Document:

Exhibit
10.2

 

Severance
Agreement and General Release

 

This
Severance Agreement and General Release (“Agreement”) is entered into between NuZee, Inc. (the “Company”),
and Shanoop Kothari (the “Employee”) (collectively the “Parties” and each, individually, a “Party”).
All terms not otherwise defined herein shall have the same meaning as set forth in the Employee’s Employment Agreement, dated March
31, 2019 (the “Employment Agreement”), and the Parties’ Restricted Stock Award Agreement under the NuZee, Inc.
2019 Stock Incentive Plan (the “Plan”), which lists a Date of Grant of January 11, 2021 (the “Restricted
Stock Award Agreement”).

 

TERMS

 

1.
Termination of Employment Relationship. The Company has accepted Employee’s voluntary resignation submitted to the Company
on June 22, 2021, to be effective on the earlier of August 16, 2021 or the date that the Company’s Quarterly Report on Form 10-Q
for the quarter ended June 30, 2021 (the “Form 10-Q”) is filed with the Securities and Exchange Commission (the “SEC”)
(the “Separation Date”). After the Separation Date, the Employee will not represent himself as being an employee,
officer, agent, or representative of the Company for any purpose. Except as otherwise set forth in this Agreement, the Separation Date
is the employment termination date for the Employee for all purposes, meaning the Employee is not entitled to any further compensation,
monies, or other benefits from the Company, including coverage under any benefit plans or programs sponsored by the Company, as of the
Separation Date.

 

2.
Return of Property. The Employee covenants and agrees that
he will return on the Separation Date all Company property, including identification cards or badges, access codes or devices, keys,
laptops, computers, phones, hand-held electronic devices, credit cards, electronically stored documents or files, physical files, and
any other Company property in the Employee’s possession.

 

3.
Supplemental Release. Employee covenants and agrees that following the conclusion of Employee’s ongoing obligations under
Section 1 of
this Agreement, Employee shall execute the Supplemental Release that is attached to this Agreement as Exhibit A, on the Separation Date.

 

4.
Employee Representations. The Employee specifically represents,
warrants, and confirms that the Employee:

 

(a)
has not filed any claims, complaints, or actions of any kind against the Company with any federal, state, or local court or government
or administrative agency.

 

(b)
has been properly paid for all hours worked for the Company.

 

(c)
has received all wages, salary, commissions, bonuses, and other compensation due to the Employee, including the Employee’s paycheck
for salary through and including the date of this Agreement.

 

    	 

     

    

 

(d)
has not engaged in and is not aware of any unlawful conduct relating to the business of the Company.

 

If
any of these statements is not true, the Employee cannot sign this Agreement and must notify the Company immediately in writing of the
statements that are not true. This notice will not automatically disqualify the Employee from receiving the benefits offered in this
Agreement but will require the Company’s further review and consideration.

 

5.
Consideration. As consideration for the Employee’s
execution of, non-revocation of, and compliance with this Agreement, including the Employee’s waiver and release of claims in Section
6 and other post-termination obligations, the Company agrees to provide the following benefits to which the Employee is not otherwise
entitled:

 

(a)
Accelerated Vesting of Restricted Shares. The Company agrees to provide Employee accelerated vesting of certain shares under the
Restricted Stock Award Agreement, as follows:

 

Pursuant
to the Restricted Stock Award Agreement, as modified by this Agreement, the remaining outstanding one-third (1/3) or 50,737 of the total
number of the Restricted Shares (152,215 Restricted Shares) granted to Employee shall vest, and the Period of Restriction with respect
to such Restricted Shares will lapse, as of the Separation Date, on the condition that the Company’s Form 10-Q has been timely
filed with the SEC on or before August 16, 2021.

 

(b)
Health Insurance Continuation. Provided Employee timely elects continued coverage under COBRA following the Separation Date and
remains eligible for such COBRA coverage under the applicable terms of the Company’s health insurance program for active employees,
including major medical, dental, and vision, but excluding any self-funded group health plans (“Policy”), Company agrees
to pay the cost of coverage under the Policy in effect with respect to Employee and Employee’s dependents on the Separation Date
by paying the applicable COBRA premiums for the period from the Separation Date to (i) December 31, 2021; or (ii) the date that Employee
ceases to be covered under COBRA under the terms of the Policy, whichever occurs first (the “Benefits Continuation Period”),
but only to the extent that the premium for such COBRA coverage does not otherwise qualify for the COBRA premium subsidy as determined
under the America Rescue Plan Act of 2021. After the end of the Benefits Continuation Period,
COBRA coverage will be made available to Employee, if applicable, at Employee’s sole expense (i.e., Employee will be responsible
for the full COBRA premium), for the remaining months of COBRA coverage made available pursuant to applicable law and the terms of the
Policy. This benefits provided under this paragraph do not expand or extend the maximum period of COBRA coverage to which Employee would
otherwise be entitled under applicable law. The foregoing notwithstanding, the benefits provided under this paragraph shall cease if
Employee becomes employed during the Benefits Continuation Period by an employer which offers group medical insurance coverage to its
employees when Employee becomes eligible for such coverage. Employee shall promptly notify the Company as to whether and when such group
health insurance benefits are available.

 

    	 

     

    

 

(c)
Employee Forfeiture. Should the Employee violate the terms of this Agreement prior to the Separation Date, the Employee forfeits
any claim to the unvested Restricted Shares. In addition, the right to any accelerated vesting of the Restricted Shares as described
in this Agreement is expressly conditioned upon entering into the Agreement. The Employee shall forfeit any right to accelerated vesting
in the event the Agreement is rescinded in accordance with Section 6(b)(vii) below.

