Document:

Exhibit 10.3

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

THIS
EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is
entered into as of July 6, 2016 (the “Effective Date”), by and between CV SCIENCES, INC., a Delaware corporation (the
"Company"), and MICHAEL MONA III ("Executive").

 

Recitals

 

A.        
The Company operates two distinct business segments: a specialty pharmaceutical division focused on developing and commercializing
novel therapeutics utilizing synthetic Cannabidiol (“CBD”); and, a consumer product division in manufacturing, marketing
and selling plant-based CBD product to a range of market sectors.

 

B.       
Executive is the Chief Operating Officer of the Company, and Executive and the Company desire to set forth the terms and
conditions of the Executive's employment by the Company.

 

Agreement

 

NOW,
THEREFORE, in consideration of these premises, the mutual covenants and agreements of the parties hereunder, and for other good
and valuable consideration the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.        Employment
and Duties.

 

1.1                
Position. The Company hereby employs Executive, and Executive hereby accepts employment with the Company, as Chief
Operating Officer of the Company.

 

1.2                
Duties. Executive agrees to devote his best efforts, and shall have primary responsibility
within the Company to act as the senior operations executive of the Company. Executive shall perform his duties in a trustworthy,
businesslike and loyal manner. 

 

1.3                  
Reporting. Executive shall report to the Chief Executive Officer.

 

1.4                  
Place of Employment. Executive shall perform his services hereunder at the Company's Las Vegas, NV and San Diego,
CA offices. Executive's primary office shall be in San Diego, CA, however, Executive shall spend a portion of his time in the Company's
primary office for operations and for certain executive functions of the Company located in Las Vegas, NV.

 

1.5                  
Change of Duties. The duties of Executive may reasonably be modified from time to time by the mutual consent of the
Company and Executive without resulting in a rescission of this Agreement. The mutual written consent of the Company and Executive
shall constitute execution of that modification. Notwithstanding any such change, the employment of Executive shall be construed
as continuing under this Agreement as so modified.

 

1.6                 
Devotion of Time to Company's Business. During the Term of this Agreement (as such term
is defined in Section 1.7 hereof), Executive agrees (i) to devote substantially all of his productive time, ability and
attention to the business of the Company during normal working hours, (ii) not to engage in any other business duties or business
pursuits whatsoever which conflict with his duties to the Company, (iii) whether directly or indirectly, not to render any services
of a commercial or professional nature to any individual, trust, partnership, company, corporation, business, organization, group
or other entity (each, a "Person") which conflict with his duties to the Company, whether for compensation or otherwise,
without the prior written consent of the Board of Directors, and (iv) whether directly or indirectly, not to acquire, hold or retain
more than a one percent (1%) interest in any business competing with or similar in nature to the business of the Company or any
of its Affiliates (as such term is defined below); provided, however, the expenditure of reasonable amounts of time for
other matters and charitable, educational and professional activities or, subject to the foregoing, the making of passive personal
investments shall not be deemed a breach of this Agreement or require the prior written consent of the Company if those activities
do not materially interfere with the services required of Executive under this Agreement. For purposes of this Agreement, "Affiliates"
shall mean any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under
common control with, the Company.

 

 

 

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1.7               
Term. Unless sooner terminated as provided in Section 4 hereof, the term of this Agreement shall commence
on the Effective Date and shall continue through December 31, 2018 (the "Term”). The Company and Executive shall consult
on extension of the Term as soon as reasonably practicable in the month of September 2018 but neither the Company nor Executive
shall be under any obligation to extend the Term. The Term, together with any extensions or renewal terms shall be referred to
in this Agreement as the "Term of this Agreement."

 

1.8               
Observance of Company Rules. Regulations and Policies. Executive shall duly, punctually
and faithfully perform and observe any and all rules, regulations and policies which the Company may now or hereafter reasonably
establish governing the conduct of its business or its employees to the extent such rules,
regulations and policies are not in conflict with this Agreement. Executive shall promptly provide written notice to the Board
of Directors of any such apparent conflict of which Executive becomes aware.

 

1.9               
Intellectual Property. Executive hereby assigns and agrees to assign in the future to the Company all Executive’s
right, title and interest in and to any and all such work products and designs (whether or not patentable or registerable under
copyright or similar statutes) made or conceived or reduced to practice or learned by Executive, either individually or jointly
with others, during Executive’s employment with the Company (“Intellectual Property”).

 

2.       Compensation.

 

2.1                 
Base Salary. During the Term of this Agreement, the Company shall pay to Executive or his nominee an annual base
salary in such amounts as the Compensation Committee of the Board of Directors (the "Compensation Committee") shall recommend
to the full Board of Directors for approval (the "Base Salary") and the Base Salary for 2016 shall initially be set at
$225,000, commencing on the date the Chief Executive Officer reasonably determines such increase from Executive’s current
salary of $180,000 is prudent, payable in accordance with the Company's standard payroll procedures in effect at the time of payment.
The Company shall withhold from any payroll or other amounts payable to Executive pursuant to this Agreement all federal, state,
city or other taxes and contributions as are required pursuant to any law or governmental regulation or ruling now applicable or
that may be enacted and become applicable in the future.

 

2.2                
Performance Bonuses. In addition to the Base Salary, the Company may pay to Executive, or his nominee, annual bonuses
based on the Company's performance and/or Executive's performance (“Annual Bonus”) as follows:

 

(a)            
Bonus based on Achievement of Annual Performance Goals. Based upon performance of the Company as reflected by satisfaction
of the performance goals listed in Exhibit A, attached hereto, the Company may pay Executive, or his nominee, a bonus in
addition to Base Salary in such amount as may be determined by the Board of Directors.

 

(b)           
Establishment of Annual Bonus Performance Goals. The Company may propose new performance goals for purposes of determining
additional annual bonuses payable to Executive, or his nominee, in consultation with Executive.

 

The targeted amount of the Annual
Bonus shall be 40% of Executive’s then effective Base Salary; provided, however, that the payment and amount of any Annual
Bonus shall be in the sole discretion of the Board of Directors.

 

 

 

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2.3              
Stock Options.

 

(a)               
The Company and Executive acknowledge that on July 6, 2016, the Board approved upon recommendation by the Compensation Committee
the issuance of stock options to Executive to purchase 4,000,000 shares of the Common Stock of the Company (the “Stock Options”).
The Stock Options shall be issued to Executive under applicable exemptions from securities law registration, and shall not be issued
under the Company’s Amended and Restated 2013 Equity Incentive Plan (“Plan”). Executive has had the opportunity
to consult with his financial and tax advisors regarding the Stock Options and, particularly, the tax and other financial effect
and results of Executive receiving stock options outside of the Plan.

 

(b)              
The Stock Options shall vest and become exercisable solely upon achievement of the organizational performance goals set
forth in Exhibit B attached hereto, or as more particularly set forth in Section 4.7 hereof.

