Document:

LOAN
AGREEMENT

AND

REVOLVING
LINE OF CREDIT PROMISSORY NOTE

 

	$2,500,000.00	 
	Denver, Colorado	December
    30, 2014

 

FOR
VALUE RECEIVED, the undersigned, NEIL DEMERS, an individual (“Borrower”)
promises to pay to the order of DIEGO PELLICER WORLDWIDE, INC., a Delaware
corporation (“Lender”) at 3496 Fairview Way, West Linn, OR 97068
or at such other place as Lender may, from time to time designate in writing, the principal sum of TWO
MILLION AND FIVE-HUNDRED THOUSAND DOLLARS AND 00/100THS ($2,500,000.00), or so much of that sum as may be advanced
under this Revolving Credit Promissory Note (“Note”) by Lender, with principal and interest thereon payable as specified
in this Note.

 

RECITALS

 

Borrower
has requested that Lender provide a revolving line of credit, and Lender is willing to provide such credit on the terms and conditions
set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the covenants and conditions, representations and warranties, and agreements contained herein,
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by all parties hereto,
Borrower and Lender hereby agree as follows:

 

	 	1.	Revolving
    Credit. Lender hereby establishes for a period extending
    to December 31, 2019 (the “MATURITY DATE”) a revolving line of credit (the “CREDIT LINE”) for Borrower
    in the principal amount of Two Million and Five-Hundred Thousand Dollars ($2,500,000.00) (the
    “CREDIT LIMIT”). All sums advanced on the Credit Line or pursuant to the terms of this Agreement (each an “ADVANCE”)
    shall become part of the principal. The principal balance of this Note represents a revolving credit, all or any part of which
    may be advanced to Borrower, repaid by Borrower, and re-advanced to Borrower from time to time, at the sole discretion of
    the Lender and subject to the Lenders ability to loan and the Lenders evaluation of the Borrower’s ability to timely
    repay and subject to the other terms hereof and the conditions contained in the Loan Agreement, and provided that Borrower
    shall not be entitled to any Advances which would cause the principal and accrued interest balance outstanding at any one
    time to exceed the CREDIT LIMIT. This Note also evidences any other sums payable under the Loan Agreement or any document
    securing this Note.

 

Borrower:
_____ Leader: _____

 

    	1

    	 

    

 

	 	2.	Interest
    Rate. Interest on this Note shall accrue from and after
    the date of each transaction, whether a payment, additional payment, or additional loan, at a rate of twenty
    percent (20%) per annum of the ending balance calculated on the last day of each month. Under
    no circumstances will the Interest Rate be more than the maximum rate allowed by applicable law and shall automatically be
    adjusted to that maximum rate if lower than the Interest Rate.
	 	 	 
	 	 	Requests
    for Advances. Advances may be made by
    Lender at the oral or written request of NEIL DEMERS, who is authorized
    to request Advances until written notice of the revocation of such authority is received from Borrower by Lender. Each request
    by Borrower for an Advance shall constitute a reaffirmation, as of the date of such request, of all of the representations
    and warranties of Borrower contained in this Agreement. Subject to the terms and conditions contained herein, Borrower shall
    have the right to obtain Advances, repay Advances and obtain additional Advances; however, all of the Advances hereunder shall
    be viewed as a single loan.
	 	 	 
	 	3.	Payment
    and Maturity Date. Principal and interest shall be payable
    as follows:

 

	 	a.	In
    arrears, beginning on the fifteenth (15th) day of July, 2015, and on the fifteenth (15th) day of each
    month thereafter until this Note matures, in consecutive equal monthly installments of principal
    and interest sufficient to pay off the loan by the maturity date and to be calculated each 28th day of the month
    based on the then outstanding balance of principal, interest and other charges ; and
	 	 	 
	 	b.	On
    December 31, 2019 (the “Maturity Date”), the entire unpaid principal amount and any accrued interest accrued remaining
    unpaid and all other sums due under this Note, subject to the Loan Agreement.

 

	 	4.	Prepayment.
    Borrower may from time to time, prepay all or part of the
    outstanding balance of the Loan without penalty.
	 	 	 
