Document:

Exhibit 4.2

 

PURSUANT TO THE TERMS OF SECTION 1 OF THIS
WARRANT, ALL OR A PORTION OF THIS WARRANT MAY HAVE BEEN EXERCISED, AND THEREFORE THE ACTUAL NUMBER OF WARRANT SHARES REPRESENTED BY THIS
WARRANT MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF.

 

CARILOHA, INC.

 

Warrant
To Purchase Common Stock

 

Warrant No.: 1

Number of Shares of Common Stock: [•]

Date of Issuance: [•], 2022 (“Issuance Date”)

 

Cariloha, Inc., a Delaware corporation (the “Company”),
hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Roth Capital
Partners, LLC, the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms
set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant
to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, this “Warrant”),
at any time or times on or after the Issuance Date (the “Exercisability Date”), but not after 11:59 p.m., New York
time, on the Expiration Date (as defined below), ______________ (_____________)1
fully paid nonassessable shares of Common Stock (the “Warrant Shares”). Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is the Underwriter Warrant to Purchase Common Stock
issued pursuant to (i) Section 4(e) of the Underwriting Agreement, dated as of [•], 2022, by and between the Company and Roth Capital
Partners, LLC (the “Underwriting Agreement”) and (ii) the Company’s Registration Statement on Form S-1 (File
No.: 333-262066) (the “Registration Statement”).

 

 

1 NTD: A number of shares of common
stock equal to 6% of the number of shares issued in the offering.

 

    -1-

     

    

 

1.                 
EXERCISE OF WARRANT.

 

(a)               Mechanics
of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the
Exercisability Date, in whole or in part (but not as to fractional shares), by delivery of a written notice, in the form attached
hereto as Exhibit A (the “Exercise Notice”) of the Holder’s election to exercise this Warrant. No
ink-original Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of
any Exercise Notice form be required. Within two (2) Trading Days of the delivery of such Exercise Notice, if the Holder is not
electing a Cashless Exercise (as defined below) pursuant to Section 1(d) of this Warrant, the Holder shall pay to the Company an
amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised
(the “Aggregate Exercise Price”) in cash or wire transfer of immediately available funds (a “Cash
Exercise”). The Holder shall not be required to surrender this Warrant in order to effect an exercise hereunder; provided, however,
that in the event that this Warrant is exercised in full or for the remaining unexercised portion hereof, the Holder shall deliver
this Warrant to the Company for cancellation within a reasonable time after such exercise. On or before the first (1st) Trading Day
following the date on which the Company has received the Exercise Notice (the date upon which the Company has received the Exercise
Notice, the “Exercise Date”), the Company shall transmit by facsimile or e-mail transmission an acknowledgment of
confirmation of receipt of the Exercise Notice to the Holder and the Company’s transfer agent for the Common Stock (the
 “Transfer Agent”). The Company shall deliver any objection to the Exercise Notice on or before the second (2nd)
Trading Day following the date on which the Company has received the Exercise Notice. On or before the second (2nd) Trading Day
following the date on which the Company has received the Exercise Notice, provided the Aggregate Exercise Price has been
received by the Company prior to such Trading Day (the “Share Delivery Date”), the Company shall, (X) provided
that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities
Transfer Program (the “FAST Program”) and so long as the certificates therefor are not required to bear a legend
regarding restriction on transferability, upon the request of the Holder, credit such aggregate number of shares of Common Stock to
which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC
through its Deposit Withdrawal Agent Commission system, or (Y), if the Transfer Agent is not participating in the FAST Program or if
the certificates are required to bear a legend regarding restriction on transferability, issue and dispatch by overnight courier to
the address specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the
Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon
delivery of the Exercise Notice and payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the
date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such
Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and
the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being
acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Trading Days after any
such submission and at its own expense, issue a new Warrant (in accordance with Section 7(d) of this Warrant) representing the right
to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of
Warrant Shares with respect to which this Warrant has been and/or is being exercised. The Company shall pay any and all taxes and
other expenses of the Company (including overnight delivery charges) that may be payable with respect to the issuance and delivery
of Warrant Shares upon exercise of this Warrant; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any Transfer (as defined below) involved in the registration of any certificates for Warrant
Shares or Warrants in a name other than that of the Holder or an affiliate thereof. The Holder shall be responsible for all other
tax liability that may arise as a result of holding or Transferring this Warrant or receiving Warrant Shares upon exercise
hereof.

 

(b)              
Exercise Price. For purposes of this Warrant, “Exercise Price” means $[•]2,
subject to adjustment as provided herein.

 

 

 

2 NTD: 125% of the
public offering price of the shares listed in the offering.

 

    -2-

     

    

 

(c)              
 Company’s Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue
to the Holder within five (5) Business Days of the Exercise Date a certificate for the number of shares of Common Stock to which the Holder
is entitled and register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account
with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and
if on or after such Trading Day the Holder purchases, or another Person purchases on the Holder’s behalf or for the Holder’s
account (in an open market transaction or otherwise), shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares
of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then
the Company shall, within three (3) Business Days after the Holder’s written request and in the Holder’s discretion, either
(i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for
the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver
such certificate (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a
certificate or certificates representing such Warrant Shares and pay cash to the Holder in an amount equal to the excess (if any) of the
Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Weighted Average Price (as reported by Bloomberg)
on the date of the event giving rise to the Company’s obligation to deliver such shares of Common Stock.

 

(d)              
Cashless Exercise. The Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making
the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect
instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following
formula (a “Cashless Exercise”):

 

Net Number = (A - B)*(X)

(A)

 

For purposes of the foregoing formula:

 

A = the Weighted Average Price for the
three (3) consecutive Trading Days ending on the date immediately preceding the date of the Exercise Notice.

 

B = the Exercise Price then in effect
for the applicable Warrant Shares at the time of such exercise.

 

X = the total number of shares with
respect to which this Warrant is then being exercised.

 

(e)              
Rule 144. For purposes of Rule 144(d) promulgated under the Securities Act of 1933, as amended, as in effect on the date
hereof, assuming the Holder is not an affiliate of the Company, it is intended that the Warrant Shares issued in a Cashless Exercise shall
be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the
Issuance Date.

 

    -3-

     

    

 

(f)               
 Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed.

 

(g)              
Beneficial Ownership. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right
to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s affiliates)
would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by such Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon
(i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its
affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). For purposes of this Warrant, in determining the number of outstanding shares of Common Stock,
the Holder may rely on the number of outstanding shares of Common Stock as reflected in the most recent of (1) the Company’s Annual
Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange
Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or the Transfer
Agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of
the Holder, the Company shall within two (2) Business Days confirm to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Maximum
Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (i) any such increase will not
be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such increase or decrease will
apply only to the Holder. The provisions of this paragraph shall not be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 1(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent
with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation.

