Document:

Exhibit 10.3

 

EXECUTION VERSION

 

 

 

 

 

 

 

AKERNA CORP.

 

– and –

 

Akerna
Canada Ample Exchange Inc.

 

– and –

 

JOHN PRENTICE

 

– and –

 

ODYSSEY TRUST COMPANY

 

 

 

RIGHTS INDENTURE

 

 

 

 

Providing for the Issue of Certain Contingent
Value Rights

 

 

 

 

 

 

 

 

 

 

      

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1 INTERPRETATION	2
	1.1	DEFINITIONS	2
	1.2	MEANING OF “OUTSTANDING” FOR CERTAIN PURPOSES	5
	1.3	CERTAIN RULES OF INTERPRETATION	5
	1.4	INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.	6
	1.5	APPLICABLE LAW	6
	1.6	DAY NOT A BUSINESS DAY	6
	1.7	CONFLICT	6
	1.8	TIME OF THE ESSENCE	6
	1.9	CURRENCY	6
	1.10	SCHEDULES	7
	ARTICLE 2 ISSUE OF RIGHTS	7
	2.1	CREATION AND ISSUE OF RIGHTS	7
	2.2	TERMS OF RIGHTS	7
	2.3	RIGHTS CERTIFICATES	7
	2.4	SIGNING OF RIGHTS CERTIFICATES	8
	2.5	CERTIFICATION BY THE RIGHTS AGENT	9
	2.6	HOLDER NOT A SHAREHOLDER	9
	2.7	ISSUE IN SUBSTITUTION FOR LOST RIGHTS CERTIFICATE	9
	2.8	REGISTER FOR RIGHTS	10
	2.9	TRANSFER OF RIGHTS	10
	2.10	TRANSFEREE ENTITLED TO REGISTRATION	11
	2.11	REGISTERS OPEN FOR INSPECTION	11
	2.12	OWNERSHIP OF RIGHTS	12
	2.13	EXCHANGE OF RIGHTS CERTIFICATES	12
	2.14	PRINCIPAL OFFICE	12
	ARTICLE 3 DELIVERY OF DEFERRED CONSIDERATION	12
	3.1	METHOD OF DELIVERY OF DEFERRED CONSIDERATION	12
	3.2	PAYMENT MECHANISM	13
	3.3	CANCELLATION OF RIGHTS	13
	3.4	RIGHTS VOID	13
	3.5	ACCOUNTING AND RECORDING	13
	ARTICLE 4 COVENANTS OF AKERNA AND EXCHANGECO	14
	4.1	MAINTENANCE	14
	4.2	TO PAY RIGHTS AGENT REMUNERATION AND EXPENSES	14
	4.3	TO PERFORM COVENANTS	14
	4.4	RIGHTS AGENT MAY PERFORM COVENANTS	14
	4.5	CREATION AND ISSUE OF THE RIGHTS	15

 

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	ARTICLE 5 ROLE OF RIGHTS AGENT	15
	5.1	ROLE AS RIGHTS AGENT	15
	ARTICLE 6 ENFORCEMENT	15
	6.1	SUITS BY HOLDERS OF RIGHTS	15
	6.2	WAIVER OF DEFAULT	15
	ARTICLE 7 SUCCESSOR ENTITIES	16
	7.1	CERTAIN REQUIREMENTS	16
	7.2	VESTING OF POWERS IN SUCCESSOR ENTITY	16
	ARTICLE 8 NOTICES	16
	8.1	NOTICE TO AKERNA AND THE RIGHTS AGENT	16
	ARTICLE 9 CONCERNING THE RIGHTS AGENT	17
	9.1	NO CONFLICT OF INTEREST	17
	9.2	REPLACEMENT OF RIGHTS AGENT	18
	9.3	EVIDENCE, EXPERTS AND ADVISERS	18
	9.4	RIGHTS AGENT MAY DEAL IN SECURITIES	19
	9.5	RIGHTS AGENT NOT ORDINARILY BOUND	19
	9.6	RIGHTS AGENT NOT REQUIRED TO GIVE SECURITY	19
	9.7	RIGHTS AGENT NOT REQUIRED TO GIVE NOTICE OF DEFAULT	19
	9.8	ACCEPTANCE OF APPOINTMENT	19
	9.9	DUTIES OF RIGHTS AGENT	19
	9.10	ACTIONS BY RIGHTS AGENT	20
	9.11	PROTECTION OF RIGHTS AGENT	20
	9.12	INDEMNIFICATION OF THE RIGHTS AGENT	21
	9.13	THIRD PARTY INTERESTS	21
	9.14	NOT BOUND TO ACT / ANTI-MONEY LAUNDERING	21
	9.15	PRIVACY LAWS	21
	9.16	FORCE MAJEURE	22
	ARTICLE 10 SUPPLEMENTAL INDENTURES	22
	10.1	SUPPLEMENTAL INDENTURES	22
	ARTICLE 11 GENERAL PROVISIONS	22
	11.1	EXECUTION	22
	11.2	AMENDMENT	23
	11.3	FORMAL DATE	23
	11.4	SATISFACTION AND DISCHARGE OF INDENTURE	23
	11.5	PROVISIONS OF INDENTURE AND RIGHTS FOR THE SOLE BENEFIT OF PARTIES AND HOLDERS	23
	11.6	WITHHOLDING	23

 

SCHEDULE “A” – FORM OF RIGHTS CERTIFICATE

 

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THIS RIGHTS INDENTURE dated as of July ___,
2020

 

BETWEEN:

 

AKERNA CORP.,

 

a corporation existing under the laws
of the State of Delaware (“Akerna”)

 

- AND –

 

Akerna
Canada Ample Exchange Inc.

 

a corporation existing under the laws
of the Province of Ontario (“Exchangeco”)

 

- AND –

 

JOHN PRENTICE,

 

an individual resident in the Province
of Ontario

(the “Shareholder Representative”)

 

- AND –

 

ODYSSEY TRUST COMPANY,

 

a trust company existing under the laws
of Alberta (the “Rights Agent”)

 

WHEREAS:

 

		A.	All capitalized terms used in these recitals have the meanings ascribed to them in Section 1.1
below;

 

		B.	Akerna, Ample, Exchangeco and the Shareholder Representative have entered into the Arrangement
Agreement;

 

		C.	Pursuant to the terms of the Arrangement Agreement and the Plan of Arrangement, Akerna and Exchangeco
proposes to issue to the Ample Shareholders the Rights on the terms and conditions herein set forth;

 

		D.	Each Right shall entitle the Holder to receive, without payment of any further consideration and
without further action on the part of the holder thereof, a portion of the Deferred Consideration, which portion shall be determined
in accordance with the Arrangement Agreement and the terms and conditions herein set forth;

 

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		E.	Akerna and Exchangeco are each duly authorized to create and issue the Rights to be issued as herein
provided;

 

		F.	All things necessary have been done and performed to make the Rights, when issued as provided in
this Indenture, legal, valid and binding upon Akerna and Exchangeco with the benefits of and subject to the terms of this Indenture;

 

		G.	The foregoing recitals are made as representations and statements of fact by Akerna and Exchangeco
and not by the Rights Agent; and

 

		H.	The Rights Agent has agreed to act as the rights agent in respect of the Rights on behalf of the
Holders on the terms and conditions herein set forth;

 

NOW THEREFORE THIS INDENTURE WITNESSES
that for good and valuable consideration mutually given and received, the receipt and sufficiency of which are hereby acknowledged,
it is hereby agreed and declared as follows:

 

ARTICLE
1

INTERPRETATION

 

		1.1	DEFINITIONS

 

In this Indenture, including the recitals
and schedules hereto, the following words and phrases shall have the following meanings:

 

		(a)	“Akerna Shares” means the shares in the common stock in the share capital of
Akerna;

 

		(b)	“Allocation Notice” has the meaning ascribed thereto in Section 3.2(a);

 

		(c)	“Ample” means Ample Organics Inc.;

 

		(d)	“Ample Common Shareholders” means the holders of Ample Common Shares immediately
prior to the Closing Time;

 

		(e)	“Ample Common Shares” means the Common Shares in the authorized capital of Ample;

 

		(f)	“Ample Preferred Shareholders” means the holders of Ample Preferred Shares immediately
prior to the Closing Time;

 

		(g)	“Ample Preferred Shares” means each issued and outstanding Class A Preferred
Share in the capital of Ample, being all issued and outstanding Class A-1 Preferred Shares, Class A-2 Preferred Shares and Class
A-3 Preferred Shares;

 

		(h)	“Ample Shareholders” means collectively the Ample Common Shareholders and the
Ample Preferred Shareholders;

 

		(i)	“Arrangement” means an arrangement under the Business Corporations Act
(Ontario) on the terms and subject to the conditions set out in the Plan of Arrangement, subject to any amendments or any variations
to the Plan of Arrangement made in accordance with the terms of the Arrangement Agreement;

 

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		(j)	“Arrangement Agreement” means, collectively, the arrangement agreement dated
December 18, 2019 between Akerna, Ample, Exchangeco and the Shareholder Representative in respect of the Arrangement, as amended
by amending agreements dated February 28, 2020, May 26, 2020 and June 1, 2020, and as such agreement may be further amended from
time to time;

 

		(k)	“Articles” means the certificate and articles of amendment of Ample dated October
1, 2019, as amended or otherwise modified by the Articles of Arrangement (as defined in the Plan of Arrangement);

 

		(l)	“Business Day” means any day, other than Saturday, Sunday or a statutory holiday
in the Province of Alberta;

 

		(m)	“Closing Date” means the date hereof;

 

		(n)	“Closing Time” means the time at which the Arrangement becomes effective on
the Closing Date pursuant to the Business Corporations Act (Ontario);

 

		(o)	“Counsel” means a barrister or solicitor or firm of barristers or solicitors
retained by the Rights Agent or retained or employed by Akerna and acceptable to the Rights Agent, acting reasonably;

 

		(p)	“Court” means the Ontario Superior Court of Justice;

 

		(q)	“Deferred Consideration” means $10,000,000, payable in Exchangeable Shares;
provided that in the event the Recurring Revenue recognized during the Deferred Consideration Period is less than $9,000,000, the
Deferred Consideration amount of $10,000,000 shall be reduced by an amount equal to the product of $6.67 multiplied by the difference
between $9,000,000 and the amount of Recurring Revenue realized during the Deferred Consideration Period (up to a maximum reduction
of $10,000,000), all as calculated in the Deferred Consideration Statement finally determined in accordance with the Arrangement
Agreement;

 

		(r)	“Deferred Consideration Payment Date” means the date that the Deferred Consideration
is payable by Akerna and Exchangeco to the Rights Agent in accordance with Section 2.19 of the Arrangement Agreement;

 

		(s)	“Deferred Consideration Period” means the period of time beginning on the Closing
Date, and ending on the date that is 12 months after the Closing Date;

 

		(t)	“Deferred Consideration Statement” has the meaning ascribed thereto in the Arrangement
Agreement;

 

		(u)	“Director” means a director of Akerna and “Directors” or
“Board of Directors” means the board of directors of Akerna or, whenever duly empowered, a committee of the
board of directors of Akerna, and reference to “action by the directors” means action by the directors of Akerna
as a board or action by a committee as a committee;

 

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		(v)	“distributions” means distributions (payable in cash or in securities, property
or assets of equivalent value) declared payable on Exchangeable Shares;

 

		(w)	“DRS” means the Direct Registration System maintained by the Rights Agent;

 

		(x)	“DRS Advice” means the notification produced by the DRS system evidencing ownership
of the Rights;

 

		(y)	“Exchange Rate” means, on any date of determination, the CAD/USD daily exchange
rate quoted by the Bank of Canada three Business Days prior to such date;

 

		(z)	“Exchangeable Shares” means the redeemable preferred shares in the capital of
Exchangeco;

 

		(aa)	“Exchangeco” means Akerna Canada Ample Exchange Inc.;

 

		(bb)	“Holder” means a Person for the time being who is the registered holder of a
Right;

 

		(cc)	“Indenture” or “this Indenture” and “hereto”,
“herein”, “hereby”, “hereunder”, “hereof” and similar
expressions refer to this instrument and not to any particular Article, Section, clause, subdivision or other portion hereof, and
include each instrument supplemental or ancillary hereto or required to implement this instrument;

 

		(dd)	“NASDAQ” means the National Association of Securities Dealers Automated Quotations
exchange;

 

		(ee)	“Permitted Transfer” means a transfer of Rights (i) upon death of a Holder by
will or intestacy; (b) pursuant to a court order; or (c) by operation of law (including any consolidation or merger) or without
consideration in connection with the dissolution, liquidation or termination of any corporation, limited liability company, partnership
or other entity;

 

		(ff)	“Person” includes any individual, corporation, company, partnership, association,
joint venture, trust, unincorporated association, government or governmental authority;

 

		(gg)	“Plan of Arrangement” means the plan of arrangement attached as Schedule “C”
to the Arrangement Agreement, as amended from time to time;

 

		(hh)	“Recurring Revenue” means all revenue that is derived from or that is associated
with license revenue from Ample’s core seed-to-sale, AmpleCentral and “Last Call Analytics” products;

 

		(ii)	“Regulatory Authorities” means securities regulatory authorities in Canada, the United States and/or a jurisdiction
outside Canada and the United States where a Holder is resident;

 

		(jj)	“Rights” mean the contingent value rights issued and certified hereunder, evidenced
in certificated form by a Rights Certificate or uncertificated form by a DRS Advice, and for the time being outstanding, entitling
Holders thereof to receive Exchangeable Shares, in accordance with the terms hereof, and “Right” means any one
of them;

 

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		(kk)	“Rights Agency” means the transfer office of the Rights Agent in Calgary, Alberta
and such other locations as Akerna may designate, with the approval of the Rights Agent;

 

		(ll)	“Rights Agent” means Odyssey Trust Company or its successor or successors for the time being as rights agent
hereunder, at its offices in Calgary, Alberta;

 

		(mm)	“Rights Certificate” means a certificate in substantially the form set out in
Schedule “A” hereto, issued and certified hereunder to evidence a Right;

 

		(nn)	“Successor Entity” has the meaning ascribed thereto in Section 7.1;

 

		(oo)	“Termination Date” means the date that Akerna and/or Exchangeco fully pays to
the Holders all Deferred Consideration to which such holders are entitled;

 

		(pp)	“United States” means the United States of America, its territories and possessions,
any State of the United States, and the District of Columbia;

 

		(qq)	“U.S. Person” means a “U.S. person” as that term is defined in Rule
902(k) of Regulation S of the U.S. Securities Act;

 

		(rr)	“U.S. Securities Act” means the United States Securities Act of 1933, as
amended;

 

		(ss)	“U.S. Securities Exchange Act” means the United States Securities Exchange
Act of 1934;

 

		(tt)	“written request of Akerna” and “certificate of Akerna” mean,
respectively, a written order, request, consent and certificate signed in the name of Akerna by any one or more of the officers
or Directors of Akerna and may consist of one or more instruments so executed and any other documents referred to herein which
is required or contemplated to be provided or given by Akerna is a document signed on behalf of Akerna by any one or more of such
officers or Directors;

 

and a derivative of any defined word or
phrase has the meaning appropriate to the derivation of the word or phrase.

