwise) the substance of each of the
following provisions:

 

(a)           Term.
Subject to the provisions of Section 4(b) regarding Ten Percent Shareholders, no Option or SAR will be exercisable after the
expiration of 10 years from the date of its grant or such shorter period specified in the Award Agreement.

 

(b)           Exercise
Price. Subject to the provisions of Section 4(b) regarding Ten Percent Shareholders, the exercise or strike price of each
Option or SAR will be not less than 100% of the Market Value of the Common Shares subject to the Option or SAR on the date the Award is
granted. Notwithstanding the foregoing, an Option or SAR may be granted with an exercise or strike price lower than 100% of the Market
Value of the Common Shares subject to the Award if such Award is granted pursuant to an assumption of or substitution for another option
or stock appreciation right pursuant to a Corporate Transaction; provided that such grant is permitted under applicable Securities Laws
and Stock Exchange Rules and, to the extent relevant to the Participant, is made in a manner consistent with the provisions of Section 409A
of the Code and, if applicable, Section 424(a) of the Code. Each SAR will be denominated in Common Share equivalents.

 

     

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(c)           Purchase
Price for Options. The purchase price of Common Shares acquired pursuant to the exercise of an Option may be paid, to the extent permitted
by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below.
The Board will have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the
ability to use certain methods) and to grant Options that require the consent of the Corporation to use a particular method of payment.
The permitted methods of payment are as follows:

 

(i)            by
cash, certified cheque, bank draft or money order payable to the Corporation;

 

(ii)           if
an Option is a Non-Incentive Stock Option, by a “net exercise” arrangement pursuant to which the Corporation will reduce the
number of Common Shares issuable upon exercise by the largest whole number of shares with a Market Value that does not exceed the aggregate
exercise price; provided, however, that the Corporation will accept a cash or other payment from the Participant to the extent
of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued. Common
Shares will no longer be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon
exercise are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant
as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or

 

(iii)           in
any other form of legal consideration that may be acceptable to the Board and specified in the applicable Award Agreement.

 

(d)           Exercise
and Payment of a SAR. To exercise any outstanding SAR, the Participant must provide written notice of exercise to the Corporation
in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such SAR. The appreciation distribution payable
on the exercise of a SAR will be not greater than an amount equal to the excess of (A) the aggregate Market Value (on the date of
the exercise of the SAR) of a number of Common Shares equal to the number of Common Share equivalents in which the Participant is vested
under such SAR, and with respect to which the Participant is exercising the SAR on such date, over (B) the aggregate strike price
of the number of Common Share equivalents with respect to which the Participant is exercising the SAR on such date. The appreciation distribution
may be paid in Common Shares, in cash, in any combination of the two or in any other form of consideration, as determined by the Board
and contained in the Award Agreement evidencing such SAR.

 

(e)           Transferability
of Options and SARs. Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and
the Corporation or as otherwise expressly consented to by the Board, Options and SARs shall not be assignable, transferable or negotiable
(whether by operation of law or otherwise) and may not be assigned or transferred other than by will or the laws of descent and distribution.

 

(f)            Vesting
Generally. The total number of Common Shares subject to an Option or SAR may vest and therefore become exercisable in periodic installments
that may or may not be equal. The Option or SAR may be subject to such other terms and conditions on the time or times when it may or
may not be exercised (which may be based on the satisfaction of performance goals or other criteria) as the Board may deem appropriate.
The vesting provisions of individual Options or SARs may vary. The provisions of this Section 5(f) are subject to any Option
or SAR provisions governing the minimum number of Common Shares as to which an Option or SAR may be exercised.

 

     

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(g)           Termination
of Continuous Service. Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and
the Corporation, if a Participant’s Continuous Service terminates (other than for Cause and other than upon the Participant’s
death or Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise
such Award as of the date of termination of Continuous Service) within the period of time ending on the earlier of (i) the date ninety
(90) days following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the applicable
Award Agreement, which period will not be less than 30 days if necessary to comply with applicable laws unless such termination is
for Cause) and (ii) the expiration of the term of the Option or SAR as set forth in the Award Agreement. If, after termination of
Continuous Service, the Participant does not exercise his or her Option or SAR (as applicable) within the applicable time frame, the Option
or SAR will terminate.

 

(h)           Disability
of Participant. Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and the
Corporation, if a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant
may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of
termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date 12 months following
such termination of Continuous Service (or such longer or shorter period specified in the Award Agreement, which period will not be less
than six months if necessary to comply with applicable laws unless such termination is for Cause), and (ii) the expiration of
the term of the Option or SAR as set forth in the Award Agreement. If, after termination of Continuous Service, the Participant does not
exercise his or her Option or SAR within the applicable time frame, the Option or SAR (as applicable) will terminate.

 

(i)           Death
of Participant. Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and the
Corporation, if (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the
Participant dies within the period (if any) specified in the Award Agreement for exercisability after the termination of the Participant’s
Continuous Service (for a reason other than death), then the Option or SAR may be exercised (to the extent the Participant was entitled
to exercise such Option or SAR as of the date of death) by the Participant’s estate, by a person who acquired the right to exercise
the Option or SAR by bequest or inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death,
but only within the period ending on the earlier of (i) the date 12 months following the date of death (or such longer or shorter
period specified in the Award Agreement, which period will not be less than six months if necessary to comply with applicable laws
unless such termination is for Cause), and (ii) the expiration of the term of such Option or SAR as set forth in the Award Agreement.
If, after the Participant’s death, the Option or SAR is not exercised within the applicable time frame, the Option or SAR (as applicable)
will terminate.

 

(j)            Termination
for Cause. Except as explicitly provided otherwise in a Participant’s Award Agreement or other individual written agreement
between the Corporation or any Affiliate and the Participant, if a Participant’s Continuous Service is terminated for Cause, the
Option or SAR will terminate immediately upon such Participant’s termination of Continuous Service, and the Participant will be
prohibited from exercising his or her Option or SAR from and after the date of such termination of Continuous Service.

 

     

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(k)           Non-Exempt
Employees. If an Option or SAR is granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act
of 1938, as amended, the Option or SAR will not be first exercisable for any Common Shares until at least six months following the date
of grant of the Option or SAR (although the Award may vest prior to such date). Consistent with the provisions of the Worker Economic
Opportunity Act, (i) if such non-exempt Employee dies or suffers a Disability, (ii) upon a Corporate Transaction in which such
Option or SAR is not assumed, continued, or substituted, (iii) upon a Change in Control, or (iv) upon the Participant’s
retirement (as such term may be defined in the Participant’s Award Agreement, in another agreement between the Participant and the
Corporation, or, if no such definition, in accordance with the Corporation’s then current employment policies and guidelines), the
vested portion of any Options and SARs may be exercised earlier than six months following the date of grant. The foregoing provision is
intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR
will be exempt from his or her regular rate of pay. To the extent permitted and/or required for compliance with the Worker Economic Opportunity
Act to ensure that any income derived by a non-exempt employee in connection with the exercise, vesting or issuance of any shares under
any other Award will be exempt from the employee’s regular rate of pay, the provisions of this Section will apply to all Awards
and are hereby incorporated by reference into such Award Agreements.

 

(l)            Right
of Repurchase. Subject to the “Repurchase Limitation” and any applicable Securities Laws and Stock Exchange Rules,
the Option or SAR may include a provision whereby the Corporation may elect to repurchase all or any part of the vested Common Shares
acquired by the Participant pursuant to the exercise of the Option or SAR.

 

(m)           Right
of First Refusal. Subject to any applicable Securities Laws and Stock Exchange Rules, the Option or SAR may include a provision whereby
the Corporation may elect to exercise a right of first refusal following receipt of notice from the Participant of the intent to transfer
all or any part of the Common Shares received upon the exercise of the Option. Such right of first refusal will be subject to the “Repurchase Limitation”.
Except as expressly provided in this Section or in the Award Agreement, such right of first refusal will otherwise comply with any
applicable provisions of the bylaws of the Corporation.

 

		6.	PROVISIONS OF AWARDS OTHER THAN OPTIONS AND SARS.

 

(a)           Restricted
Share Unit Awards. Each Restricted Share Unit Award Agreement will be in such form and will contain such terms and conditions as the
will Board deem appropriate. The terms and conditions of Restricted Share Unit Award Agreements may change from time to time, and the
terms and conditions of separate Restricted Share Unit Award Agreements need not be identical. Each Restricted Share Unit Award Agreement
will conform to (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the
following provisions:

 

(i)            Consideration.
At the time of grant of a Restricted Share Unit Award, the Board will determine the consideration, if any, to be paid by the Participant
upon delivery of each Common Share subject to the Restricted Share Unit Award. The consideration to be paid (if any) by the Participant
for each Common Share subject to a Restricted Share Unit Award may be paid in any form of legal consideration that may be acceptable to
the Board, in its sole discretion, and permissible under applicable law.

 

(ii)           Vesting.
At the time of the grant of a Restricted Share Unit Award, the Board may impose such restrictions on or conditions to the vesting of the
Restricted Share Unit Award as it, in its sole discretion, deems appropriate.

 

(iii)           Payment.
A Restricted Share Unit Award may be settled by the delivery of Common Shares, their cash equivalent, any combination thereof or in any
other form of consideration, as determined by the Board and contained in the Restricted Share Unit Award Agreement.

 

     

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(iv)           Additional
Restrictions. At the time of the grant of a Restricted Share Unit Award, the Board, as it deems appropriate, may impose such restrictions
or conditions that delay the delivery of the Common Shares (or their cash equivalent) subject to a Restricted Share Unit Award to a time
after the vesting of such Restricted Share Unit Award.