	 	5.	Default
    and Acceleration. If any payment required by this Note
    is not paid when due, this Note shall be in default. Upon default, the entire principal amount outstanding and accrued interest
    thereon may be accelerated, at the option of the Holder and, upon acceleration, shall at once become due and payable. To exercise
    this option, Holder shall give Maker a written Notice of Default and Acceleration specifying the amount of the nonpayment
    and/or the nature of the non-monetary default, and the date for payment of such nonpayment which date shall not be less than
    thirty (30) days for a monetary default and for cure of non-monetary default, from the date such Notice is mailed or otherwise
    delivered to Maker. Maker may reinstate the terms of this Note, as such was immediately before the Notice, by timely payment
    of the amount of nonpayment and/or timely cure of the non-monetary default as specified in the Notice of Default and Acceleration.
    Unless so reinstated, the indebtedness shall bear interest at the increased rate of twelve percent (12%) per annum from the
    date of the default. Holder shall be entitled to collect all reasonable costs and expenses of collection and/or suit, including,
    but not limited to, reasonable attorney fees.

 

Borrower:
_____ Leader: _____

 

    	2

    	 

    

 

	 	6.	Waivers.
    Any waiver of any of the terms of this Agreement by Lender
    shall not be construed as a waiver of any other terms of this Agreement, and no waiver shall be effective unless made in writing.
    The failure of Lender to exercise any right with respect to the declaration of any default shall not be deemed or construed
    to constitute a waiver by or to preclude Lender from exercising any right with respect to such default at a later date or
    with respect to any subsequent default by Borrower.
	 	 	 
	 	7.	Usury.
    In the event the interest provisions hereof or any exactions
    provided for herein or in the Loan Documents or any other instrument securing this Note shall result, because of any reduction
    of principal, or for any reason at any time during the life of the Revolving Line of Credit, in any effective rate of interest
    which, for any month, transcends the limit of the usury or any other law applicable to the Revolving Line of Credit, all sums
    in excess of those lawfully collectible as interest for the period in question shall, without further agreement or notice
    between or by any party hereto, be applied upon principal immediately upon receipt of such monies by Lender, with the same
    force and effect as though the payer had specifically designated such extra sums to be so applied to principal and Lender
    had agreed to accept such extra payment as a premium-free prepayment. In no event shall any agreed to or actual exaction as
    consideration for the Revolving Line of Credit transcend the limits imposed or provided by the laws applicable to this transaction
    or borrower hereof for the use or detention of money or for forbearance in seeking its collection.
	 	 	 
	 	8.	Governing
    Law; Jurisdiction. This Note is to be governed according
    to the laws of Colorado.
	 	 	 
	 	9.	Binding
    Effect. This Note shall be binding upon Borrower and
    its successors and assigns and shall inure to the benefit of Lender, and any subsequent holders of this Note, and their successors
    and assigns.
	 	 	 
	 	10.	Notice.
    All notices required or permitted in connection with this
    Note shall be given at the place and in the manner provided in the Loan Agreement for the giving of notices.
	 	 	 
	 	11.	Business
    Purpose; Time. The undersigned hereby represents that
    the proceeds of the Revolving Line of Credit evidenced by this Note will be used for a commercial or business purpose. Time
    is of the essence with regard to the performance of the obligations of the Borrower in this Note and each and every term,
    covenant and condition herein by or applicable to Borrower.
	 	 	 
	 	12.	Attorney
    Fees. Borrower further promises to pay all reasonable
    attorneys’ fees incurred by Lender in connection with any Event of Default hereunder and in any proceeding brought to
    enforce any of the provisions of this Note.

 

Borrower:
_____ Leader: _____

 

    	3

    	 

    

 

	 	13.	Interpretation
    and Incorporation. As used in this Note, the term “Lender”
    shall include each subsequent transferee and/or owner of this Note, whether taking by endorsement or otherwise. As used in
    this Note, the word “include(s)” means “include(s), without limitation”, and the word “including”
    means “including, but not limited to”.
	 	 	 
	 	14.	WAIVER
    OF JURY TRIAL. BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL
    BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, THE LOAN AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE
    TRANSACTIONS CONTEMPLATED THEREBY, OR ANY COLLATERAL ARISING THEREFROM
    OR CONNECTED THERETO. BORROWER REPRESENTS THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.
	 	 	 
	 	15.	Multiple
    Counterparts. This Agreement may be executed in any
    number of counterparts and the signatures delivered by electronically or by telecopy, each of which shall be an original,
    with the same effect as if the signatures thereto and hereto were upon the same instrument.
	 	 	 