 

		1.2	MEANING OF “OUTSTANDING” FOR CERTAIN PURPOSES

 

Except as provided in Section 3.4, every
Rights Certificate countersigned and delivered by the Rights Agent or Rights evidenced by a DRS Advice issued under this Indenture
shall be deemed to be outstanding until the Termination Date, provided however that where a Rights Certificate has been issued
in substitution for a Rights Certificate that has been lost, stolen or destroyed, only one of them shall be counted for the purpose
of determining the Rights outstanding.

 

		1.3	CERTAIN RULES OF INTERPRETATION

 

Unless otherwise specified in this Indenture:

 

		(a)	words importing the singular number include the plural and vice versa;

 

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		(b)	words importing gender include both genders and vice versa and words importing individuals
include firms and corporations and vice versa;

 

		(c)	“in writing” or “written” includes printing, typewriting
or any electronic means of communication capable of being visibly reproduced at the point of reception, including facsimile;

 

		(d)	“including” is used for illustration only and not to limit the generality of
any preceding words, whether or not non-limiting language (such as, “without limitation”, “but not
limited to” and similar expressions) is used with reference thereto; and

 

		(e)	reference to any statute, regulation or by-law includes amendments, consolidations, re-enactments
and replacements thereof and instruments and legislation thereunder.

 

		1.4	INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.

 

The division of this Indenture into Articles,
Sections and other subdivisions, the inclusion of a table of contents and the insertion of headings are for convenience of reference
only and do not affect the construction or interpretation of this Indenture.

 

		1.5	APPLICABLE LAW

 

This Indenture, the Rights and the Rights
Certificates shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein. Any and all disputes arising under this Indenture, the Rights and the Rights Certificates, whether as
to interpretation, performance or otherwise, shall be subject to the non-exclusive jurisdiction of the courts of the Province of
Ontario and each of the parties hereto irrevocably attorns to the jurisdiction of the courts of such province.

 

		1.6	DAY NOT A BUSINESS DAY

 

Whenever any payment is due or required
to be made or any other action is required to be taken under this Indenture or the Rights Certificates on or as of a day that is
not a Business Day, that payment must be made and the other action must be taken on or as of the next day that is a Business Day.

 

		1.7	CONFLICT

 

In the event of a conflict or inconsistency
between a provision of this Indenture and in the Rights Certificates issued hereunder, the relevant provision in this Indenture
shall prevail to the extent of the inconsistency.

 

		1.8	TIME OF THE ESSENCE

 

Time shall be of the essence of this Indenture,
the Rights and the Rights Certificates.

 

		1.9	CURRENCY

 

Except as otherwise stated, all dollar
amounts herein are expressed in Canadian dollars.

 

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		1.10	SCHEDULES

 

Schedule “A” to this Indenture
is incorporated into this Indenture by reference.

 

ARTICLE
2

ISSUE OF RIGHTS

 

		2.1	CREATION AND ISSUE OF RIGHTS

 

		(a)	The Rights Agent is hereby appointed rights agent in respect of the Rights.

 

		(b)	Pursuant to the Arrangement Agreement and the Plan of Arrangement, each Ample Shareholder immediately
prior to the Closing Time (other than any Ample Shareholder that validly exercised dissent rights in connection with the Arrangement
and which dissent right remains valid immediately prior to the Closing Time) shall be entitled to a Right upon the Closing Time.

 

		(c)	Pursuant to the Arrangement Agreement and the Plan of Arrangement, to the extent that an Ample
Shareholder who has validly exercised dissent rights in connection with the Arrangement is ultimately deemed to have participated
in the Arrangement on the same basis as a non-dissenting Ample Shareholder, Akerna and Exchangeco shall cause the Rights Agent
to forward the Rights to such Holder, pursuant to the Arrangement Agreement and the Plan of Arrangement and upon the written request
of Akerna.

 

		2.2	TERMS OF RIGHTS

 

		A.	Each Right shall entitle the Holder thereof to receive that portion of the Deferred Consideration
that the initial Holder of such Right is entitled to receive in its capacity as an Ample Shareholder pursuant to the Articles.
The amount of the entitlement attaching to each Right shall be determined in accordance with the Articles and the Plan of Arrangement
by the Shareholder Representative acting reasonably and with reference to the shareholder register of Ample delivered by Ample
as of the Effective Time in accordance with the Arrangement Agreement.

 

		(b)	Akerna and Exchangeco shall remit any Deferred Consideration accruing to a Holder on or before
the Deferred Consideration Payment Date by delivery of Exchangeable Shares in accordance with Section 3.2.

 

		(c)	Subject to the terms and conditions of this Indenture, all Rights shall rank pari passu, whatever
may be the actual date of issue thereof.

 

		(d)	The Rights shall terminate in accordance with the provisions of Section 3.4 and the Plan of Arrangement.

 

		2.3	FORM OF RIGHTS, CERTIFICATED RIGHTS

 

		(a)	The Rights may be issued in both certificated and uncertificated form. All rights issued in certificated
form shall be evidenced by a Rights Certificate (including all replacements issued in accordance with this Indenture). All Rights
issued in uncertificated form will be evidenced by a DRS Advice and reflected on the register of the Rights and in accordance with
the procedures of the Rights Agent for its DRS.

 

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		(b)	The Rights Certificates to be issued to evidence the Rights authorized for issuance pursuant to
Section 2.1 shall be substantially in the form set out in Schedule “A”.

 

		(c)	All Rights Certificates shall be dated as of the date of their issuance, and shall bear such distinguishing
letters and numbers as Akerna may, with the approval of the Rights Agent, prescribe.

 

		(d)	Rights Certificates shall continue to be in the form set out in Schedule “A” and shall
continue to express the Deferred Consideration deliverable thereunder.

 

		(e)	Akerna covenants that (i) the Rights and the Exchangeable Shares issuable pursuant to the Rights
shall be registered or qualified for distribution, or exempt from or not subject to any requirement for registration or qualification
for distribution, under the U.S. Securities Act and the applicable securities laws of U.S. states and (ii) such securities shall
not be “restricted securities” within the meaning of Rule 144 under the U.S. Securities Act or under any other U.S.
federal or state securities laws.

 

		(f)	Any certificates representing Rights, and, if applicable, any certificates representing Exchangeable
Shares issued pursuant to the Rights, and any certificates issued in replacement thereof or in substitution therefor, shall, until
such time as the same is no longer required under applicable requirements of the U.S. Securities Act or applicable state securities
laws, bear a legend in substantially the following form:

 

THE SECURITIES
REPRESENTED HEREBY [For Rights Include: AND THE SECURITIES ISSUABLE PURSUANT THERETO] ARE SUBJECT TO THE TERMS AND CONDITIONS OF
(I) AN ARRANGEMENT AGREEMENT DATED AS OF DECEMBER 18, 2019, as amended by amending agreements
dated February 28, 2020, May 26, 2020 and June 1, 2020; AND (II) A RIGHTS INDENTURE DATED AS OF JULY ___, 2020, INCLUDING
TERMS AND CONDITIONS THAT RESTRICT THE SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE, TRANSFER, OR DISPOSITION OF SUCH SECURITIES.

 

		2.4	SIGNING OF RIGHTS CERTIFICATES

 

The Rights Certificates shall be signed
by any Director or officer of each of Akerna and Exchangeco at or prior to the date of issue of such Rights Certificate and the
date of certification or delivery thereof. The signature of such signing officer may be mechanically reproduced in facsimile or
electronically and Rights Certificates bearing such facsimile or electronic signature shall be binding upon Akerna and Exchangeco
as if they had been manually signed by such signing officer. Notwithstanding that any individual whose manual, facsimile or electronic
signature appears on any Rights Certificate as a signing officer may no longer hold office or a trusteeship, as applicable, at
the date of issue of such Rights Certificate or at the date of certification or delivery thereof, any Rights Certificate signed
as aforesaid shall, subject to Section 2.5, be valid and binding upon Akerna, Exchangeco and the Holder thereof shall be entitled
to the benefits of this Indenture.

 

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		2.5	CERTIFICATION BY THE RIGHTS AGENT

 

		(a)	Rights Certificates evidencing the Rights shall be certified by or on behalf of the Rights Agent
on written direction of Akerna.

 

		(b)	No Rights Certificate shall be issued or, if issued, shall be valid for any purpose or entitle
the Holder to the benefits hereof until it has been certified by manual signature by or on behalf of the Rights Agent substantially
in the form of the certificate set out in Schedule “A”, and such certification by the Rights Agent upon any Rights
Certificate shall be conclusive evidence as against Akerna and Exchangeco that the Rights Certificate so certified has been duly
issued hereunder and that the Holder is entitled to the benefits hereof.

 

		(c)	The certification of the Rights Agent on Rights Certificates issued hereunder shall not be construed
as a representation or warranty by the Rights Agent as to the validity of this Indenture or the Rights Certificates (except the
due certification thereof) and the Rights Agent shall in no respect be liable or answerable for the use made of the Rights Certificates
or any of them or of the consideration therefor except as otherwise specified herein.

 

		2.6	HOLDER NOT A SHAREHOLDER

 

Nothing in this Indenture or in the holding
of a Right itself evidenced by a Rights Certificate, or otherwise, shall be construed as conferring upon a Holder any right or
interest whatsoever as a shareholder of Akerna or Exchangeco, including, but not limited to, the right to vote at, to receive notice
of, or to attend, meetings of shareholders or any other proceedings of Akerna or Exchangeco, or the right to receive distributions,
except as may be provided herein or in the Rights Certificates.

 

		2.7	ISSUE IN SUBSTITUTION FOR LOST RIGHTS CERTIFICATE

 

		(a)	If any of the Rights Certificates shall become mutilated or lost, destroyed or stolen, Akerna and
Exchangeco, subject to applicable law and to Subsection 2.7(b), shall issue and thereupon the Rights Agent shall certify and deliver
a new Rights Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen upon surrender and in place of
and upon cancellation of such mutilated Rights Certificate, or in lieu of and in substitution for such lost, destroyed or stolen
Rights Certificate, and the substituted Rights Certificate shall be in a form approved by the Rights Agent and shall be entitled
to the benefits hereof and shall rank equally in accordance with its terms with all other Rights Certificates issued or to be issued
hereunder.

 

		(b)	The applicant for the issue of a new Rights Certificate pursuant to this Section 2.7 shall bear
the cost of the issue thereof and in case of loss, destruction or theft shall, as a condition precedent to the issue thereof, furnish
to Akerna and to the Rights Agent evidence of ownership and of the loss, destruction or theft of the Rights Certificate so lost,
destroyed or stolen satisfactory to Akerna and to the Rights Agent in their sole discretion, in each case acting reasonably, and
such applicant may also be required to furnish an indemnity or surety bond in amount and form satisfactory to Akerna and the Rights
Agent in their sole discretion, in each case acting reasonably, and shall pay the reasonable charges of Akerna and the Rights Agent
in connection therewith.

 

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		2.8	REGISTER FOR RIGHTS

 

Akerna and Exchangeco shall cause to be
kept by and at the Rights Agency which is the transfer office of the Rights Agent in Calgary, Alberta and in such other place or
places as Akerna with the approval of the Rights Agent may designate, a securities register in which shall be entered the names
and addresses of Holders and the other particulars, prescribed by law, of the Rights held by them. Akerna and Exchangeco shall
also cause to be kept by and at such office the register of transfers, and may also cause to be kept by the Rights Agent or such
other registrar or registrars and at such other place or places as Akerna may designate with the approval of the Rights Agent,
branch registers of transfers (including, without limitation, branch registers of transfers at each of the other Rights Agencies)
in which shall be recorded the particulars of the transfers of Rights registered in that branch register of transfers.

 

		2.9	TRANSFER OF RIGHTS

 

		(a)	The Rights may not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred
or disposed of, in whole or in part, other than through a Permitted Transfer. Any attempted sale, assignment, transfer, pledge,
encumbrance or disposition of Rights, in whole or in part, in violation of this Section 2.9(a) shall be void ab initio and
of no effect.

 

		(b)	Subject to Sections 2.8, 2.9(a) and 2.9(c) and such reasonable requirements as the Rights Agent
may prescribe and all applicable securities laws and requirements of Regulatory Authorities, the Rights may be transferred on the
register kept at the Rights Agency pursuant to a Permitted Transfer by the Holder or its legal representatives or its attorney
duly appointed by an instrument in writing in form and manner of execution satisfactory to the Rights Agent only upon: (i) in the
case of a Rights Certificate, the surrendering of the relevant Rights Certificate with a written instrument of transfer in form
reasonably satisfactory to the Rights Agent; and (ii) in the case of DRS Advices, in accordance with the procedures described by
the Rights Agent. Upon the Holder surrendering the same and/or meeting the requirements set forth above, the Rights Agent shall
issue to the transferee a Rights Certificate or DRS Advice, as applicable, representing the Rights transferred pursuant to the
Permitted Transfer.