 

(v)           Dividend
Equivalents. Dividend equivalents may be credited in respect of Common Shares covered by a Restricted Share Unit Award, as determined
by the Board and contained in the Restricted Share Unit Award Agreement. At the sole discretion of the Board, such dividend equivalents
may be converted into additional Common Shares covered by the Restricted Share Unit Award in such manner as determined by the Board. Any
additional shares covered by the Restricted Share Unit Award credited by reason of such dividend equivalents will be subject to all of
the same terms and conditions of the underlying Restricted Share Unit Award Agreement to which they relate.

 

(vi)           Termination
of Participant’s Continuous Service. Except as otherwise provided in the applicable Restricted Share Unit Award Agreement, such
portion of the Restricted Share Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous
Service.

 

(vii)           Compliance
with Section 409A of the Code. Notwithstanding anything to the contrary set forth herein, any Restricted Share Unit Award granted
under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Restricted
Share Unit Award will comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by
the Board and contained in the Restricted Share Unit Award Agreement evidencing such Restricted Share Unit Award. For example, such restrictions
may include, without limitation, a requirement that any Common Share that is to be issued in a year following the year in which the Restricted
Share Unit Award vests must be issued in accordance with a fixed pre-determined schedule.

 

(b)           Other
Awards. Other forms of Awards valued in whole or in part by reference to, or otherwise based on, Common Shares, including the appreciation
in value thereof may be granted either alone or in addition to Awards provided for under Section 5 and the preceding provisions of
this Section 6. Subject to the provisions of the Plan, the Board will have sole and complete authority to determine the persons to
whom and the time or times at which such Other Awards will be granted, the number of Common Shares (or the cash equivalent thereof) to
be granted pursuant to such Other Awards and all other terms and conditions of such Other Awards.

 

		7.	COVENANTS OF THE COMPANY.

 

(a)           Availability
of Shares. The Corporation will keep available at all times the number of Common Shares reasonably required to satisfy then-outstanding
Awards.

 

(b)           Securities
Law Compliance. The Corporation will seek to obtain from each securities commission or other regulatory body having jurisdiction over
the Plan, as necessary, such authority as may be required to grant Awards and to issue and sell Common Shares upon exercise or vesting
of the Awards; provided, however, that this undertaking will not require the Corporation to register or qualify by prospectus under
applicable Securities Laws, the Plan, any Award or any Common Shares issued or issuable pursuant to any such Award. If, after reasonable
efforts and at a reasonable cost, the Corporation is unable to obtain from any such regulatory commission or agency the authority that
counsel for the Corporation deems necessary or advisable for the lawful issuance and sale of Common Shares under the Plan, the Corporation
will be relieved from any liability for failure to issue and sell Common Shares upon exercise or vesting of such Awards unless and until
such authority is obtained. A Participant will not be eligible for the grant of an Award or the subsequent issuance of cash or Common
Shares pursuant to the Award if such grant or issuance would be in violation of any applicable securities law.

 

     

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(c)           No
Obligation to Notify or Minimize Taxes. The Corporation will have no duty or obligation to any Participant to advise such holder as
to the tax treatment or time or manner of exercising such Award. Furthermore, the Corporation will have no duty or obligation to warn
or otherwise advise such holder of a pending termination or expiration of an Award or a possible period in which the Award may not be
exercised. The Corporation has no duty or obligation to minimize the tax consequences of an Award to the holder of such Award.

 

		8.	MISCELLANEOUS.

 

(a)           Use
of Proceeds from Sales of Common Shares. Proceeds from the sale of Common Shares pursuant to Awards will constitute general funds
of the Corporation.

 

(b)           Corporate
Action Constituting Grant of Awards. Corporate action constituting a grant by the Corporation of an Award to any Participant will
be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument,
certificate, or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that
the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms
(e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Award Agreement or related grant
documents as a result of a clerical error in the papering of the Award Agreement or related grant documents, the corporate records will
control and the Participant will have no legally binding right to the incorrect term in the Award Agreement or related grant documents.

 

(c)           Shareholder
Rights. No Participant will be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Common Shares
subject to an Award unless and until (i) such Participant has satisfied all requirements for exercise of, or the issuance of Common
Shares under, the Award pursuant to its terms, and (ii) the issuance of the Common Shares subject to the Award has been entered into
the books and records of the Corporation.

 

(d)           No
Employment or Other Service Rights. Nothing in the Plan, any Award Agreement or any other instrument executed thereunder or in connection
with any Award granted pursuant thereto will confer upon any Participant any right to continue to serve the Corporation or an Affiliate
in the capacity in effect at the time the Award was granted or will affect the right of the Corporation or an Affiliate to terminate (i) the
employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms
of such Consultant’s agreement with the Corporation or an Affiliate, or (iii) the service of a Director pursuant to the bylaws
of the Corporation or an Affiliate, and any applicable provisions of the corporate law of the state of foreign jurisdiction in which the
Corporation or the Affiliate is domiciled or incorporated, as the case may be.

 

(e)           Change
in Time Commitment. In the event a Participant’s regular level of time commitment in the performance of his or her services
for the Corporation and any Affiliates is reduced (for example, and without limitation, if the Participant is an Employee of the Corporation
and the Employee has a change in status from a full-time Employee to a part-time Employee or takes an extended leave of absence) after
the date of grant of any Award to the Participant, the Board has the right in its sole discretion to (x) make a corresponding reduction
in the number of shares or cash amount subject to any portion of such Award that is scheduled to vest or become payable after the date
of such change in time commitment, and (y) in lieu of or in combination with such a reduction, extend the vesting or payment schedule
applicable to such Award. In the event of any such reduction, the Participant will have no right with respect to any portion of the Award
that is so reduced or extended.

 

     

    - 10 - 

    

 

(f)            Incentive
Stock Option Limitations. To the extent that the aggregate Market Value (determined at the time of grant) of Common Shares with respect
to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the
Corporation and any Affiliates) exceeds $100,000 (or such other limit established in the Code) or otherwise does not comply with the rules governing
Incentive Stock Options, the Options or portions thereof that exceed such limit (according to the order in which they were granted) or
otherwise do not comply with such rules will be treated as Non-Incentive Stock Options, notwithstanding any contrary provision of
the applicable Option Agreement(s).

 

(g)           Investment
Assurances. The Corporation may require a Participant, as a condition of exercising or acquiring Common Shares under any Award, (i) to
give written assurances satisfactory to the Corporation as to the Participant’s knowledge and experience in financial and business
matters and/or to employ a purchaser representative reasonably satisfactory to the Corporation who is knowledgeable and experienced in
financial and business matters and that the Participant is capable of evaluating, alone or together with the purchaser representative,
the merits and risks of exercising the Award; and (ii) to give written assurances satisfactory to the Corporation stating that the
Participant is acquiring Common Shares subject to the Award for the Participant’s own account and not with any present intention
of selling or otherwise distributing the Common Shares. The foregoing requirements, and any assurances given pursuant to such requirements,
will be inoperative if as to any particular requirement, a determination is made by counsel for the Corporation that such requirement
need not be met in the circumstances under the then applicable Securities Laws. The Corporation may, upon advice of counsel to the Corporation,
place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable
Securities Laws, including, but not limited to, legends restricting the transfer of the Common Shares.

 

(h)           Withholding
Obligations. Unless prohibited by the terms of an Award Agreement, the Corporation may, in its sole discretion, satisfy any federal,
state or local tax withholding obligation relating to an Award by any of the following means or by a combination of such means: (i) causing
the Participant to tender a cash payment; (ii) withholding Common Shares from the Common Shares issued or otherwise issuable to the
Participant in connection with the Award; provided, however, that no Common Shares are withheld with a value exceeding the maximum
amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid classification of the Award as a liability
for financial accounting purposes); (iii) withholding cash from an Award settled in cash; (iv) withholding payment from any
amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Award Agreement.

 

(i)           Deferrals.
To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Shares or the
payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award may be deferred and may establish programs
and procedures for deferral elections to be made by Participants. Deferrals by Participants will be made in accordance with Section 409A
of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee
or otherwise providing services to the Corporation. The Board is authorized to make deferrals of Awards and determine when, and in what
annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous
Service, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

 

     

    - 11 - 

    

 

(j)            Clawback/Recovery.
All Awards granted under the Plan will be subject to recoupment in accordance with any clawback policy that the Corporation is required
to adopt pursuant to the listing standards of any national securities exchange or association on which the Corporation’s securities
are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. In addition,
the Board may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Board determines necessary or
appropriate, including but not limited to a reacquisition right in respect of previously acquired Common Shares or other cash or property
upon the occurrence of Cause. No recovery of compensation under such a clawback policy will be an event giving rise to a right to voluntary
terminate employment upon a “resignation for good reason,” or for a “constructive termination” or any similar
term under any plan of or agreement with the Corporation.

 

(k)           Compliance
with Section 409A of the Code. Unless otherwise expressly provided for in an Award Agreement, the Plan and Award Agreements will
be interpreted to the greatest extent possible in a manner that makes the Plan and the Awards granted hereunder exempt from Section 409A
of the Code, and, to the extent not so exempt, in compliance with Section 409A of the Code. If the Board determines that any Award
granted hereunder is not exempt from and is therefore subject to Section 409A of the Code, the Award Agreement evidencing such Award
will incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code, and
to the extent an Award Agreement is silent on terms necessary for compliance, such terms are hereby incorporated by reference into the
Award Agreement. Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise),
if the Common Shares are publicly traded, and if a Participant holding an Award that constitutes “deferred compensation” under
Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or
payment of any amount that is due because of a “separation from service” (as defined in Section 409A of the Code without
regard to alternative definitions thereunder) will be issued or paid before the date that is six months following the date of such Participant’s
 “separation from service” or, if earlier, the date of the Participant’s death, unless such distribution or payment can
be made in a manner that complies with Section 409A of the Code, and any amounts so deferred will be paid in a lump-sum on the day
after such six month period elapses, with the balance paid thereafter on the original schedule.