 

2.                 
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall
be adjusted from time to time as follows:

 

(a)              
Voluntary Adjustment by Company. The Company may, but shall have no obligation to, at any time during the term of this Warrant
reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

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(b)              
 Adjustment upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

(c)              
Other Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights), then the Company’s
Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights
of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase the Exercise Price or decrease the
number of Warrant Shares as otherwise determined pursuant to this Section 2.

 

3.                 
RIGHTS UPON DISTRIBUTION OF ASSETS.

 

(a)              
If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the
Holders) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase
any security other than the Common Stock (including, without limitation, any distribution of cash, stock or other securities, property
or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction),
then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record
date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the
Weighted Average Price determined as of the record date mentioned above, and of which the numerator shall be such Weighted Average Price
on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness
so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either
case, the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so
distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned above.

 

4.                 
PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)               Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time prior to the Expiration Date the Company
grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro
rata to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if
the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or sale
of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be
determined for the grant, issue or sale of such Purchase Rights.

 

    -5-

     

    

 

(b)               Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in
writing (unless the Company is the Successor Entity) all of the obligations of the Company under this Warrant in accordance with the
provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Required Holders
and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each Holder of the
Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in
form and substance to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of
Common Stock reflected by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital
stock listed on an Eligible Market equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and reasonably
satisfactory to the Required Holders. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the
 “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall
assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as
the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation
that there shall be issued upon exercise of this Warrant at any time after the consummation of the Fundamental Transaction, in lieu
of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the exercise of the Warrant prior
to such Fundamental Transaction, such shares of the common stock or common shares (or its equivalent) of the Successor Entity
(including its Parent Entity) listed on an Eligible Market which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had this Warrant been converted immediately prior to such Fundamental Transaction, as adjusted in
accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the
consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities
or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company
shall make appropriate provision to ensure that the Holder will thereafter have the right to receive upon an exercise of this
Warrant at any time after the consummation of the Corporate Event but prior to the Expiration Date, in lieu of shares of Common
Stock (or other securities, cash, assets or other property) purchasable upon the exercise of this Warrant prior to such Corporate
Event, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon the happening of such Corporate Event had this
Warrant been exercised immediately prior to such Corporate Event. Any provision made pursuant to the preceding sentence shall be in
a form and substance reasonably satisfactory to the Required Holders. The provisions of this Section 4(b) shall apply similarly and
equally to successive Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the
exercise of this Warrant.

 

    -6-

     

    

 

(c)              
Applicability to Successive Transactions. The provisions of this Section shall apply similarly and equally to successive
Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant.

 

5.               
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate
of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, and will at all times in good faith comply with all the provisions of this Warrant and take all actions consistent with
effectuating the purposes of this Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the par
value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take
all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary
to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise
of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding (without regard
to any limitations on exercise).

 

6.                 
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in
such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of
share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely
in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote,
give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise
of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company.

 

7.                 
REISSUANCE OF WARRANTS.

 

(a)               Transfer
of Warrant. If this Warrant is to be Transferred, the Holder shall surrender this Warrant to the Company and deliver the
completed and executed Assignment Form, in the form attached hereto as Exhibit B, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request,
representing the right to purchase the number of Warrant Shares being Transferred by the Holder and, if less than the total number
of Warrant Shares then underlying this Warrant is being Transferred, a new Warrant (in accordance with Section 7(d)) to the Holder
representing the right to purchase the number of Warrant Shares not being Transferred.

 

    -7-

     

    

 

(b)              
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking
by the Holder to the Company in reasonable and customary form and, in the case of mutilation, upon surrender and cancellation of this
Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to
purchase the Warrant Shares then underlying this Warrant.

 

(c)              
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase
the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants
for fractional shares of Common Stock shall be given.

 

(d)              
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the
right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the
other new Warrants issued in connection with such issuance, do not exceed the number of Warrant Shares then underlying this Warrant),
(iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall
have the same rights and conditions as this Warrant.

 

8.                 
NOTICES. The Company shall provide Holder with prompt written notice of all actions taken pursuant to this Warrant.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in writing, will
be mailed (a) if within the domestic United States, by first-class registered or certified airmail, or nationally recognized overnight
express courier, postage prepaid, or by facsimile or e-mail or (b) if delivered from outside the United States, by International Federal
Express, facsimile or e-mail, and (c) will be deemed given (i) if delivered by first-class registered or certified mail domestic, three
(3) Business Days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one (1) Business Day after so mailed,
(iii) if delivered by International Federal Express, two (2) Business Days after so mailed and (iv) if delivered by facsimile or e-mail,
upon electronic confirmation of receipt, and will be delivered and addressed as follows:

 

(i)          
if to the Company, to:

 

Cariloha, Inc.

280 West 10200 South

Sandy, Utah 84070

(801) 562-3001

Attention: Chief Executive Officer

 

    -8-

     

    

 

with a copy to:

 

Holland & Hart LLP

555 17th Street, Suite 3200

Denver, Colorado 80202

(303) 295-8000

Attn: Amy Bowler, Esq.

 

(ii)         
if to the Holder, at the address of the Holder appearing on the books of the Company.

 

9.                 
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the
Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has
obtained the written consent of the Required Holders. Any such amendment shall apply to all Warrants and be binding upon all registered
holders of such Warrants.

 

10.             
GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. This Warrant shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without reference to the choice of law provisions thereof. The Company and,
by accepting this Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located
in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding
or judgment relating to or arising out of this Warrant and the transactions contemplated hereby. Service of process in connection with
any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for
the giving of notices under this Warrant. The Company and, by accepting this Warrant, the Holder, each irrevocably consents to the jurisdiction
of any such court in any such suit, action or proceeding and to the laying of venue in such court. The Company and, by accepting this
Warrant, the Holder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such
courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE HOLDER, HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

11.             
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall
not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not
form part of, or affect the interpretation of, this Warrant.

 

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12.              DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile or e-mail within two (2)
Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and
the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within five (5)
Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within
two (2) Business Days submit via facsimile or e-mail (a) the disputed determination of the Exercise Price to an independent,
reputable investment bank selected by the Company and approved by the Holder, which approval shall not be unreasonably withheld, or
(b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the
Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed determinations or
calculations. The prevailing party (which, for purposes of this Warrant, is the party whose determinations or calculations is
closest to those of the investment bank or the accountant, as the case may be) in any dispute resolved pursuant to this Section 12
shall be entitled to the full amount of all reasonable expenses, including all costs and fees paid or incurred in good faith, in
relation to the resolution of such dispute. Such investment bank’s or accountant’s determination or calculation, as the
case may be, shall be binding upon all parties absent demonstrable error.

 

13.             
REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or
other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company
to comply with the terms of this Warrant.