 

(c)               
In the event of a sale of the Company or other change of control transaction (as customarily defined and set forth
in Executive’s Stock Option Grant to be delivered concurrently herewith), or upon a Disposition Event, as defined under the
Agreement and Plan of Reorganization dated December 30, 2015 by and among CannaVest Corp., CannaVest Merger Sub, Inc., CannaVest
Acquisition LLC, CanX, Inc. and The Starwood Trust, the Stock Options shall immediately vest and become exercisable.

 

2.4                     
Incentive Plans. In addition to all other benefits and compensation provided by this Agreement, Executive shall be
eligible to participate in such of the Company's equity, compensation and incentive plans as are generally available to any of
the management executives of the Company, including without limitation any executive and performance bonus or incentive plans.

 

2.5                     
Vacation. Executive shall be entitled to such annual vacation time with full pay as the Company may provide in its
standard policies and practices for any other management executives; provided, however, that in any event Executive shall
be entitled to a minimum of twenty (20) days annual paid vacation time exclusive of holidays.

 

2.6              
Directors and Officers Liability Insurance. Executive shall be entitled to participation in, and have the benefit
of directors’ and officers’ liability insurance providing coverage consistent with standards in the life science industry.

 

2.7              
Term Life Insurance. The Company shall pay directly to the insurance carrier the cost of premiums due on a term
life insurance in the amount of $5,000,000, with such beneficiary or beneficiaries thereunder as may be designated from time to
time by Executive. The Company shall reimburse Executive all amounts to maintain such policy in full force and effect during the
Term of this Agreement.

 

2.8              
Disability Insurance. The Company shall procure and maintain a disability insurance policy and the Company shall
pay the premiums due on such policy and maintain such policy in full force and effect during the Term of this Agreement.

 

2.9              
Outside Counsel for Executive. In order for Executive to have the benefit of counsel to advise and counsel Executive
with respect to this Agreement, the Company shall pay the reasonable attorneys' fees and expenses incurred by Executive in connection
with such advice and counsel and the drafting and execution of this Agreement.

 

2.10          
Other Benefits. Executive shall participate in and have the benefits of all present and future vacation, holiday,
paid leave, unpaid leave, life, accident, disability, dental, vision and health insurance plans, pension, profit-sharing and savings
plans and all other plans and benefits which the Company now or in the future from time to time makes available to any of its
management executives.

 

 

 

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2.11           Withholding.
The parties shall comply with all applicable legal withholding requirements in connection with all regular monthly and/or bi-monthly
compensation payable to Executive hereunder.

 

3.        Expense
Reimbursement. The Company shall reimburse Executive for all business travel and other out-of-pocket expenses reasonably incurred
by Executive in the course of performing his duties under this Agreement. All reimbursable expenses shall be appropriately documented
and shall be in reasonable detail and in a format and manner consistent with the Company's expense reporting policy, as well as
applicable federal and state tax record keeping requirements.

 

4.        Termination
and Rights on Termination. This Agreement shall terminate upon the occurrence of any of the following events:

 

4.1              
Death. Upon the death of Executive, the Company shall, within thirty (30) days of receiving notice of such death,
pay Executive's estate or its nominee all salary and other compensation hereunder, then due and payable and all accrued vacation
pay and bonuses, if any, in each case payable or accrued through the date of death. In addition, the Company shall pay Executive's
estate, or its nominee, at the time or times otherwise payable under the terms of this Agreement, all salary and accrued benefits
that would have been payable hereunder by the Company to Executive during the one-year period immediately following Executive's
death. Any payment due under this Section 4.1 may be funded by one or more policies of life insurance to be purchased by
the Company and which provide for a benefit in the amount payable to Executive as beneficiary under such policy or policies equal
to that due Executive under this Section. In the event the Company purchases such policy or policies and thereafter maintains such
policy or policies in continuous and full force and effect during the term hereof, then Executive agrees to look solely to such
policy or policies for payment of any amount due hereunder; provided, however, that in the event the Company does not purchase
such policy or policies and thereafter maintain such policy or policies in continuous and full force and effect during term hereof,
then the Company shall be directly and fully obligated to Executive for such payment.

 

4.2              
Disability. Upon the mental or physical Disability (as such term is defined below) of Executive, the Company shall,
within thirty (30) days following the determination of Disability, pay Executive or his nominee all salary then due and payable
and all accrued vacation pay and bonuses, if any, in each case payable or accrued through the date of determination. In addition,
the Company shall pay all salary and accrued benefits that would have been payable hereunder by the Company to Executive (or his
nominee) during the one-year period immediately following Executive's disability. For purposes of this Agreement, "Disability"
shall mean a physical or mental condition, verified by a physician designated by the Company, which prevents Executive from carrying
out one or more of the material aspects of his assigned duties for at least ninety (90) consecutive days, or for a total of ninety
(90) days in any six (6) month period. Any payment due under this Section 4.2 may be funded by one or more policies of disability
insurance to be purchased by the Company and which provide for a benefit in the amount payable to Executive as beneficiary under
such policy or policies equal to that due Executive under this Section. In the event the Company purchases such policy or policies
and thereafter maintains such policy or policies in continuous and full force and effect during the term hereof, then Executive
agrees to look solely to such policy or policies for payment of any amount due hereunder; provided, however, that in the event
the Company does not purchase such policy or policies and thereafter
maintain such policy or policies in continuous and full force and effect during term hereof, then the Company shall be directly
and fully obligated to Executive for such payment.

 

4.3              
Termination by the Company for Cause. Upon delivery by the Board to Executive of a written notice terminating this
Agreement for Cause (as such term is defined below), which notice shall be supported by a reasonably detailed statement of the
relevant facts and reasons for termination, the Company shall, within thirty (30) days following such termination, pay Executive
or his nominee all salary then due and payable through the date of termination. Executive shall not be entitled to any severance
compensation or any accrued vacation pay or bonuses. For purposes of this Agreement, "Cause" shall mean:

 

(a)               
Executive shall have committed an act of fraud, embezzlement or theft with respect to the property or business of the Company,
in any such event in such a manner as to cause material loss, damage or injury to the Company;

 

 

 

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(b)              
Executive shall have materially breached this Agreement as determined by the Board and such breach shall have continued
for a period of twenty (20) days after receipt of written notice from the Board specifying such breach;

 

(c)               
Executive shall have been grossly negligent in the performance of his duties hereunder, intentionally not performed or mis-performed
any of such duties, or refused to abide by or comply with the reasonable and lawful directives of the Board of Directors, in each
case as reasonably determined by the Board, which action shall have continued for a period of twenty (20) days after receipt of
written notice from the Board demanding such action cease or be cured; or

 

(d)              
Executive shall have been found guilty of, or has plead nolo contendere to, the commission of a felony offense or
other crime involving moral turpitude.