 

(l)            Repurchase
Limitation. The terms of any repurchase right will be specified in the Award Agreement. Subject to any applicable Securities Laws
and Stock Exchange Rules, the repurchase price for vested Common Shares will be the Market Value of the Common Shares on the date of repurchase.
Subject to any applicable Securities Laws and Stock Exchange Rules, the repurchase price for unvested Common Shares will be the lower
of (i) the Market Value of the Common Shares on the date of repurchase or (ii) their original purchase price. However, the Corporation
will not exercise its repurchase right until at least six months (or such longer or shorter period of time necessary to avoid classification
of the Award as a liability for financial accounting purposes) have elapsed following delivery of Common Shares subject to the Award,
unless otherwise specifically provided by the Board.

 

		9.	ADJUSTMENTS UPON CHANGES IN COMMON SHARES; OTHER CORPORATE EVENTS.

 

(a)           Capitalization
Adjustments. In the event of a Capitalization Adjustment, the Board will appropriately and proportionately adjust: (i) the class(es)
and maximum number of securities subject to the Plan pursuant to Section 3(a), and (ii)  the class(es) and number of securities
and price per share subject to outstanding Awards. The Board will make such adjustments, and its determination will be final, binding
and conclusive.

 

(b)           Dissolution
or Liquidation. Except as otherwise provided in the Award Agreement, in the event of a dissolution or liquidation of the Corporation,
all outstanding Awards (other than Awards consisting of vested and outstanding Common Shares not subject to a forfeiture condition or
the Corporation’s right of repurchase) will terminate immediately prior to the completion of such dissolution or liquidation, and
the Common Shares subject to the Corporation’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired
by the Corporation notwithstanding the fact that the holder of such Award is providing Continuous Service, provided, however, that
the Board may, in its sole discretion, cause some or all Awards to become fully vested, exercisable and/or no longer subject to repurchase
or forfeiture (to the extent such Awards have not previously expired or terminated) before the dissolution or liquidation is completed
but contingent on its completion.

 

     

    - 12 - 

    

 

(c)           Corporate
Transaction. The following provisions will apply to Awards in the event of a Corporate Transaction unless otherwise provided in the
instrument evidencing the Award or any other written agreement between the Corporation or any Affiliate and the Participant or unless
otherwise expressly provided by the Board at the time of grant of an Award. In the event of a Corporate Transaction, then, notwithstanding
any other provision of the Plan, the Board may take one or more of the following actions with respect to Awards, contingent upon the closing
or completion of the Corporate Transaction:

 

(i)            arrange
for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or
continue the Award or to substitute a similar stock award for the Award (including, but not limited to, an award to acquire the same consideration
paid to the shareholders of the Corporation pursuant to the Corporate Transaction);

 

(ii)           arrange
for the assignment of any reacquisition or repurchase rights held by the Corporation in respect of Common Shares issued pursuant to the
Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);

 

(iii)           accelerate
the vesting, in whole or in part, of the Award (and, if applicable, the time at which the Award may be exercised) to a date prior to the
effective time of such Corporate Transaction as the Board determines (or, if the Board does not determine such a date, to the date that
is five days prior to the effective date of the Corporate Transaction), with such Award terminating if not exercised (if applicable)
at or prior to the effective time of the Corporate Transaction; provided, however, that the Board may require Participants to complete
and deliver to the Corporation a notice of exercise before the effective date of a Corporate Transaction, which exercise is contingent
upon the effectiveness of such Corporate Transaction;

 

(iv)           arrange
for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Corporation with respect to the Award;

 

(v)           cancel
or arrange for the cancellation of the Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction,
in exchange for such cash consideration (including no consideration) as the Board, in its sole discretion, may consider appropriate; and

 

(vi)           make
a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the Participant
would have received upon the exercise of the Award immediately prior to the effective time of the Corporate Transaction, over (B) any
exercise price payable by such holder in connection with such exercise. For clarity, this payment may be zero ($0) if the value of the
property is equal to or less than the exercise price. Payments under this provision may be delayed to the same extent that payment of
consideration to the holders of the Corporation’s Common Shares in connection with the Corporate Transaction is delayed as a result
of escrows, earn outs, holdbacks or any other contingencies.

 

The Board need not take the same action or actions
with respect to all Awards or portions thereof or with respect to all Participants. The Board may take different actions with respect
to the vested and unvested portions of an Award.

 

(d)           Change
in Control. An Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as
may be provided in the Award Agreement for such Award or as may be provided in any other written agreement between the Corporation or
any Affiliate and the Participant, but in the absence of such provision, no such acceleration will occur.

 

     

    - 13 - 

    

 

		10.	PLAN TERM; EARLIER TERMINATION OR SUSPENSION OF THE PLAN.

 

(a)           Plan
Term. The Board may suspend or terminate the Plan at any time. No Incentive Stock Option will be granted after the tenth anniversary
of the earlier of (i) the Adoption Date, or (ii) the date the Plan is approved by the shareholders of the Corporation. No Awards
may be granted under the Plan while the Plan is suspended or after it is terminated.

 

(b)           No
Impairment of Rights. Suspension or termination of the Plan will not impair rights and obligations under any Award granted while the
Plan is in effect except with the written consent of the affected Participant or as otherwise permitted in the Plan.

 

		11.	ASSIGNMENT OF RIGHTS.

 

Any and all rights under Awards and Award Agreements
shall not be assignable, transferable or negotiable (whether by operation of law or otherwise) by the Participant and may not be assigned
or transferred other than by transmission by will or the laws of descent and distribution.

 

		12.	EFFECTIVE DATE OF PLAN.

 

This Plan, as amended and restated, will become
effective on the Effective Date.

 

		13.	CHOICE OF LAW.

 

The laws of the Province of Ontario will govern
all questions concerning the construction, validity and interpretation of this Plan, without regard to that province's conflict of laws
rules.

 

		14.	DEFINITIONS.

 

As used in the Plan, the following definitions
will apply to the capitalized terms indicated below:

 

(a)           “Adoption
Date” means July ___, 2021, which is the date the Plan was adopted by the Board.

 

(b)           “Affiliate”
means, at the time of determination, any “affiliate” of the Corporation, as such term is defined in the Business Corporations
Act (Ontario).

 

(c)           “Award”
means any right to receive Common Shares granted under the Plan, including an Incentive Stock Option, a Non-Incentive Stock Option, a
Restricted Share Unit Award or any Other Award.

 

(d)           “Award
Agreement” means a written agreement between the Corporation and a Participant evidencing the terms and conditions of an
Award.

 

(e)           “Award
Agreement” means a written agreement between the Corporation and a Participant evidencing the terms and conditions of an
Award grant. Each Award Agreement will be subject to the terms and conditions of the Plan.

 

(f)           “Board”
means the Board of Directors of the Corporation.

 

(g)           “Capital
Stock” means each and every class of common stock of the Corporation, regardless of the number of votes per share.

 

     

    - 14 - 

    

 

(h)           “Capitalization
Adjustment” means any change that is made in, or other events that occur with respect to, the Common Shares subject to the
Plan or subject to any Award after the Adoption Date without the receipt of consideration by the Corporation through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend,
stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure, or any
similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards
Codification Topic 718 (or any successor thereto). Notwithstanding the foregoing, the conversion of any convertible securities of the
Corporation will not be treated as a Capitalization Adjustment.

 

(i)           “Cause”
will have the meaning ascribed to such term in any written agreement between the Participant and the Corporation defining such term and,
in the absence of such agreement, such term means, with respect to a Participant, the occurrence of any of the following events: (i) such
Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of Canada, the
United States or any province or state thereof; (ii) such Participant’s attempted commission of, or participation in, a fraud
or act of dishonesty against the Corporation; (iii) such Participant’s intentional, material violation of any contract or agreement
between the Participant and the Corporation or of any statutory duty owed to the Corporation; (iv) such Participant’s unauthorized
use or disclosure of the Corporation’s confidential information or trade secrets; or (v) such Participant’s gross misconduct.
The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause will be made by
the Corporation, in its sole discretion. Any determination by the Corporation that the Continuous Service of a Participant was terminated
with or without Cause for the purposes of outstanding Awards held by such Participant will have no effect upon any determination of the
rights or obligations of the Corporation or such Participant for any other purpose.