 

14.             
TRANSFER. Subject to applicable laws and the restrictions set forth in this Section 14, this Warrant may be Transferred
without the consent of the Company. The Holder agrees that, pursuant to the Lock-Up Period (as defined below) contained in Rule 5110(g)(1)
of the Financial Industry Regulatory Authority, Inc. (“FINRA”), it will not (a) Transfer this Warrant (including any
Warrant Shares issued or issuable hereunder) other than to a bona fide officer or partner of the Holder or any selected dealer in connection
with the offering contemplated by the Underwriting Agreement, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause
this Warrant or any Warrant Shares issued or issuable hereunder to be the subject of any hedging, short sale, derivative, put or call
transaction that would result in the effective economic disposition of this Warrant or any Warrant Shares issued or issuable hereunder,
except as provided for in FINRA Rule 5110(g)(2). As used herein, the term “Lock-Up Period” means the period beginning
on the date that the Registration Statement is declared effective by the Securities and Exchange Commission (the “Effective Date”)
and ending on the one hundred eighty (180) day anniversary of the Effective Date. In addition, notwithstanding the other terms of this
Warrant or any agreement between the Company and the Holder, the Holder agrees that, consistent with FINRA Rule 5110(g)(8): (i) this Warrant
may not be exercised more than five (5) years from the commencement of sales of the public offering contemplated by the Underwriting Agreement;
(ii) the Holder shall not have any registration rights (including demand or piggyback rights) with respect to the Warrant or the Warrant
Shares; (iii) this Warrant may not have anti-dilution terms that allow the Holder and related persons to receive more shares or to exercise
at a lower price than originally agreed upon at the time of the public offering, when the public shareholders have not been proportionally
affected by a stock split, stock dividend, or other similar event; and (iv) this Warrant may not have anti-dilution terms that allow the
Holder and related persons to receive or accrue cash dividends prior to the exercise or conversion of this Warrant. As used herein,

 

    -10-

     

    

 

“Transfer” means the sale,
transfer, assignment, pledge, hypothecation or other transfer of the Warrant and the Warrant Shares.

 

15.             
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)              
“Bloomberg” means Bloomberg Financial Markets.

 

(b)              
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City
of New York are authorized or required by law to remain closed.

 

(c)              
“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the
last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg,
or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade
price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New
York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last
trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported
by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of
the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “pink sheets” by
Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be,
of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All such determinations
to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable
calculation period.

 

(d)              
“Common Stock” means (i) the Company’s shares of Common Stock, par value $0.01 per share, and (ii) any
share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

(e)              
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

 

(f)               
“Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ Global
Market or The NASDAQ Global Select Market.

 

(g)              
“Expiration Date” means the fifth (5th) anniversary of the Exercisability Date or, if such date falls on a day
other than a Trading Day or on which trading does not take place on the Principal Market, or, if the Principal Market is not the principal
trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then
traded (a “Holiday”), the next date that is not a Holiday.

 

    -11-

     

    

 

(h)              
 “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions,
(i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person (but excluding a migratory
merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company), or (ii) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow another
Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the
Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person
whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held
by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock
purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Common Stock, or (vi) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% or more of the aggregate ordinary voting
power represented by issued and outstanding Common Stock.

 

(i)                
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

(j)                
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person
or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental
Transaction.

 

(k)              
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

(l)                
“Principal Market” means The NASDAQ Capital Market.

 

(m)            
“Required Holders” means, as of any date, the holders of at least a majority of the Warrants outstanding as
of such date.

 

(n)              
“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting
from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental
Transaction shall have been entered into.

 

(o)               “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading
during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

    -12-

     

    

 

(p)              
“Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal
Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal
Market publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic
bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market
publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported
for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of
the market makers for such security as reported in the “pink sheets” by OTC Markets Group, Inc. If the Weighted Average Price
cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of such security on
such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable
to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 12 with the term “Weighted
Average Price” being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

[Signature Page Follows]

 

    -13-

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	CARILOHA, INC.
	 	 
	 	By:
	 	Name:
	 	Title:  

 

[Signature Page to Underwriter Warrant]

 

     

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER TO
EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

CARILOHA, INC.

 

The undersigned holder hereby exercises the right
to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of Cariloha, Inc., a Delaware corporation
(the “Company”), evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.       Form of Exercise Price.
The Holder intends that payment of the Exercise Price shall be made as:

 

____________a “Cash Exercise” with respect to _________________
Warrant Shares; and/or

 

____________a “Cashless Exercise” with respect to
_______________ Warrant Shares.

 

2.       Payment of Exercise
Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms
of the Warrant.

 

3.       Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant and, after delivery
of such Warrant Shares, _____________ Warrant Shares remain subject to the Warrant.

 

Date: _______________ __, ______

 

Name of Registered Holder

 

	By:	 	 
	 	Name:	 
	 	Title:  	 

 

    A-1

     

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

CARILOHA, INC.

 

(To assign the foregoing Warrant, execute this form and supply required
information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

	Name:	 
	 	
	 	(Please Print)
	Address:	 
	 	
	 	(Please Print)
	Dated: _______________ __, ______	 
	 	 
	Holder’s Signature:	 
	 	 
	Holder’s Address:	 

 

NOTE: The signature to this Assignment Form must correspond with the
name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations and
those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    B-1Exhibit 10.2

 

Cariloha, Inc.

2022 Incentive Award Plan

 

		I.	Purposes of the Plan. Cariloha, Inc., a Delaware corporation (the “Company”),
establishes this 2022 Incentive Award Plan (the “Plan”) to promote the interests of the Company and its shareholders
by providing employees, non-employee directors, consultants, and other selected service providers of the Company, who are largely responsible
for the management, growth, and protection of the business of the Company, with incentives and rewards to encourage them to continue in
the service of the Company.

 

		II.	Definitions. As used in the Plan or in any instrument governing the terms of any award granted
under the Plan, the following definitions apply to the terms indicated below:

 

		A.	“Award Agreement” means a written agreement, in a form determined by the Committee
from time to time, entered into by each Participant and the Company, evidencing the grant of an Incentive Award under the Plan.

 

		B.	“Board of Directors” means the Board of Directors of the Company.

 

		C.	“Cash Incentive Award” means an award granted to a Participant pursuant to Section VIII
of the Plan.

 

		D.	“Change in Control” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events; provided, however, to the extent necessary to avoid adverse personal
income tax consequences to the Participant in connection with an Incentive Award, also constitutes a change in control event within the
meaning of Treasury Regulation section 1.409A-3(i)(5):

 

		1.	any Person becomes the owner, directly or indirectly, of securities of the Company representing more than
50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or
similar transaction, excluding incremental acquisitions by Persons owning, directly or indirectly, greater than 50% of the combined voting
power as of the Effective Date. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of
the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company
by an investor, any affiliate thereof or any other Person that acquires the Company’s securities in a transaction or series of related
transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities, or (C) solely
because the level of ownership held by any Person (the “Subject Person”) exceeds the designated percentage threshold of the
outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number
of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition
of voting securities by the Company, and after such share acquisition, the Subject Person becomes the owner of any additional voting securities
that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities
owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

 

    1

     

    

 

		2.	there is consummated a merger, consolidation or similar transaction involving (directly or indirectly)
the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company
immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than 50%
of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more
than 50% of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction,
in each case in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately
prior to such transaction;

 

		3.	there is consummated a sale, lease, exclusive license or other disposition of all or substantially all
of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially
all of the consolidated assets of the Company and its Subsidiaries to an entity, more than 50% of the combined voting power of the voting
securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding
voting securities of the Company immediately prior to such sale, lease, license or other disposition; or

 

		4.	individuals who, on the date the Plan is adopted by the Board, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment
or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

 

Notwithstanding the foregoing or any other
provision of this Plan, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively
for the purpose of changing the domicile of the Company.

 

		E.	“Code” means the Internal Revenue Code of 1986, as amended from time to time, and all
regulations, interpretations, and administrative guidance issued thereunder.

 

		F.	“Committee” means the Compensation Committee of the Board of Directors or such other
committee as the Board of Directors shall appoint from time to time to administer the Plan and to otherwise exercise and perform the authority
and functions assigned to the Committee under the terms of the Plan.

 

    2

     

    

 

		G.	“Common Stock” means the Company’s Class A Common Stock, $0.0001 par value
per share, or any other security into which the Class A Common Stock shall be changed pursuant to the adjustment provisions of Section IX.

 

		H.	“Company” means Cariloha, Inc., a Delaware corporation (and any successor thereto).

 

		I.	“Deferred Compensation Plan” means any plan, agreement, or arrangement maintained by
the Company from time to time that provides opportunities for deferral of compensation.

 

		J.	“Effective Date” means the date that is immediately prior to the date of the underwriting
agreement between the Company and the underwriter(s) managing the initial public offering of the Company’s Common Stock, pursuant
to which the Common Stock is priced for the initial public offering, provided that the Plan is approved by the Company’s shareholders
prior to such initial public offering date.

 

		K.	“Employment” means the period during which an individual is classified or treated by
the Company as an employee, non-employee director, consultant, or other service provider of the Company, as applicable.

 

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

 

		M.	“Fair Market Value” means, with respect to a share of Common Stock, as of the applicable
date of determination or if the market is not open for trading on such date, the immediately preceding day on which the market is open
for trading, the closing price as reported on the principal securities exchange on which shares of Common Stock are then listed or admitted
to trading (or if shares of Common Stock are then principally traded on a national securities exchange, in the reported “composite
transactions” for such exchange). In the event that the price of a share of Common Stock shall not be so reported, the Fair Market
Value of a share of Common Stock shall be determined by the Committee in its sole discretion.

 

		N.	“Incentive Award” means one or more Stock Incentive Awards and/or Cash Incentive Awards.

 

		O.	“Option” means a stock option to purchase shares of Common Stock granted to a Participant
pursuant to Section VI.

 

		P.	“Other Stock-Based Award” means an award granted to a Participant pursuant to Section VII.

 

		Q.	“Participant” means an employee, consultant, or director of the Company who is eligible
to participate in the Plan and to whom one or more Incentive Awards have been granted pursuant to the Plan and have not been fully settled
or cancelled and, following the death of any such Person, his successors, heirs, executors, and administrators, as the case may be.

 

    3

     

    

 

		R.	“Person” means a “person” as such term is used in section 13(d) and
14(d) of the Exchange Act, including any “group” within the meaning of section 13(d)(3) under the Exchange Act.

 

		S.	“Plan” means this 2022 Incentive Award Plan, as it may be amended from time to time.

 

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

 

		U.	“Stock Incentive Award” means an Option or Other Stock-Based Award granted pursuant
to the terms of the Plan.

 

		V.	“Subsidiary” means any “subsidiary” within the meaning of Rule 405
under the Securities Act.

 

		W.	“Voting Power” means the number of votes available to be cast (determined by reference
to the maximum number of votes entitled to be cast by the holders of Voting Securities, or by the holders of any Voting Securities for
which other Voting Securities may be convertible, exercisable, or exchangeable, upon any matter submitted to shareholders where the holders
of all Voting Securities vote together as a single class) by the holders of Voting Securities.

 

		X.	“Voting Securities” means any securities or other ownership interests of an entity
entitled, or which may be entitled, to matters submitted to Persons holding such securities or other ownership interests in such entity
generally (whether or not entitled to vote in the general election of directors), or securities or other ownership interests which are
convertible into, or exercisable in exchange for, such Voting Securities, whether or not subject to the passage of time or any contingency.

 

		III.	Stock Subject to the Plan and Limitations on Cash Incentive Awards.

 

		A.	The maximum number of shares of Common Stock that may be covered by Incentive Awards granted under the
Plan shall not exceed the aggregate number of shares of Common Stock subject to the Plan as set forth on Schedule A. Such aggregate number
of shares of Common Stock will automatically increase on January 1 of each year for a period of ten years commencing on January 1,
2023 and ending on (and including) January 1, 2032, in an amount equal to the percentage set forth on Schedule A of the total number
of shares of Common Stock outstanding on the last day of the preceding calendar year; provided, however that the Board may act prior to
the effective date of any such annual increase to provide that the increase for such year will be a lesser number of shares of Common
Stock. Out of such number, the maximum number of shares of Common Stock that may be covered by Options that are designated as “incentive
stock options” within the meaning of section 422 of the Code shall not exceed the maximum number of shares of Common Stock for all
Incentive Awards as stated above in this Section III.A before giving effect to the annual increases. Shares of Common
Stock issued under the Plan may be authorized and unissued shares, treasury shares, shares purchased by the Company in the open market,
or any combination of the preceding categories as the Committee determines in its sole discretion.

 

    4

     

    

 

		B.	The maximum number of shares referred to in the preceding paragraph shall be subject to adjustment as
provided in Section IX and the following provisions of this Section III.

 

		C.	Shares of Common Stock covered by Incentive Awards shall only be counted as used to the extent they are
actually issued and delivered to a Participant (or such Participant’s permitted transferees as described in the Plan) pursuant to
the Plan; provided, however, that if shares of Common Stock are withheld to pay the exercise price of an Option or to satisfy any tax
withholding requirement in connection with an Incentive Award, the shares issued (if any) in connection with such settlement, and the
shares withheld, will be deemed delivered for purposes of determining the number of shares of Common Stock that are available for delivery
under the Plan. If shares of Common Stock are issued subject to conditions which may result in the forfeiture, cancellation or return
of such shares to the Company, any portion of the shares forfeited, cancelled, or returned shall be treated as not issued pursuant to
the Plan. If shares of Common Stock are not delivered in connection with an Incentive Award because the Incentive Award is settled in
cash rather than in Common Stock, no shares of Common Stock shall be counted as issued under the Plan. In addition, if shares of Common
Stock owned by a Participant (or such Participant’s permitted transferees as described in the Plan) are tendered (either actually
or through attestation) to the Company in payment of any obligation in connection with an Incentive Award, the number of shares tendered
shall be added to the number of shares of Common Stock that are available for delivery under the Plan.

 

		D.	Shares of Common Stock covered by Incentive Awards granted pursuant to the Plan in connection with the
assumption, replacement, conversion, or adjustment of outstanding equity-based awards in the context of a corporate acquisition or merger
shall not count as used under the Plan for purposes of this Section III.

 

		E.	Beginning with the calendar year following the calendar year in which the Effective Date occurs, the sum
of any cash compensation and the aggregate grant date fair value (determined as of the date of the grant under ASC Topic 718, or any successor
thereto) of all Incentive Awards granted to a non-employee director as compensation for services as a non-employee director may not exceed
the dollar amount set forth on Schedule A for the first year of service as a non-employee director and the dollar amount set forth on
Schedule A for each year thereafter.

 

		IV.	Administration of the Plan.

 

		A.	The Plan shall be administered by a Committee of the Board of Directors consisting of two or more persons,
each of whom qualifies as a “non-employee director” (within the meaning of Rule 16b-3 promulgated under section 16 of
the Exchange Act) and as “independent” as required by any security exchange on which the Common Stock is listed, in each case
if and to the extent required by applicable law or necessary to meet the requirements of such rule, section, or listing requirement at
the time of determination. The Committee shall, consistent with the terms of the Plan, from time to time designate those individuals who
shall be granted Incentive Awards under the Plan and the amount, type, and other terms and conditions of such Incentive Awards. All of
the powers and responsibilities of the Committee under the Plan may be delegated by the Committee, in writing, to any subcommittee thereof,
in which case the acts of such subcommittee shall be deemed to be acts of the Committee hereunder. The Committee may also from time to
time authorize a subcommittee consisting of one or more members of the Board of Directors (including members who are employees of the
Company) or employees of the Company to grant Incentive Awards to persons who are not “executive officers” of the Company
(within the meaning of Rule 16a-1 under the Exchange Act), subject to such restrictions and limitations as the Committee may specify
and to the requirements of section 157 of the Delaware General Corporation Law. Notwithstanding the foregoing, the Plan shall be administered
by the Board with respect to Incentive Awards to non-employee directors.

 

    5

     

    

 

		B.	The Committee shall have full discretionary authority to administer the Plan, including discretionary
authority to interpret and construe any and all provisions of the Plan and any Award Agreement thereunder, and to adopt, amend, and rescind
from time to time such rules and regulations for the administration of the Plan, including rules and regulations related to
sub-plans established for the purpose of satisfying applicable foreign laws and/or qualifying for preferred tax treatment under applicable
foreign tax laws, as the Committee may deem necessary or appropriate. Decisions of the Committee shall be final, binding, and conclusive
on all parties. For the avoidance of doubt, the Committee may exercise all discretion granted to it under the Plan in a non-uniform manner
among Participants.

 

		C.	The Committee may delegate the administration of the Plan to one or more officers or employees of the
Company, and such administrator(s) may have the authority to execute and distribute Award Agreements, to maintain records relating
to Incentive Awards, to process or oversee the issuance of Common Stock under Incentive Awards, to interpret and administer the terms
of Incentive Awards, and to take such other actions as may be necessary or appropriate for the administration of the Plan and of Incentive
Awards under the Plan, provided that in no case shall any such administrator be authorized (i) to grant Incentive Awards under the
Plan (except in connection with any delegation made by the Committee pursuant to paragraph A above), (ii) to take any action inconsistent
with section 409A of the Code or (iii) to take any action inconsistent with applicable provisions of the Delaware General Corporation
Law. Any action by any such administrator within the scope of its delegation shall be deemed for all purposes to have been taken by the
Committee and, except as otherwise specifically provided, references in this Plan to the Committee shall include any such administrator.
The Committee and, to the extent it so provides, any subcommittee, shall have sole authority to determine whether to review any actions
and/or interpretations of any such administrator, and if the Committee shall decide to conduct such a review, any such actions and/or
interpretations of any such administrator shall be subject to approval, disapproval, or modification by the Committee.

 

    6

     

    

 

		D.	On or after the date of grant of an Incentive Award under the Plan, the Committee may (i) accelerate
the date on which any such Incentive Award becomes vested, exercisable, or transferable (but only in connection with a Participant’s
death or disability), (ii) extend the term of any such Incentive Award, including, without limitation, extending the period following
a termination of a Participant’s Employment during which any such Incentive Award may remain outstanding, (iii) waive any conditions
to the vesting, exercisability, or transferability, as the case may be, of any such Incentive Award or (iv) provide for the payment
of dividends or dividend equivalents with respect to any such Incentive Award; provided, that the Committee shall not have any such authority
to the extent that the grant of such authority would cause any tax to become due under section 409A of the Code.

 

		E.	Notwithstanding anything herein to the contrary, the Company shall not reprice any stock option (within
the meaning of Nasdaq Listing Rule 5635(c) and any other formal or informal guidance issued by Nasdaq) without the approval
of the shareholders of the Company, nor shall the Company purchase any underwater options for cash.

 

		F.	No member of the Committee shall be liable for any action, omission, or determination relating to the
Plan, and the Company shall indemnify and hold harmless each member of the Committee and each other director or employee of the Company
to whom any duty or power relating to the administration or interpretation of the Plan has been delegated, against any cost or expense
(including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out
of any action, omission, or determination relating to the Plan, unless, in either case, such action, omission, or determination was taken
or made by such member, director, or employee in bad faith and without reasonable belief that it was in the best interests of the Company.

 

		G.	The Company shall pay any amount payable with respect to an Incentive Award in accordance with the terms
of such Incentive Award, provided that the Committee may, in its discretion, defer the payment of amounts payable with respect to an Incentive
Award subject to and in accordance with the terms of a Deferred Compensation Plan.

 

		V.	Eligibility. The Persons who shall be eligible to receive Incentive Awards pursuant to the Plan
shall be those employees, non-employee directors, consultants, and other selected service providers of the Company whom the Committee
shall select from time to time. Each Incentive Award granted under the Plan shall be evidenced by an Award Agreement.

 

		VI.	Options. The Committee may from time to time grant Options on such terms as it shall determine,
subject to the terms and conditions set forth in the Plan. The Award Agreement shall clearly identify such Option as either an “incentive
stock option” within the meaning of section 422 of the Code or as a non-qualified stock option.

 

    7

     

    

 

		A.	Exercise Price. The exercise price per share of Common Stock covered by any Option shall be not
less than one hundred percent of the Fair Market Value of a share of Common Stock on the date on which such Option is granted, other than
assumptions in accordance with a corporate acquisition or merger as described in Section III.

 

		B.	Term and Exercise of Options.

 

		1.	Each Option shall become vested and exercisable on such date or dates, during such period and for such
number of shares of Common Stock as shall be determined by the Committee on or after the date such Option is granted; provided,
however that no Option shall be exercisable after the expiration of ten years from the date such Option is granted; and, provided,
further, that each Option shall be subject to earlier termination, expiration, or cancellation as provided in the Plan or the Award
Agreement.

