Document:

Exhibit 10.3

 

FORM
OF INDEMNITY AGREEMENT

 

 This
INDEMNITY AGREEMENT is effective as of the   day___ of ____________ , 2020, by and between Clever Leaves Holdings Inc. (hereinafter
referred to as the “Company”), a company incorporated under the Business Corporations Act (British Columbia)
(the “Act”), and [●] (hereinafter referred to as the “Nominee”).

 

WHEREAS,
the Nominee has been requested to consent to act or to continue to act as a director or officer of the Company and, from time
to time, may be appointed a director or officer of one or more Associated Corporations (“Associated Corporation”
having the same meaning as “associated corporation” in the Act); and

 

WHEREAS,
the Nominee is willing to act or to continue to act on the condition that the Company enter into this Indemnity Agreement.

 

NOW
THEREFORE, in consideration of the Nominee consenting to act as a director or officer of the Company and/or its Associated
Corporations and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the parties,
the Company agrees with the Nominee as follows:

 

1. INDEMNITY

 

1.1 General
Scope: The Company shall indemnify the Nominee and the Nominee’s heirs, executors, administrators and personal representatives
(collectively the “Indemnitees” and, individually, an “Indemnitee”) for all liabilities
or obligations imposed upon or incurred by the Indemnitees at law, in equity or by, pursuant to or under any statute or regulation
and all Expenses (as defined herein) (“Liability”) in relation to any claim, action, proceeding, investigation,
or order whether civil, criminal or administrative and whether made or commenced by the Company, by an Associated Corporation
or by any other person (collectively, or individually, a “Claim”) by reason of:

 

(a) the
Nominee being or having been a director, alternate director or officer of, or holding or having held a position equivalent to
that of a director, alternate director or officer of, the Company or any Associated Corporation, or

 

 (b) any
act or omission, whether or not negligent, of the Nominee acting as a director, alternate director or officer, or as a person
in an equivalent position, of the Company or any Associated Corporation,

 

including
without limitation, legal fees and disbursements and all other costs of investigation and defence incurred by the Indemnitees
or any of them in relation to a Claim, whether or not any action or proceeding is commenced, and all amounts paid or payable by
the Indemnitees or any of them, to settle a Claim or to satisfy a judgment, including without limitation the payment of interest
and costs, or otherwise to discharge a Liability imposed or incurred.

 

1.2 Absolute
Liability: Without limiting the generality of paragraph 2.1, the Company shall indemnify the Indemnitees against any Liability
in relation to a Claim which is statutorily imposed on the Nominee.

 

     

     

    

 

1.3 Negligence:
Without limiting the generality of paragraph 2.1, the Company shall indemnify the Indemnitees against any Liability in relation
to a Claim arising from negligent conduct of the Nominee.

 

1.4 Actual
Payment: The Company shall pay all amounts due to an Indemnitee under this Indemnity Agreement within 30 days upon written
demand by the Indemnitee with such documentation and information as is reasonably available to the Indemnitee.

 

1.5 Insurance:
The Company shall procure and maintain insurance for the directors and officers of the Company and Associated Corporations
that is reasonable for the Company’s business and risk profile, as determined by the Company in its sole discretion.

 

2. INDEMNITY
RESTRICTED

 

Despite
any other provision of this Indemnity Agreement and subject to the Act, the Company is not obliged under this Indemnity Agreement
to make any payment (a) that is prohibited by applicable law, including, as at the date of this Indemnity Agreement, Section 163
of the Act if that provision is applicable, or by court order in force at the date the payment must be made; (b) in any claim
initiated by an Indemnitee against the Company unless consented to by the Board of Directors; or (c) on account of any proceeding
with respect to which final judgment is rendered against the Indemnitee for payment or an accounting of profits arising from the
purchase or sale by the Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute.

 

3. ADVANCE
EXPENSES

 

Unless
prohibited by applicable law or court order, the Company shall pay, as they are incurred in advance of the final disposition of
a Claim, the costs, charges and expenses, including legal and other fees actually and reasonably incurred and documented by an
Indemnitee in respect of the Claim (“Expenses”) provided that the Company shall not make such payments unless
the Company first receives from the Indemnitee a written undertaking that, if it is ultimately determined that the payment of
Expenses is prohibited by applicable law, the Indemnitee will repay the amounts advanced within a reasonable time period, not
to exceed 60 days from the determination date.

 

4. TAXABLE
BENEFITS

 

Any
indemnity payment made pursuant to this Indemnity Agreement shall be grossed up by the amount of any tax payable by the Indemnitee
pursuant to the Income Tax Act (Canada) or the Internal Revenue Code of 1986 (United States) in respect of such payment.

