Document:

EXHIBIT 10.5

 

 

NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE
UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THE SECURITIES ARE RESTRICTED AND MAY NOT BE OFFERED, RESOLD,
PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR THEREFROM.

 

ISSUE DATE: March 16, 2016

PRINCIPAL AMOUNT: $90,000

INTEREST RATE: 10%

Original Issue Discount (OID): 10%

 

EL CAPITAN PRECIOUS METALS, INC.

 

CONVERTIBLE PROMISSORY NOTE DUE MARCH 16, 2017

 

 

FOR VALUE RECEIVED, the
Company promises to pay to RIVER NORTH EQUITY LLC, the registered holder hereof (the "Holder"), the principal sum of
ninety thousand and 00/100 Dollars ($90,000) on March 16, 2017 (the “Maturity Date”).  The principal of this Note
is payable in United States dollars, at the address last appearing on the Note Register of the Company as designated in writing
by the Holder. The Company will pay the outstanding principal amount of this Note in cash on the Maturity Date to the registered
holder of this Note.  The forwarding of such wire transfer shall constitute a payment hereunder and shall satisfy and discharge
the liability for principal on this Note to the extent of the sum represented by such check or wire transfer plus any amounts so
deducted. This Note may be prepaid in full or in part at any time, or from time to time, at the sole option of the Company.

 

This Note is subject to the following additional
provisions:

 

1.       The Note is exchangeable for an equal
aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.  No
service charge will be made for such registration or transfer or exchange.

 

2.       Subject to Section 3 and the other terms
and conditions set forth in this Note, at any time after 180 days following the date of the Note, or earlier upon the occurrence
of an Event of Default that remains uncured, the Holder of this Note shall be entitled, any time thereafter to convert all or a
portion of the principal amount of this Note into shares (the “Shares”) of the Company’s common stock, par value
$0.001 per share (the “Common Stock”) at a conversion price for each share of Common Stock equal to sixty percent (60%)
of the Current Market Price (the “Conversion Price”). “Current Market Price” means the lowest closing bid
price for the Common Stock as reported by Bloomberg, LP for the ten (10) trading days ending on the trading day immediately before
the relevant Conversion Date (as defined below). The number of Shares issuable pursuant to a conversion shall equal the principal
amount (or portion thereof) of the Note to be converted, divided by the Conversion Price.

 

3.       Conversion shall be effectuated by surrendering
the Note to the Company, accompanied by or preceded by email or other delivery to the Company of the form of conversion notice
attached hereto as Exhibit A (a “Conversion Notice”), executed by the Holder evidencing such Holder's intention
to convert a specified portion hereof.  No fractional shares of Common Stock or scrip representing fractions of shares will
be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share.  The date on which
Conversion Notice is given (the "Conversion Date") shall be deemed to be the date on which the Holder emails or otherwise
delivers the Conversion Notice, duly executed, to the Company. Certificates representing Common Stock upon conversion will be delivered
within three (3) business days from the Conversion Date (“Delivery Date”).

 

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At least two (2) Trading
Days (as such term is defined in that certain Equity Purchase Agreement (the “Equity Purchase Agreement”) prior to
delivering a Conversion Notice to the Transfer Agent, Holder shall provide written notice to the Company of its intention to do
so (a “Preliminary Notice”) that specifies the portion of the outstanding principal amount of the Note to be converted
(the “Proposed Conversion Amount”). Holder shall not deliver a Conversion Notice to the Transfer Agent, and shall not
convert any portion of this Note, if prior to the expiration of such two (2) Trading Day period the Company either (i) prepays
the Proposed Conversion Amount, or (ii) delivers a Put Notice to Holder in the amount of sixty percent (60%) of the Proposed Conversion
Amount and agrees to use fifteen percent (15%) of the proceeds from the sale of the corresponding Put Shares to prepay a portion
of the outstanding principal amount of the Note. Holder may not deliver a Preliminary Notice within twelve (12) Trading Days following
any Put Date (as such term is defined in the Equity Purchase Agreement).

