Document:

EXHIBIT 10.1

 

SEPARATION
AGREEMENT

 

This
Separation Agreement (this “Agreement”) is made and entered into as of October 3, 2014 (the “Effective Date”),
by and between DigiPath, Inc., a Nevada corporation (the “Company”) and Joe Tanner, an individual (“Tanner”).
The Company and Tanner are hereinafter collectively referred to as the “Parties.”

 

RECITALS

 

WHEREAS,
the Company and Tanner are parties to that certain Consulting, Confidentiality and Proprietary Rights Agreement, dated May 30,
2014, as amended by that certain Amendment No. 1 to Consulting, Confidentiality and Proprietary Rights Agreement, dated September
12, 2014 (collectively, the “Consulting Agreement”); and

 

WHEREAS,
the Company and Tanner wish to fully settle and discharge all claims and damages, whether known or unknown, and whether anticipated
or unanticipated, which are or may be the subject of any lawsuit or any other claim which has arisen or which may arise between
the Parties upon the terms and conditions set forth herein.

 

NOW
THEREFORE, in consideration of the foregoing recitals and for good and valuable mutual consideration, the receipt of which is
hereby acknowledged, the Parties, intending to be legally bound, do hereby agree to the following terms and conditions:

 

AGREEMENT

 

1. Settlement
Consideration. As satisfaction and performance in full of all obligations due and payable by and among the Parties (including
those due pursuant to the Consulting Agreement):

 

(a) The
Company shall pay to Tanner the amount of One Hundred Twenty Five Thousand Dollars (US $125,000) (which amount shall not be subject
to withholding by the Company) as set forth below:

 

	 	i)	Seventy
    Five Thousand Dollars (US $75,000) within two business days of the execution of this Agreement; and
	 	 	 
	 	ii)	Commencing
    November 1, 2014, Twelve Thousand Five Hundred Dollars ($12,500) on the first calendar day of each month for a period of four
    months, for an aggregate of Fifty Thousand Dollars (US $50,000).

 

(b) Within
five business days of the execution of this Agreement, the Company shall deliver to Tanner certificates representing 250,000 shares
of the Company’s common stock, free of all liens, pledge, charge, claim, restriction on transfer, mortgage, security interest
or other encumbrance other than statutory liens for liabilities not yet due and payable and transfer restrictions imposed by applicable
securities laws. Such securities shall not be subject to any pre-emptive rights or rights of first refusal created by any agreement
or understanding to which the Company is a party.

 

(c) In
addition to the amounts set forth above in Sections 1(a) hereof, the Company shall pay in full to Tanner all cash consideration
that would have accrued pursuant to the Consulting Agreement as of the Effective Date assuming the continuation of the Consulting
Agreement up to and including the Effective Date.

 

    	 

    	 

    

  

(d) Effective
upon Tanner’s receipt of the amounts set forth in Sections 1(a)i) and 1(c) above, Tanner hereby resigns from all of his
positions with the Company and its subsidiaries, including without limitation, all positions as an officer or director of the
Company and any of its subsidiaries and all other positions purporting to represent or act on behalf of the Company and or its
subsidiaries (including bank signatories).

 

(e) The
Company shall timely file all forms, reports or other documents required by the Securities and Exchange Commission to be filed
by it and on behalf of Tanner in connection with the transactions contemplated herein, including all Section 16 filings; provided,
however, that the Company shall not be liable for any delinquent filings or failures to file arising from Tanner’s failure
to reasonably cooperate with the Company in the preparation, review and filing of such forms, reports or documents.

 

2. Advisory
Services. For a period of four (4) months after the Effective Date, Tanner agrees to make himself available to advise the
Company in matters relating to cannabis lab operations in Washington State, when requested to do so. In such capacity, Mr. Tanner
shall report and communicate solely to Todd Denkin, Director of the Company. The Parties agree and acknowledge that in providing
such advisory services Tanner shall receive compensation in addition to the amounts set forth in Section 1 above.

 

3. Releases.

 

(a) Effective
upon Tanner’s receipt of all consideration due to him pursuant to Sections 1(a)i), 1(b) and 1(c) hereof, the Parties, on
behalf of itself and each of its representatives, agents, affiliates, successors, predecessors, attorneys, heirs, executors, administrators,
agents and assigns, and each and all of them, fully release and forever discharge each other, each of its former and current principals,
officers, members, managers, directors, shareholders, employees, representatives, agents, parents, subsidiaries, affiliates, successors,
predecessors, attorneys, heirs, executors, administrators, agents and assigns, and each and all of them, as applicable, of and
from any and all claims, debts, rights, liabilities, damages, costs, expenses, attorneys’ fees, causes of action, lawsuits,
arbitrations, loss of use and loss of services of every kind, nature, or description, whether known or unknown, suspected or unsuspected,
which previously existed, now exist, or may exist hereafter, accruing, occurring or arising from or in any way related to the
Consulting Agreement, the separation of the Parties, the operation and business of the Company, and the performance and other
conduct of the Parties in connection with the operation and business of the Company including Tanner’s conduct as a director
and executive officer of the Company and or its subsidiaries, whether based on tort, contract, statute, insurance policy, or other
theory of recovery, and whether for compensatory or punitive damages, including attorneys’ fees and costs, as well as statutory
sanctions, which the Parties ever had against each other or now have against each other including, but not limited to, defamation,
intentional infliction of emotional distress, interference with contract, impairment of economic opportunity, breach of promise,
conspiracy, fiduciary breach, declaratory relief, prohibited transactions, fraud, misrepresentation, and retaliation. All of the
foregoing released matters are hereinafter collectively referred to as the “Released Matters.”

 

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(b) The
releases set forth above are not intended to, and shall not, extend to or otherwise release or discharge any rights, privileges,
benefits, duties, or obligations of any of the Parties by reason of, or otherwise arising under, (i) this Agreement, (ii) Tanner’s
right to seek indemnification from the Company pursuant to this Agreement or any existing indemnification agreement with the Company,
or (iii) with regard to any director and officer insurance policy covering Tanner.

