Document:

Exhibit 10.2

 

MFA FINANCIAL, INC.

EQUITY COMPENSATION PLAN

 

PHANTOM SHARE AWARD AGREEMENT

(PERFORMANCE BASED VESTING)

 

AGREEMENT, dated as of the      day of           , 20   (the “Grant Date”), by and between MFA Financial, Inc., a Maryland corporation (the “Company”), and [              ] (the “Grantee”).

 

WHEREAS, the Company maintains the MFA Financial, Inc. Equity Compensation Plan, as it may be amended from time to time (the “Plan”) (capitalized terms used but not defined herein shall have the respective meanings ascribed thereto by the Plan);

 

WHEREAS, the Grantee, as an employee of the Company, is an Eligible Person; and

 

WHEREAS, the Committee has determined that it is in the best interests of the Company and its stockholders to grant Phantom Shares to the Grantee subject to the terms and conditions set forth below.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                      Grant of Phantom Shares.

 

The target amount of Phantom Shares granted pursuant to this Agreement is       Phantom Shares (the “Target Amount”); provided that the Grantee has the opportunity to earn up to         [2X] Phantom Shares (the “Maximum Amount”) based upon achievement of performance goals and the terms and conditions described herein.  As further described herein, 50% of the Target Amount (the “Absolute TSR Target Shares”) will vest based on the Company’s total shareholder return for a three-year period, and 50% of the Target Amount (the “Relative TSR Target Shares”) will vest based on the Company’s total shareholder return compared to the total shareholder return of the peer group companies listed on Appendix 1 to Exhibit A attached hereto (the “Peer Group Companies”) for a three-year period.

 

The Phantom Shares are subject to the terms and conditions of this Agreement and are also subject to the provisions of the Plan.  The Plan is hereby incorporated by reference as though set forth herein in its entirety.

 

2.                                      Vesting.

 

(a)                                 Subject to Section 2(b), the number of Phantom Shares that shall vest on December 31, 20   (the “Vesting Date”), if any, shall be calculated in accordance with Exhibit A attached hereto based upon the achievement of the performance goals set forth on Exhibit A (the “Performance Goals”) during the period beginning on January 1, 20   and ending on December 31, 20   (the “TSR Performance Period”); provided that, to the extent that any fractional Shares result, the number of Phantom Shares that vest on the Vesting Date shall be rounded down to the nearest whole share.  Any Phantom Shares that do not vest on the Vesting Date shall be forfeited.

 

 

(b)                                 In the event that, prior to the Vesting Date, the Grantee experiences a Termination of Service on account of the Grantee’s death or Disability, then the number of Phantom Shares that shall vest, if any, on the Vesting Date shall be the number of Phantom Shares that would have vested on the Vesting Date based upon achievement of the Performance Goals if the Grantee remained employed through the Vesting Date.

 

(c)                                  Except as otherwise provide in Section 2(b), in the event the Grantee experiences a Termination of Service for any reason prior to the Vesting Date, the Phantom Shares shall, with no further action, be forfeited and cease to be outstanding as of the Grantee’s Termination of Service.

 

(d)                                 Any Phantom Shares that do not vest as of the Vesting Date shall, with no further action, be forfeited and cease to be outstanding as of the Vesting Date.

 

3.                                      Dividend Equivalents.

 

(a)                                 With respect to each outstanding Phantom Share that vests in accordance with Section 2 and Exhibit A, the Grantee shall have the right to receive an amount equal to the cash dividend distributions declared in the ordinary course on a share (“Share”) of Common Stock of the Company (each, a “Dividend Payment”) during the TSR Performance Period as set forth in this Section 3.

 

(b)                                 Any such Dividend Payments shall only be payable with respect to Phantom Shares that vest and shall be paid in the form of additional Shares at the time Phantom Shares are settled pursuant to Section 4.  At such time, the Grantee shall receive additional Shares with an aggregate value (determined as described below) equal to the aggregate value of the Dividend Payments declared during the TSR Performance Period with respect to the number of Shares equal to the number of vested Phantom Shares.

 

(c)                                  The number of additional Shares to be distributed pursuant to sub-section (b) shall be calculated as follows:  (i) the accumulated Dividend Payments declared during the TSR Performance Period, multiplied by (ii) the number of Shares to be distributed with respect to the vested Phantom Shares, divided by (iii) the per Share stock price of Common Stock on December 31, 20  , rounded down to the nearest whole share.

 

4.                                      Settlement.

 

Each vested and outstanding Phantom Share shall be settled in one Share within 30 days following the date on which such Phantom Share vests as set forth in Section 2 above (the “Settlement Date”), subject to delay to the extent required by Section 409A of the Code as set forth in Section 6(o) below.

 

5.                                      Confidentiality, Non-Competition and Non-Solicitation.

 

(a)                                 In consideration for the Grant under this Agreement, during the Grantee’s term of employment and at all times thereafter, the Grantee hereby agrees to maintain the confidentiality of all confidential or proprietary information of the Company and any of its subsidiaries or affiliates, if any, or of any other person or entity with which the Grantee is involved as a direct or

 

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indirect result of the Grantee’s employment by, or performance of consulting or other services (including, without limitation, as a director, officer, advisor, agent, consultant or other independent contractor) for, the Company or any of its subsidiaries or affiliates, and, except in furtherance of the business of the Company or as specifically required by law or by court order, the Grantee shall not directly or indirectly disclose any such information to any person or entity nor shall the Grantee use any such confidential information for any purpose except for the legal benefit of the Company.  This restriction shall apply regardless of whether such information is in written, graphic, recorded, photographic, data or any machine readable form or is orally conveyed to, or memorized by the Grantee.

 

(b)                                 Intentionally omitted.

 

(c)                                  Intentionally omitted.

 

(d)                                 In consideration for the Grant under this Agreement, during the Grantee’s employment with the Company and the one year period immediately following the Grantee’s Termination of Service for any Reason, the Grantee agrees that the Grantee will not, without the prior written consent of the Company, directly or indirectly (individually, or through or on behalf of another entity as owner, partner, agent, employee, consultant, or in any other capacity), (i) solicit, encourage, or engage in any activity to induce any employee of the Company or its affiliates to terminate employment with the Company or its affiliates, or to become employed by, or to enter into a business relationship with, any other person or entity; or (ii) hire or retain any person who was an employee of the Company or its affiliates within the six month period preceding such action; provided that, (x) this Section 5(d) shall not apply to any administrative employee of the Company or its affiliates or any person who was an administrative employee of the Company or its affiliates and (y) any hiring or solicitation pursuant to a general solicitation conducted by an entity that has hired or agreed to hire the Grantee and that does not directly or indirectly target current or former employees of the Company or its affiliates, or by a headhunter employed by such entity, which in either case does not involve the Grantee, shall not be a violation of this Section 5(d).

 

(e)                                  The Grantee acknowledges, agrees and represents that the type and periods of restrictions imposed in this Section 5 are fair and reasonable, and that such restrictions are intended solely to protect the legitimate interests of the Company, rather than to prevent the Grantee from earning a livelihood.  The Grantee further acknowledges and agrees that the business of the Company is highly competitive and that the Company’s confidential information and proprietary materials have been developed by the Company at significant expense and effort, and that the restrictions contained in this Section 5 are reasonable and necessary to protect the legitimate business interests of the Company. The Grantee represents that: (i) the Grantee is familiar with the covenants set forth in this Section 5, (ii) the Grantee is fully aware of his or her obligations hereunder, including, without limitation, the length of time and scope of these covenants, (iii) the Grantee finds the length of time and scope of these covenants to be reasonable and (iv) the Grantee is receiving valuable and sufficient consideration for the Grantee’s covenant not to solicit.

 

(f)                                   The Grantee acknowledges that each of the covenants in this Section 5 has a unique, very substantial and immeasurable value to the Company, that the Grantee has sufficient assets and skills to provide a livelihood while such covenants remain in force and that, as a result of the foregoing, in the event that the Grantee breaches such covenants, monetary damages would be an

 

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insufficient remedy for the Company and equitable enforcement of the covenants would be proper.  The Grantee therefore agrees that the Company, in addition to any other remedies available to it, will be entitled to preliminary and permanent injunctive relief against any breach by the Grantee of any of the covenants in this Section 5, without the necessity of showing actual monetary damages or the posting of a bond or other security.  The Grantee also agrees that, in addition to any other remedies available to the Company and notwithstanding any provision of this Agreement to the contrary, in the event the Grantee breaches in any material respect any of his obligations under this Section 5, the Phantom Shares granted under this Agreement (whether vested or unvested) may be immediately forfeited, and the Company may require that the Grantee repay any Shares delivered or other amounts paid (each on an after-tax basis) with respect to the Phantom Shares granted hereunder.

 

(g)                                  The Grantee and the Company further agree that, in the event that any provision of this Section 5 is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, that provision will be deemed to be modified to permit its enforcement to the maximum extent permitted by law.

 

(h)                                 The provisions of this Section 5 shall not affect the Company’s ability to enforce the provisions of any other agreement in effect between the Company and the Grantee, including without limitation, the covenants contained in any offer letter or employment agreement.

 

(i)                                     Nothing in this Agreement, including the obligations set forth in this Section 5, restricts or prohibits the Grantee from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. The Grantee does not need the prior authorization of the Company to engage in such communications with the Regulators, respond to such inquiries from the Regulators, provide confidential information or documents to the Regulators, or make any such reports or disclosures to the Regulators.  The Grantee is not required to notify the Company that he has engaged in such communications with the Regulators.

 

(j)                                    The Company hereby notifies the Grantee that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.  Nothing in this Agreement is intended to limit any rights under such federal law.

 

6.                                      Miscellaneous.

 

(a)                                 The value of a Phantom Share may decrease depending upon the Fair Market Value of a Share from time to time. Neither the Company nor the Committee, nor any other party associated with the Plan, shall be held liable for any decrease in the value of the Phantom Shares. If the

 

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value of such Phantom Shares decrease, there will be a decrease in the underlying value of what is distributed to the Grantee under the Plan and this Agreement.

 

(b)                                 With respect to this Agreement, (i) the Phantom Shares are bookkeeping entries and the Grantee shall not have any rights of a shareholder with respect to Common Stock unless and until the Phantom Shares vest and are settled by the issuance of such Shares of Common Stock, (ii) the obligations of the Company under the Plan are unsecured and constitute a commitment by the Company to make benefit payments in the future, (iii) to the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of any general unsecured creditor of the Company, (iv) all payments under the Plan (including distributions of Shares) shall be paid from the general funds of the Company and (v) no special or separate fund shall be established or other segregation of assets made to assure such payments (except that the Company may in its discretion establish a bookkeeping reserve to meet its obligations under the Plan). The award of Phantom Shares is intended to be an arrangement that is unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended.

 

(c)                                  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(d)                                 The Committee may construe and interpret this Agreement and establish, amend and revoke such rules, regulations and procedures for the administration of this Agreement as it deems appropriate. In this connection, the Committee may correct any defect or supply any omission, or reconcile any inconsistency in this Agreement or in any related agreements, in the manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. All decisions and determinations by the Committee in the exercise of this power shall be final and binding upon the Company and the Grantee.

 

(e)                                  All notices hereunder shall be in writing and, if to the Company, shall be delivered to the Board or mailed to its principal office, addressed to the attention of the Committee and, if to the Grantee, shall be delivered personally or mailed to the Grantee at the address appearing in the records of the Company. Such addresses may be changed at any time by written notice to the other party given in accordance with this Section 6(e).

 

(f)                                   The failure of the Grantee or the Company to insist upon strict compliance with any provision of this Agreement or the Plan, or to assert any right the Grantee or the Company, respectively, may have under this Agreement or the Plan, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement or the Plan.

 

(g)                                  Nothing in this Agreement shall (i) confer on the Grantee any right to continue in the service of the Company or its Subsidiaries or otherwise confer any additional rights or benefits upon the Grantee with respect to the Grantee’s employment with the Company or (ii) interfere in any way with the right of the Company or its Subsidiaries and its stockholders to terminate the Grantee’s service at any time.

 

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(h)                                 If any change is made to the outstanding Common Stock or the capital structure of the Company, the Phantom Shares shall be adjusted in accordance with the Plan.

 

(i)                                     The Phantom Shares and the rights relating thereto shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment, levy, execution, or other legal or equitable process, either voluntary or involuntary; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish, or levy or execute on the Phantom Shares and the rights relating thereto shall be void.

 

(j)                                    The Company may assign any of its rights under this Agreement.  This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee’s beneficiaries, executors, administrators and the person(s) to whom the Phantom Shares may be transferred by will or the laws of descent or distribution.

