Document:

Exhibit
4.5

 

THIS
NOTE AND THE UNDERLYING SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) SHALL HAVE BECOME EFFECTIVE WITH RESPECT
THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION
UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES
LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE FOR THIS NOTE.

 

DIGIPATH,
INC.

 

9%
Secured Subordinated Convertible Promissory Note

 

	$50,000	February
    11, 2020 (the “Issue Date”)

 

FOR
VALUE RECEIVED, DIGIPATH, INC., a Nevada corporation (the “Company”) with its principal executive office
at 6450 Cameron Blvd., Suite 113, Las Vegas, Nevada 89118, promises to pay to the order of Elizabeth Parker or its registered
assigns (the “Holder” or “Payee”), the principal amount of Fifty Thousand Dollars ($50,000)
(the “Principal Amount”), on August 11, 2022 (the “Maturity Date”) or such earlier date
as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted
and then outstanding Principal Amount of this Convertible Promissory Note (this “Note”) in accordance with
the provisions hereof.

 

Each
payment by the Company pursuant to this Note shall be made without set-off or counterclaim and in immediately available funds.
The Company (i) waives presentment, demand, protest or notice of any kind in connection with this Note and (ii) agrees to pay
to the Holder of this Note, on demand, all costs and expenses (including reasonable and documented legal fees and expenses) incurred
in connection with the enforcement and collection of this Note.

 

This
Note has been issued pursuant to a Securities Purchase Agreement (the “Securities Purchase Agreement”) entered
into between the Company and the Payee, and is secured by a Security Agreement (the “Security Agreement”) in
favor of Payee covering certain collateral (the “Collateral”), all as more particularly described and provided
therein, and is entitled to the benefits thereof. The Security Agreement and any and all other documents executed and delivered
by the Company to Payee under which Payee is granted liens on assets of the Company in connection with the transactions contemplated
by the Securities Purchase Agreement are collectively referred to as the “Security Documents.” The security
interests of Payee under the Security Agreement are subordinate to the security interests of the existing note holders of the
Company pursuant to that certain Subordination and Consent Agreement of even date herewith.

 

    	1

    	 	 	 

    

 

Unless
otherwise defined in this Note, capitalized terms used herein shall have the meanings set forth in the Note Purchase Agreement.

 

1.
Principal Repayment

 

A.
Optional Prepayment. At any time from
and after the Issue Date, the Company may prepay this Note, without premium or penalty, in whole or in part, with accrued interest
to the date of such prepayment on the amount prepaid.

 

B.
Notice of Prepayment. Before the Company
shall be permitted to prepay this Note pursuant to 1A hereof, the Company shall provide ten (10) days prior notice to the Payee
of its intent to make such prepayment, which notice shall state the date and amount of such prepayment (the “Prepayment
Date”). The Payee shall have the option at any time prior to the Prepayment Date to elect to convert this Note pursuant
to Section 5 below.

 

2.
Computation and Payment of Interest.

 

A.
Base Interest Rate. Subject to Sections
2B and 2C below, the outstanding Principal Amount shall bear interest at the rate of none (9%) percent per annum.

 

B.
Penalty Interest. Upon the occurrence
and during the continuance of an Event of Default (as defined below), the rate of interest applicable to the unpaid Principal
Amount shall be increased to fifteen (15%) percent per annum.

 

C.
Maximum Rate. In the event that it is
determined that, under the laws relating to usury applicable to the Company or the indebtedness evidenced by this Note (“Applicable
Usury Laws”), the interest charges and fees payable by the Company in connection herewith or in connection with any
other document or instrument executed and delivered in connection herewith cause the effective interest rate applicable to the
indebtedness evidenced by this Note to exceed the maximum rate allowed by law (the “Maximum Rate”), then such
interest shall be recalculated for the period in question and any excess over the Maximum Rate paid with respect to such period
shall be credited, without further agreement or notice, to the Principal Amount outstanding hereunder to reduce said balance by
such amount with the same force and effect as though the Company had specifically designated such extra sums to be so applied
to principal and the Payee had agreed to accept such extra payment(s) as a premium-free prepayment. All such deemed prepayments
shall be applied to the principal balance payable at maturity. In no event shall any agreed-to or actual exaction as consideration
for this Note exceed the limits imposed or provided by Applicable Usury Laws in the jurisdiction in which the Company is resident
applicable to the use or detention of money or to forbearance in seeking its collection in the jurisdiction in which the Company
is resident.