 

(j)           “Change
of Control” means the occurrence of one or more of the following events:

 

(i)           any
change in the holding, direct or indirect, of shares in the capital of the Company as a result of which a person or group of persons acting
jointly or in concert, or person associated or affiliated with any such person or group within the meaning of the Securities Act
(Ontario), becomes the beneficial owner, directly or indirectly, of shares and/or other securities in excess of the number which, directly
or following conversion thereof, would entitle the holders thereof to cast more than 50% of the votes attaching to all shares of the Company
which may be cast to elect directors of the Company (the “Company Voting Securities”); provided, however, that the
event described in this paragraph (ii) shall not be deemed to be a Change of Control by virtue of any of the following acquisitions
of Company Voting Securities:

 

A.           by
the Company or any subsidiary;

 

B.            by
any employee benefit plan sponsored or maintained by the Company or any subsidiary;

 

C.            by
any underwriter temporarily holding securities pursuant to an offering of such securities;

 

D.            pursuant
to a Non-Qualifying Transaction (as defined in paragraph (ii)); or

 

E.            from
the Company pursuant to a transaction (other than one described in paragraph (iii)), if a majority of the directors approve a resolution
providing expressly that the acquisition pursuant to this clause E shall not constitute a Change of Control under this paragraph (ii);

 

     

    - 15 - 

    

 

(ii)           the
consummation of a merger, consolidation, share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries
(a “Business Combination”), unless immediately following such Business Combination:

 

A.           Company
Voting Securities that were outstanding immediately prior to the consummation of such Business Combination (or, if applicable, securities
into or for which such Company Voting Securities were converted or exchanged pursuant to such Business Combination) represent more than
50% of the combined voting power of the then outstanding securities eligible to vote for the election of directors or trustees (“voting
power”) of (1) the entity resulting from such Business Combination (the “Surviving Entity”), or (2) if
applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of 100% of the voting securities eligible
to elect directors of the Surviving Entity (the “Parent Entity”); or

 

B.            no
person (other than any employee benefit plan sponsored or maintained by the Surviving Entity or the Parent Entity) is the beneficial owner,
directly or indirectly, of 50% or more of the voting power of the Parent Entity (or, if there is no Parent Entity, the Surviving Entity);

 

(any Business Combination which satisfies all
of the criteria specified in A, B and C above shall be deemed to be a “Non-Qualifying Transaction”);

 

(iii)           the
approval by the Board or shareholders of the Company of a complete liquidation or dissolution of the Company; or

 

(iv)           a
sale or other disposition of all or substantially all of the property or assets of the Company, other than to an affiliate within the
meaning of the Securities Act (Ontario) or pursuant to a Non-Qualifying Transaction.

 

(k)           “Code”
means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.

 

(l)            “Committee”
means a committee of one or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).

 

(m)           “Common
Shares” means the class of Common Shares of the Corporation.

 

(n)           “Consultant”
means any person, including an advisor, who is engaged by the Corporation or an Affiliate to render consulting or advisory services pursuant
to a written consulting agreement, and is compensated for such services. However, service solely as a Director, or payment of a fee for
such service, will not cause a Director to be considered a “Consultant” for purposes of the Plan.

 

(o)           “Continuous
Service” means that the Participant’s service with the Corporation or an Affiliate, whether as an Employee, Officer,
Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Corporation
or an Affiliate as an Employee, Officer, Director or Consultant or a change in the Entity for which the Participant renders such service,
provided that there is no interruption or termination of the Participant’s service with the Corporation or an Affiliate, will not
terminate a Participant’s Continuous Service; provided, however, that if the Entity for which a Participant is rendering
services ceases to qualify as an Affiliate, as determined by the Board in its sole discretion, such Participant’s Continuous Service
will be considered to have terminated on the date such Entity ceases to qualify as an Affiliate. To the extent permitted by law, the Board
or the chief executive officer of the Corporation, in that party’s sole discretion, may determine whether Continuous Service will
be considered interrupted in the case of (i) any leave of absence approved by the Board or chief executive officer, including sick
leave, military leave or any other personal leave, or (ii) transfers between the Corporation, an Affiliate, or their successors.
In addition, to the extent required for exemption from or compliance with Section 409A of the Code, the determination of whether
there has been a termination of Continuous Service will be made, and such term will be construed, in a manner that is consistent with
the definition of “separation from service” as defined under Treasury Regulation Section 1.409A-1(h) (without regard
to any alternative definition thereunder).

 

     

    - 16 - 

    

 

(p)           “Corporate
Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more
of the following events:

 

(i)            a
sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of
the Corporation and its Subsidiaries;

 

(ii)           a
sale or other disposition of more than 50% of the outstanding securities of the Corporation;

 

(iii)           a
merger, consolidation or similar transaction following which the Corporation is not the surviving corporation; or

 

(iv)           a
merger, consolidation or similar transaction following which the Corporation is the surviving corporation but the Common Shares outstanding
immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation
or similar transaction into other property, whether in the form of securities, cash or otherwise.

 

(q)           “Corporation”
means Akanda Corp., an Ontario business corporation.

 

(r)           “Director”
means a member of the Board.

 

(s)           “Disability”
means, with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to
last for a continuous period of not less than twelve (12) months, and will be determined by the Board on the basis of such medical
evidence as the Board deems reasonable under the circumstances.

 

(t)           “Effective
Date” means the effective date of this Plan, which is the earlier of (i) the date that this Plan is first approved
by the Corporation’s shareholders, and (ii) the date this Plan is adopted by the Board.

 

(u)           “Employee”
means any person employed by the Corporation or an Affiliate.

 

(v)           “Entity”
means a corporation, partnership, limited liability company or other entity.

 

(w)           “Market
Value” means,

 

(i)            as
of the date of grant of an Award, the value of the Common Shares determined as follows:

 

A.           If
the Common Shares are listed on the Stock Exchange or traded on any other established market, the Market Value of a Common Share will
be, unless otherwise determined by the Board, the greater of the closing market prices of the underlying securities on (a) the trading
day prior to the date of grant of the Award; and (b) the date of grant of the stock options, and

 

     

    - 17 - 

    

 

B.           In
the absence of such markets for the Common Shares, the Market Value will be determined by the Board in good faith and in a manner that
complies with Section 409A of the Code or, in the case of Incentive Stock Options, in compliance with Section 422 of the Code;
and

 

(ii)           as
of any other relevant date, the value of the Common Shares determined as follows:

 

A.           If
the Common Shares are listed on the Stock Exchange or traded on any other established market, the Market Value of a Common Share will
be, unless otherwise determined by the Board, the closing market price of the underlying securities on the trading day prior to such relevant
date, and

 

B.           In
the absence of such markets for the Common Shares, the Market Value will be determined by the Board in good faith and in a manner that
complies with Section 409A of the Code or, in the case of Incentive Stock Options, in compliance with Section 422 of the Code.

 

(x)           “Incentive
Stock Option” means an option granted pursuant to Section 5 of the Plan that is intended to be, and that qualifies
as, an “incentive stock option” within the meaning of Section 422 of the Code.

 

(y)           “Insider”
has the meaning given to such term in the Stock Exchange Rules, or if the Common Shares are not listed or posted for trading on the Stock
Exchange, the meaning given under Securities Laws.

 

(z)           “Non-Incentive
Stock Option” means an option granted pursuant to Section 5 of the Plan that does not qualify as an Incentive Stock
Option, including an Incentive Stock Option granted to a person not subject to taxation on income under the laws of the United States.

 

(aa)         “Officer”
means a person who is an officer of the Corporation.

 

(bb)         “Option”
means an Incentive Stock Option or a Non-Incentive Stock Option to purchase Common Shares granted pursuant to the Plan.

 

(cc)         “Option
Agreement” means a written agreement between the Corporation and an Optionholder evidencing the terms and conditions of
an Option grant. Each Option Agreement will be subject to the terms and conditions of the Plan.

 

(dd)         “Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

 

(ee)         “Other
Award” means an award based in whole or in part by reference to the Common Shares which is granted pursuant to the terms
and conditions of Section 6(b).

 

(ff)         “Other
Award Agreement” means a written agreement between the Corporation and a holder of an Other Award evidencing the terms and
conditions of an Other Award grant. Each Other Award Agreement will be subject to the terms and conditions of the Plan.

 

(gg)         “Own,”
 “Owned,” “Owner,” “Ownership” A person or Entity will be
deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership”
of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise,
has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

 

     

    - 18 - 

    

 

(hh)         “Participant”
means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.

 

(ii)           “Plan”
means this Akanda Corp. 2021 Equity Incentive Plan.

 

(jj)         “Restricted
Share Unit Award” means a right to receive Common Shares which is granted pursuant to the terms and conditions of Section 11.

 

(kk)         “Restricted
Share Unit Award Agreement” means a written agreement between the Corporation and a holder of a Restricted Share Unit Award
evidencing the terms and conditions of a Restricted Share Unit Award grant. Each Restricted Share Unit Award Agreement will be subject
to the terms and conditions of the Plan.

 

(ll)           “Securities
Laws” means securities legislation, securities regulation and securities rules, as amended, and the policies, notices, instruments
and blanket orders in force from time to time that govern or are applicable to the Corporation or to which it is subject;

 

(mm)       “Stock
Appreciation Right” or “SAR” means a right to receive the appreciation on Common Shares that
is granted pursuant to the terms and conditions of Section 5.

 

(nn)         “Stock
Appreciation Right Agreement” means a written agreement between the Corporation and a holder of a Stock Appreciation Right
evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement will be subject to the
terms and conditions of the Plan.

 

(oo)          “Stock
Exchange” means the Nasdaq Stock Market.

 

(pp)          “Stock
Exchange Rules” means the applicable rules and policies of the Stock Exchange, as such rules and policies may
be amended, supplemented or replaced from time to time

 

(qq)          “Subsidiary”
has the meaning given to it under the Business Corporations Act (Ontario).

 

(rr)         “Ten
Percent Shareholder” means a person, who is subject to taxation on income under the laws of the United States, and who Owns
(or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power
of all classes of shares of the Corporation or any Affiliate.Exhibit 10.2

 

AGREEMENT OF SUBLEASE

 

    

    2

    

 

AGREEMENT OF SUBLEASE

MEMORANDUM OF AGREEMENT OF SUBLEASE

Concluded by and between

 

Mophuthi Matsoso Development Trust (Reg No:TD2015/0015)

 

(Hereinafter referred
to as the “Sub-lessor”)

 

Makhemeng Ts’akholo,
Mafetengand

 

Bophelo
Bioscience and Wellness Proprietary Limited (Reg No: 2018/62924)(Hereinafter referred to as the “Sub-lessee”)

 

Makhemeng Ts’akholo,
Mafeteng.

