Document:

EX-10.4

 Exhibit 10.4 

ASSIGNMENT OF RENTS AND LEASES 

made by 
 EWSD I LLC

 as Assignor, 

to 
 SOUTHWEST FARMS,
INC., 
 as Assignee 

Dated as of August 7, 2015 

 ASSIGNMENT OF RENTS AND LEASES 

This Assignment of Rents and Leases (this “Assignment”) is made as of August 7, 2015 by EWSD I LLC, an Arizona limited
liability company (together with its successors and assigns, “Assignor”), whose address is                     , to SOUTHWEST FARMS,
INC., a Colorado corporation (herein, together with its successors and assigns, including each and every from time to time owner of the Note hereinafter referred to, called “Assignee”), whose address is
                    . 
 WITNESSETH:

 FOR VALUE RECEIVED, Assignor hereby grants, transfers, assigns and sets over to Assignee all of the right, title and interest of
Assignor in and to (i) all of the rents, issues, profits and avails and other sums of every kind and nature (including, but not limited to, payments or contributions for taxes, operating expenses and the like) (collectively, the
“Rents”) payable by tenants (or guarantors) under Leases (hereinafter defined), of and from the premises (the “Premises”), legally described in Exhibit A attached hereto and made a part hereof, (ii) all
leases (herein generally called “Leases”) now or hereafter existing on all or any part of the Premises, including, but not limited to, those certain leases of the Premises which are in existence as of the date of this Assignment
(“Existing Leases”), if any, and any and all guarantees of any of the obligations of the tenant under any or all of the Leases, (iii) rights and claims for damages against tenants arising out of defaults under Leases, including
rights to compensation with respect to rejected Leases pursuant to Section 365(a) or replacement section thereto of the Bankruptcy Code of the United States, and (iv) the proceeds (“Proceeds”) payable upon exercise of any
option, including an option to terminate or an option to purchase contained in any Lease. 
 WITHOUT LIMITING THE GENERALITY OF THE FOREGOING: 

1. Assignment. Assignor hereby grants, transfers and assigns to Assignee all of the right, title and interest of Assignor
in and to the Leases, in and to the Proceeds and possession of the Premises, including any and all of the Rents now due or which may hereafter become due under and by virtue of any lease (including the Existing Leases), whether written or oral, or
any letting of, or any agreement for the use or occupancy of, any part of the Premises that may have been heretofore or may be hereafter made or agreed to between Assignor or any other present, prior or subsequent owner of the Premises or any
interest therein or that may be made or agreed to by Assignee, its successors or assigns under the powers herein granted, and any tenant or occupant of all or any part of the Premises, for the purpose of securing: 

(a) Payment of the indebtedness evidenced by that certain Secured Promissory Note (as the same may be amended, modified, supplemented, or
restated from time to time, the “Note”), in the principal amount of $3,670,000, and any extensions, modifications or renewals thereof, executed by Assignor, East West Secured Developments, LLC, an Arizona limited liability company,
Brian Loiselle, an individual, and Todd Johnson, an individual (together, jointly and severally, the “Borrower”), and dated of even date herewith, payable to the order of Assignee, which Note is secured by a Deed of Trust, Security
Agreement, and Financing Statement (as the same may be amended, modified, supplemented, or restated from time to time, the “Deed of Trust”) dated of even date herewith, to Assignee, as beneficiary, upon the Premises, which Deed of
Trust and Note are held by or for the benefit of Assignee; 
 (b) Payment of all other sums with interest thereon becoming due and payable to
Assignee herein and in the Note, the Deed of Trust and the other Loan Documents (as defined in the Deed of Trust); and 
 (c) Performance and
discharge of each and every term, provision, condition, obligation, covenant and agreement of Assignor herein and in the Note, the Deed of Trust and the other Loan Documents. 

2. Representations. Assignor hereby represents and agrees that (a) Assignor is the lessor under the Existing Leases,
if any, in each case either directly or as successor in interest to the named lessor thereunder; (b) there are no defaults under any of the Existing Leases, if any; (c) Assignor is entitled to receive all of the Rents, and to enjoy all the
other rights and benefits mentioned herein and assigned hereby; (d) the same have not been heretofore sold, assigned, transferred or set over by any instrument now in force, and will not at any time during the life of these presents be sold,
assigned, transferred or set over by Assignor or by any person or persons whosoever except subject to this Assignment; and (e) Assignor has good right to sell, assign, transfer and set over the same, and to grant and confer upon Assignee the
rights, interest, powers and/or authorities herein granted and conferred. 

