EXHIBIT 10.7


 


CABINET GROW, INC.


2015 EQUITY COMPENSATION PLAN


STOCK OPTION AGREEMENT


 


Unless otherwise
defined herein, capitalized terms shall have the meaning set forth in the Cabinet Grow, Inc. 2015 Equity Compensation Plan (the
"Plan").


 


1. NOTICE
OF STOCK OPTION GRANT


 


You have been granted
an option to purchase Common Stock, subject to the terms and conditions of the Plan and this Option Agreement, as follows:


 


	 	 
	Name of Awardee:	 
	Total Number of Shares Granted:	 
	Type of Option (check one):	
        ☐ Nonstatutory Stock Option

        ☐ Incentive Stock Option

	Exercise Price per Share:	$ 
	Grant Date:	 
	Vesting Commencement Date:	 
	Vesting Schedule:	
        This option may be exercised, in whole
        or in part, in accordance with the following schedule:

        [___]% of the Shares subject
        to the option shall vest [__] months after the Vesting Commencement Date, and [__]% of the Shares
        subject to the option shall vest each [year/quarter/month] thereafter, subject to the Awardee continuing to be a
        Service Provider on such dates.

	Termination Period:	This option may be exercised for THREE (3) months after the Awardee's Termination Date, except that if the Awardee's Termination of Service is for Cause, this option shall terminate on the Termination Date. Upon the death or Disability of the Awardee, this option may be exercised for TWELVE (12) months after the Awardee's Termination Date. Special termination periods are set forth in Sections 2.3(B), 2.9, and 2.10 below. In no event may this option be exercised later than the Term of Award/Expiration Date provided below.
	Term of Award/Expiration Date:	 [____________]


 


2. AGREEMENT


 


2.1 Grant
of Option. The Administrator hereby grants to the awardee named in the Notice of Stock Option Grant attached as Part I of this
Option Agreement (the "Awardee") an option (the "Option") to purchase the number of Shares, as
set forth in the Notice of Stock Option Grant, at the exercise price per Share set forth in the Notice of Stock Option Grant (the
"Exercise Price"), subject to the terms and conditions of this Option Agreement and the Plan. This Option is intended
to be a Nonstatutory Stock Option ("NSO") or an Incentive Stock Option ("ISO"), as provided in
the Notice of Stock Option Grant.


 


2.2 Exercise
of Option.


 


(A) Vesting/Right
to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set forth in Section 1
and the applicable provisions of this Option Agreement and the Plan. In no event will this Option become exercisable for additional
Shares after a Termination of Service for any reason. Notwithstanding the foregoing, this Option becomes exercisable in full if
the Company is subject to a Change in Control before the Awardee's Termination of Service, and within 12 months after the Change
in Control the Awardee is subject to a Termination of Service resulting from: (i) the Awardee's involuntary discharge by the Company
(or the Affiliate employing him or her) for reasons other than Cause (defined below), death or Disability; or (ii) the Awardee's
resignation for Good Reason (defined below). This Option may also become exercisable in accordance with Section 2.11 below.


 


The term "Cause"
shall mean (1) the Awardee's theft, dishonesty, or falsification of any documents or records of the Company or any Affiliate; (2)
the Awardee's improper use or disclosure of confidential or proprietary information of the Company or any Affiliate that results
or will result in material harm to the Company or any Affiliate; (3) any action by the Awardee which has a detrimental effect on
the reputation or business of the Company or any Affiliate; (4) the Awardee's failure or inability to perform any reasonable assigned
duties after written notice from the Company or an Affiliate, and a reasonable opportunity to cure, such failure or inability;
(5) any material breach by the Awardee of any employment or service agreement between the Awardee and the Company or an Affiliate,
which breach is not cured pursuant to the terms of such agreement; (6) the Awardee's conviction (including any plea of guilty or
nolo contendere) of any criminal act which impairs the Awardee's ability to perform his or her duties with the Company or an Affiliate;
or (7) violation of a material Company policy. The term "Good Reason" shall mean, as determined by the Administrator,
(A) a material adverse change in the Awardee's title, stature, authority, or responsibilities with the Company (or the Affiliate
employing him or her); (B) a material reduction in the Awardee's base salary or annual bonus opportunity; or (C) receipt of notice
that the Awardee's principal workplace will be relocated by more than 50 miles.