 

The Company shall pay any
payments required under this Section in immediately available funds upon demand as the Holder’s remedy for such delay.  Furthermore,
in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect
delivery of the Shares by close of business on the Delivery Date, unless such failure is due to causes beyond the Company’s
reasonable control or that of its Transfer Agent, the Holder will be entitled to revoke the relevant Conversion Notice by delivering
a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions
immediately prior to delivery of such Conversion Notice; provided, however, that an amount equal to any payments contemplated by
this Section which have accrued through the date of such revocation notice shall remain due and owing to the Converting Holder
notwithstanding such revocation.  

 

If, by the relevant Delivery
Date, the Company fails, unless such failure is due to causes beyond the Company’s reasonable control or that of its Transfer
Agent, for any reason to deliver the Shares and after such Delivery Date, the Holder of the Note being converted (a “Converting
Holder”) purchases, in an arm’s-length open market transaction, shares of Common Stock (the “Covering Shares”)
in order to make delivery in satisfaction of a sale of Common Stock by the Converting Holder (the “Sold Shares”), which
delivery such Converting Holder anticipated to make using the Shares to be issued upon such conversion (a “Buy-In”),
the Converting Holder shall have the right, to require the Company to pay to the Converting Holder, in addition to and not in lieu
of the amounts due hereunder (but in addition to all other amounts contemplated in other provisions of the Transaction Agreements,
and not in lieu of any such other amounts), the Buy-In Adjustment Amount (as defined below).  The “Buy-In Adjustment
Amount” is the amount equal to the excess, if any, of (x) the Converting Holder's total purchase price (including brokerage
commissions, if any) for the Covering Shares over (y) the net proceeds  (after brokerage commissions, if any) received by
the Converting Holder from the sale of the  Sold Shares.  The Company shall pay the Buy-In Adjustment Amount to the Company
in immediately available funds immediately upon demand by the Converting Holder.  By way of illustration and not in limitation
of the foregoing, if the Converting Holder purchases shares of Common Stock having a total purchase price (including brokerage
commissions) of $11,000 to cover a Buy-In with respect to shares of Common Stock it sold for net proceeds of $10,000, the Buy-In
Adjustment Amount which Company will be required to pay to the Converting Holder will be $1,000.

 

In lieu of delivering physical
certificates representing the Shares issuable upon conversion, provided the Company’s Transfer Agent is participating in
the Depository Trust Company (“DTC”) Fast Automated Securities Transfer program, upon request of the Holder and its
compliance with the provisions contained in this paragraph, so long as the certificates therefor do not bear a legend and the Holder
thereof is not obligated to return such certificate for the placement of a legend thereon, the Company shall use its best efforts
to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the
account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.

 

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The Holder of the Note shall
be entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement of any case under 11
U.S.C. §101 et seq. (the “Bankruptcy Code”).  In the event the Company is a debtor under the
Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. §362
in respect of such holder’s conversion privilege.  The Company hereby waives, to the fullest extent permitted, any rights
to relief it may have under 11 U.S.C. §362 in respect of the conversion of the Note. This Note has been issued subject to
investment representations of the original purchaser hereof and may be transferred or exchanged only in compliance with the Securities
Act of 1933, as amended (the "Act"), and other applicable state and foreign securities laws. In the event of any proposed
transfer of this Note, the Company may require, prior to issuance of a new Note in the name of such other person, that it receive
reasonable transfer documentation including legal opinions that the issuance of the Note in such other name does not and will not
cause a violation of the Act or any applicable state or foreign securities laws. Prior to due presentment for transfer of this
Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's
Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or
not this Note be overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

 

4.       No provision of this Note shall alter
or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of this Note at the time, place,
and rate, and in the coin or currency, herein prescribed.  This Note is a direct obligation of the Company.

 

5.       The Holder of the Note, by acceptance
hereof, agrees that this Note is being acquired for investment and that such Holder will not offer, sell or otherwise dispose of
this Note or the shares of Common Stock issuable upon conversion thereof except under circumstances which will not result in a
violation of the Act or any applicable state Blue Sky or foreign laws or similar laws relating to the sale of securities.