 

		(c)	No transfer of a Right shall be effective or shall be entered on the register kept by the Rights
Agent unless the transferee thereof certifies in writing to Akerna’s satisfaction that the transfer is a Permitted Transfer
and:

 

		(i)	the Rights may be transferred in the manner contemplated pursuant to an applicable exemption from
the registration requirements of the U.S. Securities Act and applicable state securities laws; or

 

		(ii)	(A) it is not a U.S. Person; (B) at the time of transfer it is not within the United States; and
(C) it is not acquiring such Right for the account or benefit of a U.S. Person or a Person within the United States.

 

The transferee
shall also be required to acknowledge that it shall notify Akerna prior to the Termination Date if the representations, warranties
and certifications contained in the written instrument of transfer attached to the Rights Certificate, as applicable, are no longer
true and correct.

 

    - 10 -

     

    

 

		(d)	No transfer of a Right shall be valid:

 

		(i)	unless made in accordance with the provisions hereof;

 

		(ii)	until, upon compliance with such reasonable requirements as the Rights Agent may prescribe, such
transfer is recorded on the register maintained by the Rights Agent pursuant to Subsection 2.8; and

 

		(iii)	until all governmental or other charges arising by reason of such transfer have been paid.

 

		(e)	The Rights Agent will promptly advise Akerna of any requested transfer of the Rights. Akerna and
Exchangeco will be entitled, and Akerna may direct the Rights Agent, to refuse to recognize any transfer, or enter the name of
any transferee, of any Rights on the register kept by the Rights Agent, if such transfer is not a Permitted Transfer and/or would
constitute a violation of the securities laws of any jurisdiction or the rules, regulations or policies or any Regulatory Authority
having jurisdiction.

 

		(f)	The transfer register for the Rights shall be closed as of the close on business on the last Business
Day immediately preceding the Termination Date.

 

		2.10	TRANSFEREE ENTITLED TO REGISTRATION

 

The transferee of a Right in accordance
with Sections 2.8 and 2.9 shall, after the written instrument of transfer attached to the Rights Certificate or DRS Advice is duly
completed and the required written instrument(s) of transfer are lodged with the Rights Agent, and upon compliance with all other
conditions in that regard required by this Indenture and by all applicable securities laws and requirements of Regulatory Authorities,
be entitled to have its name entered on the register as the owner of such Right free from all equities or rights of set-off or
counterclaim between Akerna or Exchangeco and its transferor or any previous Holder of such Right, save in respect of equities
of which Akerna or Exchangeco or the transferee is required to take notice by statute or by order of a court of competent jurisdiction.

 

No duty shall rest with the Rights Agent
to determine compliance of the transferee or transferor of any Rights with applicable securities laws. The Rights Agent may assume
for the purposes of this Indenture that the address on the register of Holders of any Holder is the actual address of such Holder
and is also determinative of the residence of such Holder and that the address of any transferee to whom any Rights or other securities
deliverable in connection with any Rights are to be registered, as shown on the transfer document, is the actual address of the
transferee and is also determinative of the residency of the transferee.

 

		2.11	REGISTERS OPEN FOR INSPECTION

 

The registers hereinbefore referred to
shall be open at all reasonable times and upon reasonable notice for inspection by Akerna, Exchangeco, the Rights Agent, the Shareholder
Representative or any Holder. The Rights Agent shall, from time to time when requested to do so in writing by Akerna, furnish Akerna
and/or Exchangeco, upon payment of the Rights Agent’s reasonable charges, with a list of the names and addresses of Holders
entered in the register kept by the Rights Agent and showing the number of Rights held by each such Holder.

 

    - 11 -

     

    

 

		2.12	OWNERSHIP OF RIGHTS

 

		(a)	Akerna, Exchangeco and the Rights Agent may deem and treat the registered Holder of any Rights
Certificate or DRS Advice as the absolute owner of the Right represented thereby for all purposes and Akerna, Exchangeco and the
Rights Agent shall not be affected by any notice or knowledge to the contrary, except where Akerna, Exchangeco or the Rights Agent
is required to take notice by statute or by order of a court of competent jurisdiction. For greater certainty, subject to applicable
law, none of Akerna, Exchangeco nor the Rights Agent shall be bound to take notice of or see to the execution of any trust, whether
express, implied or constructive, in respect of any Right, and may transfer any Right in accordance with Section 2.9 on the direction
of the Person registered as Holder thereof, whether named as rights agent or otherwise, as though that Person were the beneficial
owner thereof.

 

		(b)	Subject to the provisions of this Indenture and applicable law, each Holder shall be entitled to
the rights and privileges attaching to the Rights held thereby.

 

		2.13	EXCHANGE OF RIGHTS CERTIFICATES

 

		(a)	Rights Certificates, representing Rights entitling the Holders to receive Deferred Consideration
may, prior to the Termination Date and upon compliance with the reasonable requirements of the Rights Agent, be exchanged for another
Rights Certificate or Rights Certificates entitling the Holder thereof to receive any Deferred Consideration payable under the
Rights Certificate or Rights Certificates so exchanged of equal aggregate amount.

 

		(b)	Rights Certificates may be exchanged only at the Rights Agency or at any other place that is designated
by Akerna with the approval of the Rights Agent. Any Rights Certificates tendered for exchange shall be surrendered to the Rights
Agent and shall be cancelled.

 

		(c)	Except as otherwise herein provided, the Rights Agent shall charge to the Holder requesting an
exchange a reasonable sum for each new Rights Certificate issued in exchange for a surrendered Rights Certificate(s).

 

		2.14	PRINCIPAL OFFICE

 

If the principal transfer office of the
Rights Agent in the city where the Rights Agency is situated is for any reason not available to act in connection with the exchange
of Rights Certificates as contemplated by this Indenture, Akerna and the Rights Agent shall arrange for another office in such
city to act in connection with the exchange of Rights Certificates and shall give notice of the change of such office to the Shareholder
Representative.

 

ARTICLE
3

DELIVERY OF DEFERRED CONSIDERATION

 

		3.1	METHOD OF DELIVERY OF DEFERRED CONSIDERATION

 

At least three (3) Business Days prior
to the Deferred Consideration Payment Date determined in accordance with the Arrangement Agreement, Akerna shall provide the Rights
Agent with a written notice setting out the Deferred Consideration Payment Date, the amount and kind of Deferred Consideration
to be issued to the Holders in accordance with the Deferred Consideration Statement finally determined in accordance with the Arrangement
Agreement, together with a detailed description of the calculation thereof in accordance with Section 3.2.

 

    - 12 -

     

    

 

		3.2	PAYMENT MECHANISM

 

		(a)	The aggregate number of Exchangeable Shares to be issued in respect of all Rights held by the Holders
shall be equal to the quotient obtained by dividing: (i) the amount of the Deferred Consideration payable in accordance with Section
2.2, divided by (ii) the 20 day volume weighted average price of the Akerna Shares (converted to Canadian dollars from US dollars
using the Exchange Rate as of the Deferred Consideration Payment Date) as quoted on the NASDAQ on the last trading day immediately
preceding the Deferred Consideration Payment Date.

 

		(b)	Following the determination of the aggregate number of Exchangeable Shares to be issued in accordance
with Section 3.2(a), the Shareholder Representative shall provide written notice (the “Allocation Notice”) to
the Rights Agent, Akerna and Exchangeco setting forth the Seller Representative’s final determination with respect to number
of Exchangeable Shares payable in respect of each Right, together with instructions for the issuance of Exchangeable Shares to
each Holder of a Right in satisfaction of the obligations of Akerna and Exchangeco thereunder.

 

		(c)	On the Deferred Consideration Payment Date, Akerna and Exchangeco shall cause the Rights Agent
to deliver Exchangeable Shares to the Holders in accordance with the instructions set forth in the Allocation Notice.

 

		(d)	No certificates or other entitlements to fractional Exchangeable Shares shall be issued to any
Holder, and any Holder otherwise entitled to a fractional interest in an Exchangeable Share will receive the nearest whole number
of Exchangeable Shares (with fractions equal to or greater than 0.5 being rounded up and fractions less than 0.5 being rounded
down).

 

		3.3	CANCELLATION OF RIGHTS

 

At the Termination Date, all Rights Certificates
shall be cancelled.

 

		3.4	RIGHTS VOID

 

The Rights shall, as at the Termination
Date, be null, void and of no effect.

 

		3.5	ACCOUNTING AND RECORDING

 

Exchangeco shall cause its registrar and
transfer agent to account to the Rights Agent with respect to the issuance of Exchangeable Shares as soon as reasonably practicable
upon such issuance. Such accounting will include the particulars of the issuance of Exchangeable Shares pursuant to the Rights,
including the names and addresses of the Persons who become holders of Exchangeable Shares pursuant to the Rights and the certificate
numbers. The Rights Agent shall rely, and shall be protected in so doing, upon the certificate of Exchangeco or of its registrar
and transfer agent and any other document filed by Exchangeco pursuant to this Section for all purposes.

 

Any instruments, from time to time received
by the Rights Agent, shall be received in trust for, and shall be segregated and kept apart by the Rights Agent in trust for, Akerna.

 

    - 13 -

     

    

 

ARTICLE
4

COVENANTS OF AKERNA AND EXCHANGECO

 

		4.1	MAINTENANCE

 

So long as any Rights are outstanding,
each of Akerna and Exchangeco shall use its commercially reasonable efforts to at all times maintain its existence, carry on and
conduct its business, and that of its material subsidiaries, in accordance with good business practice.

 

		4.2	TO PAY RIGHTS AGENT REMUNERATION AND EXPENSES

 

Akerna covenants that it shall pay to the
Rights Agent from time to time reasonable remuneration for its services hereunder and shall pay or reimburse the Rights Agent upon
its request for all expenses, disbursements and advances incurred or made by the Rights Agent in the administration or execution
of its duties hereunder (including the reasonable compensation and the disbursements of its Counsel and all other advisors and
assistants not regularly in its employ) both before any default hereunder and thereafter until all duties of the Rights Agent hereunder
shall be finally and fully performed and even after the termination of this Indenture, except any such expenses, disbursement or
advance as may arise out of or result from the Rights Agent’s gross negligence, wilful misconduct or bad faith. Such remuneration
which shall remain unpaid for a period of 30 Business Days after invoicing shall incur interest at the rate then charged by the
Rights Agent to its corporate clients. The Rights Agent shall not have any recourse against the securities or any other property
held by it pursuant to this Indenture for payment of its fees. This Section 4.2 shall survive the resignation or removal of the
Rights Agent and the termination and discharge of this Indenture. The Rights Agent shall have no obligation to take any action
under this Indenture so long as any payment remains due to the Rights Agent for any reasonable fees, expenses and disbursements.

 

		4.3	TO PERFORM COVENANTS

 

Each of Akerna and Exchangeco shall perform
and carry out all of the acts or things to be done by it as provided in this Indenture and shall promptly advise the Rights Agent
in writing of any material default by Akerna or Exchangeco in the performance of its covenants hereunder.

 

		4.4	RIGHTS AGENT MAY PERFORM COVENANTS

 

If Akerna or Exchangeco fails to perform
any of its covenants contained in this Indenture, the Rights Agent, upon receipt of written notice from Akerna or Exchangeco of
such failure to perform, shall notify the Shareholder Representative of such failure on the part of Akerna or may itself perform
any of the covenants capable of being performed by it but, subject to ARTICLE 9, shall be under no obligation to perform said covenants
or to notify the Shareholder Representative that it is doing so. All sums expended or advanced by the Rights Agent in so doing
shall be repayable as provided in Section 4.2, but the Rights Agent shall not be required to expend or risk its own funds. No such
performance, expenditure or advance by the Rights Agent shall relieve Akerna of any default hereunder or of its continuing obligations
under the covenants herein contained.

 

    - 14 -

     

    

 

		4.5	CREATION AND ISSUE OF THE RIGHTS

 

Akerna and Exchangeco are each duly authorized
to create and issue the Rights and, the Rights, when issued and countersigned as herein provided, shall be valid and enforceable
against Akerna and Exchangeco and, subject to the provisions of this Indenture, Akerna and Exchangeco shall cause the Exchangeable
Shares, to be issued pursuant to ARTICLE 3 under this Indenture and cause the certificates representing such Exchangeable Shares
to be duly issued and delivered in accordance with the Right Certificates and the terms hereof. At all times prior to and as at
the Termination Date, while any of the Rights are outstanding, Exchangeco shall reserve, and Akerna shall cause Exchangeco to reserve,
and there shall be conditionally allotted but unissued out of Exchangeco’s authorized capital that number of Exchangeable
Shares sufficient to enable Akerna and Exchangeco to meet their respective obligations hereunder. All Exchangeable Shares issued
pursuant to the Rights shall be issued as fully paid and non-assessable. Akerna and Exchangeco shall make or cause to be made all
requisite filings, and pay all applicable fees, under applicable securities laws to report the issuance of Exchangeable Shares
pursuant to the Rights.

 

ARTICLE
5

ROLE OF RIGHTS AGENT

 

		5.1	ROLE AS RIGHTS AGENT

 

The Rights Agent accepts its duties and
responsibilities under this Indenture solely as a custodian, bailee and agent, and no trust is intended to be, or is or shall be,
created hereby, except as otherwise expressly stated herein, and the Rights Agent shall owe no duty hereunder as a trustee, except
as otherwise expressly stated herein.