 

4.4              
Termination by the Company Without Cause. In the event the Board delivers to Executive a written notice terminating
Executive's employment under this Agreement for any reason without Cause, the Company shall continue to pay Executive or his nominee
all salary, benefits, bonuses and other compensation that would be due hereunder through the end of the Term of this Agreement
had the Company not terminated Executive's employment, but in any event not less than one-year after the date of such termination,
with such amounts payable in accordance with the Company’s standard payroll.

 

4.5              
Voluntary Termination by Executive. Thirty (30) days after delivery by Executive to the Company of a written notice
terminating this Agreement for any reason without Good Reason, within thirty (30) days following the effective date of termination,
the Company shall pay Executive or his nominee all salary then due and payable through the date of termination. Executive shall
not be entitled to any severance compensation or any accrued vacation pay or bonuses.

 

4.6              
Termination by Executive for Good Reason. Thirty (30) days after delivery by Executive to the Company of a written
notice terminating this Agreement for Good Reason (as such term is defined below), the Company shall pay Executive or his nominee
such amounts in such manner as provided for in Section 4.4 hereof. For purposes of this Agreement, "Good Reason"
shall mean:

 

(a)          
The assignment of Executive to any duties inconsistent with, or any adverse change in, Executive's positions, duties, responsibilities,
functions or status with the Company, or the removal of Executive from, or failure to reelect Executive to, any of such positions;
provided, however, that a change in Executive's positions, duties, responsibilities, functions or status that Executive
shall agree to in writing shall not be an event of Good Reason or give rise to termination under this Section 4.6;

 

(b)          
A reduction by the Company of Executive's Base Salary without his written consent;

 

(c)         
The failure by the Company to continue in effect for Executive any material benefit provided herein or otherwise available
to any of the management executives of the Company, including without limitation, any retirement, pension or incentive plans, life,
accident, disability or health insurance plans, equity or cash bonus plans or savings and profit sharing plans, or any action by
the Company which would adversely affect Executive's participation in or reduce Executive's benefits under any of such plans or
deprive Executive of any fringe benefit enjoyed by Executive; or

 

(d)        
Any other material breach by the Company of this Agreement which is not cured within twenty (20) days of delivery of written
notice thereof by Executive to the Company.

 

4.7              
Effect of Termination; Executive's Stock Options.

 

(a)               
All rights and obligations of the Company and Executive under this Agreement shall cease as of the effective date of termination,
except that the obligations of the Company under this Section 4 and Executive's obligations under Sections 5 and
6 hereof shall survive such termination in accordance with their respective terms.

 

 

 

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(b)              
In addition, notwithstanding anything to the contrary contained herein or in any agreement with respect thereto, (i) upon
termination of Executive's employment pursuant to Sections 4.3 or 4.5 (termination with Cause or voluntary termination
without Good Reason) all Stock Options, other equity options, restricted equity grants and similar rights held by Executive with
respect to securities of the Company, shall stock opt to the extent not then fully vested, immediately terminate and revert to
the Company, (ii) upon termination of Executive's employment pursuant to Section 4.4 or Section 4.6 (termination
without Cause or voluntary termination with Good Reason), all Stock Options, other equity options, restricted equity grants and
similar rights held by Executive with respect to securities of the Company shall, remain in full force and effect and shall not
be affected by such termination, and shall continue to vest based upon the organizational performance goals set forth in Exhibit
B, and (iii) upon termination of Executive's employment pursuant to Section 4.1 or Section 4.2 (Executive’s
death or Disability), all Stock Options, other equity options, restricted equity grants and similar rights held by Executive with
respect to securities of the Company shall, to the extent not then fully vested, immediately become fully vested.

 

4.8              
No Termination by Merger; Transfer of Assets or Dissolution. This Agreement shall not be terminated by any dissolution
of the Company resulting from either merger or consolidation in which the Company is not the consolidated or surviving corporation
or other entity or transfer of all or substantially all of the assets of the Company. In such event, the rights, benefits and obligations
herein shall automatically be deemed to be assigned to the surviving or resulting corporation or other entity or to the transferee
of the assets, as the case may be, with the consent of Executive.

 

4.9              
Non-Disparagement. During the Term and at all times thereafter, Executive agrees not to make or solicit or
encourage others to make or solicit directly or indirectly any disparaging, derogatory or negative statement or communication,
oral or written, about the Company or its business practices, programs, products, services, operations, policies, activities, current
or former officers, directors, managerial personnel, or other employees, or its customers to any other person or entity; provided,
however, that such restriction shall not prohibit truthful testimony compelled by valid legal process or to the extent made
in connection with filing or asserting any claims relating to employment. The Company agrees not to make any disparaging, derogatory
or negative statement or communication, oral or written, about Executive; provided, however, that such restriction shall
not prohibit truthful testimony compelled by valid legal process. Notwithstanding anything herein to the contrary, nothing in this
Section 4.11 shall prevent any party to this Agreement from exercising its or his authority or enforcing its or his rights
or remedies hereunder or that such party may otherwise be entitled to enforce or assert under another agreement or applicable law,
or limit such rights or remedies in any way.

 

5.        Restriction
on Competition.

 

5.1             
Covenant Not to Compete. During the Term of this Agreement and for a period of twelve (12) months from the termination
of this Agreement, Executive shall not, without the prior written consent of the Company, either directly or indirectly, for himself
or on behalf of or in conjunction with any other Person if such activities would necessarily involve the disclosure or use of any
of the Company’s trade secrets, confidential or other proprietary information (i) own, manage, operate, control, be employed
by, participate in, render services to, or be associated in any manner with the ownership, management, operation or control of,
any business similar to the type of business conducted by the Company or any of its Affiliates within any of the geographic territories
in which the Company or any of its Affiliates conducts business, (ii) solicit business of the same or similar type being carried
on by the Company or any of its Affiliates from any Person known by Executive to be a customer of the Company or any of its Affiliates,
whether or not Executive had personal contact with such Person during and by reason of Executive's employment with the Company,
or (iii) endeavor or attempt in any way to interfere with or induce a breach of any contractual relationship that the Company or
any of its Affiliates may have with any employee, customer, contractor, supplier, representative or distributor.

 

 

 

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5.2             
No Breach for Activities Deemed Not Competitive. It is further agreed that, in the event that Executive shall cease
to be employed by the Company and enter into a business or pursue other activities that, at such time, are not in competition with
the Company or any of its Affiliates, Executive shall not be chargeable with a violation of this Section 5 if the Company
subsequently enters the same (or a similar) competitive business or activity. In addition, if Executive has no actual knowledge
that his actions violate the terms of this Section 5, Executive shall not be deemed to have breached the restrictive covenants
contained herein if, promptly after being notified by the Company of such breach, Executive ceases the prohibited actions.