 

6.       This Note shall be governed by and construed
in accordance with the laws of the State of Illinois. Each of the parties consents to the jurisdiction of the federal courts whose
districts encompass any part of the City of Chicago or the state courts of the State of Illinois sitting in the City of Chicago
in connection with any dispute arising under this Note and hereby waives, to the maximum extent permitted by law, any objection,
including any objection based on forum non coveniens, to the bringing of any such proceeding in such jurisdictions. Each of the
parties hereby waives the right to a trial by jury in connection with any dispute arising under this Note.

 

7.       The following shall constitute an "Event
of Default":

 

a.       The Company shall default in the payment
of principal on this Note and same shall continue for a period of five (5) days; or

 

b.       Any of the representations or warranties
made by the Company herein, in any certificate or financial or other written statements heretofore or hereafter furnished by the
Company in connection with the execution and delivery of this Note shall be false or misleading in any material respect at the
time made; or

 

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c.       The Company shall fail
to perform or observe, in any material respect, any other covenant, term, provision, condition, agreement or obligation of any
Note and such failure shall continue uncured for a period of five (5) days after written notice from the Holder of such failure;
or

 

d.       The Company shall fail to use at least
15% of the proceeds from each sale of Put Shares (as such term is defined in the Equity Purchase Agreement dated as of the date
hereof by and between the Company and the Holder) to prepay this Note; or

 

e.       The Company shall (1) make an assignment
for the benefit of creditors or commence proceedings for its dissolution; or (2) apply for or consent to the appointment of a trustee,
liquidator or receiver for its or for a substantial part of its property or business; or

 

f.       A trustee, liquidator or receiver shall
be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged
within sixty (60) days after such appointment; or

 

g.       Any governmental agency or any court
of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial
portion of the properties or assets of the Company and shall not be dismissed within sixty (60) days thereafter; or

 

h.       Any money judgment, writ or warrant of
attachment, or similar process in excess of one hundred thousand ($100,000) dollars in the aggregate shall be entered or filed
against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period
of thirty (30) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

i.       Bankruptcy, reorganization, insolvency
or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall
be instituted by or against the Company and, if instituted against the Company, shall not be dismissed within sixty (60) days after
such institution or the Company shall by any action or answer approve of, consent to, or acquiesce in any such proceedings or admit
the material allegations of, or default in answering a petition filed in any such proceeding; or

 

j.       The Company shall have its Common Stock
suspended from trading or delisted such that it is no longer listed or quoted on any securities exchange or quotation system, in
either event for in excess of fifteen consecutive trading days.

 

k.       The Company shall fail to file a registration
statement with the Securities and Exchange Commission registering the resale of the Put Shares by the forty-fifth (45th)
day following the date of this Note.

 

Then, or at any time thereafter,
and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall
not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder
may consider all obligations under this Note immediately due and payable within five (5) days of notice, without presentment, demand,
protest or notice of any kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments contained
to the contrary notwithstanding, and the Holder may immediately enforce any and all of the Holder's rights and remedies provided
herein or any other rights or remedies afforded by law.

 

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8.       The Holder may not convert this Note
to the extent such conversion would result in the Holder, together with any affiliate thereof, beneficially owning (as determined
in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 9.99% of the then issued
and outstanding shares of Common Stock held by such Holder after application of this Section.  Since the Holder will not be
obligated to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless
the conversion at issue would result in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares
of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder
shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular
conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination
of which portion of the principal amount of Note are convertible shall be the responsibility and obligation of the Holder.  If
the Holder has delivered a Conversion Notice for a principal amount of Note that would result in the issuance of in excess of the
permitted amount hereunder, without regard to any other shares that the Holder or its affiliates may beneficially own, the Company
shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted
on such Conversion Date and, at the option of the Holder, either retain any principal amount tendered for conversion in excess
of the permitted amount hereunder for future conversions or return such excess principal amount to the Holder.  The provisions
of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon not less than thirty (30) days
prior notice to the Company. Other Holders shall be unaffected by any such waiver.

 

9.       Nothing contained in this Note shall
be construed as conferring upon the Holder the right to vote or to receive dividends or to consent or receive notice as a shareholder
in respect of any meeting of shareholders or any rights whatsoever as a shareholder of the Company, unless and to the extent converted
in accordance with the terms hereof.

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed by an officer thereunto duly authorized.