 

D.
Payment of Interest. Interest shall be
paid monthly on the first day of each month, beginning March 1, 2020, on the Maturity Date and each other date as the Principal
Amount of this Note is repaid in cash as provided hereunder.

 

    	2

    	 	 	 

    

 

3.
Covenants of Company.

 

A.
Affirmative Covenants. The Company covenants
and agrees that, so long as this Note shall be outstanding, unless it has otherwise obtained the prior written consent of the
Holder, it will perform the obligations set forth in this Section 2A:

 

(i)
Taxes and Levies. The Company (and each
of its subsidiaries) will promptly pay and discharge all taxes, assessments, and governmental charges or levies imposed upon the
Company or upon its income and profits, or upon any of its property, before the same shall become delinquent, as well as all claims
for labor, materials and supplies which, if unpaid, might become a lien or charge upon such properties or any part thereof; provided,
however, that the Company shall not be required to pay and discharge any such tax, assessment, charge, levy or claim so
long as the validity thereof shall be contested in good faith by appropriate proceedings and the Company shall set aside on its
books adequate reserves in accordance with generally accepted accounting principles with respect to any such tax, assessment,
charge, levy or claim so contested;

 

(ii)
Maintenance of Existence. The Company
(and each of its subsidiaries) will do or cause to be done all things reasonably necessary to preserve and keep in full force
and effect its corporate existence, rights and franchises and comply with all laws applicable to the Company, except where the
failure to comply would not have a material adverse effect on the Company;

 

(iii)
Maintenance of Property. The Company (and
each of its subsidiaries) will at all times reasonably maintain, preserve, protect and keep its property used or useful in the
conduct of its business in good repair, working order and condition (ordinary wear and tear excepted), and from time to time make
all needful and proper repairs, renewals, replacements and improvements thereto as shall be reasonably required in the conduct
of its business;

 

(iv)
Insurance. The Company (and each of its
subsidiaries) will, to the extent necessary for the operation of its business, keep adequately insured by financially sound reputable
insurers, all property of a character usually insured by similar corporations and carry such other insurance as is usually carried
by similar corporations;

 

(v)
Books and Records. The Company (and each
of its subsidiaries) will at all times keep true and correct books, records and accounts reflecting all of its business affairs
and transactions in accordance with GAAP. Such books and records shall be open at reasonable times and upon reasonable notice
to the inspection of the Payee or its agents; and

 

(vi)
Notice of Certain Events. The Company
(and each of its subsidiaries) will give prompt written notice (with a description in reasonable detail) to the Payee of the occurrence
of any Event of Default or any event which, with the giving of notice or the lapse of time, would constitute an Event of Default.

 

    	3

    	 	 	 

    

 

B.
Negative Covenants. The Company covenants
and agrees that, so long as this Note shall be outstanding, unless it has otherwise obtained the prior written consent of the
Holder, it will perform the obligations set forth in this Section 3B:

 

(i)
Liquidation, Dissolution. The Company
will not (and will not permit any of its subsidiaries to) liquidate or dissolve, consolidate with, or merge into or with, any
other corporation or other entity, except that any wholly-owned subsidiary may merge with another wholly-owned subsidiary or with
the Company (so long as the Company is the surviving corporation and no Event of Default shall occur as a result thereof); provided,
however, such prior written consent shall not be required in connection with the consummation of any merger or change of control
transaction which results in prepayment of the Note pursuant to the terms of this Note;

 

(ii)
Sales of Assets. The Company will not
(nor permit any of its subsidiaries with respect to their assets and properties), other than in the ordinary course of business,
sell, transfer, lease or otherwise dispose of, or grant options, warrants or other rights with respect to, all or a substantial
part of its properties or assets material to the Company’s business to any person or entity; provided, however, such prior
written consent shall not be required in connection with licenses or other rights granted by the Company to a strategic partner,
licensee or distributor as approved by the Board of Directors of the Company (the “Board of Directors”);

 

(iii)
Redemptions. The Company will not redeem
or repurchase any outstanding equity and/or debt securities of the Company (or its subsidiaries);

 