 

WHEREAS

The Sub-lessor hereby agrees to sublet to Sub-lessee, who agrees
to hire certain properties held by; A Form C

 

(Certificate of Allocation) in terms of Section 23(1) of Land Act 2010

 

NOW THEREFORE THE PARTIES AGREE AS FOLOWS ON THE TERMS AND CONDITIONS
OF THEAFORESAID AGREEMENT

 

1              INTERPRETATION

 

In this agreement -

 

		1.1	clause headings are for the purposes of convenience and reference only and shall not be used in the
interpretation of this agreement;

 

		1.2	unless the context clearly indicates a contrary intention an expression which denotes -

 

		1.2.1	any gender includes the other genders;

 

		1.2.2	a natural person includes an artificial person and vice versa;

 

		1.2.3	the singular includes the plural and vice versa;

 

		1.3	the following expressions shall, unless the context clearly indicates a contrary intention, bear the
following meanings and related expressions shall bear corresponding meanings-

 

		1.3.1	“agreement” -this agreement of lease and all annexes
hereto;

 

		1.3.2	“buildings” - at any relevant time, the greenhouses,
sheds and other building/s on the leased premises and all other improvements of every nature whatever situate on the leased premises;

 

		1.3.3	“commencement date” - notwithstanding the signature
date, 1 April 2019;

 

    

    3

    

 

		1.3.4	“initial period” - the period commencing on the
commencement date and terminating on the 20th anniversary thereof;

 

		1.3.5	“leased premises” subject to the provisions of
clause 4, the 68834 sq msituated on the properties indicated on Annex A;

 

		1.3.6	“parties” - collectively the Sub-lessor and the
Sub-lessee and any reference to“party” shall be deemed to be reference to either one
of them as the context may require;

 

		1.3.7	“permitted business” –the activities described
in clause 12.1

 

		1.3.8	“prime rate” - the rate publicly quoted by The
Standard Bank of South Africa Limited, from time to time, as being its prime rate of interest (expressed as a nominal annual compounded
monthly in arrear rate), calculated on a 365 day a year basis, irrespective of whether or not the year is a leap year and prima facie
proved, in the event of there being a dispute in relation thereto, by a certificate signed by any manager of the aforesaid bank (whose
appointment, qualification or authority need not be proved);

 

		1.3.9	“properties” - collectively the properties described
as South = 1345m, East = 954m, North = 4231m, West = 1397m, East-North = 1510m;

 

		1.3.10	“signature date” – the last date on which
the parties sign this agreement;

 

		1.3.11	“Sub-lessee” - Bophelo Bioscience and Wellness
Proprietary Limited (registration number 2018/62924), a company incorporated in accordance with the laws of The Kingdom of Lesotho;

 

		1.3.12	“Sub-lessor” - Mophuthi Matsoso Development Trust
(Reg No: TD2015/0015)established in accordance with the laws of The Kingdom of Lesotho;

 

		1.3.13	“termination date”- the date on which this
                                                              agreement is terminated for any reason whatsoever;

 

		1.3.14	“VAT” - Value-added Tax as defined in the Vat Act
at the prescribed rate onthe date of supply to which it relates;

 

		1.3.15	“VAT Act”-the Value-added Tax Act of 2001;

 

		1.4	where any term is defined within the context of any particular clause, the term so defined, unless
it is clear from the clause in question that the term so defined has limited application to the relevant clause, shall bear the meaning
ascribed to it in terms of the particular clause for all purposes in terms of this agreement, notwithstanding that the term has not been
defined in this interpretation clause;

 

		1.5	should any provision contained in a definition be a substantive provision conferring any right or
imposing any obligation on any party, then notwithstanding that it is only contained in this interpretation clause effect shall be given
to it as if it were a substantive provision in this agreement;

 

    

    4

    

 

		1.6	when any number of days is prescribed such number shall exclude the first and include the last day
unless the last day falls on a day which is not a business day, in which case the last day shall be the next succeeding business day;

 

		1.7	the use of a specific example (whether or not after the word “including” or “such
                                                         as”) shall not be construed as limiting the meaning of the general wording preceding it
                                                         and the eiusdem generis rule shall not be applied in the interpretation of such general wording or such specific example/s.
                                                         Accordingly, without limiting the generality of the aforegoing, wherever the words “includes” or “including” are
                                                         used in this agreement, the words “without limitation” shall
                                                         be deemed to follow them;

 

		1.8	the rule of construction that the contract shall be interpreted against the party responsible for
the drafting or preparation of the agreement.

 

		1.9	all of the annexes, if any, hereto are deemed to be incorporated herein and shall havethe same force
and effect as if they were contained in the body of this agreement;

 

		1.10	words and/or expressions defined in this agreement shall bear the same meanings when used in the annexes,
if any, hereto;

 

		1.11	a reference to any statutory body or court shall be construed as a reference to that statutory body
or court as at the signature date and as substituted from time to time thereafter by successor statutory bodies or courts, as the case
may be;

 

		1.12	the expiration or termination of this agreement shall not affect such of its provisions as expressly
provide that they shall continue to apply after such expiration or termination or which of necessity must continue to apply after such
expiration ortermination;

 

		1.13	a reference to -

 

		1.13.1	“business day” shall be construed as being any
day other than a Saturday,Sunday or public holiday in Lesotho;

 

		1.13.2	day/s, month/s or year/s shall be construed as day/s, month/s or year/s in the Gregorian calendar;

 

		1.13.3	any written agreement shall be a reference to that agreement as amended,substituted or replaced from
time to time in accordance with its terms;

 

		1.14	no provision of this agreement shall, unless otherwise stipulated, constitute a stipulation for the
benefit of any person (stipulation alteri) who is not a party to this agreement.

 

2              INTRODUCTION

 

It is recorded that the parties agree that the Sub-lessee
shall let from the Sub-lessor the leased premises, upon the terms and conditions set out in this agreement.

 

3              SUB-LEASE

 

The Sub-lessor hereby lets the leased premises to the Sub-lessee
on the terms and conditions set out in this agreement.

 

    

    5

    

 

4              EXTENSION
OF LEASED PREMISES

 

		4.1	The Sub-lessee shall have the right to increase the area of the leased premises, at anytime and on
one occasion or on more than one occasion, by notice in writing to the Sub-lessor so as to include any portion of the properties depicted
on annex B as part of the leased premises, provided that the maximum increase in extent of the leased premises shall not pursuant to the
exercise of the aforesaid right/s exceed an additional 192 hectares.

 

		4.2	Should the Sub-lessee exercise its rights in terms of clause 4.1 the extended area to be comprised
in the leased premises shall be at the discretion of the Sub-lessee but shall be selected from the area shown in annex B and the leased
premises shall be extended with effect from the last day of the month in which such right is exercised by the Sub-lessee in terms of clause
4.1.

 

		4.3	After the area ofthe leased premises has been extended by an additional 194 hectares pursuant
to the exercise by the Sub-lessee of the rights granted to it in terms of clause 4.1, the Sub-lessee shall have the right to further increase
the area of the leased premises, at any time and on one occasion or on more than one occasion, by notice in writing to the Sub-lessor
so as to include any portion of the properties depicted on annex C as part of the leased premises, provided that the maximum increase
in extent of the leased premises shall not pursuant to the exercise of the aforesaid right/s exceed an additional 1 000 hectares.

 

		4.4	Should the Sub-lessee exercise its rights in terms of clause 4.3 the extended area to be comprised
in the leased premises shall be at the discretion of the Sub-lessee but shall be selected from the area shown in annex C and the leased
premises shall be extended with effect from the last day of the month in which such right is exercised by the Sub-lessee in terms of clause
4.3.

 

		4.5	The Sub-lessor undertakes to ensure that the Sub-lessee, its employees, contractors, agents and invitees
are at all times given free and unrestricted access to all parts of the leased premises including the right to traverse the other parts
of the properties if necessary to gain access to any portion of the leased premises.

 

5              REGISTRATION
OF SUBLEASE

 

The Sub-lessor undertakes to procure that-

 

		5.1	it obtains the requisite consent in terms of section 36 of the Land Act 2010 for the Sub-lessor to
sublet the leased premises to the Sub-lessee; and

 

		5.2	after obtaining the consent referred to in clause 5.1 that the lease is registered (as soon as possible
after the aforesaid consent is obtained but in any event within3 month from the date thereof) in terms of the Deeds Registry Act of 1969.
Refer to Annex A.

 

6              DURATION

 

		6.1	This agreement shall commence on the commencement date and shall terminate on the 20th anniversary
of the commencement date subject to such other rights as are vested in the parties in terms of this agreement or in terms of law.

 

    

    6

    

 

		6.2	The Sub-lessee shall have an option (“the first option”)
to renew this lease for a period of 30 years (“the first option period”)
from the termination of the initial period.

 

		6.3	The Sub-lessee shall be entitled to exercise the first option by written notice to the Sub-lessor,
not less than 60 days prior to the termination of the initial period, failing which, the first option shall lapse.

 

		6.4	The first option shall be on the same terms as set out in this lease applicable to the initial period.

 

		6.5	The Sub-lessee shall have an option (“the second option”)
to renew this lease for a period of 30 years (“the second option period”)
from the termination of the first option period.

 

		6.6	The Sub-lessee shall be entitled to exercise the second option by written notice to the Sub-lessor,
not less than 60 days prior to the termination of the first option period, failing which, the second option shall lapse.