 

(k)                                 The Plan is discretionary and may be amended, suspended or discontinued by the Company at any time, in its discretion. The grant of the Phantom Shares in this Agreement does not create any contractual right or other right to receive any Phantom Shares or other Grants in the future. Future Grants, if any, will be at the sole discretion of the Company. Any amendment, suspension or discontinuation of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee’s employment with the Company.

 

(l)                                     The issuance and transfer of Shares shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Shares may be listed.  No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.

 

(m)                             The Grantee shall be required to pay to the Company or make arrangements satisfactory to the Company regarding payment of any federal, state or local taxes of any kind that are required by law to be withheld with respect to the Phantom Shares.  Except as may be otherwise permitted by the Committee, to satisfy such obligation the Company shall withhold a number of Shares to be issued pursuant to this Agreement with an aggregate Fair Market Value as of the date withholding is effected that would satisfy the withholding amount due; provided, however, that no Shares shall be withheld with an aggregate value exceeding the minimum amount of tax required to be withheld by law or such higher amount that does not result in adverse accounting treatment for the Company, as approved in advance by the Committee.  Notwithstanding anything contained in the Plan or this Agreement to the contrary, the Grantee’s satisfaction of any tax withholding requirements imposed by the Committee shall be a condition precedent to the Company’s obligation as may otherwise be provided hereunder to provide Shares to the Grantee, and the failure of the Grantee to satisfy such requirements with respect to this Grant shall cause this Grant to be forfeited.

 

(n)                                 The Phantom Shares shall be subject to any applicable clawback policy implemented by the Board from time to time.

 

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(o)                                 The Phantom Shares are intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code and administered in accordance with Section 28 of the Plan.  To the extent any payment pursuant to this Agreement is required to be delayed six months pursuant to the special rules of Section 409A of the Code related to “specified employees,” each affected payment shall be delayed until six months after the Grantee’s Termination of Service with the first such payment being a lump sum equal to the aggregate payments the Grantee would have received during such six-month period if no payment delay had been imposed. Any payments or distributions delayed in accordance with the prior sentence shall be paid to the Grantee on the first day of the seventh month following the Grantee’s Termination of Service (or the Grantee’s death, if earlier).  Each payment hereunder shall be treated as a separate payment for purposes of Section 409A of the Code.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code.

 

(p)                                 This Agreement, including Exhibit A and Appendix 1 to Exhibit A, contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

 

IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the day and year first above written.

 

	
 
    	
MFA   FINANCIAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

The Grantee hereby agrees and acknowledges that the Grantee will be bound by the terms and conditions of this Agreement and the Plan and that all determinations by the Committee will be final and binding on all persons.

 

	
 
    	
 
    
	
 
    	
Name:
    

 

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Exhibit A

 

This Exhibit A sets forth the Performance Goals applicable to the Phantom Shares granted pursuant to the Agreement to which this Exhibit A is attached.  Unless otherwise specified in this Exhibit A, all defined terms shall have the meanings set forth in the Agreement.

 

The Phantom Shares will vest based on the Company’s total shareholder return for the TSR Performance Period.  As further described below, the Absolute TSR Shares will vest based on the Company’s average total shareholder return for the Performance Period, and the Relative TSR Shares will vest based on the Company’s total shareholder return compared to the total shareholder return of the Peer Group Companies for the Performance Period.

 

For purposes of this Exhibit A, TSR for the TSR Performance Period shall be calculated as follows:

 

·                  “TSR” is equal to (x) the excess of the Average Final Price over the Average Initial Price, plus Dividends Paid on a share of common stock in respect of the TSR Performance Period, divided by (y) the Average Initial Price.

 

·                  The “Average Initial Price” is equal to the average closing daily price of a share of common stock during the first 20 trading days in the TSR Performance Period.

 

·                  The “Average Final Price” is equal to the average closing daily price of a share of common stock during the last 20 trading days in the TSR Performance Period.

 

·                  The “Dividends Paid” shall equal the cumulative dividends (including any stock dividends) paid per share of common stock in respect of the TSR Performance Period.  For this purpose, dividends declared, but not yet paid, on a share within the 45 day period preceding the Vesting Date will be counted as Dividends Paid.

 

Absolute TSR Shares

 

For purposes of the Absolute TSR Shares, the “Average TSR” for the Performance Period is the TSR, divided by 3, and the “Target TSR” is an 8% per annum simple cumulative return over the TSR Performance Period.

 

The portion of the Absolute TSR Target Shares that will vest on the Vesting Date shall be determined by comparing the Average TSR of the Company to the Target TSR and may range from zero up to a maximum vesting of 200% of the Absolute TSR Target Shares.

 

The number of Absolute TSR Shares that will vest on the Vesting Date shall equal the product of (i) the Absolute TSR Target Shares and (ii) the sum of (A) one (1) plus (B) a fraction (which fraction can be a negative number), the numerator of which is the Company’s Average TSR less Target TSR and the denominator of which is eight (8).  For purposes of the preceding sentence, in the event that the Company’s Average TSR is (x) less than zero, then the Company’s Average TSR shall be deemed to be zero, and (y) greater 16%, then the Company’s Average TSR shall be deemed to be 16%.

 

Any Absolute TSR Shares that do not vest on the Vesting Date shall be forfeited.

 

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Within 30 days following the Vesting Date, vested Absolute TSR Shares and related Dividend Payments, if any, will be settled as described in the Agreement.

 

Set forth below are examples, which are intended to be used purely for illustrative purposes:

 

Example 1:

 

Assume 10,000 Absolute TSR Target Shares.  If the Company’s Average TSR over the TSR Performance Period were 2%, then the portion of the Absolute TSR Target Shares that would become vested would be equal to two-eighths (2/8) of the Absolute TSR Target Shares, or 2,500 Absolute TSR Shares.

 

Example 2:

 

Assume 10,000 Absolute TSR Target Shares.  If the Company’s Average TSR over the TSR Performance Period were 12%, then the portion of the Absolute TSR Target Shares that would become vested would be equal to 1.5 times (or twelve-eighths (12/8) of) the Absolute TSR Target Shares, or 15,000 Absolute TSR Shares.

 

Example 3:

 

Assume 10,000 Absolute TSR Target Shares.  If the Company’s Average TSR over the TSR Performance Period were 16%, then the portion of the Absolute TSR Target Shares that would become vested would be equal to two times (or sixteen-eighths (16/8) of) the Absolute TSR Target Shares, or 20,000 Absolute TSR Shares (maximum vesting).

 

Relative TSR Shares

 

At the end of each TSR Performance Period, the Company’s TSR and the TSR of each of the Peer Group Companies will be ranked from highest to lowest.  The “Relative TSR Vesting Percentage” will be determined based on the Company’s TSR as compared to the TSR of the Peer Group Companies for the TSR Performance Period as follows:

 

	
Company TSR Rank
    	
 
    	
Relative TSR Vesting Percentage
    	
 
    
	
80th percentile or above
    	
 
    	
200
    	
%
    
	
50th percentile
    	
 
    	
100
    	
%
    
	
At or below 25th percentile
    	
 
    	
0
    	
%
    

 

If the Company’s TSR Rank is between the 25th percentile and the 50th percentile or between the 50th percentile and the 80th percentile, the Relative TSR Vesting Percentage will be interpolated.

 

The number of Relative TSR Shares that will vest for the TSR Performance Period will be determined by multiplying the Relative TSR Target Shares by the Relative TSR Vesting Percentage.

 

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For the avoidance of doubt, in no event shall any Relative TSR Shares vest if the Company’s Average TSR Rank is at or below the 25th percentile.

 

Not more than 200% of the Relative TSR Target Shares may vest based on the Company’s TSR Rank.

 

Any Relative TSR Shares that do not vest on the Vesting Date shall be forfeited.

 

Within 30 days following the Vesting Date, vested Relative TSR Shares and related Dividend Payments, if any, will be settled as described in the Agreement.

 

Set forth below are examples, which are intended to be used purely for illustrative purposes:

 

Example 1:

 

Assume 10,000 Relative TSR Target Shares.  If the Company’s TSR Rank at the end of the TSR Performance Period was 15 out of 18, the Company would be in the 17th percentile.  Because the Company’s TSR Rank would be below the 25th percentile, the Relative TSR Vesting Percentage would be 0, so that none of the Relative TSR Shares would vest.  100% of the Relative TSR Target Shares would be forfeited.

 

Example 2:

 

Assume 10,000 Relative TSR Target Shares.  If the Company’s TSR Rank at the end of the TSR Performance Period was nine out of 18, the Company would be in the 50th percentile.  The Relative TSR Vesting Percentage would be 100, so that 100% of the Relative TSR Target Shares (10,000 Phantom Shares) would vest.

 

Example 3:

 

Assume 10,000 Relative TSR Target Shares.  If the Company’s TSR Rank at the end of the TSR Performance Period was two out of 18, the Company would be in the 89th percentile.  The Relative TSR Vesting Percentage would be 200, so that 200% of the Relative TSR Target Shares (20,000 Phantom Shares) would vest.

 

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Appendix 1 to Exhibit A

 

Relative TSR Peer Group Companies

 

[List of Peer Group Companies to be determined by Compensation Committee at time of grant]

 

In the event of a merger, acquisition or business combination transaction of a Peer Group Company during the TSR Performance Period in which such Peer Group Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Group Company.  Any entity involved in the transaction during the TSR Performance Period that is not the surviving company shall no longer be a Peer Group Company.

 

In the event of a merger, acquisition or business combination transaction of a Peer Group Company, a “going private” transaction or other event involving a Peer Group Company or the liquidation of a Peer Group Company (other than a bankruptcy as described below), in each case during the TSR Performance Period and where the Peer Group Company is not the surviving entity or is no longer publicly traded, such Peer Group Company shall no longer be a Peer Group Company.

 

Notwithstanding the foregoing, in the event of a bankruptcy of a Peer Group Company during the TSR Performance Period where the Peer Group Company is not publicly traded at the end of the Performance Period, such Peer Group Company shall remain a Peer Group Company but shall be deemed to be ranked last among all Peer Group Companies in the Peer Group.

 

11Exhibit 10.1

 

 

ADVISORY
SERVICES AGREEMENT

 

This
Advisory Services Agreement (the “Agreement”), is effective as of December 1, 2016 (the “Effective Date”),
between MyDx INC. (hereinafter referred to as the “Company”), a Nevada corporation, whose principal place of business
is 6335 Ferris Square, Suite B, San Diego, CA 92121 and BCI Advisors, LLC (hereinafter referred to as the “Consultant”),
a limited liability company. Individually, the Company and the Consultant may be referred to herein as a “party,”
and collectively as the “parties.”

 

WHEREAS,
the Company requires the Services (as defined herein) and as set forth below;

 

WHEREAS,
Consultant is qualified to provide the Company with the Services and is desirous to perform such Services for the Company; and

 

WHEREAS,
the Company wishes to induce Consultant to provide the Services and wishes to contract with the Consultant regarding the same
and compensate Consultant in accordance with the terms herein;

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter stated, it is agreed as follows:

 

1. APPOINTMENT.

 

The
Company hereby engages Consultant and Consultant agrees to render the Services to the Company as a consultant upon the terms and
conditions hereinafter set forth.

 

2. TERM.

 

The
term of this Consulting Agreement shall begin as of the Effective Date, and shall terminate pursuant to Section 8(a) or 360 days
thereafter.

 

3. SERVICES.

 

During
the term of this Agreement, Consultant shall provide the Company with Advisory Services. However, the Services shall be limited
to making recommendations and offering advice to the Company’s Officers, Directors and other key Company personnel. As offsite
advisors, Consultant will rely upon the Company’s management to, in the Company’s sole discretion, accept or reject
its recommendations. Under no circumstances, even in the event that Consultant is to perform onsite analysis, shall Consultant
be responsible for making any decisions on behalf of the Company. The Company will be assigned a Principal point of contact (“PPC”)
for this agreement which will depend on the areas of expertise required to fulfill the obligations under the engagement. Consultation
may be sought by the Company over the telephone, in person, at the Company's offices or another reasonable location or through
written correspondence, and will involve providing services and more fully described below. Additionally, Consultant may be requested
to attend, to the extent Consultant’s schedule permits, one or more in person planning meetings with other members of the
Company Board of Directors, committees or Executive management staff, in keeping with the terms of this Agreement. During the
term of this Agreement, Consultant shall provide the Company with the following “Services”.