(iv)
Transactions with Affiliates. The Company
will not (and will not permit any of its subsidiaries to) enter into any transaction after the Issue Date, including, without
limitation, the purchase, sale, lease or exchange of property, real or personal, the purchase or sale of any security, the borrowing
or lending of any money, or the rendering of any service, with any person or entity affiliated with the Company or any of its
subsidiaries (including officers, directors and shareholders owning five (5%) percent or more of the Company’s outstanding
capital stock), except in the ordinary course of and pursuant to the reasonable requirements of its business and upon fair and
reasonable terms not less favorable than would be obtained in a comparable arms-length transaction with any other person or entity
not affiliated with the Company as determined by the Board of Directors in good faith;

 

(v)
Dividends. The Company will not declare
or pay any cash dividends or distributions on its outstanding capital stock; and

 

(vi)
Proration of Payments. The Company shall
not make or permit any payment on account of principal or interest payable hereunder or any of the other Notes in excess of each
Holder’s pro rate share of payments then due under the Notes.

 

    	4

    	 	 	 

    

 

4.
Events of Default.

 

If
any of the following events shall occur for any reason whatsoever (and whether such occurrence shall be voluntary or involuntary
or come about or be effected by operation by law or otherwise) (each, an “Event of Default”):

 

(i)
Non-Payment of Obligations. The Company
shall default in the payment of the principal of this Note as and when the same shall become due and payable (whether by acceleration
or otherwise) or shall fail to pay accrued interest on this Note within five (5) business days of when the same shall become due
and payable (whether by acceleration or otherwise);

 

(ii)
Non-Performance of Affirmative Covenants.
The Company shall default in the due observance or performance of any covenant set forth in Section 3A, which default shall continue
uncured for thirty (30) days;

 

(iii)
Non-Performance of Negative Covenants.
The Company shall default in the due observance or performance of any covenant set forth in Section 3B, and, if capable of cure,
such default shall not have been cured within thirty (30) days;

 

(iv)
Bankruptcy, Insolvency, Etc. The Company
(or any of its subsidiaries) shall:

 

(a)
in any legal document admit in writing its inability
to pay its debts as they become due;

 

(b)
apply for, consent to, or acquiesce in, the appointment
of a trustee, receiver, sequestrator or other custodian for the Company or any of its property, or make a general assignment for
the benefit of creditors;

 

(c)
in the absence of such application, consent or
acquiesce in, permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other custodian for the Company
or for any part of its property;

 

(d)
permit or suffer to exist the commencement of
any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or any dissolution,
winding up or liquidation proceeding, in respect of the Company, and, if such case or proceeding is not commenced by the Company
or converted to a voluntary case, such case or proceeding shall be consented to or acquiesced in by the Company or shall result
in the entry of an order for relief; or

 

(e)
take any corporate or other action authorizing,
or in furtherance of, any of the foregoing;

 

    	5

    	 	 	 

    

 

(v)
Cross-Default. The Company shall default
in the payment when due, after the expiration of any applicable grace period, of any amount payable under any other obligation
of the Company for money borrowed in excess of $100,000;

 

(vi)
Cross-Acceleration. Any other indebtedness
for borrowed money of the Company (or any of its subsidiaries) in an aggregate principal amount exceeding $100,000 shall be duly
declared to be or shall become due and payable prior to the stated maturity thereof or shall not be paid as and when the same
becomes due and payable including any applicable grace period;

 

(vii)
Other Breaches, Defaults. The Company
shall default or be in breach of any term or provision of this Note, any other Transaction Document (as defined in the Note Purchase
Agreement), in any material respect, for a period of thirty (30) days, or any material representation or warranty made by the
Company to the Payee in any Transaction Document shall be materially false or misleading; or

 

(viii)
Security Documents. The Security Documents
shall cease to create a valid and perfected Lien in and to any material Collateral;

 

then,
and in any such event, the Holder shall, by notice to the Company, take or cause to be taken any or all of the following actions,
without prejudice to the rights of Payee to enforce its claims against the Company: (1) declare the principal of and any accrued
interest and all other amounts payable under this Note to be due and payable, whereupon the same shall become, forthwith due and
payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company, (2) proceed
to enforce or cause to be enforced any remedies provided under the Security Agreement, and (3) exercise any other remedies available
at law or in equity, either by suit in equity or by action at law, or both, whether for specific performance of any covenant or
other agreement contained in this Note; provided, that upon the occurrence of any Event of Default referred to in Section 4(v)
then (without prejudice to the rights and remedies specified in clause (3) above) automatically, without notice, demand or any
other act by any Holder, the principal of and any accrued interest and all other amounts payable under this Note shall become
immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Company, anything contained in this Note to the contrary notwithstanding. No remedy conferred in this Note upon
any Holder is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in
addition to every other remedy conferred herein or now or hereinafter existing at law or in equity or by statute or otherwise.