 

ARTICLE
6

ENFORCEMENT

 

		6.1	SUITS BY HOLDERS OF RIGHTS

 

All or any of the rights conferred upon
any Holder by any of the terms of the Rights Certificates or this Indenture may be enforced on behalf of the Holders (or any of
them) by the Shareholder Representative by appropriate legal proceedings but without prejudice to the right which is hereby conferred
upon the Rights Agent to proceed in its own name to enforce each and all of the provisions herein contained for the benefit of
the Holders.

 

		6.2	WAIVER OF DEFAULT

 

Upon the happening of any default hereunder,
the Shareholder Representative shall have the power by requisition in writing to instruct the Rights Agent to waive any default
hereunder and the Rights Agent shall thereupon waive the default upon such terms and conditions as shall be prescribed in such
requisition, provided that no delay or omission of the Rights Agent or of the Shareholder Representative, as applicable, to exercise
any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such
default or acquiescence therein and provided further that no act or omission either of the Rights Agent or the Shareholder Representative
in the premises shall extend to or be taken in any manner whatsoever to affect any subsequent default hereunder or the rights resulting
therefrom.

 

    - 15 -

     

    

 

ARTICLE
7

SUCCESSOR ENTITIES

 

		7.1	CERTAIN REQUIREMENTS

 

Prior to the Termination Date, neither
Akerna nor Exchangeco shall, directly or indirectly, sell, transfer or otherwise dispose of all or substantially all of their respective
properties and assets as an entirety to any other Person and shall not amalgamate or merge with or into any other Person (any such
other Person being herein referred to as a “Successor Entity”) unless:

 

		(a)	the Successor Entity executes, before or contemporaneously with the consummation of any such transaction,
an indenture supplemental hereto together with such other instruments as are satisfactory to the Rights Agent and in the opinion
of Counsel are necessary or advisable to evidence the assumption by the Successor Entity of the due and punctual observance and
performance of all the covenants and obligations of Akerna under this Indenture; and

 

		(b)	such transaction shall be to the satisfaction of the Rights Agent, acting reasonably, and in the
opinion of Counsel, be upon such terms so as to substantially preserve and not impair or reduce in any material respect the rights,
and powers of the Rights Agent or of the Holders hereunder, including, for certainty, the economic rights, entitlements and interests
of the Holders (or any of them) hereunder.

 

		7.2	VESTING OF POWERS IN SUCCESSOR ENTITY

 

Whenever the conditions of Section 7.1
have been duly observed and performed, a Successor Entity shall possess and from time to time may exercise each and every right
and power of Akerna and/or Exchangeco under this Indenture in the name of Akerna and/or Exchangeco or otherwise and any act or
proceeding by any provision of this Indenture required to be done or performed by any Directors or officers of Akerna and/or Exchangeco
may be done and performed with like force and effect by the Directors or officers of such Successor Entity.

 

ARTICLE
8

NOTICES

 

		8.1	NOTICE TO AKERNA AND THE RIGHTS AGENT

 

		(a)	Unless herein otherwise expressly provided,
any notice to be given hereunder to Akerna, the Rights Agent and/or the Shareholder Representative (for and on behalf of the Holders)
shall be deemed to be validly given if delivered or if sent by registered letter, postage prepaid, or by electronic transmission:

 

	if to Akerna or Exchangeco:	Akerna Corp.
	 	1601 Arapahoe Street 
	 	Denver, CO 80202
	 	Email: john.fowle@akerna.com
	 	 
	Attention:	John Fowle, Chief Financial Officer

 

    - 16 -

     

    

 

	with a copy to:	Dentons Canada LLP
	 	15th Floor, Bankers Court, 850 – 2nd Street S.W.
	 	Calgary, Alberta T2P 0R8
	 	Email: bennett.wong@dentons.com
	 	 
	Attention:	Bennett Wong
	 	 
	if to the Rights Agent:	Odyssey Trust Company
	 	1230, 300 5th Avenue S.W.
	 	Calgary, Alberta T2P 3C4
	 	Email: corptrust@odysseytrust.com
	 	 
	Attention:	VP, Corporate Trust
	 	 
	if to the Shareholder	 
	Representative:	John Prentice
	 	629 Eastern Avenue, Building B
	 	Toronto, Ontario M4M 1E4
	 	Email: john.prentice@ampleorganics.com

 

and any such notice delivered
in accordance with the foregoing shall be deemed to have been received on the date of delivery or if sent by electronic transmission,
on the first Business Day following such transmission or, if mailed, on the fifth Business Day following the date of the postmark
on such notice.

 

		(b)	Akerna, the Shareholder Representative or the Rights Agent, as the case may be, may from time to
time notify the others in the manner provided in Subsection 8.1(a) of a change of address which, from the effective date of such
notice and until changed by like notice, shall be the address of Akerna or the Rights Agent, as the case may be, for all purposes
of this Indenture.

 

ARTICLE
9

CONCERNING THE RIGHTS AGENT

 

		9.1	NO CONFLICT OF INTEREST

 

The Rights Agent represents to Akerna that
to the best of its knowledge, at the date of the execution and delivery of this Indenture there exists no material conflict of
interest in its role as a fiduciary hereunder. In the event of a material conflict of interest arising in the Rights Agent’s
role as fiduciary hereunder the Rights Agent shall, as soon as practicable but in any case within 20 days after ascertaining that
it has such material conflict of interest, either eliminate the same or assign its trust hereunder to a successor rights agent
approved by Akerna. Notwithstanding the foregoing provisions of this section, if any such material conflict of interest exists
or hereafter shall exist, the validity and enforceability of this Indenture and the Rights Certificate(s) shall not be affected
in any manner whatsoever by reason hereof.

 

    - 17 -

     

    

 

		9.2	REPLACEMENT OF RIGHTS AGENT

 

		(a)	The Rights Agent may resign its trust and be discharged from all further duties and liabilities
hereunder by giving to Akerna at least 45 days’ notice in writing or such shorter notice as Akerna may accept as sufficient.
The Shareholder Representative shall have the power at any time to remove the existing Rights Agent and to appoint a new rights
agent. If the Rights Agent resigns or is removed by the Shareholder Representative or is dissolved, becomes bankrupt, goes into
liquidation or otherwise becomes incapable of acting hereunder, Akerna shall forthwith appoint a new rights agent unless a new
rights agent has already been appointed by the Shareholder Representative; failing such appointment by Akerna, the retiring Rights
Agent or the Shareholder Representative may apply to a court of competent jurisdiction, on such notice as such court may direct,
for the appointment of a new rights agent; but any new rights agent so appointed by Akerna or by such court shall be subject to
removal as aforesaid by the Shareholder Representative. Any new rights agent appointed under any provision of this section must
be a corporation authorized to carry on the business of a trust company in one or more provinces of Canada and, if required by
the applicable trust indenture legislation of any other province or territory, in that other province or territory, and must be
a corporation which is independent of Akerna and has no material conflict of interest. On any new appointment the new rights agent
shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named herein as Rights Agent.

 

		(b)	Any entity into which the Rights Agent may be merged or with which it may be consolidated or amalgamated
or any entity resulting from any merger, consolidation or amalgamation to which the Rights Agent shall be a party or any entity
succeeding to the trust business of the Rights Agent, shall be the successor rights agent under this Indenture without the execution
of any instrument or any further act.

 

		9.3	EVIDENCE, EXPERTS AND ADVISERS

 

		(a)	In addition to the reports, certificates, opinions and other evidence required by this Indenture,
Akerna and Exchangeco shall furnish to the Rights Agent such additional evidence of compliance with any provision hereof, and in
such form, as may be prescribed by any trust indenture legislation or as the Rights Agent may reasonably require by written notice
to Akerna.

 

		(b)	In the exercise of its rights and duties hereunder, the Rights Agent may, if it is acting in good
faith, rely as to the truth of the statements and the accuracy of the opinions expressed in statutory declarations, opinions, reports,
written requests, consents, or orders of Akerna, certificates of Akerna or other evidence furnished to the Rights Agent pursuant
to any provision hereof or any trust indenture legislation or pursuant to a request of the Rights Agent, not only as to its due
execution and the validity and effectiveness of its provisions, but also to the truth and acceptability of any information therein
contained which the Rights Agent in good faith believes to be genuine.

 

		(c)	Proof of the execution of an instrument in writing, including a Holders’ Request, by any
Holder may be made by the certificate of a notary public, or other officer with similar powers, that the Person signing such instrument
acknowledged to it the execution thereof, or by an affidavit of a witness to such execution or in any other manner which the Rights
Agent may consider adequate.

 

		(d)	The Rights Agent may, at the expense of Akerna employ or retain such counsel, accountants, appraisers
or other experts or advisers as it may reasonably require for the purpose of discharging its duties hereunder and may pay reasonable
remuneration for all services so performed by any of them, without taxation of costs of any counsel, and shall not be responsible
for any misconduct or negligence on the part of any such experts or advisers who have been appointed with due care by the Rights
Agent.

 

    - 18 -

     

    

 

		9.4	RIGHTS AGENT MAY DEAL IN SECURITIES

 

Subject to Section 9.1, the Rights Agent
may buy, sell, lend upon and deal in securities of Akerna and generally contract and enter into financial transactions with Akerna
or otherwise, without being liable to account for any profits made thereby.

 

		9.5	RIGHTS AGENT NOT ORDINARILY BOUND

 

Except as otherwise specifically provided
herein, the Rights Agent shall not be bound to give notice to any Person of the execution hereof, nor to do, observe or perform
or see to the observance or performance by Akerna of any of the obligations herein imposed upon Akerna or of the covenants on the
part of Akerna herein contained.

 

		9.6	RIGHTS AGENT NOT REQUIRED TO GIVE SECURITY

 

The Rights Agent shall not be required
to give any bond or security in respect of the execution of the trusts and powers of this Indenture or otherwise in respect of
the premises.

 

		9.7	RIGHTS AGENT NOT REQUIRED TO GIVE NOTICE OF DEFAULT

 

The Rights Agent shall not be bound to
give any notice or do or take any act, action or proceeding by virtue of the powers conferred on it hereby unless and until it
shall have been required to do so under the terms hereof; nor shall the Rights Agent be required to take notice of any default
hereunder, unless and until notified in writing of such default, which notice shall distinctly specify the default desired to be
brought to the attention of the Rights Agent and in the absence of any such notice the Rights Agent may for all purposes of this
Indenture conclusively assume that no default has been made in the observance or performance of any of the representations, warranties,
covenants, agreements or conditions contained herein. Any such notice shall in no way limit any discretion herein given to the
Rights Agent to determine whether or not the Rights Agent shall take action with respect to any default.

 

		9.8	ACCEPTANCE OF APPOINTMENT

 

The Rights Agent hereby accepts its appointment
as Rights Agent and its duties and obligations in this Indenture declared and provided for and agrees to perform them upon the
terms and conditions herein set forth and to hold and exercise the rights, privileges and benefits conferred upon it hereby, subject
to all the terms and conditions herein set forth, until discharged therefrom by resignation or other lawful removal.

 

		9.9	DUTIES OF RIGHTS AGENT

 

The Rights Agent, in exercising its powers
and discharging its duties hereunder, shall:

 

		(a)	act honestly and in good faith with a view to the best interests of the Holders; and

    - 19 -

     

    

 

		(b)	exercise the care, diligence and skill that a reasonably prudent rights agent would exercise in comparable circumstances.

 

		9.10	ACTIONS BY RIGHTS AGENT

 

		(a)	Subject only to Section 9.9, the obligation of the Rights Agent to commence or continue any act,
action or proceeding for the purpose of enforcing any rights of the Rights Agent or the Holders hereunder shall be conditional
upon the Holders delivering to the Rights Agent:

 

		(i)	a written request by the Shareholder Representative directing the Rights Agent to take such act,
action, or proceeding;

 

		(ii)	sufficient funds to commence or continue such act, action or proceeding; and

 

		(iii)	an indemnity reasonably satisfactory to the Rights Agent to protect and hold harmless the Rights
Agent against the costs, charges and expenses and liabilities to be incurred thereby and any loss and damages it may suffer by
reason thereof.

 

		(b)	None of the provisions contained in this Indenture shall require the Rights Agent to expend or
risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of
its rights or powers unless indemnified and funded as aforesaid.

 

		(c)	The Rights Agent may, before commencing or at any time during the continuance of any such act,
action or proceeding, require the Shareholder Representative (for and on behalf of the Holders), at whose instance it is acting,
to deposit with the Rights Agent the Rights held by them, for which Rights the Rights Agent shall issue receipts.

 

		9.11	PROTECTION OF RIGHTS AGENT

 

By way of supplement to the provisions
of any law for the time being relating to trustees it is expressly declared and agreed as follows:

 

		(a)	the Rights Agent shall not be liable for or by reason of any statements of fact or recitals in
this Indenture or in the Rights Certificates (except the representation contained in Section 9.1 or in the certificate of the Rights
Agent on the Rights Certificates) or be required to verify the same, but all such statements or recitals are and shall be deemed
to be made by Akerna;

 

		(b)	nothing herein contained shall impose any obligation on the Rights Agent to see to or to require
evidence of the registration or filing (or renewal thereof) of this Indenture or any instrument ancillary or supplemental hereto;
and

 

		(c)	the Rights Agent shall not be bound to give notice to any Person or Persons of the execution hereof.

 

    - 20 -

     

    

 

		9.12	INDEMNIFICATION OF THE RIGHTS AGENT

 

The Rights Agent, its officers, directors,
agents and employees shall at all times be indemnified and saved harmless by Akerna from and against all claims, demands, losses,
actions, causes of action, suits, proceedings, costs, charges, expenses, assessments, judgements, damages and liabilities whatsoever
arising in connection with this Indenture, including, without limitation, those arising out of or related to actions taken or omitted
to be taken by the Rights Agent contemplated hereby, reasonable expert consultant and legal fees and disbursements on a solicitor
and client basis and reasonable costs and expenses incurred in connection with the enforcement of this indemnity, which the Rights
Agent may suffer or incur, whether at law or in equity, in any way caused by or arising, directly or indirectly, in respect of
any act, deed, matter or thing whatsoever made, done, acquiesced in or omitted in or about or in relation to the execution of its
duties as Rights Agent. The foregoing provisions of this section do not apply to the extent that in any circumstance there have
been acts of gross negligence, wilful misconduct, or bad faith by the Rights Agent. This indemnity shall survive the termination
or discharge of this Indenture and the resignation or removal of the Rights Agent.

