Document:

Exhibit 10. 35 

 

Harvest
HEALTH & RECREATION Inc.

2018 stock and INCENTIVE PLAN

 

ADOPTED
BY THE BOARD OF DIRECTORS: 2018

APPROVED BY THE COMPANY’S SHAREHOLDERS: 2018

 

Section
1. Purpose

 

The
purpose of the Plan is to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining
employees, officers, consultants, advisors and Non-Employee Directors capable of assuring the future success of the Company, to
offer such persons incentives to put forth maximum efforts for the success of the Company’s business and to compensate such
persons through various stock and cash-based arrangements and provide them with opportunities for stock ownership in the Company,
thereby aligning the interests of such persons with the Company’s shareholders.

 

Section
2. Definitions

 

As
used in the Plan, the following terms shall have the meanings set forth below:

 

(a)
“Affiliate” shall mean any entity that, directly or indirectly through one or more intermediaries, is controlled
by the Company.

 

(b)
“Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance
Award, Dividend Equivalent or Other Stock-Based Award granted under the Plan.

 

(c)
“Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing an
Award granted under the Plan (including a document in an electronic medium) executed in accordance with the requirements of Section
10(b).

 

(d)
“Board” shall mean the Board of Directors of the Company.

 

(e)
“Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to time, and any regulations
promulgated thereunder.

 

(f)
“Committee” shall mean the Compensation Committee of the Board or such other committee designated by the Board
to administer the Plan. At any time that the Company is an SEC registrant and is not a “foreign private issuer” for
purposes of the Securities Act and the Exchange Act, the Committee shall be comprised of not less than such number of Directors
as shall be required to permit Awards granted under the Plan to qualify under Rule 16b-3, and each member of the Committee shall
be a “non-employee director” within the meaning of Rule 16b-3.

 

(g)
“Company” shall mean Harvest Health & Recreation Inc., a British Columbia corporation, and any successor
corporation.

 

    	 

    	 

    

 

(h)
“CSE” means the Canadian Securities Exchange”

 

(i)
“Director” shall mean a member of the Board.

 

(j)
“Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

 

(k)
“Effective Date” shall mean the date the Plan is adopted by the Board, as set forth in Section 11.

 

(l)
“Eligible Person” shall mean any employee, officer, Non-Employee Director, consultant, independent contractor
or advisor providing services to the Company or any Affiliate, or any such person to whom an offer of employment or engagement
with the Company or any Affiliate is extended.

 

(m)
“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.

 

(n)
“Fair Market Value” with respect to one Share as of any date shall mean (a) if the Shares are listed on the
CSE or any established stock exchange, the price of one Share at the close of the regular trading session of such market or exchange
on the last trading day prior to such date, and if no sale of Shares shall have occurred on such date, on the next preceding date
on which there was a sale of Shares. Notwithstanding the foregoing, in the event that the Shares are listed on the CSE, for the
purposes of establishing the exercise price of any Options, the Fair Market Value shall not be lower than the greater of the closing
market price of the Shares on the CSE on (i) the trading day prior to the date of grant of the Options, and (ii) the date of grant
of the Options; (b) if the Shares are not so listed on the CSE or any established stock exchange, the average of the closing “bid”
and “asked” prices quoted by the OTC Bulletin Board, the National Quotation Bureau, or any comparable reporting service
on such date or, if there are no quoted “bid” and “asked” prices on such date, on the next preceding date
for which there are such quotes for a Share; or (c) if the Shares are not publicly traded as of such date, the per share value
of one Share, as determined by the Board, or any duly authorized Committee of the Board, in its sole discretion, by applying principles
of valuation with respect thereto.

 

(o)
“Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that is intended to meet
the requirements of Section 422 of the Code or any successor provision.

 

(p)
“Listed Security” means any security of the Company that is listed or approved for listing on a U.S. national
securities exchange or designated or approved for designation as a national market system security on an interdealer quotation
system by the U.S. Financial Industry Regulatory Authority (or any successor thereto).

 

(q)
“Multiple Voting Shares” shall mean the multiple voting shares of the Company, each of which carries 100 votes
and is convertible, in certain limited circumstances, into 100 Subordinate Voting Shares.

 

    	 	-2-	 

     

    

 

(r)
“Non-Employee Director” shall mean a Director who is not also an employee of the Company or any Affiliate.

 

(s)
“Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan that is not intended
to be an Incentive Stock Option.

 

(t)
“Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option to purchase shares of the Company.

 

(u)
“Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

 

(v)
“Participant” shall mean an Eligible Person designated to be granted an Award under the Plan.

 

(w)
“Performance Award” shall mean any right granted under Section 6(d) of the Plan.

 

(x)
“Person” shall mean any individual or entity, including a corporation, partnership, limited liability company,
association, joint venture or trust.

 

(y)
“Plan” shall mean the Company’s 2018 Stock and Incentive Plan, as amended from time to time.

 

(z)
“Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

 

(aa)
“Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan evidencing the right to
receive a Share (or a cash payment equal to the Fair Market Value of a Share) at some future date, provided that in the case of
Participants who are liable to taxation under the Tax Act in respect of amounts payable under this Plan, that such date shall
not be later than December 31of the third calendar year following the year services were performed in respect of the corresponding
Restricted Stock Unit awarded.

 

(bb)
“Section 409A” shall mean Section 409A of the Code, or any successor provision, and applicable Treasury Regulations
and other applicable guidance thereunder.

 

(cc)
“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.

 

(dd)
“Share” or “Shares” shall mean Subordinate Voting Shares of the Company (or such other securities
or property as may become subject to Awards pursuant to an adjustment made under Section 4(c) of the Plan).

 

(ee)
“Specified Employee” shall mean a specified employee as defined in Section 409A(a)(2)(B) of the Code or applicable
proposed or final regulations under Section 409A, determined in accordance with procedures established by the Company and applied
uniformly with respect to all plans maintained by the Company that are subject to Section 409A.

 

    	 	-3-	 

     

    

 

(ff)
“Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

 

(gg)
“Super Voting Shares” shall mean the super voting shares of the Company, each of which carries 200 votes and
is convertible into 1 Subordinate Voting Share.]

 

(hh)
“Tax Act” means the Income Tax Act (Canada).

 

(ii)
“U.S. Award Holder” shall mean any holder of an Award who is a “U.S. person” (as defined in Rule
902(k) of Regulation S under the Securities Act) or who is holding or exercising Awards in the United States.

 

Section
3. Administration

 

(a)
Power and Authority of the Committee. The Plan shall be administered by the Committee. Subject to the express provisions
of the Plan and to applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine
the type or types of Awards to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered
by (or the method by which payments or other rights are to be calculated in connection with) each Award; (iv) determine the terms
and conditions of any Award or Award Agreement, including any terms relating to the forfeiture of any Award and the forfeiture,
recapture or disgorgement of any cash, Shares or other amounts payable with respect to any Award; (v) amend the terms and conditions
of any Award or Award Agreement, subject to the limitations under Section 7; (vi) accelerate the exercisability of any Award or
the lapse of any restrictions relating to any Award, subject to the limitations in Section 7, (vii) determine whether, to what
extent and under what circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other property
(excluding promissory notes), or canceled, forfeited or suspended, subject to the limitations in Section 7; (viii) determine whether,
to what extent and under what circumstances amounts payable with respect to an Award under the Plan shall be deferred either automatically
or at the election of the holder thereof or the Committee, subject to the requirements of Section 409A; (ix) interpret and administer
the Plan and any instrument or agreement, including an Award Agreement, relating to the Plan; (x) establish, amend, suspend or
waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan;
(xi) make any other determination and take any other action that the Committee deems necessary or desirable for the administration
of the Plan; and (xii) adopt such modifications, rules, procedures and subplans as may be necessary or desirable to comply with
provisions of the laws of the jurisdictions in which the Company or an Affiliate may operate, including, without limitation, establishing
any special rules for Affiliates, Eligible Persons or Participants located in any particular country, in order to meet the objectives
of the Plan and to ensure the viability of the intended benefits of Awards granted to Participants located in such non-United
States jurisdictions. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other
decisions under or with respect to the Plan or any Award or Award Agreement shall be within the sole discretion of the Committee,
may be made at any time and shall be final, conclusive and binding upon any Participant, any holder or beneficiary of any Award
or Award Agreement, and any employee of the Company or any Affiliate.