 

Dated: March 16, 2016

 

	EL CAPITAN PRECIOUS METALS, INC.	 
	 	 	 
	 	 	 
	By:	/s/ Charles C. Mottley	 

 

 

ATTESTOR

	 	 	 
	 	 	 
	By:	/s/ Steve Antol	 

 

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EXHIBIT A – CONVERSION NOTICE

 

The undersigned hereby elects to convert principal
under the Note due March 16, 2017 of EL CAPITAN PRECIOUS METALS, INC., a Nevada corporation (the “Company”),
into shares of common stock (the “Common Stock”), of the Company according to the conditions hereof, as of the
date written below.  If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably
requested by the Company to ensure that the issuance of shares, and any transfer thereof, is and has been made in compliance with
the United Stated federal and state securities laws.  No fee will be charged to the holder for any conversion, except for
such transfer taxes, if any.

 

By the delivery of this Conversion Notice the
undersigned represents and warrants to the Company that its ownership of the Common Stock does not exceed the amounts specified
under Section 8 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

 

 

	Conversion Calculations:	______________________________________________________
	 	 
	Date to Effect Conversion:	______________________________________________________
	 	 
	Principal Amount of Debenture to be converted:	
         

        ______________________________________________________

	 	 
	Signature:	______________________________________________________
	 	 
	Name:	______________________________________________________
	 	 
	Shares to be issued to:	______________________________________________________
	 	 
	EIN:	______________________________________________________
	 	 
	Address for Delivery of Common Stock Certificate(s):	
         

        ______________________________________________________

	 	 
	OR	 
	 	 
	DWAC Instructions:	______________________________________________________
	 	 
	Broker Number:	______________________________________________________
	 	 
	Account Number:	______________________________________________________THIS
WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH
SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

WARRANT
TO PURCHASE COMMON STOCK

 

OF

 

DIGIPATH,
INC.

 

Original
Issue Date: March 15, 2016

 

This
is to certify that, FOR VALUE RECEIVED, _______________ or assigns (“Holder”), is entitled to purchase, subject to
the provisions of this Warrant, from DIGIPATH, INC., a Nevada corporation (the “Company”), _______________________(______)
fully paid, validly issued and nonassessable shares of common stock, $0.001 par value, of the Company (“Common Stock”)
at a price of $0.30 per share. This Warrant may be exercised at any time or from time to time during the three-year period (the
“Exercise Period”) commencing on the Original Issue Date set forth above. The number of shares of Common Stock to
be received upon the exercise of this Warrant and the price to be paid for each share of Common Stock may be adjusted from time
to time as hereinafter set forth. The shares of Common Stock deliverable upon such exercise, and as adjusted from time to time,
are hereinafter sometimes referred to as “Warrant Shares” and the exercise price of a share of Common Stock in effect
at any time with respect to any Warrant Shares, and as adjusted from time to time, is hereinafter sometimes referred to as the
“Exercise Price.”

 

1. Exercise
Of Warrant; Cancellation Of Warrant.

 

(a) This
Warrant may be exercised in whole or in part at any time or from time to time during the Exercise Period; provided, however, that
if either such day is a day on which banking institutions in the State of Nevada are authorized by law to close, then on the next
succeeding day which shall not be such a day.

 

(b) This
Warrant may be exercised by presentation and surrender hereof to the Company at its principal office with the Purchase Form annexed
hereto duly executed and accompanied by payment of the applicable Exercise Price for the number of Warrant Shares specified in
such form. As soon as practicable after each such exercise of this Warrant, but not later than seven (7) days following the receipt
of good and available funds, the Company shall issue and deliver to the Holder a certificate or certificate for the Warrant Shares
issuable upon such exercise, registered in the name of the Holder or its designee. If this Warrant should be exercised in part
only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the rights
of the Holder thereof to purchase the balance of the Warrant Shares purchasable thereunder. Upon receipt by the Company of this
Warrant at its office in proper form for exercise, the Holder shall be deemed to be the holder of record of the shares of Common
Stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates
representing such shares of Common Stock shall not then be physically delivered to the Holder.