 

		9.13	THIRD PARTY INTERESTS

 

Each party to this Indenture hereby represents
to the Rights Agent that any account to be opened by, or interest to held by the Rights Agent in connection with this Indenture,
for or to the credit of such party, either: (a) is not intended to be used by or on behalf of any third party; or (b) is intended
to be used by or on behalf of a third party, in which case such party hereto agrees to complete and execute forthwith a declaration
in the Rights Agent’s prescribed form as to the particulars of such third party.

 

		9.14	NOT BOUND TO ACT / ANTI-MONEY LAUNDERING

 

The Rights Agent shall retain the right
not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the
Rights Agent, in its sole judgment, determines that such act might cause it to be in non-compliance with any applicable anti-money
laundering, anti-terrorist or economic sanctions legislation, regulation or guideline. Further, should the Rights Agent, in its
sole judgment, determine at any time that its acting under this Indenture has resulted in its being in non-compliance with any
applicable anti-money laundering, anti-terrorist or economic sanctions legislation, regulation or guideline, then it shall have
the right to resign on 10 days written notice to Akerna, provided: (a) that the Rights Agent’s written notice shall describe the
circumstances of such non-compliance; and (b) that if such circumstances are rectified to the Rights Agent’s satisfaction
within such 10 day period, then such resignation shall not be effective.

 

		9.15	PRIVACY LAWS

 

The parties acknowledge that the Rights
Agent may, in the course of providing services hereunder, collect or receive financial and other personal information about such
parties and/or their representatives, as individuals, or about other individuals related to the subject matter hereof, and use
such information for the following purposes: (a) to provide the services required under this Indenture and other services that
may be requested from time to time; (b) to help the Rights Agent manage its servicing relationships with such individuals; (c)
to meet the Rights Agent’s legal and regulatory requirements; and (d) if Social Insurance Numbers are collected by the Rights
Agent, to perform tax reporting and to assist in verification of an individual’s identity for security purposes.

 

    - 21 -

     

    

 

Each party acknowledges and agrees that
the Rights Agent may receive, collect, use and disclose personal information provided to it or acquired by it in the course of
its acting as agent hereunder this Indenture for the purposes described above and, generally, in the manner and on the terms described
in its Privacy Code, which the Rights Agent shall make available on its website, www.odysseytrust.com, or upon request, including
revisions thereto. The Rights Agent may transfer personal information to other companies in or outside of Canada that provide data
processing and storage or other support in order to facilitate the services it provides.

 

Further, each party agrees that it shall
not provide or cause to be provided to the Rights Agent any personal information relating to an individual who is not a party to
this Indenture unless the that party has assured itself that such individual understands and has consented to the aforementioned
uses and disclosures.

 

		9.16	FORCE MAJEURE

 

Except for the payment obligations of Akerna
contained herein, neither party shall be liable to the other, or held in breach of this Indenture, if prevented, hindered, or delayed
in the performance or observance of any provisions contained herein by reason of act of God, riots, terrorism, acts of war, epidemics,
governmental action or judicial order, earthquakes, economic sanctions or any other similar causes (including, but not limited
to, mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Indenture shall
be extended for a period of time equivalent to the time lost because of any delay that is excusable under this section.

 

ARTICLE
10

SUPPLEMENTAL INDENTURES

 

		10.1	SUPPLEMENTAL INDENTURES

 

The Rights Agent may,
without the consent or concurrence of the Holders, by supplemental Indenture or otherwise, concur with Akerna in making any changes
or corrections in this Indenture which it has been advised by Counsel are required for the purpose of curing or correcting any
ambiguity or defective or inconsistent provision or clerical omission or mistake or manifest error contained herein or in any deed
or indenture supplemental or ancillary hereto, provided that the Rights Agent, relying on the opinion of Counsel, the rights of
the Rights Agent and of the Holders are in no way prejudiced thereby.

 

ARTICLE
11

GENERAL PROVISIONS

 

		11.1	EXECUTION

 

This Indenture may be simultaneously executed
in several counterparts, and may be executed by facsimile or other means of electronic communication producing a printed copy,
each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same
instrument and notwithstanding their date of execution they shall be deemed to be dated as of the date hereof.

 

    - 22 -

     

    

 

		11.2	AMENDMENT

 

This provisions of this
Indenture may be waived, altered, amended or supplemented, in whole or in part, only by a writing signed by Akerna, the Shareholder
Representative and the Rights Agent.

 

		11.3	FORMAL DATE

 

This Indenture may be referred to as bearing
the formal date July ___, 2020 irrespective of the actual date of execution hereof.

 

		11.4	SATISFACTION AND DISCHARGE OF INDENTURE

 

Upon the Termination Date, this Indenture
shall cease to be of any force and effect and the Rights Agent, on demand of and at the cost and expense of Akerna and upon delivery
to the Rights Agent of a certificate of Akerna stating that all conditions precedent to the satisfaction and discharge of this
Indenture have been complied with, shall execute instruments as requested by Akerna acknowledging satisfaction of and discharging
this Indenture. Notwithstanding the foregoing, the indemnities provided to the Rights Agent by Akerna hereunder shall remain in
full force and effect and survive the termination of this Indenture.

 

		11.5	PROVISIONS OF INDENTURE AND RIGHTS FOR THE SOLE BENEFIT OF PARTIES AND HOLDERS

 

Nothing in this Indenture or in the Rights
Certificates, expressed or implied, shall give or be construed to give to any Person other than the parties thereto and the Holders,
as the case may be, any legal or equitable right, remedy or claim under this Indenture, or under any covenant or provision herein
or therein contained, all such covenants and provisions being for the sole benefit of the parties hereto and the Holders.

 

		11.6	WITHHOLDING

 

Each of Akerna, Exchangeco and the Rights
Agent shall be entitled to deduct and withhold from any amounts or property to be issued, paid, assigned or conveyed hereunder,
such amounts as Akerna, Exchangeco or the Rights Agent, as the case may be, is required to deduct and withhold with respect to
such payment or transfer under the Income Tax Act (Canada) or any provision of federal, provincial, state, local or foreign
tax law. In lieu of withholding such amounts Akerna, Exchangeco and the Rights Agent shall be entitled to otherwise recover or
to require a Holder to provide for such applicable taxes. To the extent that amounts are so withheld, such withheld amounts shall
be treated for all purposes hereof as having been paid to the relevant Holder, provided that such withheld amounts are actually
remitted to the appropriate taxing authority.

 

[Remainder of this page left intentionally
blank]

 

    - 23 -

     

    

 

IN WITNESS WHEREOF the parties hereto have executed this
Indenture under the hands of their proper officers in that behalf.

 

	 	By:	/s/ John Prentice
	 	 	Name:   	John Prentice, exclusively in his capacity as Shareholder Representative

 

	 	Akerna Canada Ample Exchange Inc.
	 	 
	 	By:	/s/ Jessica Billingsley 
	 	 	Name:Jessica Billingsley
	 	 	Title:Chief Financial Officer 

 

	 	AKERNA CORP.
	 	 
	 	By:	/s/ John Fowle
	 	 	Name:John Fowle
	 	 	Title:Chief Financial Officer 

 

	 	ODYSSEY TRUST COMPANY
	 	 
	 	By:	/s/ Dan Sander 
	 	 	Name:Dan Sander
	 	 	Title:Authorized Officer
	 	By:	/s/ Amy Douglas 
	 	 	Name:Amy Douglas
	 	 	Title:Authorized Officer

 

    - 24 -

     

    

 

SCHEDULE
“A”

 

FORM OF
RIGHTS CERTIFICATE

 

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    - 25 -

     

    

 

THIS IS SCHEDULE “A”
to the Rights Indenture made as of July ___, 2020 between Akerna Corp., Akerna Canada Ample Exchange Inc., John Prentice, as Shareholder
Representative, and Odyssey Trust Company, as Rights Agent.

 

RIGHTS CERTIFICATE

 

AKERNA CORP.

(a corporation existing under the laws of
Delaware)

(“Akerna”)

 

	RIGHTS CERTIFICATE NO. ____________________________

 

	ONE RIGHT, entitling the holder to acquire such share of the Deferred Consideration as specified in Section 2.2 of the Rights Indenture (as defined below).

 

THIS IS TO CERTIFY THAT ____________________________________________________________

 

(the “holder”) is the
registered holder of a right (the “Right”) entitling the holder to receive Exchangeable Shares all on the terms
and conditions set out in a rights indenture (the “Rights Indenture”) between Akerna, Exchangeco, John Prentice,
as Shareholder Representative, and Odyssey Trust Company dated July ___, 2020.

 

The Right represented by this certificate
is issued under and pursuant to the Rights Indenture. Reference is made to the Rights Indenture and any instruments supplemental
thereto for a full description of the rights of the holders of the Rights and the terms and conditions upon which the Rights are,
or are to be, issued and held, with the same effect as if the provisions of the Rights Indenture and all instruments supplemental
thereto were herein set forth. By acceptance hereof, the holder assents to all provisions of the Rights Indenture. In the event
of a conflict between the provisions of this Rights Certificate and the Rights Indenture, the provisions of the Rights Indenture
shall govern. Capitalized terms used in the Rights Indenture have the same meaning herein as therein, unless otherwise defined.

 

The registered holder of this Rights Certificate
may, at any time prior to the close of business on the last Business Day immediately preceding the Termination Date, upon surrender
hereof to the Rights Agent at its offices in the city of Calgary, Alberta, exchange this Rights Certificate for other Rights Certificates
entitling the holder to acquire, in the aggregate, the same Deferred Consideration as may be acquired under this Rights Certificate.

 

The holding of the Right evidenced by this
Rights Certificate shall not constitute the holder hereof a shareholder of Akerna or Exchangeco or entitle the holder to any right
or interest in respect thereof except as expressly provided in the Rights Indenture and in this Rights Certificate.

 

The Right evidenced by this Rights Certificate
may only be transferred in accordance with the terms of the Rights Indenture and upon compliance with such reasonable requirements
as the Rights Agent may prescribe.

 

This Rights Certificate shall not be valid
for any purpose whatever unless and until it has been certified by or on behalf of the Rights Agent.

 

Time shall be of the essence hereof.

 

      

     

    

 

IN WITNESS WHEREOF Akerna has caused this
Rights Certificate to be signed by its duly authorized officer as of July ___, 2020.

 

	 	AKERNA CORP.
	 	 
	 	Per:	       
	 	 	(Authorized Signatory)

 

	 	Akerna Canada Ample Exchange Inc.
	 	 
	 	Per:	 
	 	 	(Authorized Signatory)

 

	
        Certified by:

         

        ODYSSEY TRUST COMPANY

        Rights Agent
	 
	 	 
	Per:	 	 
	 	(Authorized Signatory)	 
	 	 	 
	Per:	 	 
	 	(Authorized Signatory)Exhibit 10.4

 

Akerna Corp.

 

2019 Long Term Incentive Plan

 

Section 1. Purpose; Definitions.

 

1.1. Purpose. The purpose of the
Plan is to enable the Company to offer to employees, officers and directors of and consultants to the Company and its Subsidiaries,
Parent and Affiliates whose past, present and/or potential future contributions to the Company and its Subsidiaries have been,
are or will be important to the success of the Company, an opportunity to share monetarily in the success of and/or acquire a proprietary
interest in the Company. The various types of long-term incentive awards that may be provided under the Plan will enable the Company
to respond to changes in compensation practices, tax laws, accounting regulations and the size and diversity of its businesses.

 

1.2. Definitions. For purposes of
the Plan, the following terms shall be defined as set forth below:

 

(a) “Affiliate” means a corporation,
limited liability company or other entity that controls, is controlled by, or is under common control with the Company and designated
by the Committee from time to time as such.

 

(b) “Agreement” means the agreement
between the Company and the Holder, or such other document as may be determined by the Committee, setting forth the terms and conditions
of an award under the Plan.

 

(c) “Asset Sale” means an acquisition
by any one person, or more than one person acting as a group, together with acquisitions during the 12-month period ending on the
date of the most recent acquisition by such person or persons, of assets from the Company that have a total gross fair market value
equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately before such acquisition
or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets
being disposed of, determined without regard to any liabilities associated with such assets.

 

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

 

(e) “Change of Control” means
a transaction in which any one person, or more than one person acting as a group, acquires the ownership of stock of the Company
that, together with the stock held by such person or group, constitutes more than 50% of the total Fair Market Value or combined
voting power of the stock of the Company. A Change in Control caused by an increase in the percentage of stock owned by any one
person, or persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for property
is not treated as a Change of Control for purposes of the Plan.

 

(f) “Code” means the Internal
Revenue Code of 1986, as amended from time to time.

 

(g) “Committee” means the committee
of the Board designated to administer the Plan as provided in Section 2.1. If no Committee is so designated, then all references
in this Plan to “Committee” shall mean the Board.

 

(h) “Common Stock” means the
Common Stock of the Company, par value $.0001 per share.

 

(i) “Company” means Akerna
Corp., a corporation organized under the laws of the State of Delaware.

 

(j) “Disability” means physical
or mental impairment as determined under procedures established by the Committee for purposes of the Plan.

 

(k) “Effective Date” means
the date determined pursuant to Section 11.1.

