Document:

Exhibit 10.1

 

Medicine Man Technologies, Inc.

2017 Equity Incentive Plan

 

 

1. Purpose

 

Medicine Man Technologies, Inc.’s
2017 Equity Incentive Plan is intended to promote the best interests of Medicine Man Technologies, Inc. and its stockholders by
(i) assisting the Corporation and its Affiliates in the recruitment and retention of persons with ability and initiative,
(ii) providing an incentive to such persons to contribute to the growth and success of the Corporation’s businesses
by affording such persons equity participation in the Corporation and (iii) associating the interests of such persons with
those of the Corporation and its Affiliates and stockholders.

 

2. Definitions

 

As used in this Plan the following definitions
shall apply:

 

A.          “Affiliate”
means (i) any Subsidiary, (ii) any Parent, (iii) any corporation, or trade or business (including, without
limitation, a partnership, limited liability company or other entity) which is directly or indirectly controlled fifty
percent (50%) or more (whether by ownership of stock, assets or an equivalent ownership interest or voting interest) by the
Corporation or one of its Affiliates, and (iv) any other entity in which the Corporation or any of its Affiliates has a
material equity interest and which is designated as an “Affiliate” by resolution of the Committee.

 

B.          
“Award” means any Option or Stock Award granted hereunder.

 

C.          
“Board” means the Board of Directors of the Corporation.

 

D.          
“Code” means the Internal Revenue Code of 1986, and any amendments thereto.

 

E.          
“Committee” means the Board or any Committee of the Board to which the Board has delegated any responsibility
for the implementation, interpretation or administration of this Plan.

 

F.           “Common Stock” means the common stock, $0.001 par value, of the Corporation.

 

G.          
“Consultant” means (i) any person performing consulting or advisory services for the Corporation or any
Affiliate, or (ii) a director of an Affiliate.

 

H.         
“Corporation” means Medicine Man Technologies, Inc., a Nevada corporation.

 

I.           
“Corporation Law” means the Nevada Revised Statutes, as the same shall be amended from time to time.

 

J.            “Date
of Grant” means the date that the Committee approves an Option grant; provided, that all terms of such grant, including
the amount of shares subject to the grant, exercise price and vesting are defined at such time.

 

K.          “Deferral
Period” means the period of time during which Deferred Shares are subject to deferral limitations under Section 7.D of
this Plan.

 

L.          
“Deferred Shares” means an award pursuant to Section 7.D of this Plan of the right to receive shares of Common
Stock at the end of a specified Deferral Period.

 

M.        
“Director” means a member of the Board.

 

N.          “Eligible
Person” means an employee of the Corporation or an Affiliate (including a corporation that becomes an Affiliate after
the adoption of this Plan), a Director or a Consultant to the Corporation or an Affiliate (including a corporation that becomes
an Affiliate after the adoption of this Plan).

 

 

 

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O.          
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

P.           “Fair
Market Value” means, on any given date, the current fair market value of the shares of Common Stock as determined as
follows:

 

	 	(i)	If the Common Stock is traded on a national securities exchange, the closing price for the day of determination as quoted on such market or exchange, including the NASDAQ Global Market or NASDAQ Capital Market, which is the primary market or exchange for trading of the Common Stock or if no trading occurs on such date, the last day on which trading occurred, or such other appropriate date as determined by the Committee in its discretion, as reported in The Wall Street Journal or such other source as the Committee deems reliable;

 

	 	(ii)	If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high and the low asked prices for the Common Stock for the day of determination; or

 

	 	(iii)	In the absence of an established market for the Common Stock, Fair Market Value shall be determined by the Committee in good faith.

 

Q.          
“Family Member” means a parent, child, spouse or sibling.

 

R.          
“Incentive Stock Option” means an Option (or portion thereof) intended to qualify for special tax treatment
under Section 422 of the Code.

 

S.           “Nonqualified
Stock Option” means an Option (or portion thereof) which is not intended or does not for any reason qualify as an Incentive
Stock Option.

 

T.          
“Option” means any option to purchase shares of Common Stock granted under this Plan.

 

U.          “Parent”
means any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation if each of
the corporations (other than the Corporation) owns stock possessing at least fifty percent (50%) of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

 

V.         
“Participant” means an Eligible Person who (i) is selected by the Committee or an authorized officer of
the Corporation to receive an Award and (ii) is party to an agreement setting forth the terms of the Award, as
appropriate.

 

W.        
“Performance Agreement” means an agreement described in Section 8 of this Plan.

 

X.          “Performance
Objectives” means the performance objectives established by the Committee pursuant to this Plan for Participants who
have received grants of Awards. Performance Objectives may be described in terms of Corporation-wide objectives or objectives that
are related to the performance of the individual Participant or the Affiliate, division, department or function within the Corporation
or Affiliate in which the Participant is employed or has responsibility. Any Performance Objectives applicable to Awards to the
extent that such an Award is intended to qualify as “Performance Based Compensation” under Section 162(m) of the Code
shall be limited to specified levels of or increases in the Corporation’s or a business unit’s return on equity, earnings
per share, total earnings, earnings growth, return on capital, return on assets, economic value added, earnings before interest
and taxes, earnings before interest, taxes, depreciation and amortization, sales growth, gross margin return on investment, increase
in the Fair Market Price of the shares, net operating profit, cash flow (including, but not limited to, operating cash flow and
free cash flow), cash flow return on investments (which equals net cash flow divided by total capital), internal rate of return,
increase in net present value or expense targets. The Awards intended to qualify as “Performance Based Compensation”
under Section 162(m) of the Code shall be pre-established in accordance with applicable regulations under Section 162(m) of the
Code and the determination of attainment of such goals shall be made by the Committee. If the Committee determines that a change
in the business, operations, corporate structure or capital structure of the Corporation (including an event described in Section
9), or the manner in which it conducts its business, or other events or circumstances render the Performance Objectives unsuitable,
the Committee may modify such Performance Objectives or the related minimum acceptable level of achievement, in whole or in part,
as the Committee deems appropriate and equitable; provided, however, that no such modification shall be made to an Award intended
to qualify as “Performance Based Compensation” under Section 162(m) of the Code unless the Committee determines that
such modification will not result in loss of such qualification or the Committee determines that loss of such qualification is
in the best interests of the Corporation.