 

(c) The
Parties, and each of them, acknowledge that they may hereafter discover facts different from, or in addition to, those which they
now believe to be true with respect to any and all of the Released Matters, including without limitation, unknown or unanticipated
claims which, if known or anticipated, on the date of execution of this Agreement, might have materially affected such Party’s
decision to execute this Agreement. Each of the Parties acknowledges and agrees that by reason of the mutual general release set
forth above, they are assuming the risk of such unknown claims and agree that this Agreement shall apply thereto. Nevertheless,
the Parties hereto, and each of them, hereby agree that each of the releases set forth above shall be and remain effective in
all respects, notwithstanding the discovery of such different or additional facts.

 

4. Civil
Code Section 1542. The Parties represent that they are not aware of any disputes or causes of action they have other than
the disputes and causes of action that are released by this Agreement. The Parties expressly agree and understand that this Agreement
is a full and final release of all claims of every nature and kind, known or unknown, suspected or unsuspected, past, present,
or future, of all Released Matters, and execution of this Agreement by the Parties operates as a complete bar and defense against
any and all claims that may be made by the Parties with regard to the Released Matters, and that, should any proceeding be instituted
with respect to matters released herein, this Agreement shall be deemed in full and complete accord, satisfaction and settlement
of any such released matter and sufficient basis for its dismissal. The Parties have read and fully understand the statutory language
of section 1542 of the California Civil Code and on that basis expressly and specifically waive all rights under said statute
or any analogous state law or federal law or regulation. Section 1542 of the California Civil Code reads as follows:

 

  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The
Parties expressly waive any rights they may have under it, as well as under any other statute or common law principles of similar
effect. Each Party represents further that as of the date of execution of this Agreement, it has not brought any claims of the
type released against any of the released parties set forth above.

 

5. Warranty
Of Non-Assignment. Each of the Parties hereby warrants, represents and agrees that it is the sole and lawful owner of all
right, title and interest in and to all of the respective Released Matters which are referred to in the mutual general release
set forth above and that it has not heretofore voluntarily, by operation of law or otherwise, assigned or transferred or purported
to assign or transfer to any person whomsoever any such Released Matters, or any part or portion thereof. The Parties shall not
assign, encumber or otherwise transfer to any party or person any such Released Matters, or any part or portion thereof.

 

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6. No
Admission of Liability. It is specifically understood and agreed that this Agreement constitutes a complete compromise and
settlement of disputed claims, and that neither the execution of this Agreement nor the payment of any monies hereunder is to
be deemed an admission of liability by the Parties or any of them. Each Party acknowledges that this Agreement is not, and cannot
be construed as, any admission of fault by the other Parties.

 

7. Indemnification.
The Company and its subsidiaries (collectively, the “Indemnifying Parties”) shall jointly and severally indemnify
Tanner (the “Indemnitee”) in accordance with the provisions of this Section 7 if Indemnitee is, or is threatened to
be made, a party to or a participant in any Proceeding. Pursuant to this Section 7, Indemnitee shall be indemnified against all
Expenses, judgments, fines and amounts paid in settlement actually incurred by Indemnitee or on his behalf in connection with
such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause
to believe that his conduct was unlawful. The Indemnitees hereby agree and acknowledge that Indemnitee has acted in good faith
and in a manner Indemnitee reasonably believes to be in the best interest of the Company at all times during the Consulting Agreement
and thereafter. “Proceeding” shall include any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed
proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative
nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party
witness or otherwise by reason of the fact that Indemnitee is or was a director, officer or shareholder of the Company, by reason
of any action taken by him or of any action or inaction on his part while acting as director or officer of the Company, or by
reason of the fact that he is or was serving at the request of the Company as a director, trustee, general partner, manager, member,
officer, employee or agent of another corporation, partnership, joint venture, trust or fiduciary of the Company or any other
enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification,
reimbursement, or advancement of expenses can be provided under this Agreement. “Expenses” shall include all
attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the
types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or
preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include Expenses incurred in connection
with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating
to any cost bond, supersedeas bond, or other appeal bond or its equivalent.

 

(a) Advancement
of Expenses. The Indemnifying Parties shall, jointly and severally, advance all Expenses incurred by Indemnitee in connection
with the investigation, defense, settlement or appeal of any civil or criminal action or Proceeding referenced in Section 7 hereof
(but not amounts actually paid in settlement of any such action or Proceeding). Indemnitee hereby undertakes to repay such amounts
advanced only if, and to the extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified
by the Company as authorized hereby or elsewhere. The advances to be made hereunder shall be paid by the Indemnifying Parties
to Indemnitee within ten (10) days following delivery of a written request therefor by Indemnitee to the Indemnifying Parties.

 

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(b) Notice/Cooperation
by Indemnitee. Indemnitee shall give the Indemnifying Parties notice in writing as soon as practicable of any claim made against
Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Indemnifying Parties shall be
directed the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall
designate in writing to Indemnitee). Notice shall be deemed received as set forth in Section 11(o) hereof. In addition, Indemnitee
shall give the Indemnifying Parties such information and cooperation in the defense of any pending, threatened or completed action
or Proceeding as shall be within Indemnitee’s power, except that Indemnitee shall not be required to give the Indemnifying
Parties information that is privileged or confidential as to Indemnitee. The giving of notice required under this Section 7(b)
shall be a condition precedent to Indemnitee’s right to be indemnified under this Agreement if the failure to give such
notice materially prejudices any right, claim or defense available to the Indemnifying Parties.