 

5.
Conversion of Note.

 

A.
Optional Conversion. The Holder of this
Note shall have the option, at any time and from time to time, prior to the date on which the Company makes payment in full of
the Principal Amount of this Note in accordance herewith, all accrued interest thereon and all other amounts due and payable thereunder
to convert all or any portion of the outstanding Principal Amount of this Note plus all accrued and unpaid interest thereon (such
Principal Amount and accrued and unpaid interest to be so converted the “Conversion Amount”) into shares of
common stock, par value $0.001 per share (“Common Stock”), of the Company at an initial conversion price per
share equal to $0.15 per share (the “Conversion Price”), subject to adjustment as provided in subsection 5E
below. The shares of Common Stock issuable upon conversion of this Note at the Conversion Price are referred to herein as the
“Conversion Shares.”

 

    	6

    	 	 	 

    

 

B.
Conversion Limitation. Notwithstanding
anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount
that would be convertible into that number of Conversion Shares which would exceed the difference between the number of shares
of Common Stock beneficially owned by such Holder and 4.99% of the outstanding shares of Common Stock of the Company. For the
purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. The Holder may void the Conversion Share limitation
described in this Section 5B upon 65 days prior notice to the Company or without any notice requirement upon an Event of Default.

 

C.
Mechanics of Conversion.

 

(i)
Before the Holder of this Note shall be entitled
to convert this Note into shares of Common Stock pursuant to Section 5A, such holder shall give written notice to the Company
in the form attached hereto as Annex A (“Conversion Notice”), at its principal corporate office, by
email, facsimile or otherwise, of the election to convert the same and shall state therein the Conversion Amount and the name
or names in which the certificate or certificates for shares of Common Stock are to be issued. On or before the third (3rd) business
day following the date of receipt of a Conversion Notice, the Company shall (A) if legends are not required to be placed on certificates
of Common Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 (“Rule 144”)
and provided that the Company’s transfer agent is participating in the Depository Trust Company’s (“DTC”)
Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be
entitled to the Holder’s or its designee’s balance account with DTC, or (B) if the Company’s transfer agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the
Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock
to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant the Rule
144.

 

(ii)
All Common Stock which may be issued upon conversion
of the Note will, upon issuance, be duly issued, fully paid and non-assessable and free from all taxes, liens, and charges with
respect to the issuance thereof.

 

D.
Authorized Shares. At all times the Company
shall have authorized and shall have reserved a sufficient number of shares of Common Stock to provide for the conversion of the
Notes at the then effective Conversion Price. Without limiting the generality of the foregoing, if, at any time, the Conversion
Price is decreased, the number of shares of Common Stock authorized and reserved for issuance upon the conversion of this Note
shall be proportionately increased.

 

    	7

    	 	 	 

    

 

E.
Anti-Dilution Provisions. The Conversion
Price in effect at any time and the number and kind of securities issuable upon the conversion of this Note shall be subject to
adjustment from time to time upon the happening of certain events as follows:

 

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

 

(ii)
Whenever the Conversion Price is adjusted pursuant
to Subsection (i) above, the number of Conversion Shares issuable upon conversion of this Note shall simultaneously be adjusted
by multiplying the number of Conversion Shares initially issuable upon conversion of this Note by the Conversion Price in effect
on the date hereof and dividing the product so obtained by the Conversion Price, as adjusted.

 

(iii)
In case of any reorganization, reclassification
or change of the Common Stock (including any such reorganization, reclassification or change in connection with a consolidation
or merger in which the Company is the continuing entity), or any consolidation of the Company with, or merger of the Company with
or into, any other entity (other than a consolidation or merger in which the Company is the continuing entity), or of any sale
of the properties and assets of the Company as, or substantially as, an entirety to any other person or entity, this Note shall
thereafter be convertible into the kind and amount of stock or other securities or property receivable upon such reorganization,
reclassification, change, consolidation, merger or sale by a Holder of the number of shares of Common Stock into which this Note
would have been converted prior to such transaction. The provisions of this subsection (iii) shall similarly apply to successive
reorganizations, reclassifications, changes, consolidations, mergers or sales immediately prior to such reorganization, reclassification,
change, consolidation, merger or sale.