	 	16.	Entire
    Agreement. This Agreement contains the entire agreement
    between the parties with respect to the transactions herein, and there is no agreement or understanding, oral or written,
    which is not set forth herein. This Agreement voids and supersedes the prior “Promissory Note” dated September
    2, 2014 and “Loan Agreement and Revolving Line of Credit Promissory Note,” dated October 15, 2014, made between
    both Parties, attached as Exhibit A and
    Exhibit B, respectively. Except as set forth herein, no party is making any representation or warranty to any other
    party. This Agreement may be amended or modified only by written document signed by the parties.
	 	 	 
	 	17.	Headings.
    Section headings are not to be considered a part of this
    Agreement and are not intended to be a full and accurate description of the contents hereof.
	 	 	 
	 	18.	Warranty
    of Authority. The undersigned individually warrants
    and represents that they are authorized to execute this Agreement and to bind the Party for whom they are signing and that
    each such Party has taken all actions to authorize the execution of this Agreement and to perform the terms and conditions
    set forth herein including, without limitation, all applicable and necessary corporate action.

 

[Signature
Page Follows]

 

Borrower:
_____ Leader: _____

 

    	4

    	 

    

  

 

Borrower:
_____ Leader: _____

 

    	5LICENSE
AGREEMENT

 

This
License Agreement (this “Agreement”) between PLANDAI BIOTECHNOLOGY, INC (“Plandai”), a Nevada Corporation,
and DIEGO PELLICER WORLDWIDE INC., a Delaware corporation (“Pellicer”), sets forth the agreement and understanding
of the parties respecting the licensing of the Intellectual Property (defined below), as of January 28, 2014.

 

WHEREAS,
Pellicer owns certain US intellectual property rights appertaining to the name “Diego Pellicer” and which are proprietary
to Pellicer, and

 

WHEREAS,
Plandai desires to obtain a license in the Intellectual Property.

 

In
consideration of the mutual agreements and covenants set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Plandai and Pellicer hereby agree as follows:

 

General

 

	1.1	Subject
    to the terms and conditions of this Agreement, Pellicer hereby grants to Plandai a license to use the intellectual property
    set forth on Exhibit A hereto (the “Intellectual Property”) in connection with the manufacture, distribution or
    wholesale sale of products using the name “Diego Pellicer” which have been manufactured using Plandai’s
    Phytofare process, CRS hydrodynamic sheering process or subjected to the Pheroid® entrapment process (collectively, the
    “Process”), on an exclusive basis, in any countries where such trademarks and/or trade names are filed. The license
    granted in this Agreement is limited to Plandai’s use of the Intellectual Property. No provision of this Agreement grants
    Plandai, by implication, estoppel or otherwise, any rights other than the rights expressly granted in this Agreement to the
    Intellectual Property, or to any other Pellicer owned property.
	 	 
	1.2	Plandai
    shall not have the right to sublicense its rights under this this Agreement to any third party, except as specifically contemplated
    hereby.
	 	 
	1.3	Pellicer
    reserves all rights not expressly granted to Plandai under this Agreement.
	 	 
	1.4	This
    Agreement will commence on the Closing Date (as defined below) and shall remain in effect until the ten year anniversary of
    the Closing Date, and thereafter, the term of this Agreement shall automatically renew for five-year terms, unless earlier
    terminated in accordance with the provisions hereof.
	 	 
	1.5	Plandai
                                         shall notify Pellicer in advance of its intent to commence the international wholesale
                                         distribution of any product utilizing the intellectual Property and Pellicer shall have
                                         thirty (30) days to file for trademark protection in such countries as indicated by Plandai.
                                         If Pellicer declines to file for such international protection, Plandai shall have the
                                         right to file international trademark claims covering the “Diego Pellicer”
                                         trade name and logo in any country where Plandai is currently wholesale distributing
                                         any product or where any product wholesale distribution is anticipated. In the event
                                         Plandai files for international trademark claims covering the “Diego Pellicer”
                                         trade name and logo in any country, Plandai shall list Pellicer as the owner of such
                                         trademark, or immediately assign such trademark rights to Pellicer, with this Agreement
                                         being the consideration for such assignment.