 

(c) Procedure.
Any indemnification provided for in Section 7 shall be made no later than forty-five (45) days after receipt of the written request
of Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the Consulting Agreement providing
for indemnification, is not paid in full by the Indemnifying Parties within forty-five (45) days after a written request for payment
thereof has first been received by the Indemnifying Parties, Indemnitee may, but need not, at any time thereafter bring an action
against the Indemnifying Parties to recover the unpaid amount of the claim, and Indemnitee shall also be entitled to be paid for
the Expenses (including attorneys’ fees) of bringing such action. It shall be a defense to any such action (other than an
action brought to enforce a claim for Expenses incurred in connection with any action or Proceeding in advance of its final disposition)
that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Indemnifying Parties
to indemnify Indemnitee for the amount claimed, but the burden of proving such defense shall be on the Indemnifying Parties, and
Indemnitee shall be entitled to receive interim payments of Expenses pursuant to Subsection 7(a) unless and until such defense
may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the Parties’ intention
that if the Indemnifying Parties contest Indemnitee’s right to indemnification, the question of Indemnitee’s right
to indemnification shall be for the court to decide on a de novo basis, and neither the failure of the Indemnifying Parties (including
the Board of Directors or officers of the Company, any committee or subgroup of the Board of Directors or officers, independent
legal counsel, or the shareholders of the Company) to have made a determination that indemnification of Indemnitee is proper in
the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination
by the Indemnifying Parties (including the Board of Directors or officers of the Company, any committee or subgroup of the Board
of Directors or officers, independent legal counsel, or the shareholders of the Company) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct.

 

(d) Notice
to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 7(b) hereof, the Company has director
and officer liability insurance in effect, the Indemnifying Parties shall give prompt notice of the commencement of such Proceeding
to the insurers in accordance with the procedures set forth in the respective policies. The Indemnifying Parties shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such Proceeding in accordance with the terms of such policies.

 

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(e) Selection
of Counsel. In the event the Indemnifying Parties shall be obligated under Section 7 hereof to pay the Expenses of any Proceeding
against Indemnitee, the Indemnifying Parties, if appropriate, shall be entitled to assume the defense of such Proceeding, with
counsel approved by Indemnitee, which approval shall not be unreasonably delayed, upon the delivery to Indemnitee of written notice
of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel
by the Indemnifying Parties, the Indemnifying Parties will not be liable to Indemnitee under this Agreement for any fees of counsel
subsequently incurred by Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee shall have the right to
employ his or her counsel in any such Proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee
has been previously authorized by the Indemnifying Parties, (B) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Indemnifying Parties and Indemnitee in the conduct of any such defense or (C) the Indemnifying
Parties shall not, in fact, have employed counsel to assume the defense of such Proceeding, then the fees and Expenses of Indemnitee’s
counsel shall be at the expense of the Indemnifying Parties.

 

(f) Settlement
of Claims. The Indemnifying Parties shall not settle any claim, action or Proceeding (in whole or in part) which would impose
any Expense, judgment, fine, penalty or limitation on Indemnitee without the Indemnitee’s prior written consent, which consent
shall not be unreasonably delayed or withheld.

 

8. Additional
Indemnification Rights; Nonexclusivity.

 

(a) Scope.
Notwithstanding any other provision of this Agreement, the Indemnifying Parties hereby agree to, jointly and severally, indemnify
Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by
the other provisions of this Agreement, the Consulting Agreement, or by statute. In the event of any change after the date of
this Agreement, in any applicable law, statute or rule which expands the right of a Nevada corporation or the Indemnifying Parties
to indemnify a member of its board of directors, an officer or shareholder, such changes shall be, ipso facto, within the purview
of Indemnitee’s rights and the obligations of the Indemnifying Parties, under this Agreement. In the event of any change
in any applicable law, statute or rule which narrows the right of a Nevada corporation or the Indemnifying Parties to indemnify
a member of its Board of Directors or an officer or shareholder, such changes, to the extent not otherwise required by such law,
statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the Parties’ rights and obligations
hereunder.

 

(b) Nonexclusivity.
The indemnification and advancement provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee
may be entitled under the Consulting Agreement, any agreement, any vote of shareholders/members or disinterested directors, the
Nevada Revised Statutes, California Corporations Code or otherwise, both as to action in Indemnitee’s official capacity
and as to action in another capacity while holding such office. The indemnification and advancement provided under this Agreement
shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though he may
have ceased to serve in such capacity at the time of any action or other covered Proceeding.

 

(c) Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement or otherwise to indemnification by the Indemnifying
Parties for some or a portion of the Expenses, judgments, fines or penalties actually or reasonably incurred by him in the investigation,
defense, appeal or settlement of any civil or criminal action or Proceeding, but not, however, for the total amount thereof, the
Indemnifying Parties shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines or penalties to
which Indemnitee is entitled.

 

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(d) Mutual
Acknowledgment. The Parties acknowledge that in certain instances, applicable law or public policy may prohibit the Company
from indemnifying its directors, managers, officers and members under this Agreement or otherwise. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission
to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right
under public policy to indemnify Indemnitee.

 

9. Directors’
and Officers’ Liability Insurance. In the event the Indemnifying Parties shall obtain or maintain one or more director
and officer liability insurance policy or policies: (i) Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee with the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, officers,
and key employees; and (ii) insurance coverage shall be allocated so that claims against Indemnitee shall be satisfied prior to
claims against the Indemnifying Parties.

 

10.
Representations and Warranties. Each of the Parties expressly represents and warrants for itself and himself to the other
that:

  

(a) it
or he has the power, capacity and authority to execute, deliver and perform this Agreement and to consummate the transactions
contemplated hereby and on behalf of all whom might claim through it or him to bind them to the terms and conditions of this Agreement;

 

(b) the
execution and delivery by it or him of this Agreement, and the performance by it or him of its or his obligations hereunder, have
been duly and validly authorized by all action on its or his part;

 

(c) this
Agreement has been duly and validly executed and delivered by it or him and constitutes its or his legal, valid and binding agreement,
enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, moratorium, insolvency,
reorganization, fraudulent conveyance or other laws affecting the enforcement of creditors’ rights generally or by general
equitable principles, including without limitation, those limiting the availability of specific performance, injunctive relief
and other equitable remedies and those providing for equitable defenses;

 

(d) it
or he is not entering into this Agreement in reliance upon any express or implied representation, agreement, or understanding
of any kind by the others, or any person representing (or purporting to represent) any of the other Parties, or any other person,
except as expressly stated in this Agreement and the other Parties shall not directly or indirectly be liable or responsible for
the truth, accuracy, or enforcement of any representations, agreements, or understandings which may now or hereafter exist between
any of the Parties and any other Non-Party person and/or entity; and

 

(e) it
or he has signed the Agreement voluntarily, without any duress or undue influence on the part, or on behalf, of any Party.