 

    	8

    	 	 	 

    

 

6.
Amendments and Waivers.

 

The
provisions of this Note may from time to time be amended, modified or supplemented, if such amendment, modification or supplement
is in writing and consented to by the Company and the Holder. No failure or delay on the part of the Payee in exercising any power
or right under this Note shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on the Company
in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by the Payee shall,
except as may be otherwise stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval
hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. To the extent that the
Company makes a payment or payments to the Payee, and such payment or payments or any part thereof are subsequently for any reason
invalidated, set aside and/or required to be repaid by the Payee to a trustee, receiver or any other party under any bankruptcy
law, state or federal law, common law or equitable cause, then to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied, and all rights and remedies therefor, shall be revived and continued in full force and effect
as if such payment had not been made by the Payee or such enforcement or setoff had not occurred.

 

7.
Miscellaneous.

 

A.
Parties in Interest. All covenants, agreements
and undertakings in this Note binding upon the Company or the Payee shall bind and inure to the benefit of its successors and
permitted assigns of the Company and the Payee, respectively, whether so express or not.

 

B.
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without
regard to the conflicts of laws principles thereof.

 

C.
Waiver of Jury Trial. THE PAYEE AND THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS NOTE OR
ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED AND DELIVERED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE PAYEE OR THE COMPANY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE’S
PURCHASING THIS NOTE.

 

    	9

    	 	 	 

    

 

IN
WITNESS WHEREOF, this Note has been executed and delivered on the date specified above by the duly authorized representative of
the Company.

 

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

 

    	10

    	 	 	 

    

 

ANNEX
A

 

CONVERSION
NOTICE

 

The
undersigned hereby elects to convert principal and/or interest under the 9% Secured Subordinated Convertible Promissory Note,
originally issued as of February 11, 2020 (the “Note”) of Digipath, Inc., a Nevada corporation (the “Company”),
into shares of common stock (the “Common Stock”), of the Company according to the conditions hereof and the
Note, as of the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions
as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except
for such transfer taxes, if any.

 

By
the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common
Stock does not exceed the amounts specified under Section 5B of the Note, as determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended.

 

	Conversion
    calculations:	Date
    to Effect Conversion: ____________________________________________
	 	Principal
    Amount of Note to be Converted: _______________________________
	 	Amount
    of Interest of Note to be Converted: _____________________________
	 	Number
    of shares of Common Stock to be issued: _________________________
	 	 ________________________________________________________________
	 	 
	 	Signature:
    _______________________________________________________ 
	 	Name:___________________________________________________________
	 	Address
    for Delivery of Common Stock Certificates: ______________________
	 	 _______________________________________________________________
	 	 _______________________________________________________________
	 	 
	 	Or
	 	 
	 	DWAC
    Instructions:
	 	 
	 	Broker
    No: ______________
	 	Account
    No: _____________

 

    	11Exhibit
10.3

 

SECURITY
AGREEMENT

 

SECURITY
AGREEMENT (this “Agreement”), dated as of February 11, 2020 (this “Agreement”) between DIGIPATH, INC.,
a Nevada corporation (the “Parent”), DIGIPATH, LABS, INC., a Nevada corporation (“Digi Labs” and together
with the Parent, collectively, the “Company”), and ELIZABETH PARKER (the “Secured Party”).

 

WHEREAS,
the Secured Party has agreed to make a loan to the Company in the amount of $50,000 which will be evidenced by an 9% Secured Convertible
Promissory Note of the Parent dated as of the date hereof (the “Note”);

 

WHEREAS,
Digi Labs is a wholly-owned subsidiary of the Parent; and

 

WHEREAS,
in order to induce the Secured Party to purchase the Note, the Company has agreed to grant the Secured Party a security interest
in the Company’s assets to secure the Parent’s obligations under the Note.

