Document:

W-NET,
INC.

 

December
10, 2014

 

DigiPath,
Inc.

6450 Cameron
Street, Suite 113

Las Vegas,
NV 89014

 

Re:
DigiPath, Inc. - Lock-Up Agreement

 

Dear
Sirs:

 

This
Lock-Up Agreement is being delivered to you in connection with that certain Consulting, Confidentiality and Proprietary Rights
Agreement (the “Agreement”), dated as of the date hereof, by and between DigiPath, Inc. (the “Company”)
and W-Net, Inc. (“Consultant”).

 

In
order to induce the Company to enter into the Agreement, the undersigned agrees that, during the term of the Agreement, and thereafter
until the earlier of (i) ninety (90) days following expiration or termination of the Agreement or (ii) the filing by the Company
of an Annual Report on Form 10-K or a Quarterly Report on Form 10-Q with the Securities and Exchange Commission following expiration
or termination of the Agreement (the “Lock-Up Period”), the undersigned (and its affiliates) will not (i) sell,
offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase, make any short sale or otherwise
dispose of or agree to dispose of, directly or indirectly, any shares of Common Stock of the Company (“Common Stock”),
or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning
of Section 16 of the Securities and Exchange Act of 1934, as amended and the rules and regulations of the Securities and Exchange
Commission promulgated thereunder with respect to any shares of Common Stock owned directly by the undersigned and its affiliates
(including holding as a custodian) or with respect to which the undersigned (or its affiliates) has beneficial ownership within
the rules and regulations of the Securities and Exchange Commission, or (ii) enter into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of any shares of Common Stock, owned directly by
the undersigned and its affiliates (including holding as a custodian) or with respect to which the undersigned (or its affiliates)
has beneficial ownership within the rules and regulations of the Securities and Exchange Commission, whether any such transaction
is to be settled by delivery of such securities, in cash or otherwise (collectively, the “Undersigned’s Shares”).

 

The
foregoing restriction is expressly agreed to preclude the undersigned or any affiliate of the undersigned from engaging in any
hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition
of the Undersigned’s Shares even if the Undersigned’s Shares would be disposed of by someone other than the undersigned.
Such prohibited hedging or other transactions would include, without limitation, any short sale or any purchase, sale or grant
of any right (including, without limitation, any put or call option) with respect to any of the Undersigned’s Shares or
with respect to any security that includes, relates to, or derives any significant part of its value from the Undersigned’s
Shares.

 

    	 

    	 

    

 

Notwithstanding
the foregoing, the undersigned may transfer the Undersigned’s Shares to any affiliate of the undersigned, provided that
such affiliate agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer
shall not involve a disposition for value. The undersigned now has, and, except as contemplated by the foregoing sentence, for
the duration of the Lock-Up Period will have, good and marketable title to the Undersigned’s Shares, free and clear of all
liens, encumbrances, and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of the Undersigned’s Shares except in compliance
with the foregoing restrictions.

 

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s
legal representatives, successors, and assigns.

 

This
Lock-Up Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered
one and the same instrument.

 

This
Lock-Up Agreement will be governed by and construed in accordance with the laws of the State of California, without giving effect
to any choice of law or conflicting provision or rule (whether of the State of California, or any other jurisdiction) that would
cause the laws of any jurisdiction other than the State of California to be applied.

 

[The remainder
of the page is intentionally left blank]

 

    	 

    	 

    

 

	 	Very truly yours,
	 	 	 
	 	W-NET
    FUND I LP
	 	By: W-Net Fund GP I, LLC
	 	 	 
	 	By:	/s/ David Weiner
	 	Name:	David
    Weiner
	 	Title:	Manager

 

Agreed to
and Acknowledged:

 

DIGIPATH,
INC.

 

	By:	/s/
    Todd Denkin	 
	Name:	Todd
    Denkin	 
	Title:	CEONONDISCLOSURE
AGREEMENT

 

THIS
NONDISCLOSURE AGREEMENT (this “NDA”) is made as of December 9th,
2014 (the “Effective Date”) by and between DigiPath, Inc., located at 6450 Cameron Street, Suite 113,
Las Vegas, Nevada 89118 (“Discloser”), and W-Net, Inc. (“Recipient”).