 

5.3             
Severability. The covenants in this Section 5 are severable and separate, and the unenforceability of any
specific covenant shall not affect the provisions of any other covenant. If any provision of this Section 5 relating to
the time period or geographic area of the restrictive covenants shall be declared by a court of competent jurisdiction to exceed
the maximum time period or geographic area, as applicable, that such court deems reasonable and enforceable, such time period or
geographic area shall be deemed to be, and thereafter shall become, the maximum time period or largest geographic area that such
court deems reasonable and enforceable and this Agreement shall automatically be considered to have been amended and revised to
reflect such determination.

 

5.4             
Fair and Reasonable. Executive has carefully read and considered the provisions of this Section 5 and, having
done so, agrees that the restrictive covenants in this Section 5 impose a fair and reasonable restraint on Executive and
are reasonably required to protect the interests of the Company, its Affiliates and their respective officers, directors, employees
and stockholders. It is further agreed that the Company and Executive intend that such covenants be construed and enforced in accordance
with the changing activities, business and locations of the Company throughout the term of these covenants.

 

6.        Confidential
Information.

 

6.1              
Confidential Information. Executive hereby agrees to hold in strict confidence and not to disclose to any third party,
other than employees and agents of the Company or persons retained by the Company to represent its interests, any of the valuable,
confidential and proprietary business, financial, technical, economic, sales and/or other types of proprietary business information
relating to the Company or any of its Affiliates (including all trade secrets) in whatever form, whether oral, written, or electronic
(collectively, the "Confidential Information"), to which Executive has, or is given (or has had or been given), access
during the course of his employment with the Company. It is agreed that the Confidential Information is confidential and proprietary
to the Company because such Confidential Information encompasses technical know-how, trade secrets, or technical, financial, organizational,
sales or other valuable aspects of the business and trade of the Company or its Affiliates, including without limitation, technologies,
products, processes, plans, clients, personnel, operations and business activities. This restriction shall not apply to any Confidential
Information that (a) becomes known generally to the public through no fault of the Executive, (b) is required by applicable law,
legal process, or any order or mandate of a court or other governmental authority to be disclosed, or (c) is reasonably believed
by Executive, based upon the advice of legal counsel, to be required to be disclosed in defense of a lawsuit or other legal or
administrative action brought against Executive; provided, however, that in the case of clause (b) or (c), Executive shall
give the Company reasonable advance written notice of the Confidential Information intended to be disclosed and the reasons and
circumstances surrounding such disclosure, in order to permit the Company to seek a protective order or other appropriate request
for confidential treatment of the applicable Confidential Information.

 

6.2              
Return of Company Property. In the event of termination of Executive's employment with the Company for whatever reason
or no reason, (a) Executive agrees not to copy, make known, disclose or use, any of the Confidential Information without the Company's
prior written consent, and (b) Executive or Executive's personal representative shall return to the Company (i) all Confidential
Information, (ii) all other records, designs, patents, business plans, financial statements, manuals, memoranda, lists, correspondence,
reports, records, charts, advertising materials and other data or property delivered to or compiled by Executive by or on behalf
of the Company or its respective representatives, vendors or customers that pertain to the business of the Company or any of its
Affiliates, whether in paper, electronic or other form, and (iii) all keys, credit cards, vehicles and other property of the Company.
Executive shall not retain or cause to be retained any copies of the foregoing. Executive hereby agrees that all of the foregoing
shall be and remain the property of the Company and the applicable Affiliates and be subject at all times to their discretion and
control.

 

 

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7.        Corporate
Opportunities.

 

7.1              
Duty to Notify. During the Term of this Agreement, in the event that Executive shall become aware of any business
opportunity related to the business of the Company, Executive shall promptly notify the Board of Directors of such opportunity.
Executive shall not appropriate for himself or for any other Person other than the Company (or any Affiliate) any such opportunity
unless, as to any particular opportunity, the Board of Directors fails to take appropriate action within thirty (30) days. Executive's
duty to notify the Board of Directors and to refrain from appropriating all such opportunities for thirty (30) days shall neither
be limited by, nor shall such duty limit, the application of the general laws relating to the fiduciary duties of an agent or employee.

 

7.2              
Failure to Notify. In the event that Executive fails to notify the Board of Directors or so appropriates any such
opportunity without the express written consent of the Board of Directors, Executive shall be deemed to have violated the provisions
of this Section notwithstanding the following:

 

(a)               
The capacity in which Executive shall have acquired such opportunity; or

 

(b)              
The probable success in the hands of the Company of such opportunity.

 

8.        No
Prior Agreements. Executive hereby represents and warrants to the Company that the execution of this Agreement by Executive,
his employment by the Company, and the performance of his duties hereunder will not violate or be a breach of any agreement with
a former employer or any other Person. Further, Executive agrees to indemnify and hold harmless the Company and its officers, directors
and representatives for any claim, including, but not limited to, reasonable attorneys' fees and expenses of investigation, of
any such third party that such third party may now have or may hereafter come to have against the Company or such other persons,
based upon or arising out of any non-competition agreement, invention, secrecy or other agreement between Executive and such third
party that was in existence as of the effective date of this Agreement. To the extent that Executive had any oral or written employment
agreement or understanding with the Company, this Agreement shall automatically supersede such agreement or understanding, and
upon execution of this Agreement by Executive and the Company, such prior agreement or understanding automatically shall be deemed
to have been terminated and shall be null and void.

 

9.        Representation.
Executive acknowledges that he (a) has reviewed this Agreement in its entirety, (b) has had an opportunity to obtain the advice
of separate legal counsel prior to executing this Agreement, and (c) fully understands all provisions of this Agreement.

 

10.        Assignment:
Binding Effect. Executive understands that he has been selected for employment by the Company on the basis of his personal
qualifications, experience and skills. Executive agrees, therefore, that he cannot assign or delegate all or any portion of his
performance under this Agreement. This Agreement may not be assigned or transferred by the Company without the prior written consent
of Executive. Subject to the preceding two sentences, this Agreement shall be binding upon, inure to the benefit of, and be enforceable
by the parties hereto and their respective heirs, legal representatives, successors, and assigns. Notwithstanding the foregoing,
if Executive accepts employment with an Affiliate, unless Executive and his new employer agree otherwise in writing, this Agreement
shall automatically be deemed to have been assigned to such new employer (which shall thereafter be an additional or substitute
beneficiary of the covenants contained herein, as appropriate), with the consent of Executive, such assignment shall be considered
a condition of employment by such new employer, and references to the "Company" in this Agreement shall be deemed to
refer to such new employer.