 

 

 

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Y.          
“Performance Period” means a period of time established under Section 8 of this Plan within which the Performance
Objectives relating to a Stock Award are to be achieved.

 

Z.         
“Performance Share” means an award pursuant to Section 8 of this Plan of the right to receive shares of Common
Stock upon the achievement of specified Performance Objectives.

 

AA.       “Plan”
means this Medicine Man Technologies, Inc. 2017 Equity Incentive Plan.

 

BB.       [reserved].

 

CC.        “Restricted
Stock Award” means an award of Common Stock under Section 7.B.

 

DD.      “Securities
Act” means the Securities Act of 1933, as amended.

 

EE.      
“Stock Award” means a Stock Bonus Award, Restricted Stock Award, Stock Appreciation Right, Deferred Shares,
or Performance Shares.

 

FF.       
“Stock Bonus Award” means an award of Common Stock under Section 7.A.

 

GG.        “Stock
Award Agreement” means a written agreement between the Corporation and a Participant setting forth the specific terms
and conditions of a Stock Award granted to the Participant under Section 7. Each Stock Award Agreement shall be subject to the
terms and conditions of this Plan and shall include such terms and conditions as the Committee shall authorize.

 

HH.       “Stock
Option Agreement” means an agreement (written or electronic) between the Corporation and a Participant setting forth
the specific terms and conditions of an Option granted to the Participant. Each Stock Option Agreement shall be subject to the
terms and conditions of this Plan and shall include such terms and conditions as the Committee shall authorize.

 

II.         
“Subsidiary” means any corporation (other than the Corporation) in an unbroken chain of corporations beginning
with the Corporation if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing
at least fifty percent (50%) of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

 

JJ.         
“Ten Percent Owner” means any Eligible Person owning at the time an Option is granted more than ten percent
(10%) of the total combined voting power of all classes of stock of the Corporation or of a Parent or Subsidiary. An individual
shall, in accordance with Section 424(d) of the Code, be considered to own any voting stock owned (directly or indirectly) by or
for such Eligible Person’s brothers, sisters, spouse, ancestors and lineal descendants and any voting stock owned (directly
or indirectly) by or for a corporation, partnership, estate or trust shall be considered as being owned proportionately by or for
its stockholders, partners, or beneficiaries.

 

3. implementation, interpretation and
Administration

 

A.            Delegation
to Board Committee. The Board shall have the sole authority to implement, interpret, and/or administer this Plan unless
the Board delegates all or any portion of its authority to implement, interpret, and/or administer this Plan to a Committee.
To the extent not prohibited by the Certificate of Incorporation or Bylaws of the Corporation, the Board may delegate all or
a portion of its authority to implement, interpret, and/or administer this Plan to a Committee of the Board appointed by the
Board and constituted in compliance with the applicable Corporation Law. The Committee shall consist solely of two (2) or
more Directors who are (i) Non-Employee Directors (within the meaning of Rule 16b-3 under the Exchange Act) for purposes
of exercising administrative authority with respect to Awards granted to Eligible Persons who are subject to Section 16
of the Exchange Act; (ii) to the extent required by the rules of the market on which the Corporation’s shares are
traded or the exchange on which the Corporation’s shares are listed, “independent” within the meaning of
such rules; and (iii) at such times as an Award under this Plan by the Corporation is subject to Section 162(m) of the
Code (to the extent relief from the limitation of Section 162(m) of the Code is sought with respect to Awards and
administration of the Awards by a committee of “outside directors” is required to receive such relief),
“outside directors” within the meaning of Section 162(m) of the Code.

 

 

 

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B.             Delegation
to Officers. The Committee may delegate to one or more officers of the Corporation the authority to grant and administer Awards
to Eligible Persons who are not Directors or executive officers of the Corporation; provided that the Committee shall have fixed
the total number of shares of Common Stock that may be subject to such Awards. No officer holding such a delegation is authorized
to grant Awards to himself or herself. In addition to the Committee, the officer or officers to whom the Committee has delegated
the authority to grant and administer Awards shall have all powers delegated to the Committee with respect to such Awards.

 

C.             Powers
of the Committee. Subject to the provisions of this Plan, and in the case of a Committee appointed by the Board, the specific
duties delegated to such Committee, the Committee (and the officers to whom the Committee has delegated such authority) shall have
the authority:

 

	 	(i)	To construe and interpret all provisions of this Plan and all Stock Option Agreements, Stock Award Agreements, Performance Agreements, or any other agreement under this Plan.

 

	 	(ii)	To determine the Fair Market Value of Common Stock in the absence of an established market for the Common Stock.

 

	 	(iii)	To select the Eligible Persons to whom Awards are granted from time to time hereunder.

 

	 	(iv)	To determine the number of shares of Common Stock covered by an Award; to determine whether an Option shall be an Incentive Stock Option or Nonqualified Stock Option; and to determine such other terms and conditions, not inconsistent with the terms of this Plan, of each such Award. Such terms and conditions include, but are not limited to, the exercise price of an Option, purchase price of Common Stock subject to a Stock Award, the time or times when Options or a Stock Award may be exercised or Common Stock issued thereunder, the vesting schedule of an Option, the right of the Corporation to repurchase Common Stock issued pursuant to the exercise of an Option or a Stock Award and other restrictions or limitations (in addition to those contained in this Plan) on the forfeitability or transferability of Options, Stock Awards or Common Stock issued upon exercise of an Option or pursuant to a Stock Award. Such terms may include conditions which shall be determined by the Committee and need not be uniform with respect to Participants.