 3. Other Instruments. Assignor will from time to time execute, upon request of
Assignee, any and all instruments requested by Assignee to carry this instrument into effect or to accomplish any other purposes deemed by Assignee to be necessary or appropriate in connection with this Assignment or the Premises, including, without
limitation, specific assignments of any Lease or agreement relating to use or occupancy of the Premises or any part thereof now or hereafter in effect and not specifically defined herein as an Existing Lease, as may be necessary or desirable, in the
opinion of Assignee, to constitute the same as an Existing Lease hereunder. 
 4. No Restriction. This Assignment shall in no
way operate to restrict or prevent Assignee from pursuing any remedy which Assignee now or hereafter may have because of any present or future breach of the terms or conditions of the Deed of Trust, the Note or any of the other Loan Documents. 

5. No Liability. Assignee shall not in any way be responsible for failure to do any or all of the things for which rights,
interest, powers and/or authority are herein granted to Assignee; and Assignee shall not be responsible for or liable upon any of the agreements, undertakings or obligations imposed upon the lessor under any Lease or other agreement with respect to
the Premises. 
 6. Cash Receipts. Assignee shall be accountable only for such cash as Assignee actually receives under the
terms hereof. 
 7. No Waiver or Estoppel. Failure of Assignee to do any of the things or exercise any of the rights,
interests, powers and/or authorities hereunder shall not be construed to be a waiver of any of the rights, interests, powers or authorities hereby assigned and granted to Assignee, and shall not operate as an estoppel against Assignee in any
respect, or be deemed to amend any provision hereof of any of the other Loan Documents. 
 8. Transfer. Assignee shall assign
this Assignment and any and all rights accruing hereunder to any subsequent assignee and holder of the Note and Deed of trust. 
 9.
Absolute Assignment. It is understood that the assignment of rents and leases of and from the Premises as effected by this Assignment is an absolute assignment which is effective as of the date hereof, and upon demand by Assignee to the
lessee under any Lease or to any person liable for any of the Rents of and from the Premises or any part thereof, such lessee or person liable for any of such Rents shall be, and is hereby authorized and directed to, pay to or upon the order of
Assignee, and without inquiry of any nature, all rents then owing or thereafter accruing under said Leases or any other instrument or agreement, oral or written, giving rise to an obligation to pay Rents in connection with the Premises. 

10. Collection of Rents Prior to an Default. So long as there shall exist no default by Borrower in the payment of any
indebtedness secured hereby or in the performance of any obligation, covenant or agreement herein or in the Note, the Deed of Trust or other Loan Documents, Assignee shall not demand from lessees under said Leases or other persons liable therefor
any of the Rents hereby assigned, but shall permit Assignor to collect, upon but not prior to accrual, all such Rents from the Premises and the Leases, and to retain and enjoy the same; provided that, notwithstanding the provisions of this
Section 10, all lessees under said Leases and all other persons liable for Rents of and from the Premises shall comply with any demands for Rents made by Assignee pursuant to the provisions of this Assignment without regard to whether or not
the same are made in compliance with this Section 10. 
 11. Default. Upon or at any time after default in the payment of
any indebtedness evidenced by the Note or secured hereby or by the Deed of Trust, or default in the performance of any term, provision, condition, obligation covenant or agreement herein or in the Note, Deed of Trust or any of the other Loan
Documents and the expiration of any period of grace with respect to any such default as provided for herein or in the Note, Deed of Trust or other Loan Documents without the cure of such default, or if any representation or warranty made by Assignor
herein or by Borrower in any of the other Loan Documents shall prove untrue in any material respect, Assignee may declare all sums secured hereby immediately due and payable, and may, at Assignee’s option, without notice, either in person or by
agent, with or without bringing any action or proceeding, or by a receiver to be appointee by a court, enter upon, take possession of, and manage and operate the Premises and each and every part and parcel thereof; repair, maintain and improve the
Premises, employ contractors, subcontractors and workmen in and about the Premises, obtain and evict tenants, in its own name sue for or otherwise collect or reserve any and all Rents including those past due and unpaid, employ leasing agents,
managing agents, attorneys (including retained firms and in-house staff) and accountants in connection the enforcement of Assignee’s rights hereunder and pay the reasonable fees and expenses thereof, and otherwise do and perform any and all
acts and things which Assignee may deem necessary or appropriate in and about the Premises for the protection thereof or the enforcement of Assignee’s rights hereunder or under the Note, Deed of Trust or other Loan Documents; and any and all
amounts expended by Assignee in connection 