 

    	 

     

    

 

(c) At
any time during the Exercise Period, the Holder may, at its option, exercise this Warrant on a cashless basis by exchanging this
Warrant, in whole or in part (a “Warrant Exchange”), into the number of Warrant Shares determined in accordance with
this Section 1, by surrendering this Warrant at the principal office of the Company or at the office of its stock transfer agent,
accompanied by a notice stating such Holder’s intent to effect such exchange, the number of Warrant Shares to be exchanged
and the date on which the Holder requests that such Warrant Exchange occur (the “Notice of Exchange”). The Warrant
Exchange shall take place on the date specified in the Notice of Exchange or, if later, the date the Notice of Exchange is received
by the Company (the “Exchange Date”). Certificates for the shares issuable upon such Warrant Exchange and, if applicable,
a new warrant of like tenor evidencing the balance of the shares remaining subject to this Warrant, shall be issued as of the
Exchange Date and delivered to the Holder within seven (7) days following the Exchange Date. In connection with any Warrant Exchange,
this Warrant shall represent the right to subscribe for and acquire the number of Warrant Shares equal to (i) the number of Warrant
Shares specified by the Holder in its Notice of Exchange (the “Total Number”) less (ii) the number of Warrant Shares
equal to the quotient obtained by dividing (A) the product of the Total Number and the Exercise Price with respect to such Warrant
Shares by (B) the current market value of a share of Common Stock. Current market value shall have the meaning set forth Section
3 below, except that for purposes hereof, the date of exercise, as used in such Section 3, shall mean the Exchange Date.

 

2. Reservation
Of Shares. The Company shall at all times reserve for issuance and/or delivery upon exercise of this Warrant such number of
shares of its Common Stock as shall be required for issuance and delivery upon exercise of the Warrants.

 

3. Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a share called for upon any exercise hereof, the Company shall pay to the Holder an amount in cash
equal to such fraction multiplied by the current market value of the shares of Common Stock, determined as follows:

 

(a) If
the Common Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such exchange, the
current market value shall be the last reported sale price of the Common Stock on such exchange or market on the last business
day prior to the date of exercise of this Warrant or if no such sale is made on such day, the average of the closing bid and asked
prices for such day on such exchange or market; or

 

(b) If
the Common Stock is not so listed or admitted to unlisted trading privileges, but is quoted on the OTC Bulletin Board or by the
OTC Markets Group, Inc., the current market value shall be the mean of the last reported bid and asked prices reported by the
OTC Bulletin Board or the OTC Markets Group, Inc., as applicable, on the last business day prior to the date of the exercise of
this Warrant; or

 

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(c) If
the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the
current market value shall be an amount determined in such reasonable manner as may be prescribed by the Board of Directors of
the Company.

 

4. Exchange,
Transfer, Assignment Or Loss Of Warrant. This Warrant is exchangeable, without expense, at the option of the Holder, upon
presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other warrants of different
denominations entitling the holder thereof to purchase in the aggregate the same number of shares of Common Stock purchasable
hereunder. Upon surrender of this Warrant to the Company at its principal office or at the office of its stock transfer agent,
if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall,
without charge, execute and deliver a new Warrant in the name of the assignee named in such instrument of assignment and this
Warrant shall promptly be cancelled. This Warrant may be divided or combined with other warrants which carry the same rights upon
presentation hereof at the principal office of the Company or at the office of its stock transfer agent, if any, together with
a written notice specifying the names and denominations in which new Warrants are to be issued and signed by the Holder hereof.
The term “Warrant” as used herein includes any Warrants into which this Warrant may be divided or exchanged. Upon
receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the
case of loss, theft or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant,
if mutilated, the Company will execute and deliver a new Warrant of like tenor and date. Any such new Warrant executed and delivered
shall constitute an additional contractual obligation on the part of the Company, whether or not this Warrant so lost, stolen,
destroyed, or mutilated shall be at any time enforceable by anyone.

 

5. Rights
Of The Holder. The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder in the Company, either at
law or equity, and the rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the
Company except to the extent set forth herein.