 

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11. Confidentiality.
Tanner agrees that Tanner will not, except when required by applicable law or order of a court, at any time, disclose directly
or indirectly to any person or entity, or copy, reproduce or use, any Trade Secrets (as defined below) or Confidential Information
(as defined below) or other information treated as confidential by the Company known, learned or acquired by the Tanner during
the period of the Tanner’s engagement by the Company. For purposes of this Agreement, “Confidential Information”
shall mean any and all Trade Secrets, knowledge, data or know-how of the Company, any of its affiliates or of third parties in
the possession of the Company or any of its affiliates, and any nonpublic technical, training, financial and/or business information
treated as confidential by the Company or any of its affiliates, whether or not such information, knowledge, Trade Secret or data
was conceived, originated, discovered or developed by Consultant hereunder. For purposes of this Agreement, “Trade Secrets”
shall include, without limitation, any formula, concept, pattern, processes, designs, device, software, systems, list of customers,
training manuals, marketing or sales or service plans, business plans, marketing plans, financial information, or compilation
of information which is used in the Company’s business or in the business of any of its affiliates. Any information of the
Company or any of its affiliates which is not readily available to the public shall be considered to be a Trade Secret unless
the Company advises Tanner in writing otherwise. Tanner acknowledges that all of the Confidential Information is proprietary to
the Company and is a special, valuable and unique asset of the business of the Company, and that Tanner’s past, present
and future engagement by the Company has created, creates and will continue to create a relationship of confidence and trust between
the Tanner and the Company with respect to the Confidential Information. Furthermore, Tanner shall immediately notify the Company
of any information which comes to its attention which might indicate that there has been a loss of confidentiality with respect
to the Confidential Information. In such event, Tanner shall take all reasonable steps within its power to limit the scope of
such loss.

 

12.
Return of the Company’s Proprietary Materials. Tanner agrees to deliver promptly to the Company within three business
days of the Effective Date, all documents, records, artwork, designs, data, drawings, flowcharts, listings, models, sketches,
apparatus, notebooks, disks, notes, copies and similar repositories of Confidential Information and any other documents of a confidential
nature belonging to the Company, including all copies, summaries, records, descriptions, modifications, drawings or adaptations
of such materials which Tanner may then possess or have under its control.

 

13. Miscellaneous
Provisions

 

(a) Future
Suits. If any Party hereafter commences any action or proceeding against the other based upon any of the claims released by
this Agreement, the provisions of this Agreement shall be deemed breached and such non-breaching Party shall be entitled to recover
attorneys’ fees and other costs of suit sustained by him, her or it due to such action or proceeding and shall be indemnified
by the other for such fees and costs. This Agreement may be pleaded by such non-breaching Party as a defense, counterclaim or
cross-claim in any such action or proceeding.

 

(b) No
Disparagement. Each of the Parties agrees that it shall not knowingly and intentionally make disparaging and damaging comments
about the other, including its officers, managers, directors, employees, investors, shareholders, members, administrators, affiliates,
divisions, subsidiaries and predecessor and successor corporations, as applicable.

 

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(c) Survival.
All representations, warranties and covenants of the Parties shall survive the execution of this Agreement.

 

(d) No
Waiver. This Agreement (including all exhibits thereto) may not be changed, waived, discharged, or terminated orally or in
writing, except by a writing signed by the Parties and the observance of any such term may be waived (either generally or in a
particular instance either retroactively or prospectively) by a writing signed by the Party against whom such waiver is to be
asserted.

 

(e) No
Precedential Value. The settlement reflected in this Agreement shall be without precedential value. It shall not be used as
evidence, or in any other manner, in any court or other dispute resolution proceeding, to create, prove, or interpret the obligations
of the Parties to each other or to any other person or entity except for those already stipulated in this Agreement.

 

(f) Further
Assurances. Each Party agrees that it will, from time to time after the date of this Agreement, execute and deliver such other
certificates, documents and instruments and take such other action as may be reasonably requested by the other Party to carry
out the actions and transactions contemplated by this Agreement.

 

(g) Entire
Agreement. This Agreement constitutes the entire agreement by and among the Parties, and any prior or contemporaneous agreements,
understandings, promises, representations, warranties and covenants, whether written or oral, or whether expressed, implied or
apparent are hereby deemed merged into and made a part of this Agreement. The terms of this Agreement are contractual and not
merely a recital.

 

(h) Successors
and Assigns. This Agreement shall bind, and inure to the benefit of the directors, officers, shareholders, employees, agents,
partners, representatives, attorneys, parent and affiliated corporations, subsidiaries, divisions, insurers and reinsurers, joint
venturers, predecessors, successors, beneficiaries, grantees, vendees, transferees, assigns, heirs, executors, administrators,
trustees, and estates of each Party, as applicable.

 

(i) Expenses;
Taxes. Each Party shall bear its own costs and expenses relating to the transactions contemplated in this Agreement including,
without limitation, costs and expenses of its respective counsels as well as taxes levied on each part as a result of the execution
and performance of this Agreement.

 

(j) Counterparts.
This Agreement may be executed in any number of counterparts by the Parties hereto, each of which shall constitute an original
but all together shall constitute but one and the same instrument. Confirmation of execution by telecopy or telefax of a facsimile
signature page shall be binding upon that Party so confirming.

 

(k) No
Other Contracts. There are no other contracts, instruments, documents, agreements, understandings, facts, or rights of any
person which could alter the literal meaning or effect of this Agreement.

 

(l) No
Other Conditions. There are no conditions precedent or subsequent to the obligations of or release or waivers by the Parties,
except as expressly stated in this Agreement.