 

(d)
Employee Acknowledgment. The Employee understands, acknowledges, and agrees that the benefits set forth in this Section 5
exceed what the Employee is otherwise entitled to receive on separation from employment, and that these benefits are being given as consideration
in exchange for executing this Agreement, including the general release and protective covenants contained in it. The Employee further
acknowledges that the Employee is not entitled to any additional payment or consideration not specifically referenced in this Agreement.
Nothing in this Agreement shall be deemed or construed as an express or implied policy or practice of the Company to provide these or
other benefits to any individuals other than the Employee. Employee specifically acknowledges and agrees that (i) the Company has made
no representations to Employee regarding the tax consequences of any amounts received by Employee or for Employee’s benefit pursuant
to this Agreement, and (ii) Employee has not relied on any representation or lack of representation by the Company. Employee remains
wholly responsible for the tax consequences regarding the amounts to be received.

 

6.
Release and Waiver of Claims.

 

(a)
Employee’s General Release and Waiver of Claims. In exchange for the consideration provided in this Agreement within sixty
(60) days following the Separation Date, the Employee and the Employee’s heirs, executors, representatives, administrators, agents,
insurers, and assigns (collectively, the “Releasors”) irrevocably and unconditionally fully and forever waive, release,
and discharge the Company, including the Company’s parents, subsidiaries, affiliates, predecessors, successors, and assigns, and
each of its and their respective officers, directors, employees, shareholders, trustees, and partners, in their corporate and individual
capacities (collectively, the “Released Parties”), from any and all claims, demands, actions, causes of actions, judgments,
rights, fees, damages, debts, obligations, liabilities, and expenses (inclusive of attorneys’ fees) of any kind whatsoever, whether
known or unknown (collectively, “Released Claims”), that the Releasors may have or have ever had against the Released
Parties, or any of them, by reason of any actual or alleged act, omission, transaction, practice, conduct, occurrence, or other matter
from the beginning of time up to and including the date of the Employee’s execution of this Agreement, including but not limited
to:

 

(i)
any and all claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave
Act (regarding existing but not prospective claims), the Equal Pay Act, the Employee Retirement Income Security Act (regarding unvested
benefits), the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Fair Credit Reporting Act, the Worker Adjustment and Retraining
Notification Act, the National Labor Relations Act, the Age Discrimination in Employment Act (“ADEA”), the Older Workers’
Benefits Protection Act (“OWBPA”), the Uniform Services Employment and Reemployment Rights Act, the Genetic Information
Nondiscrimination Act, the Immigration Reform and Control Act, the Texas Commission on Human Rights Act; Chapter 451 of the Texas Labor
Code; the Texas Payday Law; the Texas Health and Safety Code; the Texas Occupational Health and Safety Law; the Texas Juror Protection
Law; Chapter 431 of the Texas Government Code; Chapter 431 of the Texas Government Code; the Texas Hazard Communication Act, all including
any amendments and their respective implementing regulations, and any other federal, state, local, or foreign law (statutory, regulatory,
or otherwise) that may be legally waived and released; however, the identification of specific statutes is for purposes of example only,
and the omission of any specific statute or law shall not limit the scope of this general release in any manner.

 

    	 

     

    

 

(ii)
any and all claims arising under tort, contract, and quasi-contract, including but not limited to claims of breach of an express
or implied contract, wrongful or retaliatory discharge, fraud, defamation, negligent or intentional infliction of emotional distress,
tortious interference with a contract or prospective business advantage, breach of the implied covenant of good faith and fair dealing,
promissory estoppel, detrimental reliance, invasion of privacy, false imprisonment, nonphysical injury, personal injury or sickness,
or any other harm.

 

(iii)
any and all claims for compensation of any type whatsoever, including but not limited to claims for wages, salary, bonuses, commissions,
incentive compensation, vacation, sick pay, and severance that may be legally waived and released.

 

(iv)
any and all claims for monetary or equitable relief, including but not limited to attorneys’ fees, back pay, front pay, reinstatement,
expert fees, medical fees or expenses, costs and disbursements, punitive damages, liquidated damages, and penalties.

 

(v)
indemnification rights the Employee has against the Company.

 

However,
this general release and waiver of claims excludes, and the Employee does not waive, release, or discharge: (i) any right to file an
administrative charge or complaint with, or testify, assist, or participate in an investigation, hearing, or proceeding conducted by
the Equal Employment Opportunity Commission, the Texas Workforce Commission, or other similar federal, state, or local administrative
agencies, although the Employee waives any right to monetary relief related to any filed charge or administrative complaint; (ii) claims
that cannot be waived by law, such as claims for unemployment benefit rights and workers’ compensation; (iii) any right to file
an unfair labor practice charge under the National Labor Relations Act; and (iv) any rights to vested benefits, such as pension or retirement
benefits, the rights to which are governed by the terms of the applicable plan documents and award agreements.

 

    	 

     

    

 

(b)
ADEA/OWBPA Waiver. In further consideration of the payments and benefits provided to the Employee in this Agreement within sixty
(60) days following the Separation Date, the Releasors irrevocably and unconditionally fully and forever waive, release, and discharge
the Released Parties from any and all Released Claims, whether known or unknown, from the beginning of time through the date of the Employee’s
execution of this Agreement arising under the ADEA and OWBPA. By signing this Agreement, the Employee acknowledges and confirms that:

 

(i)
the Employee has read this Agreement in its entirety and understands all of its terms.

 

(ii)
by this Agreement, the Employee has been advised in writing to consult with an attorney of the Employee’s choosing before signing
this Agreement.

 

(iii)
the Employee knowingly, freely, and voluntarily agrees to all of the terms and conditions set out in this Agreement, including, without
limitation, the waiver, release, and covenants contained in it.