 


(B) Method
of Exercise. This Option is exercisable by delivering to the Administrator a fully executed "Exercise Notice"
or by any other method approved by the Administrator. The Exercise Notice shall provide that the Awardee is electing to exercise
the Option, the number of Shares in respect of which the Option is being exercised (the "Exercised Shares"), and
such other representations and agreements as may be required by the Administrator. Payment of the full aggregate Exercise Price
as to all Exercised Shares must accompany the Exercise Notice. This Option shall be deemed exercised upon receipt by the Administrator
of such fully executed Exercise Notice accompanied by such aggregate Exercise Price. The Awardee is responsible for filing any
reports of remittance or other foreign exchange filings required in order to pay the Exercise Price.


 


2.3 Limitation
on Exercise.


 


(A) The
grant of this Option and the issuance of Shares upon exercise of this Option are subject to compliance with all Applicable Laws.
This Option may not be exercised if the issuance of Shares upon exercise would constitute a violation of any Applicable Laws. In
addition, this Option may not be exercised unless (i) a registration statement under the Securities Act of 1933, as amended (the
"Securities Act") is in effect at the time of exercise of this Option with respect to the Shares; or (ii) in the
opinion of legal counsel to the Company, the Shares issuable upon exercise of this Option may be issued in accordance with the
terms of an applicable exemption from the registration requirements of the Securities Act. The Awardee is cautioned that unless
the foregoing conditions are satisfied, the Awardee may not be able to exercise the Option when desired even though the Option
is vested. As a further condition to the exercise of this Option, the Company may require the Awardee to satisfy any qualifications
that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation
or warranty with respect thereto as may be requested by the Company. Any Shares that are issued will be "restricted securities"
as that term is defined in Rule 144 under the Securities Act, and will bear an appropriate restrictive legend, unless they are
registered under the Securities Act. The Company is under no obligation to register the Shares issuable upon exercise of this Option.


 


(B) Special
Termination Period. If exercise of the Option on the last day of the termination period set forth in Section 1 is prevented
by operation of paragraph (A) of this Section 2.3, then this Option shall remain exercisable until 14 days after the first date
that paragraph (A) no longer operates to prevent exercise of the Option.


 


2.4 Method
of Payment. Payment of the aggregate Exercise Price shall be by any of the following methods; provided, however, the payment
shall be in strict compliance with all procedures established by the Administrator:


 


(A) cash;


 


(B) check
or wire transfer;


 


(C) subject
to any conditions or limitations established by the Administrator, other Shares that have a Fair Market Value on the date of surrender
or attestation equal to the aggregate Exercise Price;


 


(D) consideration
received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator (Officers and Directors
shall not be permitted to use this procedure if this procedure would violate Section 402 of the Sarbanes-Oxley Act of 2002, as
amended);


(E) subject
to any conditions or limitations established by the Administrator, retention by the Company of so many of the Shares that would
otherwise have been delivered upon exercise of the Option as have a Fair Market Value on the exercise date equal to the aggregate
exercise price of all Shares as to which the Option is being exercised, provided that the Option is surrendered and cancelled as
to such Shares; or


 


(F) any
combination of the foregoing methods of payment.


 


2.5 Leave
of Absence. The Awardee shall not incur a Termination of Service when the Awardee goes on a bona fide leave of absence,
if the leave was approved by the Company (or Affiliate employing him or her) in writing and if continued crediting of service is
required by the terms of the leave or by applicable law. The Awardee shall incur a Termination of Service when the approved leave
ends, however, unless the Awardee immediately returns to active work.


 


For purposes of ISOs, no
leave of absence may exceed three months, unless the right to reemployment upon expiration of such leave is provided by statute
or contract. If the right to reemployment is not so provided by statute or contract, the Awardee will be deemed to have incurred
a Termination of Service on the first day immediately following such three-month period of leave for ISO purposes and this Option
shall cease to be treated as an ISO and shall terminate upon the expiration of the three-month period that begins the date the
employment relationship is deemed terminated.