 

(m) Governing
Law. This Agreement shall be construed in accordance with the laws of the State of California without regard to conflict of
laws principles. If any action is filed to enforce or interpret any of the terms or provisions of this Agreement or any of the
other documents executed in connection with this Agreement, or otherwise, the Parties agree that the appropriate venue shall be
a state or federal court of competent jurisdiction located in Los Angeles County, State of California.

 

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(n) Construction.
This Agreement has been negotiated at arm’s length and between and among persons or entities sophisticated and knowledgeable
in the matters dealt with in this Agreement. In addition, this Agreement was drafted by experienced and knowledgeable legal counsel
for each of the Parties. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purposes of
the Parties and this Agreement.

 

(o) Notices.
All notices, demands, consents, approvals, requests and other communications required or permitted hereby shall be in writing
and shall be deemed to have been duly and sufficiently given only if (a) personally delivered with proof of delivery thereof (any
notice or communication so delivered being deemed to have been received at the time so delivered), or (b) sent by Federal Express
(or other similar overnight courier) (any notice or communication so delivered being deemed to have been received only when delivered),
(c) sent by telecopier or facsimile (any notice or communication so delivered being deemed to have been received if a copy is
also delivered by one of the other means of delivery and shall be deemed to have been received (i) on the business day so sent,
if so sent prior to 4:00 p.m. (based upon the recipient’s time) of the business day so sent, and (ii) on the business day
following the day so sent, if so sent on a non-business day or on or after 4:00 p.m. (based upon the recipient’s time) of
the business day so sent (unless actually received by the addressee on the day so sent)), or (d) sent by United States registered
or certified mail, postage prepaid, at a post office regularly maintained by the United States Postal Service (any notice or communication
so sent being deemed to have been received only when delivered), in any such case addressed to the respective Parties as follows:

 

	If
                                         to Tanner:

        C/o
        The Convenience Group

        P.O.
        Box 5883

        Vancouver,
        WA. 98668

        Facsimile:
        360-892-3293
	 	 
	 	 	
	If
    to the Company:	 	With
    copy to (which copy shall not constitute notice thereof):
	DigiPath,
    Inc.	 	
	

        6450
        Cameron Street, Suite 113

        Las
        Vegas, Nevada 89118

        Attn:
        President

        Facsimile:
        702-446-2769
	 	Manatt,
                                         Phelps & Phillips, LLP

        Park
        Tower

        695
        Town Center Drive, 14th Floor

        Costa
        Mesa, California 92626

        Facsimile:
        714-371-2550

 

or
to such other address or party as the other Party may have furnished to the other in writing in accordance herewith, except that
notices of change of address or addresses shall only be effective upon receipt.

 

(p) Voluntary
Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part or
behalf of the Parties hereto, with the full intent of releasing all of the Released Matters. Each Party acknowledge for
itself that: (a) he or it has read this Agreement; (b) he or it has been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of his or its own choice or that he or it has voluntarily declined to seek such
counsel; (c) he or it understands the terms and consequences of this Agreement and of the release it contains; and (d) he or
it is fully aware of the legal and binding effect of this Agreement.

 

[Signature
Page Follows]

 

    	10

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the dates first set forth above.

 

	DigiPath, Inc.,	 	 
	a Nevada corporation	 	 
	 	 	 
	By:	/s/
    Todd Denkin 	 	/s/
    Joe Tanner
	 	Todd
    Denkin, Director	 	Joe
    TannerExhibit 4.2

 

CannaVEST
Corp.

Stock
Option Grant Notice

Amended and Restated 2013 Equity Incentive Plan

 

FOR GOOD AND VALUABLE CONSIDERATION,
CannaVEST Corp. (the “Company”), hereby grants to the Optionee named below, a stock option (the “Option”)
to purchase any part or all of the specified number of shares of its Common Stock (“Option Shares”),
upon the terms and subject to the conditions set forth in this Stock Option Grant Notice (the “Grant Notice”),
at the specified purchase price per share without commission or other charge. The Option is granted pursuant to the Company’s
Amended and Restated 2013 Equity Incentive Plan (the “Plan”) and the Stock Option Agreement (the “Option
Agreement”), promulgated under the Plan and in effect as of the date of this Grant Notice.

 

	 	Optionee:	

	 	Date of Grant:	

	 	Vesting Commencement Date:	

	 	Number of Option Shares :	

	 	Exercise Price (Per Share):	

	 	Total Exercise Price:	

	 	Expiration Date:	Ten years
        after Date of Grant

 

	Type of Grant:	 ̈ Incentive
Stock Option1 	 ̈ Nonstatutory
Stock Option
	 	 	 
	Exercise Schedule:	 ̈ Same
as Vesting Schedule	 ̈ Early Exercise Permitted

 

 

Vesting Schedule: Except as otherwise
provided in the Option Agreement, the number of Option Shares that are vested (disregarding any resulting fractional share) as
of any date shall be determined as follows: (i) no Option Shares will be vested prior to the Vesting Commencement Date; (ii) twenty-five
percent (25%) of the Option Shares will be vested upon the one (1) year anniversary of the Vesting Commencement Date, provided,
however, that there has not been a Termination of Service as of such date; and (iii) the balance of the Option Shares will
be vested in a series of thirty-six (36) successive equal monthly installments measured from the first anniversary of the Vesting
Commencement Date, provided, however, that there has not been a Termination of Service as of each such date. In no event
will the Option become exercisable for any additional Option Shares after a Termination of Service.

 

	Payment: 	By one or a combination of the following
items (described in the Plan):
	 	 	 
		ý	By cash or check
	 	 	 
	 	 ̈	By
net exercise, if the Company has established procedures for net exercise

 

Additional Terms/Acknowledgements:
The undersigned Optionee acknowledges receipt of, and understands and agrees to, this Stock Option Grant Notice, the Option Agreement,
and the Plan.