 

NOW,
THEREFORE, in consideration of the promises contained herein and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Definitions. The term “State”, as used herein, means the State of Nevada. All terms defined in the Uniform
Commercial Code of the State and used herein shall have the same definitions herein as specified therein. However, if a term is
defined in Article 9 of the Uniform Commercial Code of the State differently than in another Article of the Uniform Commercial
Code of the State, the term has the meaning specified in Article 9. The term “Obligations”, as used herein, means
all of the indebtedness, obligations and liabilities of the Company to the Secured Party, whether direct or indirect, joint or
several, absolute or contingent, due or to become due, now existing or hereafter arising under or in respect of the Note, or other
instruments or agreements executed and delivered pursuant thereto or in connection therewith or this Agreement. The term “Event
of Default,” as used in this Agreement, shall mean an Event of Default under the Note, the failure of the company to pay
any of the Obligations when due, or such other default or breach by the Company of any of the Obligations.

 

2.
Grant of Security Interest. The Company hereby grants to the Secured Party, to secure the payment and performance in
full of all of the Obligations, a security interest in and so pledges and assigns to the Secured Party, the following properties,
assets and rights of the Company, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof (all of the same being hereinafter called the “Collateral”): all personal and fixture property of every kind
and nature including without limitation all goods (including inventory, equipment and any accessions thereto), instruments (including
promissory notes), documents, accounts (including health-care-insurance receivables), chattel paper (whether tangible or electronic),
deposit accounts, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims,
securities and all other investment property, supporting obligations, any other contract rights or rights to the payment of money,
insurance claims and proceeds, and all general intangibles (including all payment intangibles).

 

    	 	 	 

     

    

 

3.
Authorization to File Financing Statements. The Company hereby irrevocably authorizes the Secured Party at any time
and from time to time to file in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto
that (a) indicate the Collateral (i) as all assets of the Company or words of similar effect, regardless of whether any particular
asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code of the State or such jurisdiction,
or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information required by part 5
of Article 9 of the Uniform Commercial Code of the State for the sufficiency or filing office acceptance of any financing statement
or amendment, including whether the Company is an organization, the type of organization and any organization identification number
issued to the Company. The Company agrees to furnish any such information to the Secured Party promptly upon request.

 

4.
Other Actions. Further to ensure the attachment, perfection and priority of, and the ability of the Secured Party to
enforce, its security interest in the Collateral, the Company agrees, in each case at the Company’s own expense, to take
the following actions with respect to the following Collateral:

 

4.1.
Commercial Tort Claims. If the Company shall at any time hold or acquire a commercial tort claim, the Company shall
immediately notify the Secured Party in a writing signed by the Company of the brief details thereof and grant to the Secured
Party, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such
writing to be in form and substance satisfactory to the Secured Party.

 

4.2.
Other Actions as to any and all Collateral. The Company further agrees to take any other action reasonably requested
by the Secured Party to ensure the attachment, and perfection of, and the ability of the Secured Party to enforce, the Secured
Party’s security interest in any and all of the Collateral.

 

5.
Representations and Warranties Concerning Company’s Legal Status. The Company represents and warrants to the
Secured Party as follows: (a) the Company’s exact legal name is that indicated on the signature page hereof, (b) the Company
is a corporation incorporated in the jurisdiction of the State of Nevada, and (c) the Company’s chief executive office and
mailing address is located at 6450 Cameron Blvd., Suite 113, Las Vegas, Nevada 89118.

 

6.
Covenants Concerning Company’s Legal Status. The Company covenants with the Secured Party as follows: (a) without
providing at least 30 days prior written notice to the Secured Party, the Company will not change its name, its place of business
or, if more than one, chief executive office, or its mailing address or organizational identification number if it has one, and
(b) the Company will not change its type of organization, jurisdiction of organization or other legal structure.

 

    	 	2	 

     

    

 

7.
Representations and Warranties Concerning Collateral, Etc. The Company further represents and warrants to the Secured
Party that the Company is the owner of the Collateral, free from any adverse lien, security interest or other encumbrance, except
for liens incurred in the ordinary course of business which arise by operation of law and which liens secure amounts not yet due,
and liens in favor of existing lenders of the Company.

 

8.
Insurance. The Company will maintain with financially sound and reputable insurers insurance with respect to its properties
and business against such casualties and contingencies as shall be in accordance with general practices of businesses engaged
in similar activities in similar geographic areas. Such insurance shall be in such minimum amounts that the Company will not be
deemed a co-insurer under applicable insurance laws, regulations and policies and otherwise shall be in such amounts, contain
such terms, be in such forms and be for such periods as may be reasonably satisfactory to the Secured Party.