 

	1.	Scope
    of NDA. This NDA governs all disclosures of Confidential
    Information by Discloser in the course of exploring one or more strategic business transactions or relationships with Recipient
    (“Strategic Discussions”).
	 	 
	2.	Definitions.
    “Confidential Information” means any of Discloser’s
    (or its Affiliates’) information, including, without limitation, science, formulas, patterns, compilations, programs,
    software, devices, designs, drawings, methods, techniques and processes, financial information and data, business plans, business
    strategies, marketing plans, customer lists, price lists, cost information, information about employees, descriptions of inventions,
    process descriptions, descriptions of technical know-how, information and descriptions of new products and new product development,
    scientific and technical specifications and documentation, and pending or abandoned patent applications of a party, now known
    or in possession of, or hereafter learned or acquired, that derives economic value, actual or potential, from not being generally
    known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure
    or use. All Confidential Information disclosed in tangible form must be marked as “confidential” or “proprietary”
    or with words of similar import, and all Confidential Information disclosed orally must be identified as confidential at the
    time of disclosure and summarized in writing within thirty (30) days of disclosure. “Affiliate”,
    with respect to any Person, means any other Person
    that, directly or indirectly, is controlled by, controls or is under common control with that Person, including, without limitation,
    any officer, director, manager, general partner, controlling stockholder or managing member of any Person.
    “Control”, with respect to any
    Person, means the power, directly or indirectly, to direct the management and policies of that Person. “Person”
    shall be broadly interpreted to include,
    without limitation, any individual, corporation, company, association, partnership, joint venture, trust, estate, governmental
    agency or other entity of whatsoever kind or nature.
	 	 
	3.	Exceptions.
    Confidential Information does not include information which:
    (i) is in the possession of the Recipient at the time of disclosure as shown by the Recipient’s files and records immediately
    prior to the time of disclosure; (ii) prior or after the time of disclosure becomes part of the public knowledge or literature,
    not as a result of any inaction or action of the Recipient; (iii) is lawfully obtained from a third party without any breach
    of a confidentiality obligation to the Discloser; (iv) is approved for release by the Discloser in writing; or (v) is shown
    by written record to be developed independently by the Recipient.
	 	 
	4.	Non-use
    and Nondisclosure. The Recipient agrees not to use the
    Confidential Information for any purpose except to conduct the Strategic Discussions. Recipient will not disclose any Confidential
    Information to any third parties except those directors, officers, employees, consultants and agents who have a need to know
    the Confidential Information in order to carry out the Strategic Discussions. Recipient shall ensure that all such persons
    are bound by non-disclosure terms in content substantially similar to this NDA. Recipient will be responsible for breaches
    of this NDA by any such person. Recipient agrees that it will take all reasonable measures to protect the secrecy of and avoid
    disclosure or use of Confidential Information, which measures shall include the highest degree of care the Recipient utilizes
    to protect its own Confidential Information of a similar nature, but in no event less than a reasonable degree of care. Recipient
    agrees to notify Discloser in writing of any misuse or misappropriation of such Confidential Information which may come to
    its attention.
	 	 
	5.	Mandatory
    Disclosure. In the event that Recipient or its respective
    directors, officers, employees, consultants or agents are requested or required by legal process to disclose any of Discloser’s
    Confidential Information, Recipient shall give prompt written notice (to the extent legally permissible) so that Discloser
    may seek a protective order or other appropriate relief. In the event that such protective order is not obtained, Recipient
    shall disclose only that portion of the Confidential Information that its counsel advises that it is legally required to disclose.
	 	 
	6.	Return
    of Materials. Any materials or documents embodying Confidential
    Information which have been furnished to the Recipient will be promptly returned, accompanied by all copies of such documentation
    upon the earlier of the written request thereof by Discloser or the termination or expiration of this NDA. Notwithstanding
    the return of Confidential Information, Recipient will continue to be bound by the obligations of confidentiality hereunder.
	 	 