 

	 	(v)	To accelerate the time at which any Option or Stock Award may be exercised, or the time at which a Stock Award or Common Stock issued under this Plan may become transferable or non-forfeitable.

 

	 	(vi)	To
    determine whether and under what circumstances an Option or Stock Award may be settled in cash, shares of Common Stock or
    other property under Section 6.H instead of in Common Stock.

 

	 	(vii)	To
    waive, amend, cancel, extend, renew, accept the surrender of, modify or accelerate the vesting of or lapse of restrictions on
    all or any portion of an outstanding Award. Except as otherwise provided by this Plan, Stock Option Agreement, Stock Award
    Agreement or Performance Agreement or as required to comply with applicable law, regulation or rule, no amendment,
    cancellation or modification shall, without a Participant’s consent, adversely affect any rights of the Participant;
    provided, however, that (x) an amendment or modification that may cause an Incentive Stock Option to become a Nonqualified
    Stock Option shall not be treated as adversely affecting the rights of the Participant and (y) any other amendment or
    modification of any Stock Option Agreement, Stock Award Agreement or Performance Agreement that does not, in the opinion of
    the Committee, adversely affect any rights of any Participant, shall not require such Participant’s
    consent.

 

	 	(viii)	To prescribe the form of Stock Option Agreements, Stock Award Agreements, Performance Agreements, or any other agreements under this Plan; to adopt policies and procedures for the exercise of Options or Stock Awards, including the satisfaction of withholding obligations; to adopt, amend, and rescind policies and procedures pertaining to the administration of this Plan; and to make all other determinations necessary or advisable for the administration of this Plan. Except for the due execution of the award agreement by both the Corporation and the Participant, the Award’s effectiveness will not be dependent on any signature unless specifically so provided in the award agreement.

  

The express grant in this Plan of any specific
power to the Committee shall not be construed as limiting any power or authority of the Committee; provided that the Committee
may not exercise any right or power reserved to the Board. Any decision made, or action taken, by the Committee or in connection
with the implementation, interpretation, and administration of this Plan shall be final, conclusive and binding on all persons
having an interest in this Plan.

 

 

 

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4. Eligibility

 

A.            Eligibility
for Awards. Awards, other than Incentive Stock Options, may be granted to any Eligible Person selected by the Committee. Incentive
Stock Options may be granted only to employees of the Corporation or a Parent or Subsidiary.

 

B.             Eligibility
of Consultants. A Consultant shall be an Eligible Person only if the offer or sale of the Corporation’s securities would
be eligible for registration on Form S-8 Registration Statement (or any successor form) because of the identity and nature of the
service provided by such person, unless the Corporation determines that an offer or sale of the Corporation’s securities
to such person will satisfy another exemption from the registration under the Securities Act and complies with the securities laws
of all other jurisdictions applicable to such offer or sale. Accordingly, an Award may not be granted pursuant to this Plan for
the purpose of the Corporation obtaining financing or for investor relations purposes.

 

C.             Substitution
Awards. The Committee may make Awards under this Plan by assumption, in substitution or replacement of performance shares,
phantom shares, stock awards, stock options or similar awards granted by another entity (including an Affiliate) in connection
with a merger, consolidation, acquisition of property or stock or similar transaction. Notwithstanding any provision of this Plan
(other than the maximum number of shares of Common Stock that may be issued under this Plan), the terms of such assumed, substituted,
or replaced Awards shall be as the Committee, in its discretion, determines is appropriate.

 

5. Common Stock Subject to Plan

 

A.            Share
Reserve and Limitations on Grants. The maximum aggregate number of shares of Common Stock that may be (i) issued
under this Plan pursuant to the exercise of Options (without regard to whether payment on exercise of the Stock Option is
made in cash or shares of Common Stock) and (ii) issued pursuant to Stock Awards, shall be 1,500,000 shares in the aggregate.
The number of shares of Common Stock subject to the Plan shall be subject to adjustment as provided in Section 9.
Notwithstanding any provision hereto to the contrary, shares subject to the Plan shall include shares forfeited in a prior
year as provided herein. For purposes of determining the number of shares of Common Stock available under this Plan, shares
of Common Stock withheld by the Corporation to satisfy applicable tax withholding obligations pursuant to Section 10 of this
Plan shall be deemed issued under this Plan. No single participant may receive more than 25% of the total Options awarded in
any single year.

 

B.             Reversion
of Shares. If an Option or Stock Award is terminated, expires or becomes unexercisable, in whole or in part, for any reason,
the unissued or unpurchased shares of Common Stock which were subject thereto shall become available for future grant under this
Plan. Shares of Common Stock that have been actually issued under this Plan shall not be returned to the share reserve for future
grants under this Plan; except that shares of Common Stock issued pursuant to a Stock Award which are forfeited to the Corporation
or repurchased by the Corporation at the original purchase price of such shares, shall be returned to the share reserve for future
grant under this Plan.

 

C.             Source
of Shares. Common Stock issued under this Plan may be shares of authorized and unissued Common Stock or shares of previously
issued Common Stock that have been reacquired by the Corporation.

 

6. Options

 

A.            Award.
In accordance with the provisions of Section 4, the Committee will designate each Eligible Person to whom an Option is to
be granted and will specify the number of shares of Common Stock covered by such Option. The Stock Option Agreement shall specify
whether the Option is an Incentive Stock Option or Nonqualified Stock Option, the exercise price of such Option, the vesting schedule
applicable to such Option, the expiration date of such Option, events of termination of such Option, and any other terms of such
Option. No Option that is intended to be an Incentive Stock Option shall be invalid for failure to qualify as an Incentive Stock
Option.