 

		2.	Each Option shall be exercisable in whole or in part; provided, however that no partial
exercise of an Option shall be for an aggregate exercise price of less than $1,000. The partial exercise of an Option shall not cause
the expiration, termination, or cancellation of the remaining portion thereof.

 

		3.	An Option shall be exercised by such methods and procedures as the Committee determines from time to time,
including without limitation through net physical settlement or other method of cashless exercise.

 

		C.	Special Rules for Incentive Stock Options.

 

		1.	The aggregate Fair Market Value of shares of Common Stock with respect to which “incentive stock
options” (within the meaning of section 422 of the Code) are exercisable for the first time by a Participant during any calendar
year under the Plan and any other stock option plan of the Company or any of its “subsidiaries” (within the meaning of section
424 of the Code) shall not exceed $100,000. Such Fair Market Value shall be determined as of the date on which each such stock option
is granted. In the event that the aggregate Fair Market Value of shares of Common Stock with respect to such incentive stock options exceeds
$100,000, then incentive stock options granted hereunder to such Participant shall, to the extent and in the order required by regulations
promulgated under the Code (or any other authority having the force of regulations), automatically be deemed to be non-qualified stock
options, but all other terms and provisions of such stock options shall remain unchanged. In the absence of such regulations (and authority),
or in the event such regulations (or authority) require or permit a designation of the Options which shall cease to constitute incentive
stock options, incentive stock options granted hereunder shall, to the extent of such excess and in the order in which they were granted,
automatically be deemed to be non-qualified stock options, but all other terms and provisions of such stock options shall remain unchanged.

 

    8

     

    

 

		2.	Incentive stock options may only be granted to individuals who are employees of the Company. No incentive
stock option may be granted to an individual if, at the time of the proposed grant, such individual owns stock possessing more than ten
percent of the total combined Voting Power of all classes of stock of the Company or any of its “subsidiaries” (within the
meaning of section 424 of the Code), unless (i) the exercise price of such incentive stock option is at least 110 percent of the
Fair Market Value of a share of Common Stock at the time such incentive stock option is granted and (ii) such incentive stock option
is not exercisable after the expiration of five years from the date such incentive stock option is granted.

 

		3.	Neither the Company nor the Committee will be liable to a Participant, or any other party, if an Option fails or ceases to qualify
as an incentive stock option.

 

		VII.	Other Stock-Based Awards. The Committee may from time to time grant equity-based or equity-related
awards not otherwise described herein in such amounts and on such terms as it shall determine, subject to the terms and conditions set
forth in the Plan. Without limiting the generality of the preceding sentence, each such Other Stock-Based Award may (i) involve the
transfer of actual shares of Common Stock to Participants, either at the time of grant or thereafter, or payment in cash or otherwise
of amounts based on the value of shares of Common Stock, (ii) be subject to performance-based and/or service-based conditions, (iii) be
in the form of stock appreciation rights (which, if any, shall have an exercise price of no less than 100% of the Fair Market Value of
the underlying shares on the date of grant), phantom stock, restricted stock, restricted stock units, performance shares, deferred share
units, or share-denominated performance units and (iv) be designed to comply with applicable laws of jurisdictions other than the
United States; provided, that each Other Stock-Based Award shall be denominated in, or shall have a value determined by reference
to, a number of shares of Common Stock that is specified at the time of the grant of such Incentive Award.

 

		VIII.	Cash Incentive Awards. The Committee may from time to time grant Cash Incentive Awards on such
terms as it shall determine. Cash Incentive Awards may be settled in cash or in other property, including shares of Common Stock, provided
that the term “Cash Incentive Award” shall exclude any Option or Other Stock-Based Award.

 

		IX.	Adjustment Upon Certain Changes. Subject to any action by the shareholders of the Company required
by law, applicable tax rules or the rules of any exchange on which shares of common stock of the Company are listed for trading:

 

		A.	Shares Available for Grants. In the event of any change in the number of shares of Common Stock
outstanding by reason of any stock dividend or split, recapitalization, merger, consolidation, combination, or exchange of shares or similar
corporate change, the maximum aggregate number or type of shares of Common Stock with respect to which the Committee may grant Incentive
Awards, the maximum number of shares of Common Stock that may be covered by Options that are designated as “incentive stock options”
within the meaning of section 422 of the Code and the maximum aggregate number of shares of Common Stock with respect to which the Committee
may grant Incentive Awards to any individual Participant in any year and to any non-employee director shall be appropriately adjusted
or substituted by the Committee. In the event of any change in the type or number of shares of Common Stock of the Company outstanding
by reason of any other event or transaction, the Committee shall, to the extent deemed appropriate by the Committee, make such adjustments
to the type or number of shares of Common Stock with respect to which Incentive Awards may be granted.

 

    9

     

    

 

		B.	Increase or Decrease in Issued Shares Without Consideration. In the event of any increase or decrease
in the number of issued shares of Common Stock resulting from a subdivision or consolidation of shares of Common Stock or the payment
of a stock dividend (but only on the shares of Common Stock), or any other increase or decrease in the number of such shares effected
without receipt or payment of consideration by the Company, the Committee shall, in the manner deemed appropriate by the Committee, equitably
adjust the type or number of shares of Common Stock subject to each outstanding Incentive Award, the exercise price per share of Common
Stock of each such Incentive Award, and any other terms of such Incentive Award that are affected by the event.

 

		C.	Certain Mergers and Other Transactions.

 

		1.	In the event of any merger, consolidation, or similar transaction as a result of which the holders of
shares of Common Stock receive consideration consisting exclusively of securities of the surviving corporation in such transaction, the
Committee shall, to the extent deemed appropriate by the Committee, adjust each Incentive Award outstanding on the date of such merger
or consolidation so that it pertains and applies to the securities which a holder of the number of shares of Common Stock subject to such
Incentive Award would have received in such merger or consolidation.

 

		2.	In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially
all of the Company’s assets (on a consolidated basis), (iii) a merger, consolidation or similar transaction involving the Company
in which the holders of shares of Common Stock receive securities and/or other property, including cash, the Committee shall, to the extent
deemed appropriate by the Committee, have the power to:

 

		a.	cancel, effective immediately prior to the occurrence of such event, each Incentive Award (whether or
not then exercisable or vested), and, in full consideration of such cancellation, pay to the Participant to whom such Incentive Award
was granted an amount in cash, for each share of Common Stock subject to such Incentive Award, equal to the value, as determined by the
Committee, of such Incentive Award, provided that with respect to any outstanding Option such value shall be equal to the excess of (A) the
value, as determined by the Committee, of the property (including cash) received by the holder of a share of Common Stock as a result
of such event over (B) the exercise price of such Option; or

 

    10

     

    

 

		b.	provide for the exchange of each Incentive Award (whether or not then exercisable or vested) for an Incentive
Award with respect to (A) some or all of the property which a holder of the number of shares of Common Stock subject to such Incentive
Award would have received in such transaction or (B) securities of the acquiror or surviving entity and, incident thereto, make an
equitable adjustment as determined by the Committee in the exercise price of the Incentive Award, or the number of shares or amount of
property subject to the Incentive Award or provide for a payment (in cash or other property) to the Participant to whom such Incentive
Award was granted in partial consideration for the exchange of the Incentive Award.