 

6. Anti-Dilution
Provisions. The Exercise Price in effect at any time, and the number and kind of securities purchasable upon the exercise
of the Warrants shall be subject to adjustment from time to time upon the happening of certain events as follows:

 

(a) In
case the Company shall hereafter (i) declare a dividend or make a distribution on its outstanding shares of Common Stock in shares
of Common Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock into a greater number of shares, or (iii)
combine or reclassify its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect at
the time of the record date for such dividend or distribution or of the effective date of such subdivision, combination or reclassification
shall be adjusted so that it shall equal the price determined by multiplying the Exercise Price by a fraction, the denominator
of which shall be the number of shares of Common Stock outstanding after giving effect to such action, and the numerator of which
shall be the number of shares of Common Stock outstanding immediately prior to such action. Such adjustment shall be made successively
whenever any event listed above shall occur.

 

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(b) Whenever
the Exercise Price payable upon exercise of each Warrant is adjusted pursuant to Subsection (a) above, the number of Warrant Shares
purchasable upon exercise of this Warrant shall simultaneously be adjusted by multiplying the number of Warrant Shares initially
issuable upon exercise by the Exercise Price in effect on the date hereof and dividing the product so obtained by the Exercise
Price, as adjusted.

 

(c) No
adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least one
cent ($0.01) in such price; provided, however, that any adjustments which by reason of this Subsection (c) are not required to
be made shall be carried forward and taken into account in any subsequent adjustment required to be made hereunder. All calculations
under this Section 6 shall be made to the nearest cent or to the nearest one-hundredth of a share, as the case may be. Anything
in this Section 6 to the contrary notwithstanding, the Company shall be entitled, but shall not be required, to make such changes
in the Exercise Price, in addition to those required by this Section 6, as it shall determine, in its sole discretion, to be advisable
in order that any dividend or distribution in shares of Common Stock, or any subdivision, reclassification or combination of Common
Stock, hereafter made by the Company shall not result in any Federal income tax liability to the holders of Common Stock or securities
convertible into Common Stock (including Warrants).

 

(d) The
form of this Warrant need not be changed because of any adjustment in the number of Exercise Price or Warrant Shares subject to
this Warrant.

 

7. Notices
To Warrant Holders. So long as this Warrant shall be outstanding, (i) if the Company shall pay any dividend or make any distribution
upon the Common Stock or (ii) if the Company shall offer to the holders of Common Stock for subscription or purchase by them any
share of any class or any other rights or (iii) if any capital reorganization of the Company, reclassification of the capital
stock of the Company, consolidation or merger of the Company with or into another corporation, sale, lease or transfer of all
or substantially all of the property and assets of the Company to another corporation, or voluntary or involuntary dissolution,
liquidation or winding up of the Company shall be effected, then in any such case, the Company shall cause to be mailed by certified
mail to the Holder, at least fifteen days prior the date specified in (x) or (y) below, as the case may be, a notice containing
a brief description of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend,
distribution or rights, or (y) such reclassification, reorganization, consolidation, merger, conveyance, lease, dissolution, liquidation
or winding up is to take place and the date, if any is to be fixed, as of which the holders of Common Stock or other securities
shall receive cash or other property deliverable upon such reclassification, reorganization, consolidation, merger, conveyance,
dissolution, liquidation or winding up.

 

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8. Reclassification,
Reorganization Or Merger. In case of any reclassification, capital reorganization or other change of outstanding shares of
Common Stock of the Company, or in case of any consolidation or merger of the Company with or into another corporation (other
than a merger with a subsidiary in which merger the Company is the continuing corporation and which does not result in any reclassification,
capital reorganization or other change of outstanding shares of Common Stock of the class issuable upon exercise of this Warrant)
or in case of any sale, lease or conveyance to another corporation of the property of the Company as an entirety, the Company
shall, as a condition precedent to such transaction, cause effective provisions to be made so that the Holder shall have the right
thereafter by exercising this Warrant at any time prior to the expiration of the Warrant, to purchase the kind and amount of shares
of stock and other securities and property receivable upon such reclassification, capital reorganization and other change, consolidation,
merger, sale or conveyance by a holder of the number of shares of Common Stock which might have been purchased upon exercise of
this Warrant immediately prior to such reclassification, change, consolidation, merger, sale or conveyance. Any such provision
shall include provision for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Warrant. The foregoing provisions of this Section 8 shall similarly apply to successive reclassifications, capital
reorganizations and changes of shares of Common Stock and to successive consolidations, mergers, sales or conveyances. In the
event that in connection with any such capital reorganization or reclassification, consolidation, merger, sale or conveyance,
additional shares of Common Stock shall be issued in exchange, conversion, substitution or payment, in whole or in part, for a
security of the Company other than Common Stock, any such issue shall be treated as an issue of Common Stock covered by the provisions
of Section 6 hereof.