 

9.
Collateral Protection Expenses; Preservation of Collateral.

 

9.1.
Expenses incurred by Secured Party. In its discretion, the Secured Party may discharge taxes and other encumbrances
at any time levied or placed on any of the Collateral, make repairs thereto and pay any necessary filing fees or, if the Company
fails to do so, insurance premiums. The Company agrees to reimburse the Secured Party on demand for any and all expenditures so
made. The Secured Party shall have no obligation to the Company to make any such expenditures, nor shall the making thereof relieve
the Company of any default.

 

9.2.
Secured Party’s Obligations and Duties. Anything herein to the contrary notwithstanding, the Company shall remain
liable under each contract or agreement comprised in the Collateral to be observed or performed by the Company thereunder. The
Secured Party shall not have any obligation or liability under any such contract or agreement by reason of or arising out of this
Agreement or the receipt by the Secured Party of any payment relating to any of the Collateral, nor shall the Secured Party be
obligated in any manner to perform any of the obligations of the Company under or pursuant to any such contract or agreement,
to make inquiry as to the nature or sufficiency of any payment received by the Secured Party in respect of the Collateral or as
to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take
any action to enforce any performance or to collect the payment of any amounts which may have been assigned to the Secured Party
or to which the Secured Party may be entitled at any time or times. The Secured Party’s sole duty with respect to the custody,
safe keeping and physical preservation of the Collateral in its possession, under Section 9-207 of the Uniform Commercial Code
of the State or otherwise, shall be to deal with such Collateral in the same manner as the Secured Party deals with similar property
for its own account.

 

    	 	3	 

     

    

 

10.
Remedies. If an Event of Default shall have occurred and be continuing, the Secured Party may, without notice to or
demand upon the Company, declare this Agreement to be in default, and the Secured Party shall thereafter have in any jurisdiction
in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party
under the Uniform Commercial Code of the State or of any jurisdiction in which Collateral is located.

 

11.
Standards for Exercising Remedies. To the extent that applicable law imposes duties on the Secured Party to exercise
remedies in a commercially reasonable manner, the Company acknowledges and agrees that it is not commercially unreasonable for
the Secured Party (a) to fail to incur expenses reasonably deemed significant by the Secured Party to prepare Collateral for disposition
or otherwise to complete raw material or work in process into finished goods or other finished products for disposition, (b) to
fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law,
to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed
of, (c) to fail to exercise collection remedies against account debtors or other persons obligated on Collateral or to remove
liens or encumbrances on or any adverse claims against Collateral, (d) to exercise collection remedies against account debtors
and other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists,
(e) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral
is of a specialized nature, (f) to contact other persons, whether or not in the same business as the Company, for expressions
of interest in acquiring all or any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the
disposition of Collateral, whether or not the collateral is of a specialized nature, (h) to dispose of Collateral by utilizing
Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability
of doing so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j)
to disclaim disposition warranties, (k) to purchase insurance or credit enhancements to insure the Secured Party against risks
of loss, collection or disposition of Collateral or to provide to the Secured Party a guaranteed return from the collection or
disposition of Collateral, or (l) to the extent deemed appropriate by the Secured Party, to obtain the services of other brokers,
investment bankers, consultants and other professionals to assist the Secured Party in the collection or disposition of any of
the Collateral. The Company acknowledges that the purpose of this Section 11 is to provide non-exhaustive indications of what
actions or omissions by the Secured Party would not be commercially unreasonable in the Secured Party’s exercise of remedies
against the Collateral and that other actions or omissions by the Secured Party shall not be deemed commercially unreasonable
solely on account of not being indicated in this Section 11. Without limitation upon the foregoing, nothing contained in this
Section 11 shall be construed to grant any rights to the Company or to impose any duties on the Secured Party that would not have
been granted or imposed by this Agreement or by applicable law in the absence of this Section 11.

