Document:

Exhibit 10.37

 

Option No.________

HYDROFARM HOLDINGS GROUP, INC.

 

Stock Option Grant Notice

Stock Option Grant under the Company’s

2019 Employee, Director and Consultant Equity
Incentive Plan

 

	1.	Name and Address of Participant:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	2.	Date of Option Grant:	 	 
	 	 	 	 
	3.	Type of Grant: 	 	Non-Qualified Option
	 	 	 	 
	4.	Maximum Number of Shares for which this Option is exercisable:	 	 
	 	 	 	 
	 	 	 	 
	5.	Exercise (purchase) price per share:	 	 
	 	 	 	 
	6.	Option Expiration Date:	 	 
	 	 	 	 
	7.	Vesting Start Date:	 	 

 

	8.	Vesting Schedule: This Option shall become exercisable (and the Shares issued upon exercise shall
be vested) as follows provided the Participant is an Employee, director or Consultant of the Company or of an Affiliate on the
applicable vesting date:

 

[Insert
Vesting Schedule]

 

The foregoing rights
are cumulative and are subject to the other terms and conditions of this Agreement and the Plan.

 

The Company and the
Participant acknowledge receipt of this Stock Option Grant Notice and agree to the terms of the Stock Option Agreement attached
hereto and incorporated by reference herein, the Company’s 2019 Employee, Director and Consultant Equity Incentive Plan and
the terms of this Option Grant as set forth above.

 

	 	HYDROFARM
    HOLDINGS GROUP, INC.
	 	 
	 	By:	 
	 	 	Name: 	                
	 	 	Title:	 
	 	 
	 	 
	 	Participant

 

     

     

    

 

HYDROFARM HOLDINGS GROUP, INC.

 

STOCK OPTION AGREEMENT- INCORPORATED
TERMS AND CONDITIONS 

 

AGREEMENT made as of
the date of grant set forth in the Stock Option Grant Notice by and between (the “Company”), a Delaware corporation,
and the individual whose name appears on the Stock Option Grant Notice (the “Participant”).

 

WHEREAS, the Company
desires to grant to the Participant an Option to purchase shares of its common stock, $.0001 par value per share (the “Shares”),
under and for the purposes set forth in the Company’s 2019 Employee, Director and Consultant Equity Incentive Plan (the “Plan”);

 

WHEREAS, the Company
and the Participant understand and agree that any terms used and not defined herein have the same meanings as in the Plan; and

 

WHEREAS, the Company
and the Participant each intend that the Option granted herein shall be a Non-Qualified Stock Option.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree
as follows:

 

1.           
GRANT OF OPTION.

 

The Company hereby grants
to the Participant the right and option to purchase all or any part of an aggregate of the number of Shares set forth in the Stock
Option Grant Notice, on the terms and conditions and subject to all the limitations set forth herein, under United States securities
and tax laws, and in the Plan, which is incorporated herein by reference. The Participant acknowledges receipt of a copy of the
Plan.

 

2.           
EXERCISE PRICE.

 

The exercise price of
the Shares covered by the Option shall be the amount per Share set forth in the Stock Option Grant Notice, subject to adjustment,
as provided in the Plan, in the event of a stock split, reverse stock split or other events affecting the holders of Shares after
the date hereof (the “Exercise Price”). Payment shall be made in accordance with Paragraph 9 of the Plan.

 

3.            EXERCISABILITY OF OPTION.

 

Subject to the terms
and conditions set forth in this Agreement and the Plan, the Option granted hereby shall become vested and exercisable as set forth
in the Stock Option Grant Notice and is subject to the other terms and conditions of this Agreement and the Plan.

 

     

     

    

 

4.            TERM OF OPTION.

 

This Option shall terminate
on the Option Expiration Date as specified in the Stock Option Grant Notice but shall be subject to earlier termination as provided
herein or in the Plan.

 

If the Participant ceases
to be an Employee, director or Consultant of the Company or of an Affiliate for any reason other than the death or Disability of
the Participant, or termination of the Participant for Cause (the “Termination Date”), the Option to the extent then
vested and exercisable pursuant to Section 3 hereof as of the Termination Date, and not previously terminated in accordance with
this Agreement, may be exercised within three months after the Termination Date, or on or prior to the Option Expiration Date as
specified in the Stock Option Grant Notice, whichever is earlier, but may not be exercised thereafter except as set forth below.
In such event, the unvested portion of the Option shall not be exercisable and shall expire and be cancelled on the Termination
Date.

 

Notwithstanding the foregoing,
in the event of the Participant’s death within three (3) months after the Termination Date, the Participant’s Survivors
may exercise the Option within one (1) year after the Termination Date, but in no event after the Option Expiration Date as specified
in the Stock Option Grant Notice, and this Option shall thereupon terminate.

 

In the event the Participant’s
service is terminated by the Company or an Affiliate for Cause, the Participant’s right to exercise any unexercised portion
of this Option even if vested shall cease immediately as of the time the Participant is notified his or her service is terminated
for Cause, and this Option shall thereupon terminate. Notwithstanding anything herein to the contrary, if subsequent to the Participant’s
termination, but prior to the exercise of the Option, the Administrator determines that, either prior or subsequent to the Participant’s
termination, the Participant engaged in conduct which would constitute Cause, then the Participant shall immediately cease to have
any right to exercise the Option and this Option shall thereupon terminate.

 

In the event of the Disability
of the Participant while an Employee, director or Consultant of the Company or of an Affiliate, as determined in accordance with
the Plan, the Option shall be exercisable within one (1) year after the Participant’s termination of service due to Disability
or, if earlier, on or prior to the Option Expiration Date as specified in the Stock Option Grant Notice. In such event, the Option
shall be exercisable:

 

		(a)	to the extent that the Option has become exercisable but has not been exercised as of the date
of the Participant’s termination of service due to Disability; and

 

		(b)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of the Participant’s termination of service due to Disability of any additional vesting rights that would
have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of
days accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability.

 

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In the event of the death
of the Participant while an Employee, director or Consultant of the Company or of an Affiliate, the Option shall be exercisable
by the Participant’s Survivors within one year after the date of death of the Participant or, if earlier, on or prior to
the Option Expiration Date as specified in the Stock Option Grant Notice. In such event, the Option shall be exercisable:

 

		(x)	to the extent that the Option has become exercisable but has not been exercised as of the date
of death; and

 

		(y)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant
not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s
date of death.

 

5.           
METHOD OF EXERCISING OPTION.

 

Subject to the terms
and conditions of this Agreement, the Option may be exercised by written notice to the Company or its designee, in substantially
the form of Exhibit A attached hereto (or in such other form acceptable to the Company, which may include electronic
notice). Such notice shall state the number of Shares with respect to which the Option is being exercised and shall be signed by
the person exercising the Option (which signature may be provided electronically in a form acceptable to the Company). Payment
of the Exercise Price for such Shares shall be made in accordance with Paragraph 9 of the Plan. The Company shall deliver such
Shares as soon as practicable after the notice shall be received, provided, however, that the Company may delay issuance of such
Shares until completion of any action or obtaining of any consent, which the Company deems necessary under any applicable law (including,
without limitation, state securities or “blue sky” laws). The Shares as to which the Option shall have been so exercised
shall be registered in the Company’s share register in the name of the person so exercising the Option (or, if the Option
shall be exercised by the Participant and if the Participant shall so request in the notice exercising the Option, shall be registered
in the Company’s share register in the name of the Participant and another person jointly, with right of survivorship) and
shall be delivered as provided above to or upon the written order of the person exercising the Option. In the event the Option
shall be exercised, pursuant to Section 4 hereof, by any person other than the Participant, such notice shall be accompanied by
appropriate proof of the right of such person to exercise the Option. All Shares that shall be purchased upon the exercise of the
Option as provided herein shall be fully paid and nonassessable.

 

6.           
PARTIAL EXERCISE.

 

Exercise of this Option
to the extent above stated may be made in part at any time and from time to time within the above limits, except that no fractional
share shall be issued pursuant to this Option.