 

    	 	-4-	 

     

    

 

(b)
Delegation. The Committee may delegate to one or more officers or Directors of the Company, subject to such terms, conditions
and limitations as the Committee may establish in its sole discretion, the authority to grant Awards; provided, however,
that the Committee shall not delegate such authority in such a manner as would cause the Plan not to comply with applicable exchange
rules or applicable corporate law.

 

(c)
Power and Authority of the Board. Notwithstanding anything to the contrary contained herein, (i) the Board may, at any
time and from time to time, without any further action of the Committee, exercise the powers and duties of the Committee under
the Plan, unless the exercise of such powers and duties by the Board would cause the Plan not to comply with the requirements
of all applicable securities rules and (ii) only the Committee (or another committee of the Board comprised of directors who qualify
as independent directors within the meaning of the independence rules of any applicable securities exchange where the Shares are
then listed) may grant Awards to Directors who are not also employees of the Company or an Affiliate.

 

(d)
Indemnification. To the full extent permitted by law, (i) no member of the Board, the Committee or any person to whom the
Committee delegates authority under the Plan shall be liable for any action or determination taken or made in good faith with
respect to the Plan or any Award made under the Plan, and (ii) the members of the Board, the Committee and each person to whom
the Committee delegates authority under the Plan shall be entitled to indemnification by the Company with regard to such actions
and determinations. The provisions of this paragraph shall be in addition to such other rights of indemnification as a member
of the Board, the Committee or any other person may have by virtue of such person’s position with the Company.

 

Section
4. Shares Available for Awards

 

(a)
Shares Available. Subject to adjustment as provided in Section 4(c) of the Plan, the aggregate number of Shares that may
be issued under all Awards under the Plan shall be 10% of the number of Shares outstanding. References to number of outstanding
Shares hereunder, include the number of Shares issuable on conversion of the Super Voting Shares and the Multiple Voting Shares.
The aggregate number of Shares that may be issued under all Awards under the Plan shall be reduced by Shares subject to Awards
issued under the Plan in accordance with the Share counting rules described in Section 4(b) below.

 

(b)
Counting Shares. For purposes of this Section 4, if an Award entitles the holder thereof to receive or purchase Shares,
the number of Shares covered by such Award or to which such Award relates shall be counted on the date of grant of such Award
against the aggregate number of Shares available for granting Awards under the Plan.

 

	 	(i)	Shares
    Added Back to Reserve. If any Shares covered by an Award or to which an Award relates are not purchased or
    are forfeited or are reacquired by the Company (including any Shares withheld by the Company or Shares tendered to satisfy
    any tax withholding obligation on Awards or Shares covered by an Award that are settled in cash), or if an Award otherwise
    terminates or is cancelled without delivery of any Shares, then the number of Shares counted against the aggregate number
    of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture, reacquisition by the
    Company, termination or cancellation, shall again be available for granting Awards under the Plan.

 

    	 	-5-	 

     

    

 

	 	(ii)	Cash-Only
    Awards. Awards that do not entitle the holder thereof to receive or purchase Shares shall not be counted against
    the aggregate number of Shares available for Awards under the Plan.
	 	 	 
	 	(iii)	Substitute
    Awards Relating to Acquired Entities. Shares issued under Awards granted in substitution for awards previously
    granted by an entity that is acquired by or merged with the Company or an Affiliate shall not be counted against the aggregate
    number of Shares available for Awards under the Plan.

 

(c)
Adjustments. In the event that any dividend (other than a regular cash dividend) or other distribution (whether in the
form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance
of warrants or other rights to purchase Shares or other securities of the Company or other similar corporate transaction or event
affects the Shares such that an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust
any or all of (i) the number and type of Shares (or other securities or other property) that thereafter may be made the subject
of Awards, (ii) the number and type of Shares (or other securities or other property) subject to outstanding Awards, (iii) the
purchase price or exercise price with respect to any Award and (iv) the limitation contained in Section 4(d) below; provided,
however, that the number of Shares covered by any Award or to which such Award relates shall always be a whole number.
Such adjustment shall be made by the Committee or the Board, whose determination in that respect shall be final, binding and conclusive.

 

(d)
Director Award Limitations. The limitation contained in this Section 4(d) shall apply only with respect to any Award or
Awards granted under this Plan, and limitations on awards granted under any other shareholder-approved incentive plan maintained
by the Company will be governed solely by the terms of such other plan.

 

No
Non-Employee Director may be granted any Award or Awards denominated in Shares that exceed in the aggregate US$1 million (such
value computed as of the date of grant in accordance with applicable financial accounting rules) in any calendar year. The foregoing
limit shall not apply to any Award made pursuant to any election by the Director to receive an Award in lieu of all or a portion
of annual and committee retainers and meeting fees.

 

(e)
Additional Award Limitations. If, and so long as, the Company is listed on the CSE, the aggregate number of Shares issued
or issuable to persons providing investor relations activities (as defined in CSE policies) as compensation within a one-year
period, shall not exceed 1% of the total number of Shares then outstanding.

 

    	 	-6-	 

     

    

 

Section
5. Eligibility

 

Any
Eligible Person shall be eligible to be designated as a Participant. In determining which Eligible Persons shall receive an Award
and the terms of any Award, the Committee may take into account the nature of the services rendered by the respective Eligible
Persons, their present and potential contributions to the success of the Company and/or such other factors as the Committee, in
its discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive Stock Option may only be granted to full-time
or part-time employees (which term, as used herein, includes, without limitation, officers and Directors who are also employees),
and an Incentive Stock Option shall not be granted to an employee of an Affiliate unless such Affiliate is also a “subsidiary
corporation” of the Company within the meaning of Section 424(f) of the Code or any successor provision.

 

Section
6. Awards

 

(a)
Options. The Committee is hereby authorized to grant Options to Eligible Persons with the following terms and conditions
and with such additional terms and conditions not inconsistent with the provisions of the Plan, as the Committee shall determine:

 

	 	(i)	Exercise
    Price. The purchase price per Share purchasable under an Option shall be determined by the Committee and shall
    not be less than 100% of the Fair Market Value of a Share on the date of grant of such Option; provided, however, that
    the Committee may designate a purchase price below Fair Market Value on the date of grant if the Option is granted in substitution
    for a stock option previously granted by an entity that is acquired by or merged with the Company or an Affiliate.
	 	 	 