 

    

     

    

 

(a) Advise
management, with particular focus on strategic planning, organizational and corporate structure analysis with the ultimate goal
of preparing the company for capital market investor due diligence;

 

(b) Conduct
a comprehensive inquiry into the Company’s historical operational and financial activities, make specific recommendations
related to a recapitalization, as well as assist with debt settlement negotiations with the goal of structuring payment arrangements
as well as additional activities that we believe would best place the Company, post-restructuring, in a place where it could gain
easier access to new investor capital;

 

(c)
Provide input for an updated and revised business plan, the balance of materials required in order to file a Form S-1 (or
similar registration statement) with the U.S. Securities and Exchange Commission (the “SEC”) and coordinate with
Company counsel and constants to review subsequent filings in order to maintain the Company's Securities Exchange Act of 1934
compliance status;

 

(d) Use
its best efforts to move the Company to the NASDAQ Board; and

 

(e) Provide
introductions to NASD member firm banking relationships, funding and financing firms and, on a best efforts basis, seek an engagement
that is in the best interests of the Company, develop a long-term growth, capital structure and financing strategy, and advise
the Company in regard to the size of any offering of the Company’s securities and the structure and terms of the offering
in light of the current market environment;

 

(f) Provide
business development introductions to the Company on a best efforts basis, assist in the process and in the best interests of
the Company. The Company hereby agrees to provide an “Acknowledgement of Introduction” for each opportunity, if any
(each a “BCI Protected Relationship”) that Consultant introduces the Company to. Each Acknowledgement of Introduction
shall grant Consultant to provide input on the transaction structure. The Company shall additionally agree that by providing BCI
with an Acknowledgement of Introduction and commencing the negotiation of a business relationship with a BCI Protected Relationship
(even if an Acknowledgement of Introduction was not tendered), that for two (2) years following BCI introduction or for two (2)
years subsequent to the receipt of an Acknowledgement of Introduction, regardless of a termination of this Agreement of any other
events whatever, that should the Company close a financial transaction with a BCI Protected Relationship, that BCI shall be compensated
in accordance with Section 4(b) of this Agreement. Should BCI's rights to receive the Section 4(b) Compensation be compromised
in any way (including for example, by not holding BCI compensation in escrow at the time of the closing of any such financial
transaction), that the Company shall grant Consultant the right to injunctive relief, without the requirement to post a bond and
if so required the bond shall not exceed $100, as well as appropriate monetary damages. Damages shall be equal to an amount of
money equal to not less than the amount of financial benefit Consultant would have received had the Company complied with the
Section 4(b) Compensation terms. The term “BCI Protected Relationship” shall include any person or entity that Consultant
introduced to the Company in connection with this Agreement, or a third party person or entity that has a business or other affiliation
with any person or entity that Consultant introduced to the Company in connection with Consultant’s services under this
Agreement. Unless authorized by Consultant in writing, under no other circumstances, shall Company make any effort to contact
a BCI Protected Relationship.

 

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(g) In
the event that the Company has a prior existing business relationship with a party introduced by BCI as a potential BCI Protected
Relationship, then the Company shall have a positive obligation to deliver in writing such a notification of a prior business
relationship within 48 hours of the time that BCI makes an introduction. The failure to provide BCI with notice of a prior business
relationship shall forever waive the Company's right to subsequently assert that they had a prior existing business relationship
with that respective introduction.

 

Consultant
agrees to provide the Services on a timely basis via: meetings with Company representatives which may include other professionals;
conferences calls with Company representatives and other professionals; and/or written correspondence and documentation. Consultant
cannot guarantee the results on behalf of the Company, but shall pursue all avenues that it deems reasonable through its network
of contacts.

 

4. COMPENSATION.
All compensation (hereinafter referred to as “Compensation” and more further described in this Section 4) delivered
and paid to Consultant pursuant to this Agreement shall be deemed completely earned, due, payable, free of liens or encumbrances,
and non-assessable as of the date the Compensation is tendered to Consultant by the Company. Once Compensation is tendered to
Consultant, there shall be no refunds or diminishment of the same regardless of any event. The Company has been notified that
much of the Consultant's efforts are "front-loaded" and therefore, much of the consulting work must be done at the outset
of the Closing and during the 90 days thereafter. In connection with this Agreement, the Company shall pay Consultant the following
fees:

 

(a) Cash
Fee. Upon execution USD $50,000 in cash or free trading, unrestricted (i.e., registered on Form S-8) common stock of the Company,
upon execution of this Agreement and additionally, on the fifteenth of the month, beginning January 15, 2016, and for 10 subsequent
months, $25,000 per month. If the Company elects to pay the consultant in From S-8 stock it will be it will be paid to the PPC
and calculated based on a forty five percent discount to the lowest closing bid price of the preceding twenty trading days.

 

(b) An
introduction fee upon successful closing equal to $25,000 in cash or free trading, unrestricted (i.e., registered on Form S-8)
common stock of the Company payable at the closing or execution transaction entered into between the Company and any BCI Protected
Relationship.

 

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(c) Costs Retainer. USD $4,000, upon execution of this Agreement. This money shall be used exclusively to cover BCI's reasonable
costs related to this Agreement. Any monies not reasonably expended shall be refunded to the Company subsequent to the end of
the Term of this Agreement or upon a valid Termination (Section 8(a)) of the Agreement.

 

(d) Securities.

 

		(i)	Common
                                         Stock. On the 45 and 90th day anniversary of the effectiveness of this Agreement,
                                         Consultant shall be issued, in restricted Company common stock and on a fully diluted
                                         basis, and A-1 and A-2 warrant each equal to seven-and-one-half percent (7.5%) for a
                                         total of (15%) of the then issued and outstanding Company common shares (hereinafter,
                                         the common shares underlying this 15% issuance shall be referred to as the “Initial
                                         Stock”). Further, with the exception of exempt issuances of common shares or any
                                         other Company equity (including preferred and/or convertible equity) or convertible debt
                                         which are discussed in Item 4(d)(dA) below, the Company agrees and covenants to maintain
                                         Consultant’s fully diluted interest of 15% of the Company’s common shares
                                         until the earlier occurrence of one of the two following events: (X) Consultant, or it’s
                                         assigns no longer own at least fifty percent (50%) of the Initial Stock, or (Y) 180 days
                                         has elapsed since the Initial Stock was registered for sale in a valid registration statement
                                         filed and made effective with the SEC.

 

The
Company shall maintain Consultant’s Initial Stock interest exclusively by issuing additional common shares to Consultant.1

 

At
no cost to Consultant, Company agrees to register for sale, in any legally feasible registration statement filed by the Company
with the SEC, all of the common Shares underlying the Initial Stock.

 

		(A)	Exceptions
                                         shall include: (i) any market priced and valid issuance of equity or debt that is exchanged
                                         for a cash investment into the Company, and (ii) any equity or debt that is issued in
                                         an accretive acquisition of a new business or new assets.

 

 

1
 An example of Company maintaining Consultant’s Initial Stock issuance would
be as follows: Assume for the purposes of this example that there were 10,000,000 common shares issued and outstanding and Consultant
owned 750,000 of those shares. Further, assume that there were two issuances made by the Company prior to 6 months following the
effectiveness of the registration for sale of the Initial Stock: one for 2,000,000 common shares to various consultants and another
of 3,000,000 to investors related to a private placement of Company common shares. In this example, the private placement is an
exempt issuance and does not dilute Consultant according to this Agreement; however the 2,000,000 share issuance to the consultants
would give rise to Consultant receiving additional common shares. In this case, in order to determine how many additional shares
Consultant would receive, one would multiply the difference (obtained by subtracting any exempt issuances from the total outstanding
shares) by .075. That product would then be reduced by the number of common shares held by Consultant prior to the new non-exempt
issuance. Therefore, in this example, that number would be 150,000 new shares to Consultant.

 

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		(ii)	Common
                                         Stock Purchase Warrants. On the Effective Date, Company shall cause to be executed
                                         and deliver to Consultant the attached Exhibit A-1 and A-2 Common Stock Purchase Warrant.

 

		(iii)	Warrant
                                         Exercise Price Credit. On the later date of either the 90th day subsequent
                                         to the effectiveness of this Agreement or the first day following any recapitalization
                                         or restructuring of the Company’s common shares, Company shall pay to Consultant
                                         a credit of one hundred percent (100%) of the cost of exercising the Common Stock Purchase
                                         Warrant attached hereto in Exhibit A-1. Additionally, on the later date of either the
                                         180th day subsequent to the effectiveness of this Agreement or the 90th
                                         day following any recapitalization or restructuring of the Company’s common
                                         shares, Company shall pay to Consultant a credit of one hundred percent (100%) of the
                                         cost of exercising the Common Stock Purchase Warrant attached hereto in Exhibit A-2.

 

At
any time subsequent to Consultant earning a Warrant Exercise Price Credit, Consultant may demand, in writing, physical delivery
(to Consultant) of Company common shares underlying a Common Stock Purchase Warrant.

 

With
respect to the Section 4(a)(b)(d) Compensation, upon the execution of this Agreement or as soon as practicable thereafter, Company
agrees to place fifty million shares of MyDX common shares (the "Escrow Shares”) and such additional reserve shares
that maybe required to maintain up to one hundred and fifty percent of the amount obligated under the terms of this Agreement
and upon delivery of such services (the “Reserved Shares”), made payable to the Consultant, into escrow with its Transfer
Agent. MyDx shall provide irrevocable instructions to the Company’s transfer agent and the Transfer Agent will authorize
the issuance to the Consultant (or it's assigns) of (x) all or part of the Escrow Shares and (y) such additional common shares
that may be due to Consultant pursuant to this Agreement. Specimens of the irrevocable instructions to the Company's transfer
agent are attached hereto as “Exhibit” __.

 

5.      REPRESENTATIONS
AND WARRANTIES OF COMPANY.

 

The
Company hereby represents, warrants and agrees as follows:

 

(a) This
Agreement has been authorized, executed and delivered by the Company and, when executed by the Consultant will constitute the
valid and binding agreement of the Company enforceable against the Company in accordance with its terms, except as enforcement
thereof may be limited by bankruptcy, insolvency or reorganization, moratorium or other similar laws relating to or affecting
creditors’ rights generally or by general equitable principles. The Company hereby warrants and represents that during the
term of this Agreement it will not provide the Consultant with material non-public information.

 

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(b) The
financial statements, audited and unaudited (including the notes thereto) provided to Consultant, (the “Financial Statements”),
and all Corporate agreements will present fairly the financial position of the Company as of the dates indicated and the results
of operations and cash flows of the Company for the periods specified. Such Financial Statements will be prepared in conformity
with generally accepted accounting principles applied on a consistent basis throughout the periods involved except as otherwise
stated therein.

 

(c) The
Company is validly organized, existing and with active status under the laws the State of Nevada.

 

(d) The
securities to be issued to Consultant, if any, have all been authorized for issuance and when issued, delivered and tendered to
the Consultant by the Company will be validly issued, freely tradable, fully paid and non-assessable.

 

(e) Since
date of the most recent of the Financial Statements, there has not been any undisclosed (A) material adverse change in the business,
properties, assets, rights, operations, condition (financial or otherwise) or prospects of the Company, (B) transaction that is
material to the Company, except transactions in the ordinary course of business, (C) obligation that is material to the Company,
direct or contingent, incurred by the Company, except obligations incurred in the ordinary course of business, (D) change that
is material to the Company or in the common shares or outstanding indebtedness of the Company, or (E) dividend or distribution
of any kind declared, paid, or made in respect of the common shares.

 

(f) The
Company shall be deemed to have been made a continuing representation of the accuracy of any and all facts, material information
and data which it supplies to Consultant and acknowledges its awareness that Consultant will rely on such continuing representation
in disseminating such information and otherwise performing its advisory functions. Consultant in the absence of notice in writing
from the Company, will rely on the continuing accuracy of material, information and data supplied by the Company.

 

6. INDEMNIFICATION.
The Company agrees to indemnify the Consultant and hold it harmless against any losses, claims, damages or liabilities incurred
by the Consultant, in connection with, or relating in any manner, directly or indirectly, to the Consultant rendering the Services
in accordance with the Agreement, unless it is determined by a court of competent jurisdiction that such losses, claims, damages
or liabilities arose out of the Consultant’s breach of this Agreement, sole negligence, gross negligence, willful misconduct,
dishonesty, fraud or violation of any applicable law. Additionally, the Company agrees to reimburse the Consultant immediately
for any and all expenses, including, without limitation, attorney fees, incurred by the Consultant in connection with investigating,
preparing to defend or defending, or otherwise being involved in, any lawsuits, claims or other proceedings arising out of or
in connection with or relating in any manner, directly or indirectly, to the rendering of any Services by the Consultant in accordance
with the Agreement (as defendant, nonparty, or in any other capacity other than as a plaintiff, including, without limitation,
as a party in an interpleader action). The Company further agrees that the indemnification and reimbursement commitments set forth
in this paragraph shall extend to any controlling person, strategic alliance, partner, member, shareholder, director, officer,
employee, agent or subcontractor of the Consultant and their heirs, legal representatives, successors and assigns. The provisions
set forth in this Section shall survive any termination of this Agreement.