 

 

    	 

    	 

    

 

	1.6	Plandai
    agrees to differentiate its products from those produced by Pellicer by appending the identifier “Gold” or some
    other mutually acceptable term(s) to its packaging, advertising, and marketing materials. In all cases, Plandai shall differentiate
    its products manufactured using the Intellectual Property from those produced by Pellicer by placing a notation on the packaging
    of such products, in form and substance approved by Pellicer, which approval shall not be unreasonably withheld, notifying
    consumers that the product was manufactured using the Process. Plandai shall have the right to request additional “sub-brands”
    using the Diego Pellicer prefix (e.g. - “Diego Pellicer Platinum,“etc,) during the course of this license and
    shall notify Pellicer in writing of any such request, the consent to which shall not be unreasonably withheld, Reasonable
    justification for withholding consent shall include the prior or current use of such name by Pellicer or the potential for
    confusion with current Pellicer branding.
	 	 
	1.7	Pellicer
    shall have the right to inspect, with reasonable notice, Plandai’s goods, including promotional materials bearing the
    licensed trademarks, to ensure that Plandai is in compliance with quality control standards of Pellicer in place at the time.
    In the event Pellicer believes in good faith that Plandai’s use of the trademarks is not in compliance with quality
    control standards agreed upon between the parties, then Pellicer shall provide notice to Plandai, The parties will work diligently
    and in good faith to ensure that any deficiencies are remedied within a reasonable period of time, In the event the deficiencies
    cannot be remedied after such good faith effort, Pellicer shall have the right to prohibit Plandai’s use of the Intellectual
    Property in connection with those goods or services not in compliance with agreed upon standards.
	 	 
	1.8	Plandai
    will use/display the Intellectual Property only in the manner provided by Pellicer and will not modify the logos, or change
    the proportions, color schemes, spelling or character spacing of the Intellectual Property, without prior written authorization
    from Pellicer.
	 	 
	1.9	Plandai
    shall have the right to change its name and/or create a new operating subsidiary under the name “Diego Pellicer Biotechnology”
    or “Diego Pellicer Biotechnologies”, and shall have the right to abbreviate such names in ways which do not cause
    confusion with Pellicer companies, e.g. “Diego Biotech”.
	 	 
	1.10	In
    the event Pellicer abandons the Intellectual Property through bankruptcy or insolvency, Plandai’s (and its successors)
    rights to the Intellectual Property shall revert to a fully- paid, perpetual license to use the same.

 

 

    	- 2 -

    	 

    

  

	1.11	As
    consideration to Pellicer under this Agreement, Plandai shall issue to Pellicer a warrant to purchase a total of three million
    three hundred thirty-three thousand three hundred thirty-four (3,333,334) shares of restricted common stock at an exercise
    price of $0.01 per share (the “Warrant”), such shares being issued upon exercise of the Warrant in accordance
    with Exhibit B attached hereto and subject to “leak out” provisions as set forth in Exhibit C attached hereto.
    The Warrant shall be exercisable for so long as this Agreement is in effect, but it no event shall it be exercisable for a
    period of less than ten (10) years from the Closing Date. The Warrant shall also contain a cashless exercise provision.
	 	 
	1.12	Plandai
    and Pellicer agree that nothing in this Agreement constitutes a competitive relationship as Plandai shall not engage in direct-to-consumer
    sales and shall limit itself to extract production and wholesale sales. Likewise, Pellicer shall not engage in the production
    of extracts employing the Process.
	 	 
	1.13	The
    closing of the transactions contemplated by this Agreement (the “Closing”) shall take place on February 10, 2014
    if the conditions set forth in Sections 5 and 6 have been satisfied, or as soon thereafter as such conditions have either
    been satisfied or waived by the party benefiting from such conditions, at the offices of Pellicer, or at such other place
    as the parties shall agree (the “Closing Date”), and shall be effective as of 12:01 a.m. on the Closing Date.

 

Representations,
Warranties and Covenants of Pelliccr

 

Pellicer
hereby represents and warrants to Plandai as of the Closing Date as follows:

 

	2.1	Pellicer
    is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, with all requisite
    power and authority (corporate and other) to own its properties and assets and to conduct its business as now conducted.
	 	 
	2.3	As
    of the Closing Date, Pellicer will have the corporate power to enter into this Agreement and to carry out its obligations
    hereunder. As of the Closing Date, the execution and delivery of this Agreement and all agreements contemplated hereunder
    and the performance of Pellicer’s obligations hereunder and thereunder, will have been duly authorized by the board
    of directors of Pellicer.
	 	 