 

7.           
NON-ASSIGNABILITY.

 

The Option shall not
be transferable by the Participant otherwise than by will or by the laws of descent and distribution, or as otherwise provided
in the Plan and approved by the Administrator. Except as provided above in this paragraph, the Option shall be exercisable, during
the Participant’s lifetime, only by the Participant (or, in the event of legal incapacity or incompetency, by the Participant’s
guardian or representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise)
and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation
or other disposition of the Option or of any rights granted hereunder contrary to the provisions of this Section 7, or the levy
of any attachment or similar process upon the Option shall be null and void.

 

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8.           
NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

The Participant shall
have no rights as a stockholder with respect to Shares subject to this Agreement until registration of the Shares in the Company’s
share register in the name of the Participant. Except as is expressly provided in the Plan with respect to certain changes in the
capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior to
the date of such registration.

 

9.           
ADJUSTMENTS.

 

The Plan contains provisions
covering the treatment of Options in a number of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment
with respect to stock subject to Options and the related provisions with respect to successors to the business of the Company are
hereby made applicable hereunder and are incorporated herein by reference.

 

10.         
TAXES.

 

The Participant acknowledges
and agrees that (i) any income or other taxes due from the Participant with respect to this Option or the Shares issuable upon
exercise of this Option shall be the Participant’s responsibility; (ii) the Participant was free to use professional advisors
of his or her choice in connection with this Agreement, has received advice from his or her professional advisors in connection
with this Agreement, understands its meaning and import, and is entering into this Agreement freely and without coercion or duress;
(iii) the Participant has not received and is not relying upon any advice, representations or assurances made by or on behalf of
the Company or any Affiliate or any Employee of or counsel to the Company or any Affiliate regarding any tax or other effects or
implications of the Option, the Shares or other matters contemplated by this Agreement and (iv) neither the Administrator, the
Company, its Affiliates, nor any of its officers or directors, shall be held liable for any applicable costs, taxes, or penalties
associated with the Option if, in fact, the Internal Revenue Service were to determine that the Option constitutes deferred compensation
under Section 409A of the Code.

 

This Option is designated
in the Stock Option Grant Notice as a Non-Qualified Option and when such Non-Qualified Option is exercised, the Participant agrees
that the Company may withhold from the Participant’s remuneration, if any, the minimum statutory amount of federal, state
and local withholding taxes attributable to such amount that is considered compensation includable in such person’s gross
income. At the Company’s discretion, the amount required to be withheld may be withheld in cash from such remuneration, or
in kind from the Shares otherwise deliverable to the Participant on exercise of the Option. The Participant further agrees that,
if the Company does not withhold an amount from the Participant’s remuneration sufficient to satisfy the Company’s
income tax withholding obligation, the Participant will reimburse the Company on demand, in cash, for the amount under-withheld.

 

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11.         
PURCHASE FOR INVESTMENT.

 

Unless the offering and
sale of the Shares to be issued upon the particular exercise of the Option shall have been effectively registered under the Securities
Act of 1933, as now in force or hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue
the Shares covered by such exercise unless the Company has determined that such exercise and issuance would be exempt from the
registration requirements of the 1933 Act and until the following conditions have been fulfilled:

 

		(a)	The person(s) who exercise the Option shall warrant to the Company, at the time of such exercise,
that such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to, or for
sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound
by the provisions of the following legend which shall be endorsed upon any certificate(s) evidencing the Shares issued pursuant
to such exercise:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a
pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act
of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration
under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws;” and

 

		(b)	If the Company so requires, the Company shall have received an opinion of its counsel that the
Shares may be issued upon such particular exercise in compliance with the 1933 Act without registration thereunder. Without limiting
the generality of the foregoing, the Company may delay issuance of the Shares until completion of any action or obtaining of any
consent, which the Company deems necessary under any applicable law (including without limitation state securities or “blue
sky” laws).

 

12.         
RESTRICTIONS ON TRANSFER OF SHARES.

 

12.1        The
Shares acquired by the Participant pursuant to the exercise of the Option granted hereby shall not be transferred by the
Participant except as permitted [herein] [in the Stockholders Agreement dated ________ between the Company and its
stockholders (the “Stockholders Agreement”)] [if the Participant becomes a party thereto, as set forth in the in
the Stockholders Agreement dated ________ between the Company and its stockholders (the “Stockholders
Agreement”)]. If the Participant becomes a party to the Stockholders’ Agreement by executing a signature page
thereto and the terms of this Agreement and the Stockholders’ Agreement conflict, the terms contained in the
Stockholders’ Agreement shall govern and supersede any conflicting provision contained in this Section 12].1

 

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12.2       
In the event of the Participant’s termination of service for any reason, the Company shall have the option, but not
the obligation, to repurchase all or any part of the Shares issued pursuant to this Agreement (including, without limitation, Shares
purchased after termination of service, Disability or death in accordance with Section 4 hereof). In the event the Company does
not, upon the termination of service of the Participant (as described above), exercise its option pursuant to this Section 12.2,
the restrictions set forth in the balance of this Agreement shall not thereby lapse, and the Participant for himself or herself,
his or her heirs, legatees, executors, administrators and other successors in interest, agrees that the Shares shall remain subject
to such restrictions. The following provisions shall apply to a repurchase under this Section 12.2:

 

		(i)	The per share repurchase price of the Shares to be sold to the Company upon exercise of its option
under this Section 12.2 shall be equal to the Fair Market Value of each such Share determined in accordance with the Plan as of
the date of repurchase provided, however, in the event of a termination by the Company for Cause, the per share repurchase price
of the Shares to be sold to the Company upon exercise of its option under this Section 12.2 shall be equal to [the lesser of
the Exercise Price and the Fair Market Value on the date of the repurchase] OR [par value]].2

 

		(ii)	The Company’s option to repurchase the Participant’s Shares in the event of termination
of service shall be valid for a period of [twelve]([12]) months commencing with the date of such termination of service.3

 

		(iii)	In the event the Company shall be entitled to and shall elect to exercise its option to repurchase
the Participant’s Shares under this Section 12.2, the Company shall notify the Participant, or in case of death, his or her
Survivor, in writing of its intent to repurchase the Shares. Such written notice may be mailed or sent by email by the Company
up to and including the last day of the time period provided for in Section 12.2(ii) above for exercise of the Company’s
option to repurchase.

 

		(iv)	The notice to the Participant shall specify the address at, and the time and date on, which payment
of the repurchase price is to be made (the “Closing”). The date specified shall not be less than ten (10) days nor
more than sixty (60) days from the date of the mailing of the notice, and the Participant or his or her successor in interest with
respect to the Shares shall have no further rights as the owner thereof from and after the date specified in the notice. At the
Closing, the repurchase price shall be delivered to the Participant or his or her successor in interest and the Shares being purchased,
duly endorsed for transfer, shall, to the extent that they are not then in the possession of the Company, be delivered to the Company
by the Participant or his or her successor in interest.

 

 

1 The first bracket should
be used if the Participant is not a party to and not expected to become a party to a stockholders’ agreement containing
transfer restrictions and/or buyback provisions. The second bracket should be used if the Participant is or will become a party
to a stockholders’ agreement. In such case other portions of this section 12 should be deleted so that there is no conflict
between the stockholders’ agreement and the terms of this agreement. The third bracket and additional language regarding
conflicting provisions should be used, together with the “herein” language if the Company wants to use a generic option
agreement and some Participants are or will become a party to the stockholders agreement.

2 Consider alternate price
for termination for Cause.

3 If the Company repurchases
a participant’s shares within six months of their issuance the company will incur a variable accounting charge. Therefore
the repurchase period should be not less than nine months so the repurchase can occur after the participant has held the shares
for six months.