	 	(ii)	Option
    Term. The term of each Option shall be fixed by the Committee at the date of grant but shall not be longer
    than 10 years from the date of grant. Notwithstanding the foregoing, in the event that the expiry date of an Option
    held by a non-U.S. Award Holder falls within a trading blackout period imposed by the Company (a “Blackout Period”),
    and neither the Company nor the individual in possession of the Options is subject to a cease trade order in respect of the
    Company’s securities, then the expiry date of such Option shall be automatically extended to the 10th business day following
    the end of the Blackout Period.
	 	 	 
	 	(iii)	Time
    and Method of Exercise. The Committee shall determine the time or times at which an Option may be exercised
    in whole or in part and the method or methods by which, and the form or forms, including, but not limited to, cash, Shares
    (actually or by attestation), other securities, other Awards or other property, or any combination thereof, having a Fair
    Market Value on the exercise date equal to the applicable exercise price, in which payment of the exercise price with respect
    thereto may be made or deemed to have been made. 

 

	 	 	(A)	Promissory
    Notes. Notwithstanding the foregoing, the Committee may not permit payment of the exercise price, either in
    whole or in part, with a promissory note.

 

    	 	-7-	 

     

    

 

	 	 	(B)	Net
    Exercises. The Committee may, in its discretion, permit an Option to be exercised by delivering to the Participant
    a number of Shares having an aggregate Fair Market Value (determined as of the date of exercise) equal to the excess, if positive,
    of the Fair Market Value of the Shares underlying the Option being exercised on the date of exercise, over the exercise price
    of the Option for such Shares.
	 	 	 	 
	 	(iv)	Incentive
    Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional provisions shall
    apply to the grant of stock options which are intended to qualify as Incentive Stock Options:
	 	 	 	 
	 	 	(A)	The
    Committee will not grant Incentive Stock Options in which the aggregate Fair Market Value (determined as of the time the Option
    is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Participant
    during any calendar year (under this Plan and all other plans of the Company and its Affiliates) shall exceed $100,000.
	 	 	 	 
	 	 	(B)	Subject
    to adjustment pursuant to Section 4(c), the maximum number of Shares that may be issued pursuant to Incentive Stock Options
    shall not exceed 20,000,000 Shares.
	 	 	 	 
	 	 	(C)	All
    Incentive Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted by the
    Board or the date this Plan was approved by the shareholders of the Company.
	 	 	 	 
	 	 	(D)	Unless
    sooner exercised, all Incentive Stock Options shall expire and no longer be exercisable no later than 10 years after the date
    of grant; provided, however, that in the case of a grant of an Incentive Stock Option to a Participant who,
    at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10% of
    the total combined voting power of all classes of stock of the Company or of its Affiliates, such Incentive Stock Option shall
    expire and no longer be exercisable no later than five years from the date of grant.

 

    	 	-8-	 

     

    

 

	 	 	(E)	The
    purchase price per Share for an Incentive Stock Option shall be not less than 100% of the Fair Market Value of a Share on
    the date of grant of the Incentive Stock Option; provided, however, that, in the case of the grant of an Incentive
    Stock Option to a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code)
    stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliates,
    the purchase price per Share purchasable under an Incentive Stock Option shall be not less than 110% of the Fair Market Value
    of a Share on the date of grant of the Incentive Stock Option.
	 	 	 	 
	 	 	(F)	Any
    Incentive Stock Option authorized under the Plan shall contain such other provisions as the Committee shall deem advisable,
    but shall in all events be consistent with and contain all provisions required in order to qualify the Option as an Incentive
    Stock Option.

 

(b)
Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation Rights to Eligible Persons subject
to the terms of the Plan and any applicable Award Agreement. A Stock Appreciation Right granted under the Plan shall confer on
the holder thereof a right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the date of
exercise over (ii) the grant price of the Stock Appreciation Right as specified by the Committee, which price shall not be less
than 100% of the Fair Market Value of one Share on the date of grant of the Stock Appreciation Right; provided, however, that,
subject to applicable law and stock exchange rules, the Committee may designate a grant price below Fair Market Value on the date
of grant if the Stock Appreciation Right is granted in substitution for a stock appreciation right previously granted by an entity
that is acquired by or merged with the Company or an Affiliate. Subject to the terms of the Plan and any applicable Award Agreement,
the grant price, term, methods of exercise, dates of exercise, methods of settlement and any other terms and conditions of any
Stock Appreciation Right shall be as determined by the Committee (except that the term of each Stock Appreciation Right shall
be subject to the same limitations in Section 6(a)(ii) applicable to Options). The Committee may impose such conditions or restrictions
on the exercise of any Stock Appreciation Right as it may deem appropriate.

 

(c)
Restricted Stock and Restricted Stock Units. The Committee is hereby authorized to grant an Award of Restricted Stock and
Restricted Stock Units to Eligible Persons with the following terms and conditions and with such additional terms and conditions
not inconsistent with the provisions of the Plan as the Committee shall determine:

 

	 	(i)	Restrictions.
    Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may impose
    (including, without limitation, any limitation on the right to vote a Share of Restricted Stock or the right to receive any
    dividend or other right or property with respect thereto), which restrictions may lapse separately or in combination at such
    time or times, in such installments or otherwise as the Committee may deem appropriate. Notwithstanding the
    foregoing, rights to dividend or Dividend Equivalent payments shall be subject to the limitations described in Section
    6(e).

 

    	 	-9-	 

     

    

 

	 	(ii)	Issuance
    and Delivery of Shares. Any Restricted Stock granted under the Plan shall be issued at the time such Awards
    are granted and may be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or
    issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company or held in
    nominee name by the stock transfer agent or brokerage service selected by the Company to provide such services for the Plan. Such
    certificate or certificates shall be registered in the name of the Participant and shall bear an appropriate legend referring
    to the restrictions applicable to such Restricted Stock. Shares representing Restricted Stock that are no longer
    subject to restrictions shall be delivered (including by updating the book-entry registration) to the Participant promptly
    after the applicable restrictions lapse or are waived. In the case of Restricted Stock Units, no Shares shall be
    issued at the time such Awards are granted. Upon the lapse or waiver of restrictions and the restricted period
    relating to Restricted Stock Units evidencing the right to receive Shares, such Shares shall be issued and delivered to the
    holder of the Restricted Stock Units.
	 	 	 
	 	(iii)	Forfeiture. Except
    as otherwise determined by the Committee or as provided in an Award Agreement, upon a Participant’s termination of employment
    or service or resignation or removal as a Director (in either case, as determined under criteria established by the Committee)
    during the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock Units held by such Participant
    at such time shall be forfeited and reacquired by the Company for cancellation at no cost to the Company; provided,
    however, that the Committee may waive in whole or in part any or all remaining restrictions with respect to Shares
    of Restricted Stock or Restricted Stock Units.

 

(d)
Performance Awards. The Committee is hereby authorized to grant Performance Awards to Eligible Persons. A Performance Award
granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation, Restricted Stock and
Restricted Stock Units), other securities, other Awards or other property and (ii) shall confer on the holder thereof the right
to receive payments, in whole or in part, upon the achievement of one or more objective performance goals during such performance
periods as the Committee shall establish. Subject to the terms of the Plan, the performance goals to be achieved during any performance
period, the length of any performance period, the amount of any Performance Award granted, the amount of any payment or transfer
to be made pursuant to any Performance Award and any other terms and conditions of any Performance Award shall be determined by
the Committee.