 

		6.7	The second option shall be on the same terms as set out in this lease applicable to the initial period.

 

7              RENTAL

 

		7.1	The monthly rental payable by the Sub-lessee to the Sub-lessor in respect of the hire of the leased
premises for the period commencing on the commencement date and terminating on the termination date shall be 350,000 Malotis per month.

 

		7.2	The monthly rental referred to in clause 7.1 shall escalate on each anniversary of the commencement
date (including during any option period if the relevant option is exercised) at the rate of 10% on a compound basis.

 

8              PAYMENT

 

		8.1	The Sub-lessee shall pay the basic monthly rental to the Sub-lessor in Maloti free of any deduction
and/or set-off whatever and free of bank charges and/or commission no later than the 7th of every following month

 

		8.2	Unless expressly notified in writing to the Sub-lessee to the contrary, all amounts payable to the
Sub-lessor in terms of this agreement shall be paid by means of electronic transfer of funds into the Sub-lessor’s
banking account referred to below -

 

	Account holder	 	Mophuthi Matsoso Development Trust
	Bank	 	Nedbank Lesotho
	Branch	 	Mafeteng
	Branch code	-	[*]
	Account number	 	[*]
	Reference	 	Bophelo Rent

 

or such other banking account in Lesotho as the Sub-lessor
may from time to time, inwriting, direct.

 

    

    7

    

 

		8.3	Any rent falling due for payment by the Sub-lessee under this agreement which is not paid on its due
date for payment, shall bear interest at the prime rate, calculated from the due date for payment thereof.

 

		8.4	All amounts payable by the Sub-lessee to the Sub-lessor in terms of this agreement are expressed to
be exclusive of VAT on the basis that the Sub-lessee shall pay the Sub-lessor VAT thereon at the applicable rate as determined in accordance
with the provisions of the Vat Act from time to time.

 

9              DELIVERY
OF KEYS AND REMOTES

 

The Sub-lessee shall deliver all keys to the buildings to
the Sub-lessor not later than 16:30 on the termination date. The Sub-lessee shall be responsible for all costs incurred by the Sub-lessor
in obtaining new keys should the Sub-lessee fail to deliver the keys as aforesaid.

 

10            ELECTRICITY,
WATER, GAS AND OTHER OUTGOINGS

 

		10.1	The Sub-lessee shall with effect from the commencement date be liable for and pay forthwith on demand
to the Sub-lessor all costs for water, electricity, gas, sanitary fees, refuse removal fees, and any other services consumed by the Sub-lessee
at the leased premises.

 

		10.2	Should the leased premises, or part of the leased premises, be served by specific sub-meters in respect
of electricity, water and/or gas, then the Sub-lessee shall pay to the Sub-lessor, the cost of all electricity, water and/or gas used
in and/or on the leased premises as metered by such sub-meters.

 

		10.3	Should no separate sub meter be installed in respect of any of the services contemplated in terms
of clause 10.1 or should a common sub meter exist for more than the leased premises, such service charges shall be calculated by the Sub-lessor
on a pro rata basis based on the percentage which the hectares comprised in the leased premises bears to the hectares comprised in the
property/ies served by the common sub meter or in respect of which the charges are levied, as the case may be.

 

11            RATES
AND TAXES

 

		11.1	The Sub-lessee shall be liable for and shall pay to the Sub-lessor all rates and taxes, including
assessment rates, business or city improvement district fees, park levies and municipal fees and charges, levied by any competent local
authority in respect of the leased premises in respect of any period during this agreement.

 

		11.2	Should any of the rates, taxes, fees and/or charges contemplated in clause 11.1 be levied in respect
of any area greater than just the leased premises, then the portion payable by the Sub-lessee shall be calculated on a pro rata basis
based on the percentage which the hectares comprised in the leased premises bears to the hectares comprised in the property/ies in respect
of which such amounts are levied.

 

12           PURPOSE
FOR WHICH LEASED PREMISES ARE

 

		12.1	The leased premises are let to the Sub-lessee for the purposes of(i) planting, growing, cultivating,
farming and manufacturing cannabis and all associated and ancillary activities; (ii) use as offices; and (iii) the provision of administration
services. The lessee shall not use the leased premises for any other purpose whatsoever without the prior written consent of the Sub-lessor, which consent
shall not be unreasonably withheld or delayed.

 

    

    8

    

 

		12.2	The Sub-lessee undertakes to make timeous application for any licences and any renewals thereof necessary
for the conduct of the permitted business in the leased premises and to proceed with any such applications without delay.

 

13           MAINTENANCE

 

		13.1	The Sub-lessee shall -

 

		13.1.1	at its own cost, keep and maintain in a clean, good order and condition the buildings and replace
or repair same, as the case may be, which, without derogating from the generality hereof, shall include all fixtures and fittings, electrical
installations, plumbing, geysers and sanitary works, appliances, fire fighting equipment, air-conditioners, doors, roller shutter doors,
door handles, locks, keys, entrances, doors, glass and windows in or serving the leased premises and on termination of this agreement
shall deliver the buildings to the Sub-lessor in the same good order and condition as existed at the commencement date, fair wear and
tear excepted;

 

		13.1.2	prevent any blockage of sewerage or water pipes or septic tanks or drains in or used in connection
with the leased premises and shall remove at its cost any obstruction or blockage in any sewer or water pipe or septic tanks or drains
serving the leased premises and, where necessary, repair the sewer pipe or drain concerned.

 

		13.2	Should the Sub-lessee fail or refuse to maintain or repair the buildings as provided for in terms
of this agreement and remain in default for a period of 30 days after receipt of a written notice calling on the Sub-lessee to rectify
such default, then the Sub-lessor shall be entitled, without prejudice to its other rights in law or in terms of this agreement, to effect
the necessary maintenance or repairs and to claim the costs so incurred from the Sub-lessee.

 

		13.3	The Sub-lessee shall notify the Sub-lessor in writing within 30 business days after the signature
date of any patent defects in the buildings, particularly in respect of taps, toilets, electrical plug points, lighting, locks, keys,
doors, glass and windows. The Sub-lessor undertakes to remedy such defects within a period of 14 days after receipt of the written notice
from the Sub-lessee, or such longer period as may be required in the circumstances.

 

14           CONTRAVENTION OF LAWS

 

		14.1	The Sub-lessee shall not contravene or permit the contravention of any law, by-law or statutory regulation
or the conditions of any licence relating to or affecting the occupation of the leased premises or the carrying on of the Sub-lessee’s
permitted business therein, which may expose the Sub-lessor to any claim, action or prosecution.

 

		14.2	The Sub-lessee shall not contravene any of the conditions of title as set out in the title deed of
the properties on which the leased premises are situated and under which the Sub-lessor holds title, nor any laws which the Sub-lessor
is required to observe, by reason of its ownership of the leased premises.

 

    

    9

    

 

		14.3	Should the Sub-lessee contravene any law and the Sub-lessor be penalised in any way as a result thereof,
the Sub-lessor shall be entitled to recover any loss or damageeither incurred or to be incurred in the future, from the Sub-lessee.

 

15           ALTERATIONS,
ADDITIONS, FIXTURES AND FITTINGS

 

		15.1	The Sub-lessor shall not be under any obligation or liability to make any applications in respect
of, do any work or make any alterations or repairs to the buildings in order to comply with the requirements of any local authority or
other applicable laws and regulations.

 

		15.2	The Sub-lessee shall be entitled to -

 

		15.2.1	effect or cause to allow to be effected to the leased premises and/or to any buildings, any alterations
or additions or improvements or renovations (collectively “the improvements”),
whether external, internal, structural, non-structural or of any other nature whatsoever, without the prior consent of the Sub-lessor;
and/or

 

		15.2.2	erect any other buildings or structures of any nature whatever on the leased premises, without the
prior consent of the Sub-lessor.

 

		15.3	The Sub-lessee shall be entitled to exercise its rights in terms of clause 15.2 provided that the
-

 

		15.3.1	plans and specifications for the works shall be prepared by an architect approved by the Sub-lessor
and submitted to the Sub-lessor for approval, which approval shall not be unreasonably withheld or delayed;

 

		15.3.2	work shall be carried out by a contractor(s) reasonably approved by the Sub-lessor under the supervision
of the Sub-lessor’s architect and/or other professional consultant(s) nominated by the Sub-lessor
for such purpose;

 

		15.3.3	reasonable professional fees and charges of the Sub-lessor’s
architect, quantity surveyor, consulting engineer and/or other professional consultant(s) shall be borne by the Sub-lessee.

 

		15.4	Upon the termination of this agreement for any reason whatever the Sub-lessee shall have no claim
of whatever nature against the Sub-lessor for the value and/or cost of any improvements effected to the leased premises and/or the buildings,
whether or not such improvements were effected at the cost of the Sub-lessee, and the Sub-lessor shall be deemed to have become the owner
of such improvements upon the installation thereof.

 

		15.5	The Sub-lessee shall be entitled from time to time without the Sub-lessor’s
consent, to erect on the buildings such fixtures and fittings as may be required or necessary for the carrying on of the permitted business
therein, provided that should this agreement be terminated for any reason whatever -

 

		15.5.1	all such fixtures and fittings erected by the Sub-lessee in the buildings shall, only if the Sub-lessee
elects, be removed by the Sub-lessee upon the termination of this agreement, failing which such fixtures and fittings shall become the
Sub-lessor’s property;

 

    

    10

    

 

		15.5.2	any damage caused to the buildings as a result of any removal by the Sub-lessee of fixtures and fittings,
in respect of which the Sub-lessee haselected to remove, shall be made good at the Sub-lessee’s
expense;

 

		15.5.3	the Sub-lessee shall not be entitled to any compensation from the Sub-lessor for any improvements
made.