 

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12.3         
[Alternative 1 – As a condition precedent to the exercise of the Option, the Participant agrees to become a
party to the Stockholders Agreement.] [Alternative 2] It shall be a condition precedent to the validity of any sale or other
transfer of any Shares by the Participant that the following restrictions be complied with (except as otherwise provided in this
Section 12)4:

 

		(i)	No Shares owned by the Participant may be sold, pledged or otherwise transferred (including by
gift or devise) to any person or entity, voluntarily, or by operation of law, except in accordance with the terms and conditions
hereinafter set forth.

 

		(ii)	Before selling or otherwise transferring all or part of the Shares, the Participant shall
                                                                                                                                               give written notice of such intention to the Company, which notice shall include the name of the proposed transferee, the
                                                                                                                                               proposed purchase price per share, the terms of payment of such purchase price and all other matters relating to such sale or
                                                                                                                                               transfer and shall be accompanied by a copy of the binding written agreement of the proposed transferee to purchase the
                                                                                                                                               Shares of the Participant. Such notice shall constitute a binding offer by the Participant to sell to the Company such number
                                                                                                                                               of the Shares then held by the Participant as are proposed to be sold in the notice at the monetary price per share
                                                                                                                                               designated in such notice, payable on the terms offered to the Participant by the proposed transferee (provided, however,
                                                                                                                                               that the Company shall not be required to meet any non-monetary terms of the proposed transfer, including, without
                                                                                                                                               limitation, delivery of other securities in exchange for the Shares proposed to be sold). The Company shall give written
                                                                                                                                               notice to the Participant as to whether such offer has been accepted in whole by the Company within sixty (60) days after its
                                                                                                                                               receipt of written notice from the Participant. The Company may only accept such offer in whole and may not accept such offer
                                                                                                                                               in part. Such acceptance notice shall fix a time, location and date for the Closing on such purchase (“Closing
                                                                                                                                               Date”) which shall not be less than ten (10) nor more than sixty (60) days after the giving of the acceptance notice,
                                                                                                                                               provided, however, if any of the Shares to be sold pursuant to this Section 12.3 have been held by the Participant for less
                                                                                                                                               than six (6) months, then the Closing Date may be extended by the Company until no more than ten (10) days after such Shares
                                                                                                                                               have been held by the Participant for six (6) months if required under applicable accounting rules in effect at the
                                                                                                                                               time. 5. The place for such Closing shall be
                                                                                                                                               at the Company’s principal office. At such Closing, the Participant shall accept payment as set forth herein and shall
                                                                                                                                               deliver to the Company in exchange therefor certificates for the number of Shares stated in the notice accompanied by duly
                                                                                                                                               executed instruments of transfer.

 

		(iii)	If the Company shall fail to accept any such offer, the Participant shall be free to sell all,
but not less than all, of the Shares set forth in his or her notice to the designated transferee at the price and terms designated
in the Participant’s notice, provided that (i) such sale is consummated within six (6) months after the giving of notice
by the Participant to the Company as aforesaid, and (ii) the transferee first agrees in writing to be bound by the provisions of
this Section 12 so that such transferee (and all subsequent transferees) shall thereafter only be permitted to sell or transfer
the Shares in accordance with the terms hereof, and the Company’s right of repurchase set forth in Section 12.2 above shall
continue in accordance with its terms. After the expiration of such six (6) months, the provisions of this Section 12.3 shall again
apply with respect to any proposed voluntary transfer of the Participant’s Shares.

 

 

4 Conform with Section 12.1.

 

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		(iv)	The restrictions on transfer contained in this Section 12.3 shall not apply to (a) transfers by
the Participant to his or her spouse or children or to a trust for the benefit of his or her spouse or children, (b) transfers
by the Participant to his or her guardian or conservator, and (c) transfers by the Participant, in the event of his or her death,
to his or her executor(s) or administrator(s) or to trustee(s) under his or her will (collectively, “Permitted Transferees”);
provided however, that in any such event the Shares so transferred in the hands of each such Permitted Transferee shall remain
subject to this Agreement, and each such Permitted Transferee shall so acknowledge in writing as a condition precedent to the effectiveness
of such transfer.

 

		(v)	The provisions of this Section 12.3 may be waived by the Company. Any such waiver may be unconditional
or based upon such conditions as the Company may impose.

 

12.4       
In the event that the Participant or his or her successor in interest fails to deliver the Shares to be repurchased by the
Company under this Agreement, the Company may elect (a) to establish a segregated account in the amount of the repurchase
price, such account to be turned over to the Participant or his or her successor in interest upon delivery of such Shares, and
(b) immediately to take such action as is appropriate to transfer record title of such Shares from the Participant to the
Company and to treat the Participant and such Shares in all respects as if delivery of such Shares had been made as required by
this Agreement. The Participant hereby irrevocably grants the Company a power of attorney which shall be coupled with an interest
for the purpose of effectuating the preceding sentence.

 

12.5       
[In the event that (i) the Board of Directors and (ii) the holders of a majority of the then outstanding shares of Common
Stock approve a Sale of the Company (as defined below), specifying that this Section 12.5 shall apply, then the Participant hereby
agrees as follows with respect to the Shares and any other equity securities of the Company which the Participant holds or otherwise
exercises dispositive power (the “Drag Along Shares”):

 

		(i)	in the event such Sale of the Company requires the approval of stockholders, (1) if the matter
is to be brought to a vote at a stockholder meeting, after receiving proper notice of any meeting of stockholders of the Company
to vote on the approval of a Sale of the Company, to be present, in person or by proxy, as a holder of Shares, at all such meetings
and be counted for the purposes of determining the presence of a quorum at such meetings; and (2) to vote (in person, by proxy
or by action by written consent, as applicable) all Shares in favor of such Sale of the Company and in opposition of any and all
other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Sale of the
Company;

 

 

5 If the Company repurchases
a Participant’s shares within six months of their issuance, the Company will incur a variable accounting charge. Accordingly,
the Company should have the option to extend the Closing to avoid the variable accounting charge if it so desires.

 

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		(ii)	to refrain from exercising any dissenters’ rights or rights of appraisal under applicable
law at any time with respect to such Sale of the Company; and

 

		(iii)	to sell to such third party on the terms offered by such third party the Drag Along Shares, or
if such Sale of the Company involves less than all of the outstanding capital stock of the Company, the Participant’s pro
rata share of the Drag Along Shares, and to execute and deliver all related documentation and take such other action in support
of the Sale of the Company as shall reasonably be requested by the Company.

 

As used herein, the following
terms shall have the following respective meanings:

 

“Sale
of the Company” means:

 

		(i)	a merger or consolidation in which (A) the Company is a constituent party or (B) a subsidiary of
the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation,
except any such merger or consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company
outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares
of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the
capital stock of (1) the surviving or resulting corporation or (2) if the surviving or resulting corporation is a wholly owned
subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of such surviving
or resulting corporation (provided that, for the purpose of this clause (i) all shares of Common Stock issuable upon exercise of
options or warrants outstanding immediately prior to such merger or consolidation or upon conversion of convertible securities
immediately prior to such merger or consolidation shall be deemed to be outstanding immediately prior to such merger or consolidation
and, if applicable, converted or exchanged in such merger or consolidation on the same terms as the actual outstanding shares of
Common Stock are converted or exchanged);

 

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		(ii)	the sale, lease, transfer, exclusive license (other than an exclusive license approved by the Board
of Directors) or other disposition of all or substantially all the assets of the Company and its subsidiaries taken as a whole,
in a single transaction or series of related transactions, by the Company or any subsidiary of the Company, or the sale or disposition
(whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and
its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive
license (other than an exclusive license approved by the Board of Directors) or other disposition is to a wholly owned subsidiary
of the Company[; or

 

		(iii)	any transaction or series of related transactions to which the Company is a party in which in excess
of fifty percent (50%) of the Company’s voting power is transferred such that the stockholders of the Company immediately
prior to the transaction or series of related transactions do not own a majority of the voting power of the surviving or acquiring
entity following such transaction or series of transactions; other than any transaction or series of transactions principally for
bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is
cancelled or converted or a combination thereof].]