 

 

 

 

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11.
       Complete Agreement; Waiver: Amendment. Executive has no oral representations,
understandings or agreements with the Company or any of its officers, directors or representatives covering the same subject matter
as this Agreement. This Agreement is the final, complete and exclusive statement and expression of the agreement between the Company
and Executive with respect to the subject matter hereof and thereof, and cannot be varied,
contradicted, or supplemented by evidence of any prior or contemporaneous oral or written agreements. This Agreement may not be
later modified except by a further writing signed by a duly authorized officer of the Company and Executive, and no term of this
Agreement may be waived except by writing signed by the party waiving the benefit of such term.

 

12.        Notices.
All notices, requests, demands and other communications required or permitted to be given under this Agreement shall be in writing
and shall be given or made by personally delivering the same to or sending the same by prepaid certified or registered mail, return
receipt requested, or by reputable overnight courier, or by facsimile machine to the party to which it is directed at the address
set out on the signature page to this Agreement, with copies to counsel as indicated, or at such other address as such party shall
have specified by written notice to the other party as provided in this Section, and shall be deemed to be given if delivered personally
at the time of delivery, or if sent by certified or registered mail as herein provided three (3) days after the same shall have
been posted, or if sent by reputable overnight courier upon receipt, or if sent by facsimile machine as soon as the sender receives
written or telephonic confirmation that the facsimile was received by the recipient and such facsimile is followed the same day
by mailing by prepaid first class mail.

 

13.        Severability:
Headings. If any portion of this Agreement is held invalid or inoperative, the other portions of this Agreement shall be deemed
valid and operative and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion held
invalid and inoperative. This severability provision shall be in addition to, and not in place of, the provisions of Section
5.3 above. The Sections headings herein are for reference purposes only and are not intended in any way to describe, interpret,
define or limit the extent or intent of this Agreement or of any part hereof.

 

14.
Equitable Remedy. Because of the difficulty of measuring economic losses to the Company as a result of a breach of the
restrictive covenants set forth in Sections 5 and 6  hereof, and because of the immediate and irreparable damage
that would be caused to the Company for which monetary damages would not be a sufficient remedy, it is hereby agreed that in addition
to all other remedies that may be available to the Company or Executive at law or in equity, the Company or Executive shall be
entitled to specific performance and any injunctive or other equitable relief as a remedy for any breach or threatened breach of
the aforementioned restrictive covenants.· ·

 

15.        Arbitration.
Any unresolved dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration
conducted in accordance with the rules of the American Arbitration Association then in effect. The arbitrators shall not have the
authority to add to, detract from, or modify any provision hereof nor to award punitive damages to any injured party. A decision
by a majority of the arbitration panel shall be final and binding. Judgment may be entered on the arbitrators' award in any court
having jurisdiction. Notwithstanding the foregoing, the Company shall be entitled to seek injunctive or other equitable relief,
as contemplated by Section 14 hereof, from any court of competent jurisdiction, without the need to resort to arbitration.
Should judicial proceedings be commenced to enforce or carry out this provision or any arbitration award, the prevailing party
in such proceedings shall be entitled to reasonable attorneys' fees and costs in addition to other relief.

 

16.        Governing
Law. This Agreement shall in all respects be construed according to the laws of the State of California, without regard to
its conflict of flaws principles.

 

17.        Counterparts.
This Agreement may be executed in any number of counterparts, each of which may be executed by less than all of the parties to
this Agreement, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together
shall constitute one instrument.

 

18.        Signatures.
The parties shall be entitled to rely upon and enforce a facsimile of any authorized signatures as if it were the original.

 

[Signatures on
following page.]

 

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first above written.

 

COMPANY:

 

CV SCIENCES, INC.

 

By: /s/ Michael Mona, Jr.

Name (print): Michael Mona, Jr.

Its: President and Chief Executive Officer

 

 

Address for Notices:

 

2688 South Rainbow Boulevard, Suite B

Las Vegas, NV 89146

 

 

 

EXECUTIVE:

 

MICHAEL MONA III

 

 

(sign): /s/ Michael Mona III

 

 

Address for Notices:

 

Michael Mona III

2688 South Rainbow Boulevard, Suite B

Las Vegas, NV 89146

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

Exhibit
A

 

2016 Performance Goals

 

Consumer Products Division

·                 
Achieve 90% of revenue target

·                 
Launch four new products in Consumer Products division

·                 
Achieve distribution in 850 Natural Product stores

 

Drug Development Division

·                 
Preclinical plan developed and completed 

·                 
Pre IND meeting completed

·                 
IND ready for submission

 

Corporate Goals

·                 
Begin “up list” process with NYSE-MKT or Nasdaq 

·                 
Complete new financing ($5-$10M range) - repay existing $3M debt and provide working capital 

·                 
Address Item 9 Controls from 2015 10-K, including implementation of the 2013 version of the 1992 COSO Framework

 

 

 

 

 

 

 

 

 

 

 

    	 	11	 

     

    

 

Exhibit
B

 

Performance Criteria and Percentage
Allocation for Option Vesting

 

		·	1,000,000 options the first time the Company
completes development of a U.S. Food & Drug Administration (“FDA”) current good manufacturing practice grade batch
of successfully synthetically formulated CBD for use in drug development activities;
	 	 	 

		·	1,000,000 options the first time the Company
files an investigational new drug application with the FDA in connection with a development program utilizing CBD as the active
pharmaceutical ingredient (a “CBD Drug Product”);

 

		·	1,000,000 options the first time the Company
commences a Phase I clinical trial as authorized by the FDA for a CBD Drug Product; and

 

		·	1,000,000 options the first time the Company
commences a Phase II clinical trial as authorized by the FDA for a CBD Drug Product.

 

Subject to acceleration of vesting as provided
in Section 2.3(c) and Section 4.7(b).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	12Exhibit 10.4

 

CV SCIENCES,
INC. 

NON-QUALIFIED
STOCK OPTION AGREEMENT 

 

This
NON-QUALIFIED STOCK OPTION AGREEMENT (this "Agreement") is made and entered into as of July 6, 2016, by and between CV
Sciences, Inc., a Delaware corporation (the "Company") and Michael Mona, Jr. ("Optionee").

 

RECITALS

 

A.     
       The Company granted options to Optionee pursuant to the resolutions of the Board of Directors
dated July 6, 2016 ("Grant Date") to provide an incentive to Optionee to focus on the long-term growth of the Company.