 

(e)
Dividend Equivalents. The Committee is hereby authorized to grant Dividend Equivalents to Eligible Persons under which
the Participant shall be entitled to receive payments (in cash, Shares, other securities, other Awards or other property as determined
in the discretion of the Committee) equivalent to the amount of cash dividends paid by the Company to holders of Shares with respect
to a number of Shares determined by the Committee. Subject to the terms of the Plan and any applicable Award Agreement, such Dividend
Equivalents may have such terms and conditions as the Committee shall determine. Notwithstanding the foregoing, (i) the Committee
may not grant Dividend Equivalents to Eligible Persons in connection with grants of Options, Stock Appreciation Rights or other
Awards the value of which is based solely on an increase in the value of the Shares after the date of grant of such Award, and
(ii) dividend and Dividend Equivalent amounts may be accrued but shall not be paid unless and until the date on which all conditions
or restrictions relating to such Award have been satisfied, waived or lapsed.

 

    	 	-10-	 

     

    

 

(f)
Other Stock-Based Awards. The Committee is hereby authorized to grant to Eligible Persons such other Awards that are denominated
or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation,
securities convertible into Shares), as are deemed by the Committee to be consistent with the purpose of the Plan. The Committee
shall determine the terms and conditions of such Awards, subject to the terms of the Plan and any applicable Award Agreement.
No Award issued under this Section 6(f) shall contain a purchase right or an option-like exercise feature.

 

(g)
General

 

	 	(i)	Consideration
    for Awards. Awards may be granted for no cash consideration or for any cash or other consideration as may be
    determined by the Committee or required by applicable law.
	 	 	 
	 	(ii)	Limits
    on Transfer of Awards. Except as otherwise provided by the Committee in its discretion and subject to such
    additional terms and conditions as it determines, no Award (other than fully vested and unrestricted Shares issued pursuant
    to any Award) and no right under any such Award shall be transferable by a Participant other than by will or by the laws of
    descent and distribution, and no Award (other than fully vested and unrestricted Shares issued pursuant to any Award) or right
    under any such Award may be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment
    or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate. Where the Committee
    does permit the transfer of an Award other than a fully vested and unrestricted Share, such permitted transfer shall be for
    no value and in accordance with all applicable securities rules. The Committee may also establish procedures as
    it deems appropriate for a Participant to designate a person or persons, as beneficiary or beneficiaries, to exercise the
    rights of the Participant and receive any property distributable with respect to any Award in the event of the Participant’s
    death.
	 	 	 
	 	(iii)	Restrictions;
    Securities Exchange Listing. All Shares or other securities delivered under the Plan pursuant to any Award
    or the exercise thereof shall be subject to such restrictions as the Committee may deem advisable under the Plan, applicable
    federal or state securities laws and regulatory requirements, and the Committee may cause appropriate entries to be made with
    respect to, or legends to be placed on the certificates for, such Shares or other securities to reflect such restrictions. The
    Company shall not be required to deliver any Shares or other securities covered by an Award unless and until the requirements
    of any federal or state securities or other laws, rules or regulations (including the rules of any securities exchange) as
    may be determined by the Company to be applicable are satisfied.

 

    	 	-11-	 

     

    

 

	 	(iv)	Prohibition
    on Option and Stock Appreciation Right Repricing.  Except as provided in Section 4(c) hereof, the Committee may not,
    without prior approval of the Company’s shareholders and applicable stock exchange approval, seek to effect any repricing
    of any previously granted, “underwater” Option or Stock Appreciation Right by: (i) amending or modifying
    the terms of the Option or Stock Appreciation Right to lower the exercise price; (ii) canceling the underwater Option or Stock
    Appreciation Right and granting either (A) replacement Options or Stock Appreciation Rights having a lower exercise price;
    or (B) Restricted Stock, Restricted Stock Units, Performance Award or Other Stock-Based Award in exchange; or (iii) cancelling
    or repurchasing the underwater Option or Stock Appreciation Right for cash or other securities. An Option or Stock
    Appreciation Right will be deemed to be “underwater” at any time when the Fair Market Value of the Shares covered
    by such Award is less than the exercise price of the Award.
	 	 	 
	 	(v)	Section
    409A Provisions. Notwithstanding anything in the Plan or any Award Agreement to the contrary, to the extent
    that any amount or benefit that constitutes “deferred compensation” to a Participant under Section 409A and applicable
    guidance thereunder is otherwise payable or distributable to a Participant under the Plan or any Award Agreement solely by
    reason of the occurrence of a change in control or due to the Participant’s disability or “separation from service”
    (as such term is defined under Section 409A), such amount or benefit will not be payable or distributable to the Participant
    by reason of such circumstance unless the Committee determines in good faith that (i) the circumstances giving rise to such
    change in control event, disability or separation from service meet the definition of a change in control event, disability,
    or separation from service, as the case may be, in Section 409A(a)(2)(A) of the Code and applicable proposed or final regulations,
    or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A by reason
    of the short-term deferral exemption or otherwise. Any payment or distribution that otherwise would be made to
    a Participant who is a Specified Employee (as determined by the Committee in good faith) on account of separation from service
    may not be made before the date which is six months after the date of the Specified Employee’s separation from service
    (or if earlier, upon the Specified Employee’s death) unless the payment or distribution is exempt from the application
    of Section 409A by reason of the short-term deferral exemption or otherwise.
	 	 	 
	 	(vi)	Acceleration
    of Vesting or Exercisability. No Award Agreement shall accelerate the exercisability of any Award or the lapse
    of restrictions relating to any Award in connection with a change-in-control event, unless such acceleration occurs upon the
    consummation of (or effective immediately prior to the consummation of, provided that the consummation subsequently
    occurs) such change-in-control event.

 

    	 	-12-	 

     

    

 

Section
7. Amendment and Termination; Corrections

 

(a)
Amendments to the Plan and Awards. The Board may from time to time amend, suspend or terminate this Plan, and the Committee
may amend the terms of any previously granted Award, provided that no amendment to the terms of any previously granted
Award may (except as expressly provided in the Plan) materially and adversely alter or impair the terms or conditions of the Award
previously granted to a Participant under this Plan without the written consent of the Participant or holder thereof. Any amendment
to this Plan, or to the terms of any Award previously granted, is subject to compliance with all applicable laws, rules, regulations
and policies of any applicable governmental entity or securities exchange, including receipt of any required approval from the
governmental entity or stock exchange, and any such amendment, alteration, suspension, discontinuation or termination of an Award
will be in compliance with CSE Policies. For greater certainty and without limiting the foregoing, the Board may amend, suspend,
terminate or discontinue the Plan, and the Committee may amend or alter any previously granted Award, as applicable, without obtaining
the approval of shareholders of the Company in order to:

 

	 	(i)	amend
    the eligibility for, and limitations or conditions imposed upon, participation in the Plan; 
	 	 	 
	 	(ii)	amend
    any terms relating to the granting or exercise of Awards, including but not limited to terms relating to the amount and payment
    of the exercise price, or the vesting, expiry, assignment or adjustment of Awards, or otherwise waive any conditions of or
    rights of the Company under any outstanding Award, prospectively or retroactively; 
	 	 	 
	 	(iii)	make
    changes that are necessary or desirable to comply with applicable laws, rules, regulations and policies of any applicable
    governmental entity or stock exchange (including amendments to Awards necessary or desirable to avoid any adverse tax results
    under Section 409A), and no action taken to comply shall be deemed to impair or otherwise adversely alter or impair the rights
    of any holder of an Award or beneficiary thereof; or
	 	 	 
	 	(iv)	amend
    any terms relating to the administration of the Plan, including the terms of any administrative guidelines or other rules
    related to the Plan. 