 

12.6       
If the Company shall pay a stock dividend or declare a stock split on or with respect to any of its Common Stock, or otherwise
distribute securities of the Company to the holders of its Common Stock, the number of shares of stock or other securities of the
Company issued with respect to the shares then subject to the restrictions contained in this Agreement shall be added to the Shares
subject to the Company’s rights to repurchase pursuant to this Agreement. If the Company shall distribute to its stockholders
shares of stock of another corporation or equity in another entity, the shares of stock of such other corporation or equity in
such other entity, distributed with respect to the Shares then subject to the restrictions contained in this Agreement, shall be
added to the Shares subject to the Company’s rights to repurchase pursuant to this Agreement.

 

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12.7       
If the outstanding shares of Common Stock of the Company shall be subdivided into a greater number of shares or combined
into a smaller number of shares, or in the event of a reclassification of the outstanding shares of Common Stock of the Company,
or if the Company shall be a party to a merger, consolidation or capital reorganization, there shall be substituted for the Shares
then subject to the restrictions contained in this Agreement such amount and kind of securities as are issued in such subdivision,
combination, reclassification, merger, consolidation or capital reorganization in respect of the Shares subject immediately prior
thereto to the Company’s rights to repurchase pursuant to this Agreement.

 

12.8       
The Company shall not be required to transfer any Shares on its books which shall have been sold, assigned or otherwise
transferred in violation of this Agreement, or to treat as owner of such Shares, or to accord the right to vote as such owner or
to pay dividends to, any person or organization to which any such Shares shall have been so sold, assigned or otherwise transferred,
in violation of this Agreement.

 

12.9       
The provisions of Sections 12.1, 12.2 and 12.3 shall terminate upon the effective date of the registration of the Shares
pursuant to the Securities Exchange Act of 1934.

 

12.10     
The Participant agrees that in the event the Company proposes to offer for sale to the public any of its equity securities
and such Participant is requested by the Company and any underwriter engaged by the Company in connection with such offering to
sign an agreement restricting the sale or other transfer of Shares, then it will promptly sign such agreement and will not transfer,
whether in privately negotiated transactions or to the public in open market transactions or otherwise, any Shares or other securities
of the Company held by him or her during such period as is determined by the Company and the underwriters, not to exceed 180 days
following the closing of the offering, plus such additional period of time as may be required to comply with FINRA Rules or similar
rules promulgated by another regulatory authority (such period, the “Lock-Up Period”). Such agreement shall be in writing
and in form and substance reasonably satisfactory to the Company and such underwriter and pursuant to customary and prevailing
terms and conditions. Notwithstanding whether the Participant has signed such an agreement, the Company may impose stop-transfer
instructions with respect to the Shares or other securities of the Company subject to the foregoing restrictions until the end
of the Lock-Up Period.

 

12.11     
The Participant acknowledges and agrees that neither the Company, its shareholders nor its directors and officers, has any
duty or obligation to disclose to the Participant any material information regarding the business of the Company or affecting the
value of the Shares before, at the time of, or following a termination of the service of the Participant by the Company, including,
without limitation, any information concerning plans for the Company to make a public offering of its securities or to be acquired
by or merged with or into another firm or entity.

 

12.12     
All certificates representing the Shares to be issued to the Participant pursuant to this Agreement shall have endorsed
thereon a legend substantially as follows: “The shares represented by this certificate are subject to restrictions set forth
in a Stock Option Agreement dated [Date] with this Company, a copy of which Agreement is available for inspection at the offices
of the Company or will be made available upon request.”

 

    11 

     

    

 

13.         
NO OBLIGATION TO MAINTAIN RELATIONSHIP.

 

The Participant acknowledges
that: (i) the Company is not by the Plan or this Option Agreement obligated to continue the Participant as an Employee, director
or Consultant of the Company or an Affiliate; (ii) the Plan is discretionary in nature and may be suspended or terminated by the
Company at any time; (iii) the grant of the Option is a one-time benefit which does not create any contractual or other right to
receive future grants of options, or benefits in lieu of options; (iv) all determinations with respect to any such future grants,
including, but not limited to, the times when options shall be granted, the number of shares subject to each option, the option
price, and the time or times when each option shall be exercisable, will be at the sole discretion of the Company; (v) the Participant’s
participation in the Plan is voluntary; (vi) the value of the Option is an extraordinary item of compensation which is outside
the scope of the Participant’s employment or consulting contract, if any; and (vii) the Option is not part of normal or expected
compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments.

 

14.         
NOTICES.

 

Any notices required
or permitted by the terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, registered or
certified mail, return receipt requested, or by email addressed as follows:

 

If to the Company:

 

Hydrofarm Holdings Group, Inc.

2249 South McDowell Boulevard Ext

Petaluma, California 94954

Attention: [_____]

Email: [_______]

 

If to the Participant at the address set forth on the Stock
Option Grant Notice or such address as the Company may then have in its records for the Participant or to such other address or
addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given upon
the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing
by registered or certified mail.

 

15.         
GOVERNING LAW.

 

This Agreement shall
be governed by and construed in accordance with the laws of the Delaware, without giving effect to its internal principles governing
the conflict of law. For the purpose of litigating any dispute that arises under this Agreement, the parties hereby consent to
exclusive jurisdiction in California and agree that such litigation shall be conducted in the state courts of Sonoma County, California
or the federal courts of the United States for the District of California.

 

    12 

     

    

 

16.         
BENEFIT OF AGREEMENT.

 

Subject to the provisions
of the Plan and the other provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors,
administrators, successors and assigns of the parties hereto.

 

17.         
ENTIRE AGREEMENT.

 

This Agreement, together
with the Plan, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof
and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation,
warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict,
the express terms and provisions of this Agreement, provided, however, in any event, this Agreement shall be subject to and governed
by the Plan.

 

18.         
MODIFICATIONS AND AMENDMENTS.

 

The terms and provisions
of this Agreement may be modified or amended as provided in the Plan.

 

19.         
WAIVERS AND CONSENTS.

 

Except as provided in
the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed
to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar.
Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall
not constitute a continuing waiver or consent.

 

20.         
DATA PRIVACY.

 

By entering into this
Agreement, the Participant: (i) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate administering
the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its Affiliates such information and data
as the Company or any such Affiliate shall request in order to facilitate the grant of options and the administration of the Plan;
(ii) to the extent permitted by applicable law waives any data privacy rights he or she may have with respect to such information;
and (iii) authorizes the Company and each Affiliate to store and transmit such information in electronic form for the purposes
set forth in this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    13 

     

    

 

Exhibit A

 

NOTICE OF EXERCISE OF STOCK OPTION

 

[Form for Unregistered Shares]

 

To:          Hydrofarm Holdings Group, Inc.

 

Ladies and Gentlemen:

 

I hereby exercise my
Stock Option to purchase [#] shares (the “Shares”) of the common stock, $.0001 par value, of Hydrofarm Holdings Group,
Inc. (the “Company”), at the exercise price of $[_____] per share, pursuant to and subject to the terms of that certain
Stock Option Agreement between the undersigned and the Company dated [Date].

 

I am aware that the
Shares have not been registered under the Securities Act of 1933, as amended (the “1933 Act”), or any state securities
laws. I understand that the reliance by the Company on exemptions under the 1933 Act is predicated in part upon the truth and accuracy
of the statements by me in this Notice of Exercise.

 

I hereby represent
and warrant that (1) I have been furnished with all information which I deem necessary to evaluate the merits and risks of the
purchase of the Shares; (2) I have had the opportunity to ask questions concerning the Shares and the Company and all questions
posed have been answered to my satisfaction; (3) I have been given the opportunity to obtain any additional information I deem
necessary to verify the accuracy of any information obtained concerning the Shares and the Company; and (4) I have such knowledge
and experience in financial and business matters that I am able to evaluate the merits and risks of purchasing the Shares and to
make an informed investment decision relating thereto.