 

B.        
    The parties wish to memorialize the grant and in consideration of the mutual covenants hereinafter set
forth, and for other good and valuable consideration, the parties agree as follows:

 

AGREEMENT

 

1.          
  Grant of Option.  The Company hereby grants to Optionee the right and option (the "Option")
to purchase an aggregate of 6,000,000 shares of the common stock of the Company (the "Stock") (such number being subject
to adjustment as set forth herein) on the terms and conditions herein set forth. This Option may be exercised in whole
or in part and from time to time as hereinafter provided.  The Option granted under this Agreement is not intended to
be an "incentive stock option" as set forth in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

 

2.         
   Vesting of Option.  

 

(a)         
Subject to the provisions set forth in this Agreement, the Option shall vest and become exercisable in accordance with the
following schedule:

  

(i)                
the first time the Company completes development of a U.S. Food & Drug Administration (“FDA”) current good
manufacturing practice grade batch of successfully synthetically formulated CBD for use in drug development activities (25% vesting
of the Option); and

 

(ii)              
the first time the Company files an investigational new drug application with the FDA in connection with a development program
utilizing CBD as the active pharmaceutical ingredient (a “CBD Drug Product”) (25% vesting of the Option);

 

(iii)            
the first time the Company commences a Phase I clinical trial as authorized by the FDA for a CBD Drug Product (25% vesting
of the Option); and

 

(iv)             
the first time the Company commences a Phase II clinical trial as authorized by the FDA for a CBD Drug Product (25% vesting
of the Option).

 

Notwithstanding
the foregoing, vesting shall accelerate upon a Disposition Event as defined under the Agreement and Plan of Reorganization dated
December 30, 2015 by and among CannaVest Corp., CannaVest Merger Sub, Inc. CannaVest Acquisition LLC, CanX, Inc. and The Starwood
Trust, as Shareholder Representative.

 

(b)               
Notwithstanding the foregoing, the right to exercise the Option shall accelerate automatically and vest in full (notwithstanding
the provisions above) effective as of immediately prior to the consummation of the “Change in Control” (as defined
below) unless this Option is to be assumed by the acquiring or successor entity (or parent thereof) or a new option or New Incentives
(as defined below) are to be issued in exchange therefor, as provided in subsection (c) below.

 

 

 

    	 	1	 

     

    

 

(c)               
The vesting of the Option shall not accelerate if and to the extent that: (i) the Option (including the unvested portion
thereof) is to be assumed by the acquiring or successor entity (or parent thereof) or a new option of comparable value is to be
issued in exchange therefor pursuant to the terms of the Change in Control transaction, or (ii) the Option (including the unvested
portion thereof) is to be replaced by the acquiring or successor entity (or parent thereof) with other incentives of comparable
value under a new incentive program (“New Incentives”) containing such terms and provisions as the Company’s
Board of Directors in its discretion may consider equitable. If the Option is assumed, or if a new option of comparable value is
issued in exchange therefor, then the Option or the new option shall be appropriately adjusted, concurrently with the Change in
Control, to apply to the number and class of securities or other property that the Optionee would have received pursuant to the
Change in Control transaction in exchange for the shares issuable upon exercise of the Option had the Option been exercised immediately
prior to the Change in Control, and appropriate adjustment also shall be made to the Purchase Price such that the aggregate Purchase
Price of this Option or the new option shall remain the same as nearly as practicable.

 

(d)               
If the provisions of subsection (c) above apply, then the Option, the new option or the New Incentives shall continue to
vest as provided above for the remainder of the term of the Option in accordance with the terms hereof. However, in the event of
an Involuntary Termination (as defined below) of Optionee’s service with the Company or the acquiring or successor entity
(or parent thereof) within twelve (12) months following such Change in Control, then vesting of this Option, the new option or
the New Incentives shall accelerate in full automatically effective upon such Involuntary Termination.

 

(e)               
“Involuntary Termination” shall mean a termination of service by reason of: (i) Optionee’s involuntary
dismissal or discharge by the Company, or by the acquiring or successor entity (or parent or any subsidiary thereof employing the
Optionee) for reasons other than Misconduct (as defined below), or (ii)Optionee’s voluntary resignation following (x)
a reduction in Optionee’s compensation by more than ten percent (10%), or (y) a relocation of Optionee’s principal
place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected without
Optionee’s written consent.

 

(f)                
“Misconduct” shall mean (i) the commission of any act of fraud, embezzlement or dishonesty by Optionee which
affects the business of the Company, the acquiring or successor entity (or parent or any subsidiary thereof), (ii) any unauthorized
use or disclosure by Optionee of confidential information or trade secrets of the Company, the acquiring or successor entity (or
parent or any subsidiary thereof), (iii) the refusal or omission by the Optionee to perform any duties required of him if such
duties are consistent with duties customary for the position held with the Company, the acquiring or successor entity (or parent
or any subsidiary thereof), (iv) any act or omission by the Optionee involving malfeasance or gross negligence in the performance
of Optionee’s duties to, or material deviation from any of the policies or directives of, the Company or the acquiring or
successor entity (or parent or any subsidiary thereof), (v) conduct on the part of Optionee which constitutes the breach of any
statutory or common law duty of loyalty to the Company, the acquiring or successor entity (or parent or any subsidiary thereof),
or (vi) any illegal act by Optionee which materially and adversely affects the business of the Company, the acquiring or successor
entity (or parent or any subsidiary thereof), or any felony committed by Optionee, as evidenced by conviction thereof. The provisions
of this paragraph shall not limit the grounds for the dismissal or discharge of Optionee or any other individual in the service
of the Company, the acquiring or successor entity (or parent or any subsidiary thereof).

 

(g) “Change in Control” shall
mean:

 

(i)                
The direct or indirect sale or transfer, in a single transaction or a series of related transactions, by the stockholders
of the Company of voting securities, in which the holders of the outstanding voting securities of the Company immediately prior
to such transaction or series of transactions hold, as a result of holding Company securities prior to such transaction, in the
aggregate, securities possessing less than twenty percent (20%) of the total combined voting power all outstanding voting securities
of the Company or of the acquiring entity immediately after such transaction or series of related transactions;

 

 

    	 	2	 

     

    

 

(ii)              
A merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders
of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding
Company securities prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the total
combined voting power of all outstanding voting securities of the surviving entity (or the parent of the surviving entity) immediately
after such merger or consolidation;

 

(iii)            
A reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities
of the Company immediately prior to such merger hold as a result of holding Company securities prior to such transaction, in the
aggregate, securities possessing less than fifty percent (50%) of the total combined voting power of all outstanding voting securities
of the Company or of the acquiring entity immediately after such merger; or

 

(iv)             
The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially
all of the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company
immediately prior to such transaction(s) receive as a distribution with respect to securities of the Company, in the aggregate,
securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of
the acquiring entity immediately after such transaction(s).

 

3.       Purchase
Price. The price at which Optionee shall be entitled to purchase the Stock covered by the Option shall be $0.368 per share,
which is the closing price of the Company’s common stock on the Over The Counter Bulletin Board on July 6, 2016. the Board
has determined to be the Fair Market Value (as defined herein) as of the Grant Date, which is the "Fair Market Value in accordance
with the requirements set forth in Treasury Regulation Section 1.409A-1(b)(5)(iv)(B) or any successor provision thereof.