 

Further, by their signatures below, the
Company and the Optionee agree that the Option is governed by this Grant Notice and by the provisions of the Plan and Option Agreement,
both of which are attached to and made a part of this Grant Notice. Optionee acknowledges receipt of copies of the Plan and the
Option Agreement, represents that the Optionee has read and is familiar with their provisions, and hereby accepts the Option subject
to all of their terms and conditions. Optionee further acknowledges that, as of the Date of Grant, this Grant Notice, the Option
Agreement and the Plan set forth the entire understanding between Optionee and the Company regarding the acquisition of stock in
the Company and supersede all prior oral and written agreements on that subject, with the exception of options previously granted
under the Plan.

 

 

 

1
If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first exercisable
for more than $100,000 in value (measured by exercise price) in any calendar year. Any excess over $100,000 is a Nonstatutory
Stock Option.

 

    	1

    	 

    

 

 

	CannaVEST Corp.	 	Optionee: [name]
	 	 	 	 	 
	By:	 	 	 	 
	 	[Name, Title]	 	Signature
	 	 	 	 	 
	Date:	 	 	Date:	 

 

 

Attachments: (I) Option
Agreement; (II) Amended and Restated 2013 Equity Incentive Plan; and (III) Notice of Exercise

 

 

    	2

    	 

    

 

 

Attachment I

 

Option
Agreement

 

 

 

 

 

 

    	3

    	 

    

 

Stock
Option Agreement

 

(Incentive
Stock Option or Nonstatutory Stock Option)

 

CANNAVEST
CORP. Amended and Restated 2013 Equity Incentive Plan

 

Effective as of _____________, 2014

 

Pursuant to the Stock
Option Grant Notice (“Grant Notice”) and this Option Agreement (“Option Agreement”), CannaVEST
Corp., a Delaware corporation (the “Company”) has granted to Optionee an option under its Amended and Restated
2013 Equity Incentive Plan (the “Plan”), to purchase the number of shares of the Company’s Common Stock
indicated in Optionee’s Grant Notice, at the exercise price indicated in such Grant Notice. This Option Agreement is incorporated
by reference into and made a part of the Grant Notice. Whenever capitalized terms are used in this Option Agreement, they shall
have the meaning specified (i) in the Plan, (ii) in the relevant Grant Notice, or (iii) below, unless the context clearly indicates
to the contrary.

 

The details of the
Option granted to Optionee are as follows:

 

1.Term of
Option. Subject to the maximum time limitations in Sections 5(b) and 6(a) of the Plan, the term of the Option shall be
the period commencing on the Date of Grant and ending on the Expiration Date (as defined in the Grant Notice), unless terminated
earlier as provided herein or in the Plan.

 

2.Exercise
Price. The Exercise Price of the Option granted hereby shall be as provided in the Grant Notice.

 

3.Exercise
of Option.

 

(a)The Grant
Notice sets forth the rate at which the Option Shares shall become subject to purchase (“vest”) by Optionee.

 

(b)In the
event of a Change in Control of the Company, except as otherwise may be provided in the Plan or Grant Notice, the vesting of the
Option shall not accelerate, and the Option shall terminate if not exercised (to the extent then vested and exercisable)
at or prior to such Change in Control.

 

(c)Optionee
shall exercise the Option, to the extent exercisable, in whole or in part, by sending written notice to the Company on a Notice
of Exercise in the form attached to the Grant Notice of his or her intention to purchase Option Shares hereunder, together with
a check in the amount of the full purchase price of the Option Shares to be purchased, or such other form of payment as permitted
by the Grant Notice. Except as otherwise consented to by the Company, Optionee shall not exercise the Option at any one time with
respect to less than five percent (5%) of the total Option Shares set forth in the Grant Notice unless Optionee exercises all of
the Option then vested and exercisable.

 

    	4

    	 

    

 

(d)If the
Option is an Incentive Stock Option, by Optionee’s exercise of the Option, Optionee agrees that he or she will notify the
Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon
exercise of the Option that occurs within two (2) years after the date of the Date of Grant or within one (1) year after such shares
of Common Stock are transferred upon exercise of the Option.

 

(e)Optionee
agrees to complete and execute any additional documents which the Company reasonably requests that Optionee complete in order to
comply with applicable federal, state and local securities laws, rules and regulations.

 

(f)Subject
to the Company’s compliance with all applicable laws, rules and regulations relating to the issuance of such Option Shares
and Optionee’s compliance with all the terms and conditions of the Grant Notice, this Option Agreement, and the Plan, the
Company shall promptly deliver the Option Shares to Optionee.

 

(g)Except
as otherwise provided herein or in the Plan, the Option may be exercised during the lifetime of Optionee only by Optionee.

 

(h)In the
event that Optionee is an Employee eligible for overtime compensation under the Fair Labor Standards Act of 1938, as amended (i.e.,
a “Non-Exempt Employee”), Optionee may not exercise his or her Option until the later of (i) the date that he
or she shall have completed at least six (6) months of service to the Company measured from the Date of Grant specified in Optionee’s
Grant Notice, or (ii) the date set forth in the Grant Notice for when the Option is first exercisable.

 

4.Exercise
Prior to Vesting (“Early Exercise”). If expressly permitted by the Grant Notice and subject to the provisions
of this Option Agreement, Optionee may, at any time that is both (i) prior to a Termination of Service; and (ii) prior to the Expiration
Date, elect to exercise all or part of the Option, including the nonvested portion of the Option; provided, however, that:

 

(a)a partial
exercise of the Option shall be deemed to cover first any vested Option Shares and then the earliest vesting installment(s) of
unvested Option Shares;

 

(b)any Option
Shares so purchased from installments which have not vested as of the date of exercise shall be subject to a purchase option in
favor of the Company, pursuant to an Early Exercise Stock Purchase Agreement in form satisfactory to the Company;

 

(c)Optionee
shall enter into the Early Exercise Stock Purchase Agreement with a vesting schedule that will result in the same vesting as if
no early exercise had occurred; and

 

(d)as provided
in the Plan, if the Option is an Incentive Stock Option, to the extent that the aggregate Fair Market Value (determined at the
time of grant) of Common Stock with respect to which the Option plus all other Incentive Stock Options held by Optionee are exercisable
for the first time during any calendar year (under all plans of the Company and its Affiliates) exceeds One Hundred Thousand Dollars
($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be
treated as Nonstatutory Stock Options.