 

I hereby represent
and warrant that I am purchasing the Shares for my own personal account for investment and not with a view to the sale or distribution
of all or any part of the Shares.

 

I understand that because
the Shares have not been registered under the 1933 Act, I must continue to bear the economic risk of the investment for an indefinite
time and the Shares cannot be sold unless the Shares are subsequently registered under applicable federal and state securities
laws or an exemption from such registration requirements is available.

 

I agree that I will
in no event sell or distribute or otherwise dispose of all or any part of the Shares unless (1) there is an effective registration
statement under the 1933 Act and applicable state securities laws covering any such transaction involving the Shares or (2) the
Company receives an opinion of my legal counsel (concurred in by legal counsel for the Company) stating that such transaction is
exempt from registration or the Company otherwise satisfies itself that such transaction is exempt from registration.

 

    Exhibit A-1 

     

    

 

I consent to the placing
of a legend on my certificate for the Shares stating that the Shares have not been registered and setting forth the restrictions
on transfer contemplated hereby and to the placing of a stop transfer order on the books of the Company and with any transfer agents
against the Shares until the Shares may be legally resold or distributed without restriction.

 

I understand that at
the present time Rule 144 of the Securities and Exchange Commission (the “SEC”) may not be relied on for the resale
or distribution of the Shares by me. I understand that the Company has no obligation to me to register the sale of the Shares with
the SEC and has not represented to me that it will register the sale of the Shares.

 

I understand the terms
and restrictions on the right to dispose of the Shares set forth in the 2019 Employee, Director and Consultant Equity Incentive
Plan and the Stock Option Agreement, both of which I have carefully reviewed. I consent to the placing of a legend on my certificate
for the Shares referring to such restriction and the placing of stop transfer orders until the Shares may be transferred in accordance
with the terms of such restrictions.

 

[I
understand and agree that the Shares are subject to the NAME OF Stockholders’ Agreement dated _______ between the Company
and its stockholders (the “Stockholders’ Agreement”), and if I am not already a party to the Stockholders’
Agreement [and if the Company so requests] I agree to become a party to such agreement by execution of the counterpart signature
page enclosed herewith. I acknowledge that I have read and understand the Stockholders’ Agreement which sets forth certain
restrictions and limitations on the Shares, including the ability to transfer or sell them in the future.][I
further acknowledge and agree that to the extent the terms of Section 12 of the Option Agreement conflict with the Stockholders’
Agreement, the terms contained in the Stockholders’ Agreement shall govern.]6

 

I have considered the
Federal, state and local income tax implications of the exercise of my Option and the purchase and subsequent sale of the Shares.

 

I am paying the option exercise price for
the Shares as follows:

 

 

 

Please issue the Shares (check one):

 

  ̈
to me; or

 

 ̈
to me and ________________, as joint tenants with right of survivorship and mail the certificate to me at the following
address:

 

 

6 Conform with Sections 12.1 and 12.3 of the Option
Agreement.

 

    Exhibit A-2 

     

    

 

	 	 
	 	 
	 	 

 

My mailing address for shareholder communications,
if different from the address listed above is:

 

	 	 
	 	 
	 	 

 

	 	Very
    truly yours,
	 	 
	 	 
	 	Participant
    (signature)
	 	 
	 	 
	 	Print
    Name
	 	 
	 	 
	 	Date
	 	 
	 	 
	 	Social
    Security Number

 

    Exhibit A-3 

     

    

 

Exhibit B

 

 

NOTICE OF EXERCISE OF STOCK OPTION

 

[Form for Shares Registered in
the United States]

 

To:       Hydrofarm Holdings Group, Inc.

 

IMPORTANT
NOTICE: This form of Notice of Exercise may only be used at such time as the Company has filed a Registration Statement
with the Securities and Exchange Commission under which the issuance of the Shares for which this exercise is being made is registered
and such Registration Statement remains effective.

 

Ladies and Gentlemen:

 

I hereby exercise my
Stock Option to purchase _________ shares (the “Shares”) of the common stock, $.0001 par value, of Hydrofarm Holdings
Group, Inc. (the “Company”), at the exercise price of $________ per share, pursuant to and subject to the terms of
that Stock Option Grant Notice dated _______________, 201_.

 

I understand the nature
of the investment I am making and the financial risks thereof. I am aware that it is my responsibility to have consulted with competent
tax and legal advisors about the relevant national, state and local income tax and securities laws affecting the exercise of the
Option and the purchase and subsequent sale of the Shares.

 

I am paying the option
exercise price for the Shares as follows:

 

 

 

Please issue the Shares (check one):

 

 ̈
to me; or

 

 ̈
to me and ____________________________, as joint tenants with right of survivorship, at the following address:

 

	 	 
	 	 
	 	 

 

    Exhibit B-1 

     

    

 

My mailing address
for shareholder communications, if different from the address listed above, is:

 

	 	 
	 	 
	 	 

 

	 	Very
    truly yours,
	 	 
	 	 
	 	Participant
    (signature)
	 	 
	 	 
	 	Print
    Name
	 	 
	 	 
	 	Date
	 	 
	 	 
	 	Social
    Security Number

 

    Exhibit B-2Exhibit 10.40

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (“Agreement”) is made as of                          ,
20   , by and between Hydrofarm Holdings Group, Inc., a Delaware corporation (the “Company”),
and                              (“Indemnitee”).

 

RECITALS:

 

WHEREAS,
directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive
and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against
the Company or business enterprise itself;

 

WHEREAS,
highly competent persons have become more reluctant to serve as directors or in other capacities unless they are provided with
adequate protection through insurance and adequate indemnification against inordinate risks of claims and actions against them
arising out of their service to and activities on behalf of the corporation;

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that the increased difficulty in attracting
and retaining such persons is detrimental to the best interests of the Company and that the Company should act to assure such persons
that there will be increased certainty of such protection in the future;

 

WHEREAS,
(i) the certificate of incorporation of the Company (the “Certificate of Incorporation”) authorizes and the
bylaws of the Company (the “Bylaws”) require indemnification of the directors and officers of the Company, (ii)
Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”)
and (iii) the indemnification provisions set forth in the Certificate of Incorporation, the Bylaws and the DGCL are not exclusive
and contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with
respect to indemnification;

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and the Bylaws and any resolutions adopted
pursuant thereto, and shall not be deemed a substitute therefore, nor to diminish or abrogate any rights of Indemnitee thereunder,
and

 

WHEREAS,
(i) Indemnitee does not regard the protections available under the Certificate of Incorporation, the Bylaws and insurance as adequate
in the present circumstances, (ii) Indemnitee may not be willing to serve or continue to serve as [a director] [and] [an officer]
without adequate protections, (iii) the Company desires Indemnitee to serve in such [capacity] [or] [capacities], and
(iv) the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of Expenses.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration
of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

     

     

    

 

Section 1. Definitions. (a) As used in this Agreement:

 

“Affiliate”
of any specified Person shall mean any other Person controlling, controlled by or under common control with such specified Person.

 

“Change
in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Exchange Act, whether or not the Company is then subject to such reporting requirement; provided,
however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the date hereof (i) any
 “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
15% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally
in the election of directors without the prior approval of at least two-thirds of the members of the Board in office immediately
prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale
of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board then in
office, as a consequence of which members of the Board in office immediately prior to such transaction or event constitute less
than a majority of the Board thereafter; or (iii) at any time, a majority of the members of the Board are not individuals (A)
who were directors as of the date hereof or (B) whose election by the Board or nomination for election by the Company’s
stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as
of the date hereof or whose election or nomination for election was previously so approved.

 

“Corporate
Status” describes the status of a person who is or was (i) a director, officer, employee or agent of the Company or (ii)
a director, officer, manager, member, partner, trustee, fiduciary, employee or agent of any other Enterprise which such person
is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances in
which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the
Company if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee
or agent of any other Enterprise (i) of which a majority of the voting power or equity interest is owned directly or indirectly
by the Company or (ii) the management of which is controlled directly or indirectly by the Company.