 

(iv)
the Employee is signing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition
to anything of value to which the Employee is otherwise entitled.

 

(v)
the Employee was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of the Employee’s
choice, although the Employee may sign it sooner if desired; changes to this Agreement, whether material or immaterial, do not restart
the running of the 21-day period.

 

(vi)
the Employee understands that the Employee has seven (7) days after signing this Agreement to revoke the release in this paragraph by
hand-delivering or mailing a notice of revocation to the Company before the end of this seven-day period. If mailed, the revocation must
be postmarked within the seven (7) calendar day period, properly addressed to Company, and sent by certified mail, return receipt requested.
This Agreement becomes effective after the expiration of the revocation period set forth above (the “Effective Date”).

 

(vii)
the Employee understands that the release does not apply to rights and claims that may arise after the Employee signs this Agreement.

 

    	 

     

    

 

(viii)
the Employee understands, acknowledges and agrees that this Agreement shall be void, and no benefits shall be provided under this Agreement
by the Company if the release is not properly signed and returned to the Company by the Employee within sixty (60) days from the Separation
Date.

 

7.
Post-Termination Obligations and Protective Covenants. The
Employee stipulates and agrees to the following:

 

(a)
Acknowledgment. The Employee understands and acknowledges that by virtue of the Employee’s employment with the Company,
the Employee had access to and knowledge of Confidential Information (defined below), was in a position of trust and confidence with
the Company, and benefitted from the Company’s goodwill. The Employee understands and acknowledges that the Company invested significant
time and expense in developing the Confidential Information and goodwill.

 

The
Employee further understands and acknowledges that the protective covenants below are necessary to protect the Company’s legitimate
business interests in its Confidential Information and goodwill. The Employee further understands and acknowledges that the Company’s
ability to reserve these for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to
the Company and that the Company would be irreparably harmed if the Employee violates the protective covenants below.

 

(b)
Confidential Information. The Employee understands and acknowledges that during the course of employment with the Company, the
Employee has had access to and learned about confidential, secret, and proprietary documents, materials, and other information, in tangible
and intangible form, of and relating to the Company and its businesses and existing and prospective customers, suppliers, investors,
and other associated third parties (“Confidential Information”). The Employee further understands and acknowledges
that this Confidential Information and the Company’s ability to reserve it for the exclusive knowledge and use of the Company is
of great competitive importance and commercial value to the Company, and that improper use or disclosure of the Confidential Information
by the Employee may cause the Company to incur financial costs, loss of business advantage, liability under confidentiality agreements
with third parties, civil damages, and criminal penalties.

 

For
purposes of this Agreement, Confidential Information includes, but is not limited to, all information not generally known to the public,
in spoken, printed, electronic, or any other form or medium, relating directly or indirectly to: business processes, practices, methods,
policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements,
transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software,
applications, operating systems, software design, web design, work-in-process, databases, device configurations, embedded data, compilations,
metadata, algorithms, technologies, manuals, records, articles, systems, material, sources of material, supplier information, vendor
information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising
information, pricing information, credit information, design information, payroll information, staffing information, personnel information,
employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches,
market studies, sales information, revenue, costs, formulae, notes, communications, product plans, designs, styles, models, ideas, audiovisual
programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental
results, specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists,
distributor lists, and buyer lists of the Company or its businesses or any existing or prospective customer, supplier, investor, or other
associated third party, or of any other person or entity that has entrusted information to the Company in confidence.

 

    	 

     

    

 

The
Employee understands that the above list is not exhaustive, and that Confidential Information also includes other information that is
marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable person to be
confidential or proprietary in the context and circumstances in which the information is known or used.

 

The
Employee understands and agrees that Confidential Information developed by the Employee in the course of the Employee’s employment
by the Company is subject to the terms and conditions of this Agreement as if the Company furnished the same Confidential Information
to the Employee in the first instance. Confidential Information shall not include information that is generally available to and known
by the public at the time of disclosure to the Employee, provided that the disclosure is through no direct or indirect fault of the Employee
or person acting on the Employee’s behalf.

 

(c)
Disclosure and Use Restrictions. The Employee agrees and covenants:

 

(i)
to treat all Confidential Information as strictly confidential.

 

(ii)
not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed,
published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company)
not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and,
in any event, not to anyone outside of the direct employ of the Company except with the prior consent of an authorized officer acting
on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such consent).

 

(iii)
not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing
any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of
the Company, except as allowed by applicable law or with the prior consent of an authorized officer acting on behalf of the Company (and
then, such disclosure shall be made only within the limits and to the extent of such law or consent).

 

    	 

     

    

 

(iv)
that the Employee’s obligations under this Agreement regarding any particular Confidential Information begin immediately and
shall continue after the Employee’s employment by the Company until the Confidential Information has become public knowledge other
than as a result of the Employee’s breach of this Agreement or a breach by those acting in concert with the Employee or on the
Employee’s behalf.

 

(d)
Permitted Disclosures. Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information as may be
required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government
agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Employee
shall promptly provide written notice of any such order to an authorized officer of the Company.

 

Nothing
in this Agreement prohibits or restricts the Employee (or the Employee’s attorney) from initiating communications directly with,
responding to an inquiry from, or providing testimony before the SEC, the Financial Industry Regulatory Authority, any other self-regulatory
organization, or any other federal or state regulatory authority regarding this Agreement or its underlying facts or circumstances or
a possible securities law violation.

 

(e)
Notice of Immunity Under the Defend Trade Secrets Act of 2016. Notwithstanding any other provision of this Agreement, an individual
shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that
is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating
a suspected violation of law. an individual shall not be held criminally or civilly liable under any federal or state trade secret law
for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing
is made under seal. an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose
the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files
any document containing the trade secret under seal; and, does not disclose the trade secret, except pursuant to court order. nothing
in this agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are
expressly allowed by 18 U.S.C. § 1833(b).