  
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with the foregoing shall constitute so much additional indebtedness secured hereby and by the Deed of Trust and the other Loan Documents; provided that (a) Assignee shall apply any monies
collected by Assignee, as aforesaid, less costs and expenses incurred, as aforesaid, upon any indebtedness secured hereby in such order and manner as Assignee may determine, and (b) the entering upon and taking possession of the Premises, the
collection of Rents, the exercise of any of the rights hereinabove specified and the application of collections, as aforesaid, shall not cure, waive, modify or affect any default hereunder or under the Note, Deed of Trust or other Loan Documents.

 12. Authorization. Any tenants or occupants of any part of the Premises (including, without limitation, all persons
claiming any interest as lessee under the Existing Leases) are hereby authorized to recognize the claims and demands of Assignee hereunder without investigating the reason for any action taken by Assignee or the validity or the amount of
indebtedness owing to Assignee or the existence of any default hereunder or under the Note, Deed of Trust or other Loan Documents or the application to be made by Assignee of any amounts to be paid to Assignee; and (a) the sole signature of
Assignee shall be sufficient for the exercise of any rights under this Assignment, and the sole receipt of Assignee for any sums received shall be a full discharge and release therefor to any such tenant or occupant of the Premises, and
(b) checks for all or any part of the Rents collected under this Assignment shall be drawn or made payable to the exclusive order of Assignee. 

13. No Obligation. Assignee shall not be obligated to perform or discharge, and Assignee does not hereby undertake to perform or
discharge, any obligation, duty or liability under the Lease, nor shall this Assignment operate to place upon Assignee responsibility for the control, care, management or repair of the Premises or the carrying out of any of the terms and conditions
of the Leases; nor shall this Assignment operate to make Assignee responsible or liable for any waste committed on the Premises by the lessee under any Lease or any other party, or for any dangerous or defective condition of the Premises, or for any
negligence in the management, upkeep, repair or control of the Premises resulting in loss or injury or death to any tenant, licensee, employee or stranger, and nothing herein or in the Deed of Trust, and no exercise by Assignee of any of the rights
herein or in the Deed of Trust conferred, shall constitute or be construed as constituting Assignee a “mortgagee in possession” of the Premises in the absence of the taking of actual possession of the Premises by Assignee pursuant to the
provisions hereof. 
 14. Indemnification. Assignor hereby agrees to indemnify, defend and hold Assignee harmless of and from
any and all liability, loss or damage which Assignee may or might incur under the Leases or under or by reason of this Assignment, and of and from any and all claims and demands whatsoever which may be asserted against Assignee by reason of any
alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants or agreements contained in the Leases; and should Assignee incur any such liability, loss or damage under any Lease or under or by reason of this
Assignment, or in the defense of any such claims or demands, the amount thereof, including costs, expenses and reasonable attorneys’ fees and expenses, shall be secured hereby and by the Deed of Trust, and Assignor shall reimburse Assignee
therefor immediately upon demand, and upon the failure of Assignor so to do, Assignee may declare all sums secured hereby immediately due and payable. The provisions of this Section 14 shall continue and remain in full force and effect after
all amounts due and payable under the Note, the Deed of Trust and the other Loan Documents shall have been paid in full and all of the obligations under the Note, the Deed of Trust and the other Loan Documents shall have been discharged in full, and
shall survive the termination of this Assignment. 
 15. No Liability for Security Deposits. Assignee has not received, and
there has not been transferred to Assignee, any security deposited by any lessee with the lessor under the terms of any Leases, and Assignee assumes no responsibility or liability for any security so deposited. 