 

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7. COMPLIANCE
WITH SECURITIES LAWS. The Company understands that any and all Compensation outlined in this Agreement shall be paid solely
and exclusively as consideration for the aforementioned consulting efforts made by Consultant on behalf of the Company as an independent
contractor. The parties to be performing the services outlined in this Agreement are natural persons. Consultant has been engaged
to provide the Company with traditional “public company” business, technical and related business services. Consultant’s
engagement does not involve the marketing of any Company securities.

 

8. MISCELLANEOUS.

 

(a) Termination
and Renewal: During the term of this Agreement, in the event of breach of this Agreement by Consultant, the Company may send
written notice to Consultant advising Consultant of such breach. Upon receipt of such notice from Company, Consultant shall have
45 days to cure such breach. This Agreement may be terminated by Company only upon written notice to Consultant and Consultant’s
failure to cure said breach within 45 days from receipt of said notice (hereinafter referred to as a “Termination").
With respect to a Termination, the Company may only be relieved of a Section 4(a)(b)(c) and (d) Compensation obligation, if the
Termination notification is delivered in writing by or before 90 days preceding the date that such Section 4 Compensation obligation
is due to be tendered. Any Termination subsequent to Consultant's vestment in or receipt of a Section 5 Compensation obligation,
regardless of fault or circumstances, shall not diminish Consultant's rights to the portion of Section 5 Compensation. The Company
has been notified that much of the Consultant's efforts are "front-loaded" and therefore, much of the consulting work
must be done at the outset of the Closing and during the 90 days thereafter. As a result, Compensation in Section 4(a)(b)(c)(d),
along with any other Section 4 Compensation shall be considered earned, due and payable as of the Closing Date.

 

This
Agreement shall not renew automatically in accordance with Section 2 if either Party provides written notice to the non-renewing
Party at least 20 days prior to the end of the initial or each renewal term described in Section 2.

 

(b) Modification.
This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof. This Agreement may
be amended only in a writing executed by both parties.

 

(c) Notices.
Any notice required or permitted to be given hereunder shall be in writing and shall be mailed, faxed or otherwise delivered in
person to the parties at the addresses set forth above in the first paragraph of this Agreement.

 

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(d) Waiver.
Any waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver
of any other breach of that provision or of any breach of any other provision of this Agreement. The failure of a party to insist
upon strict adherence to any term of this Agreement on one or more occasions will not be considered a waiver or deprive that party
of the right thereafter to insist upon adherence to that term of any other term of this Agreement.

 

(e) Assignment.
Compensation under this Agreement is assignable at the sole discretion of the Consultant.

 

(f) Severability.
If any provision of this Agreement is invalid, illegal, or unenforceable, the balance of this Agreement shall remain in effect.
If any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and
circumstances. If any compensation provision is deemed unenforceable or illegal, then in the case of the delivery of common stock
to the Consultant, Consultant shall be entitled to receive a cash benefit equal to the value of the common stock that would have
been tendered had such a provision not been illegal or unenforceable.

 

(g) Governing
Law. The subject matter of this Agreement shall be governed by and construed in accordance with the laws of the State of Florida
(without reference to its choice of law principles), and to the exclusion of the law of any other forum, without regard to the
jurisdiction in which any action or special proceeding may be instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION
AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN BROWARD COUNTY FLORIDA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF,
IN CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE
CLAIM OR DEFENSE THEREIN THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH
PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO TRIABLE. If it becomes necessary for any party to institute
legal action to enforce the terms and conditions of this Agreement, the prevailing party shall be awarded reasonable attorneys
fees, expenses and costs.

 

(h) Specific
Performance. The Company and the Consultant shall have the right to demand specific performance of the terms, and each of
them, of this Agreement.

 

(i) Execution
of the Agreement. The Company, the party executing this Agreement on behalf of the Company, and the Consultant, have the requisite
corporate power and authority to enter into and carry out the terms and conditions of this Agreement, as well as all transactions
contemplated hereunder. All corporate proceedings have been taken and all corporate authorizations and approvals have been secured
which are necessary to authorize the execution, delivery and performance by the Company and the Consultant of this Agreement.
This Agreement has been duly and validly executed and delivered by the Company and the Consultant and constitutes a valid and
binding obligation, enforceable in accordance with the respective terms herein. Upon delivery of this Agreement, this Agreement,
and the other agreements and exhibits referred to herein, will constitute the valid and binding obligations of Company, and will
be enforceable in accordance with their respective terms. Delivery may take place via facsimile transmission.

 

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(j) Joint
Drafting and Exclusive Agreement. This Agreement is the only Agreement executed by and between the parties
related to the performance of the Services described herein. There are no additional oral agreements or other understandings related
to the performance of the Services described herein. This Agreement shall be deemed to have been drafted jointly by the parties
hereto, and no inference or interpretation against any one party shall be made solely by virtue of such party allegedly having
been the draftsperson of this Agreement. The parties have each conducted sufficient and appropriate due diligence with respect
to the facts and circumstances surrounding and related to this Agreement. The parties expressly disclaim all reliance upon, and
prospectively waive any fraud, misrepresentation, negligence or other claim based on information supplied by the other party,
in any way relating to the subject matter of this Agreement.

 

(k) Conflicts
of Interest. Consultant shall exercise its best efforts to make Company aware of any conflicts of interest that exist between
the Consultant, including any other business of entity that Consultant beneficially owns or controls, and any interest of the
Company. Disclosure of such conflicts of interest may be made in writing or through oral communication. Acknowledgement of such
conflicts of interest and Company’s waiver of any cause of action against Consultant related to a conflict of interest may
be made in writing or through oral communication.

 

(l) Acknowledgments
and Assent. The parties acknowledge that they have been given at least ten (10) days to consider this Agreement and that they
were advised to consult with an independent attorney prior to signing this Agreement and that they have in fact consulted with
counsel of their own choosing prior to executing this Agreement. The parties may revoke this Agreement for a period of three (3)
calendar days after signing this Agreement, and the Agreement shall not be effective or enforceable until the expiration of this
three (3) day revocation period. The parties agree that they have read this Agreement and understand the content herein, and freely
and voluntarily assent to all of the terms herein.

 

(m) Exhibits:
Exhibits A-1 and A-2, Reservations Agreement, Acknolwdement of Introduction Payment Demand, and TA instruction Letter.

 

SIGNATURE
PAGE FOLLOWS

 

THE
REMAINDER OF THE PAGE HAS BEEN INTENTIONALLY LEFT BLANK

 

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SIGNATURE
PAGE

 

IN
WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first above written.

 

	MyDx,
    Inc.	 	BCI
    Advisors, LLC
	 	 	 	 	 
	By:	/s/
        Daniel Yazbeck
	 	By:	/s/
    E.Galvin
	 	Daniel
    Yazbeck	 	 	E.Galvin
	Its:	Chief
    Executive Officer	 	Its:	Managing
    Director

 

A
FACSIMILE COPY OF THIS AGREEMENT SHALL HAVE THE SAME LEGAL 

EFFECT AS AN ORIGINAL OF THE SAME.

 

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EXHIBIT
A-1

 

COMMON
STOCK PURCHASE WARRANT

A-1

 

VOID
AFTER 5:00 P.M., EASTERN TIME ON JANUARY 15, 2017

 

For
the Purchase of Seven and One-Half Percent (7.5%) of the 

Issued
and Outstanding Shares of Common Stock, $0.001 Value

of

MyDx,
Inc.

a
Nevada corporation

 

THIS
CERTIFIES THAT, for value received, YCIG, INC (the “Holder”), as registered owner of this Common Stock Purchase Warrant
(“Warrant”), is entitled to, at any time at or before the Expiration Date (as defined below), but not thereafter,
to subscribe for, purchase and receive seven and one half percent (7.5%) of the common shares issued and outstanding as of January
15, 2017, of the fully paid and non assessable shares of common stock (the “Common Stock”), of MyDx, Inc., a Nevada
corporation (the “Company”), at $.001 per share (the “Exercise Price”), upon presentation and surrender
of this Warrant and upon payment by cashier’s check, wire transfer or credit of the Exercise Price for such Common Stock
to the Company at the principal office of the Company; provided, however, that upon the occurrence of any of the events specified
in the Statement of Rights of Warrant Holder, a copy of which is attached as Annex 1 hereto, and by this reference made a part
hereof, the rights granted by this Warrant shall be adjusted as therein specified.

 

Upon
exercise of this Warrant, the form of election must be duly executed and the instructions for registration of the Shares acquired
by such exercise must be completed.

 

The
term Expiration Date (the “Expiration Date”) means the earliest of (i) the first anniversary of the date hereof, (ii)
immediately prior to the sale of all of substantially all of the Company’s assets, or (iii) immediately prior to a merger
or consolidation in which securities possessing more than 50% of the total combined voting power of the Company’s outstanding
securities are transferred to a person or persons different from the persons holding those securities immediately prior to such
transaction; provided, that the Company shall give notice to the Holder at least 10 days prior to the events set forth in clauses
(i), (ii) and (iii) above.

 

If
the subscription rights represented hereby are not exercised at or before the Expiration Date, this Warrant shall become void,
and all rights represented hereby shall cease and expire.

 

This
Warrant may be exercised in accordance with its terms in whole or in part. In the event of the exercise or assignment hereof in
part only, the Company shall cause to be delivered to the Holder a new Warrant of like tenor to this Warrant in the name of the
Holder, evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Warrant has
not been exercised or assigned.

 

In
no event shall this Warrant (or the Shares issuable, upon full or partial exercise hereof) be offered or sold except in conformity
with the Securities Act of 1933; as amended.

 

     

     

    

  

COMMON
STOCK PURCHASE WARRANT A-1

SIGNATURE
PAGE

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer this January 15, 2017.

 

	 	MyDx, Inc.
	 	 	 
	 	By:	/s/
    Daniel Yazbeck
	 	 	Daniel Yazbeck
	 	 	Chief Executive Officer

 

    	 	2 of 11	 

     

    

 

Form
to be used to exercise Warrant:

 

	TO:	MyDx,
Inc.	DATE: _______________

 

The
Undersigned hereby elects, irrevocably, to exercise the Warrant and to purchase ________ shares of Common Stock of the Company,
and hereby makes payment by cashier’s check of $________________ (at $____) in payment of the Exercise Price pursuant thereto.
Please issue the Shares as to which this Warrant is exercised in the name of:

 

__________________________________

(Name)

 

__________________________________

(Address)

 

__________________________________

(Taxpayer
Number)

 

and
if said number of Warrants exercised shall not be all the Warrants evidenced by the within Warrant Certificate, issue a new Warrant
Certificate for the remaining balance of Warrants to the undersigned at the address stated below.

 

	Name of Holder:	______________________________________________	 
	 	(Please
Print)	 
	 	 	 
	Signature:	 ______________________________________________ 	 
	 	 	 
	 	______________________________________________ 	 
	 	(Address)	 

  

		NOTICE:	The
                                         signature to exercise must correspond with the name as written upon the face of the Warrant
                                         in every particular without alteration or enlargement or any change whatsoever.

 

    	 	3 of 11	 

     

    

 

Form
to be used to transfer Warrants:

 

	TO:	MyDx, Inc.
	 	 
	DATE:	___________________________

 

For
value received, _______________________ hereby sells, assigns and transfers unto __________________________ (Tax ID No._____________________)
the attached Warrant, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
the Secretary of the Company attorney, to transfer said Warrant Certificate on the books of the company, with full power of substitution
in the premises.

 

	Name of Holder:	______________________________________________	 
	 	(Please
Print)	 
	 	 	 
	Signature:	 ______________________________________________ 	 
	 	 	 
	 	______________________________________________ 	 
	 	(Address)	 

 

		NOTICE:	The
                                         signature to transfer must correspond with the name as written upon the face of the Warrant
                                         in every particular without alteration or enlargement or any change whatsoever.

 

    	 	4 of 11	 

     

    

 

ANNEX
1 TO MyDx, INC.