 

    	5

    	 

    

 

5.Option
Not Transferable. The Option granted hereunder shall not be transferable in any manner other than as provided in Section
6(d) of the Plan. More particularly (but without limiting the foregoing), the Option may not be assigned, transferred (except as
expressly provided in the Plan), pledged or hypothecated in any way, shall not be assignable by operation of law and shall not
be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition
of the Option contrary to the provisions hereof, or the levy of any execution, attachment or similar process upon the Option, shall
be null and void and without effect.

 

6.Termination
of Option.

 

(a)To the
extent not previously exercised, the Option shall terminate on the Expiration Date; provided, however, that except as otherwise
provided in this Section 6, the Option may not be exercised more than sixty (60) days after the Termination of Service of Optionee
for any reason (other than for Cause, as defined below, or upon Optionee’s death or Disability). Within such sixty (60)-day
period, except as may otherwise be specifically provided in this Option Agreement or any other agreement between Optionee and the
Company which has been approved by the Board, Optionee may exercise the Option only to the extent the same was exercisable on the
date of such termination and said right to exercise shall terminate at the end of such period.

 

(b)In the
event of the Termination of Service of Optionee as a result of Optionee’s Disability, the Option shall be exercisable for
a period of six (6) months from the date of such termination, but in no event later than the Expiration Date and only to the extent
that the Option was exercisable on the date of such termination.

 

(c)In the
event of the Termination of Service of Optionee as a result of Optionee’s death, the Option shall be exercisable by Optionee’s
estate (or by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution) for
a period of twelve (12) months from the date of such termination, but in no event later than the Expiration Date and only to the
extent that Optionee was entitled to exercise the Option on the date of death.

 

(d)In the
event of the Termination of Service of Optionee for Cause (as defined below), unless otherwise determined by the Board, (A) the
Option shall expire as of the date of the first occurrence giving rise to such termination or upon the Expiration Date, whichever
is earlier; (B) Optionee shall have no rights with respect to any unexercised portion of the Option; and (C) any Option Shares
issued in respect of the exercise of the Option on or after the date of the first act and/or event constituting Cause shall have
occurred shall be deemed to have been issued in respect of an expired option, and shall thereupon be deemed null and void ab
initio, and Optionee shall have no claims to, or rights in, any such Option Shares. “Cause” means with respect
to Optionee, the occurrence of any of the following events, as reasonably determined by the Board in each case: (i) Optionee’s
commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any
state thereof; (ii) Optionee’s commission, or attempted commission, of, or participation in, a fraud or act of dishonesty
against the Company or any Affiliate, or any of their respective employees, officers or directors; (iii) Optionee’s intentional,
material violation of any contract or agreement between the Optionee and the Company or any Affiliate or of any statutory duty
owed to the Company or any Affiliate; (iv) Optionee’s unauthorized use or disclosure of the Company’s or an Affiliate’s
material confidential information or trade secrets; (v) Optionee’s gross misconduct in connection with Optionee’s service
to the Company or an Affiliate; or (vi) Optionee’s failure to promptly return all documents and other tangible items belonging
to the Company or its Affiliates in the Participant’s possession or control, including all complete or partial copies, recordings,
abstracts, notes or reproductions of any kind made from or about such documents or information contained therein, upon a Termination
of Service for any reason. “Cause” shall not require that a civil judgment or criminal conviction have been entered
against, or guilty plea shall have been made by, Optionee regarding any of the matters referred to in clauses (i) through (vi).
Accordingly, the Board shall be entitled to determine “Cause” based on the its good faith belief. If the Optionee is
criminally charged with a felony or similar offense, that shall be a sufficient, but not a necessary, basis for such a belief.
Unless otherwise specifically provided in the Grant Notice, the foregoing definition of “Cause” shall apply for all
purposes relating to the Option, notwithstanding any employment or other agreement by and between Optionee and the Company or any
Affiliate thereof that defines a termination on account of “Cause” (or a term having similar meaning).

 

    	6

    	 

    

 

(e)Notwithstanding
the foregoing, the Option is subject to earlier termination upon a Change in Control, as provided in Section 3(b) above and in
Section 11 of the Plan, or upon the dissolution of the Company. If the Option will terminate in connection with a Change in Control,
the Company shall provide written notice to Optionee of a proposed transaction constituting a Change in Control, not less than
ten (10) days prior to the anticipated effective date of the proposed transaction.

 

(f)Notwithstanding
anything herein to the contrary, no portion of any Option which is not exercisable by Optionee upon the Termination of Service
of such Optionee shall thereafter become exercisable, regardless of the reason for such termination, except as may otherwise be
specifically provided in this Option Agreement or any other agreement between Optionee and the Company which has been approved
by the Board.

 

7.No Right
to Continued Service. The Option does not confer upon Optionee any right to continue as an Employee or Director of, or
Consultant to, the Company or an Affiliate, nor does it limit in any way the right of the Company or an Affiliate to terminate
Optionee’s employment or other relationship with the Company or an Affiliate, at any time, with or without Cause.

 

8.Notice
of Tax Election. If Optionee makes any tax election relating to the treatment of the Option Shares under the Internal Revenue
Code of 1986, as amended, Optionee shall promptly notify the Company of such election.

 

9.Acknowledgments
of Optionee. Optionee acknowledges and agrees that:

 

(a)Although
the Company has made a good faith attempt to qualify the Option as an incentive stock option within the meaning of Sections 421,
422 and 424 of the Code (if the Grant Notice provides that the Option is an Incentive Stock Option), the Company does not warrant
that the Option granted herein constitutes an “incentive stock option” within the meaning of such sections, or that
the transfer of Option Shares will be treated for federal income tax purposes as specified in Section 421 of the Code.

 

    	7

    	 

    

 

(b)Optionee
shall notify the Company in writing within fifteen (15) days of each disposition (including a sale, exchange, gift or a transfer
of legal title) of the Option Shares made within two years after the issuance of such Option Shares.