16. Covenants. Assignor will not, without Assignee’s prior written consent, (a) enter into, modify, change, alter,
supplement, amend, terminate, accept surrender of, give any consent or approval required or permitted by, or waive or excuse any obligation of any lessee under, any of the Leases, and any attempt at any of the foregoing shall be void;
(b) execute any other assignment or pledge of the Rents from the Premises or any part thereof, or of Assignor’s interest in any of the Leases, except to Assignee; (c) execute any Lease except for actual occupancy by the lessee
thereunder; (d) permit any Leases to become subordinate to any lien other than liens securing the indebtedness secured hereby or liens for general real estate taxes not delinquent; (e) execute hereafter any Lease unless there shall be
included therein a provision providing that the lessee acknowledges that such Lease has been assigned pursuant to this Assignment and agrees not to look to Assignee as mortgagee, mortgagee in possession or successor in title to the Premises for
accountability for any security deposit required by landlord under such Lease unless such sums have actually been received in cash by Assignee as security for the lessee’s performance under such Lease; (e) approve, consent to or acquiesce
to any sublease or assignment of any Lease by any lessee thereunder; or (f) modify, change, alter, supplement, amend, terminate or accept surrender of any guaranty of any of the Leases; and any attempt at any of the foregoing shall be void.

  
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 17. No Advance Rent. Assignor hereby represents that it has not, and Assignor
hereby agrees that it will not, accept Rent in advance under any Lease (including Existing Leases) excepting only monthly rents for current months that may be paid in advance. 

18. Duties of Assignor. Assignor will (a), at Assignee’s request, cause this Assignment to be served upon the lessee under
each Lease; (b) at Assignor’s sole cost and expense, cause this Assignment to be recorded and filed and re-recorded and re-filed in each and every public office in which such filing and recording may be necessary to constitute record
notice of this Assignment and the terms and provisions hereof as applicable to the Premises; (c) at all times promptly and faithfully abide by, discharge or perform all of the covenants, conditions and agreements contained in each Lease;
(d) enforce or secure the performance of all of the covenants, conditions and agreements of the Leases on the part of the lessees to be kept and performed; (e) appear in and defend any action or proceeding arising under, growing out of or
in any manner connected with any Lease or the obligations, duties or liabilities of Assignor, as lessor, and of the lessees thereunder, and pay all costs and expenses of Assignee, including reasonable attorneys’ fees and expenses in any such
action or proceeding in whish Assignee may appear; (f) furnish to Assignee, within ten (10) days after a request by Assignee to do so, a written statement containing the names of all lessees of the Premises, or any part thereof, the terms
of their respective Leases, the spaces occupied and the rentals payable thereunder; and (g) exercise within five (5) days of the demand therefor by Assignee, any right to request from the lessee under any Lease a certificate with respect
to the status thereof. 
 19. Payment In Full of the Indebtedness. Upon payment in full of the indebtedness secured hereby,
this Assignment shall become and be void and of no effect, and Assignee shall, at the request and expense of Assignor, deliver to Assignor a release of this Assignment. A full release of the Deed of Trust, which is recorded in the appropriate real
estate records, shall be deemed to constitute a concurrent release of this Assignment. 
 20. Binding. This Assignment applies
to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns, and: (a) wherever the term “Assignor” is used herein, such reference shall be deemed to
mean each Assignor whose name appears below, severally, and all such Assignors, jointly and severally, and their respective heirs, legatees, devisees, executors, successors and assigns; and (b) wherever the term “Assignee” is used
herein, such term shall include all successors and assigns, including each and every from time to time owner and holder of the Note, of Assignee named herein, each of whom shall have, hold and enjoy all of the rights, powers and benefits hereby
afforded and conferred upon Assignee as fully and with the same effect as if such successors and assigns of Assignee were herein by name designated as Assignee; and (c) the term “Existing Leases” shall refer to the lease or leases
described in Exhibit B if so attached hereto, whether one or more than one, if any. 
 21. Bankruptcy. In the event any
lessee under the Leases should be the subject of any proceeding under the Federal Bankruptcy Code, as amended from time to time, or any other federal, state or local statute which provides for the possible termination or rejection of the Leases
assigned hereby, Assignor covenants and agrees that if any of the Leases is so terminated or rejected, no settlement for damages shall be made without the prior written consent of Assignee, and any check in payment of damages for termination or
rejection of any such Lease will be made payable both to Assignor and Assignee; and Assignor hereby assigns any such payment to Assignee, and Assignor further covenants and agrees that upon the request of Assignee, Assignor will duly endorse to the
order of Assignee any such check, the proceeds of which will be applied to whatever portions of the indebtedness secured by this Assignment that Assignee may elect. 