 

    	 	4	 

     

    

 

12.
No Waiver. The Secured Party shall not be deemed to have waived any of its rights upon or under the Obligations or
the Collateral unless such waiver shall be in writing and signed by the Secured Party. No delay or omission on the part of the
Secured Party in exercising any right shall operate as a waiver of such right or any other right. A waiver on any one occasion
shall not be construed as a bar to or waiver of any right on any future occasion. All rights and remedies of the Secured Party
with respect to the Obligations or the Collateral, whether evidenced hereby or by any other instrument or papers, shall be cumulative
and may be exercised singularly, alternatively, successively or concurrently at such time or at such times as the Secured Party
deems expedient.

 

13.
Waivers by Company. The Company waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans
made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands and notices
of any description. With respect to both the Obligations and the Collateral, the Company assents to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange or release of or failure to perfect any security
interest in any Collateral, to the addition or release of any party or person primarily or secondarily liable, to the acceptance
of partial payment thereon and the settlement, compromising or adjusting of any thereof, all in such manner and at such time or
times as the Secured Party may deem advisable. The Secured Party shall have no duty as to the collection or protection of the
Collateral or any income thereon, nor as to the preservation of rights against prior parties, nor as to the preservation of any
rights pertaining thereto beyond the safe custody thereof as set forth in Section 9.2. The Company further waives any and all
other suretyship defenses.

 

14.
Marshalling. The Secured Party shall not be required to marshal any present or future collateral security (including
but not limited to this Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or
to resort to such collateral security or other assurances of payment in any particular order, and all of its rights hereunder
and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights,
however existing or arising. To the extent that it lawfully may, the Company hereby agrees that it will not invoke any law relating
to the marshaling of collateral which might cause delay in or impede the enforcement of the Secured Party’s rights under
this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations
is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that
it lawfully may, the Company hereby irrevocably waives the benefits of all such laws.

 

    	 	5	 

     

    

 

15.
Proceeds of Dispositions; Expenses. The Company shall pay to the Secured Party on demand any and all expenses, including
reasonable attorneys’ fees and disbursements, incurred or paid by the Secured Party in protecting, preserving or enforcing
the Secured Party’s rights under or in respect of any of the Obligations or any of the Collateral. After deducting all of
said expenses, the residue of any proceeds of collection or sale of the Obligations or Collateral shall, to the extent actually
received in cash, be applied to the payment of the Obligations in such order or preference as the Secured Party may determine,
proper allowance and provision being made for any Obligations not then due. Upon the final payment and satisfaction in full of
all of the Obligations and after making any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform Commercial
Code of the State, any excess shall be returned to the Company, and the Company shall remain liable for any deficiency in the
payment of the Obligations.

 

16.
Overdue Amounts. Until paid, all amounts due and payable by the Company hereunder shall be a debt secured by the Collateral.

 

17.
Governing Law; Consent to Jurisdiction. THIS AGREEMENT IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT AND SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEVADA. The Company agrees that any suit for the enforcement
of this Agreement may be brought in the courts of the State or any federal court sitting therein and consents to the non-exclusive
jurisdiction of such court and to service of process in any such suit being made upon the Company by mail at the address specified
in Section 5. The Company hereby waives any objection that it may now or hereafter have to the venue of any such suit or any such
court or that such suit is brought in an inconvenient court.

 

18.
Miscellaneous. The headings of each section of this Agreement are for convenience only and shall not define or limit
the provisions thereof. This Agreement and all rights and obligations hereunder shall be binding upon the Company and its respective
successors and assigns, and shall inure to the benefit of the Secured Party and its successors and assigns. If any term of this
Agreement shall be held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected
thereby, and this Agreement shall be construed and be enforceable as if such invalid, illegal or unenforceable term had not been
included herein.

 

    	 	6	 

     

    

 

IN
WITNESS WHEREOF, intending to be legally bound, the Company has caused this Agreement to be duly executed as of the date first
above written.

 

	 	DIGIPATH,
    INC.
	 	 	
	 	By:	   
	 	Name:
    	Todd
    Peterson
	 	Title:
    	Chief
    Financial Officer
	 	 	 
	 	DIGIPATH
    LABS, INC.
	 	 	 
	 	By:	 
	 	Name:
    	Todd
    Peterson
	 	Title:
    	Chief
    Financial Officer
	 	 	 
	 	SECURED
    PARTY:
	 	 	 
	 	Elizabeth Parker
	 	 	 
	 	By:	 
	 	Name:	Elizabeth
    Parker

 

    	 	7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]