 

“Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
and/or advance of Expenses is sought by Indemnitee.

 

“Enterprise”
shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit
plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, manager, member,
partner, trustee, fiduciary, employee or agent.

 

    2

     

    

 

“Expenses”
shall mean all reasonable costs, expenses, fees and charges (including without limitation) attorneys’ fees, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of
the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include, without limitation,
(i) expenses incurred in connection with any appeal resulting from, incurred by Indemnitee in connection with, arising out of respect
of or relating to, any Proceeding, including without limitation, the premium, security for, and other costs relating to any cost
bond, supersedes bond, or other appeal bond or its equivalent, (ii) for purposes of Section 12(e) only, expenses incurred by Indemnitee
in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation
or otherwise, (iii) any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt
of any payments under this Agreement, and (iv) any interest, assessments or other charges in respect of the foregoing.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

“Indemnity
Obligations” shall mean all obligations of the Company to Indemnitee under this Agreement, including the Company’s
obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement.

 

“Independent
Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither
presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material
to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees
under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to
a claim for indemnification or advance of Expenses hereunder; provided, however, that the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

“Liabilities”
means all claims, liabilities, damages, losses, judgments, orders, fines, penalties and other amounts payable that are actually
incurred by Indemnitee in connection with, arising out of, or in respect of or relating to any Proceeding, including, without limitation,
amounts paid in settlement in any Proceeding and all costs and expenses in complying with any judgment, order or decree issued
or entered in connection with any Proceeding or any settlement agreement, stipulation or consent decree entered into or issued
in settlement of any Proceeding. For the purpose hereof, references to “fines” shall include any excise tax assessed
with respect to any employee benefit plan.

 

“Person”
shall mean any individual, corporation, partnership, limited partnership, limited liability company, trust, governmental agency
or body or any other legal entity.

 

    3

     

    

 

“Proceeding”
shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute resolution mechanism,
formal or informal hearing, inquiry or investigation, litigation, inquiry, administrative hearing, demand or discovery
request or any other actual, threatened or completed judicial, administrative or arbitration proceeding (including, without
limitation, any such proceeding under the Securities Act of 1933, as amended, or the Exchange Act or any other federal law,
state law, statute or regulation), including any appeal therefrom, whether brought in the right of the Company or otherwise,
and whether of a civil, criminal, administrative or investigative nature, in each case, in which Indemnitee was, is or will
be, or is threatened to be, involved as a party, witness or otherwise by reason of the Indemnitee’s Corporate Status,
by reason of any actual or alleged action taken or omission by Indemnitee or of any action or omission on Indemnitee’s
part while acting in Indemnitee’s Corporate Status, in each case whether or not Indemnitee still has such Corporate
Status at the time any Lability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses
can be provided under this Agreement. If Indemnitee reasonably believes that a given situation may lead to or culminate in
the institution of a Proceeding, such situation shall also be considered a Proceeding.

 

“Sponsor
Entities” means (i) 2118769 Ontario Inc., (ii) Fruzer Inc., (iii) 2208742 Ontario Inc., (iv) 2208744 Ontario Inc., (v)
HF I Investments LLC, (vi) HF II Investments LLC, (vii) HF III Investments LLC, (viii) Hawthorn Limited Partnership, (ix) Hydrofarm
Co-Investment Fund, LP, (x) Arch Street Holdings I, LLC and (xi) Payne Capital Corp. (collectively, the “Sponsor Group”)
and (ii) any Affiliate of the Sponsor Group, provided, however, that neither the Company nor any of its subsidiaries
shall be considered Sponsor Entities hereunder.

 

Section
2. General. The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b)
otherwise to the maximum extent permitted by Delaware law in effect on the date hereof and as amended from time to time; provided,
however, that no change in Delaware law shall have the effect of reducing the benefits available to Indemnitee hereunder
based on Delaware law as in effect on the date hereof. The rights of Indemnitee provided in this Section 2 shall include, without
limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by
the DGCL, including, without limitation, Sections 102 and 145 of the DGCL.

 

Section
3. Standard for Indemnification. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to
be, made a party to any Proceeding, Indemnitee shall be indemnified against all Expenses and Liabilities incurred by Indemnitee
or on Indemnitee’s behalf in connection with any such Proceeding unless it is established that (a) the act or omission of
Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of
active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services
or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

Section
4. Certain Limits on Indemnification. Notwithstanding any other provision of this Agreement (other than Section 5), Indemnitee
shall not be entitled to:

 

(a)        indemnification
hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged, in a final adjudication of the
Proceeding not subject to further appeal, to be liable to the Company;

 

(b)       indemnification
hereunder if Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable on
the basis that personal benefit in money, property or services was improperly received in any Proceeding charging improper personal
benefit to Indemnitee, whether or not involving action in Indemnitee’s Corporate Status; or

 

    4

     

    

 

(c)        indemnification
or advance of Expenses hereunder if the Proceeding was brought by Indemnitee unless: (i) the Proceeding was brought to enforce
indemnification under this Agreement, but then only to the extent in accordance with and as authorized by Section 7 and Section
12 of this Agreement, or (ii) the Certificate of Incorporation or the Bylaws, a resolution of the stockholders entitled to vote
generally in the election of directors or of the Board or an agreement approved by the Board to which the Company is a party expressly
provide otherwise.

 

Section
5. Court-Ordered Indemnification. Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction,
upon application of Indemnitee and such notice as the court shall require, may order indemnification in the following circumstances:

 

(a)        if
it determines Indemnitee is entitled to reimbursement under the DGCL, the court shall order indemnification, in which case Indemnitee
shall be entitled to recover the Expenses of securing such reimbursement; or

 

(b)        if
it determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether
or not Indemnitee (i) has met the standards of conduct set forth in the DGCL or (ii) has been adjudged liable for receipt of an
improper personal benefit under the DGCL, the court may order such indemnification as the court shall deem proper without regard
to any limitation on such court-ordered indemnification contemplated by the DGCL.

 

Section
6. Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of
this Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of
Indemnitee’s Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding and is
successful, on the merits or otherwise, in the defense of such Proceeding, the Company shall indemnify Indemnitee for all
Expenses and Liabilities incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not
wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 6 for all Liabilities
and Expenses incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or matter,
allocated on a reasonable and proportionate basis. For purposes of this Section 6 and, without limitation, Indemnitee will be
deemed to have been “successful on the merits” in circumstances including, but not limited to, the termination of
any Proceeding or of any claim, issue or matter therein, by the winning of a dismissal (with or without prejudice), motion
for summary Judgment, settlement (with or without court approval), or upon a plea of nolo contendere or its equivalent. For
the avoidance of doubt, this Section 6 shall in no way be deemed to limit the circumstances in which Indemnitee may be
indemnified or advanced Expenses pursuant to this Agreement, the DGCL, the Certificate of Incorporation, the Bylaws or
otherwise.

 

Section
7. Advances of Expenses. Notwithstanding any provision of this Agreement to the contrary, the Company shall advance the
Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made within ten (10) days after
the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final
disposition of any Proceeding. Advances shall be unsecured and interest free.

 

    5

     

    

 

Advances shall be made without
requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement. Advances shall include any and all Expenses incurred pursuing an action to enforce this right of advancement,
including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. Such statement
or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by
a written affirmation by Indemnitee and a written undertaking by or on behalf of Indemnitee, in substantially the form attached
hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof.
To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses
shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 7 shall be an unlimited general
obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay
such advanced Expenses and without any requirement to post security therefor.

 

Section
8. Indemnification and Advance of Expenses as a Witness or Other Participant. Notwithstanding any other provision of this
Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is or may be, by reason of Indemnitee’s
Corporate Status, made a witness or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, Indemnitee
shall be advanced and indemnified against all Expenses and Liabilities suffered or incurred by Indemnitee or on Indemnitee’s
behalf in connection therewith within ten (10) days after the receipt by the Company of a statement or statements requesting any
such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement
or statements shall reasonably evidence the Expenses incurred by Indemnitee. In connection with any such advance of Expenses, the
Company may require Indemnitee to provide an undertaking and affirmation substantially in the form attached hereto as Exhibit
A or in such form as may be required under applicable law as in effect at the time of execution thereof.