22. Notices. Each notice permitted or required pursuant to this Assignment shall be in writing and shall be delivered in
accordance with the notice provisions set forth in the Deed of Trust. 
 23. No Consent. Nothing herein contained shall be
deemed to imply the consent of Assignee to any Lease containing an option, right of first refusal or similar right to purchase all or any part of the Premises, and no Lease shall contain or provide for such right, and no such right shall have any
force or effect or be enforceable against the Premises or any part thereof, without the prior written consent of Assignee. 
 24.
Captions and Headings. The captions and headings of the various sections of this Assignment are for convenience only, and are not to be construed as confining or limiting in any way the scope or intent of the provisions hereof. 

  
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 25. Provisions Severable. The unenforceability, invalidity or illegality of any
provision or provisions hereof shall not render any other provision or provisions herein contained unenforceable, invalid or illegal. 

26. Pronouns. Wherever in this Assignment the context requires or permits, the singular number shall include the plural, the
plural shall include the singular, and the masculine, feminine and neuter genders shall be freely interchangeable. 
 27. Particular
Words. The words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Assignment as a whole and not to any particular section of this Assignment unless specifically
stated otherwise in this Assignment. 
 28. Applicable Law. This Assignment shall be governed and construed in accordance with
the laws of the State of Colorado. 
 29. Rights Cumulative. Each right, power and remedy herein conferred upon Assignee is
cumulative and in addition to every other right, power or remedy, express or implied, given now or hereafter existing, at law or in equity, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from
time to time as often and in such order as may be deemed expedient by Assignee, and the exercise or the beginning of the exercise of one right, power or remedy shall not be a waiver of the right to exercise at the same time or thereafter any other
right, power or remedy; and no delay or omission of Assignee or in the exercise of any right, power or remedy accruing hereunder or arising otherwise shall impair any such right, power or remedy, or be construed to be a waiver of any default or
acquiescence therein. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, Assignor has caused this Assignment of Rents and Leases to be executed as of
the date first above written. 
  
 

 
 Signature Page to Assignment of Rents and LeasesEX-10.5

 Exhibit 10.5 

PROMISSORY NOTE 
  

			
	$830,000.00	  	August 7, 2015

 For value received, EWSD I, LLC, an Arizona limited liability company, promises to pay to the order of EAST
WEST SECURED DEVELOPMENT, LLC, an Arizona limited liability company (together with its successors and assigns, the “Lender”), the principal amount of EIGHT HUNDRED THIRTY THOUSAND AND NO/100THS DOLLARS ($830,000.00) pursuant the terms of
this Note, with interest thereon as provided below. 
 1. Interest. Interest on the outstanding principal balance of this Note shall
accrue, and shall be calculated, at the rate of six percent (6.0%) per annum (the “Interest Rate”) from the date of this Note until paid in full. Interest shall be computed on the basis of actual days elapsed and a 365-day year and
shall be payable in arrears. 
 2. Payments. 

(a) Subject to the terms of Paragraph 2(b) of this Note, this Note shall be payable as follows: (i) thirty-five (35) payments of
principal and interest, which shall be calculated based upon a hypothetical amortization period of thirty (30) years, commencing on September 1, 2015 and continuing thereafter on the first day of each calendar month through and including
July 31, 2018; and (ii) one (1) final balloon payment of all unpaid principal and accrued but unpaid interest on August 31, 2018 (the “Maturity Date”). The time period from the date of this Note through and including
the satisfaction of all obligations under this Note is hereinafter referred to as the “Loan Term”. All payments against this Note shall be made in lawful money of the United States of America at East West Secured Development, LLC, 1355 N.
Greenfield Road, Mesa, AZ 85205 or at such other place as Lender may from time to time designate in writing. 
 (b) Borrower is using the
loan proceeds from this Note to partially finance the acquisition of certain real property commonly known as 214 East 39th Lane, Highway 96, Pueblo, Colorado 81006 (the “Farm”). Notwithstanding the provisions of Paragraph 2(a) of this
Note, (i) Borrower shall make a one-time payment to Lender in the amount of $300,000 on or before December 31, 2015, which shall be applied to the then-outstanding unpaid principal balance under this Note, (ii) on the date that is
five (5) business days after the Adjusted Gross Revenue (as defined below) from the Farm’s business operations first exceed $10,000,000 in the aggregate, Borrower shall make a one-time payment to Lender in the amount of $250,000, which
shall be applied to the then-outstanding unpaid principal balance under this Note, and (iii) on the date that is five (5) business days after the Adjusted Gross Revenue from the Farm’s business operations first exceed $15,000,000 in
the aggregate, Borrower shall pay to Lender all unpaid principal and accrued but unpaid interest under this Note, whereupon the debt evidenced by this Note shall be deemed to be fully and finally satisfied. As used in this Note, “Adjusted Gross
Revenue” shall mean cumulative amount of all gross revenue from the business operations of the Farm commencing from the date of the acquisition of the Farm by Borrower, net of all Colorado state sales tax imposed on cannabis, which tax
currently is 30%. 