 

8.
Non-Disparagement. The Employee agrees and covenants that the
Employee shall not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory, maliciously
false, or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, officers, or
directors, and its existing and prospective customers, suppliers, investors, and other associated third parties, now or in the future.
To the extent this Agreement limits Employee’s waivable right to free speech, right to petition, or right of association, Employee
expressly waives certain rights that Employee may otherwise have under the First Amendment of the United States Constitution and rights
afforded by and state constitution—including, but not limited to, any remedies available under Tex.
Civ. Prac. & Rem. Code Ann. §§ 27.001, et seq.

 

    	 

     

    

 

9.
Remedies. In the event of a breach or threatened breach by
the Employee of Section 7 or 8 of this Agreement, the Employee hereby consents and agrees that money damages would not afford
an adequate remedy and that the Company shall be entitled to seek a temporary or permanent injunction or other equitable relief against
such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages, and without
the necessity of posting any bond or other security. Any equitable relief shall be in addition to, not in lieu of, legal remedies, monetary
damages, or other available relief.

 

If
the Employee fails to comply with any of the terms of this Agreement or post-employment obligations contained in it, the Company may,
in addition to any other available remedies, reclaim any amounts paid to the Employee under the provisions of this Agreement and terminate
any benefits or payments that are later due under this Agreement, without waiving the releases provided in it.

 

The
Parties mutually agree that this Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging
breach of the Agreement.

 

10.
Successors and Assigns. The Company may freely assign this
Agreement at any time. This Agreement shall inure to the benefit of the Company and its successors and assigns. The Employee may not
assign this Agreement in whole or in part. Any purported assignment by the Employee shall be null and void from the initial date of the
purported assignment.

 

11.
Arbitration. The Parties agree that any dispute, controversy,
or claim arising out of or related to Employee’s employment with Company or termination of employment, this Agreement, or any alleged
breach of this Agreement, shall be governed by the Federal Arbitration Act and submitted to and decided by binding arbitration in Dallas,
Texas before a single arbitrator. Arbitration shall be administered by the American Arbitration Association (“AAA”)
in accordance with its Employment Arbitration Rules and Mediation Procedures, which can be found here: https://adr.org/sites/default/files/EmploymentRules_Web_2.pdf.
The Company will pay the arbitrator’s fees and arbitration expenses and any other costs unique to the arbitration hearing. Discovery
in any arbitration proceeding shall be conducted according to AAA’s Employment Arbitration Rules and Mediation Procedures.

 

Any
arbitral award determination shall be final and binding on the Parties and may be entered as a judgment in a court of competent jurisdiction.
Nothing in this Agreement shall prevent either the Employee or the Company from obtaining injunctive relief in court to prevent irreparable
harm pending the conclusion of any such arbitration. This agreement to arbitrate is freely negotiated between the Employee and the Company
and is mutually entered into between the parties. By entering into this Agreement, the Parties are waiving all rights to have their disputes
heard or decided by a jury or in a court trial.

 

12.
Governing Law, Jurisdiction, and Venue. This
Agreement and all matters arising out of or relating to this Agreement and Employee’s employment or termination of employment with
Company, whether sounding in contract, tort, or statute, for all purposes shall be governed by and construed in accordance with the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”) to the extent applicable, and otherwise the laws of Texas without
regard to any conflicts of laws principles that would require the laws of any other jurisdiction to apply, including, but not limited,
to the fashioning of any federal common law that might apply under ERISA. Any action or proceeding by either of the Parties not covered
by Section 11, above, shall be brought in any state or federal court located in the State of Texas, County of Dallas. The Parties
irrevocably submit to the exclusive jurisdiction of these courts for such matters and waive the defense of inconvenient forum to the
maintenance of any action or proceeding in such venue.

 

    	 

     

    

 

13.
Entire Agreement. This Agreement constitutes the entire understanding
between the Parties on the subject matter contained herein and supersedes all negotiations, representations, prior discussions and preliminary
agreements between the Parties with respect to the subject matter herein. This Agreement does not supersede any agreements, including,
but not limited to, the Restricted Stock Award Agreement (except as otherwise provided in Section 5(a) of this Agreement) or any
protective covenants that were in effect immediately prior to the date of this Agreement and which, by their terms, survive the termination
of Employee’s employment. For the avoidance of doubt, nothing herein shall supersede nor replace Paragraph 6 or Paragraph 7 of
the Employment Agreement, which remain ongoing for the duration defined therein.

 

14.
Modification and Waiver. No provision of this
Agreement may be amended or modified unless the amendment or modification is agreed to in writing and signed by the Employee the Company.
No waiver by either Party of any breach by the other Party of any condition or provision of this Agreement to be performed by the other
Party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall
the failure of or delay by either Party in exercising any right, power, or privilege under this Agreement operate as a waiver to preclude
any other or further exercise thereof or the exercise of any other such right, power, or privilege.

 

15.
Severability. If any provision of this Agreement
is found by a court or arbitral authority of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, or enforceable
only if modified, such finding shall not affect the validity of the remainder of this Agreement, which shall remain in full force and
effect and continue to be binding on the Parties.

 

The
Parties further agree that any such court or arbitral authority is expressly authorized to modify any such invalid, illegal, or unenforceable
provision of this Agreement instead of severing the provision from this Agreement in its entirety, whether by rewriting, deleting, or
adding to the offending provision, or by making such other modifications as it deems necessary to carry out the intent and agreement
of the Parties as embodied in this Agreement to the maximum extent permitted by law. Any such modification shall become a part of and
treated as though originally set forth in this Agreement. If such provision or provisions are not modified, this Agreement shall be construed
as if such invalid, illegal, or unenforceable provisions had not been set forth in it. The Parties expressly agree that this Agreement
as so modified by the court or arbitral authority shall be binding on and enforceable against each of them.