 

16            SUB-LESSEE’S
GENERAL OBLIGATIONS AND RESTRICTIONS

 

The Sub-lessee shall be-

 

		16.1	liable to repair and/or replace, at its cost, all damage of whatever nature caused to the buildings;

 

		16.2	entitled to modify the electrical installations of the buildings on the basis that the Sub-lessee
shall be liable for all costs of such modification/s;

 

		16.3	responsible for ensuring the safety, safe use and maintenance of the electrical installations in the
buildings.

 

17            SUBLETTING

 

The Sub-lessee shall not-

 

		17.1	cede, assign, transfer, alienate, hypothecate or otherwise dispose of any rights and/or obligations
under this agreement; and/or

 

		17.2	sub-let the leased premises or any part thereof; and/or

 

		17.3	give up occupation or possession of the leased premises or any part thereof, to any person;

 

without the Sub-lessor’s
prior written consent, which consent shall not be unreasonablywithheld or delayed.

 

18       RIGHT OF FIRST REFUSAL

 

		18.1	The Sub-lessor hereby agrees that should it wish to sell any of the properties and/or any portion
thereof and/or any right in and to any such properties held by the Sub-lessor (collectively “the
sale property”), the Sub-lessor shall be obliged to first offer the sale property for sale
to the Sub-lessee upon the following terms and conditions -

 

		18.1.1	the offer shall be made in writing to the Sub-lessee and shall contain the price which the Sub-lessor
requires for the sale property and all other terms and conditions upon which the Sub-lessor is prepared to sell the sale property(“the
offer”);

 

		18.1.2	the Sub-lessee shall be afforded 30 days from receipt of the offer to accept the offer by furnishing
the Sub-lessor with a written acceptance to that effect. Should the Sub-lessee accept the offer as aforesaid, the Sub-lessee shall be
obliged to furnish the Sub-lessor, within 45 days of such written acceptance,

 

    

    11

    

 

 

with a guarantee/s issued by a registered bank or financial
institution, which guarantee/s shall secure payment of the purchase price of the sale property and shall be in such form as may be reasonably
approved by the Sub-lessor and be expressed to be payable free of exchange by electronic transfer in favour of the Sub-lessor or the Sub-lessor’s
nominee on the date of transferof the sale property to the Sub-lessee;

 

		18.1.3	should the Sub-lessee refuse or fail to accept the offer timeously, the Sub-lessor shall be entitled forthwith upon the date of expiry
of the offer period or the date of such refusal, whichever is the earlier, to sell the sale property to any bona fide third party, provided
that such sale shall be at a price not less than and on terms and conditions no less onerous than the price and terms and conditions contained
in the offer to the Sub-lessee.

 

		18.2	The Sub-lessee hereby acknowledges and agrees that the Sub-lessee’s right of first refusal as set out in shall automatically
terminate and cease to be of any force or effect should this agreement be cancelled for any reason whatever.

 

		18.3	The Sub-lessor agrees that it shall only be entitled to sell the sale property to another party as envisaged in terms of clause 18.1.3,
if such purchaser agrees in writing, in favour of the Sub-lessee, to be bound by the provisions of this agreement.

 

		19	WARRANTIES

 

		19.1	The Sub-lessor gives the Sub-lessee the warranties in (“the warranties”) on the basisthat this agreement is entered into
by the Sub-lessee relying on the warranties, each of which is deemed to be a material warranty inducing the Sub-lessee to enter into this
agreement.

 

		19.2	Each warranty shall be a separate warranty and shall in no way be limited to or restricted by reference to or by inference from the
terms of any other warranty.

 

		19.3	The Sub-lessor warrants to the Sub-lessee that -

 

		19.3.1	it has the lawful right to occupy the properties;

 

		19.3.2	it is not precluded in any way from entering into this agreement and giving the Sub-lessee the rights granted to the Sub-lessee in
terms of this agreement;

 

		19.3.3	no other person has the right to occupy the properties;

 

		19.3.4	no person has any pre-emptive right, right of first refusal, option or other right of any nature whatever to buy any of the properties;
and

 

		19.3.5	the properties are unencumbered.

 

		19.4	It is agreed that, the Sub-lessee shall be entitled, without prejudice to its other rights in law or in terms hereof, to cancel this
agreement as a consequence of any breach by the Sub-lessor of any of the warranties.

 

    

    12

    

 

		20	BREACH

 

Save as otherwise provided herein should the -

 

		20.1	Sub-lessee commit a breach of any provision of this agreement and fail to remedy such breach within 14 days after receiving written
notice from the Sub-lessor requiring the Sub-lessee to remedy such breach, then the Sub-lessor shall be entitled, without prejudice to
the Sub-lessor’s other rights in law, to cancel this agreement, or to claim immediate specific performance of all of the Sub-lessee’s
obligations then due for performance, in either event without prejudice to the Sub-lessor’s right to claim damages; or

 

		20.2	Sub-lessor commit a breach of any provision of this agreement and fail to remedy such breach within 14 days after receiving written
notice from the Sub-lessee requiring the Sub-lessor to remedy such breach, then the Sub-lessee shall be entitled, without prejudice to
its other rights in law, to cancel this agreement or to claim immediate specific performance of all of the Sub-lessor’s obligations
then due for performance, in either event without prejudice to the Sub-lessee’s right to claim damages.

 

		21	DOMICILIA AND NOTICES

 

		21.1	The parties choose domicilium citandi et executandi for all purposes of the giving ofany notice, the payment of any sum, the serving
of any process and for any other purpose arising from this agreement, as follows -

 

	21.1.1	Sub-	Ts’akholo, Makhemeng, Mafeteng
	 	 	 
	 	lessor	makhemeng@makhemeng.co.za
	 	 	 
	 	email	 
	21.1.2	 	Bophelo Bioscience and Wellness (Pty) Ltd
	 	 	 
	 	Sub-lessee	Marked for the attention of: Louisa Maliako Mojela
	 	 	makhemeng@makhemeng.co.za
	 	 	 
	 	email	 

 

		21.2	Each of the parties shall be entitled from time to time, by written notice to the others, to vary its domicilium to any other physical
address within Lesotho.

 

		21.3	Any notice given and any payment made by any party to any other which is delivered by hand during the normal business hours of the
addressee at the addressee’s domicilium for the time being shall be presumed to have been received by the addressee at the time
of delivery.

 

		21.4	Notwithstanding anything to the contrary contained in this clause written notice or other communication actually received by a party
shall be adequate written notice or communication to it notwithstanding that the notice was not sent or delivered to itschosen address
or electronic mail address.

 

		22	APPLICABLE LAW

 

This agreement (including its validity, existence and implementation,
the interpretation and application of its provisions, the respective rights and obligations of the parties in terms of and arising out
of the conclusion, and termination of the provisions of this agreement), shall be interpreted and governed in all respects by the laws
of The Kingdom of Lesotho.

 

    

    13

    

 

		23	JURISDICTION

 

Save as otherwise provided herein, the parties hereby consent
to the non-exclusive jurisdiction of the Courts of The Kingdom Lesotho Commercial Division in respect of any action or legal proceedings
which may arise out of or in connection with this agreement, its interpretation, validity or termination.

 

		24	ARBITRATION

 

		24.1	Save for those provisions in this agreement which provide for their own remedies and for the purposes of this a “dispute”
shall mean any dispute which arises between the parties in connection with -

 

		24.1.1	the formation or existence;

 

		24.1.2	the implementation;

 

		24.1.3	the interpretation or application of the provisions;

 

		24.1.4	the parties’ respective rights and obligations in terms of or arising out of theconclusion, breach or termination;

 

		24.1.5	the validity, enforceability, rectification, termination or cancellation, whetherin whole or in part;

 

		24.1.6	any documents furnished by the parties pursuant to the provisions, 

 

of this agreement or which relates in any way to any matter
affecting the interests of the parties in terms of this agreement. The parties agree that any dispute shall, unless resolved amongst the
parties to the dispute, be referred to and be determined by arbitration.

 

		24.2	The parties hereby consent to the arbitration being dealt with in terms of the laws of The Kingdom of Lesotho.

 

		24.3	Any party to this agreement may demand that a dispute be determined in terms of this clause 24 by written notice given to the other
parties.

 

		24.4	This clause 24 shall not preclude any party from obtaining interim relief by way of motion proceedings (including on an urgent basis)
from a court of law pending the decision of the arbitrator.

 

		24.5	Only the parties and their representatives (including legal representatives) shall be entitled to attend the arbitration hearing.

 

		24.6	The parties agree to keep the arbitration including the subject-matter of the arbitration and the evidence heard during the arbitration
confidential and not to disclose it to anyone except for purposes of a court order to be made in terms of clause 24.4.

 

		24.7	The award of the arbitrator shall be final and binding on the parties to the dispute and may be made an order of the court at the
instance of any of the parties to the dispute.

 

    

    14

    

 

The parties agree that as between them the arbitral award shall
be final and bindingand have the effect of a court order.

 

		24.8	Any arbitral award shall not be subject to a right of appeal.

 

		24.9	The provisions of this clause -

 

		24.9.1	constitute an irrevocable consent by the parties to any proceedings in terms hereof and no party shall be entitled to withdraw therefrom
or claim at any such proceedings that it is not bound by such provisions; and

 

		24.9.2	are severable from the rest of this agreement and shall remain in effect despite the termination of or invalidity for any reason of
this agreement.