  
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 3. Application of Payments. Payments made under this Note shall be applied first to late
charges, second to collection costs, third to accrued and unpaid interest and fourth to principal hereunder. 
 4. Default Rate. At
Lender’s option and without prior notice, upon the occurrence of an Event of Default (as defined below) or at any time during the pendency of any Event of Default under this Note or any related loan documents, Lender may impose a default rate
of interest (the “Default Rate”) equal to the lesser of (a) ten percent per annum (10%); and (b) the highest rate permitted under applicable law. The Default Rate shall remain in effect until the default has been cured and that
fact has been communicated to and confirmed by Lender. Lender’s imposition of the Default Rate shall not constitute an election of remedies or otherwise limit Lender’s rights concerning other remedies available to Lender as a result of the
occurrence of an Event of Default. In the event of a conflict between the provisions of this paragraph and any other provision of the Note, the provisions of this paragraph shall control. 

5. Late Charge. If any installment of principal or interest due or becoming due pursuant to this Note is not received in full within
thirty (30) days after the due date therefor, then Lender may, at its option, assess and collect, and Borrower shall pay, a late charge equal to four percent (4%) of the past due sum. It is agreed that this “late charge” is
reasonable in amount and is based upon the desire of Borrower and Lender to agree in advance on an amount to reimburse Lender for the anticipated expense it will incur as a result of any amount not being paid when due under this Note. 

6. Prepayments. The Borrower may at its sole and absolute discretion have the privilege of prepaying this Note, in whole or in
part, at any time without premium or penalty. Borrower shall provide Lender with written notice of Borrower’s intent to prepay this Note in full at least five (5) business days prior to delivery of such prepayment in full to Lender. Any
partial prepayment of this Note by Borrower shall have the effect of reducing the amount of the final balloon payment due hereunder but shall not delay the next scheduled payment due under this Note or reduce the next scheduled payment under this
Note (except to the extent the principal amount hereunder has been reduced and thereby the amount of accrued but unpaid interest is also reduced). 

7. Events of Default. 
 (a)
Events of Default. Any one or more of the following shall constitute an “Event of Default”: 
 (i) Any failure to pay any
principal or interest under this Note when the same shall become due and payable and such failure continues for five (5) business days after written notice thereof from Lender to Borrower, or the failure to pay any other sum due under this Note
when the same shall become due and payable and such failure continues for five (5) business days after written notice thereof from Lender to Borrower. No notice, however, shall be required after maturity of this Note. 

  
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 (ii) Any failure or neglect to perform or observe any of the covenants, conditions or provisions
of this Note and such failure or neglect continues unremedied for a period of thirty (30) days after written notice thereof from Lender to Borrower. 

(iii) Any warranty, representation or statement contained in this Note shall be or shall prove to have been false when made or furnished. 

(iv) The filing by the Borrower (or against the Borrower to which the Borrower acquiesces or that is not dismissed within 45 days after the
filing thereof) of any proceeding under the federal bankruptcy laws now or hereafter existing or any other similar statute now or hereafter in effect; the entry of an order for relief under such laws with respect to the Borrower; or the appointment
of a receiver, trustee, custodian or conservator of all or any part of the assets of the Borrower. 
 (v) The insolvency of the Borrower; or
the execution by the Borrower of an assignment for the benefit of creditors; or the convening by the Borrower of a meeting of its creditors, or any class thereof, for purposes of effecting a moratorium upon or extension or composition of its debts.

 (vi) The liquidation, termination or dissolution of the Borrower. 

(b) Acceleration. If an Event of Default shall occur, at the election of Lender, the full amount of this Note, and any other amounts due
under any of the other Loan Documents, shall become immediately due and payable without notice or demand. 
 (c) Non-Exclusive
Remedies. Upon the occurrence at any time of any Event of Default under this Note, without notice, demand or cure rights, except as specifically provided in this Note, Lender may exercise any right or remedy provided in this Note. After any
Event of Default, unless and until such Event of Default is cured satisfactorily to Lender in Lender’s sole discretion, Lender shall have the right, at its option and without any obligation, to exercise any remedy available to Lender under any
applicable law. All of Lender’s rights and remedies shall be cumulative and not alternative or exclusive, and may be exercised by Lender at such time or times and in such order of preference as Lender may determine. 