COMMON
STOCK PURCHASE WARRANT A-1

 

STATEMENT
OF RIGHTS OF WARRANT HOLDER

 

1. Exercise
of Warrant. This Warrant may be exercised in whole or in part at any time at or before the Expiration Date (as defined in
the Warrant), by presentation and surrender hereof to the Company, with the Exercise Form annexed hereto duly executed and accompanied
by payment by cashier’s check or wire transfer of the Exercise Price for the number of shares specified in such form, together
with all federal and state taxes applicable upon such exercise. If this Warrant should be exercised in part only, the Company
shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the right of the Holder to
purchase the balance of the shares purchasable hereunder. Upon receipt by the Company of this Warrant and the Exercise Price at
the office or agency of the Company, in proper form for exercise, the Holder shall be deemed to be the holder of record of the
common stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or
that certificates representing such common stock shall not then be actually delivered to the Holder.

 

2. Rights
of the Holder. The Holder shall not, by virtue hereof, be entitled to any rights of a member in the Company, either at law
or equity, and the rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the Company
except to the extent set forth herein.

 

3. Adjustment
in Number of Shares.

 

(A) Adjustment
for Reclassifications. In case at any time or from time to time after January 15, 2017 (“Issue Date”) the holders
of the Common Stock of the Company (or any shares or other securities at the time receivable upon the exercise of this Warrant)
shall have received, or, on or after the record date fixed for the determination of eligible members, shall have become entitled
to receive, without payment therefore, other or additional shares or other securities or property (other than cash) by way of
share-split, spinoff, reclassification, combination of shares or similar corporate rearrangement (exclusive of any dividend of
its or any subsidiary’s shares), then and in each such case, the Holder of this Warrant, upon the exercise hereof as provided
in Section 1, shall be entitled to receive the amount of securities and property which such Holder would hold on the date of such
exercise if on the Issue Date he had been the holder of record of the number of common stock shares of the Company called for
on the face of this Warrant and had thereafter, during the period from the Issue Date, to and including the date of such exercise,
retained such shares and/or all other or additional securities and property receivable by him as aforesaid during such period,
giving effect to all adjustments called for during such period.

 

(B)  Adjustment for Reorganization, Consolidation, Merger. In case of any reorganization of the Company (or any other company
the securities of which are at the time receivable on the exercise of this Warrant) after the Issue Date, or in case, after such
date, the Company (or any such other company) shall consolidate with or merge into another company or convey all, or substantially
all, of its assets to another company, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided
in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled
to receive, in lieu of the securities and property receivable upon the exercise of this Warrant prior to such consummation, the
securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto,
all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the
shares or other securities or property receivable upon the exercise of this Warrant after such consummation.

 

    	 	5 of 11	 

     

    

 

3.5 Adjustment
in Exercise Price. Under no circumstances shall the Exercise Price of the Warrant change. Therefore, in the case of a reverse
stock split or recapitalization or any other event, subsequent to any such event, the Exercise Price shall remain $.001.

 

4. Notices
to Warrant Holders. So long as this Warrant shall be outstanding and unexercised if the Company shall take any action which
would trigger an adjustment (as set forth in Section 3), then, in any such case, the Company shall cause to be delivered to the
Holder, at least ten days prior to the date specified in (x) or (y) below, as the case may be, a notice containing a brief description
of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend, distribution
or rights, or (y) such reclassification, reorganization, consolidation, merger, conveyance; lease, dissolution, liquidation or
winding up is to take place and the date, if any, is to be fixed, as of which the holders of Common Stock of record shall be entitled
to exchange their common stock for securities or other property deliverable upon such reclassification, reorganization, consolidation,
merger, conveyance, dissolution, liquidation or winding up.

 

5. Officer’s
Certificate. Whenever the number of common stock issuable upon exercise of this Warrant or the Exercise Price shall be adjusted
as required by the provisions hereof, the Company shall forthwith file in the custody of its Secretary or an Assistant Secretary
at its principal office, and with its stock transfer agent, if any, an officer’s certificate showing the adjusted number
of common stock or Exercise Price determined as herein provided and setting forth in reasonable detail the facts requiring such
adjustment. Each such officer’s certificate shall be made available at all reasonable times for inspection by the Holder
and the Company shall, forthwith after each such adjustment, deliver a copy of such certificate to the Holder. Such certificate
shall be conclusive as to the correctness of such adjustment.

 

6. Restrictions
on Transfer. The Holder of this Warrant, by acceptance thereof; agrees that, absent an effective registration statement, under
the Securities Act of 1933 (the “Act”), covering the disposition of this Warrant or the Common Stock issued or issuable
upon exercise hereof, such Holder will not sell or transfer any or all of this Warrant or such Common Stock without first providing
the Company with an opinion of counsel reasonably satisfactory to the Company to the effect that such sale or transfer will be
exempt from the registration and prospectus delivery requirements of the Act. The certificates evidencing the Warrant and Common
Stock which will be delivered to such Holder by the Company shall bear substantially the following legend:

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN
ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REQUIREMENTS FOR SUCH REGISTRATION FOR NONPUBLIC OFFERINGS. ACCORDINGLY, THE SALE,
TRANSFER. PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES EVIDENCED HEREBY OR ANY PORTION THEREOF OR INTEREST THEREIN
MAY NOT BE ACCOMPLISHED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THAT ACT OR AN OPINION OF COUNSEL TO THE HOLDER
OF THE SECURITIES (UNLESS THE COMPANY DETERMINES IN ITS SOLE DISCRETION TO USE ITS OWN COUNSEL), WITH ANY SUCH COUNSEL AND OPINION
OF COUNSEL TO BE REASONABLY ACCEPTABLE TO THE ISSUER, TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

 

    	 	6 of 11	 

     

    

 

Each
Holder of this Warrant, at the time all or a portion of such Warrant is exercised, agrees to make such written representations
to the Company as counsel for the Company may reasonably request, in order that the Company may be reasonably satisfied that such
exercise of the Warrant and consequent issuance of Common Stock will not violate the registration and prospectus delivery requirements
of the Act, or other applicable state securities laws.

 

7.
 Piggyback Registration Rights. If, at any time after the Issue Date and expiring
on the Expiration Date, the Company proposes to register any of its securities under the Act either for its own account or for
the account of others, in connection with the public offering of such equity securities solely for cash, on a registration form
that would also permit the registration of the common stock issuable upon exercise of this Warrant (“Warrant Shares”),
the Company shall promptly give the Holder written notice of such proposal. Within thirty (30) days after the notice is given,
the Holder shall give notice as to the number of Warrant Shares, if any, which have vested and which the Holder requests be registered
simultaneously with such registration by the Company. The Company shall use its best efforts to include such Warrant Shares in
such registration statement (or in a separate registration statement concurrently filed) which the Holder requests to be so included
and to cause such registration statement to become effective with respect to such shares in accordance with the registration procedures
set forth in Section 8 hereof. If at any time after giving written notice of its intention to register equity securities and before
the effectiveness of the registration statement filed in connection with such registration, the Company determines for any reason
either not to effect such registration or to delay such registration, the Company may, at its election, by delivery of written
notice to the Holder, (i) in the case of a determination not to effect registration, relieve itself of a reasonably necessary
portion of its obligation to register the Warrant Shares under this Section 7 in connection with such registration, or (ii) in
the case of a determination to delay registration, delay the registration of the Warrant Shares under this Section 7 for the same
period as the delay in the registration of such other equity securities. Each Holder of Warrant Shares requesting inclusion in
a registration pursuant to this Section 7 may, at any time before the effective date of the registration statement relating to
such registration, revoke such request by delivering written notice of such revocation to the Company (which notice shall be effective
only upon receipt by the Company); provided, however, that if the Company, in consultation with its financial and legal
advisors, determines that such revocation would require a recirculation of the prospectus contained in the registration statement,
then such Holder of Warrant Shares shall have no right to revoke its request.

 

    	 	7 of 11	 

     

    

 

8.
 Expenses and Procedures.

 

(A) Expenses
of Registration. All registration expenses (exclusive of underwriting discounts and commissions) shall be borne by the Company;
provided, however, that if a Holder revokes a registration request pursuant to the last sentence of Section 7, the registration
expenses in connection with such revoked registration shall be borne by such Holder. Each Holder of Warrant Shares shall bear
all underwriting discounts, selling commissions, sales concessions and similar expenses applicable to the sale of the Warrant
Shares sold by such Holder.

 

(B) Registration
Procedures. In the case of the registration, qualification or compliance effected by the Company pursuant to Section 7 hereof,
the Company will keep the Holders of Warrant Shares advised as to the initiation of registration, qualification and compliance
and as to the completion thereof. At its expense, the Company will furnish such number of prospectuses and other documents incident
thereto as the Holders or underwriters from time to time may reasonably request.

 

(C) Information.
The Company may require each seller of Warrant Shares as to which any registration is being effected to furnish such information
regarding the distribution of such Warrant Shares as the Company may from time to time reasonably request and the Company may
exclude from such registration the Warrant Shares of any seller who unreasonably fails to furnish such information after receiving
such request.

 

(D) Blue
Sky. The Company will, as expeditiously as possible, use its best efforts to register or qualify the Warrant Shares covered
by a registration statement at the expense of the Company in such jurisdictions as the holders of such Warrant Shares or, in the
case of an underwritten public offering, the managing underwriter shall reasonably request at the expense of the Holders of the
Warrant Shares being registered provided that the Company shall not be required in connection with any such registration or qualification
or as a condition thereto to qualify to do business in any jurisdiction where it is not so qualified or to take any action which
would subject it to taxation or service of process in any jurisdiction where it is not otherwise subject to such taxation or service
of process.

 

(E) Notification
of Material Events. The Company will, as expeditiously as possible, immediately notify each holder of Warrant Shares under
a registration statement, at any time when a prospectus relating thereto is required to be delivered under the Act, of the happening
of any event as a result of which the prospectus contained in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing and, as expeditiously as possible, amend or supplement
such prospectus to eliminate the untrue statement or the omission.

 

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9. Indemnification.

 

(A) Indemnification
by Company. The Company shall, without limitation as to time, indemnify and hold harmless, to the full extent permitted by
law, each holder of Warrant Shares, its officers, directors, agents and employees, each person who controls such holder (within
the meaning of Section 15 of the Act or Section 20 of the Securities Exchange Act of 1934, as amended, hereinafter the “Exchange
Act”), and the officers, directors, agents or employees of any such controlling person, from and against all losses, claims,
damages, liabilities, costs (including, without limitation, all reasonable attorneys’ fees) and expenses (collectively “Loss”
or “Losses”), as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material
fact contained in any registration statement, prospectus or preliminary prospectus or any amendment or supplement thereto, or
arising out of or based upon any omission or alleged omission of a material fact required to be stated therein or necessary to
make the statements therein in light of the circumstances under which they were made (in the case of any prospectus) not misleading,
except insofar as the same are based solely upon information furnished to the Company by such holder for use therein; provided,
however, that the Company shall not be liable in any such case to the extent that any such Loss arises out of or is based upon
an untrue statement or alleged untrue statement or omission made in any preliminary prospectus or prospectus if (i) such holder
failed to send or deliver a copy of the prospectus or prospectus supplement with or prior to the delivery of written confirmation
of the sale of Warrant Shares and (ii) the prospectus or prospectus supplement would have corrected such untrue statement or omission.
If requested, the Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry
professionals participating in the distribution, their officers, directors, agents and employees and each person who controls
such persons (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) to the same extent as provided above
with respect to the indemnification of the Holders of Warrant Shares. It is agreed that the indemnity agreement contained in this
Section 9(A) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the consent
of the Company (which consent has not been unreasonably withheld).

 

(B) Conduct
of Indemnification Proceedings. If any action or proceeding (including any governmental investigation or inquiry) shall be
brought or any claim shall be asserted against any person entitled to indemnity hereunder (an “Indemnified Party”),
such indemnified party shall promptly notify the party from which such indemnity is sought (the “Indemnifying Party”)
in writing, and the indemnifying party shall assume the defense thereof including the employment of counsel reasonably satisfactory
to the indemnified party and the payment of all fees and expenses incurred in connection with the defense thereof. All such fees
and expenses (including any fees and expenses incurred in connection with investigation or preparing to defend such action or
proceeding) shall be paid to the indemnified party, as incurred, within 20 days of written notice thereof to the indemnifying
party; provided, however, that if, in accordance with this Section 9, the indemnifying party is not liable to the indemnified
party, such fees and expenses shall be returned promptly to the indemnifying party. Any such indemnified party shall have the
right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be the expense of such indemnified party unless (a) the indemnifying party has agreed to pay
such fees and expenses, (b) the indemnifying party shall have failed promptly to assume the defense of such action, claim or proceeding
and to employ counsel reasonably satisfactory to the indemnified party in any such action, claim or proceeding, or (c) the named
parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the
indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses
available to it which are different from or additional to those available to the indemnifying party (in which case, if such indemnified
party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of
such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action,
claim or proceeding or separate but substantially similar or related actions, claims or proceedings in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate
firm of attorneys (together with appropriate local counsel) at any time for all such indemnified parties, unless in the opinion
of counsel for such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified
parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the
fees and expenses of such additional counsel or counsels). No indemnifying party will consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the release of such indemnified party from all liability
in respect to such claim or litigation without the written consent (which consent will not be unreasonably withheld) of the indemnified
party. No indemnified party shall consent to entry of any judgment or enter into any settlement without the written consent (which
consent will not be unreasonably withheld) of the indemnifying party from which indemnify or contribution is sought.