 

Section 9. Procedure for Notification and Defense
of Claim.

 

(a)        Indemnitee
shall notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement
of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. Indemnitee shall submit to the Company a written request, including therein or
therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such action, suit or Proceeding.
Any delay or failure by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may
have to Indemnitee hereunder or otherwise under this Agreement, and any delay or failure in so notifying the Company shall not
constitute a waiver by Indemnitee of any rights under this Agreement unless the Company’s ability to defend in such Proceeding
or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the
Company is thereby actually so prejudiced. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing
that Indemnitee has requested indemnification.

 

    6

     

    

 

(b)       
In the event Indemnitee is entitled to indemnification and/or advancement of Expenses with respect to any Proceeding, Indemnitee
may, at Indemnitee’s option, (i) retain counsel selected by Indemnitee and approved by the Company (which approval shall
not to be unreasonably withheld, conditioned or delayed) to defend Indemnitee in such Proceeding, at the sole expense of the Company,
or (ii) have the Company assume the defense of Indemnitee in such Proceeding, in which case the Company shall assume the defense
of such Proceeding with counsel selected by the Company and approved by Indemnitee (which approval shall not be unreasonably withheld,
conditioned or delayed) within ten (10) days of the Company’s receipt of written notice of Indemnitee’s election to
cause the Company to do so. Indemnitee agrees that any such separate counsel retained by Indemnitee will be a member of any approved
list of panel counsel under the Company’s applicable directors and officers liability insurance policy, should the applicable
policy provide for a panel of approved counsel and should such approved panel list comprise law firms with well-established reputations
in the type of litigation at issue (for clarity, the fact of a firm’s being part of a panel shall not be evidence of a firm’s
having a well-established national reputation for the type of litigation at issue). If the Company is required to assume
the defense of any such Proceeding, it shall engage legal counsel for such defense, and the Company shall be solely responsible
for all fees and expenses of such legal counsel and otherwise of such defense. Such legal counsel may represent both Indemnitee
and the Company (and/or any other party or parties entitled to be indemnified by the Company with respect to such matter) unless,
in the reasonable opinion of legal counsel to Indemnitee, there is a conflict of interest between Indemnitee and the Company (or
any other such party or parties) or there are legal defenses available to Indemnitee that are not available to the Company (or
any such other party or parties). Notwithstanding either party’s assumption of responsibility for defense of a Proceeding,
each party shall have the right to engage separate counsel at its own expense. The party having responsibility for defense of
a Proceeding shall provide the other party and its counsel with all copies of pleadings and material correspondence relating to
the proceeding. Indemnitee and the Company shall reasonably cooperate in the defense of any Proceeding with respect to which indemnification
is sought hereunder, regardless of whether the Company or Indemnitee assumes the defense thereof. Indemnitee may not settle or
compromise any Proceeding without the prior written consent of the Company, which consent shall not be unreasonably withheld,
conditioned or delayed. The Company may not settle or compromise any proceeding without the prior written consent of Indemnitee,
which consent shall not be unreasonably withheld, conditioned or delayed. In addition, if the Company fails to comply with any
of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this
Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be
provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the
prior approval of the Company, which approval shall not be unreasonably withheld, conditioned or delayed, at the expense of the
Company (subject to Section 12(e) of this Agreement), to represent Indemnitee in connection with any such matter.

 

    7

     

    

 

Section 10. Procedure Upon Application for Indemnification.

 

(a)       
Upon written request by Indemnitee for indemnification pursuant to Section 9(a) above, a determination, if required by
applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a
Change in Control shall have occurred, by Independent Counsel, in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee, which Independent Counsel shall be selected by the Indemnitee and approved by the Board in
accordance with the DGCL, which approval will not be unreasonably withheld; or (ii) if a Change in Control shall not have
occurred, (A) by the Board by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot
be obtained, then by a majority vote of a duly authorized committee of the Board consisting solely of one or more
Disinterested Directors, (B) if Independent Counsel has been selected by the Board in accordance with the DGCL and approved
by the Indemnitee, which approval shall not be unreasonably withheld, conditioned or delayed, by Independent Counsel, in a
written opinion to the Board, a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the
members of the Board, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall
cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination in the discretion of the Board or Independent Counsel if retained pursuant to
clause (ii)(B) of this Section 10(a). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or
entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

 

(b)        The
Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

 

(c)        In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a) hereof,
(i) the Independent Counsel shall be selected by the Company within ten (10) days of the Submission Date (the cost of each such
counsel to be paid by the Company), (ii) shall give written notice to Indemnitee advising it of the identity of the Independent
Counsel so selected and (iii) Indemnitee may, within ten (10) days after such written notice of selection shall have been given,
deliver to the Company Indemnitee’s written objection to such selection. Absent a timely objection, the person so selected
shall act as Independent Counsel. If a written objection is so made by Indemnitee, the Independent Counsel so selected may not
serve as Independent Counsel unless and until such objection is withdrawn. If no Independent Counsel shall have been selected and
not objected to before the later of (i) thirty (30) days after the later of submission by Indemnitee of a written request for indemnification
pursuant to Section 9(a) hereof (the “Submission Date”) and (ii) ten (10) days after the final disposition of
the Proceeding, each of the Company and Indemnitee shall select a law firm or member of a law firm meeting the qualifications to
serve as Independent Counsel, and such law firms or members of law firms shall select the Independent Counsel. Upon the due commencement
of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, Independent Counsel shall be discharged
and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

(d)         Determination of Good Faith/Safe
Harbor. For purposes of any determination of good faith, Indemnitee shall be presumed to have acted in good faith if Indemnitee's
action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied
to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise
or the Board or counsel selected by any committee of the Board or on information or records given or reports made to the Enterprise
by an independent certified public accountant or by an appraiser, investment banker, compensation consultant, or other expert selected
with reasonable care by the Company or the Board or any committee of the Board.  The provisions of this Section 10(d)
shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have
met the applicable standard of conduct.  Whether or not the foregoing provisions of this Section are satisfied, it shall in
any event be presumed that Director has at all times acted in good faith and in a manner he or she reasonably believed to be in
or not opposed to the best interests of the Company.

 

    8

     

    

 

Section 11. Presumptions and Effect of Certain Proceedings.

 

(a)       
In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making
such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this
Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that
presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.
Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination
prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances
because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its
directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)
        Subject to Section 12(e), if the person, persons or entity empowered or selected under
Section 10 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination
within sixty (60) days after receipt by the Company of the request therefore, the requisite determination of entitlement to indemnification
shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification,
absent a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may
be extended for a reasonable time, not to exceed an additional sixty (60) days, if (i) the determination is to be made by Independent
Counsel and Indemnitee objects to the Company’s selection of Independent Counsel and (ii) the Independent Counsel ultimately
selected requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto.

 

(c)        The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, shall not (except as otherwise
expressly provided in this Agreement) adversely affect the right of Indemnitee to indemnification or create a presumption that
Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

 

(d)        The
knowledge and/or actions, or failure to act, of any other director, officer, manager, member, partner, trustee, fiduciary agent
or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under
this Agreement.

 

    9

     

    

 

Section 12. Remedies of Indemnitee.

  

(a)        Subject
to Section 12(e), in the event that (i) a determination is made pursuant to Section 10(a) of this Agreement that Indemnitee is
not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Sections 7 or
8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(a) of
this Agreement within sixty (60) days or one-hundred and twenty (120) days, as applicable, after receipt by the Company of the
request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 6 or 8 of this Agreement within ten
(10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to any other section
of this Agreement, the Certificate of Incorporation or the Bylaws is not made within ten (10) days after a determination has been
made that Indemnitee is entitled to indemnification, or (vi) that the Company or any other person takes or threatens to take any
action to declare this Agreement void or unenforceable, or institutes any litigation or other action orProceeding designed to deny,
or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall
be entitled to an adjudication by a court of Indemnitee’s entitlement to such indemnification and/or advancement of Expenses.
Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator
pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee’s
right to seek any such adjudication or award in arbitration.