 

    	 	-13-	 

     

    

 

Notwithstanding
the foregoing and for greater certainty, prior approval of the shareholders of the Company shall be required for any amendment
to the Plan or an Award that would:

 

	 	(i)	require
    shareholder approval under the rules or regulations of securities exchange that is applicable to the Company;
	 	 	 
	 	(ii)	increase
    the number of shares authorized under the Plan as specified in Section 4 of the Plan;
	 	 	 
	 	(iii)	permit
    repricing of Options or Stock Appreciation Rights, which is currently prohibited by Section 6(g)(iv) of the Plan;
	 	 	 
	 	(iv)	permit
    the award of Options or Stock Appreciation Rights at a price less than 100% of the Fair Market Value of a Share on the date
    of grant of such Option or Stock Appreciation Right, contrary to the provisions of Section 6(a)(i) and Section 6(b) of the
    Plan;
	 	 	 
	 	(v)	permit
    Options to be transferable other than as provided in Section 6(g)(ii);
	 	 	 
	 	(vi)	amend
    this Section 7(a); or
	 	 	 
	 	(vii)	increase
    the maximum term permitted for Options and Stock Appreciation Rights as specified in Section 6(a) and Section 6(b)) or extend
    the terms of any Options beyond their original expiry date.

 

(b)
Corporate Transactions. In the event of any reorganization, merger, consolidation, split-up, spin-off, combination, plan
of arrangement, take-over bid or tender offer, repurchase or exchange of Shares or other securities of the Company or any other
similar corporate transaction or event involving the Company (or the Company shall enter into a written agreement to undergo such
a transaction or event), the Committee or the Board may, in its sole discretion, provide for any of the following to be effective
upon the consummation of the event (or effective immediately prior to the consummation of the event, provided that the
consummation of the event subsequently occurs), and no action taken under this Section 7(b) shall be deemed to impair or otherwise
adversely alter the rights of any holder of an Award or beneficiary thereof:

 

	 	(i)	either
    (A) termination of the Award, whether or not vested, in exchange for an amount of cash and/or other property, if any, equal
    to the amount that would have been attained upon the exercise of the vested portion of the Award or realization of the Participant’s
    vested rights (and, for the avoidance of doubt, if, as of the date of the occurrence of the transaction or event described
    in this Section 7(b)(i)(A), the Committee or the Board determines in good faith that no amount would have been attained upon
    the exercise of the Award or realization of the Participant’s rights, then the Award may be terminated by the Company
    without any payment) or (B) the replacement of the Award with other rights or property selected by the Committee or the Board,
    in its sole discretion; 
	 	 	 
	 	(ii)	that
    the Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted
    for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary
    thereof, with appropriate adjustments as to the number and kind of shares and prices; 

 

    	 	-14-	 

     

    

 

	 	(iii)	that,
    subject to Section 6(g)(vi), the Award shall be exercisable or payable or fully vested with respect to all Shares covered
    thereby, notwithstanding anything to the contrary in the applicable Award Agreement; or
	 	 	 
	 	(iv)	that
    the Award cannot vest, be exercised or become payable after a date certain in the future, which may be the effective date
    of the event.

 

(c)
Correction of Defects, Omissions and Inconsistencies. The Committee may, without prior approval of the shareholders of
the Company, correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award or Award Agreement
in the manner and to the extent it shall deem desirable to implement or maintain the effectiveness of the Plan.

 

Section
8. Income Tax Withholding

 

In
order to comply with all applicable federal, state, local or foreign income tax laws or regulations, the Company may take such
action as it deems appropriate to ensure that all applicable federal, state, local or foreign payroll, withholding, income or
other taxes, which are the sole and absolute responsibility of a Participant, are withheld or collected from such Participant.
Without limiting the foregoing, in order to assist a Participant in paying all or a portion of the applicable taxes to be withheld
or collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the Committee, in its discretion
and subject to such additional terms and conditions as it may adopt, may permit the Participant to satisfy such tax obligation
by (a) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or
the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes (subject to any applicable
limitations under ASC Topic 718 to avoid adverse accounting treatment) or (b) delivering to the Company Shares other than Shares
issuable upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes. The election, if any, must be made on or before the date that the amount of tax to be withheld is determined.

 

Section
9. U.S. Securities Laws

 

Neither
the Awards nor the securities which may be acquired pursuant to the exercise of the Awards have been registered under the Securities
Act or under any securities law of any state of the United States of America and are considered “restricted securities”
(as such term is defined in Rule 144(a)(3) under the U.S. Securities Act and any Shares shall be affixed with an applicable restrictive
legend as set forth in the Award Agreement. The Awards may not be offered or sold, directly or indirectly, in the United States
except pursuant to registration under the U.S. Securities Act and the securities laws of all applicable states or available exemptions
therefrom, and the Company has no obligation or present intention of filing a registration statement under the U.S. Securities
Act in respect of any of the Awards or the securities underlying the Awards, which could result in such U.S. Award Holder not
being able to dispose of any Shares issued on exercise of Awards for a considerable length of time. Each U.S. Award Holder or
anyone who becomes a U.S. Award Holder, who is granted an Award in the United States, who is a resident of the United States or
who is otherwise subject to the Securities Act or the securities laws of any state of the United States will be required to complete
an Award Agreement which sets out the applicable United States restrictions.

 

    	 	-15-	 

     

    

 

Section
10. General Provisions

 

(a)
No Rights to Awards. No Eligible Person, Participant or other Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Eligible Persons, Participants or holders or beneficiaries
of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to any Participant or with respect
to different Participants.

 

(b)
Award Agreements. No Participant shall have rights under an Award granted to such Participant unless and until an Award
Agreement shall have been signed by the Participant (if requested by the Company), or until such Award Agreement is delivered
and accepted through an electronic medium in accordance with procedures established by the Company. An Award Agreement need not
be signed by a representative of the Company unless required by the Committee. Each Award Agreement shall be subject to the applicable
terms and conditions of the Plan and any other terms and conditions (not inconsistent with the Plan) determined by the Committee.

 

(c)
Provision of Information. At least annually, copies of the Company’s balance sheet and income statement for the just
completed fiscal year shall be made available to each Participant and purchaser of shares upon the exercise of an Award; provided,
however, that this requirement shall not apply if all offers and sales of securities pursuant to the Plan comply with all applicable
conditions of Rule 701 under the Securities Act. The Company shall not be required to provide such information to key persons
whose duties in connection with the Company assure them access to equivalent information

 

(d)
Plan Provisions Control. In the event that any provision of an Award Agreement conflicts with or is inconsistent in any
respect with the terms of the Plan as set forth herein or subsequently amended, the terms of the Plan shall control.

 

(e)
No Rights of Shareholders. Except with respect to Shares issued under Awards (and subject to such conditions as the Committee
may impose on such Awards pursuant to Section 6(c)(i) or Section 6(e)), neither a Participant nor the Participant’s legal
representative shall be, or have any of the rights and privileges of, a shareholder of the Company with respect to any Shares
issuable upon the exercise or payment of any Award, in whole or in part, unless and until such Shares have been issued.

 

(f)
No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Affiliate from
adopting or continuing in effect other or additional compensation plans or arrangements, and such plans or arrangements may be
either generally applicable or applicable only in specific cases.