 

9. Representations
of Holder.

 

(a) The
Holder represents and warrants that it is acquiring the Warrant and the Warrant Shares solely for its account for investment and
not with a view to or for sale or distribution of said Warrant or Warrant Shares or any part thereof. The Holder also represents
that the entire legal and beneficial interests of the Warrant and Warrant Shares the Holder is acquiring are being acquired for,
and will be held for, its account only.

 

(b) The
Holder understands that the Warrant and the Warrant Shares have not been registered under the Securities Act of 1933, as amended
(the “Act”) on the basis that no distribution or public offering of the stock of the Company is to be effected. The
Holder realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has a
present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a
distribution or otherwise), granting any participation in, or otherwise distributing the securities. The Holder has no such present
intention.

 

(c) The
Holder recognizes that the Warrant and the Warrant Shares must be held indefinitely unless they are subsequently registered under
the Act or an exemption from such registration is available. The Holder recognizes that the Company has no obligation to register
the Warrant or the Warrant Shares, or to comply with any exemption from such registration.

 

    	5

     

    

 

(d) The
Holder is aware that neither the Warrant nor the Warrant Shares may be sold pursuant to Rule 144 adopted under the Act unless
certain conditions are met, including, among other things, the existence of a public market for the shares, the availability of
certain current public information about the Company, the resale following the required holding period under Rule 144 and the
number of shares being sold during any three month period not exceeding specified limitations.

 

(e) The
Holder further agrees not to make any disposition of all or any part of the Warrant or Warrant Shares in any event unless and
until the Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall
have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, for the Holder to the effect that
such disposition will not require registration of such Warrant or Exercise Shares under the Act or any applicable state securities
laws. The Company agrees that it will not require an opinion of counsel with respect to transactions under Rule 144 of the Securities
Act of 1933, as amended, except in unusual circumstances.

 

(f) The
Holder understands and agrees that all certificates evidencing the Warrant Shares to be issued to the Holder may bear the following
legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

(g) The
Holder is an “accredited investor” as defined in Regulation D promulgated under the Act.

 

10. Acceptance.
Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained
herein.

 

11. Governing
Law. This Warrant is made under and shall be governed by and construed
in accordance with the internal laws of the State of Nevada without regard to principles relating to conflict of laws.

 

[Signature
Page Follows]

 

    	6

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly signed as of the Original Issue Date first above referenced.

 

	 	DIGIPATH,
    INC.
	 	 	 
	 	By:	 
	 	Name:	Todd
    Peterson
	 	Title:	CFO

 

    	7

     

    

 

PURCHASE
FORM

 

Dated:
________________________

 

The
undersigned hereby irrevocably elects to exercise the within Warrant to the extent of purchasing _________ shares of Common Stock
of DigiPath, Inc. and hereby makes payment of ______ in payment of the actual exercise price thereof.

 

INSTRUCTIONS
FOR REGISTRATION OF STOCK

 

	Name:
    	 	 
	(Please
    typewrite or print in block letters)	 
	 	 	 
	Address:	 	 
	 	 	 
	Signature:	 	 

 

    	 

    	 	 	 

    

 

ASSIGNMENT
FORM

 

FOR
VALUE RECEIVED, __________________________ hereby sells, assigns and transfers unto

 

	Name:
    	 	 
	(Please
    typewrite or print in block letters)	 
	 	 	 
	Address:	 	 

 

the
right to purchase Common Stock of DigiPath, Inc. represented by this Warrant to the extent of shares as to which such right is
exercisable and does hereby irrevocably constitute and appoint Attorney, to transfer the same on the books of the Company with
full power of substitution in the premises.

 

	Date:	 	 
	 	 	 
	Signature:

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