 

5. ENFORCEMENT
COSTS

 

5.1 Application
to Court: If any payment by the Company under this Indemnity Agreement would be prohibited under paragraph 2 unless approved
by a court, or if there shall be a disagreement between the Company and any Indemnitee as to whether or not an indemnification
under this Indemnity Agreement would be prohibited under paragraph 2 unless approved by the court, the Company, at its own expense
and in good faith, will promptly take proceedings to obtain that approval or such other appropriate determination. The Company
shall indemnify the Indemnitees for the amount of all costs incurred by any or all of them in obtaining any court approval contemplated
by this paragraph 5.1, including without limitation all legal fees and disbursements.

 

    	 	2	 

     

    

 

5.2 Independent
Counsel: The Indemnitees, or any of them, may each retain their own independent legal counsel. However, the Indemnitees shall
retain the prior written approval of the Company with respect to any independent legal counsel, such approval not to be unreasonably
withheld or delayed, for the purpose set out in paragraph 5.1 or for any other purpose in relation to a Claim and the cost of
such representation shall be considered a “Liability” to which this Indemnity Agreement applies.

 

5.3 No
Presumption of Wrong Doing: The determination of any Claim, by adjudication, settlement, or otherwise, shall not, of itself,
create any presumption for the purposes of this Indemnity Agreement that the Nominee did not act honestly and in good faith with
a view to the best interests of the Company or an Associated Corporation, or, in the case of a criminal or administrative action
or proceeding, that the Nominee did not have reasonable grounds for believing that his conduct was lawful, unless a judgment or
order of the Court specifically finds otherwise.

 

6. NOMINEE
CEASING TO ACT

 

The
Nominee may resign at any time as a director, alternate director and/or officer, or from an equivalent position, of the Company
or any Associated Corporation. The obligations of the Company hereunder continue after and are not affected in any way by the
Nominee ceasing to be a director, alternate director and/or officer, or to hold an equivalent position, of the Company or any
Associated Corporation whether by resignation, removal, death, incapacity, disqualification under applicable law or otherwise.

 

7. RE-ELECTION

 

The
obligations of the Company under this Indemnity Agreement continue after and are not affected in any way by the re-election or
re-appointment from time to time of the Nominee as a director or officer, or to an equivalent position, of the Company or any
of its Associated Corporations.

 

8. CONTINUING
INDEMNITY

 

8.1 Other
Compensation: The obligations of the Company under this Indemnity Agreement are not diminished or in any way affected by:

 

 (a) Financial
Interest: the Nominee holding from time to time any direct or indirect financial interest in the Company, in an Associated
Corporation or in a corporation otherwise related to the Company;

 

 (b) Salary/Compensation:
payment by the Company, by an Associated Corporation, or by any corporation otherwise related to the Company, to the Nominee
of director’s fees or any salary, wages or other compensation;

 

    	 	3	 

     

    

 

 (c) Interested
Contracts: payment by the Company, by an Associated Corporation, or by any corporation otherwise related to the Company, to
the Nominee or to any firm of which the Nominee is a partner, associate or employee, of any fees for services rendered;

 

 (d) D&O
Insurance: any directors’ or officers’ liability insurance placed by or for the benefit of the Nominee by the
Nominee, the Company, an Associated Corporation or any entity related to any of them; or

 

 (e) Other
Indemnities: payment to the Nominee by any shareholder of the Company, an Associated Corporation or any corporation otherwise
related to the Company, or by any other person pursuant to any other contract of indemnity.

 

8.2 Non
Compliance with Constating Documents: The obligations of the Company under this Indemnity Agreement are not diminished, or
in any way affected by the Nominee’s failure to comply with the provisions of the Act or of the memorandum, articles or
notice of articles of the Company.

 

8.3 Non
Waiver: No waiver by the Nominee of any default or breach of any of the terms, covenants, conditions, or obligations of this
Indemnity Agreement shall constitute a waiver by the Nominee of any prior, concurrent, or subsequent default or breach of the
same, or any other term, covenant, condition, or obligation of the Company.

 

9. REPORTING

 

9.1 Material
Developments: The Company shall report promptly and regularly to the Nominee any material adverse change in the financial
condition, business or property of the Company or any entity related to it and any event or circumstance known to the Company
that may result, directly or indirectly, in any liability or obligation being imposed upon any Indemnitee. The Company may request,
and the Nominee shall provide reasonably promptly, an update to any conditions that have resulted in a known liability or obligation
imposed upon any Indemnitee.

 

9.2 Nominee
Cooperation: The Nominee agrees to give notice to the Company within two business days of being served with any statement
of claim, writ, notice of motion, indictment, or other documents commencing or continuing any Claim against the Nominee. The Nominee
agrees to give the Company such information and cooperation as the Company may reasonably require from time to time in respect
of all matters contemplated by this Indemnity Agreement.