 

 

 

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B.             Option
Price. The exercise price per share for Common Stock subject to an Option shall be determined by the Committee, but shall comply
with the following:

 

	 	(i)	The exercise price per share for Common Stock subject to an Option shall not be less than one hundred percent (100%) of the Fair Market Value on the date of grant.

 

	 	(ii)	The exercise price per share for Common Stock subject to an Incentive Stock Option granted to a Participant who is deemed to be a Ten Percent Owner on the date such option is granted, shall not be less than one hundred ten percent (110%) of the Fair Market Value on the date of grant.

 

C.             Maximum
Option Period. The maximum period during which an Option may be exercised shall be ten (10) years from the date such
Option was granted. In the case of an Incentive Stock Option that is granted to a Participant who is or is deemed to be a Ten
Percent Owner on the date of grant, such Option shall not be exercisable after the expiration of five (5) years from the
date of grant.

 

D.             Maximum
Value of Options which are Incentive Stock Options. To the extent that the aggregate Fair Market Value of the Common Stock
with respect to which Incentive Stock Options granted to any Participant are exercisable for the first time during any calendar
year (under all stock option plans of the Corporation or any Parent or Subsidiary) exceeds $100,000 (or such other amount provided
in Section 422 of the Code), the Options shall not be deemed to be Incentive Stock Options. For purposes of this section,
the Fair Market Value of the Common Stock will be determined as of the time the Incentive Stock Option with respect to the Common
Stock is granted. This section will be applied by taking Incentive Stock Options into account in the order in which they are granted.

 

E.             Nontransferability.
Options granted under this Plan which are intended to be Incentive Stock Options shall be nontransferable except by will or by
the laws of descent and distribution and, during the lifetime of the Participant, shall be exercisable by only the Participant
to whom the Incentive Stock Option is granted. Except to the extent transferability of a Nonqualified Stock Option is provided
for in the Stock Option Agreement or is approved by the Committee, during the lifetime of the Participant to whom the Nonqualified
Stock Option is granted, such Option may be exercised only by the Participant. If the Stock Option Agreement so provides or the
Committee so approves, a Nonqualified Stock Option may be transferred by a Participant through a gift or domestic relations order
to the Participant’s family members to the extent such transfer complies with applicable securities laws and regulations
and provided that such transfer is not a transfer for value (within the meaning of applicable securities laws and regulations).
The holder of a Nonqualified Stock Option transferred pursuant to this section shall be bound by the same terms and conditions
that governed the Option during the period that it was held by the Participant. No right or interest of a Participant in any Option
shall be liable for, or subject to, any lien, obligation, or liability of such Participant, unless such obligation is to the Corporation
itself or to an Affiliate.

 

F.             Vesting.
Options will vest as provided in the Stock Option Agreement.

 

G.             Termination.
Options will terminate as provided in the Stock Option Agreement.

 

H.             Exercise.
Subject to the provisions of this Plan and the applicable Stock Option Agreement, an Option may be exercised to the extent vested
in whole at any time or in part from time to time at such times and in compliance with such requirements as the Committee shall
determine. A partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with
this Plan and the applicable Stock Option Agreement with respect to the remaining shares subject to the Option. An Option may not
be exercised with respect to fractional shares of Common Stock. The Participant may face certain restrictions on his/her ability
to exercise Options and/or sell underlying shares when such Participant is potentially in possession of insider information. The
Corporation will make the Participant aware of any formal insider trading policy it adopts, and the provisions of such insider
trading policy (including any amendments thereto) shall be binding upon the Participant.

 

 

 

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I.              Payment.
Unless otherwise provided by the Stock Option Agreement, payment of the exercise price for an Option shall be made in cash or
a cash equivalent acceptable to the Committee or if the Common Stock is traded on an established securities market, by
payment of the exercise price by a broker-dealer or by the Option holder with cash advanced by the broker-dealer if the
exercise notice is accompanied by the Option holder’s written irrevocable instructions to deliver the Common Stock
acquired upon exercise of the Option to the broker-dealer or by delivery of the Common Stock to the broker-dealer with an
irrevocable commitment by the broker-dealer to forward the exercise price to the Corporation. With the consent of the
Committee, payment of all or a part of the exercise price of an Option may also be made (i) by surrender to the Corporation
(or delivery to the Corporation of a properly executed form of attestation of ownership) of shares of Common Stock that have
been held for such period prior to the date of exercise as is necessary to avoid adverse accounting treatment to the
Corporation, or (ii) any other method acceptable to the Committee. If Common Stock is used to pay all or part of the
exercise price, the sum of the cash or cash equivalent and the Fair Market Value (determined as of the date of exercise) of
the shares surrendered must not be less than the Option price of the shares for which the Option is being exercised.

 

J.              Stockholder
Rights. No Participant shall have any rights as a stockholder with respect to shares subject to an Option until the date of
exercise of such Option and the certificate for shares of Common Stock to be received on exercise of such Option has been issued
by the Corporation.

 

K.            Disposition
and Stock Certificate Legends for Incentive Stock Option Shares. A Participant shall notify the Corporation of any sale
or other disposition of Common Stock acquired pursuant to an Incentive Stock Option if such sale or disposition occurs (i)
within two years of the grant of an Option or (ii) within one year of the issuance of the Common Stock to the
Participant. Such notice shall be in writing and directed to the Chief Financial Officer of the Corporation or is his/her
absence, the Chief Executive Officer. The Corporation may require that certificates evidencing shares of Common Stock
purchased upon the exercise of Incentive Stock Options issued under this Plan be endorsed with a legend in substantially the
following form:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE
MAY NOT BE SOLD OR TRANSFERRED PRIOR TO ___, 20___, IN THE ABSENCE OF A WRITTEN STATEMENT FROM THE CORPORATION TO THE EFFECT THAT
THE CORPORATION IS AWARE OF THE FACTS OF SUCH SALE OR TRANSFER.