 

16.
Interpretation. Captions and headings of the
sections and paragraphs of this Agreement are intended solely for convenience, and no provision of this Agreement is to be construed
by reference to the caption or heading of any section or paragraph. This Agreement shall not be construed against either Party as the
author or drafter of the Agreement.

 

    	 

     

    

 

17.
Counterparts. The Parties may execute this Agreement
in counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument.
Delivery of an executed counterpart’s signature page of this Agreement, by facsimile, email in portable document format (.pdf),
or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, has the same effect
as delivery of an executed original of this Agreement.

 

18.
No Admission of Liability. Nothing in this Agreement shall
be construed as an admission by the Company of any wrongdoing, liability, or noncompliance with any federal, state, city, or local rule,
ordinance, statute, common law, or other legal obligation. The Company specifically disclaims and denies any wrongdoing or liability
to the Employee.

 

19.
Tolling. If the Employee violates any of the
post-termination obligations in this Agreement, the obligation at issue will run from the first date on which the Employee ceases to
be in violation of such obligation.

 

20.
Attorneys’ Fees and Costs. If the Employee
breaches any terms of this Agreement or the post-termination obligations referenced in it, to the extent authorized by Texas law, the
Employee will be responsible for payment of all reasonable attorneys’ fees and costs that Company incurred in the course of enforcing
the terms of this Agreement, including demonstrating the existence of a breach and any other contract enforcement efforts.

 

21.
Notice of Post-Termination Obligations. When
the Employee’s employment with the Company terminates, the Employee agrees to notify any subsequent employer of the protective
covenants referenced in this Agreement. In addition, the Employee authorizes the Company to provide a copy of the protective covenants
referenced in this Agreement to third parties, including but not limited to, the Employee’s subsequent, anticipated, or possible
future employer.

 

22.
Acknowledgment of Full Understanding. THE EMPLOYEE
ACKNOWLEDGES AND AGREES THAT HE HAS READ, UNDERSTANDS, AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES
THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. THE EMPLOYEE
FURTHER ACKNOWLEDGES THAT HIS SIGNATURE BELOW IS AN AGREEMENT TO RELEASE THE COMPANY FROM ANY AND ALL CLAIMS THAT CAN BE RELEASED AS
A MATTER OF LAW.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the dates noted below.

 

	Shanoop
    Kothari	 	NuZee,
    Inc.
	 	 	 	 	 
	By:	/s/
    Shanoop Kothari	 	By:	/s/
    Masateru Higashida
	 	 	 	 	 
	Name:	Shanoop
    Kothari	 	Name:	Masateru
    Higashida
	 	 	 	 	 
	Date:	July
    2, 2021	 	Title:	Chief
    Executive Officer
	 	 	 	 	 
	 	 	 	Date:	July
    2, 2021

 

    	 

     

    

 

Exhibit
A

 

(to
be executed on the Separation Date)

 

SUPPLEMENTAL
RELEASE

 

Pursuant
to the Severance Agreement and General Release (the “Agreement”) previously executed by Shanoop Kothari (“Kothari”),
and for and in consideration of receipt of the Accelerated Vesting of Restricted Shares (the “Resignation Benefit”) contemplated
in the Agreement, Kothari hereby executes this Supplemental Release on ___________________, 2021 (the “Effective Date) and agrees
as follows:

 

	 	(1)	Kothari
    expressly and unconditionally, on behalf of himself, and his heirs, assigns, attorneys, successors, representatives, and other agents
    (collectively referred to as the “Releasing Parties”), fully and completely releases, acquits, and forever discharges
    and holds harmless NuZee, Inc. (the “Company”) and all of its parent, subsidiary, affiliated, predecessor or successor
    companies, and each of their respective current and former owners, shareholders, partners, agents, employees, insurers, reinsurers,
    attorneys, successors, assigns, and other representatives (each a “Released Party,” and “collectively referred
    to as the “Released Parties”), of and from any and all claims, demands, actions, causes of action, suits, debts, contracts,
    agreements, promises, liabilities, compensation, bonuses, losses, costs, expenses and damages of any kind or character whatsoever,
    including any claims arising out of Kothari’s own negligence (collectively “Claims”), accrued or unaccrued, known
    or unknown, foreseen or unforeseen, in law or in equity, whether based on contract, tort, common law, or federal, state, or local
    statute, regulation, ordinance or executive order, arising directly or indirectly from his employment with any of the Released Parties,
    or relating to any matter or thing which has occurred or has failed to occur as of the Effective Date of this Supplemental Release.
    This release includes, but is not limited to: (i) all Claims for salary, wages, bonuses, commissions, accrued vacation benefits/paid
    time off, leave, reimbursable expenses, outplacement costs, fees, back pay, front pay, retirement or pension contributions, reinstatement
    or other equitable relief, damages, interest, retaliation, mental anguish, liquidated damages, intentional torts, defamation, punitive
    damages, attorneys’ fees, interest, costs or other expenses, and any and all other claims resulting thereby; (ii) any actions,
    inaction, representations, omissions, or commissions by the Released Parties before the Effective Date of this Supplemental Release;
    and (iii) any claim that acceptance of this Supplemental Release was induced by any fraudulent or negligent act or omission or results
    in or from any actual or constructive fraud, negligent misrepresentation, breach of fiduciary duty, breach of confidential relationship,
    or a breach of any other duty under law or in equity. Except to the extent as may be specifically provided in this Supplemental Release,
    this release is intended to be a general release of all claims, so, to the extent Kothari may be deemed to still possess any viable
    claims or causes of action against the Released Parties, Kothari hereby assigns to the Released Parties all Claims Kothari may have
    of any kind against the Released Parties, provided, however, that:
	 	 	 	 