	7.	No
    License Granted. Nothing in this NDA is intended to
    grant Recipient any rights under any patent, copyright, trade secret or other intellectual property right, nor shall this
    NDA grant Recipient any rights in or to Discloser’s Confidential Information except the limited right to review such
    Confidential Information solely for the purposes set forth in Section 1. All such rights shall remain exclusively owned by
    Discloser. Recipient shall not derive or attempt to derive source code, reverse engineer, disassemble or decompile any products,
    models, prototypes, software or other objects that embody the Confidential Information of the Discloser.
	 	 
	8.	No
    Representations. Recipient hereby acknowledges that
    the Discloser makes no representation or warranty, express or implied, as to the accuracy or completeness of the Confidential
    Information or any component thereof, and that any information being provided by the Discloser pursuant to this NDA is being
    provided “as is”. The parties agree that any Strategic Discussions contemplated by this NDA may or may not lead
    to business or other relationships between them and no party has any obligation to disclose any Confidential Information or
    conclude any such relationships or enter into any further agreements.
	 	 
	9.	Term.
    This NDA shall continue in effect until the first anniversary
    of the Effective Date.
	 	 
	10.	Publicity.
    Recipient agrees that neither Recipient nor its Affiliates
    or representatives shall disclose to any Person who is not authorized to receive the Confidential Information either the fact
    that this NDA exists, that discussions or negotiations are taking place concerning Strategic Discussions or any of the terms,
    conditions or other facts with respect to any aspect of the Strategic Discussions, including the status thereof or the Persons
    involved, except as required as a result of any legal process after compliance by Recipient with the provisions of Section
    5.

 

    	 

    	 

    

 

NONDISCLOSURE
AGREEMENT

 

	11.	Miscellaneous.

 

	 	a.	This
    NDA shall be binding upon and for the benefit of the undersigned parties, their successors and assigns, provided that this
    NDA or the Confidential Information of the Discloser may not be assigned by Recipient without the prior written consent of
    the Discloser. Failure to enforce any provision of this NDA shall not constitute a waiver of any term hereof. A waiver given
    on any one occasion is effective only in that instance and will not be construed as a waiver of any right on any other occasion.
	 	 	 
	 	b.	If
    any provision of this NDA shall be held by a court of competent jurisdiction to be illegal, invalid or unenforceable, the
    remaining provisions shall remain in full force and effect.
	 	 	 
	 	c.	This
    NDA sets forth the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior
    or contemporaneous agreements, proposals, understandings and representations, written or oral, between the parties with respect
    to the subject matter hereof. All modifications of, waivers of and amendments to this NDA or any part hereof, must be in writing
    and signed on behalf of each party. This NDA may be executed in counterparts, including facsimile, PDF or other electronic
    copies thereof, and each such counterpart shall be an original and altogether shall constitute but one and the same document.

 

	12.	Governing
    Law and Jurisdiction. This NDA shall be governed by
    and construed and enforced in accordance with the internal law of the State of California, without regard to any choice-of-law
    provisions, and shall be binding upon the parties hereto in the United States and worldwide. The federal and state courts
    located in the State of California shall have exclusive jurisdiction to adjudicate any dispute arising out of this NDA.
	 	 
	13.	Injunctive
    Relief. Recipient agrees and acknowledges that any violation
    or threatened violation of this NDA will cause irreparable injury to Discloser and that, in addition to any other remedies
    that may be available, in law, in equity or otherwise, Discloser shall be entitled to obtain injunctive relief against the
    threatened breach of this NDA or the continuation of any such breach, in any court of competent jurisdiction (notwithstanding
    the provisions of Section 12), without the necessity of proving actual damages or posting a bond.

 

ACCEPTED
AND AGREED:

 

	W-NET,
    INC.	 	DIGIPATH,
    INC.
	 	 	 	 	 
	By:	/s/ David Weiner	 	By:	/s/
    Todd Denkin
	 	(Signature)	 	 	(Signature)
	Name:	David
    Weiner	 	Name:	Todd
    Denkin
	Title:	President	 	Title:	CEO

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