 

		24.10	The parties agree that the written demand by any party in terms of that the dispute be submitted to arbitration, shall be deemed to
be a legal process for the purpose ofinterruption of extinctive prescription in terms of the Prescription Act of Lesotho

 

		25	COSTS

 

Each party shall pay its own costs and charges
in connection with and incidental to the negotiation, drafting and execution of this agreement.

 

		26	GENERAL

 

		26.1	This document constitutes the sole record of the agreement between the parties inrelation to the subject matter hereof.

 

		26.2	Neither party shall be bound by any representation, warranty, promise or the like not recorded herein.

 

		26.3	No addition to, variation, or agreed cancellation of this agreement shall be of any force or effect unless recorded in a written document
and signed by or on behalf of the parties.

 

		26.4	No indulgence which either party (“the grantor”) may grant to the other (“the grantee”) shall constitute a
waiver of any of the rights of the grantor, who shall not thereby be precluded from exercising any rights against the grantee which may
have arisen in the past or which might arise in the future.

 

		26.5	The parties shall at all times act in good faith towards each other and shall not bringany of the other parties into disrepute.

 

		26.6	Each of the parties undertakes at all times to do all such things, perform all such acts and take all such steps and to procure the
doing of all such things, within his/her power and control, as may be open to and is necessary for and incidental to the putting into
effect or maintenance of the terms, conditions and import of this agreement.

 

    

    15

    

 

THUS DONE AND SIGNED AT MAKHEMENG, TSAKHOLO ON THIS                                       20

 

AS WITNESSES

 

	1	/s/ [ILLEGIBLE]	 	 
	 	 	 	/s/ [ILLEGIBLE]
	2	/s/ [ILLEGIBLE]	 	SUB- LESSOR

 

THUS DONE AND SIGNED AT MASERU ON THIS          day of                2018

 

AS WITNESSES

 

	1	/s/ [ILLEGIBLE]	 	/s/ [ILLEGIBLE]
	2	/s/ [ILLEGIBLE]	 	SUB-LESSEE

 

    

    

    

 

ANNEX A

 

AS PER BELOW REGISTERED SUB LEASE

 

    

    

    

 

04412-10001

07-03-2019

 

 

LEASE

 

under

 

The Land Act

 

2010

 

 

Land Administration Authority

P.O. Box 11856

MASERU 100

Lesotho

 

    

    

    

 

 

Lease Number: 04412-10001

 

LEASE

(In terms of The Land Act 2010)

 

TO WHOM IT MAY CONCERN

 

THAT: MOPHUTHI MATSOSO DEVELOPMENT TRUST – REGISTERED UNDER

DEEDS REGISTRY ACT 1967

OF: SEA POINT

MASERU

 

Hereinafter referred to as the Lessee, has been granted, accepts
and holds title in land known as:

 

Plot Number:      04412-10001

 

Situated at:         METSI MAHOLO MAFETENG DISTRICT

 

Approximate area: 68834 Square metres more or less

 

As shown on plan number 04412 as held by the Chief Surveyor.

 

Under a Lease issued by the Land Administration Authority pursuant
to the Land Administration Authority Act 2010 and the Land Act 2010, on behalf of and with the authority of:

 

HIS MAJESTY THE KING

 

Subject to the statutory conditions as prescribed in the Land Regulations
and any and all of the following terms and special conditions and general provisions:

 

	1.	Ground rent:

 

		1.01	Annual ground rent shall mean M16 520.16 per year or
such other amount as may be reassessed.

 

	2.	Duration:

 

		2.01	This lease shall come into operation on the 20 February 2019 and shall expire at the end of a sixty (60) Year term on
19 February 2079

 

 

	Land Administration Authority	Page 1 of 4	PO Box 11856, Maseru 100, Lesotho

 

    

    

    

 

3. Special conditions:

 

3.1 The permitted use in respect of
which this lease is granted or issued is: COMMERCIAL

 

3.2 Other special conditions:

 

4. General provisions

 

		4.1	That this title is inheritable subject to the provisions of
Section 35 of the Act and any other law which may be applicable.

 

	4.2	That this lease shall only be terminated by:
	 	(i)       the expiry of
its period; or
	 	(ii)      the surrender
thereof under the provisions of Section 35; or
	 	(iii)its determination pursuant to the provisions of the
Act.

 

		4.3	The Act shall mean the Land Act 2010 and all regulations made
there under.

 

		4.04	This lease shall be governed by revisions of the Act and all
Acts and Regulations now or hereafter applicable to the land.

 

 

Thus done, granted and executed on this 20 February 2019 at
Maseru.

 

	/s/ [ILLEGIBLE]	 	/s/ [ILLEGIBLE]
	Director General	 	Lessee	(signature)
	Land Administration Authority	 	 	 

 

		 	/s/ [ILLEGIBLE]
	 	 	Witness	(signature)
	 	 	 	 
	 	 	Name:	Papali Tsunyane

 

Where the lessee is legal entity the capacity
of the signatory is: representative in exercise of the powers conferred on him/her by a Power of Attorney No        -            /
resolution of the Board of Directors of the Lessee /       -              
dated the 20th day of  February 2019 a certified copy of which is attached hereto.

 

Seal affixed in the presence of the witness.

 

 

Lease number: 04412-10001

 

Registration number: 04412-10001

 

Registration date: 07-03-2019

 

Registration fee: M 100.00

 

Stamp duty: M 360.00

 

 

	Land Administration Authority	Page 3 of 4	PO Box 11856, Maseru 100, Lesotho

 

    

    

    

 

	Land Regulations 2011	Regulation 10

 

Statutory conditions

 

		1.	Unless the Minister directs otherwise the Lessee shall fence the boundaries of the land within 6 (six) months of the date of the grant
and the Lessee shall maintain the fence to the satisfaction of the Director General.

 

		2.	Unless special written authority is given by the Commissioner of Lands, the Lessee shall commence development of the land within 5
years of the date of the granting of a lease. This shall also apply to further development of the land held under a lease during the term
of the lease.

 

		3.	Within a period of the time to be fixed by the planning authority, the Lessee shall provide at his own expense main drainage or main
sewerage connections from the building erected on the land as the planning authority may require.

 

		4.	In the event of any main building erected on the land being dismantled, destroyed, demolished or removed, the Lessee shall replace
the building within a period specified by the planning authority and sub-regulations (2) and (3) of the Land Regulations 2011 shall apply
where applicable.

 

		5.	The Lessee shall use the land comprised in the lease only for the purpose specified in the lease or in any variation made to the original
lease.

 

		6.	The Lessee shall permit entry on land at any reasonable period of the day by any duly empowered employee, officer or agent of the:

 

(i)Land Administration Authority;

(ii)Government of Lesotho; or

(iii)any statutory corporation or
parastatal organisation established to provide and maintain public utility services.

 

		7.	Save with the written authority of the planning authority, no electrical power or telephone pole or line or water, drainage or sewer
pipe being upon or passing through, over or under the land and no replacement thereof, shall be moved or in any way be interfered with
and reasonable access thereto shall be preserved to allow for inspection, maintenance, repair, renewal and replacement.

 

		8.	Full right and liberty reserved unto the Government of Lesotho freely to exercise or have, or unto the Minister to grant to a statutory
corporation or parastatal organisation, the right freely to exercise or have a public servitude over the land for the purpose of providing
and maintaining public utility services and more particularly for the purpose of erecting telephone or electric power poles, installing
electric or telephone wires and cables, laying down drains, sewers or water pipes and maintaining the same.

 

		9.	The interior and exterior of any building erected on the land and all building additions thereto and all other buildings at any time
erected or standing on the land and walls, drains and other appurtenances, shall be kept by the Lessee in good repair and tenantable condition
to the satisfaction of the planning authority.

 

		10.	No act, matter or thing, whatever, shall be done or permitted to be done upon the land or any part of such land which may cause or
lead to pollution of the environment or result in the creation of any hazard to the health of other persons, or become a nuisance or annoyance
to or damage or in any way interfere with the peace and comfort of adjoining Lessees or the occupiers of adjoining or other land in the
neighbourhood.

 

		11.	The Lessee shall not subdivide the land or part with the possession of any part thereof without the written prior approval of the
planning authority.

 

		12.	A Lessee shall, unless exempted under Section 77(1) or qualifies under Section 77(5), pay a prescribed annual ground rent in advance
not later than the 31st day of March in each year provided that on execution of the lease, the Lessee shall pay any ground rent due for
the period ending the 31st day of March which shall be calculated as follows:

 

(i)where the lease begins to subsist on any day in the month
of April in any calendar year, one whole year’s rent;

(ii)in any other case, one whole year’s rent less
one- twelfth thereof for each complete month of that rental year that has elapsed prior to the date of the grant.

 

		13.	Annual ground rent reserved in the lease shall be subject to revision every three (3) years of the term of the lease and consequent
upon any revision, the amount shall be fair and reasonable having regard to general values and no account shall be taken of any improvements
made by the Lessee to or on the land subsequent to the date of such revision.

 

		14.	Upon application by the Lessee made not later than 6 (six) months before expiry of the term of the lease the Lessee shall be entitled
to the grant of a new lease of the land on terms set by the Director General provided the land or part thereof is not required for any
public purpose.

 

		14.	Upon application by the Lessee made not later than 6 (six) months before expiry of the term of the lease the Lessee shall be entitled
to the grant of a new lease of the land on terms set by the Director General provided the land or part thereof is not required for any
public purpose.

 

 

	Land Administration Authority	Page 4 of 4	PO Box 11856, Maseru 100, Lesotho

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