 

    	 	9 of 11	 

     

    

 

(C) Contribution.
If the indemnification provided for in this Section 9 is unavailable to an indemnified party under Section 9(A) or 9(B) hereof
(other than by reason of exceptions provided in those Sections) in respect of any Losses, then each applicable indemnifying party
in lieu of indemnifying such indemnified party shall contribute to the amount paid or payable by such indemnified party as a result
of such Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party
in connection with the actions, statements or omissions which resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such indemnifying party and the indemnified party shall be determined by reference to, among
other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or
omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by such indemnifying
party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed
to include, subject to the limitations set forth in Section 9(B), any legal or other fees or expenses reasonably incurred by such
party in connection with any action, suit, claim, investigation or proceeding.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9(C) were determined by
pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred
to in the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

10. Loss
or Mutilation. Upon receipt by the Company of evidence satisfactory to it (in the exercise of reasonable discretion) of the
ownership of and the loss, theft, destruction or mutilation of any Warrant and (in the case of loss, theft or destruction) of
indemnity satisfactory to it (in the exercise of reasonable discretion), and (in the case of mutilation) upon surrender and cancellation
thereof, the Company will execute and deliver in lieu thereof a new Warrant of like tenor.

 

11. Reservation
of Shares. The Company shall at all times reserve and keep available for issue upon the exercise of Warrants such number of
its authorized but unissued common stock as will be sufficient to permit the exercise in full of all outstanding Warrants.

 

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12. Notices.
All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered
or certified mail, postage prepaid, to the address furnished to the Company in writing by the last Holder of this Warrant who
shall have furnished an address to the Company in writing.

 

13. Change;
Waiver. Neither this Warrant nor any term hereof may be changed, waived, discharged or terminated orally but only by an instrument
in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought.

 

14. Law
Governing. This Warrant shall be construed and enforced in accordance with and governed by the laws of the State of Nevada.

 

DATED:January
15, 2017

 

	 	MyDx,
    Inc.
	 	A
    Nevada corporation
	 	 
	 	By:	/s/
                                         Daniel Yazbeck

	 	 	Daniel
    Yazbeck
	 	 	Chief
    Executive Officer

 

    	 	11 of 11	 

     

    

 

EXHIBIT
A-2

COMMON
STOCK PURCHASE WARRANT

A-2

 

VOID
AFTER 5:00 P.M., EASTERN TIME ON March 1, 2017

 

For
the Purchase of Seven and One-Half Percent (7.5%) of the 

Issued
and Outstanding Shares of Common Stock, $0.001 Value

of

MyDx,
Inc.

a
Nevada corporation

 

THIS CERTIFIES THAT, for value
received, BCI Advisors Advisors , LLC (the “Holder”), as registered owner of this Common Stock Purchase Warrant (“Warrant”),
is entitled to, at any time at or before the Expiration Date (as defined below), but not thereafter, to subscribe for, purchase
and receive seven and one half percent (7.5%) of the common shares issued and outstanding as of March 1, 2017, of the fully paid
and non assessable shares of common stock (the “Common Stock”), of MyDx-Flo, Inc., a Nevada corporation (the “Company”),
at $.001 per share (the “Exercise Price”), upon presentation and surrender of this Warrant and upon payment by cashier’s
check, wire transfer or credit of the Exercise Price for such Common Stock to the Company at the principal office of the Company;
provided, however, that upon the occurrence of any of the events specified in the Statement of Rights of Warrant Holder, a copy
of which is attached as Annex 1 hereto, and by this reference made a part hereof, the rights granted by this Warrant shall be adjusted
as therein specified.

 

Upon
exercise of this Warrant, the form of election must be duly executed and the instructions for registration of the Shares acquired
by such exercise must be completed.

 

The
term Expiration Date (the “Expiration Date”) means the earliest of (i) the first anniversary of the date hereof, (ii)
immediately prior to the sale of all of substantially all of the Company’s assets, or (iii) immediately prior to a merger
or consolidation in which securities possessing more than 50% of the total combined voting power of the Company’s outstanding
securities are transferred to a person or persons different from the persons holding those securities immediately prior to such
transaction; provided, that the Company shall give notice to the Holder at least 10 days prior to the events set forth in clauses
(i), (ii) and (iii) above.

 

If
the subscription rights represented hereby are not exercised at or before the Expiration Date, this Warrant shall become void,
and all rights represented hereby shall cease and expire.

 

This
Warrant may be exercised in accordance with its terms in whole or in part. In the event of the exercise or assignment hereof in
part only, the Company shall cause to be delivered to the Holder a new Warrant of like tenor to this Warrant in the name of the
Holder, evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Warrant has
not been exercised or assigned.

 

In
no event shall this Warrant (or the Shares issuable, upon full or partial exercise hereof) be offered or sold except in conformity
with the Securities Act of 1933; as amended.

 

     

     

    

 

COMMON
STOCK PURCHASE WARRANT A-2

SIGNATURE
PAGE

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer this March 1, 2017.

 

	 	MyDx, Inc.
	 	 	 
	 	By:	/s/
    Daniel Yazbeck
	 	 	Daniel Yazbeck
	 	 	Chief Executive Officer

 

    	 	2 of 11	 

     

    

 

Form
to be used to exercise Warrant:

 

	TO:	MyDx,
Inc.	DATE: _______________

 

The
Undersigned hereby elects, irrevocably, to exercise the Warrant and to purchase ________ shares of Common Stock of the Company,
and hereby makes payment by cashier’s check of $________________ (at $____) in payment of the Exercise Price pursuant thereto.
Please issue the Shares as to which this Warrant is exercised in the name of:

 

__________________________________

(Name)

 

__________________________________

(Address)

 

__________________________________

(Taxpayer
Number)

 

and
if said number of Warrants exercised shall not be all the Warrants evidenced by the within Warrant Certificate, issue a new Warrant
Certificate for the remaining balance of Warrants to the undersigned at the address stated below.

 

	Name of Holder:	______________________________________________	 
	 	(Please
Print)	 
	 	 	 
	Signature:	 ______________________________________________ 	 
	 	 	 
	 	______________________________________________ 	 
	 	(Address)	 

  

		NOTICE:	The
                                         signature to exercise must correspond with the name as written upon the face of the Warrant
                                         in every particular without alteration or enlargement or any change whatsoever.

 

    	 	3 of 11	 

     

    

 

Form
to be used to transfer Warrants:

 

	TO:	MyDx, Inc.
	 	 
	DATE:	___________________________

 

For
value received, _______________________ hereby sells, assigns and transfers unto __________________________ (Tax ID No._____________________)
the attached Warrant, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
the Secretary of the Company attorney, to transfer said Warrant Certificate on the books of the company, with full power of substitution
in the premises.

 

	Name of Holder:	______________________________________________	 
	 	(Please
Print)	 
	 	 	 
	Signature:	 ______________________________________________ 	 
	 	 	 
	 	______________________________________________ 	 
	 	(Address)	 

 

		NOTICE:	The
                                         signature to transfer must correspond with the name as written upon the face of the Warrant
                                         in every particular without alteration or enlargement or any change whatsoever.

 

    	 	4 of 11	 

     

    

 

ANNEX
1 TO MyDx, INC.

COMMON
STOCK PURCHASE WARRANT A-1

 

STATEMENT
OF RIGHTS OF WARRANT HOLDER

 

1. Exercise
of Warrant. This Warrant may be exercised in whole or in part at any time at or before the Expiration Date (as defined in
the Warrant), by presentation and surrender hereof to the Company, with the Exercise Form annexed hereto duly executed and accompanied
by payment by cashier’s check or wire transfer of the Exercise Price for the number of shares specified in such form, together
with all federal and state taxes applicable upon such exercise. If this Warrant should be exercised in part only, the Company
shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the right of the Holder to
purchase the balance of the shares purchasable hereunder. Upon receipt by the Company of this Warrant and the Exercise Price at
the office or agency of the Company, in proper form for exercise, the Holder shall be deemed to be the holder of record of the
common stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or
that certificates representing such common stock shall not then be actually delivered to the Holder.

 

2. Rights
of the Holder. The Holder shall not, by virtue hereof, be entitled to any rights of a member in the Company, either at law
or equity, and the rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the Company
except to the extent set forth herein.

 

3. Adjustment
in Number of Shares.

 

(A) Adjustment
for Reclassifications. In case at any time or from time to time after March 1, 2017 (“Issue Date”) the holders
of the Common Stock of the Company (or any shares or other securities at the time receivable upon the exercise of this Warrant)
shall have received, or, on or after the record date fixed for the determination of eligible members, shall have become entitled
to receive, without payment therefore, other or additional shares or other securities or property (other than cash) by way of
share-split, spinoff, reclassification, combination of shares or similar corporate rearrangement (exclusive of any dividend of
its or any subsidiary’s shares), then and in each such case, the Holder of this Warrant, upon the exercise hereof as provided
in Section 1, shall be entitled to receive the amount of securities and property which such Holder would hold on the date of such
exercise if on the Issue Date he had been the holder of record of the number of common stock shares of the Company called for
on the face of this Warrant and had thereafter, during the period from the Issue Date, to and including the date of such exercise,
retained such shares and/or all other or additional securities and property receivable by him as aforesaid during such period,
giving effect to all adjustments called for during such period.

 

(B)    
Adjustment for Reorganization, Consolidation, Merger. In case of any reorganization of the Company (or any other company
the securities of which are at the time receivable on the exercise of this Warrant) after the Issue Date, or in case, after such
date, the Company (or any such other company) shall consolidate with or merge into another company or convey all, or substantially
all, of its assets to another company, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided
in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled
to receive, in lieu of the securities and property receivable upon the exercise of this Warrant prior to such consummation, the
securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto,
all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the
shares or other securities or property receivable upon the exercise of this Warrant after such consummation.

 

    	 	5 of 11	 

     

    

 

3.5 Adjustment
in Exercise Price. Under no circumstances shall the Exercise Price of the Warrant change. Therefore, in the case of a reverse
stock split or recapitalization or any other event, subsequent to any such event, the Exercise Price shall remain $.001.

 

4. Notices
to Warrant Holders. So long as this Warrant shall be outstanding and unexercised if the Company shall take any action which
would trigger an adjustment (as set forth in Section 3), then, in any such case, the Company shall cause to be delivered to the
Holder, at least ten days prior to the date specified in (x) or (y) below, as the case may be, a notice containing a brief description
of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend, distribution
or rights, or (y) such reclassification, reorganization, consolidation, merger, conveyance; lease, dissolution, liquidation or
winding up is to take place and the date, if any, is to be fixed, as of which the holders of Common Stock of record shall be entitled
to exchange their common stock for securities or other property deliverable upon such reclassification, reorganization, consolidation,
merger, conveyance, dissolution, liquidation or winding up.

 

5. Officer’s
Certificate. Whenever the number of common stock issuable upon exercise of this Warrant or the Exercise Price shall be adjusted
as required by the provisions hereof, the Company shall forthwith file in the custody of its Secretary or an Assistant Secretary
at its principal office, and with its stock transfer agent, if any, an officer’s certificate showing the adjusted number
of common stock or Exercise Price determined as herein provided and setting forth in reasonable detail the facts requiring such
adjustment. Each such officer’s certificate shall be made available at all reasonable times for inspection by the Holder
and the Company shall, forthwith after each such adjustment, deliver a copy of such certificate to the Holder. Such certificate
shall be conclusive as to the correctness of such adjustment.