 

The blank contained in this legend shall
be filled in with the date that is the later of (i) one year and one day after the date of the exercise of such Incentive Stock
Option or (ii) two years and one day after the grant of such Incentive Stock Option.

  

7. Stock Awards

 

A.            Stock
Bonus Awards. Stock Bonus Awards may be granted by the Committee. Each Stock Award Agreement for a Stock Bonus Award shall
be in such form and shall contain such terms and conditions (including provisions relating to consideration, vesting, reacquisition
of shares following termination, and transferability of shares) as the Committee shall deem appropriate. The terms and conditions
of Stock Award Agreements for Stock Bonus Awards may change from time to time and need not be uniform with respect to Participants,
and the terms and conditions of separate Stock Bonus Awards need not be identical.

 

B.             Restricted
Stock Awards. Restricted Stock Awards may be granted by the Committee. Each Stock Award Agreement for a Restricted Stock Award
shall be in such form and shall contain such terms and conditions (including provisions relating to purchase price, consideration,
vesting, reacquisition of shares following termination, and transferability of shares) as the Committee shall deem appropriate.
The terms and conditions of the Stock Award Agreements for Restricted Stock Awards may change from time to time and need not be
uniform with respect to Participants, and the terms and conditions of separate Restricted Stock Awards need not be identical. Vesting
of any grant of Restricted Stock Awards may be further conditioned upon the attainment of Performance Objectives established by
the Committee in accordance with the applicable provisions of Section 8 of this Plan regarding Performance Shares.

 

C.             Deferred
Shares. The Committee may authorize grants of Deferred Shares to Participants upon the recommendation of the
Corporation’s management, and upon such terms and conditions as the Committee may determine in accordance with the
following provisions:

 

	 	(i)	Each grant shall constitute the agreement by the Corporation to issue or transfer shares of Common Stock to the Participant in the future in consideration of the performance of services, subject to the fulfillment during the Deferral Period of such conditions as the Committee may specify.

 

	 	(ii)	Each grant may be made without additional consideration from the Participant or in consideration of a payment by the Participant that is less than the Fair Market Value on the date of grant.

 

 

 

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	 	(iii)	Each grant shall provide that the Deferred Shares covered thereby shall be subject to a Deferral Period, which shall be fixed by the Committee on the date of grant, and any grant or sale may provide for the earlier termination of such period in the event of a change in control of the Corporation or other similar transaction or event.

 

	 	(iv)	During the Deferral Period, the Participant shall not have any right to transfer any rights under the subject Award, shall not have any rights of ownership in the Deferred Shares and shall not have any right to vote such shares, but the Committee may on or after the date of grant, authorize the payment of dividend or other distribution equivalents on such shares in cash or additional shares on a current, deferred or contingent basis.

 

	 	(v)	Any grant, or the vesting thereof, may be further conditioned upon the attainment of Performance Objectives established by the Committee in accordance with the applicable provisions of Section 8 of this Plan regarding Performance Shares.

 

	 	(vi)	Each grant shall be evidenced by an agreement delivered to and accepted by the Participant and containing such terms and provisions as the Committee may determine consistent with this Plan. The terms and conditions of the agreements for Deferred Shares may change from time to time and need not be uniform with respect to Participants, and the terms and conditions of separate Deferred Shares need not be identical.

 

8. Performance Shares

 

A.          
The Committee may authorize grants of Performance Shares, which shall become payable to the Participant upon the achievement of
specified Performance Objectives, upon such terms and conditions as the Committee may determine in accordance with the following
provisions:

 

	 	(i)	Each grant shall specify the number of Performance Shares to which it pertains, which may be subject to adjustment to reflect changes in compensation or other factors.

 

	 	(ii)	The Performance Period with respect to each Performance Share shall commence on the date established by the Committee and may be subject to earlier termination in the event of a change in control of the Corporation or similar transaction or event.

 

	 	(iii)	Each grant shall specify the Performance Objectives that are to be achieved by the Participant.

 

	 	(iv)	Each grant may specify in respect of the specified Performance Objectives a minimum acceptable level of achievement below which no payment will be made and may set forth a formula for determining the amount of any payment to be made if performance is at or above such minimum acceptable level but falls short of the maximum achievement of the specified Performance Objectives.

 

	 	(v)	Each grant shall specify the time and manner of payment of Performance Shares that shall have been earned, and any grant may specify that any such amount may be paid by the Corporation in cash, shares of Common Stock or any combination thereof and may either grant to the Participant or reserve to the Committee the right to elect among those alternatives.

 

	 	(vi)	Any grant of Performance Shares may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee on the date of grant.

 

	 	(vii)	Any grant of Performance Shares may provide for the payment to the Participant of dividend or other distribution equivalents thereon in cash or additional shares of Common Stock on a current, deferred or contingent basis.

 

	 	(viii)	If provided in the terms of the grant and subject to the requirements of Section 162(m) of the Code (in the case of awards intended to qualify for exception therefrom), the Committee may adjust Performance Objectives and the related minimum acceptable level of achievement if, in the sole judgment of the Committee, events or transactions have occurred after the date of grant that are unrelated to the performance of the Participant and result in distortion of the Performance Objectives or the related minimum acceptable level of achievement.

 

 

 

    	 	8	 

     

    

 

	 	(ix)	Each grant shall be evidenced by an agreement that shall be delivered to and accepted by the Participant, which shall state that the Performance Shares are subject to all of the terms and conditions of this Plan and such other terms and provisions as the Committee may determine consistent with this Plan. The terms and conditions of the agreements for Performance Shares may change from time to time and need not be uniform with respect to Participants, and the terms and conditions of separate Performance Shares need not be identical.

 

	 	(x)	Until the achievement of the Performance Objectives and the resulting issuance of the Performance Shares, the Participant shall not have any rights as a stockholder in the Performance Shares and shall not have any right to vote such shares, but the Committee may on or after the date of grant, authorize the payment of dividend or other distribution equivalents on such shares in cash or additional shares on a current, deferred or contingent basis.