 

    	 	-16-	 

     

    

 

(g)
No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained as
an employee of the Company or any Affiliate, nor will it affect in any way the right of the Company or an Affiliate to terminate
a Participant’s employment at any time, with or without cause, in accordance with applicable law. In addition, the Company
or an Affiliate may at any time dismiss a Participant from employment free from any liability or any claim under the Plan or any
Award, unless otherwise expressly provided in the Plan or in any Award Agreement. Nothing in this Plan shall confer on any person
any legal or equitable right against the Company or any Affiliate, directly or indirectly, or give rise to any cause of action
at law or in equity against the Company or an Affiliate. Under no circumstances shall any person ceasing to be an employee of
the Company or any Affiliate be entitled to any compensation for any loss of any right or benefit under the Plan which such employee
might otherwise have enjoyed but for termination of employment, whether such compensation is claimed by way of damages for wrongful
or unfair dismissal, breach of contract or otherwise. By participating in the Plan, each Participant shall be deemed to have accepted
all the conditions of the Plan and the terms and conditions of any rules and regulations adopted by the Committee and shall be
fully bound thereby.

 

(h)
Governing Law. The internal law, and not the law of conflicts, of Delaware shall govern all questions concerning the validity,
construction and effect of the Plan or any Award, and any rules and regulations relating to the Plan or any Award.

 

(i)
Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable
in any jurisdiction or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without,
in the determination of the Committee, materially altering the purpose or intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction or Award, and the remainder of the Plan or any such Award shall remain in full force and effect.

 

(j)
No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent
that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall
be no greater than the right of any unsecured general creditor of the Company or any Affiliate.

 

(k)
Other Benefits. No compensation or benefit awarded to or realized by any Participant under the Plan shall be included for
the purpose of computing such Participant’s compensation or benefits under any pension, retirement, savings, profit sharing,
group insurance, disability, severance, termination pay, welfare or other benefit plan of the Company, unless required by law
or otherwise provided by such other plan.

 

(l)
No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee
shall determine whether cash shall be paid in lieu of any fractional Share or whether such fractional Share or any rights thereto
shall be canceled, terminated or otherwise eliminated.

 

    	 	-17-	 

     

    

 

(m)
Headings. Headings are given to the sections and subsections of the Plan solely as a convenience to facilitate reference.
Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision
thereof.

 

Section
11. Clawback or Recoupment

 

All
Awards under this Plan shall be subject to recovery or other penalties pursuant to (i) any Company clawback policy, as may be
adopted or amended from time to time, or (ii) any applicable law, rule or regulation or applicable stock exchange rule.

 

Section
12. Effective Date of the Plan

 

The
Plan was adopted by the Board on November 14, 2018. The Plan shall be subject to approval by the shareholders of the Company which
approval will be within 12 months after the date the Plan is adopted by the Board.

 

Section
13. Term of the Plan

 

No
Award shall be granted under the Plan, and the Plan shall terminate, on the earlier of (i) November 14, 2028 or the tenth anniversary
of the date the Plan is approved by the shareholders of the Company, or any earlier date of discontinuation or termination established
pursuant to Section 7(a) of the Plan. Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any
Award theretofore granted may extend beyond such dates, and the authority of the Committee provided for hereunder with respect
to the Plan and any Awards, and the authority of the Board to amend the Plan, shall extend beyond the termination of the Plan.

 

    	 	-18-	 

     

    

 

ADDENDUM
A

 

Harvest
Health & Recreation Inc. 2018 Stock and Incentive Plan

 

(California
Participants)

 

Prior
to the date, if ever, on which the Shares becomes a Listed Security and/or the Company is subject to the reporting requirements
of the Exchange Act, the terms set forth herein shall apply to Awards issued to California Participants. “California Participant”
means a Participant whose Award is issued in reliance on Section 25102(o) of the California Corporations Code. All capitalized
terms used herein but not otherwise defined shall have the respective meanings set forth in the Plan.

 

1.
The following rules shall apply to any Option in the event of termination of the Participant’s service to the Company or
an Affiliate:

 

(a)
If such termination was for reasons other than death, “Permanent Disability” (as defined below), or cause, the Participant
shall have at least 30 days after the date of such termination to exercise his or her Option to the extent the Participant is
entitled to exercise on his or her termination date, provided that in no event shall the Option be exercisable after the expiration
of the term as set forth in the Option Agreement.

 

(b)
If such termination was due to death or Permanent Disability, the Participant shall have at least 6 months after the date of such
termination to exercise his or her Option to the extent the Participant is entitled to exercise on his or her termination date,
provided that in no event shall the Option be exercisable after the expiration of the term as set forth in the Option Agreement.

 

“Permanent
Disability” for purposes of this Addendum shall mean the inability of the Participant, in the opinion of a qualified
physician acceptable to the Company, to perform the major duties of the Participant’s position with the Company or any Affiliate
because of the sickness or injury of the Participant.

 

2.
Notwithstanding anything to the contrary in Section 4(c) of the Plan, the Committee shall in any event make such adjustments as
may be required by Section 25102(o) of the California Corporations Code.

 

3.
Notwithstanding anything stated herein to the contrary, no Option shall be exercisable on or after the 10th anniversary of the
date of grant and any Award Agreement shall terminate on or before the 10th anniversary of the date of grant.

 

4.
The Company shall furnish summary financial information (audited or unaudited) of the Company’s financial condition and
results of operations, consistent with the requirements of applicable law, at least annually to each California Participant during
the period such Participant has one or more Awards outstanding, and in the case of an individual who acquired Shares pursuant
to the Plan, during the period such Participant owns such Shares; provided, however, the Company shall not be required to provide
such information if (i) the issuance is limited to key persons whose duties in connection with the Company assure their access
to equivalent information or (ii) the Plan or any agreement complies with all conditions of Rule 701 of the Securities Act; provided
that for purposes of determining such compliance, any registered domestic partner shall be considered a “family member”
as that term is defined in Rule 701.

 

5.
The Plan or any increase in the maximum aggregate number of Shares issuable thereunder as provided in Section 4(a) (the “Authorized
Shares”) shall be approved by a majority of the outstanding securities of the Company entitled to vote by the later of (a)
a period beginning twelve (12) months before and ending twelve (12) months after the date of adoption thereof by the Board or
(b) the first issuance of any security pursuant to the Plan in the State of California (within the meaning of Section 25008 of
the California Corporations Code). Awards granted prior to security holder approval of the Plan or in excess of the Authorized
Shares previously approved by the security holders shall become exercisable no earlier than the date of shareholder approval of
the Plan or such increase in the Authorized Shares, as the case may be, and such Awards shall be rescinded if such security holder
approval is not received in the manner described in the preceding sentence. Notwithstanding the foregoing, a foreign private issuer,
as defined by Rule 3b-4 of the Exchange Act of 1934 shall not be required to comply with this paragraph provided that the aggregate
number of persons in California granted options under all option plans and agreements and issued securities under all purchase
and bonus plans and agreements does not exceed 35.

 

    	 	-19-Exhibit
10. 36 

 

HARVEST
HEALTH & RECREATION INC.