 

4.       Term
of Option.  The Option granted under this Agreement shall expire, unless otherwise exercised, ten (10) years from
the Grant Date ("Expiration Date"), subject to earlier termination as provided in paragraph 8 hereof.

 

5.       Exercise
of Option.  The Option may be exercised by Optionee as to all or any part of the Stock then vested by delivery to
the Company of written notice of exercise in the form attached hereto as Exhibit A ("Exercise Notice") and payment of
the purchase price as provided in paragraphs 6 and 7 hereof.

 

6.       Method
of Exercising Option.  Subject to the terms and conditions of this Agreement, the Option may be exercised by timely
delivery of written notice to the Company or such other person as the Board shall designate, which notice shall be effective on
the date received by the Company or such other person ("Effective Date").  The notice shall state Optionee's
election to exercise the Option, the number of shares in respect of which an election to exercise has been made, the method of
payment elected (see paragraph 7 hereof), the exact name or names in which the shares will be registered and the Social Security
number of Optionee.  Such notice shall be signed by Optionee and shall be accompanied by payment of the purchase price
of such shares.  In the event the Option shall be exercised by a person or persons other than Optionee pursuant to paragraph
8 and 14 hereof, such notice shall be signed by such other person or persons and shall be accompanied by proof acceptable to the
Company of the legal right of such person or persons to exercise the Option.  All shares delivered by the Company upon
exercise of the Option shall be fully paid and nonassessable upon delivery.  In the event the Stock purchasable pursuant
to the exercise of the Option has not been registered under the Securities Act of 1933, as amended, at the time the Option is exercised,
the Optionee shall, if requested by the Company, concurrently with the exercise of all or any portion of the Option, deliver to
the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B.

 

 

 

    	 	3	 

     

    

 

7.       Method
of Payment for Options. Payment for shares purchased upon the exercise of the Option shall be made by Optionee in cash, previously-acquired
Stock held for more than six (6) months, promissory note net issuance, property (including broker-assisted arrangements) or other
forms of payment permitted by the Board and communicated to Optionee in writing prior to the date Optionee exercises all or any
portion of the Option.

 

8.       Termination
of Employment or Service.

 

(a)       General.  If
the Optionee's employment is terminated for any reason other than Cause (as defined below), death or Disability (as defined below),
then the Options shall continue to vest notwithstanding the termination of Optionee’s employment in accordance with paragraph
2(a), above. If the Company terminates the Optionee's employment or service for Cause, then the Optionee may at any time within
ninety (90) days after the effective date of termination of employment or service exercise the vested portion of the Option to
the extent that the Optionee was entitled to exercise the Option at the date of termination.

 

(b)       Death
or Disability of Optionee.  In the event of the death or Disability of Optionee within a period during which the
Option, or any part thereof, could have been exercised by Optionee, including ninety (90) days after termination of employment
or service (the "Option Period"), the Option shall, as of the date of death or Disability, immediately vest and become
exercisable by Optionee or his estate at any time within 90 days after Optionee’s death or Disability.

 

(c)       Definition
of Disability.  "Disability" or "Disabled" shall mean a physical or mental condition, verified
by a physician designated by the Company, which prevents Optionee from carrying out one or more of the material aspects of his
assigned duties for at least ninety (90) consecutive days, or for a total of ninety (90) days in any six (6) month period.

 

(d)       Definition
of Cause. "Cause" shall mean:

 

(i)                
Optionee shall have committed an act of fraud, embezzlement or theft with respect to the property or business of the Company,
in any such event in such a manner as to cause material loss, damage or injury to the Company;

 

(ii)              
Optionee shall have materially breached his Employment Agreement as determined by the Board and such breach shall have continued
for a period of twenty (20) days after receipt of written notice from the Board specifying such breach;

 

(iii)            
Optionee shall have been grossly negligent in the performance of his duties hereunder, intentionally not performed or mis-performed
any of such duties, or refused to abide by or comply with the reasonable and lawful directives of the Board, in each case as reasonably
determined by the Board, which action shall have continued for a period of twenty (20) days after receipt of written notice from
the Board demanding such action cease or be cured; or

 

(iv)             
Optionee shall have been found guilty of, or has plead nolo contendere to, the commission of a felony offense or
other crime involving moral turpitude.

 

9.       Nontransferability.
The Option granted by this Agreement shall be exercisable only during the term of the Option provided in paragraph 4 hereof and,
except as provided in paragraph 8 and 13, only by Optionee during his lifetime and while in the employment or service of the Company.
Except set forth in paragraph 8 and as otherwise provided by the Board, this Option shall not be transferable by Optionee or any
other person claiming through Optionee, either voluntarily or involuntarily, except by will or the laws of descent and distribution
or such other circumstances as the Board deems acceptable.

 

 

 

    	 	4	 

     

    

 

10.       Adjustments
in Number of Shares and Option Price.  In the event of a stock dividend or in the event the stock shall be changed
into or exchanged for a different number or class of shares of stock of the Company or of another corporation, whether through
reorganization, recapitalization, stock split-up, combination of shares, merger or consolidation, the Board has the authority to
substitute for each such remaining share of stock then subject to this Option the number and class of shares of stock into which
each outstanding share of stock shall be so exchanged, all without any change in the aggregate purchase price for the shares then
subject to the Option.  Any substitution made pursuant to this paragraph shall be made in such a manner that is consistent
with the requirements of Section 409A of the Internal Revenue Code.

 

11.       Delivery
of Shares.  No shares shall be delivered upon exercise of the Option until (i) the purchase price shall have been
paid in full in the manner herein provided (unless a net issuance strategy is implemented); (ii) applicable taxes required to be
withheld have been paid or withheld in full; and (iii) approval of any governmental authority required in connection with the Option,
or the issuance of shares thereunder, has been received by the Company.

 

12.       Administration.  The
Board shall have the sole and complete discretion with respect to all matters reserved to it by this Agreement, and decisions of
the Board with respect to this Agreement shall be final and binding upon Optionee and the Company.  Notwithstanding any
other provision of this Agreement, the Board shall administer this Agreement, and exercise all authority and discretion under this
Agreement, to satisfy the requirement of Internal Revenue Code Section 409A or any exemption thereto.

 

13.           Stock
Certificates.  All stock certificates delivered pursuant to this Agreement are subject to any stop-transfer orders
and other restrictions as the Board deems necessary or advisable to comply with federal or state securities laws, rules and regulations
and the rules of any national securities exchange or automated quotation system on which the stock is listed, quoted, or traded.  The
Board may place legends on any stock certificate to reference restrictions applicable to the stock.