 

(l) “Fair Market Value,” unless
otherwise required by any applicable provision of the Code or any regulations issued thereunder, means, as of any given date: (i)
if the Common Stock is listed on a national securities exchange or is traded over-the-counter and last sale information is available,
unless otherwise determined by the Committee, the last sale price of the Common Stock in the principal trading market for the Common
Stock on such date, as reported by the exchange or by such source that the Committee deems reliable, as the case may be; or (ii)
if the fair market value of the Common Stock cannot be determined pursuant to clause (i), such price as the Committee shall determine,
in good faith.

 

     

     

    

 

(m) “Holder” means a person
who has received an award under the Plan.

 

(n) “Incentive Stock Option”
means any Stock Option intended to be and designated as an “incentive stock option” within the meaning of Section 422
of the Code.

 

(o) “Non-qualified Stock Option”
means any Stock Option that is not an Incentive Stock Option.

 

(p) “Normal Retirement” means
retirement from active employment with the Company or any Subsidiary on or after such age which may be designated by the Committee
as “retirement age” for any particular Holder. If no age is designated, it shall be 65.

 

(q) “Other Stock-Based Award”
means an award under Section 8 that is valued in whole or in part by reference to, or is otherwise based upon, Common Stock.

 

(r) “Parent” means any present
or future “parent corporation” of the Company, as such term is defined in Section 424(e) of the Code.

 

(s) “Plan” means the Company’s
2019 Long Term Incentive Plan, as hereinafter amended from time to time.

 

(t) “Repurchase Value” shall
mean the Fair Market Value if the award to be settled under Section 2.2(e) or repurchased under Section 5.2(l) is comprised of
shares of Common Stock and the difference between Fair Market Value and the exercise price (if lower than Fair Market Value) if
the award is a Stock Option or Stock Appreciation Right; in each case, multiplied by the number of shares subject to the award.
“Repurchase Value” if the award to be repurchased under Section 9.2 is comprised of shares of Common Stock shall mean
the greater of the Fair Market Value or the value of such award based upon the price per share of Common Stock received or to be
received by other shareholders of the Company in the event. “Repurchase Value” if the award to be repurchased under
Section 9.2 is comprised of Stock Options or Stock Appreciation Rights shall mean the difference between the greater of (1) the
Fair Market Value or the value of such award based upon the price per share of Common Stock received or to be received by other
shareholders of the Company in the event and (2) the exercise price (if lower), multiplied by the number of shares subject to the
award.

 

(u) “Restriction Period” means
the time or times within which awards may be subject to forfeiture, including upon termination of employment or failure of performance
conditions.

 

(v) “Restricted Stock” means
Common Stock received under an award made pursuant to Section 7 that is subject to restrictions under Section 7.

 

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

 

(x) “SAR Value” means the excess
of the Fair Market Value (on the exercise date) over (a) the exercise price that the participant would have otherwise had to pay
to exercise the related Stock Option or (b) if a Stock Appreciation Right is granted unrelated to a Stock Option, the Fair Market
Value of a share of Common Stock on the date of grant of the Stock Appreciation Right, in either case, multiplied by the number
of shares for which the Stock Appreciation Right is exercised.

 

(y) “Stock Appreciation Right”
means the right to receive from the Company, without a cash payment to the Company, either a number of shares of Common Stock equal
to the SAR Value divided by the Fair Market Value (on the exercise date), or, at the Company’s election, cash in the amount
of the SAR Value.

 

    2

     

    

 

(z) “Stock Option” or “Option”
means any option to purchase shares of Common Stock which is granted pursuant to the Plan.

 

(aa) “Subsidiary” means any
present or future “subsidiary corporation” of the Company, as such term is defined in Section 424(f) of the Code.

 

(bb) “Vest” means to become
exercisable or to otherwise obtain ownership rights in an award. No award shall vest in less than a one-year period.

 

Section 2. Administration.

 

2.1. Committee Membership. The Plan
shall be administered by the Board or a Committee. If administered by a Committee, such Committee shall be composed of at least
two directors, all of whom are “non-employee” directors within the meaning of Rule 16b-3 under the Securities Exchange
Act of 1934, as amended. Committee members shall serve for such term as the Board may in each case determine and shall be subject
to removal at any time by the Board.

 

2.2. Powers of Committee. The Committee
shall have full authority to award, pursuant to the terms of the Plan: (i) Stock Options, (ii) Stock Appreciation Rights, (iii)
Restricted Stock, (iv) Restricted Stock Units, and/or (v) Other Stock-Based Awards. For purposes of illustration and not of limitation,
the Committee shall have the authority (subject to the express provisions of this Plan):

 

(a) to select the officers, employees,
directors and consultants of the Company, Parent, Subsidiary or Affiliate to whom Stock Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units and/or Other Stock-Based Awards may from time to time be awarded hereunder;

 

(b) to determine the terms and conditions,
not inconsistent with the terms of the Plan, of any award granted hereunder (including, but not limited to, number of shares, share
exercise price or types of consideration paid upon exercise of such options, such as other securities of the Company or other property,
any restrictions or limitations, and any vesting, exchange, surrender, cancellation, acceleration, termination, exercise or forfeiture
provisions, as the Committee shall determine);

 

(c) to determine any specified performance
goals or such other factors or criteria which need to be attained for the vesting of an award granted hereunder;

 

(d) to determine the terms and conditions
under which awards granted hereunder are to operate on a tandem basis and/or in conjunction with or apart from other awards under
this Plan and cash and non-cash awards made by the Company, Parent, Subsidiary and/or Affiliate outside of this Plan; and

 

(e) to make payments and distributions
with respect to awards (i.e., to “settle” awards) through cash payments in an amount equal to the Repurchase
Value.

 

The Committee may not modify or amend any
outstanding Option or Stock Appreciation Right to reduce the exercise price of such Option or Stock Appreciation Right, as applicable,
below the exercise price as of the date of grant of such Option or Stock Appreciation Right. In addition, no payment of cash or
other property having a value greater than the Repurchase Value may be made, and no Option or Stock Appreciation Right with a lower
exercise price may be granted, in exchange for, or in connection with, the cancellation or surrender of an Option or Stock Appreciation
Right.

 

Non-employee directors may not be granted
any awards covering more than [●] shares of Common Stock in any year.

 

2.3. Interpretation of Plan. Subject
to Section 10, the Committee shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable, to interpret the terms and provisions of the Plan and any award
issued under the Plan (and to determine the form and substance of all Agreements relating thereto), and to otherwise supervise
the administration of the Plan. Subject to Section 10, all decisions made by the Committee pursuant to the provisions of the Plan
shall be made in the Committee’s sole discretion and shall be final and binding upon all persons, including the Company,
its Parent, Subsidiaries, Affiliates and Holders.

 

    3

     

    

 

Section 3. Stock Subject to Plan.

 

3.1. Number of Shares. The total
number of shares of Common Stock reserved and available for issuance under the Plan shall be up to 1,565,038 shares. Shares of
Common Stock under the Plan (“Shares”) may consist, in whole or in part, of authorized and unissued shares or treasury
shares. If any shares of Common Stock that have been granted pursuant to a Stock Option cease to be subject to a Stock Option,
or if any shares of Common Stock that are subject to any Stock Appreciation Right, Restricted Stock award, Restricted Stock Units
or Other Stock-Based Award granted hereunder are forfeited, or any such award otherwise terminates without a payment being made
to the Holder in the form of Common Stock, such shares shall again be available for distribution in connection with future grants
and awards under the Plan. If a Holder pays the exercise price of a Stock Option by surrendering any previously owned shares and/or
arranges to have the appropriate number of shares otherwise issuable upon exercise withheld to cover the withholding tax liability
associated with the Stock Option exercise, then, in the Committee’s discretion, the number of shares available under the
Plan may be increased by the lesser of (i) the number of such surrendered shares and shares used to pay taxes; and (ii) the number
of shares purchased under such Stock Option.

 

3.2. Adjustment Upon Changes in Capitalization,
Etc. In the event of any common stock dividend payable on shares of Common Stock, Common Stock split or reverse split, combination
or exchange of shares of Common Stock, or other extraordinary or unusual event which results in a change in the shares of Common
Stock of the Company as a whole, the Committee shall determine, in its sole discretion, whether such change equitably requires
an adjustment in the terms of any award in order to prevent dilution or enlargement of the benefits available under the Plan (including
number of shares subject to the award and the exercise price) or the aggregate number of shares reserved for issuance under the
Plan. Any such adjustments will be made by the Committee, whose determination will be final, binding and conclusive.

 

3.3. Administrative Stand Still.
In the event of any changes in capitalization described above in Section 3.2, or any other extraordinary transaction or change
affecting the shares or the share price of Common Stock, including any equity restructuring or any securities offering or other
similar transaction, for administrative convenience, the Committee may refuse to permit the exercise of any award for up to sixty
days before and/or after such transaction; provided, however, that the Committee may not refuse to permit the exercise of any award
during the last five trading days prior to the expiration of such award.

 

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

 

Section 4. Eligibility.

 

Awards may be made or granted to employees,
officers, directors and consultants of the Company or its Subsidiaries, Parent or Affiliates who are deemed to have rendered or
to be able to render significant services to the Company or its Subsidiaries and who are deemed to have contributed or to have
the potential to contribute to the success of the Company or Subsidiary and which recipients are qualified to receive options under
the regulations governing Form S-8 registration statements under the Securities Act of 1933, as amended (“Securities Act”).
No Incentive Stock Option shall be granted to any person who is not an employee of the Company, a Subsidiary, Parent or Affiliate
(including any non-employee directors) at the time of grant or so qualified as set forth in the immediately preceding sentence.
Notwithstanding anything to the contrary, an award may be made or granted to a person in connection with his hiring or retention,
or at any time on or after the date he reaches an agreement (oral or written) with the Company or its Subsidiaries, Parent or Affiliates
with respect to such hiring or retention, even though it may be prior to the date the person first performs services for the Company
or its Subsidiaries; provided, however, that no portion of any such award shall vest prior to the date the person first performs
such services and the date of grant shall be deemed to be the date hiring or retention commences.

 

    4

     

    

 

Section 5. Stock Options.

 

5.1. Grant and Exercise. Stock Options
granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-qualified Stock Options. Any Stock Option
granted under the Plan shall contain such terms, not inconsistent with this Plan, or with respect to Incentive Stock Options, not
inconsistent with the Plan and the Code, as the Committee may from time to time approve. The Committee shall have the authority
to grant Incentive Stock Options or Non-qualified Stock Options, or both types of Stock Options which may be granted alone or in
addition to other awards granted under the Plan.

 

5.2. Terms and Conditions. Stock
Options granted under the Plan shall be subject to the following terms and conditions:

 

(a) Option Term. The term of each
Stock Option shall be fixed by the Committee; provided, however, that no Stock Option may be exercisable after the expiration of
ten years from the date of grant; provided, further, that no Incentive Stock Option granted to a person who, at the time of grant,
owns stock possessing more than 10% of the total combined voting power of all classes of voting stock of the Company (“10%
Shareholder”) may be exercisable after the expiration of five years from the date of grant.

 

(b) Exercise Price. The exercise
price per share of Common Stock purchasable under a Stock Option shall be determined by the Committee at the time of grant; provided,
however, that the exercise price of a Stock Option may not be less than 100% of the Fair Market Value on the date of grant or,
if greater, the par value of a share of Common Stock; provided, further, that the exercise price of an Incentive Stock Option granted
to a 10% Shareholder may not be less than 110% of the Fair Market Value on the date of grant.

 

(c) Exercisability. Stock Options
shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee. The
Committee intends generally to provide that Stock Options be exercisable only in installments, i.e., that they vest over time,
typically over a two- to five-year period. The Committee may waive such installment exercise provisions at any time at or after
the time of grant in whole or in part, based upon such factors as the Committee determines.

 

(d) Method of Exercise. Subject
to whatever installment, exercise and waiting period provisions are applicable in a particular case, Stock Options may be exercised
in whole or in part at any time during the term of the Option by giving written notice of exercise to the Company specifying the
number of shares of Common Stock to be purchased. Such notice shall be accompanied by payment in full of the purchase price, which
shall be in cash or, if provided in the Agreement, either in shares of Common Stock (including Restricted Stock and other contingent
awards under this Plan) or partly in cash and partly in such Common Stock, or such other means which the Committee determines are
consistent with the Plan’s purpose and applicable law. Cash payments shall be made by wire transfer, certified or bank check
or personal check, in each case payable to the order of the Company; provided, however, that the Company shall not be required
to deliver certificates for shares of Common Stock with respect to which an Option is exercised until the Company has confirmed
the receipt of good and available funds in payment of the purchase price thereof (except that, in the case of an exercise arrangement
approved by the Committee and described in the next sentence of this section, payment may be made as soon as practicable after
the exercise). The Committee may permit a Holder to elect to pay the exercise price upon the exercise of a Stock Option by irrevocably
authorizing a third party to sell shares of Common Stock (or a sufficient portion of the shares) acquired upon exercise of the
Stock Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding
resulting from such exercise. The Committee may also authorize other means for paying the exercise price of a Stock Option, including
using the value of the Stock Option (as determined by the difference in the Fair Market Value of the Common Stock and the exercise
price of the Stock Option or other means determined by the Committee).

 

    5

     

    

 

(e) Stock Payments. Payments in
the form of Common Stock shall be valued at the Fair Market Value on the date of exercise. Such payments shall be made by delivery
of stock certificates in negotiable form that are effective to transfer good and valid title thereto to the Company, free of any
liens or encumbrances.