	2.4	No
    consent, waiver, authorization, or approval of any governmental or regulatory authority, domestic or foreign, or of any other
    person, firm or corporation, and no declaration to or filing or registration with any such governmental or regulatory authority,
    is required in connection with the execution and delivery of this Agreement by Pellicer or the performance by Pellicer of
    its obligations hereunder.
	 	 
	2.5	As
    of the Closing, Pellicer will be the sole owner of all right, title and interest in and to the Intellectual Property. Pellicer
    does not have any subsidiaries or affiliates that have any rights or interests, directly or indirectly, in any of the Intellectual
    Property. As of the Closing Date, Pellicer will have the legal right to perform its obligations as set forth in this Agreement,
    and Pellicer will have not executed any agreement which is in conflict with the terms of this Agreement.

 

 

    	- 3 -

    	 

    

  

	2.6	As
    of the Closing Date:

 

	 	(a)	The
    Intellectual Property is held exclusively by Pellicer free and clear of all options, liens, security interests, agreements,
    restrictions and other encumbrances, except for that certain Trademark Consent Agreement by and between Pellicer and Diego
    Pellicer, Inc., a Washington corporation (“Diego Pellicer”), Which grants Diego Pellicer a right to use the Intellectual
    Property in connection with cannabis retail sales within the State of Washington.
	 	 	 
	 	(b)	There
    are no challenges, proceedings or infringement suits pending or, to the knowledge of Pellicer, threatened with respect to
    the Intellectual Property.

 

	 	(c)	Plandai
    will be granted a license to use the Intellectual Property in connection with the manufacture, distribution or sale of products
    using the name “Diego Pellicer” which have been manufactured using the Process, on an exclusive basis, in any
    countries where such trademarks and/or trade names are filed.

 

	2.7	Pellicer
    represents and warrants that it is not subject to any agreement, judgment or decree which could materially and adversely affect
    its ability to satisfy its obligations hereunder.
	 	 
	2.8 	No
    agent, broker, finder or investment or commercial banker, or other persons or firms engaged by or acting on behalf of Pellicer
    or its affiliates in connection with the negotiation, execution or performance of this Agreement or the transactions contemplated
    by this Agreement, is or will be entitled to receive any broker’s or finder’s or similar fees or other commissions
    as a result of this Agreement or such transactions.

 

Representations
and Warranties of Plandai

 

Plandai
hereby represents and warrants to Pellicer, and covenants and agrees, as of the Closing Date, as follows:

 

	3,1	Plandai
    is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, with all requisite
    power and authority (corporate and other) to own its properties and assets and to conduct its business as now conducted.

 

 

    	- 4 -

    	 

    

  

	3.2	As
    of the Closing Date, Plandai will have the corporate power to enter into this Agreement and to carry out its obligations hereunder.
    As of the Closing Date, the execution and delivery of this Agreement and all agreements contemplated hereunder and the performance
    of Plandai’s obligations hereunder and thereunder, will have been duly authorized by the board of directors of Plandai,
    and no other corporate proceedings on the part of Plandai will be necessary to authorize such execution, delivery and performance.
	 	 
	3.3	This
    Agreement and all agreements contemplated hereunder have been duly executed by Plandai and, as of the Closing Date, will constitute
    valid and legally binding obligations of Plandai, enforceable against Plandai in accordance with the terms hereof and thereof,
    except to the extent that such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or other similar
    laws now or hereafter in effect relating to creditors’ rights generally, and the remedy of specific performance and
    injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before
    which any proceeding therefore may be brought.
	 	 
	3.4	Neither
    the execution, delivery nor the performance of this Agreement by Plandai (or any of its subsidiaries or affiliates, including
    any entities to be formed in contemplation of this Agreement) and all agreements contemplated hereunder violates or will violate
    any provision of federal, state or municipal law, of any order, judgment or decree of any court or other governmental or regulatory
    authority, or of the charter documents or by-laws of Plandai, nor violates or will result, in a breach of or constitute (with
    due notice or lapse of time or both) a default under any contract, lease, loan agreement, mortgage, security agreement, trust
    indenture or other agreement or instrument to which Plandai is a party or by which it is bound or to which any of its properties
    or assets is subject, nor will it result in the creation or imposition of any lien, charge or encumbrance of any kind whatsoever
    upon any of the properties or assets of Plandai. Further, Plandai hereby represents and warrants to Pellicer that it will
    not (nor will any of its subsidiaries or affiliates, including any entities to be formed in contemplation of this Agreement),
    manufacture any products containing cannabis or cannabis extracts, nor wilt it use the Intellectual Property for any such
    products, in any jurisdiction in which the production, processing, and retailing of cannabis by privately owned entities for
    recreational use is prohibited by national or local law.
	 	 