	 	 	(a)	this
    release does not waive or release: (i) claims that cannot be released or waived as a matter of applicable federal, state or local
    law; (ii) vested benefits under the Released Parties’ retirement plans; (iii) events occurring after the date Kothari executes
    this Supplemental Release; or (iv) enforcing the terms of this Agreement; and

 

    	 

     

    

 

	 	 	(b)	nothing
    in this Agreement, prohibits Kothari from reporting possible violations of law or regulation to or filing charges with any governmental
    agency or entity, including without limitation the United States Department of Justice, the Securities and Exchange Commission, the
    Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Commission, any Inspector
    General, or any similar state or local agency, or from making other disclosures that are protected under the whistleblower provisions
    of federal, state or local law or regulation. Kothari does not need the prior authorization of the Released Parties to make any such
    reports or disclosures and Kothari is not required to notify the Released Parties that he has made such reports or disclosures. However,
    by signing this Supplemental Release, except as otherwise prohibited by law, Kothari waives the right to any monetary recovery in
    connection with a local, state or federal governmental agency proceeding or investigation, even where the law may provide for Kothari
    to obtain a portion of any monetary recovery, and Kothari waives the right to file a claim seeking monetary damages in any court,
    administrative agency or arbitral tribunal;

 

	 	(2)	Kothari
    hereby certifies that he has returned to the Company the originals and all copies of all records, data, documents, notebooks, specifications,
    drawings, blueprints, equipment, notes, reports, business plans, customer lists, customer information, pricing information, marketing
    materials and information, credit cards, proprietary information, or other property of the Released Parties and has not retained
    copies of any such property; and
	 	 	 
	 	(3)	Kothari
    hereby certifies, acknowledges, and represents that he has been paid or provided all salary, wages, bonuses, commissions, accrued
    vacation benefits/paid time off, leave, reimbursable expenses, outplacement costs, fees, interest, and any and all other benefits
    and compensation due to him.

 

	Dated:
    ________________, 2021	 	 
	 	 	Shanoop
    KothariExhibit
10.3 

 

NUZEE,
INC.

STOCK
OPTION AGREEMENT

(2019
Stock Incentive Plan)

 

Nonqualified
Stock Options

 

This
Stock Option Agreement (the “Agreement”) is entered into as of [_____________], 20[__], by and between NuZee, Inc., a Nevada
corporation (“the Company”), and [__________] (“Optionee”) pursuant to the Company’s 2019 Stock Incentive
Plan (the “Plan”). Any capitalized term not defined in this Agreement shall have the same meaning ascribed to it in the Plan.

 

1.
Grant of Option. The Company hereby grants to Optionee an option (the “Option”) to purchase all or any portion of a total
of [__________] shares of the Common Stock of the Company (the “Shares”) at a purchase price of $[___] per share (the
“Exercise Price”), subject to the terms and conditions set forth herein and the provisions of the Plan. This Option is not
intended to qualify as an “incentive stock option” as defined in Section 422 of the Code but shall constitute a nonqualified
stock option.

 

2.
Vesting of Option. No portion of this Option may be exercised until such portion shall have become exercisable. The grant date of
the Option is [__________], 20[___] (the “Grant Date”). The right to exercise this Option shall vest pursuant to the vesting
terms set forth in this Section 2. The Option will become vested and exercisable with respect to:

 

(a)
[_____] Shares upon the Company’s achievement of [__________]; 

 

(b)
[_____] Shares upon the Company’s achievement of [__________]; and

 

(c)
[_____] Shares upon the Company’s achievement of [__________].

 

The
Committee shall, on an annual basis and in its sole discretion: (i) determine whether the applicable vesting terms set forth herein were
satisfied and (ii) approve the actual amount of Shares that vested in the applicable fiscal year, in each case as promptly as practicable
following the Company’s public filing of its audited financial statements for the applicable fiscal year. In the event that any
applicable performance target is not satisfied in a respective fiscal year, the Shares that would have vested in the applicable fiscal
year shall be forfeited, regardless of whether any performance targets are satisfied in any subsequent fiscal year.

 

No
additional Shares shall vest after the date on which Optionee’s relationship as a Service Provider terminates, but this Option
shall continue to be exercisable in accordance with Section 3 below with respect to that number of Shares that have vested as of the
date on which Optionee’s relationship as a Service Provider terminates.

 

3.
Term of Option. Optionee’s right to exercise this Option shall terminate upon the first to occur of the following:

 

		a.	the
                                            expiration of ten (10) years from the date of this Agreement;

 

    	 

     

    

 

		b.	the
                                            expiration of three (3) months from the date of termination of Optionee’s relationship
                                            as a Service Provider if such termination occurs for any reason other than permanent Disability,
                                            death or for Cause; provided, however, that if Optionee dies during such three-month period
                                            the provisions of Section 3(d) below shall apply;
	 	 	 
		c.	the
                                            expiration of twelve (12) months from the date of termination of Optionee’s relationship
                                            as a Service Provider if such termination is due to permanent Disability of Optionee;
	 	 	 
		d.	the
                                            expiration of twelve (12) months from the date of termination of Optionee’s relationship
                                            as a Service Provider if such termination is due to Optionee’s death or if death occurs
                                            during the three month period following termination of Optionee’s relationship as a
                                            Service Provider pursuant to Section 3(b) above, as the case may be;
	 	 	 
		e.	upon
                                            the consummation of a Change in Control, unless otherwise provided pursuant to Section 8
                                            below; or
	 	 	 
		f.	Optionee’s
                                            relationship as a Service Provider is terminated for Cause;