 

9. Changes in Capital Structure

 

A.            No
Limitations of Rights. The existence of outstanding Awards shall not affect in any way the right or power of the Corporation
or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation’s
capital structure or its business, or any merger or consolidation of the Corporation, or any issuance of bonds, debentures, preferred
or prior preference stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the
Corporation, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.

 

B.             Changes
in Capitalization. If the Corporation shall effect a subdivision or consolidation of shares or other capital readjustment,
the payment of a stock dividend, or other increase or reduction of the number of shares of the Common Stock outstanding, without
receiving consideration therefore in money, services or property, then (i) the number, class, and per share price of shares of
Common Stock subject to outstanding Options and other Awards hereunder and (ii) the number of and class of shares then reserved
for issuance under this Plan and the maximum number of shares for which Awards may be granted to a Participant during a specified
time period shall be appropriately and proportionately adjusted. The conversion of convertible securities of the Corporation shall
not be treated as effected “without receiving consideration.” The Committee shall make such adjustments, and its determinations
shall be final, binding and conclusive.

 

C.             Merger,
Consolidation or Asset Sale. If the Corporation is merged or consolidated with another entity or sells or otherwise disposes
of substantially all of its assets to another company while Options or Stock Awards remain outstanding under this Plan, unless
provisions are made in connection with such transaction for the continuance of this Plan and/or the assumption or substitution
of such Options or Stock Awards with new options or stock awards covering the stock of the successor company, or parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of shares and prices, then all outstanding Options and Stock Awards
which have not been continued, assumed or for which a substituted award has not been granted shall, whether or not vested or then
exercisable, unless otherwise specified in the Stock Option Agreement or Stock Award Agreement, terminate immediately as of the
effective date of any such merger, consolidation or sale.

 

D.             Limitation
on Adjustment. Except as previously expressly provided, neither the issuance by the Corporation of shares of stock of any class,
or securities convertible into shares of stock of any class, for cash or property, or for labor or services either upon direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Corporation
convertible into such shares or other securities, nor the increase or decrease of the number of authorized shares of stock, nor
the addition or deletion of classes of stock, shall affect, and no adjustment by reason thereof shall be made with respect to,
the number, class or price of shares of Common Stock then subject to outstanding Options or Stock Awards.

 

10. Withholding of Taxes

 

The Corporation or an Affiliate shall
have the right, before any certificate for any Common Stock is delivered, to deduct or withhold from any payment owed to a
Participant any amount that is necessary in order to satisfy any withholding requirement that the Corporation or Affiliate in
good faith believes is imposed upon it in connection with U.S federal, state, or local taxes, including transfer taxes, as a
result of the issuance of, or lapse of restrictions on, such Common Stock, or otherwise require such Participant to make
provision for payment of any such withholding amount. Subject to such conditions as may be established by the Committee, the
Committee may permit a Participant to (i) have Common Stock otherwise issuable under an Option or Stock Award withheld to the
extent necessary to comply with minimum statutory withholding rate requirements; (ii) tender back to the Corporation shares
of Common Stock received pursuant to an Option or Stock Award to the extent necessary to comply with minimum statutory
withholding rate requirements for supplemental income; (iii) deliver to the Corporation previously acquired Common
Stock; (iv) have funds withheld from payments of wages, salary or other cash compensation due the Participant;
(v) pay the Corporation or its Affiliate in cash, in order to satisfy part or all of the obligations for any taxes
required to be withheld or otherwise deducted and paid by the Corporation or its Affiliate with respect to the Option of
Stock Award; or (vi) establish a 10b5-1 trading plan for withheld stock designed to facilitate the sale of stock in
connection with the vesting of such shares, the proceeds of which shall be utilized to make all applicable withholding
payments in a manner to be coordinated by the Corporation’s Chief Financial Officer.

 

 

 

    	 	9	 

     

    

 

11. Compliance with Law and Approval
of Regulatory Bodies

 

A.            General
Requirements. No Option or Stock Award shall be exercisable, no Common Stock shall be issued, no certificates for shares of
Common Stock shall be delivered, and no payment shall be made under this Plan except in compliance with all applicable federal
and state laws and regulations (including, without limitation, withholding tax requirements), any listing agreement to which the
Corporation is a party, and the rules of all domestic stock exchanges or quotation systems on which the Corporation’s shares
may be listed. The Corporation shall have the right to rely on an opinion of its counsel as to such compliance. In the absence
of an effective and current registration statement on an appropriate form under the Securities Act, or a specific exemption from
the registration requirements of the Securities Act, shares of Common Stock issued under this Plan shall be restricted shares.
Any share certificate issued to evidence Common Stock when a Stock Award is granted or for which an Option is exercised may bear
such restrictive legends and statements as the Committee may deem advisable to assure compliance with federal and state laws and
regulations. No Option or Stock Award shall be exercisable, no Stock Award shall be granted, no Common Stock shall be issued, no
certificate for shares shall be delivered, and no payment shall be made under this Plan until the Corporation has obtained such
consent or approval as the Committee may deem advisable from regulatory bodies having jurisdiction over such matters.

 

B.             Participant
Representations. The Committee may require that a Participant, as a condition to receipt or exercise of a particular
award, execute and deliver to the Corporation a written statement, in form satisfactory to the Committee, in which the
Participant represents and warrants that the shares are being acquired for such person’s own account, for investment
only and not with a view to the resale or distribution thereof. The Participant shall, at the request of the Committee, be
required to represent and warrant in writing that any subsequent resale or distribution of shares of Common Stock by the
Participant shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities
Act of 1933, which registration statement has become effective and is current with regard to the shares being sold, or (ii) a
specific exemption from the registration requirements of the Securities Act of 1933, but in claiming such exemption the
Participant shall, prior to any offer of sale or sale of such shares, obtain a prior favorable written opinion of counsel, in
form and substance satisfactory to counsel for the Corporation, as to the application of such exemption thereto.