	3.5	Other
    than requirements of federal and state securities laws, no filing or registration with, no notice to and no permit, authorization,
    consent or approval of any third party or any public or governmental body or authority is necessary for the consummation by
    Plandai of the transactions contemplated by this Agreement.
	 	 
	3.6	No
    agent, broker, tinder or investment or commercial banker, or other person or firms engaged by or acting on behalf of Plandai
    or its affiliates in connection with the negotiation, execution or performance of this Agreement or the transactions contemplated
    by this Agreement, is or will be entitled to receive any broker’s or finder’s or similar fees or other commissions
    as a result of this Agreement or such transactions.

 

 

    	- 5 -

    	 

    

  

Additional
Agreements and Covenants

 

	4,1
    	After
    the Closing, Pellicer shall deliver all artwork, including electronic versions, of any trademarks and labeling it may now
    have or may later have in connection with the Intellectual Property.

 

Conditions
to Pellicer’s Obligation to Close

 

	5.1	The
    obligation of Pellicer to enter into this Agreement on the Closing Date is subject to the satisfaction, as of the Closing
    Date, of each of the following conditions, provided that these conditions are for Pellicer’s sole benefit and may be
    waived by Pellicer al any time in its sole discretion:

 

	 	(a)	Plandai
    shall have executed this Agreement and delivered the same to Pellicer.
	 	 	 
	 	(b)	Plandai
    shall have delivered to Pellicer the Warrant. There will be no preemptive rights in respect of any of the Plandai Common Stock
    issued upon exercise of the Warrant.
	 	 	 
	 	(c)	The
    representations and warranties of Plandai shall be true and correct as of the date when made and as of the Closing as though
    made at that time (except for representations and warranties that speak as of a specific date), and Plandai shall have performed,
    satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to
    be performed, satisfied or complied with by Plandai at or prior to the Closing.
	 	 	 
	 	(d)	No
    statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or
    endorsed by any court or governmental authority of competent jurisdiction having authority over the matters contemplated hereby
    which restricts or prohibits the consummation of any of the transactions contemplated by this Agreement.

 

Conditions
to Plandai’s Obligation to Close

 

	6.1	The
    obligation of Plandai to enter into this Agreement on the Closing Date is subject to the satisfaction of each of the following
    conditions, provided that these conditions are for Plandai’s sole benefit and may be waived by Plandai at any time in
    Plandai’s sole discretion:

 

	 	(a)	Pellicer
    shall have executed this Agreement and delivered the same to Plandai.
	 	 	 
	 	(b)	Each
    of the individuals listed on Exhibit B and designated as recipients of the shares of Plandai shall have executed the Leak
    Out Agreement as set forth in Exhibit C.

 

 

    	- 6 -

    	 

    

  

	 	(c)	Pellicer
    shall have provided Plandai with copies of all documents, artwork, etc., appertaining to the Intellectual Property.
	 	 	 
	 	(d)	The
    representations and warranties of Pellicer shall be true and correct as of the date when made and as of the Closing as though
    made at that time (except for representations and warranties that speak as of a specific date) and Pellicer shall have performed,
    satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to
    be performed, satisfied or complied with by Pellicer at or prior to the Closing.

 

Indemnification

 

	7.1	Pellicer
    hereby agrees to indemnify and hold harmless Plandai, and any person or entity controlling, controlled by or under common
    control with Plandai, from and against any and all claims, damages, liabilities, losses and expenses (including reasonable
    attorneys’ fees) resulting from or arising out of (i) any breach by Pellicer of any covenant, representation, warranty
    or obligation of Pellicer contained in this Agreement or any agreement executed in connection with this Agreement, (ii) any
    liability or obligation of Pellicer existing as of the Closing Date, or (iii) any liability or obligation for any injury to
    person or property arising from or relating to the use, prior to the Closing Date, of the Intellectual Property.
	 	 