 

(f) Transferability. Except as may
be set forth in the next sentence of this Section or in the Agreement, no Stock Option shall be transferable by the Holder other
than by will or by the laws of descent and distribution, and all Stock Options shall be exercisable, during the Holder’s
lifetime, only by the Holder (or, to the extent of legal incapacity or incompetency, the Holder’s guardian or legal representative).
Notwithstanding the foregoing, a Holder, with the approval of the Committee, may transfer a Non-Qualified Stock Option (i) (A)
by gift, for no consideration, or (B) pursuant to a domestic relations order, in either case, to or for the benefit of the Holder’s
“Immediate Family” (as defined below), or (ii) to an entity in which the Holder and/or members of Holder’s Immediate
Family own more than fifty percent of the voting interest, subject to such limits as the Committee may establish and the execution
of such documents as the Committee may require, and the transferee shall remain subject to all the terms and conditions applicable
to the Non-Qualified Stock Option prior to such transfer. The term “Immediate Family” shall mean any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, any person sharing the Holder’s household
(other than a tenant or employee), a trust in which these persons have more than fifty percent beneficial interest, and a foundation
in which these persons (or the Holder) control the management of the assets. The Committee may, in its sole discretion, permit
transfer of an Incentive Stock Option in a manner consistent with applicable tax and securities law upon the Holder’s request.

 

(g) Termination by Reason of Death.
If a Holder’s employment by, or association with, the Company, Parent, Subsidiary or Affiliate terminates by reason of death,
any Stock Option held by such Holder, unless otherwise determined by the Committee and set forth in the Agreement, shall thereupon
automatically terminate, except that the portion of such Stock Option that has vested on the date of death may thereafter be exercised
by the legal representative of the estate or by the legatee of the Holder under the will of the Holder, for a period of one year
(or such other greater or lesser period as the Committee may specify in the Agreement) from the date of such death or until the
expiration of the stated term of such Stock Option, whichever period is shorter.

 

(h) Termination by Reason of Disability.
If a Holder’s employment by, or association with, the Company, Parent, Subsidiary or Affiliate terminates by reason of Disability,
any Stock Option held by such Holder, unless otherwise determined by the Committee and set forth in the Agreement, shall thereupon
automatically terminate, except that the portion of such Stock Option that has vested on the date of termination may thereafter
be exercised by the Holder for a period of one year (or such other greater or lesser period as the Committee may specify in the
Agreement) from the date of such termination or until the expiration of the stated term of such Stock Option, whichever period
is shorter.

 

(i) Termination by Reason of Normal
Retirement. Subject to the provisions of Section 12.3, if such Holder’s employment by, or association with, the Company,
Parent, Subsidiary or Affiliate terminates due to Normal Retirement, any Stock Option held by such Holder, unless otherwise determined
by the Committee and set forth in the Agreement, shall thereupon automatically terminate, except that the portion of such Stock
Option that has vested on the date of termination may thereafter be exercised by the Holder for a period of one year in the case
of a Non-Qualified Stock Option or three months in the case of an Incentive Stock Option (or such other greater or lesser period
as the Committee may specify in the Agreement) from the date of such termination or until the expiration of the stated term of
such Stock Option, whichever period is shorter.

 

(j) Other Termination. Subject to
the provisions of Section 12.3, if such Holder’s employment by, or association with, the Company, Parent, Subsidiary or Affiliate
terminates for any reason other than death, Disability or Normal Retirement, any Stock Option held by such Holder, unless otherwise
determined by the Committee and set forth in the Agreement, shall thereupon automatically terminate, except that, if the Holder’s
employment is terminated by the Company, Parent, Subsidiary or Affiliate without cause, the portion of such Stock Option that has
vested on the date of termination may thereafter be exercised by the Holder for a period of three months (or such other greater
or lesser period as the Committee may specify in the Agreement) from the date of such termination or until the expiration of the
stated term of such Stock Option, whichever period is shorter.

 

    6

     

    

 

(k) Incentive Stock Options. The
aggregate Fair Market Value (on the date of grant of the Stock Option) of shares of Common Stock with respect to which Incentive
Stock Options become exercisable for the first time by a Holder during any calendar year (under all such plans of the Company and
its Parent and Subsidiaries) shall not exceed $100,000. To the extent that any Stock Option intended to qualify as an Incentive
Stock Option does not so qualify, including by reason of the immediately preceding sentence, it shall constitute a separate Non-qualified
Stock Option. The Company shall have no liability to any Holder or any other person if a Stock Option designated as an Incentive
Stock Option fails to qualify as such at any time or if a Stock Option is determined to constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code and the terms of such Stock Option do not satisfy the requirements
of Section 409A of the Code.

 

(l) Buyout and Settlement Provisions.
The Committee may at any time, in its sole discretion, offer to repurchase a Stock Option previously granted, at a purchase price
not to exceed the Repurchase Value, based upon such terms and conditions as the Committee shall establish and communicate to the
Holder at the time that such offer is made.

 

(m) Rights as Shareholder. A Holder
shall have none of the rights of a Shareholder with respect to the shares subject to the Option until such shares shall be transferred
to the Holder upon the exercise of the Option.

 

Section 6. Stock Appreciation Rights.

 

6.1. Grant and Exercise. Subject
to the terms and conditions of the Plan, the Committee may grant Stock Appreciation Rights in tandem with an Option or alone and
unrelated to an Option. The Committee may grant Stock Appreciation Rights to participants who have been or are being granted Stock
Options under the Plan as a means of allowing such participants to exercise their Stock Options without the need to pay the exercise
price in cash. In the case of a Non-qualified Stock Option, a Stock Appreciation Right may be granted either at or after the time
of the grant of such Non-qualified Stock Option. In the case of an Incentive Stock Option, a Stock Appreciation Right may be granted
only at the time of the grant of such Incentive Stock Option.

 

6.2. Terms and Conditions. Stock
Appreciation Rights shall be subject to the following terms and conditions:

 

(a) Exercisability. Stock Appreciation
Rights shall be exercisable as shall be determined by the Committee and set forth in the Agreement, subject, for Stock Appreciation
Rights granted in tandem with an Incentive Stock Option, to the limitations, if any, imposed by the Code with respect to related
Incentive Stock Options.

 

(b) Termination. All or a portion
of a Stock Appreciation Right granted in tandem with a Stock Option shall terminate and shall no longer be exercisable upon the
termination or after the exercise of the applicable portion of the related Stock Option.

 

(c) Method of Exercise. Stock Appreciation
Rights shall be exercisable upon such terms and conditions as shall be determined by the Committee and set forth in the Agreement
and, for Stock Appreciation Rights granted in tandem with a Stock Option, by surrendering the applicable portion of the related
Stock Option. Upon exercise of all or a portion of a Stock Appreciation Right and, if applicable, surrender of the applicable portion
of the related Stock Option, the Holder shall be entitled to receive a number of shares of Common Stock equal to the SAR Value
divided by the Fair Market Value on the date the Stock Appreciation Right is exercised or, at the Company’s election, cash
for the value so calculated.

 

(d) Shares Available Under Plan.
The granting of a Stock Appreciation Right in tandem with a Stock Option shall not affect the number of shares of Common Stock
available for awards under the Plan. The number of shares available for awards under the Plan will, however, be reduced by the
number of shares of Common Stock acquirable upon exercise of the Stock Option to which such Stock Appreciation Right relates.

 

    7

     

    

 

Section 7. Restricted Stock; Restricted Stock Units.

 

7.1. Grant. Shares of Restricted
Stock may be awarded either alone or in addition to other awards granted under the Plan. The Committee shall determine the eligible
persons to whom, and the time or times at which, grants of Restricted Stock will be awarded, the number of shares to be awarded,
the price (if any) to be paid by the Holder, any Restriction Period, the vesting schedule and rights to acceleration thereof, and
all other terms and conditions of the awards. In addition, the Committee may award Restricted Stock Units, which may be subject
to vesting and forfeiture conditions during the applicable Restriction Period, as set forth in an Agreement.

 

7.2. Restricted Stock Terms and Conditions.
Each Restricted Stock award shall be subject to the following terms and conditions:

 

(a) Certificates. Restricted Stock,
when issued, will be represented by a stock certificate or certificates registered in the name of the Holder to whom such Restricted
Stock shall have been awarded. During the Restriction Period, certificates representing the Restricted Stock and any securities
constituting Retained Distributions (as defined below) shall bear a legend to the effect that ownership of the Restricted Stock
(and such Retained Distributions) and the enjoyment of all rights appurtenant thereto are subject to the restrictions, terms and
conditions provided in the Plan and the Agreement. Such certificates shall be deposited by the Holder with the Company, together
with stock powers or other instruments of assignment, each endorsed in blank, which will permit transfer to the Company of all
or any portion of the Restricted Stock and any securities constituting Retained Distributions that shall be forfeited or that shall
not become vested in accordance with the Plan and the Agreement.

 

(b) Rights of Holder. Restricted
Stock shall constitute issued and outstanding shares of Common Stock for all corporate purposes. The Holder will have the right
to vote such Restricted Stock and to exercise all other rights, powers and privileges of a holder of Common Stock with respect
to such Restricted Stock, with the exceptions that (i) the Holder will not be entitled to delivery of the stock certificate or
certificates representing such Restricted Stock until the Restriction Period shall have expired and unless all other vesting requirements
with respect thereto shall have been fulfilled; (ii) the Company will retain custody of the stock certificate or certificates representing
the Restricted Stock during the Restriction Period; (iii) the Company will retain custody of all dividends and distributions (“Retained
Distributions”) made, paid or declared with respect to the Restricted Stock (and such Retained Distributions will be subject
to the same restrictions, terms and conditions as are applicable to the Restricted Stock) until such time, if ever, as the Restricted
Stock with respect to which such Retained Distributions shall have been made, paid or declared shall have become vested and with
respect to which the Restriction Period shall have expired; and (iv) a breach by the Holder of any of the restrictions, terms or
conditions contained in this Plan or the Agreement or otherwise established by the Committee with respect to any Restricted Stock
or Retained Distributions will cause a forfeiture of such Restricted Stock and any Retained Distributions with respect thereto.

 

(c) Vesting; Forfeiture. Upon the
expiration of the Restriction Period with respect to each award of Restricted Stock and the satisfaction of any other applicable
restrictions, terms and conditions (i) all or part of such Restricted Stock shall become vested in accordance with the terms of
the Agreement, and (ii) any Retained Distributions with respect to such Restricted Stock shall become vested to the extent that
the Restricted Stock related thereto shall have become vested. Any such Restricted Stock and Retained Distributions that do not
vest shall be forfeited to the Company and the Holder shall not thereafter have any rights with respect to such Restricted Stock
and Retained Distributions that shall have been so forfeited.

 

7.3. Restricted Stock Units Terms and
Conditions. Each Restricted Stock Units award shall be subject to the following terms and conditions:

 

(a) Settlement.
The Committee may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably practicable after
the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Holder’s election, in a manner
intended to comply with Section 409A.

 

(b) Stockholder
Rights. A Holder will have no rights of a holder of Common Stock with respect to shares subject to any Restricted Stock Unit
unless and until the shares are delivered in settlement of the Restricted Stock Unit.

 

    8

     

    

 

(c) Dividend Equivalents. If the
Committee provides, a grant of Restricted Stock Units may provide a Holder with the right to receive dividend equivalents. Dividend
equivalents may be paid currently or credited to an account for the Holder, settled in cash or shares and subject to the same restrictions
on transferability and forfeitability as the Restricted Stock Units with respect to which the dividend equivalents are granted
and subject to other terms and conditions as set forth in the Agreement.

 

Section 8. Other Stock-Based Awards.

 

Other Stock-Based Awards may be awarded,
subject to limitations under applicable law, that are denominated or payable in, valued in whole or in part by reference to, or
otherwise based on or related to, shares of Common Stock, as deemed by the Committee to be consistent with the purposes of the
Plan, including, without limitation, purchase rights, shares of Common Stock awarded which are not subject to any restrictions
or conditions, convertible or exchangeable debentures, or other rights convertible into shares of Common Stock and awards valued
by reference to the value of securities of or the performance of specified Subsidiaries. These Other Stock-Based Awards may include
performance shares or options, whose award is tied to specific performance goals. Other Stock-Based Awards may be awarded either
alone or in addition to or in tandem with any other awards under this Plan or any other plan of the Company. Each Other Stock-Based
Award shall be subject to such terms and conditions as may be determined by the Committee.

 

Section 9. Accelerated Vesting and Exercisability.

 

9.1. Non-Approved Transactions. If
there is a Change of Control, and the Board does not authorize or otherwise approve such transaction, then the vesting periods
of any and all Stock Options and other awards granted and outstanding under the Plan shall be accelerated and all such Stock Options
and awards will immediately and entirely vest, and the respective holders thereof will have the immediate right to purchase and/or
receive any and all Common Stock subject to such Stock Options and awards on the terms set forth in this Plan and the respective
Agreements respecting such Stock Options and awards, and all performance goals will be deemed achieved at 100% of target levels
and all other terms and conditions will be deemed met.

 

9.2. Approved Transactions. In the
event of an Asset Sale or if there is a Change of Control that has been approved by the Company’s Board of Directors, then
the Committee may (i) accelerate the vesting of any and all Stock Options and other awards granted and outstanding under the Plan;
(ii) require a Holder of any Stock Option, Stock Appreciation Right, Restricted Stock award or Other Stock-Based Award granted
under this Plan to relinquish such award to the Company upon the tender by the Company to Holder of cash, stock or other property,
or any combination thereof, in an amount equal to the Repurchase Value of such award; provided, however, that the obligation to
tender the Repurchase Value to such Holders may be subject to any terms and conditions to which the tender of consideration to
the Company’s stockholders in connection with the acquisition is subject, including any terms and conditions of the acquisition
providing for an adjustment to or escrow of such consideration; and provided, further, that in the case of any Stock Option or
Stock Appreciation Right with an exercise price that equals or exceeds the price paid for a share of Common Stock in connection
with the acquisition, the Committee may cancel the Stock Option or Stock Appreciation Right without the payment of consideration
therefor; and/or (iii) terminate all incomplete performance periods in respect of awards in effect on the date the acquisition
occurs, determine the extent to which performance goals have been met based upon such information then available as it deems relevant
and cause to be paid to the Holder all or the applicable portion of the award based upon the Committee’s determination of
the degree of attainment of performance goals, or on such other basis determined by the Committee.