 

9.3 Company
Cooperation: The Company agrees to notify the Nominee in writing within two business days of being served with any statement
of claim, writ, notice of motion, indictment, or other document commencing or continuing any Claim against the Nominee. The Company
agrees to give the Nominee such information and cooperation as the Nominee may reasonably require from time to time in respect
of all matters under this Indemnity Agreement.

 

 10. LAW
AND JURISDICTION

 

This
Indemnity Agreement is governed by British Columbia law. The Company and the Nominee agree irrevocably and unconditionally to
the jurisdiction of the courts of British Columbia in respect of any action or proceeding commenced by an Indemnitee or the Company
in respect of this Indemnity Agreement.

 

11. ENUREMENT

 

This
Indemnity Agreement enures to the benefit of the Nominee and the Nominee’s heirs, executors, administrators and personal
representatives. This Indemnity Agreement is binding upon the Company and its successors and assigns.

 

12. COUNTERPARTS

 

This
Indemnity Agreement may be executed in any number of counterparts (including counterparts by facsimile), each of which when so
executed will be deemed to be an original and will have the same force and effect as an original but such counterparts together
will constitute but one and the same instrument.

 

[Signature
page follows]

 

    	 	4	 

     

    

 

IN
WITNESS WHEREOF, this Indemnity Agreement will, notwithstanding the date of execution, be effective between the Company and the
Nominee on the date first above written.

 

	CLEVER
    LEAVES HOLDINGS INC.
	 	 
	By:	           	 
	Name:	 	 
	Title:	 	 
	(Authorized
    Signatory)	 

 

	 	 
	[●]	 

 

[Signature page to D&O Indemnity Agreement]Exhibit 4.2

 

DESCRIPTION OF THE REGISTRANT’S
SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF
THE

SECURITIES EXCHANGE ACT OF 1934

 

IDT Corporation has
one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our Class B common
stock, par value $0.01 per share.

 

Our authorized capital
stock consists of (i) 35.0 million shares of Class A common stock, (ii) 200.0 million shares of Class B common stock, and (iii)
10.0 million shares of Preferred Stock.

 

The following description
of our classes of authorized stock does not purport to be complete and is subject to and qualified in its entirety by reference
to our charter and bylaws, copies of which are filed as exhibits to the Annual Report on Form 10-K to which this Exhibit 4.2 is
a part.

 

Class A Common Stock

 

Holders of shares of
our Class A common stock are entitled to three votes for each share on all matters to be voted on by the stockholders. Holders
of our Class A common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by the Board
of Directors in its discretion from funds legally available therefor. Each share of our Class A common stock may be converted,
at any time and at the option of the holder, and automatically converts upon transfers to unaffiliated parties, into one fully
paid and non-assessable share of our Class B common stock.

 

As of December 17,
2020, there were 1,574,326 of our shares of Class A common stock outstanding.

 

Class B Common Stock

 

Holders of shares of
our Class B common stock are entitled to one-tenth of one vote for each share on all matters to be voted on by the stockholders.
Holders of our Class B common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by
the Board of Directors in its discretion from funds legally available therefor.

 

As of December 17,
2020, there were 23,942,301 shares of Class B common stock outstanding.

 

Preferred Stock

 

The Board of Directors
has the authority to fix the price, rights, preferences, privileges and restrictions, including voting rights, of those shares
without any further vote or action by the stockholders.

 

As of December 17,
2020, there were no shares of our preferred stock were outstanding.

 

Anti-Takeover Effects of Our Charter and By-Laws

 

Some provisions of
Delaware law and our Certificate of Incorporation and By-Laws could make the following more difficult:

 

		●	acquisition
of us by means of a tender offer;

 

		●	acquisition
of us by means of a proxy contest or otherwise; or

 

		●	removal
of our incumbent officers and directors.

 

These provisions, summarized
below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions also are designed
to encourage persons seeking to acquire control of us to first negotiate with our Board of Directors. We believe that the benefits
of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal
to acquire or restructure us and outweigh the disadvantages of discouraging those proposals because negotiation of them could result
in an improvement of their terms.

 

Certificate of Incorporation; By-Laws

 

Our Certificate of
Incorporation and By-Laws contain provisions that could make more difficult the acquisition of us by means of a tender offer, a
proxy contest or otherwise. Certain of these provisions are summarized below.

 

Undesignated Preferred
Stock. The authorization of our undesignated preferred stock makes it possible for our Board of Directors to issue our
preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us.
These and other provisions may have the effect of deferring hostile takeovers or delaying changes of control of our management.

 

Size of Board and
Vacancies. Our Certificate of Incorporation provides that the number of directors on our Board of Directors will be between
three and seventeen. Newly created directorships resulting from any increase in our authorized number of directors or any vacancies
in our Board of Directors resulting from death, resignation, retirement, disqualification, removal from office or other cause will
be filled solely by the vote of our remaining directors in office.

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