2018
STOCK AND INCENTIVE PLAN

NOTICE
OF STOCK OPTION GRANT

 

You
have been granted the following option to purchase Subordinate Voting Shares of Harvest Health & Recreation Inc. (the “Company”):

 

	 	Name
    of Optionee:	 
	 	 	 
	 	Total
    Number of Shares Granted:	 
	 	 	 
	 	Type
    of Option:	[X]
    Incentive Stock Option (employees only)
	 	 	 
	 	 	[  ]
    Non-Qualified Stock Option
	 	 	 
	 	Exercise
    Price Per Share:	$
    CAD
	 	 	 
	 	Date
    of Grant:	[__]
	 	 	 
	 	Vesting
    Commencement Date	[__]
	 	 	 
	 	Vesting
    Terms:	[__]
	 	 	 
	 	Expiration
    Date:	10
    years from the date of grant.

 

By
your signature and the signature of the Company’s representative below, you and the Company agree that this option is granted
under and governed by the terms and conditions of the Company’s 2018 Stock and Incentive Plan and the attached Stock Option
Agreement, both of which are made a part of this document.

 

	OPTIONEE:	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	 	 
	 	 	By:	 
	 	 	 	 
	 	 	Title:	 
	Print
    Name	 	 	                

 

    	 

     

    

 

HARVEST
HEALTH & RECREATION INC.

2018
STOCK and incentive PLAN

STOCK
OPTION AGREEMENT

 

Section
1. GRANT OF OPTION.

 

(a)
Option. On the terms and conditions set forth in the Notice of Stock Option Grant and this Agreement, the Company grants
to the Optionee on the Date of Grant the option to purchase at the Exercise Price the number of Shares set forth in the Notice
of Stock Option Grant. This option is intended to be an Incentive Stock Option (ISO) or a Non-Qualified Stock Option (NSO), as
provided in the Notice of Stock Option Grant. The Exercise Price is agreed to be at least 100% of the Fair Market Value per Share
on the Date of Grant (110% of Fair Market Value if this option is designated as an ISO in the Notice of Stock Option Grant and
the Optionee is a 10% owner as described in Section 6 of the Plan).

 

(b)
$100,000 Limitation. Even if this option is designated as an ISO in the Notice of Stock Option Grant, it shall be deemed
to be an NSO to the extent (and only to the extent) required by the $100,000 annual limitation under Section 422(d) of the Code.

 

(c)
Stock Plan and Defined Terms. This option is granted pursuant to the 2018 Stock and Incentive Plan (the “Plan”),
a copy of which the Optionee acknowledges having received. The provisions of the Plan are incorporated into this Agreement by
this reference. Capitalized terms are defined in Section 9 of this Agreement, unless otherwise defined in Section 2 of the Plan.

 

Section
2. RIGHT TO EXERCISE.

 

(a)
In General. Except as set forth below and subject to any other conditions of this Agreement, all or part of the vested
portion of this option may be exercised prior to its expiration at the time or times set forth in the Notice of Stock Option Grant.

 

Section
3. NO TRANSFER OR ASSIGNMENT OF OPTION.

 

Except
as otherwise provided in this Agreement, this option and the rights and privileges conferred hereby shall not be sold, pledged
or otherwise transferred (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment,
levy or similar process.

 

Section
4. EXERCISE PROCEDURES.

 

(a)
Notice of Exercise. The Optionee or the Optionee’s representative may exercise this option by giving written notice
to the Company. The notice shall specify the election to exercise this option, the number of Shares for which it is being exercised
and the form of payment. The notice shall be signed by the person exercising this option. In the event that this option is being
exercised by the representative of the Optionee, the notice shall be accompanied by proof (satisfactory to the Company) of the
representative’s right to exercise this option. The Optionee or the Optionee’s representative shall deliver to the
Company, at the time of giving the notice, payment in a form permissible under Section 5 of this Agreement for the full amount
of the Purchase Price.

 

(b)
Issuance of Shares. After receiving a proper notice of exercise, the Company shall cause to be issued Shares (either in
certificate or book entry form, as determined by the Company) as to which this option has been exercised, registered in the name
of the person exercising this option (or in the names of such person and his or her spouse as community property or as joint tenants
with right of survivorship). If the Optionee is a resident of the United States, the Optionee acknowledges that any securities
(the “Securities”) issued hereunder will be “restricted securities”, as such term is defined under Rule
144 under the Securities Act of 1933, as amended, (the “U.S. Securities Act) and the Optionee agrees that if it decides
to offer, sell or otherwise transfer, pledge or hypothecate all or any part of the Securities, it will not offer, sell or otherwise
transfer, pledge or hypothecate any or any part of the Securities (other than pursuant to an effective registration statement
under the U.S. Securities Act), directly or indirectly, except:

 

    	 

     

    

 

(i)
to the Corporation; or

 

(ii)
outside the United States in accordance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act and in
compliance with applicable local rules and regulations; or

 

(iii)
in accordance with the exemptions from registration under the U.S. Securities Act provided by Rule 144 or Rule 144A thereunder,
if available, and in accordance with applicable state securities laws of the United States; or

 

(iv)
in a transaction that does not require registration under the U.S. Securities Act or any applicable United States state laws
and regulations governing the offer and sale of securities; provided, however, that prior to any offer, sale or other
transfer, pledge or hypothecation, the Optionee has furnished to the Corporation an opinion of counsel of recognized standing
or other evidence of exemption, in either case reasonably satisfactory to the Corporation, and further, acknowledges that a
legend to the foregoing effect will be affixed to any certificates representing the Securities.

 

(c)
Withholding Taxes. In the event that the Company determines that it is required to withhold any tax as a result of the
exercise of this option, the Optionee, as a condition to the exercise of this option, shall make arrangements satisfactory to
the Company to enable it to satisfy all withholding requirements. The Optionee shall also make arrangements satisfactory to the
Company to enable it to satisfy any withholding requirements that may arise in connection with the vesting or disposition of Shares
purchased by exercising this option.

 

Section
5. PAYMENT FOR STOCK.

 

(a)
Cash. All or part of the Purchase Price may be paid in cash or cash equivalents.

 

(b)
Surrender of Stock. Subject to applicable corporate and securities laws, and stock exchange requirements, all or any part
of the Purchase Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee.
Such Shares shall be surrendered to the Company in good form for cancellation and shall be valued at their Fair Market Value on
the date when this option is exercised. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of
the Purchase Price if such action would cause the Company to recognize compensation expense (or additional compensation expense)
with respect to this option for financial reporting purposes.

 

(c)
Exercise/Sale. If Shares are publicly traded, all or part of the Purchase Price and any withholding taxes may be paid by
the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company
to sell Shares and to deliver all or part of the sales proceeds to the Company.

 

(d)
Net Exercise. The Company may, in its discretion, permit an Option to be exercised by delivering to the Optionee a number
of Shares having an aggregate Fair Market Value (determined as of the date of exercise) equal to the excess, if positive, of the
Fair Market Value of the Shares underlying the Option being exercised on the date of exercise, over the Purchase Price of the
Option for such Shares.

 

Section
6. TERM AND EXPIRATION.

 

(a)
Basic Term. This option shall in any event expire on the expiration date set forth in the Notice of Stock Option Grant,
which date shall not exceed ten years after the Date of Grant (five years after the Date of Grant if this option is designated
as an ISO in the Notice of Stock Option Grant, and the Optionee is a 10% owner as described in Section 6 of the Plan).

 

(b)
Termination of Service (Except by Death or Disability). If the Optionee’s service terminates for any reason other
than death or Disability, then this option shall expire on the earliest of the following occasions:

 

(i)
The expiration date determined pursuant to Subsection (a) above;

 

    	3

     

    

 

(ii)
The date three months after the termination of the Optionee’s service for any reason other than Cause; or

 

(iii)
The date of termination of the Optionee’s service for Cause.

 

The
Optionee may exercise all or part of this option at any time before its expiration under the preceding sentence, but only to the
extent that this option is then exercisable. In the event that the Optionee dies after termination of service but before the expiration
of this option, all or part of this option may be exercised (prior to expiration) by the executors or administrators of the Optionee’s
estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance,
but only to the extent that this option had become exercisable before the Optionee’s death. For avoidance of doubt, if the
Optionee is employed by an Affiliate that is sold or otherwise ceases to be an Affiliate of the Company, the Optionee shall incur
a termination of service.

 

(c)
Death or Disability of the Optionee. If the Optionee dies or becomes Disabled while in service, then this option shall
expire on the earlier of the following dates:

 

(i)
The expiration date determined pursuant to Subsection (a) above; or

 

(ii)
The date 12 months after the Optionee’s death or Disability.

 

In
the event of Optionee’s death, all or part of this option may be exercised at any time before its expiration under the preceding
sentence by the executors or administrators of the Optionee’s estate or by any person who has acquired this option directly
from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option had become exercisable
before the Optionee’s death.

 

(d)
Leaves of Absence. For any purpose under this Agreement, service shall be deemed to continue while the Optionee is on a
bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of service for such
purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).

 

Section
7. ADJUSTMENT OF SHARES.

 

In
the event of any transaction described in Section 4(c) of the Plan, the terms of this option (including, without limitation, the
number and kind of Shares subject to this option and the Exercise Price) shall be adjusted as set forth in Section 4(c) of the
Plan. In the event that the Company is a party to any corporate transaction, this option shall be subject to amendment as provided
in Section 7(b) of the Plan.

 

Section
8. MISCELLANEOUS PROVISIONS.

 

(a)
Rights as a Shareholder. Neither the Optionee nor the Optionee’s representative shall have any rights as a shareholder
with respect to any Shares subject to this option until the Optionee or the Optionee’s representative becomes entitled to
receive such Shares by filing a notice of exercise and paying the Purchase Price pursuant to Sections 4 and 5 of this Agreement.

 

(b)
Compliance Matters. The Company may require from the Optionee such investment representation, undertaking or agreement,
if any, as the Company may consider necessary in order to comply with applicable laws and policies of any applicable exchange.
The Optionee understands and acknowledges that Shares to be issued upon exercise of this option may be issued subject to any restrictive
legend or other transfer restrictions as may be required by applicable securities laws and stock exchange requirements. If the
Shares are not exempt from California securities laws, then with respect to any Optionee who is a California resident, the Company
will deliver financial statements to the Optionee if he or she is not a key person within the Company or an Affiliate whose duties
arre Optionee access to equivalent information.

 

(c)
No Retention Rights. Nothing in this option or in the Plan shall confer upon the Optionee any right to continue in service
for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Affiliate
employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate his
or her service at any time and for any reason, with or without Cause.

 

    	4

     

    

 

(d)
Incorporation of Policies. This option and all compensation awarded under this Agreement shall be subject to the terms
of any clawback, noncompetition, confidentiality or nondisclosure policies or agreements as may be in place between the Optionee
and the Company or any Affiliate from time to time.

 

(e)
Notice. Any notice required by the terms of this Agreement shall be given in writing and notice to the Company shall be
deemed effective upon receipt by the Company (i) upon personal delivery, (ii) through registered or certified mail with postage
and fees prepaid; or (iii) through electronic notification using a form and process approved by the Company. If mailed or delivered,
notice to the Company shall be addressed to the Company at its principal executive office and notice to the Optionee shall be
addressed to the address that he or she most recently provided to the Company.

 

(f)
Entire Agreement. The Notice of Stock Option Grant, this Agreement and the Plan constitute the entire contract between
the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings
(whether oral or written and whether express or implied) which relate to the subject matter hereof.

 

(g)
Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Arizona,
as such laws are applied to contracts entered into and performed in such State.

 

Section
9. DEFINITIONS.

 

In
addition to the definitions set forth in the Plan, the following terms shall have the meanings ascribed herein (in the event a
conflict exists, the meaning set forth in this Agreement shall prevail):

 

(a)
“Agreement” shall mean this Stock Option Agreement.

 

(b)
“Cause” shall mean a (i) repeated failure to competently and diligently perform duties of Optionee’s position
with the Company (other than due to physical or mental illness); (ii) conviction of guilty or nolo contendere plea to, a misdemeanor
which is materially and demonstrably injurious to the Company or any of its subsidiaries or any felony; (iii) commission of an
act, or a failure to act, that constitutes fraud, gross negligence or willful misconduct (including without limitation, embezzlement,
misappropriation or breach of fiduciary duty resulting or intending to result in personal gain at the expense of the Company or
any of its subsidiaries); and (iv) violation of any applicable laws, rules or regulations or failure to comply with applicable
confidentiality, non solicitation and non competition obligations to the Company or any of its subsidiaries, corporate code of
business conduct or other material policies of the Company or any of its subsidiaries in connection with or during performance
of the Optionee’s duties to the Company or any of its subsidiaries that could, in the Board’s opinion, cause material
injury to the Company or any of its subsidiaries; and (v) failure to maintain applicable professional licenses or certifications.
In the case of a violation or failure under (i), (iv) or (v), if such violation or failure is curable, such violation or failure
shall only constitute “Cause” if it is not cured within thirty (30) days after notice thereof to the Optionee.

 

(c)
“Change in Control” shall mean:

 

(i)
the occurrence of any of the following events (each, a “Business Combination”): (a) the sale of more than 50% of the
outstanding equity securities of the Company in a single transaction or in a series of transactions occurring during a period
of not more than twelve months; (b) the Company is merged, amalgamated or consolidated with another corporation; or (c) a sale
of substantially all of the assets of the Company to another entity, unless, following any of the foregoing Business Combinations
in (a) through (c) above, all or substantially all of the individuals and entities that were the beneficial owners of the Company’s
outstanding voting securities immediately prior to such Business Combination beneficially own immediately after the transaction
or transactions, directly or indirectly, 50% or more of the combined voting power of the then outstanding voting securities (or
comparable interests) of the entity resulting from such Business Combination (including an entity that, as a result of such transaction,
owns the Company or all or substantially all of the Company’s assets either directly or through one or more affiliates)
in substantially the same proportions as their ownership of the Company’s voting securities immediately prior to such Business
Combination; or

 

    	5

     

    

 

(ii)
in any twelve (12) month period, the individuals who, as of the beginning of the 12-month period, constitute the Board of Directors
(the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided,
however, that any individual becoming a director subsequent to the Effective Date whose election or appointment, or nomination
for election by Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board will be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect
to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board of Directors.

 

(d)
“Date of Grant” shall mean the date specified in the Notice of Stock Option Grant.

 

(e)
“Disability” means “disability” within the meaning of Section 22(e)(3) of the Code

 

(f)
“Exercise Price” shall mean the amount for which one Share may be purchased upon exercise of this option, as
specified in the Notice of Stock Option Grant.

 

(g)
“Notice of Stock Option Grant” shall mean the document so entitled to which this Agreement is attached.

 

(h)
“Optionee” shall mean the individual named in the Notice of Stock Option Grant.

 

(i)
“Purchase Price” shall mean the Exercise Price multiplied by the number of Shares with respect to which this
option is being exercised.

 

    	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]