 

(c)If the
Grant Notice provides that the Option is an Incentive Stock Option, Optionee understands that if, among other things, he or she
disposes of any Option Shares granted within two years of the granting of the Option to him or her or within one year of the issuance
of such shares to him or her, then such Option Shares will not qualify for the beneficial treatment which Optionee might otherwise
receive under Sections 421 and 422 of the Code.

 

(d)Optionee
and his or her transferees shall have no rights as a shareholder with respect to any Option Shares until the date of the issuance
of a stock certificate evidencing such Option Shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether
in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock
certificate is issued, except as provided in Section 10 of the Plan.

 

(e)Certificates
representing Option Shares acquired pursuant to the exercise of Incentive Stock Options shall be imprinted with the following legend:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE
WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER UPON EXERCISE OF AN INCENTIVE STOCK OPTION AS DEFINED IN SECTION 422 OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (“ISO”). IN ORDER TO OBTAIN THE PREFERENTIAL TAX TREATMENT AFFORDED TO
ISOs, THE SHARES SHOULD NOT BE TRANSFERRED PRIOR TO THE LATER OF (A) TWO YEARS AFTER THE DATE OF GRANT OF SUCH ISO, OR (B) ONE
YEAR AFTER THE DATE OF EXERCISE OF SUCH ISO. SHOULD THE REGISTERED HOLDER ELECT TO TRANSFER ANY OF THE SHARES PRIOR TO SUCH DATE
AND FOREGO ISO TAX TREATMENT, THE TRANSFER AGENT FOR THE SHARES SHALL NOTIFY THE CORPORATION IMMEDIATELY. THE REGISTERED HOLDER
SHALL HOLD ALL SHARES PURCHASED UNDER THE INCENTIVE STOCK OPTION IN THE REGISTERED HOLDER'S NAME (AND NOT IN THE NAME OF ANY NOMINEE)
PRIOR TO THIS DATE OR UNTIL TRANSFERRED AS DESCRIBED ABOVE.

 

    	8

    	 

    

 

10.Withholding
Obligations. Whenever Option Shares are to be issued under the Option Agreement, the Company shall have the right to require
Optionee to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to
issuance and/or delivery of any certificate or certificates for such Option Shares.

 

11.No Obligation
to Notify. The Company shall have no duty or obligation to Optionee to advise Optionee as to the time or manner of exercising
the Option. Furthermore, except as specifically set forth herein or in the Plan, the Company shall have no duty or obligation to
warn or otherwise advise Optionee of a pending termination or expiration of the Option or a possible period in which the Option
may not be exercised. The Company has no duty or obligation to minimize the tax consequences of the Option granted to Optionee.

 

12.Miscellaneous.

 

(a)This
Option Agreement shall bind and inure to the benefit of the parties’ heirs, legal representatives, successors and permitted
assigns.

 

(b)This
Option Agreement, the Grant Notice and the Plan, constitute the entire agreement between the parties pertaining to the subject
matter contained herein and they supersede all prior and contemporaneous agreements, representations and understandings of the
parties. No supplement, modification or amendment of this Option Agreement shall be binding unless executed in writing by all of
the parties. No waiver of any of the provisions of this Option Agreement shall be deemed or shall constitute a waiver of any other
provisions, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed
in writing by the party making the waiver. In the event there exists any conflict or discrepancy between any of the terms in the
Plan and this Option Agreement, the terms of the Plan shall be controlling. A copy of the Plan has been delivered to Optionee and
also may be inspected by Optionee at the principal office of the Company.

 

(c)Should
any portion of the Plan, the Grant Notice or this Option Agreement be declared invalid and unenforceable, then such portion shall
be deemed to be severable from this Option Agreement and shall not affect the remainder hereof.

 

(d)All notices
required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party
to be notified; (ii) three (3) days after having been sent by registered or certified mail, return receipt requested, postage prepaid;
or (iii) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification
of receipt. All communications shall be sent to the Company at its principal executive office, and to Optionee at the address set
forth in the Company’s records, or at such other address as the Company or Optionee may designate by ten (10) days advance
written notice to the other party hereto.

 

(e)This
Option Agreement shall be construed according to the laws of the State of Delaware.

 

 

    	9

    	 

    

 

 

Attachment II

 

Amended
and Restated 2013 Equity Incentive Plan

 

 

 

 

 

 

 

 

 

 

    	10

    	 

    

 

 

Attachment III

 

Notice
Of Exercise

 

CannaVEST Corp.

2688 South Rainbow Blvd.

Suite B

Las Vegas, Nevada 89146

 

Date of Exercise: _______________

 

Ladies and Gentlemen:

 

This constitutes notice
under my stock option that I elect to purchase the number of shares for the price set forth below.

 

	 	Type of option (check one):	Incentive   ̈	Nonstatutory   ̈
	 	Stock option dated:	_______________	_______________
	 	Number of shares as to which option is

exercised:	_______________	_______________
	 	Certificates to be issued in name of:	_______________	_______________
	 	Total exercise price:	$______________	$______________
	 	Cash or check payment delivered

herewith:	$______________	$______________

 

By this exercise, I
agree (i) to provide such additional documents as you may require pursuant to the terms of the Amended and Restated 2013 Equity
Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation,
if any, relating to the exercise of this option, and (iii) if this exercise relates to an incentive stock option, to notify
you in writing within fifteen (15) days after the date of any disposition of any of the shares of Common Stock (the “Shares”)
issued upon exercise of this option that occurs within two (2) years after the date of grant of this option or within one (1) year
after such shares of Common Stock are issued upon exercise of this option.

 

I acknowledge that
all certificates representing any of the Shares subject to the provisions of the Option shall have endorsed thereon appropriate
legends reflecting restrictions pursuant to the Option Agreement, the Company’s Certificate of Incorporation, Bylaws and/or
applicable securities laws.

 

Very truly yours,

 

 

___________________________________________

 

    	11

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