 

(b)        In
the event that a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is not entitled
to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects
as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to
indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving
Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

(c)        If
Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse
the Company for any advances pursuant to Sections 7 or 8 of this Agreement until a final determination is made with respect to
Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). If a determination
shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall
be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a prohibition
of such indemnification under applicable law or a misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification that
was not disclosed in connection with the determination.

 

(d)        The
Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable
and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

 

(e)        In
the event that Indemnitee, pursuant to this Section 12, seeks a judicial adjudication of or an award in arbitration to enforce
Indemnitee’s rights under, or to recover damages for breach of, this Agreement, if Indemnitee is successful, Indemnitee shall
be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably
incurred by Indemnitee in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or
arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses
incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.

 

    10

     

    

 

(f)        Interest
shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under Delaware law for amounts
which the Company pays or is obligated to pay for the period commencing with the date on which the Company was requested to advance
expenses in accordance with Sections 7 or 8 of this Agreement or to make the determination of entitlement to indemnification under
Section 10(a) above and ending on the date such payment is made to Indemnitee by the Company.

 

Section
13. Non-exclusivity; Survival of Rights; Insurance; Privacy of Indemnification; Subrogation.

 

(a)        The
rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of
any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws,
any agreement, a vote of stockholders or a resolution of the Board, or otherwise. No amendment, alteration or repeal of the Certificate
of Incorporation or the Bylaws, this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under
this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such
amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits
greater indemnification or advancement of Expenses than would be afforded currently under the Certificate of Incorporation, the
Bylaws and/or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy,
and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in not prevent the concurrent assertion or employment of any other right or remedy.

 

(b)       
The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or
reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under
any corporate insurance policy, contract, agreement or otherwise; provided, however, that payment made to Indemnitee
pursuant to an insurance policy purchased and maintained by Indemnitee at his or her own expense of any amounts otherwise indemnifiable
or obligated to be made pursuant to this Agreement shall not reduce the Company’s obligations to Indemnitee pursuant to this
Agreement.

 

(c)        The
Company will use its reasonable best efforts to acquire and maintain directors and officers liability insurance, on terms and conditions
deemed appropriate by the Board, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason
of Indemnitee’s Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company
to Indemnitee for any claims made against Indemnitee by reason of Indemnitee’s Corporate Status. Indemnitee shall be covered
by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director,
officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the
terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement
of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policies. In the event of a Change in Control, the Company shall maintain
in force any and all directors and officers liability insurance policies that were maintained by the Company immediately prior
to the Change in Control for a period of six years with the insurance carrier
or carriers and through the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers
will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount
shall be obtained and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope
and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of the existing
insurance carrier; provided, further, however, in no event shall the Company be required to expend in the aggregate in excess of
300% of the annual premium or premiums paid by the Company for directors and officers liability insurance in effect on the date
of the Change in Control. In the event that 300% of the annual premium paid by the Company for such existing directors and officers
liability insurance is insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage
as may be obtained with such amount.

 

    11

     

    

 

(d)        Without
in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee
which would otherwise be indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any
excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with
a Proceeding over the coverage of any insurance referred to in Section 13(a). The purchase, establishment and maintenance of any
such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement
except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in
any way limit or affect the rights or obligations of the Company under any such insurance policies.

 

(e)        The
Indemnitee shall reasonably cooperate with the Company or any insurance carrier of the Company with respect to any Proceeding.

 

(f)        The
indemnification provided for in this Agreement will remain in full force and effect regardless of any investigation made by or
on behalf of Indemnitee.

 

Section 14. Duration of Agreement; Not Employment
Contract.

 

(a)       
This Agreement shall continue until and terminate on the date that Indemnitee is no longer subject to any actual or possible
Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this
Agreement). This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of
Indemnitee and Indemnitee’s heirs, executors and administrators. The Company shall require and cause any successor
(whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part,
of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement to the fullest extent permitted by law. This Agreement shall not be
deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee
specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise),
if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be
otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any
Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director
of the Company, by the Certificate of Incorporation, the Bylaws and the DGCL.

 

    12

     

    

  

(b)        The
Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable
and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto
agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity
of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall
not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled
to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent
injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that,
in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such
requirement of such a bond or undertaking.

 

Section 15. Notice
by Company. If the Indemnitee is the subject of, or is, to the knowledge of the Company, implicated in any way during an investigation,
whether formal or informal, that is related to Indemnitee’s Corporate Status and that reasonably could lead to a Proceeding
for which indemnification can be provided under this Agreement, the Company shall notify the Indemnitee of such investigation and
shall share (to the extent legally permissible) with Indemnitee any information it has provided to any third parties concerning
the investigation (“Shared Information”). By executing this Agreement, Indemnitee agrees that such Shared Information
is material non-public information that Indemnitee is obligated to hold in confidence and may not disclose publicly; provided,
however, that Indemnitee may use the Shared Information and disclose such Shared Information to Indemnitee’s legal counsel
and third parties, in each case solely in connection with defending Indemnitee from legal liability.

 

Section
16. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable
for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including
without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall
remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent
necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest
extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested thereby.

 

Section 17. Enforcement.

 

(a)        The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby
in order to induce Indemnitee to serve as [a director] [and] [an officer] of the Company, and the Company acknowledges that
Indemnitee is relying upon this Agreement in serving as [a director] [and] [an officer] of the Company.

 

(b)        This
Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws
and applicable law, and shall not be deemed a substitute therefore, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

Section 18. Modification and Waiver. No supplement,
modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor
shall any waiver constitute a continuing waiver.

 

    13

     

    

 

Section
19. Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall
be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication
shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the
date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or
other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such
transmission has been received:

 

(a)        If
to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide
to the Company.

 

(b)        If to
the Company to

 

Hydrofarm Holdings Group, Inc.

2249 S. McDowell Ext. 

Petaluma, CA 94954

Attn: Chief Executive Officer

 

or
to any other address as may have been furnished to Indemnitee by the Company.

 

Section
20. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed
by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.
The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in
connection with this Agreement shall be brought in the Court of Chancery of the State of Delaware (the “Delaware Court”),
and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection
with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and
(iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum.

 

Section
21. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed
to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section
22. Third-Party Beneficiaries. The Sponsor Entities are intended third-party beneficiaries of this Agreement.

 

Section
23. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

    14

     

    

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be signed as of the day and year first above written.

  

	HYDORFARM HOLDINGS GROUP, INC.	 	INDEMNITEE
	 	 	 	 	 
	By:	 	 	 	 
	 	                                                                   	 	 	 
	Name:	 	 	Name:	                                                                   
	 	 	 	 	 
	Office:	 	 	Address:	 

  

     

     

    

 

EXHIBIT A

 

FORM
OF AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

 

The Board of Directors of Hydrofarm Holdings Group, Inc.

 

Re:
Undertaking to Repay Expenses Advanced

 

[Ladies
and] Gentlemen:

 

This
Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement dated the         
day of                         ,
20   , by and between Hydrofarm Holdings Group, a Delaware corporation (the “Company”), and the undersigned
Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection
with [Description of Proceeding] (the “Proceeding”).

 

Terms
used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

 

I am subject
to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby
affirm my good faith belief that at all times, insofar as I was involved as [a director] [and] [an officer] of the Company,
in any of the facts or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty,
(2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding,
had no reasonable cause to believe that any act or omission by me was unlawful.

 

In consideration
of the advance by the Company for Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”),
I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to
the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty
or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding,
I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced
Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

 

IN
WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this                   day
of                            
, 20   .

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