	7.2	Plandai
    hereby agrees to indemnify and hold harmless Pellicer, and any person or entity controlling, controlled by or under common
    control with Pellicer, from and against any and all claims, damages, liabilities, losses and expenses (including reasonable
    attorneys’ fees) resulting from or arising out of (i) any breach by Plandai of any covenant, representation, warranty
    or obligation of Plandai contained in this Agreement or any agreement executed in connection with this Agreement, (ii.) any
    liability or obligation of Plandai existing as of the Closing Date, or (iii) any liability or obligation for any claim relating
    to, or in connection with, Plandai’s use of the Intellectual Property after the Closing Date.

 

 

    	- 7 -

    	 

    

  

	7.3	The
    party to be indemnified hereunder (the “Indemnified Party”) shall notify in writing (such notification shall be
    referred to herein as a “Claims Notice”) the indemnifying party (the “Indemnifying Party”) within
    (i) sixty (60) days after a claim is presented to the Indemnified Party or the Indemnified Party becomes aware of substantial
    facts that would reasonably appear to the Indemnified Party to be likely to give rise to a claim for indemnity hereunder,
    or (ii) five (5) days if the Indemnified Party receives formal notice of the filing of a suit, petition or claim or the scheduling
    of a hearing related to a matter which may give rise to claim for indemnity hereunder, Each Claims Notice shall, if feasible,
    contain a reasonable estimate by the Indemnified Party of the losses, costs, liabilities and expenses (including, but not
    limited to, costs and expenses of litigation and attorneys’ fees) which the Indemnified Party may incur.
	 	 
	 	The Indemnifying Party shall have the right to defend
    a claim and control the defense, settlement and prosecution of any litigation; provided, however, in order to have the right
    to defend a claim and control the defense, settlement and prosecution of any litigation, the Indemnifying Party (i) must expressly
    acknowledge the assumption by it of all liabilities related to such litigation, including without limitation, the cost of
    such defense, settlement and prosecution of such litigation, and (ii) unless the Indemnified Party consents otherwise in writing,
    may only compromise or settle such litigation solely for money damages for which the Indemnifying Party shall be fully liable.
    If the Indemnifying Party fails to defend such claim, the Indemnified Party will (upon further notice to the Indemnifying
    Party) have the right to undertake the defense, compromise or settlement of such claim on behalf and for the account and risk
    of the Indemnifying Party. The Indemnifying Party will make available to the Indemnified Party or its representatives, at
    the Indemnifying Party’s expense, all records and other materials in the Indemnifying Party’s possession and all
    employees or agents of the Indemnifying Party required by the Indemnified Party for the Indemnified Party’s use in contesting
    any such claim, and the Indemnified Party and its representatives agree that they will not use the Indemnifying Party’s
    making available to them of any such material, or its agreement to do so, as a basis for asserting a waiver by the Indemnifying
    Party of any statutory or common law privilege the Indemnifying Party might have in any other proceedings, whether related
    or unrelated to the matter giving rise to the claim. If the Indemnified Party fails to notify the Indemnifying Party of a
    claim in accordance with the terms of this Section 7.3, and the Indemnifying Party is thereby materially prejudiced by such
    failure of notice in its defense of the claim, the Indemnifying Party’s obligation to indemnify hereunder shall be extinguished
    with respect to such claim to the extent that the Indemnifying Party has been prejudiced by the failure to give such notice,
    The amount of losses for which indemnification is provided under this Agreement shall be net of any amounts recovered by the
    Indemnified Party under insurance policies or from unaffiliated third parties with respect to such losses.

 

Mediation
of Disputes; Arbitration of Disputes

 

	8.1	 Plandai
    and Pellicer each agree to mediate in good faith all disputes arising out of or relating to this Agreement or the breach thereof,
    which mediation costs shall be split equally between Plandai and Pellicer, Any controversy or claim arising out of or relating
    to this Agreement or the breach thereof, which is not settled through mediation shall be settled by arbitration administered
    by the American Arbitration Association in accordance with its Commercial Arbitration Rules (including the Emergency Interim
    Relief Procedures), and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction
    thereof. The place of the arbitration shall be King County, Washington. Each party shall bear its own costs and expenses including
    legal fees and an equal share of the arbitrator’s and administrative fees of arbitration.

 

 

    	- 8 -

    	 

    

  

NOTICE:
BY INITIALING IN THE SPACE BELOW, YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE BREACH
THEREOF DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY WASHINGTON LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE
THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO APPEAL.
IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY
OF THE WASHINGTON CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THE ARBITRATION PROVISION IS VOLUNTARY.