 

6. Restrictions
on Transfer. The Holder of this Warrant, by acceptance thereof; agrees that, absent an effective registration statement, under
the Securities Act of 1933 (the “Act”), covering the disposition of this Warrant or the Common Stock issued or issuable
upon exercise hereof, such Holder will not sell or transfer any or all of this Warrant or such Common Stock without first providing
the Company with an opinion of counsel reasonably satisfactory to the Company to the effect that such sale or transfer will be
exempt from the registration and prospectus delivery requirements of the Act. The certificates evidencing the Warrant and Common
Stock which will be delivered to such Holder by the Company shall bear substantially the following legend:

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN
ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REQUIREMENTS FOR SUCH REGISTRATION FOR NONPUBLIC OFFERINGS. ACCORDINGLY, THE SALE,
TRANSFER. PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES EVIDENCED HEREBY OR ANY PORTION THEREOF OR INTEREST THEREIN
MAY NOT BE ACCOMPLISHED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THAT ACT OR AN OPINION OF COUNSEL TO THE HOLDER
OF THE SECURITIES (UNLESS THE COMPANY DETERMINES IN ITS SOLE DISCRETION TO USE ITS OWN COUNSEL), WITH ANY SUCH COUNSEL AND OPINION
OF COUNSEL TO BE REASONABLY ACCEPTABLE TO THE ISSUER, TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

 

    	 	6 of 11	 

     

    

 

Each
Holder of this Warrant, at the time all or a portion of such Warrant is exercised, agrees to make such written representations
to the Company as counsel for the Company may reasonably request, in order that the Company may be reasonably satisfied that such
exercise of the Warrant and consequent issuance of Common Stock will not violate the registration and prospectus delivery requirements
of the Act, or other applicable state securities laws.

 

7.
 Piggyback Registration Rights. If, at any time after the Issue Date and expiring
on the Expiration Date, the Company proposes to register any of its securities under the Act either for its own account or for
the account of others, in connection with the public offering of such equity securities solely for cash, on a registration form
that would also permit the registration of the common stock issuable upon exercise of this Warrant (“Warrant Shares”),
the Company shall promptly give the Holder written notice of such proposal. Within thirty (30) days after the notice is given,
the Holder shall give notice as to the number of Warrant Shares, if any, which have vested and which the Holder requests be registered
simultaneously with such registration by the Company. The Company shall use its best efforts to include such Warrant Shares in
such registration statement (or in a separate registration statement concurrently filed) which the Holder requests to be so included
and to cause such registration statement to become effective with respect to such shares in accordance with the registration procedures
set forth in Section 8 hereof. If at any time after giving written notice of its intention to register equity securities and before
the effectiveness of the registration statement filed in connection with such registration, the Company determines for any reason
either not to effect such registration or to delay such registration, the Company may, at its election, by delivery of written
notice to the Holder, (i) in the case of a determination not to effect registration, relieve itself of a reasonably necessary
portion of its obligation to register the Warrant Shares under this Section 7 in connection with such registration, or (ii) in
the case of a determination to delay registration, delay the registration of the Warrant Shares under this Section 7 for the same
period as the delay in the registration of such other equity securities. Each Holder of Warrant Shares requesting inclusion in
a registration pursuant to this Section 7 may, at any time before the effective date of the registration statement relating to
such registration, revoke such request by delivering written notice of such revocation to the Company (which notice shall be effective
only upon receipt by the Company); provided, however, that if the Company, in consultation with its financial and legal
advisors, determines that such revocation would require a recirculation of the prospectus contained in the registration statement,
then such Holder of Warrant Shares shall have no right to revoke its request.

 

    	 	7 of 11	 

     

    

 

8.
 Expenses and Procedures.

 

(A) Expenses
of Registration. All registration expenses (exclusive of underwriting discounts and commissions) shall be borne by the Company;
provided, however, that if a Holder revokes a registration request pursuant to the last sentence of Section 7, the registration
expenses in connection with such revoked registration shall be borne by such Holder. Each Holder of Warrant Shares shall bear
all underwriting discounts, selling commissions, sales concessions and similar expenses applicable to the sale of the Warrant
Shares sold by such Holder.

 

(B) Registration
Procedures. In the case of the registration, qualification or compliance effected by the Company pursuant to Section 7 hereof,
the Company will keep the Holders of Warrant Shares advised as to the initiation of registration, qualification and compliance
and as to the completion thereof. At its expense, the Company will furnish such number of prospectuses and other documents incident
thereto as the Holders or underwriters from time to time may reasonably request.

 

(C) Information.
The Company may require each seller of Warrant Shares as to which any registration is being effected to furnish such information
regarding the distribution of such Warrant Shares as the Company may from time to time reasonably request and the Company may
exclude from such registration the Warrant Shares of any seller who unreasonably fails to furnish such information after receiving
such request.

 

(D) Blue
Sky. The Company will, as expeditiously as possible, use its best efforts to register or qualify the Warrant Shares covered
by a registration statement at the expense of the Company in such jurisdictions as the holders of such Warrant Shares or, in the
case of an underwritten public offering, the managing underwriter shall reasonably request at the expense of the Holders of the
Warrant Shares being registered provided that the Company shall not be required in connection with any such registration or qualification
or as a condition thereto to qualify to do business in any jurisdiction where it is not so qualified or to take any action which
would subject it to taxation or service of process in any jurisdiction where it is not otherwise subject to such taxation or service
of process.

 

(E) Notification
of Material Events. The Company will, as expeditiously as possible, immediately notify each holder of Warrant Shares under
a registration statement, at any time when a prospectus relating thereto is required to be delivered under the Act, of the happening
of any event as a result of which the prospectus contained in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing and, as expeditiously as possible, amend or supplement
such prospectus to eliminate the untrue statement or the omission.

 

    	 	8 of 11	 

     

    

 

9. Indemnification.

 

(A) Indemnification
by Company. The Company shall, without limitation as to time, indemnify and hold harmless, to the full extent permitted by
law, each holder of Warrant Shares, its officers, directors, agents and employees, each person who controls such holder (within
the meaning of Section 15 of the Act or Section 20 of the Securities Exchange Act of 1934, as amended, hereinafter the “Exchange
Act”), and the officers, directors, agents or employees of any such controlling person, from and against all losses, claims,
damages, liabilities, costs (including, without limitation, all reasonable attorneys’ fees) and expenses (collectively “Loss”
or “Losses”), as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material
fact contained in any registration statement, prospectus or preliminary prospectus or any amendment or supplement thereto, or
arising out of or based upon any omission or alleged omission of a material fact required to be stated therein or necessary to
make the statements therein in light of the circumstances under which they were made (in the case of any prospectus) not misleading,
except insofar as the same are based solely upon information furnished to the Company by such holder for use therein; provided,
however, that the Company shall not be liable in any such case to the extent that any such Loss arises out of or is based upon
an untrue statement or alleged untrue statement or omission made in any preliminary prospectus or prospectus if (i) such holder
failed to send or deliver a copy of the prospectus or prospectus supplement with or prior to the delivery of written confirmation
of the sale of Warrant Shares and (ii) the prospectus or prospectus supplement would have corrected such untrue statement or omission.
If requested, the Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry
professionals participating in the distribution, their officers, directors, agents and employees and each person who controls
such persons (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) to the same extent as provided above
with respect to the indemnification of the Holders of Warrant Shares. It is agreed that the indemnity agreement contained in this
Section 9(A) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the consent
of the Company (which consent has not been unreasonably withheld).

 

(B) Conduct
of Indemnification Proceedings. If any action or proceeding (including any governmental investigation or inquiry) shall be
brought or any claim shall be asserted against any person entitled to indemnity hereunder (an “Indemnified Party”),
such indemnified party shall promptly notify the party from which such indemnity is sought (the “Indemnifying Party”)
in writing, and the indemnifying party shall assume the defense thereof including the employment of counsel reasonably satisfactory
to the indemnified party and the payment of all fees and expenses incurred in connection with the defense thereof. All such fees
and expenses (including any fees and expenses incurred in connection with investigation or preparing to defend such action or
proceeding) shall be paid to the indemnified party, as incurred, within 20 days of written notice thereof to the indemnifying
party; provided, however, that if, in accordance with this Section 9, the indemnifying party is not liable to the indemnified
party, such fees and expenses shall be returned promptly to the indemnifying party. Any such indemnified party shall have the
right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be the expense of such indemnified party unless (a) the indemnifying party has agreed to pay
such fees and expenses, (b) the indemnifying party shall have failed promptly to assume the defense of such action, claim or proceeding
and to employ counsel reasonably satisfactory to the indemnified party in any such action, claim or proceeding, or (c) the named
parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the
indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses
available to it which are different from or additional to those available to the indemnifying party (in which case, if such indemnified
party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of
such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action,
claim or proceeding or separate but substantially similar or related actions, claims or proceedings in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate
firm of attorneys (together with appropriate local counsel) at any time for all such indemnified parties, unless in the opinion
of counsel for such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified
parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the
fees and expenses of such additional counsel or counsels). No indemnifying party will consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the release of such indemnified party from all liability
in respect to such claim or litigation without the written consent (which consent will not be unreasonably withheld) of the indemnified
party. No indemnified party shall consent to entry of any judgment or enter into any settlement without the written consent (which
consent will not be unreasonably withheld) of the indemnifying party from which indemnify or contribution is sought.

 

    	 	9 of 11	 

     

    

 

(C) Contribution.
If the indemnification provided for in this Section 9 is unavailable to an indemnified party under Section 9(A) or 9(B) hereof
(other than by reason of exceptions provided in those Sections) in respect of any Losses, then each applicable indemnifying party
in lieu of indemnifying such indemnified party shall contribute to the amount paid or payable by such indemnified party as a result
of such Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party
in connection with the actions, statements or omissions which resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such indemnifying party and the indemnified party shall be determined by reference to, among
other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or
omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by such indemnifying
party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed
to include, subject to the limitations set forth in Section 9(B), any legal or other fees or expenses reasonably incurred by such
party in connection with any action, suit, claim, investigation or proceeding.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9(C) were determined by
pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred
to in the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

10. Loss
or Mutilation. Upon receipt by the Company of evidence satisfactory to it (in the exercise of reasonable discretion) of the
ownership of and the loss, theft, destruction or mutilation of any Warrant and (in the case of loss, theft or destruction) of
indemnity satisfactory to it (in the exercise of reasonable discretion), and (in the case of mutilation) upon surrender and cancellation
thereof, the Company will execute and deliver in lieu thereof a new Warrant of like tenor.

 

11. Reservation
of Shares. The Company shall at all times reserve and keep available for issue upon the exercise of Warrants such number of
its authorized but unissued common stock as will be sufficient to permit the exercise in full of all outstanding Warrants.

 

    	 	10 of 11	 

     

    

 

12. Notices.
All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered
or certified mail, postage prepaid, to the address furnished to the Company in writing by the last Holder of this Warrant who
shall have furnished an address to the Company in writing.

 

13. Change;
Waiver. Neither this Warrant nor any term hereof may be changed, waived, discharged or terminated orally but only by an instrument
in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought.

 

14. Law
Governing. This Warrant shall be construed and enforced in accordance with and governed by the laws of the State of Nevada.

 

DATED:March
1, 2017

 

	 	MyDx,
    Inc.
	 	A
    Nevada corporation
	 	 
	 	By:	/s/
                                         Daniel Yazbeck

	 	 	Daniel
    Yazbeck
	 	 	Chief
    Executive Officer

 

    	 	11 of 11	 

     

    

 

EXHIBIT
“B”

Acknowledgement
of Introduction

 

As
evidenced by affixing the below signature to this document, for the purposes of consummating a business relationship with the
below referred to party and in accordance with BCI Advisors, LLC (“BCI") obligations as defined in Section 3 of a Consulting
Agreement executed on December 1, 2016 (the "Agreement"), MyDx, Inc. ("Chilco"), hereby acknowledges that
BCI has provided a business introduction (the "Introduction") to:

 

___________________________________________________________
(the "Subject")

 

Prior
to BCI's Introduction to the Subject, MYDX did not know of the existence of the Subject and further did not have a business relationship
with the Subject. The Subject is therefore a BCI Protected Relationship, as the term is defined in the Agreement.

 

Acknowledged
this _____ day of _________________________, 2016.

 

	MyDx, INC.	 
	 	 	 
	By:
	/s/ Daniel Yazbeck	 
	 	Daniel Yazbeck	 
	Its:
	Chief Executive Officer	 

 

    	Advisory
                                         Services Agreement
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EXHIBIT
“C”

 

RESERVATION
OF PAYMENT SHARES

 

THIS
RESERVATION OF SHARES (the “Agreement”) is dated as of December 1, 2016 among (i) MyDx, a Nevada corporation
("MyDX" and individually a “Party”), (ii) BCI Advisors, LLC, a Delaware limited liability
company (“BFI” and individually a “Party”), and (iii) Nevada Agency and Transfer Company
(the “Transfer Agent” and individually a “Party”). MYDX, BCI and the Transfer Agent may
hereinafter be referred to collectively as the “Parties.”