 

12. General Provisions

 

A.            Effect
on Employment and Service. Neither the adoption of this Plan, its operation, nor any documents describing or referring to
this Plan (or any part thereof) shall (i) confer upon any individual any right to continue in the employ or service of the
Corporation or an Affiliate, (ii) in any way affect any right and power of the Corporation or an Affiliate to change an
individual’s duties or terminate the employment or service of any individual at any time with or without assigning a
reason therefor or (iii) except to the extent the Committee grants an Option or Stock Award to such individual, confer
on any individual the right to participate in the benefits of this Plan.

 

B.             Use
of Proceeds. The proceeds received by the Corporation from any sale of Common Stock pursuant to this Plan shall be used for
general corporate purposes.

 

C.             Unfunded
Plan. This Plan, insofar as it provides for grants, shall be unfunded, and the Corporation shall not be required to segregate
any assets that may at any time be represented by grants under this Plan. Any liability of the Corporation to any Participant with
respect to any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant to this
Plan. No such obligation of the Corporation shall be deemed to be secured by any pledge of, or other encumbrance on, any property
of the Corporation.

 

D.            Rules
of Construction. Headings are given to the Sections of this Plan solely as a convenience to facilitate reference. The reference
to any statute, regulation, or other provision of law shall be construed to refer to any amendment to or successor of such provision
of law.

 

E.             Choice
of Law. This Plan and all Stock Option Agreements, Stock Award Agreements, and Performance Agreements (or any other agreements)
entered into under this Plan shall be interpreted under the Nevada Corporation Law excluding (to the greatest extent permissible
by law) any rule of law that would cause the application of the laws of any jurisdiction other than the Nevada Corporation Law.

 

F.             Fractional
Shares. The Corporation shall not be required to issue fractional shares pursuant to this Plan. The Committee may provide for
elimination of fractional shares or the settlement of such fractional shares in cash.

 

 

 

    	 	10	 

     

    

 

G.             Foreign
Employees. In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide
for such special terms for Awards to Participants who are foreign nationals, or who are employed by the Corporation or any Affiliate
outside of the United States, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax
policy or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions
of, this Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of this Plan, as
then in effect, unless this Plan could have been amended to eliminate such inconsistency without further approval by the stockholders
of the Corporation.

 

13. Amendment and Termination

 

The Board may amend or terminate this
Plan from time to time; provided, however, stockholder approval shall be required for any amendment that (i) increases the
aggregate number of shares of Common Stock that may be issued under this Plan, except as contemplated herein; (ii) changes
the class of employees eligible to receive Incentive Stock Options; (iii) modifies the restrictions on re-pricings set forth
in this Plan; or (iv) is required by the terms of any applicable law, regulation or rule, including the rules of any
market on which the Corporation shares are traded or exchange on which the Corporation shares are listed. Except as
specifically permitted by this Plan, any Stock Option Agreement or any Stock Award Agreement or as required to comply with
applicable law, regulation or rule, no amendment shall, without a Participant’s consent, adversely affect any rights of
such Participant under any Option or Stock Award outstanding at the time such amendment is made; provided, however, that an
amendment that may cause an Incentive Stock Option to become a Nonqualified Stock Option shall not be treated as adversely
affecting the rights of the Participant. Any amendment requiring stockholder approval shall be approved by the stockholders
of the Corporation within twelve (12) months of the date such amendment is adopted by the Board.

 

14. Effective Date of Plan; Duration
of Plan

 

A.           
This Plan shall be effective upon adoption by the Board, subject to approval within twelve (12) months by the stockholders
of the Corporation. Unless and until the Plan has been approved by the stockholders of the Corporation, no Option or Stock Award
may be exercised, no shares of Common Stock may be issued under this Plan. In the event that the stockholders of the Corporation
shall not approve the Plan within such twelve (12) month period, the Plan and any previously granted Options or Stock Awards
shall terminate.

 

B.            
Unless previously terminated, this Plan will terminate ten (10) years after the earlier of (i) the date this Plan is
adopted by the Board, or (ii) the date this Plan is approved by the stockholders, except that Awards that are granted under
this Plan prior to its termination will continue to be administered under the terms of this Plan until the Awards terminate, expire
or are exercised.

 

IN WITNESS WHEREOF, the Corporation
has caused this Plan to be executed by a duly authorized officer as of the date of adoption of this Plan by the Board of Directors.

 

MEDICINE MAN TECHNOLOGIES, INC.

 

By: /s/ Andrew Williams

    Andrew
Williams

    Chief
Executive Officer

 

 

    	 	11Exhibit 4.2

 

AGRIFORCE
GROWING SYSTEMS LTD.

 

(the
“COMPANY”)

AMENDED
AND RESTATED STOCK OPTION PLAN

 

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

 

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

 

    	 

    	1

    

 

TABLE
OF CONTENTS

 

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

 

    	 

    	2

    

 

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

 

    	 

    	3

    

 

STOCK
OPTION PLAN

 

SECTION
1

DEFINITIONS
AND INTERPRETATION

 

	1.1	Definitions

 

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

 

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

 

    	 

    	4

    

 

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

 

    	 

    	5

    

 

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

 

    	 

    	6

    

 

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

 

    	 

    	7

    

 

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

 

1.2
Choice of Law

 

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

 

1.3
Headings

 

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

 

    	 

    	8

    

 

SECTION
2

GRANT
OF OPTIONS

 

2.1
Grant of Options

 

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

 

2.2
Record of Option Grants

 

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

 

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

 

2.3
Effect of Plan

 

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

 

    	 

    	9

    

 

SECTION
3

PURPOSE
AND PARTICIPATION

 

3.1
Purpose of Plan

 

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

 

3.2
Participation in Plan

 

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

 

3.3
Limits on Option Grants

 

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

 

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

 

3.4
Notification of Grant

 

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

 

    	 

    	10

    

 

3.5
Copy of Plan

 

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

 

3.6
Limitation on Service

 

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

 

3.7
No Obligation to Exercise

 

Option
Holders shall be under no obligation to exercise Options.