 

14.           Continuation
of Employment or Service.  THE OPTIONEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS SET FORTH HEREIN, THE SHARES SUBJECT
TO THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF OPTIONEE's CONTINUOUS SERVICE OR EMPLOYMENT, AS APPLICABLE, (NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER).  THE OPTIONEE FURTHER ACKNOWLEDGES
AND AGREES THAT NOTHING IN THIS AGREEMENT SHALL CONFER UPON THE OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF OPTIONEE's CONTINUOUS
SERVICE OR EMPLOYMENT, NOR SHALL IT INTERFERE IN ANY WAY WITH THE OPTIONEE's RIGHT OR THE COMPANY's RIGHT TO TERMINATE OPTIONEE's
CONTINUOUS SERVICE OR EMPLOYMENT, WITH OR WITHOUT CAUSE.

 

15.           Obligation
to Exercise.  Optionee shall have no obligation to exercise any option granted by this Agreement.

 

16.           Governing
Law.  This Agreement shall be interpreted and administered under the laws of the State of Delaware.

 

17.           Amendments.  This
Agreement may be amended only by a written agreement executed by the Company and Optionee.  In addition, except as otherwise
provided in paragraph 10, the terms of this Agreement may not be amended to reduce the exercise price of the Option or to cancel
the Option in exchange for cash, other Options with an exercise price that is less than the exercise price of the original Option
without stockholder approval.

 

[Signature Page
Follows]

 

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be signed by its duly authorized representative and Optionee has signed this Agreement
as of the date first written above.

 

 

CV SCIENCES, INC.

 

 

By: /s/ Michael Mona, Jr.

Name: Michael Mona, Jr.

Its: President and Chief Executive
Officer

 

 

ACCEPTED AND AGREED TO:

 

/s/ Michael Mona, Jr.

Michael Mona, Jr.

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

EXHIBIT A

 

CV SCIENCES, INC.

 

EXERCISE NOTICE

 

CV Sciences, Inc.

2688 South Rainbow Boulevard, Suite B

Las Vegas, Nevada 89146

Attention: Secretary

 

Effective as of today, ______________,
___ the undersigned (the "Optionee") hereby elects to exercise the Optionee's option to purchase ___________ shares of
the Common Stock (the "Shares") of CV Sciences, Inc. (the "Company") under and pursuant to the Non-Qualified
Stock Option Award Agreement (the "Option Agreement") dated July 6, 2016.

 

Representations of the Optionee. The Optionee
acknowledges that the Optionee has received, read and understood the Option Agreement and agrees to abide by and be bound by their
terms and conditions.

 

Rights as Stockholder. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect
to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate
promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior
to the date the stock certificate is issued, except as provided in the Option Agreement.

 

Delivery of Payment. The Optionee herewith
delivers to the Company the full Exercise Price for the Shares in the form(s) provided for in the Option Agreement, or, if approved,
the Shares shall be delivered pursuant to a net issuance.

 

Tax Consultation. The Optionee understands
that the Optionee may suffer adverse tax consequences as a result of the Optionee's purchase or disposition of the Shares. The
Optionee represents that the Optionee has consulted with any tax consultants the Optionee deems advisable in connection with the
purchase or disposition of the Shares and that the Optionee is not relying on the Company for any tax advice.

 

Taxes. The Optionee agrees to satisfy all
applicable foreign, federal, state and local income and employment tax withholding obligations and herewith delivers to the Company
the full amount of such obligations or has made arrangements acceptable to the Company to satisfy such obligations.

 

Restrictive Legends. The Optionee understands
and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon
any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by
state or federal securities laws:

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

Successors and Assigns. The Company may
assign any of its rights under this Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit
of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise Notice shall
be binding upon the Optionee and his or her heirs, executors, administrators, successors and assigns.

 

 

 

    	 	7	 

     

    

 

Headings. The captions used in this Exercise
Notice are inserted for convenience and shall not be deemed a part of this agreement for construction or interpretation.

 

Interpretation. Any dispute regarding the
interpretation of this Exercise Notice shall be submitted by the Optionee or by the Company forthwith to the Board, which shall
review such dispute at its next regular meeting. The resolution of such a dispute by the Board shall be final and binding on all
persons.

 

Governing Law; Severability. This Exercise
Notice is to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to
any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State
of Delaware to the rights and duties of the parties. Should any provision of this Exercise Notice be determined by a court of law
to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

 

Notices. Any notice required or permitted
hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United
States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath
its signature, or to such other address as such party may designate in writing from time to time to the other party.

 

Further Instruments. The parties agree
to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and
intent of this agreement.

 

Entire Agreement. The Option Agreement
is incorporated herein by reference and together with this Exercise Notice constitutes the entire agreement of the parties with
respect to the subject matter hereof and supersedes in their entirety all prior undertakings and agreements of the Company and
the Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee's interest except by
means of a writing signed by the Company and the Optionee.

 

 

 

 

	SUBMITTED BY:	 	ACCEPTED BY:
	 	 	 
	 	 	CV SCIENCES, INC.
	 	 	 
	/s/ Michael Mona Jr.                                 	 	By: /s/ Michael Mona, Jr.                             
	Michael Mona Jr.	 	Name: Michael Mona, Jr.
	 	 	Its: President and Chief Executive Officer
	 	 	 
	Address:	 	Address:
	 	 	 
	______________________________	 	2688 South Rainbow Boulevard, Suite B
	______________________________	 	Las Vegas, Nevada 89146
	 	 	 

 

 

 

 

    	 	8	 

     

    

 

EXHIBIT B

 

CV SCIENCES, INC.

 

INVESTMENT REPRESENTATION STATEMENT

 

	OPTIONEE:	 	Michael Mona Jr.
	COMPANY:	 	CV Sciences, Inc.
	SECURITY:	 	Common Stock
	AMOUNT:	 	________________________________
	Date:	 	________________________________

 

In connection with the purchase of the
above-listed Securities, the undersigned Optionee represents to the Company the following:

 

Optionee is aware of the Company's business
affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable
decision to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee's own account only and not
with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act
of 1933, as amended (the "Securities Act").

 

Optionee acknowledges and understands that
the Securities constitute "restricted securities" under the Securities Act and have not been registered under the Securities
Act in reliance upon a specific exemption therefrom, which exemption depends upon among other things, the bona fide nature of Optionee's
investment intent as expressed herein. Optionee further understands that the Securities must be held indefinitely unless they are
subsequently registered under the Securities Act or an exemption from such registration is available. Optionee further acknowledges
and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing
the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such
registration is not required in the opinion of counsel satisfactory to the Company.

 

Optionee further understands that in the
event all of the applicable requirements of Rule 144 are not satisfied, registration under the Securities Act, compliance with
Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive,
the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof
in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective
brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that
any such other registration exemption will be available in such event.

 

Optionee represents that he is a resident
of the state of _________________.

 

OPTIONEE:

 

________________________________

Name (print): ______________________

 

Date: ___________________________

 

 

 

 

 

    	 	9

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