8. Waiver. No delay or omission on the part of Lender in exercising any right or remedy hereunder shall operate as a waiver of such
right or remedy or of any other right or remedy under this Note. A waiver on one occasion shall not be construed as a bar to or waiver of any such right and/or remedy on any future occasion. 

9. Costs of Collection. Borrower agrees that if, and as often as, this Note is placed in the hands of an attorney for collection or to
defend or enforce any of Lender’s rights hereunder or under any instrument relating to or securing payment of this Note, Borrower shall pay Lender its reasonable attorneys’ fees and all court costs and other expenses incurred in connection
therewith. 

  
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 10. Usury. In no event whatsoever shall the amount paid, or agreed to be paid, to Lender
for the use, forbearance, or retention of the money to be loaned hereunder (collectively, “Interest”) exceed the maximum amount permissible under applicable law. If the performance or fulfillment of any provision hereof or of any agreement
between Borrower and Lender shall result in Interest exceeding the limit for interest prescribed by law, then the amount of such Interest shall be reduced to such limit. If, from any circumstance whatsoever, Lender should receive as Interest an
amount which would exceed the highest lawful rate, the amount which would be excessive Interest shall be applied to the reduction of the principal balance owing hereunder (or, at the option of Lender, be paid over to Borrower) and not to the payment
of Interest. 
 11. Governing Law. This Note shall be governed by, and construed in accordance with, the laws of the State of
California, without regard to its conflicts of laws principles. 
 12. Notices. Any demand, request or notice which either party
hereto desires or may be required to make or deliver to the other shall be in writing and shall be deemed given upon receipt if delivered personally or by electronic mail (provided that any notice given by electronic mail is also given by one of the
other methods permitted herein), or on the next business day if delivered by overnight mail, or on the date of receipt or rejection as shown on the returned receipt if deposited in the United States Mail in registered or certified form, return
receipt requested, addressed as follows: 
 To Borrower: ESWD I, LLC 

c/o Medbox, Inc. 
 8439 West
Sunset Boulevard 
 West Hollywood, CA 90069 

Attn: Jeff Goh, President 
 With a
copy to: 
 Manatt, Phelps & Phillips, LLP 

To Lender: 
 East West Secured
Development, LLC 
 Notice of change of address shall be given by written notice in the manner detailed in this paragraph. 

  
 4 

 13. Successors. The term “Borrower” as used herein shall include the original
Borrower of this Note and any party who may subsequently become liable for the payment hereof as an assumer with the consent of Lender, provided that Lender may, at its option, consider the original Borrower of this Note alone as Borrower unless
Lender has consented in writing to the substitution of another party as Borrower. The term “Lender” as used herein shall mean Lender, or, if this Note is transferred, the then holder(s) of this Note. 

14. Invalidity. Invalidation of any of the provisions of this Note or of any article, paragraph, sentence, clause, phrase or word
herein, or the application thereof in any given circumstance, shall not affect the validity of the remainder of this Note. 
 15. Time of
Essence. Time is of the essence in the performance of each and every obligation of Borrower. 
 16. Jurisdiction; Venue. Borrower
irrevocably submits to the exclusive jurisdiction of any Federal court sitting in the State of California and any state court sitting in the County of Los Angeles, California, over any suit, action or proceeding arising out of or relating to this
Note. Borrower irrevocably waives, to the fullest extent it may effectively do so under applicable law, any objection it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any
claim that the same has been brought in an inconvenient forum. 
 17. Jury Waiver. BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF)
HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG BORROWER AND LENDER ARISING OUT OF OR IN ANY WAY
RELATED TO THIS NOTE OR ANY OTHER LOAN DOCUMENT REFERENCED HEREIN. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE FINANCING DESCRIBED IN THIS NOTE. 

[Remainder of the Page Left Intentionally Blank] 

  
 5 

 IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

  

			
	BORROWER:
	
	 EWSD I, LLC,
 an Arizona limited
liability company

		
	By:	 	 /s/ Jeff Goh

	Print Name:	 	Jeff Goh
	Title:	 	Manager

 Signature Page to Promissory Note 

to EAST WEST SECURED DEVELOPMENT, LLC

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