 

		D.	Other Changes. In the event of any change in the capitalization of the Company, corporate change,
corporate transaction, or other event other than those specifically referred to in the preceding paragraphs of this Section IX,
the Committee shall, to the extent deemed appropriate by the Committee, make such adjustments in the number and class of shares subject
to Incentive Awards outstanding on the date on which such change occurs and in such other terms of such Incentive Awards as the Committee
deems appropriate.

 

		E.	Cash Incentive Awards. In the event of any transaction or event described in this Section IX,
the Committee shall, to the extent deemed appropriate by the Committee, make such adjustments in the terms and conditions of any Cash
Incentive Award as the Committee deems appropriate.

 

		F.	No Other Rights. Except as expressly provided in the Plan or any Award Agreement, no Participant
shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividends or dividend
equivalents, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger, or consolidation
of the Company or any other corporation. Except as expressly provided in the Plan, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number of shares or amount of other property subject to, or the terms related to, any Incentive Award.

 

		G.	Savings Clause. No provision of this Section IX shall be given effect to the
extent that such provision would cause any tax to become due under section 409A of the Code.

 

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		X.	Change in Control; Termination of Employment.

 

		A.	Change in Control. The consequences of the termination of employment of a Participant in connection
with a Change in Control shall be set forth, if at all, in the Award Agreement (or an applicable employment agreement) of the Participant
as determined in the sole discretion of the Company. Notwithstanding the foregoing and except to the extent the Committee specifically
established otherwise in an applicable Award Agreement (or applicable employment agreement), and except as provided in Section IV.C,
in the event of a Change in Control, unless provision is made in connection with the Change in Control for assumption or continuation
of Incentive Awards previously granted or substitution of such Incentive Awards for new awards covering shares of a successor corporation
or its “parent corporation” (as defined in Section 424(e) of the Code) or “subsidiary corporation” (as
defined in Section 424(f) of the Code) with appropriate adjustments as to the number and kinds of shares and, if applicable,
exercise prices and performance goals, in each case, that the Committee determines shall preserve the material terms and conditions of
such Incentive Awards as in effect immediately prior to the Change in Control (including with respect to the vesting schedules, the intrinsic
value of the awards (if any) as of the Change in Control, the difficulty of achieving performance goals (if applicable) and transferability
of the shares underlying such Incentive Awards), immediately prior to the occurrence of a Change in Control, any Incentive Awards that
are still outstanding following such Change in Control shall become fully vested and exercisable and all restrictions on such Incentive
Awards shall lapse as of the date of the Change in Control.

 

With respect to the vesting of Incentive
Awards that will accelerate upon the occurrence of a Change in Control pursuant to this paragraph (A) and that have multiple vesting
levels depending on the level of performance, unless otherwise provided in the Award Agreement or unless otherwise provided by the Board,
the vesting of such Incentive Awards will accelerate at 100% of the target level upon the occurrence of the Change in Control in which
the Awards are not assumed in accordance with the previous paragraph.

 

		B.	Termination of Employment. The Award Agreement shall specify the consequences with respect to such
Incentive Awards of the termination of Employment of the Participant holding the Incentive Awards.

 

		1.	With respect to any Incentive Awards subject to section 409A of the Code, termination of Employment shall
mean a separation from service within the meaning of section 409A of the Code.

 

		2.	With respect to any Incentive Awards not subject to section 409A of the Code:

 

		a.	Termination of Employment shall mean a separation from service within the meaning of section 409A of the
Code, unless the Participant is retained as a consultant pursuant to a written agreement and such agreement provides otherwise. Without
limiting the generality of the foregoing, the Committee shall determine whether an authorized leave of absence, or absence in military
or government service, shall constitute termination of Employment, provided that a Participant who is an employee will not be deemed to
cease employment in the case of any leave of absence approved by the Company.

 

    12

     

    

 

		b.	A Participant who ceases to be an employee of the Company but continues, or simultaneously commences,
services as a director of the Company shall not be deemed to have had a termination of Employment for purposes of the Plan.

 

		XI.	Rights Under the Plan. No Person shall have any rights as a shareholder with respect to any shares
of Common Stock covered by or relating to any Incentive Award until the date of the issuance of such shares on the books and records of
the Company. Except as otherwise expressly provided in Section IX hereof, no adjustment of any Incentive Award shall
be made for dividends or other rights for which the record date occurs prior to the date of such issuance. Nothing in this Section XI
is intended, or should be construed, to limit authority of the Committee to cause the Company to make payments based on the dividends
that would be payable with respect to any share of Common Stock if it were issued or outstanding, or from granting rights related to such
dividends.

 

The Company shall not have any obligation
to establish any separate fund or trust or other segregation of assets to provide for payments under the Plan. To the extent any person
acquires any rights to receive payments hereunder from the Company, such rights shall be no greater than those of an unsecured creditor.

 

		XII.	No Special Employment Rights; No Right to Incentive Award.

 

		A.	Nothing contained in the Plan or any Award Agreement shall confer upon any Participant any right with
respect to the continuation of his or her Employment by the Company or interfere in any way with the right of the Company at any time
to terminate such Employment or to increase or decrease the compensation of the Participant from the rate in existence at the time of
the grant of an Incentive Award.

 

		B.	No person shall have any claim or right to receive an Incentive Award hereunder. The Committee’s
granting of an Incentive Award to a Participant at any time shall neither require the Committee to grant an Incentive Award to such Participant
or any other Participant or other person at any time nor preclude the Committee from making subsequent grants to such Participant or any
other Participant or other person.

 

		XIII.	Securities Matters.

 

		A.	The Company shall be under no obligation to affect the registration pursuant to the Securities Act of
any shares of Common Stock to be issued hereunder or to effect similar compliance under any state or local laws. Notwithstanding anything
herein to the contrary, the Company shall not be obligated to cause to be issued shares of Common Stock pursuant to the Plan unless and
until the Company is advised by its counsel that the issuance is in compliance with all applicable laws, regulations of governmental authority,
and the requirements of any securities exchange on which shares of Common Stock are traded. The Committee may require, as a condition
to the issuance of shares of Common Stock pursuant to the terms hereof, that the recipient of such shares make such covenants, agreements,
and representations, and that any related certificates representing such shares bear such legends, as the Committee, in its sole discretion,
deems necessary or desirable.