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants and other agreements described in this Agreement, and for good and valuable
consideration, receipt of which is hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE
I

 

DELIVERIES
TO THE TRANSFER AGENT

 

1.1 MYDX
Reservation. Simultaneously upon execution of this the BCI Advisory Services Agreement (the “Closing”),
the Transfer Agent shall transfer from MyDX treasury the Shares Pool which shall be reserved for the benefit of BCI pursuant to
the terms of the Agreement and MYDX ESOP..

 

1.2 Transfer
Agent Compensation The Transfer Agent shall receive $1,000 as compensation and consideration for acting as Transfer Agent
pursuant to the terms of this Agreement. Such compensation as described in this section shall be due and payable to the Transfer
Agent by MyDX.

 

1.3 Intention
to Restrict Issuance of the Settlement Shares Pool. MyDX intends that the Shares Pool shall be reserved by the Transfer Agent
pursuant to this Agreement and the Advisory Agreement. MyDX hereby instructs the Transfer Agent to reserve the Settlement Shares
Pool for the sole benefit of issuance to BCI pursuant to the terms of the Advisory Agreement and acknowledges these shares may
not be issued for any other purpose other than pursuant to the BCI Advisory Agreement at the sole instruction of BCI. The Settlement
Shares Pool shall be noted in the MyDX shareholder list as of the date hereof.

 

1.4 Transfer
Agent Deliveries. The Transfer Agent shall hold and release the the Shares Pool only in accordance with the terms and conditions
of this Agreement and the Advisory Agreement.

 

1.5 Ownership
and Dispositive Rights. All Shares held in the reserve Pool shall be deemed owned and under the voting control of the Company
until released (and, once released, deemed owned by the person to whom released) from escrow, for purposes of Section 13 and Section
16 of the Securities Exchange Act of 1934, as amended.

 

ARTICLE
II

 

RELEASE
OF Settlement Shares

 

2.1 Disbursement
of Shares. The Transfer Agent shall release the Shares from the the Shares Pool upon BCI’s delivery to the Transfer
Agent of a notice of conversion (a “Conversion Demand” a form of which has been attached hereto as Exhibit
which shall state: (i) the amount being redeemed; and (ii) the current balance of the Amount remaining after each Conversion
Demand. Such issuance of Shares pursuant to a Issuance Demand as described herein shall be at the sole discretion of BCI and shall
require no action on the part of MyDx unless otherwise agreed to in writing between the parties.

 

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                                         Services Agreement
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2.2 Acknowledgement
of BCI, MyDX and Transfer Agent; Disputes. The Parties acknowledge that the only terms and conditions upon which the Shares
Pool are to be released are set forth in this Agreement. The Parties reaffirm their agreement to abide by the terms and conditions
of this Agreement with respect to the rAdvisory Agreement from the Shares Pool. Any dispute with respect to the release of Shares
Pool shall be resolved pursuant to this Agreement or by written agreement between BCI and MyDx.

 

2.3Continuity
of Transfer Agent Relationship.As long as any of the shares underlying the Settlement Shares Pool remain in reservation
for BCI’s benefit under this Agreement, MyDx hereby warrants and represents they will not terminate, and pursuant to the
terms of this Agreement, shall not be entitled to terminate, their current relationship with the Transfer Agent without prior
written consent of BCI. This Section 2.3 shall survive and supersedes any prior agreements between the Transfer Agent and MyDx.

 

ARTICLE
III

 

CONCERNING
THE TRANSFER AGENT

 

3.1 Duties
and Responsibilities of the Transfer Agent. The Transfer Agent's duties and responsibilities shall be subject to the following
terms and conditions:

 

(a) The
Parties acknowledge and agree that the Transfer Agent (i) once in receipt of a Redemption or Payment Demand from BCI, shall not
be responsible for or bound by, and shall not inquire into whether BCI is entitled to receipt of Shares pursuant to, any other
agreement or otherwise; (ii) shall be obligated only for the performance of such duties as are specifically assumed by the Transfer
Agent pursuant to this Agreement; (iii) may rely on and shall be protected in acting or refraining from acting upon any written
notice, including notice by facsimile transmission, instruction, instrument, statement, request or document furnished to it hereunder
and believed by the Transfer Agent in good faith to be genuine and to have been signed or presented by the proper person or Party,
without being required to determine the authenticity or correctness of any fact stated therein or the propriety or validity or
the service thereof; and (iv) may assume that any person believed by the Transfer Agent in good faith to be authorized to give
notice or make any statement or execute any document in connection with the provisions hereof is so authorized.

 

(b) The
Transfer Agent may at any time resign as Transfer Agent hereunder by giving fifteen (15) days prior written notice of resignation
to BCI and MyDx. Prior to the effective date of the resignation as specified in such notice, BCI will issue to the Transfer Agent
instructions authorizing delivery of the Shares Pool to a substitute Transfer Agent selected by, and in the sole discretion of
BCI. Only in the event no successor Transfer Agent is named by BCI, the Transfer Agent may apply to a court of competent jurisdiction
in the State of __________ or Florida for appointment of a successor Transfer Agent, and to deposit the Shares Pool with the clerk
of any such court.

 

(c) In
the event of a dispute with respect to entitlement to any properties held by the Transfer Agent, the Transfer Agent may deposit
said disputed properties with the Courts of the State of ___________ or Florida after giving ten (10) days notice to BCI and MyDx
and shall be absolved from all further liability with respect thereto. The Transfer Agent hereby acknowledges receipt of a $1,000
deposit from the Parties for reimbursement of any future fees and costs incurred by Transfer Agent as a result of such interpleader
action. Upon termination of the Agreement, this $1,000 deposit shall be automatically returned directly to BCI by the Transfer
Agent.

 

(d) The
Parties acknowledge that the Transfer Agent is acting solely as a stakeholder at their request and that the Transfer Agent shall
not be liable for any action taken by Transfer Agent in good faith and believed by Transfer Agent to be authorized or within the
rights or powers conferred upon Transfer Agent by this Agreement. The Parties agree to indemnify and hold harmless the Transfer
Agent for any action taken by the Transfer Agent, except in the case of negligence or willful misconduct on the Transfer Agent's
part committed in its capacity as Transfer Agent under this Agreement.

 

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                                         Services Agreement
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(e) The
provisions of this Section shall survive the resignation of the Transfer Agent or the termination of this Agreement.

 

3.2 Dispute
Resolution: Judgments. If any dispute shall arise with respect to the delivery, ownership, right of possession or disposition
of the Shares Pool the Transfer Agent shall continue to follow the terms of the Agreement and issue shares of MyDX Common Stock
pursuant to a Payment Demand unless the Transfer Agent (i) receives instructions from BCI, or (ii) deposits the Shares Pool with
any court of competent jurisdiction in Nevada or Florida, in which event the Transfer Agent shall give ten (10) days written notice
thereof to MyDX and BCI and shall after such ten (10) day period be relieved and discharged from all further obligations pursuant
to this Agreement.

 

3.3 Maximum
Conversion. The Transfer Agent and MyDX shall not issue to BCI, upon a Payment Demand, a number of shares of MyDX’s
Common Stock which would result in beneficial ownership by BCI and its affiliates of more than 4.99% of the outstanding shares
of Common Stock of MyDX on the date of such a Conversion Demand, without specific instructions from BCI acknowledging BFI’s
intention to receive shares in excess of such 4.99% restructuring. For the purposes of the provision to 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.

 

ARTICLE
IV

 

GENERAL
MATTERS

 

4.1 Termination.
This Agreement shall terminate upon the final release of all of the shares underlying the Shares Pool or at any time upon written
notice by BCCII.

 

4.2 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such Party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be:

 

	
        If to MyDx, to:

         

        Daniel Yazbeck, CEO

        6335 Ferris Square Suite B

        San Diego, CA 92121
	
        If to BCI, to: 

        C. Pugatch 101 NE 3rd Avenue

        Suite 1800 Fort Lauderdale, Fl 33301

         

         

	 	 
	
        If to the Transfer Agent, to:

        Nevada Agency and Transfer Company

        50 West Liberty St

        Suite 880

        Reno, NV 89501
	 

 

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                                         Services Agreement
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                                         of 18	 

     

    

 

4.3 Assignment;
Binding Agreement. Neither this Agreement nor any right or obligation hereunder shall be assignable by any Party without the
prior written consent of BCI. This Agreement shall enure to the benefit of and be binding upon the Parties hereto and their respective
legal representatives, successors and assigns.

 

4.4 Severability.
In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal, or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended
that all of the rights and privileges of the Parties hereto shall be enforceable to the fullest extent permitted by law.

 

4.5 Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile transmission and delivered by facsimile transmission.

 

4.6 Agreement.
Each of the undersigned states that he has read the foregoing Agreement and understands and agrees to it.

 

4.7 Entire
Agreement. This Agreement along with Settlement Agreement constitute the entire agreement between the Parties hereto pertaining
to the Settlement Shares Pool and supersedes all prior agreements, understandings, negotiations and discussions, whether oral
or written, of the Parties. There are no warranties, representations and other agreements made by the Parties in connection with
the subject matter hereof except as specifically set forth in this Agreement and the Settlement Agreement.

 

4.8 Waivers
and Amendments. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions
hereof may be waived, only by a written instrument signed by all Parties, or, in the case of a waiver, by the Party waiving compliance.
Except as expressly stated herein, no delay on the part of any Party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power or privilege hereunder preclude
any other or future exercise of any other right, power or privilege hereunder.

 

4.9 Headings.
The division of this Agreement into articles, sections, subsections and paragraphs and the insertion of headings are for convenience
of reference only and shall not affect the construction or interpretation of this Agreement.

 

    	Advisory
                                         Services Agreement
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                                         of 18	 

     

    

 

4.10 Law
Governing this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida
without regard to principles of conflicts of laws. Excluding any interpleader action brought in connection with the Transfer Agent’s
duties under this Agreement as described in Section 3, any action brought by any Party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of Florida or in the federal courts located in the state
of Florida. All Parties and the individuals executing this Agreement agree to submit to the jurisdiction of such courts
and waive trial by jury. The prevailing party (which shall be the Party which receives an award most closely resembling
the remedy or action sought) shall be entitled to recover from the other Party its reasonable attorney's fees and costs. In the
event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

 

4.11 Specific
Enforcement, Consent to Jurisdiction. The Parties acknowledge and agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the Parties shall be entitled to an injuction or injunctions to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition to
any other remedy to which any of them may be entitled by law or equity. The Parties hereby waives, and agrees not to assert in
any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit,
action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing
in this Section shall affect or limit any right to serve process in any other manner permitted by law.

 

SIGNATURE
PAGE FOLLOWS

 

THE
REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

 

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                                         Services Agreement
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SIGNATURE
PAGE

 

IN
WITNESS WHEREOF, the Parties have duly executed this Agreement as of the day and year first written above.

 

	MYDX:	 	BFI:
	 	 	 
	MYDX,
    Inc.	 	BCI
    Advisors, LLC
	 	 	 	 	 
	By:	/s/
    Daniel
    Yazbeck 	 	By:	/s/ E.Galvin
	 	Daniel
    Yazbeck	 	 	E.Galvin
	Its:	CEO	 	Its:	Administrative
    Manager
	 	 	 	 	 
	TRANSFER
    AGENT	 	 	 
	 	 	 	 
	Nevada
    Agency and Transfer Company  	 	 	 
	 	 	 	 	 
	By:		 	 	 
	Its:	President	 	 	 

   

    	Advisory
                                         Services Agreement
 Page 17
                                         of 18	 

     

    

 

EXHIBIT
B

 

Form
of Payment Demand

 

Dated
_______________

 

Pursuant
to the terms of the BCI Advisory Agreement Reservation of Shares Agreement (collectively the “Agreements”)
by and between (i) MYDX, Inc. a Nevada corporation ("MYDX"), (ii)
BCI Advisors, LLC, a Delaware limited liability company (“BFI”), and (iii) _______________, INC., a _____ corporation,
(the “Transfer Agent”), copies of which have already been delivered to your offices, BCI hereby demands the
issuance of _________ shares of MYDXs common stock (the “Payment Shares”) pursuant to the Agreements. The Shares
are to be issued via DWAC as follows:

 

Issue
Name and Address

 

	Amount of Payment Demand	 	$		 
	Number of Shares to be Issued	 	 	 	 
	Remaining Reserved Shares Amount	 	$	 

	 

 

Very
truly yours,

 

BCI
Advisors, LLC

 

 

 

Advisory Services Agreement

Page  18 of 18

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