 

3.8
Agreement

 

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

 

3.9
Notice

 

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

 

3.10
Representation

 

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

 

    	 

    	11

    

 

SECTION
4

NUMBER
OF SHARES UNDER PLAN

 

4.1
Board to Approve Issuance of Shares

 

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

 

4.2
Number of Shares

 

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

 

4.3
Fractional Shares

 

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

 

SECTION
5

TERMS
AND CONDITIONS OF OPTIONS

 

5.1
Exercise Period of Option

 

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

 

5.2
Number of Shares Under Option

 

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

 

    	 

    	12

    

 

5.3
Exercise Price of Option

 

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

 

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

 

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

 

5.4
Incentive Stock Options.

 

Incentive
Stock Options may only be granted to Employees who are resident in the United States. To the extent that Options designated as
Incentive Stock Options become exercisable by a Holder for the first time during any calendar year for Shares having a fair market
value greater than US$1,000,000, the portion of such Options which exceeds such amount shall not be treated as Incentive Stock Options
but instead shall be treated as Non-Statutory Stock Options. For the purposes of this Section 5.4, Options designated as Incentive
Stock Options shall be taken into account in the order in which they were granted, and the fair market value of Shares shall be
determined as of the Grant Date of the Option with respect to such Shares. If the Code is amended to provide for a different limitation
than that set forth in this Section 5.4, such different limitation shall be deemed incorporated herein effective as of the date
and with respect to such Options as may be required or permitted by such amendment to the Code. If an Option is treated as a Non-Statutory
Option in part by reason of the limitation set forth in this Section 5.4, the Holder may designate which portion of such Option
the Holder is exercising at any given time. In the absence of such designation, the Holder shall be deemed to have exercised the
Incentive Stock Option portion of the Option first. The Company shall have no liability to a Holder, or any other party, if any
Option (or any part thereof) intended to be an Incentive Stock Option is not an Incentive Stock Option.

 

    	 

    	13

    

 

5.5
Termination of Option

 

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

 

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

 

    	 

    	14

    

 

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

 

5.6
Vesting of Option and Acceleration

 

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

 

5.7
Cashless Exercise

 

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

 

5.8
Additional Terms

 

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

 

SECTION
6

TRANSFERABILITY
OF OPTIONS

 

6.1
Non-transferable

 

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

 

    	 

    	15

    

 

6.2
Death of Option Holder

 

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

 

6.3
Disability of Option Holder

 

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

 

6.4
Disability and Death of Option Holder

 

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

 

6.5
Vesting

 

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

 

6.6
Deemed Non-Interruption of Engagement

 

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

 

SECTION
7

EXERCISE
OF OPTION

 

7.1
Exercise of Option

 

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

 

    	 

    	16

    

 

7.2
Black Out Period

 

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

 

7.3
Issue of Share Certificates

 

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

 

7.4
No Rights as Shareholder

 

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

 

7.5
Tax Withholding and Procedures

 

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

 

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

 

    	 

    	17

    

 

SECTION
8

ADMINISTRATION

 

8.1
Board or Committee

 

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

 

8.2
Powers of Committee

 

The
Committee shall have the authority to do the following:

 

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

 

    	 

    	18

    

 

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

 

8.3
Administration by Committee

 

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

 

8.4
Interpretation

 

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

 

SECTION
9

APPROVALS
AND AMENDMENT

 

9.1
Shareholder Approval of Plan

 

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

 

9.2
Amendment of Option or Plan

 

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

 

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

 

    	 

    	19

    

 

SECTION
10

CONDITIONS
PRECEDENT TO ISSUANCE OF OPTIONS AND SHARES

 

10.1
Compliance with Laws

 

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

 

10.2
Regulatory Approvals

 

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

 

10.3
Inability to Obtain Regulatory Approvals

 

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

 

SECTION
11

ADJUSTMENTS
AND TERMINATION

 

11.1
Termination of Plan

 

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

 

11.2
No Grant During Suspension of Plan

 

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

 

    	 

    	20

    

 

11.3
Alteration in Capital Structure

 

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

 

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

 

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

 

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

 

11.4
Triggering Events

 

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

 

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

 

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

 

11.5
Notice of Termination by Triggering Event

 

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

 

    	 

    	21

    

 

11.6
Determinations to be Made By Committee

 

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

 

SECTION
12

ADJUSTMENTS
AND TERMINATION

 

12.1
Maximum Number of Options

 

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

 

    	 

    	 

    

 

SCHEDULE
A

 

TO
THE STOCK OPTION PLAN OF AGRIFORCE GROWING SYSTEMS LTD.

 

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

 

STOCK
OPTION CERTIFICATE

OF

AGRIFORCE
GROWING SYSTEMS LTD.

(the
“Corporation”)

 

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

 

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

 

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

 

Exercise
Price

 

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

 

Expiry
Date

 

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

 

    	 

    	 

    

 

Vesting

 

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

 

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

 

Exercise
of Option

 

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

 

Termination
of the Option

 

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

 

Copy
of Plan

 

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

 

    	 

    	 

    

 

Additional
Agreements of Optionee

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

Schedule
A to Option Certificate

 

Election
to Exercise

 

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

 

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

 

and
hereby exercise the Option as follows:

 

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

 

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

 

Or

 

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

 

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

 

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

 

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

 

DATED
this___________day of ___________, ______.

 

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

 

    	 

    	 

    

 

EXHIBIT
A

 

TO
NOTICE OF EXERCISE

 

CASHLESS
EXERCISE

 

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

 

 

where:

 

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

 

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

 

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

 

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

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