 

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		B.	The exercise or settlement of any Incentive Award (including, without limitation, any Option) granted
hereunder shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of shares
of Common Stock pursuant to such exercise is in compliance with all applicable laws, regulations of governmental authority and the requirements
of any securities exchange on which shares of Common Stock are traded. The Company may, in its sole discretion, defer the effectiveness
of any exercise or settlement of an Incentive Award granted hereunder in order to allow the issuance of shares pursuant thereto to be
made pursuant to registration or an exemption from registration or other methods for compliance available under federal or state or local
securities laws. The Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise or settlement
of an Incentive Award granted hereunder. During the period that the effectiveness of the exercise of an Incentive Award has been deferred,
the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.

 

		XIV.	Withholding Taxes.

 

		A.	Cash Remittance. Whenever withholding tax obligations are incurred in connection with any Incentive
Award, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy federal,
state, and local withholding tax requirements, if any, attributable to such event. In addition, upon the exercise or settlement of any
Incentive Award in cash, or the making of any other payment with respect to any Incentive Award (other than in shares of Common Stock),
the Company shall have the right to withhold from any payment required to be made pursuant thereto an amount sufficient to satisfy the
federal, state, and local withholding tax requirements, if any, attributable to such exercise, settlement, or payment.

 

		B.	Stock Remittance. If permitted in an Award Agreement, at the election of the Participant, subject
to the approval of the Committee, whenever withholding tax obligations are incurred in connection with any Incentive Award, the Participant
may tender to the Company (including by attestation) a number of shares of Common Stock having a Fair Market Value at the tender date
determined by the Committee to be sufficient to satisfy the minimum federal, state, and local withholding tax requirements, if any, attributable
to such event. Such election shall satisfy the Participant’s obligations under paragraph A above, if any.

 

    14

     

    

 

		C.	Stock Withholding. If permitted in an Award Agreement (which may specify that stock withholding
is mandatory or that it is at the election of the Participant subject to the approval of the Committee), whenever withholding tax obligations
are incurred in connection with any Incentive Award, the Company shall withhold a number of such shares having a Fair Market Value determined
by the Committee to be sufficient to satisfy the minimum federal, state, and local withholding tax requirements, if any, attributable
to such event. Such election shall satisfy the Participant’s obligations under paragraph A above, if any.

 

		XV.	No Obligation to Exercise. The grant to a Participant of an Incentive Award shall impose no obligation
upon such Participant to exercise such Incentive Award.

 

		XVI.	Transfers. Incentive Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of a Participant,
only by the Participant; provided, however that the Committee may permit Options or other Incentive Awards that are not
incentive stock options to be sold, pledged, assigned, hypothecated, transferred, or disposed of, on a general or specific basis, subject
to such conditions and limitations as the Committee may determine. Upon the death of a Participant, outstanding Incentive Awards granted
to such Participant may be exercised only by the executors or administrators of the Participant’s estate or by any person or persons
who shall have acquired such right to exercise by will or by the laws of descent and distribution. No transfer by will or the laws of
descent and distribution of any Incentive Award, or the right to exercise any Incentive Award, shall be effective to bind the Company
unless the Committee shall have been furnished with (a) written notice thereof and with a copy of the will and/or such evidence as
the Committee may deem necessary to establish the validity of the transfer and (b) an agreement by the transferee to comply with
all the terms and conditions of the Incentive Award that are or would have been applicable to the Participant and to be bound by the acknowledgements
made by the Participant in connection with the grant of the Incentive Award.

 

		XVII.	Expenses and Receipts. The expenses of the Plan shall be paid by the Company. Any proceeds received
by the Company in connection with any Incentive Award will be used for general corporate purposes.

 

		XVIII.	Failure to Comply. In addition to the remedies of the Company elsewhere provided for herein, failure
by a Participant to comply with any of the terms and conditions of the Plan or any Award Agreement shall be grounds for the cancellation
and forfeiture of such Incentive Award, in whole or in part, as the Committee, in its absolute discretion, may determine.

 

		XIX.	Relationship to Other Benefits. No payment with respect to any Incentive Awards under the Plan
shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance, or other benefit
plan of the Company except as otherwise specifically provided in such other plan.

 

    15

     

    

 

		XX.	Governing Law. The Plan and the rights of all persons under the Plan shall be construed and administered
in accordance with the laws of the State of Delaware without regard to its conflict of law principles.

 

		XXI.	Severability. If all or any part of this Plan is declared by any court or governmental authority
to be unlawful or invalid, such unlawfulness or invalidity shall not serve to invalidate any portion of this Plan not declared to be unlawful
or invalid. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner
that will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful
and valid.

 

		XXII.	Effective Date and Term of Plan. The Effective Date of the Plan is as defined above. No grants
of Incentive Awards may be made under the Plan after the tenth anniversary of that Effective Date.

 

		XXIII.	Amendment or Termination of the Plan. The Board of Directors may at any time suspend or discontinue
the Plan or revise or amend it or any Incentive Award in any respect whatsoever; provided, however, that to the extent that
any applicable law, tax requirement, or rule of a stock exchange requires shareholder approval in order for any such revision or
amendment to be effective, such revision or amendment shall not be effective without such approval. The preceding sentence shall not restrict
the Committee’s ability to exercise its discretionary authority hereunder pursuant to Section IV, which discretion
may be exercised without amendment to the Plan. No provision of this Section XXIII shall be given effect to the extent
that such provision would cause any tax to become due under section 409A of the Code. Except as expressly provided in the Plan, no action
hereunder may, without the consent of a Participant, adversely affect the Participant’s rights under any previously granted and
outstanding Incentive Award. Nothing in the Plan shall limit the right of the Company to pay compensation of any kind outside the terms
of the Plan.

 

		XXIV.	Recoupment. Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the
Company will be entitled to the extent permitted or required by applicable law, Company policy and/or the requirements of an exchange
on which the Company’s shares are listed for trading, in each case, as in effect from time to time to recoup compensation of whatever
kind paid by the Company at any time to a Participant under this Plan.

 

    16

     

    

 

Schedule
A

 

Applicable
Limits

 

		·	Section III.A. – Maximum number of shares of Common Stock that may be covered by Incentive Awards under the Plan: _____

 

		·	Section III.A. – Annual percentage increase in the number of shares of Common Stock that may be covered by Incentive Awards
under the Plan: _____

 

		·	Section III.E. – Maximum dollar amount of the sum of cash compensation and Incentive Awards for a non-employee director
in the non-employee director’s first year of service as a non-employee director: _____

 

		·	Section III.E. – Maximum dollar amount of the sum of cash compensation and Incentive Awards for a non-employee director
after the first service year (described above): _____

 

    17

     

    

 

Appendix
A

 

Standard
Stock Option Forms Package

 

Cariloha, Inc.

 

2022
Incentive Award Plan

 

    18

     

    

 

Appendix
B

 

Standard
Restricted Stock Award Forms Package

 

Cariloha, Inc.

 

2022
Incentive Award Plan

 

    19

     

    

 

Appendix
C

 

Standard
RSU Forms Package

 

Cariloha, Inc.

 

2022
Incentive Award Plan

 

    20

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