 

4.
Exercise of Option. On or after the vesting of any portion of this Option in accordance with Sections 2 or 8 hereof, and until termination
of the right to exercise this Option in accordance with Section 3 above, the portion of this Option which has vested may be exercised
in whole or in part by Optionee (or, after his or her death, by the person designated in Section 5 below) upon delivery of the following
to the Company at its principal executive offices:

 

		a.	A
                                            written notice of exercise which identifies this Agreement and states the number of Shares
                                            then being purchased (but no fractional Shares may be purchased);
	 	 	 
		b.	A
                                            payment of the exercise price for Shares the Optionee is purchasing, to the extent permitted
                                            by law, in one of the following forms:

 

		i.	A
                                            check or cash;
	 	 	 
		ii.	By
                                            a “net exercise” arrangement pursuant to which the Company will reduce the number
                                            of Shares issued upon exercise of the Option by the largest whole number of Shares with a
                                            Fair Market Value that does not exceed the aggregate exercise price. The Optionee must pay
                                            any remaining balance of the aggregate exercise price not satisfied by the “net exercise”
                                            in cash or other permitted form of payment;
	 	 	 
		iii.	By
                                            delivery to the Company (either by actual delivery or attestation) of previously owned Shares
                                            that are owned free and clear of any liens, claims,
                                            encumbrances or security interests. The Fair Market Value of the Shares will be determined
                                            as of the effective date of the option exercise. The Option may not be exercised by
                                            delivery to the Company of previously owned Shares if doing so would violate the provisions
                                            of any law, regulation or agreement restricting the redemption of the Company’s Share;
                                            or
	 	 	 
		iv.	A
                                            combination of (i), (ii) or (iii) above.

 

    	 

     

    

 

		c.	Payment
                                            of the amount reasonably requested by the Company to satisfy the Company’s withholding
                                            obligations under federal, state or other applicable tax laws with respect to the taxable
                                            income, if any, recognized by Optionee in connection with the exercise of this Option. The
                                            Optionee may arrange to pay any withholding taxes that may be due as a result of the Option
                                            exercise pursuant to the following methods, in accordance with the terms of the Plan: (i)
                                            by payment by cash or check, (ii) by the withholding of Shares issuable upon exercise of
                                            this Option with a Fair Market Value no greater than the minimum amount required to be withheld
                                            by law, or (iii) by the delivery of Shares previously owned by the Optionee with a Fair Market
                                            Value no greater than the minimum amount required to be withheld by law. The Fair Market
                                            Value of withheld or surrendered Shares, determined as of the date when taxes otherwise would
                                            have been withheld in cash, will be applied to the withholding taxes; and
	 	 	 
		d.	Any
                                            agreement, statement or other evidence that the Company may require to satisfy itself that
                                            the issuance of Shares upon exercise of the Option (and any subsequent resale of the Shares)
                                            will be in compliance with applicable laws and regulations.

 

The
Shares issued upon exercise of the Option shall be transferred to Optionee on the records of the Company or of the transfer agent upon
compliance to the satisfaction of the Committee with all requirements under applicable laws or regulations in connection with such transfer
and with the requirements of this Agreement and the Plan. The determination of the Committee as to such compliance shall be final and
binding on Optionee.

 

5.
Death of Optionee; No Assignment. The rights of Optionee under this Agreement may not be assigned or transferred except by will or
by the laws of descent and distribution, and may be exercised during the lifetime of Optionee only by such Optionee. Any attempt to sell,
pledge, assign, hypothecate, transfer or dispose of this Option in contravention of this Agreement or the Plan shall be void and shall
have no effect. If Optionee’s relationship as a Service Provider terminates as a result of his or her death, and provided Optionee’s
rights hereunder shall have vested pursuant to Section 2 above, Optionee’s legal representative, his or her legatee, or the person
who acquired the right to exercise this Option by reason of the death of Optionee (individually, a “Successor”) shall succeed
to Optionee’s rights and obligations under this Agreement. After the death of Optionee, only a Successor may exercise this Option.

 

6.
Incorporation of Plan. Notwithstanding anything herein to the contrary, the Option shall be subject to and governed by all the terms
and conditions of the Plan, including the powers of the Committee. Optionee acknowledges receipt of a copy of the Plan.

 

7.
Adjustments Upon Changes in Capital Structure. In the event that the outstanding Shares are hereafter increased or decreased or changed
into or exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization, stock
split, combination of shares, reclassification, stock dividend or other change in the capital structure of the Company, then appropriate
adjustment shall be made by the Committee to the number of Shares subject to the unexercised portion of this Option and to the Exercise
Price per share, in order to preserve, as nearly as practical, but not to increase, the benefits of Optionee under this Option, in accordance
with the provisions of the Plan.

 

    	 

     

    

 

8.
Change in Control. In the event of a merger, consolidation or similar transaction directly or indirectly involving the Company that
results in a Change in Control of the Company:

 

		a.	Notwithstanding
                                            Section 2 above, provided Optionee has not ceased to be a Service Provider from the Grant
                                            Date through the effective date of the Change in Control, the right to exercise this Option
                                            shall accelerate automatically and vest in full effective as of immediately prior to the
                                            consummation of such a Change in Control unless this Option is to be assumed by the
                                            acquiring or successor entity (or parent thereof) or new options or new incentives are to
                                            be issued in exchange therefor, as provided in subsection (b) below. If vesting of this Option
                                            will accelerate, the Committee in its discretion may provide, in connection with the Change
                                            in Control transaction, for the purchase or exchange of this Option for an amount of cash
                                            or other property having a value equal to the difference between: (x) the value of the cash
                                            or other property that Optionee would have received pursuant to the Change in Control transaction
                                            in exchange for the Shares issuable upon exercise of this Option had this Option been exercised
                                            immediately prior to the Change in Control, and (y) the aggregate Exercise Price for such
                                            Shares. If the vesting of this Option will accelerate, the Committee shall cause written
                                            notice of the Change in Control transaction to be given to Optionee not less than fifteen
                                            (15) days prior to the anticipated effective date of the proposed transaction.
	 	 	 