 

9.3. Code Section 409A. Notwithstanding
any provisions of this Plan or any award granted hereunder to the contrary, no acceleration shall occur with respect to any award
to the extent such acceleration would cause the Plan or an award granted hereunder to fail to comply with Code Section 409A.

 

Section 10. Amendment and Termination.

 

The Board may at any time, and from time
to time, amend alter, suspend or discontinue any of the provisions of the Plan or any Agreement, but no amendment, alteration,
suspension or discontinuance shall be made that would impair the rights of a Holder under any Agreement theretofore entered into
hereunder, without the Holder’s consent, except as set forth in this Plan or the Agreement. Notwithstanding anything to the
contrary herein, no amendment to the provisions of the Plan shall be effective unless approved by the shareholders of the Company
to the extent shareholder approval is necessary to satisfy any provision of the Code or other applicable law or the listing requirements
of any national securities exchange on which the Company’s securities are listed.

 

    9

     

    

 

Section 11. Term of Plan.

 

11.1. Effective Date. The Plan shall
be effective upon the approval of the Company’s shareholders.

 

11.2. Termination Date. Unless terminated
by the Board, this Plan shall continue to remain effective until such time as no further awards may be granted and all awards granted
under the Plan are no longer outstanding. Notwithstanding the foregoing, grants of Incentive Stock Options may be made only during
the ten-year period beginning on the Effective Date.

 

Section 12. General Provisions.

 

12.1. Written Agreements. Each award
granted under the Plan shall be confirmed by, and shall be subject to the terms of, the Agreement executed by the Company and the
Holder, or such other document as may be determined by the Committee. The Committee may terminate any award made under the Plan
if the Agreement relating thereto is not executed and returned to the Company within 10 days after the Agreement has been delivered
to the Holder for his or her execution.

 

12.2. Unfunded Status of Plan. The
Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments
not yet made to a Holder by the Company, nothing contained herein shall give any such Holder any rights that are greater than those
of a general creditor of the Company.

 

12.3. Employees.

 

(a) Engaging in Competition With the
Company; Solicitation of Customers and Employees; Disclosure of Confidential Information. If a Holder’s employment with
the Company, Parent, Subsidiary or Affiliate is terminated for any reason whatsoever, and Holder (i) within three months after
the date thereof, accepts employment with any competitor of, or otherwise engages in competition with, the Company, Parent, Subsidiary
or Affiliate, (ii) within two years after the date thereof, solicits any customers or employees of the Company, Parent, Subsidiary
or Affiliate to do business with or render services to the Holder or any business with which the Holder becomes affiliated or to
which the Holder renders services or (iii) at any time uses or discloses to anyone outside the Company any confidential information
of the Company, Parent, Subsidiary or Affiliate in violation of the Company’s policies or any agreement between the Holder
and the Company, Parent, Subsidiary or Affiliate, the Committee, in its sole discretion, may require such Holder to return (through
the payment of cash, return and transfer to the Company of shares of Common Stock or by other methods determined by the Committee)
to the Company the economic value of any award that was realized or obtained by such Holder at any time during the period beginning
on the date that is six months prior to the date such Holder’s employment with the Company is terminated; provided, however,
that if the Holder is a resident of the State of California, such right must be exercised by the Company for cash within six months
after the date of termination of the Holder’s service to the Company or within six months after exercise of the applicable
Stock Option, whichever is later. In such event, Holder agrees to (1) remit to the Company, in cash, an amount equal to the difference
between the Fair Market Value of the shares subject to the award on the date of termination (or the sales price of such Shares
if the Shares were sold during such six month period) and the price the Holder paid the Company for such shares, or (2) in the
case of SARs, shall, at the Company’s election, return the full amount paid to the Holder in connection therewith.

 

(b) Termination for Cause. If a
Holder’s employment with the Company, Parent, subsidiary or Affiliate is terminated for cause, the Committee may, in its
sole discretion, require such Holder to return to the Company the economic value of any award that was realized or obtained by
such Holder at any time during the period beginning on that date that is six months prior to the date such Holder’s employment
with the Company is terminated. In such event, Holder agrees to (1) remit to the Company, in cash, an amount equal to the difference
between the Fair Market Value of the shares on the date of termination (or the sales price of such Shares if the shares were sold
during such six month period) and the price the Holder paid the Company for such shares, (2) with the consent of the Company, which
may be withheld for any reason or no reason, surrender to the Company shares of Common Stock having Fair Market Value equal to
the Fair Market Value on the date they were acquired upon exercise of the Option or (3) in the case of SARs, shall return the full
amount paid to the Holder in connection therewith.

 

    10

     

    

 

(c) No Right of Employment. Nothing
contained in the Plan or in any award hereunder shall be deemed to confer upon any Holder who is an employee of the Company, Parent,
Subsidiary or Affiliate any right to continued employment with the Company, Parent, Subsidiary or Affiliate, nor shall it interfere
in any way with the right of the Company, Parent, Subsidiary or Affiliate to terminate the employment of any Holder who is an employee
at any time.

 

12.4. No Fractional Shares. No fractional
shares of Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional
awards or other securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional
shares should be rounded, forfeited or otherwise eliminated.

 

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

 

12.6. Limitations
on Liability.

 

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

 

(b) Neither the Company
nor any Subsidiary shall be liable to a Holder or any other person as to: (i) the non-issuance or sale of shares as to which the
Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company’s counsel
to be necessary to the lawful issuance and sale of any shares hereunder; and (ii) any tax consequence expected, but not realized,
by any Holder or other person due to the receipt, exercise or settlement of any Award granted hereunder.

 

12.7. Lock-Up Period.
The Company may, at the request of any underwriter, placement agent or otherwise, in connection with the registered offering of
any Company securities under the Securities Act or pursuant to an exemption therefrom, prohibit Holders from, directly or indirectly,
selling or otherwise transferring any shares or other Company securities acquired under this Plan during a period of up to one
hundred eighty days following either the effective date of a Company registration statement filed under the Securities Act, in
the case of a registered offering, or the closing date of the sale of the Company securities, in the case of an offering exempt
from registration, or for such longer period as determined by the underwriter or placement agent.

 

12.8. Data Privacy. As a condition
for receiving any award, each Holder explicitly and unambiguously consents to the collection, use and transfer, in electronic or
other form, of personal data as described in this paragraph by and among the Company and its Parent, Subsidiaries and Affiliates
exclusively for implementing, administering and managing the Holder’s participation in the Plan. The Company and its Parent,
Subsidiaries and Affiliates may hold certain personal information about a Holder, including the Holder’s name, address and
telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s);
any shares held in the Company or its Parent, Subsidiaries and Affiliates; and award details, to implement, manage and administer
the Plan and awards (the “Data”). The Company and its Parent, Subsidiaries and Affiliates may transfer the Data amongst
themselves as necessary to implement, administer and manage a Holder’s participation in the Plan, and the Company and its
Parent, Subsidiaries and Affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration
and management. These recipients may be located in the Holder’s country, or elsewhere, and the Holder’s country may
have different data privacy laws and protections than the recipients’ country. By accepting an award, each Holder authorizes
such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and
manage the Holder’s participation in the Plan, including any required Data transfer to a broker or other third party with
whom the Company or the Holder may elect to deposit any shares. The Data related to a Holder will be held only as long as necessary
to implement, administer, and manage the Holder’s participation in the Plan. A Holder may, at any time, view the Data that
the Company holds regarding such Holder, request additional information about the storage and processing of the Data regarding
such Holder, recommend any necessary corrections to the Data regarding the Holder or refuse or withdraw the consents in this Section
12.8 in writing, without cost, by contacting the local human resources representative. The Company may cancel Holder’s ability
to participate in the Plan and, in the Committee’s discretion, the Holder may forfeit any outstanding awards if the Holder
refuses or withdraws the consents in this Section 12.8. For more information on the consequences of refusing or withdrawing consent,
Holders may contact their local human resources representative.

 

    11

     

    

 

12.9. Successor. The obligations
of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation
or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all
of the assets and business of the Company and its Subsidiaries, taken as a whole.

 

12.10. Investment Representations; Company
Policy. The Committee may require each person acquiring shares of Common Stock pursuant to a Stock Option or other award under
the Plan to represent to and agree with the Company in writing that the Holder is acquiring the shares for investment without a
view to distribution thereof. Each person acquiring shares of Common Stock pursuant to a Stock Option or other award under the
Plan shall be required to abide by all policies of the Company in effect at the time of such acquisition and thereafter with respect
to the ownership and trading of the Company’s securities.

 

12.11. Additional Incentive Arrangements.
Nothing contained in the Plan shall prevent the Board from adopting such other or additional incentive arrangements as it may deem
desirable, including, but not limited to, the granting of Stock Options and the awarding of Common Stock and cash otherwise than
under the Plan; and such arrangements may be either generally applicable or applicable only in specific cases.

 

12.12. Withholding Taxes. Not later
than the date as of which an amount must first be included in the gross income of the Holder for Federal income tax purposes with
respect to any Stock Option or other award under the Plan, the Holder shall pay to the Company, or make arrangements satisfactory
to the Committee regarding the payment of, any Federal, state and local taxes of any kind required by law to be withheld or paid
with respect to such amount. If permitted by the Committee, tax withholding or payment obligations may be settled with Common Stock,
including Common Stock that is part of the award that gives rise to the withholding requirement. The obligations of the Company
under the Plan shall be conditioned upon such payment or arrangements and the Company or the Holder’s employer (if not the
Company) shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise
due to the Holder from the Company or any Subsidiary.

 

12.13. Clawback. Notwithstanding
any other provisions of the Plan, any award which is subject to recovery under any law, government regulation or listing requirement
of any national securities exchange on which the Company’s securities are listed, will be subject to such deductions and
clawback as may be required to be made pursuant to such law, government regulation or listing requirement (or any policy adopted
by the Company pursuant to any such law, government regulation or listing requirement).

 

12.14. Governing Law. The Plan and
all awards made and actions taken thereunder shall be governed by and construed in accordance with the law of the State of Delaware
(without regard to choice of law provisions).

 

12.15. Other Benefit Plans. Any award
granted under the Plan shall not be deemed compensation for purposes of computing benefits under any retirement plan of the Company
or any Parent, Subsidiary or Affiliate and shall not affect any benefits under any other benefit plan now or subsequently in effect
under which the availability or amount of benefits is related to the level of compensation (unless required by specific reference
in any such other plan to awards under this Plan).

 

    12

     

    

 

12.16. Non-Transferability. Except
as otherwise expressly provided in the Plan or the Agreement, no right or benefit under the Plan may be alienated, sold, assigned,
hypothecated, pledged, exchanged, transferred, encumbranced or charged, and any attempt to alienate, sell, assign, hypothecate,
pledge, exchange, transfer, encumber or charge the same shall be void.

 

12.17. Applicable Laws. The obligations
of the Company with respect to all Stock Options and other awards under the Plan shall be subject to (i) all applicable laws, rules
and regulations and such approvals by any governmental agencies as may be required, including, without limitation, the Securities
Act, and (ii) the rules and regulations of any securities exchange on which the Common Stock may be listed. Notwithstanding anything
herein to the contrary, the Plan and all awards will be administered only in conformance with such applicable laws. To the extent
such applicable laws permit, the Plan and all Agreements will be deemed amended as necessary to conform to such applicable laws.

 

12.18. Conflicts. If any of the terms
or provisions of the Plan or an Agreement conflict with the requirements of Section 422 of the Code, then such terms or provisions
shall be deemed inoperative to the extent they so conflict with such requirements. Additionally, if this Plan or any Agreement
does not contain any provision required to be included herein under Section 422 of the Code, such provision shall be deemed to
be incorporated herein and therein with the same force and effect as if such provision had been set out at length herein and therein.
If any of the terms or provisions of any Agreement conflict with any terms or provisions of the Plan, then such terms or provisions
shall be deemed inoperative to the extent they so conflict with the requirements of the Plan. Additionally, if any Agreement does
not contain any provision required to be included therein under the Plan, such provision shall be deemed to be incorporated therein
with the same force and effect as if such provision had been set out at length therein.

 

12.19. Compliance with Section 409A of
the Code. The Company intends that any awards be structured in compliance with, or to satisfy an exemption from, Section 409A
of the Code, such that there are no adverse tax consequences, interest, or penalties pursuant to Section 409A of the Code as a
result of the awards. Notwithstanding the Company’s intention, in the event any award is subject to Section 409A of the Code,
the Committee may, in its sole discretion and without a participant’s prior consent, amend this Plan and/or outstanding Agreements,
adopt policies and procedures, or take any other actions (including amendments, policies, procedures and actions with retroactive
effect) as are necessary or appropriate to (i) exempt this Plan and/or any award from the application of Section 409A of the Code,
(ii) preserve the intended tax treatment of any such award, or (iii) comply with the requirements of Section 409A of the Code,
including without limitation any such regulations guidance, compliance programs and other interpretive authority that may be issued
after the date of grant of an award. This Plan shall be interpreted at all times in such a manner that the terms and provisions
of the Plan and the awards are exempt from or comply with Section 409A of the Code.

 

12.20. Sub-Plans. The Committee may
from time to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or other laws of various
jurisdictions in which the Company intends to grant awards. Any sub-plans shall contain such limitations and other terms and conditions
as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall
apply only to the participants in the jurisdiction for which the sub-plan was designed.

 

12.21. Non-Registered Stock. The
shares of Common Stock to be distributed under this Plan have not been, as of the Effective Date, registered under the Securities
Act or any applicable state or foreign securities laws and the Company has no obligation to any Holder to register the Common Stock
or to assist the Holder in obtaining an exemption from the various registration requirements, or to list the Common Stock on a
national securities exchange or any other trading or quotation system.

 

12.22. Non-Uniform Treatment. The
Committee’s determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible
to receive, or actually receive, awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make
non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Agreements.

 

 

13

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