 


2.6 Non-Transferability
of Option. This Option may not be transferred in any manner other than by will or by the laws of descent and distribution,
and may be exercised during the lifetime of the Awardee only by the Awardee. The terms of this Option Agreement and the Plan shall
be binding upon the executors, administrators, heirs, successors, and assigns of the Awardee. This Option may not be assigned,
pledged, or hypothecated by the Awardee whether by operation of law or otherwise, and is not subject to execution, attachment,
or similar process. Notwithstanding the foregoing, if this Option is designated as a Nonstatutory Stock Option, the Administrator
may, in its sole discretion, allow the Awardee to transfer this Option as a gift to one or more family members. For purposes of
this Option Agreement, "family member" means a child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law
(including adoptive relationships), any individual sharing the Awardee's household (other than a tenant or employee), a trust in
which one or more of these individuals have more than 50% of the beneficial interest, a foundation in which the Awardee or one
or more of these persons control the management of assets, and any entity in which the Awardee or one or more of these persons
own more than 50% of the voting interest.


 


2.7 Term
of Option. This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised
during such term only in accordance with this Option Agreement and the Plan.


 


2.8 Tax
Obligations.


 


(A) Withholding
Taxes. The Awardee shall make appropriate arrangements with the Administrator for the satisfaction of all applicable Federal,
state, local, and foreign income taxes, employment tax, and any other taxes that are due as a result of the Option exercise. With
the Administrator's consent, these arrangements may include withholding Shares that otherwise would be issued to the Awardee pursuant
to the exercise of this Option. The Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts
are not delivered at the time of exercise.


 


(B) Notice
of Disqualifying Disposition of ISO Shares. If the Option is an ISO, and if the Awardee sells or otherwise disposes of any
of the Shares acquired pursuant to the exercise of the ISO on or before the later of (i) the date TWO (2) years after the
Grant Date, or (ii) the date one year after the date of exercise, the Awardee shall immediately notify the Administrator in
writing of such disposition. The Awardee may be subject to income tax withholding by the Company on the compensation income recognized
by the Awardee.


 


2.9 Special
Termination Period if the Awardee Subject to Section 16(b). If a sale within the applicable termination period set forth in
Section 1 of Shares acquired upon the exercise of this Option would subject the Awardee to suit under Section 16(b) of the
Exchange Act, this Option shall remain exercisable until the earliest to occur of (i) the TENTH (10th) day following
the date on which a sale of such shares by the Awardee would no longer be subject to such suit, (ii) the ONE HUNDRED NINTIETH (190th)
day after the Awardee's Termination of Service, or (iii) the Expiration Date.


 


2.10 Special
Termination Period if the Awardee Subject to Blackout Period. The Company may establish an Insider Trading Policy (as such
policy may be amended from time to time, the "Policy") relative to trading while in possession of material, undisclosed
information. Such Policy would prohibit officers, directors, employees, and consultants of the Company and its subsidiaries from
trading in securities of the Company during certain "Blackout Periods" as described in the Policy. If the last
day of the termination period set forth in Section 1 would be during such a Blackout Period, then this Option shall remain
exercisable until FOURTEEN (14) days after the first date that there is no longer in effect a Blackout Period applicable to the
Awardee.


 


2.11 Change
in Control. Upon a Change in Control before the Awardee's Termination of Service, the Option will be assumed or an equivalent
option or right substituted by the successor corporation or a parent or subsidiary of the successor corporation. If the successor
corporation refuses to assume or substitute for the Option, then immediately before and contingent on the consummation of the Change
in Control, the Awardee will fully vest in and have the right to exercise the Option. In addition, if the Option becomes fully
vested and exercisable in lieu of assumption or substitution in the event of a Change in Control, the Administrator will notify
the Awardee in writing or electronically that the Option will be fully vested and exercisable for a period determined by the Administrator
in its sole discretion, and the Option will terminate upon the expiration of such period.


 


2.12 Restrictions
on Resale. The Awardee shall not sell any Shares at a time when Applicable Law, Company policies or an agreement between the
Company and its underwriters prohibit a sale. This restriction shall apply as long as the Awardee is a Service Provider and for
such period after the Awardee's Termination of Service as the Administrator may specify.