		b.	The
                                            vesting of this Option shall not accelerate if and to the extent that:

 

		i.	this
                                            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.	this
                                            Option (including the unvested portion thereof) is to be replaced by the acquiring or successor
                                            entity (or parent thereof) with new incentives containing such terms and provisions as the
                                            Committee in its discretion may consider equitable. If this Option is assumed, or if a new
                                            option of comparable value is issued in exchange therefor, then this 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 Optionee would have received pursuant
                                            to the Change in Control transaction in exchange for the Shares issuable upon exercise of
                                            this Option had this Option been exercised immediately prior to the Change in Control, and
                                            appropriate adjustment also shall be made to the Exercise Price such that the aggregate Exercise
                                            Price of this Option or the new option shall remain the same as nearly as practicable and
                                            in a manner satisfying the provisions of Sections 409A and 424 of the Code.

 

		c.	If
                                            the provisions of subsection (b) above apply, then this Option, the new option or the new
                                            incentives shall continue to vest in accordance with the provisions of Section 2 above and
                                            shall continue in effect for the remainder of the term of this Option in accordance with
                                            the provisions of Section 3 above. However, in the event of an Involuntary Termination (as
                                            defined below) of Optionee’s relationship as an Employee on or 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.

 

    	 

     

    

 

		d.	As
                                            defined and used for purposes of this Agreement, the following terms shall have the meanings
                                            set forth below:

 

		i.	“Involuntary
                                            Termination” shall mean the termination of Optionee’s relationship as an Employee
                                            for any reason other than (i) termination for Cause or (ii) the Optionee’s voluntary
                                            resignation (unless such resignation is at the request of the acquirer in which case the
                                            Optionee’s termination will deemed involuntary).
	 	 	 
		ii.	A
                                            “Change in Control” of the Company (A) shall be as defined in Section 13.6(a)
                                            or 13.6(c) of the Plan, and (B) shall not have the meaning given under Section 13.6(b) of
                                            the Plan.

 

9.
No Agreement to Employ. Nothing in this Agreement shall be construed as granting to Optionee any right with respect to the continuance
of any relationship that Optionee might have as a Director, Consultant or Employee. To the extent applicable, the right of the Company
to terminate at will Optionee’s employment or service relationship at any time (whether by dismissal, discharge or otherwise),
with or without Cause, is specifically reserved.

 

10.
Rights as Stockholder. Optionee (or Successor) shall not be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any of the Shares unless and until this Option shall have been exercised pursuant to the terms hereof, the Company or
the transfer agent shall have transferred the shares to Optionee, and Optionee’s name shall have been entered as the stockholder
of record on the books of the Company. Thereupon, Optionee shall have full voting, dividend and other ownership rights with respect to
such Shares for which the Option has been exercised.

 

11.
Market Stand-Off Agreement. If requested by the Company or the managing underwriter pursuant to any proposed public offering of the
Company’s securities, Optionee hereby agrees that it shall not, directly or indirectly, sell, lend, pledge, offer, transfer, make
any short sale of, sell any option or contract to purchase, contract to sell, purchase any option or contract to sell, grant any option,
right or warrant for the purchase of, otherwise transfer or dispose of, or enter into any hedging or similar transaction with the same
economic effect as a sale, any Shares held by Optionee immediately prior to the effectiveness of the registration statement for such
public offering for a period specified by the Company or the managing underwriter for such offering, which period shall not exceed one
hundred eighty (180) days following the effective date of the public offering. Optionee further agrees to execute such agreements as
may be reasonably requested by the Company or the managing underwriter for such offering that are consistent with this Section 11 or
that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop transfer instructions
with respect to the Shares until the end of such period.

 

12.
Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed
given when delivered personally or three (3) days after being deposited in the United States mail, as certified or registered mail, with
postage prepaid, (or by such other method as the Committee may from time to time deem appropriate), and addressed, if to the Company,
at its principal place of business, Attention: General Counsel, and if to Optionee, at his or her most recent address as shown in the
employment or stock records of the Company.

 

13.
Governing law. The validity, construction, interpretation, and effect of this Agreement shall be governed by and determined in accordance
with the laws of the State of Nevada.

 

    	 

    	 

    

 

14.
Severability. Should any provision or portion of this Agreement be held to be unenforceable or invalid for any reason, the remaining
provisions and portions of this Agreement shall be unaffected by such holding.

 

15.
Captions and Section Headings. Captions and section headings used herein are for convenience only, and are not part of this Agreement
and shall not be used in construing it.

 

16.
Entire Agreement. This Agreement and the Plan constitute the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior or contemporaneous written or oral agreements and understandings of the parties, either express or implied.

 

17.
Attorneys’ Fees. If any party shall bring an action in law or equity against another to enforce or interpret any of the terms,
covenants and provisions of this Agreement, the prevailing party in such action shall be entitled to recover reasonable attorneys’
fees and costs.

 

18.
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which
together shall be deemed one instrument.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	 

     

    

 

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

 

	NUZEE, INC. 	 	OPTIONEE 
	 	 	 	 	 
	By:
    	 	 	By:
    	 
	Name: 	                	 	Name:      	                      
	Title:	 	 	 	 

 

[Signature
Page to Stock Option Agreement]

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