 

WE
HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OR RELATING TO THIS AGREEMENT OR THE BREACH THEREOF
TO NEUTRAL ARBITRATION.

 

 

	8.2
    	This
    Agreement shall be governed by and construed in accordance with the laws of the State of Washington applicable to contracts
    made and to be performed in the State of Washington, without giving effect to the principles of conflicts of law.

 

Termination

 

	9.1	If
    Plandai breaches or fails to perform one or more of its materials duties under this Agreement, Pellicer may deliver to Plandai
    a written notice of default. Pellicer may terminate this Agreement by delivering to Plandai a written notice of termination
    if the default has not been cured in full within twenty (20) days of the delivery to Plandai of the notice of default.
	 	 
	9.2	This
    Agreement shall automatically terminate if Plandai: (i) becomes insolvent; (ii) voluntarily files or has filed against it
    a petition under applicable bankruptcy or insolvency laws that Plandai fails to have released within sixty (60) days after
    filing; (iii) proposes any dissolution, composition, or financial reorganization with creditors if a receiver, trustee, custodian,
    or similar agent is appointed; or (iv) makes a general assignment for the benefit of creditors.
	 	 
	9.3	Plandai
    may terminate this Agreement at any time by delivering to Pellicer a written notice of termination at least 20 (20) days prior
    to the effective date of the termination.
	 	 
	9.4	After
    termination of this Agreement, Plandai shall immediately cease all use of the Intellectual Property, and shall return all
    Intellectual Property in its possession (including all artwork, in whatever medium) to Pellicer within ten (10) days of termination.

 

 

    	- 9 -

    	 

    

  

General
Provisions

 

	10.1	 This
    Agreement may be executed in two or more counterparts, including, without limitation, by facsimile transmission, all of which
    counterparts shall be considered one and the same agreement and shall become effective when counterparts have been signed
    by each party and delivered to the other party. In the event any signature page is delivered by facsimile transmission, the
    party using such means of delivery shall promptly cause additional originally executed signature pages to be delivered to
    the other party.
	 	 
	10.2	The
    headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
    Agreement.
	 	 
	10.3	If
    any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
    shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this
    Agreement in any other jurisdiction.
	 	 
	10.4	This
    Agreement, the Schedules and Exhibits hereto, which are incorporated herein by this reference, and the instruments referenced
    herein contain the entire understanding of the parties and supersedes all prior and/or contemporaneous agreement or understanding
    with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither Plandai
    nor Pellicer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
    of this Agreement may be waived other than by an instrument in writing signed by the party to be charged with enforcement
    and no provision of this Agreement may be amended other than by an instrument in writing signed by Plandai and Pellicer.
	 	 
	10.5	Any
    notice herein required or permitted to be given shall be in writing and may be personally served or delivered by nationally-recognized
    overnight courier or by facsimile- machine confirmed telecopy, and shall be deemed delivered at the time and date of receipt
    (which shall include telephone line facsimile transmission). Each party shall provide notice to the other party of any change
    in address. The addresses for such communications shall be:

 

	 	If
    to Pellicer:
	 	 
	 	Diego
    Pellicer Worldwide Inc. 

    3496 Fairview Way 

    West Linn, Oregon 97068 

    Attention; Chief Executive Officer
	 	 
	 	with
    a copy (which shall not constitute notice) to:
	 	 
	 	Caimcross
    & Hempelmann, P.S. 

    524 Second Avenue, Suite 500 

    Seattle, Washington 98104 

    Attention: Michael W. Moyer

 

 

    	- 10 -

    	 

    

 

	 	If
    to Plandai:
	 	 
	 	Plandai
    Biotechnology, Inc. 

    2226 Eastlake Ave. 

    Seattle, WA 

    (435)881-8734 

    rd@plandaibiotech.com 

    Attn; Roger Baylis-Duffield

 

	10.6	This
    Agreement shall be binding upon and inure to the benefit of the parties and their successors. Neither Plandai nor Pellicer
    shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other.
	 	 
	10.7	This
    Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not
    for the benefit of, nor may any provision hereof be enforced by, any other person.
	 	 
	10.8	All
    representations and warranties in this Agreement shall survive the execution and delivery of this Agreement and the Closing.
    All agreements contained herein shall survive the Closing until, by their respective terms, they are no longer operative.
	 	 
	10.9	Each
    party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
    all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to
    carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

 

    	- 11 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]