 


2.13 Lock-Up
Agreement. In connection with any underwritten public offering of Shares made by the Company pursuant to a registration statement
filed under the Securities Act, the Awardee shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase
or make any short sale of, or otherwise dispose of any Shares (including but not limited to Shares subject to this Option) or any
rights to acquire Shares of the Company for such period beginning on the date of filing of such registration statement with the
Securities and Exchange Commission and ending at the time as may be established by the underwriters for such public offering; provided,
however, that such period shall end not later than ONE HUNDRED EIGHTY (180) days from the effective date of such registration statement.
The foregoing limitation shall not apply to shares registered for sale in such public offering.


 


2.14 Entire
Agreement; Governing Law. This Option Agreement and the Plan constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Awardee with
respect to the subject matter hereof, and may not be modified adversely to the Awardee's interest except by means of a writing
signed by the Company and Awardee. This Option Agreement is governed by the internal substantive laws, but not the choice of law
rules, of Nevada.


 


2.15 No
Guarantee of Continued Service. The vesting of the Option pursuant to the Vesting Schedule hereof is earned only by continuing
as a Service Provider at the will of the Company (and not through the act of being hired, being granted an Option, or purchasing
Shares hereunder). This Option Agreement, the transactions contemplated hereunder, and the Vesting Schedule set forth herein constitute
neither an express nor an implied promise of continued engagement as a Service Provider for the vesting period, for any period,
or at all, and shall not interfere with Awardee's right or the Company's right to terminate Awardee's relationship as a Service
Provider at any time, with or without Cause.


 


By the Awardee's signature
and the signature of the Company's representative below, the Awardee and the Company agree that this Option is granted under and
governed by the terms and conditions of this Option Agreement and the Plan. The Awardee has reviewed this Option Agreement and
the Plan in their entirety, has had an opportunity to obtain the advice of counsel before executing this Option Agreement and fully
understands all provisions of this Option Agreement and the Plan. The Awardee hereby agrees to accept as binding, conclusive, and
final all decisions or interpretations of the Administrator upon any questions relating to this Option Agreement and the Plan.


 


The Awardee further agrees
that the Company may deliver all documents relating to the Plan or this Option (including prospectuses required by the Securities
and Exchange Commission), and all other documents that the Company is required to deliver to its security Awardees or the Awardee
(including annual reports, proxy statements and financial statements), either by e-mail or by e-mail notice of a Web site location
where those documents have been posted. The Awardee may at any time (i) revoke this consent to e-mail delivery of those documents;
(ii) update the e-mail address for delivery of those documents; (iii) obtain at no charge a paper copy of those documents,
in each case by writing the Company at 17932 Sky Park Circle, Suite F, Irvine, California 92614.  The Awardee may request
an electronic copy of any of those documents by requesting a copy in writing from the Company. The Awardee understands that an
e-mail account and appropriate hardware and software, including a computer or compatible cell phone and an Internet connection,
will be required to access documents delivered by e-mail.


 


	
        AWARDEE:

         

        _________________________________

        Signature

         

        _________________________________

        Print Name

         

        _________________________________

        Residence Address
	
        CABINET GROW, INC.

         

        By:_________________________________

         

         

        Its:_________________________________



 




    	 



    	 



    

 


EXERCISE FORM


 


Cabinet Grow, Inc.


17932 Sky Park Cir., Ste. F


Irvine, CA 92614


 


Ladies and Gentlemen:


 


I hereby exercise the Option granted
to me on _______________, 20__, by CABINET GROW, INC. (the “Corporation”), subject to all the terms and provisions
thereof and of the 2015 Equity Compensation Plan (the “Plan”), and notify you of my desire to purchase ______
incentive shares and ______ non-qualified shares of Common Stock of the Corporation at a price of $_____ per share pursuant
to the exercise of said Option.


 


Payment Amount: $___________________


	 	 	 
	 	 	 
	Date:       	 	 
	 	 	Awardee Signature
	 	 	 
	 	 	Received by CABINET GROW, INC. on
	 	 	 
	 	 	 


 


Broker Information:


 


 


Firm Name


 


	 	 	 
	 	 	 
	Contact Person	 	 


 


	 	 	 
	 	 	 
	Broker Address	 	 


 


	 	 	 	 	 
	 	 	 	 	 
	City, State, Zip Code	 	Phone Number	 	 


 


	 	 	 
	 	 	 
	Broker Account Number	 	 


 


 


	 	 	 
	 	 	 
	Electronic Transfer Number: