Document:

Exhibit
10.4

 

COMMERCIAL AGREEMENT 
 BETWEEN 
 DIEGO PELLICER WORLDWIDE INC. 
 AND 
 DIEGO
PELLICER, INC.

 

This
COMMERCIAL AGREEMENT (this “Agreement”) is entered into as of April , 2014 by and between
Diego Pellicer Worldwide Inc., a Delaware corporation (“Diego Delaware”) and Diego Pellicer,
Inc., a Washington corporation (“Diego Washington”). Diego Delaware and Diego Washington
are sometimes referred to herein as the “Parties.”

 

RECITALS

 

WHEREAS,
Diego Washington has applied for a recreational cannabis retail license from the Washington State Liquor Control Board (the “WSLCB”).

 

WHEREAS,
the regulations promulgated by the WSLCB under Initiative 502 (“1-502”) have placed significant
restrictions on how applicants for recreational cannabis licenses may raise funds to operate their business.

 

WHEREAS,
Diego Delaware services licensed cannabis producers, processors and retailers by, among other things, acquiring and building-out
compliant producing, processing, and retailing properties and leasing or subleasing these properties to licensed cannabis producers,
processors and retailers.

 

WHEREAS,
Diego Delaware and Diego Washington have entered into that certain Agreement and Plan of Merger dated as of January 23, 2014 (02487959).
(the “Merger Agreement”).

 

WHEREAS,
Diego Delaware has learned from certain of its partners, investors, and financial advisors that the Merger Agreement, in its current
form, is untenable.

 

WHEREAS,
Diego Delaware and Diego Washington desire to amend the Merger Agreement and enter into the transactions set forth herein.

 

AGREEMENT

 

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

 

1.Receipt
of Operating Capital. Diego Washington hereby agrees that it will make commercially reasonable efforts to secure operating
capital in an amount not less than $350,000 for use as operating capital from its current investors, or other 1-502 compliant
sources (the “Capital Contribution”).

 

    	 

    	 

    

 

2.Merger
Agreement; Offer. The Parties agree that they will amend and restate the Merger Agreement pursuant to the terms of that certain
Amended and Restated Agreement and Plan of Merger of even date herewith. Diego Delaware hereby agrees that it will offer to the
current holders of Series A Preferred Stock of Diego Washington (the “Diego Washington Preferred), and
to current holders of convertible promissory notes convertible for shares of Diego Washington Preferred (the “Notes”),
in each case who are also accredited investors and other cash investors in Diego Washington, the right, for 20 days, after Diego
Washington has raised not less than $350,000 to convert their investment in Diego Washington Preferred and/or Notes for that number
of shares of Series A Preferred Stock of Diego Delaware (the “Diego Delaware Preferred”) as listed on
Exhibit A (the “Offer”).

 

3.Capital
Investments. Subject to the completion of: (i) Diego Washington obtaining the Capital Contribution; and (ii) the Merger Agreement
being amended pursuant to the terms of Section 2 above, Diego Delaware hereby agrees that it will:

 

(i)         Enter
into a sublease with Diego Washington, for the sublease of retail space located at 2215 4th Ave. South at a monthly
rent to be mutually agreed to by the Parties (the “Flagship Store”);

       
 

(ii)        Enter
into a sublease with Diego Washington, conditioned upon its receipt of additional 1-502 retail licenses, for up to two additional
I-502 compliant retail locations mutually agreeable to the Parties, at a monthly rent for each additional location to be mutually
agreed upon by the Parties (each, an “Ancillary Store”);

 

(iii)       Fund the build-out of the Flagship Store to specifications mutually agreed upon by the Parties, in an amount of up to $700,000
if Diego Washington has received an 1-502 retail license for that location and up to $400,000 otherwise (the “Flagship
Store Build-Out”), which Flagship Store Build-Out shall be completed as soon as commercially feasible.;

 

(iv)       Fund
the build-out of each Ancillary Store to specifications mutually agreed upon by the Parties, in an amount of up to $400,000 for
each Ancillary Store (each, an “Ancillary Store Build-Out”). Each Ancillary Store Build-Out
shall be complete as soon as commercially feasible for each Ancillary Store, however Diego Delaware shall not be required to build
out more than one store at a time.

 

    	2

    	 

    

 

4.Notices
and Demands. All notice, demands or other communications required or permitted hereunder shall be in writing and shall be
(a) sent by U.S. registered or certified mail, return receipt requested, with postage prepaid, (b) sent by personal delivery
by a nationally recognized courier service for same-day or next-day delivery, or (c) sent by email or facsimile (with
confirmation of receipt), addressed to the applicable party at the addresses set forth below or at such other addresses as
such parties may designate by notice to the other parties:

 

	If to Diego Washington: 	Diego
    Pellicer, Inc.
	 	2606
    Second Avenue #535 
	 	Seattle,
    Washington 98121 
	 	Attention:
    Peter Norris

    Email: petem.diego@gmail.com
	 	 
	If to Diego Delaware: 	Diego
    Pellicer Worldwide Inc.
	 	3496
    Fairview Way
	 	West
    Linn, Oregon 97068
	 	Attn:
    Steve Hubbard
	 	Email:
    sshubbard@earthlink.net

 

All
notices, demands and requests shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered
by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight
prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at
the earlier of its receipt or 72 hours after the same has been deposited in a regularly-maintained receptacle for the deposit
of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer
or, if sent via electronic mail, when directed to the relevant electronic mail address, if sent during normal business hours of
the recipient, or if not sent during normal business hours of the recipient, then on the recipient's next business day.

 

5. Amendment.
This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each Party.

             
 

6. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Washington,
without regard to the conflicts of law provisions thereof, or of any other state.

 

7. Jurisdiction; Venue. The Parties, by their execution of this Agreement, hereby irrevocably submit to the exclusive jurisdiction
of the U.S. federal and state courts located in King County, Washington, for the purpose of any suit, action or other proceeding
arising out of, or based upon, this Agreement, and waive any objection to the laying of venue with respect to such courts or that
any such court constitutes an inconvenient forum.

 

8. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM FILED BY ANY PARTY, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY
TO THIS AGREEMENT OR ANY ACTS OR OMISSIONS OF ANY PARTY IN CONNECTION THEREWITH.

 

9. Successors
and Assigns. The rights and obligations of the Parties shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the Parties.

 

    	3

    	 

    

 

10. Assignment.
The rights, interests or obligations hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by
any Party without the prior written consent of the other Parties.

          
 

11. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original
copy and all of which shall constitute one and the same agreement.

          
 

12.
Telecopy Execution and Delivery. A facsimile, telecopy or other reproduction of this Agreement may be executed by one or
more of the Parties and delivered by such Party by facsimile or any similar electronic transmission device pursuant to which the
signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective
for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement
as well as any facsimile, telecopy or other reproduction hereof.

 

13. Entire Agreement. This Agreement constitutes the entire agreement among the Parties pertaining to the subject matter hereof,
and except with respect to the Merger Agreement, as the same may be amended from time to time, supersedes in their entirety any
and all written or oral agreements previously existing among the Parties with respect to such subject matter.

          
 

14. Severability.
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this
Agreement, and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and
enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the
illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its
terms.

 

15. Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be
considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and
exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

16. Attorneys'
Fees. In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party
in such dispute shall be entitled to recover from the losing party such reasonable fees and expenses of attorneys and
accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

          
 

17.
Independent Counsel Each of the parties hereto have had the opportunity to engage independent counsel and affirm that they
have satisfied themselves as to the fairness of this agreement and hold the firm Carincross and Hempleman harmless as to their
involvement with the crafting of this agreement.

 

(signature
page follows)

 

    	4

    	 

    

 

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

 

	 	DIEGO PELLICER WORLDWIDE INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	 
	 	 	Ron Throgmartin, President 
	 	 	 
	 	DIEGO PELLICER, INC., 
	 	a Washington corporation 
	 	 
	 	By:	 
	 	 	Peter Norris, President

 

    	5

    	 

    

 

Exhibit A

 

“WW Series A Shares” offered in exchange for a
reduction in the number of share to be issued to Diego Pellicer Inc. shareholders at the tome of merger totaling 1,066,661
if all were accepted.

 

 

 

6Exhibit
10.5

 

AMENDED
AND RESTATED AGREEMENT AND PLAN OF MERGER OF 

DIEGO PELLICER, INC., 

A
WASHINGTON CORPORATION, 

and

DIEGO
PELLICER WORLDWIDE INC., 

A
DELAWARE CORPORATION

  

This
AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of April 19, 2014 is
made by and between Diego Pellicer, Inc., a Washington corporation (“Diego Washington”), and
Diego Pellicer Worldwide Inc., a Delaware corporation (“Diego Washington”). Diego Delaware
and Diego Washington are sometimes referred to in this Agreement as the “Constituent Companies." This Agreement
amends, restates, replaces and supersedes in its entirety that certain Agreement and Plan of Merger between the Constituent Companies
dated as of January 23, 2014 (the “Prior Agreement").

 

RECITALS

 

A.           The
Constituent Companies hereby agree that it is in their mutual best interests to amend and restate the Prior Agreement, and to
replace it with this Agreement. The Constituent Companies hereby agree that the Prior Agreement shall be of no further force or
effect.

 

B.            Diego
Delaware is a corporation, duly organized and validly existing under the laws of the State of Delaware. As of the date of this
Agreement, pursuant to Diego Delaware's Certificate of Incorporation, as amended (the “Certificate of Incorporation”),
Diego Delaware has authorized: (i) 87,000,000 shares of Common Stock, par value $0.0001 per share, of which 13,520,000 are issued
and outstanding, and 2,480,000 are reserved for issuance under Diego Delaware's 2013 Equity Incentive Plan; and (ii) 13,000,000
shares of Preferred Stock, par value $0.0001 per share, which is designated Series A Preferred Stock, and 776,106 of which are
issued and outstanding.

 

C.            Diego
Washington is a corporation, duly organized and validly existing under the laws of the State of Washington. As of the date of
this Agreement, pursuant to Diego Washington's Articles of Incorporation, as amended (the "Articles of Incorporation"),
Diego Washington has authorized: (1) 33,700,000 shares of Common Stock, of which 7,300,000 are issued and outstanding,
and 2,800,000 are reserved for issuance under Diego Washington's 2013 Equity Incentive Plan; and (ii) 6,300,000 shares of Series
A Preferred Stock authorized, and 133,333 of which are issued and outstanding.

 

D.            The
stockholders Diego Delaware have entered into certain agreements binding themselves to vote in favor of the Merger with certain
exceptions.

 

E.             The
board of directors of each of Diego Delaware and Diego Washington have approved this Agreement and have directed that this Agreement
be executed by the undersigned officers.

 

    	 

    	 

    

 

AGREEMENT

 

In
consideration of the mutual agreements and covenants set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Diego Delaware and Diego Washington hereby agree as follows:

 

1.           Merger

 

1.1           Merger.
Subject to the fulfillment of the conditions set forth in Section 1.2
below, and in accordance with the provisions of this Agreement, the Delaware General Corporation Law (the “DGCL”)
and the Washington Business Corporation Act (the “WBCA”), at Diego Delaware's sole discretion,
Diego Washington shall be merged with and into Diego Delaware (the "Merger"), and the separate existence
of Diego Washington shall cease and Diego Delaware shall be the surviving Company.

 

1.2           Conditions
Precedent. In no event shall Diego Delaware take any action to consummate the Merger until either: (i) the production, processing
and retailing of cannabis for recreational use in the United States becomes legally permissible for privately owned entities under
United States federal law; or (ii) Diego Washington or Diego Delaware receives the written consent of the Washington State Liquor
Control Board providing that Diego Washington, or its corporate successor, may continue to be a licensed cannabis retailer and/or
own cannabis retail entities in the State of Washington while also maintaining shareholders, directors, officers, and employees
who are residents of states other than the State of Washington (the “Condition Precedent”). Neither
party shall be obligated to take any action to consummate the Merger if the other party is in violation of any of the covenants
set forth in this Agreement. If Diego Delaware desires to consummate the Merger following the fulfillment of the Condition Precedent,
then Diego Delaware shall notify Diego Washington in writing not less than 60 days prior to the date that Diego Delaware files
the Certificate of Merger in connection with the consummation of the Merger (the “Consummation Notice”).
Notwithstanding the prior fulfillment of the Condition Precedent and delivery of the Consummation Notice, neither party
shall take any action to consummate the Merger if either party demonstrates, through reasonable and substantial evidence, to the
other party not later than 45 days following Diego Washington's receipt of the Consummation Notice that either party to this Agreement
or any of their respective directors, officers, employees or stockholders is more likely to become subject to federal criminal
charges as a result of the consummation of the Merger than they would be if the Merger was not consummated. If the consummation
of the Merger is rejected by Diego Washington pursuant to the terms of this Section 1.2 or Section 1.3 below, Diego Delaware may
submit a new Consummation Notice to Diego Washington at any time not less than 90 days after the date of rejection of the previous
Consummation Notice.

 

1.3         Disqualifying
Events. In no event shall Diego Washington be required to consummate or approve the Merger if; on the date of delivery of
any Consummation Notice:

 

(a)       Diego
Delaware is unable, or admits in writing its inability, to pay its debts generally as they mature;

 

(b)       Diego
Delaware has been dissolved or liquidated;

 

    	-2-

    	 

    

 

(c)       Diego
Delaware has commenced a voluntary or involuntary case or other proceeding seeking liquidation, reorganization or other relief
with respect to itself or its debts under any bankruptcy, insolvency or other similar law nor or hereafter in effect or consented
to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other
proceeding commenced against it; or

 

(d)       Diego
Delaware is subject to any outstanding injunction, order, decree, ruling, or charge, or is a party, or is threatened to be made
a party, to any such action, suit, proceeding, hearing, or investigation of, in, or before any court or quasi-judicial or administrative
agency of any federal, state, local, or foreign jurisdiction or before any arbitrator that is likely to have a Material Adverse
Effect (as defined below) on the business of Diego Delaware. For purposes of this section, "Material Adverse Effect"
shall mean the amount in controversy is greater than 10% of Diego Delaware's total assets.

 

1.4         Filing
and Effectiveness. Unless earlier abandoned pursuant to Sections 1.2 or 4.5 of this Agreement, or rejected pursuant to Section
1.3 of this Agreement, the Merger shall become effective upon completion of the following actions:

 

(a)       Diego
Washington's receipt of the Consummation Notice from Diego Delaware;

 

(b)       Adoption
and approval of this Agreement and the Merger by the respective shareholders of each of the Constituent Companies in accordance
with the applicable requirements of the DGCL, the WBCA and the bylaws of Diego Delaware and Diego Washington;

 

(c)       The
satisfaction or waiver of the Condition Precedent, the other terms of Section 1.2, and all of the conditions precedent to the
consummation of the Merger as specified in this Agreement;

 

(d)       The
Constituent Companies' receipt of all third party consents necessary for the legal consummation of the Merger as reasonably determined
by their respective boards of directors;

 

(e)       The
filing with the Secretary of State of Delaware of an executed Certificate of Merger meeting the requirements of the DGCL (the
“Certificate of Merger”); and

 

(f)       The
filing with the Secretary of State of Washington of executed Articles
of Merger meeting the requirements of the WBCA (the “Articles of Merger”).

 

The
date and time when the Merger becomes effective is referred to in this Agreement as the “Effective Time of the Merger.”
Copies of the Certificate of Merger and the Articles of Merger shall be held by each of the Constituent Companies and may be filed
by either of them upon the satisfaction of the terms and conditions of this Section 1.4.

 

    	-3-

    	 

    

 

1.5         Effect
of the Merger. At the Effective Time of the Merger, the separate existence of Diego Washington shall cease and Diego Delaware,
as the surviving company, (a) shall continue to possess all of its assets, rights, powers and property as constituted immediately
prior to the Effective Time of the Merger, (b) shall be subject to all actions previously taken by its board of directors on its
behalf and Diego Washington's board of directors, (c) shall succeed, without other transfer, to all of the assets, rights, powers
and property of Diego Washington in the mariner more fully set forth in Title 8 Section 259 of the DGCL and Sections 23B.11.060
and 23B.11.100 of the WBCA, (d) shall continue to be subject to all of the debts, liabilities and obligations of Diego Delaware
as constituted immediately prior to the Effective Time of the Merger, (e) shall succeed, without other transfer, to all of the
debts, liabilities and obligations of Diego Washington in the same manner as if Diego Delaware had itself incurred them, all as
more fully provided under the applicable provisions of Title 8 Section 259 of the DGCL and Sections 23B.11.060 and 23B.11.100
of the WBCA, and (f) the Surviving Bylaws (as defined below) shall be effective for Diego Delaware as the surviving company, and
the Bylaws of Diego Washington shall have no further force or effect.

 

1.6         Assignment
and Assumption of Tax Liabilities. Upon the Effective Time of the Merger, in addition
to the effects on the assets, rights, powers and property, and the debts, liabilities and obligations of the parties hereto occurring
by operation of law as set forth in Section 1.5 above, Diego Washington hereby assigns, and Diego Delaware hereby assumes, all
of Diego Washington's on-going tax liabilities incurred prior to the Effective Time of the Merger.

 

2.          Charter
Documents, Directors and Officers

 

2.1         Certificate
of Incorporation. The Certificate of Incorporation of Diego Delaware as in effect immediately
prior to the Effective Time of the Merger shall continue in full force and effect as the Certificate of Incorporation of Diego
Delaware (the “Surviving Certificate of Incorporation”) until duly amended in accordance
with the provisions thereof and applicable law.

 

2.2         Bylaws.
The Bylaws of Diego Delaware as in effect immediately prior to the Effective Time of the Merger shall continue in full force
and effect as the Bylaws of Diego Delaware (the “Surviving Bylaws”) until duly amended
in accordance with the provisions thereof and applicable law.

 

2.3         Directors
and Officers. The members of the board of directors of Diego Delaware as of immediately
prior to the Effective Time of the Merger shall be the members of the board of directors of Diego Delaware, and members of the
board of directors shall serve until their successors shall have been duly elected and qualified or as otherwise provided by applicable
law, the Certificate of Incorporation or the Surviving Bylaws. The Chief Executive Officer of Diego Delaware as of immediately
prior to the Effective Time of the Merger shall be the Chief Executive Officer of Diego Delaware, and the Secretary of Diego Delaware
as of immediately prior to the Effective Time of the Merger shall be the Secretary of Diego Delaware, each of whom shall serve
until their successors shall have been duly appointed or as otherwise provided by applicable law or the Surviving Bylaws.

 

    	-4-

    	 

    

 

3.          Manner
of Conversion of Securities

 

3.1          Conversion
of Shares. 

 

In exchange for all outstanding shares of Diego Washington,

 

	 	a)	At
    the Effective Time of the Merger, Diego Delaware shall deliver to Diego Washington 1,386,667 shares of Diego Delaware common
    stock.

 

	 	b)	In
    addition to a) above, in exchange for reduced consideration in the eventual Merger, Diego Delaware shall offer up to 1,066,661
    shares of Diego Delaware Series A stock to the current cash investors, note holders and Series A investors in amounts as listed
    on Exhibit A to this Agreement. Any shares not issued to those listed on Exhibit A will be added to the 1,386,667 shares in
    a) above.

 

	 	c)	Except
    as required by 3.6 below, in no event will Diego Delaware issue more than 2,453,328 shares, the "Merger Shares"
    to effect the purposes of this Agreement.

 

	 	d)	If
    after eight (8) years from the effective date of this Agreement, Diego Delaware has not consummated the Merger, the then remaining
    Diego Washington shareholders will have the right, but not the obligation, upon surrender of their Diego Washington equity
    interests, to exchange their pro rata, as if fully converted as in 3.3 below, equity interest in Diego Washington into their
    pro rata share of the remaining Merger Shares held by Diego Delaware that have not previously been issued under the terms
    of this paragraph 3.1.

 

	 	e)	If
    the language of a), b), c) and d) above does not properly effectuate or is somehow contrary to a conversion of shares and
    merger of the companies then each company shall execute an addendum to, or replacement for, this agreement that will accomplish
    the purpose of these paragraphs and at the same time allow for the intended merger.

 

No
fractional shares of Diego Delaware shall be issued upon the Conversion. In lieu of Diego Delaware issuing any fractional shares
upon the Conversion, Diego Delaware shall pay to any holders of Diego Washington Stock who would otherwise receive a fraction
of a share of Diego Delaware an amount equal to the product obtained by multiplying the value of one share of Diego Washington
Stock (determined by the quotient of the Diego Washington Enterprise Value divided by the number of shares of Diego Washington
Stock issued and outstanding) by the fraction of a share not issued pursuant to the previous sentence.

 

3.2         Dissenting
Shareholders. Any issued and outstanding shares of Diego Washington Stock held by persons who object to the Merger and comply
with Sections 23B.13.010 and 23B.13.020 and any other applicable provision of the WBCA as in effect at the Effective Time of the
Merger concerning the right of shareholders of Diego Washington to dissent from the Merger and demand payment of the fair value
of their Diego Washington Stock (the "Dissenting Shareholders") shall not be converted as described above,
but shall have the right to receive such consideration as may be determined to be due to such Dissenting Shareholders pursuant
to Sections 23B.13.210 through 23B.13.250 and any other applicable provision of the WBCA.

 

    	-5-

    	 

    

 

3.3       Convertible
Securities. At the Effective Time of the Merger, each outstanding
warrant, option, or other security issued by Diego Washington that is exercisable for or convertible into shares of Diego Washington
Stock shall be converted into and exchanged for a substantially similar security entitling the holder thereof to acquire that
number of Diego Delaware's Common Stock that such security would have been exercisable for or convertible into had it been exercised,
exchanged, or converted immediately prior to the Merger. For purposes of clarity, this Section 3.3 shall not apply to the Diego
Washington Stock converted into and exchanged for Diego Delaware's Series A stock in the Merger pursuant to Section 33 above.

 

3.4        Certificates
of the Surviving Company. At the Effective Time of the Merger,
each certificate representing Diego Washington Stock or other securities of Diego Washington shall be deemed to evidence Diego
Delaware's Common Stock or other securities of Diego Delaware for which such Diego Washington Stock or other securities were converted,
subject to new or additional legends that Diego Delaware may require with respect to such certificates following the Effective
Time of the Merger. Each holder of an outstanding certificate representing shares of Diego Washington Stock or other securities
of Diego Washington may, at such holder's option, surrender the same for cancellation to Diego Delaware, and each such holder
shall be entitled to receive in exchange therefor a certificate or certificates representing the number of Diego Delaware's Common
Stock or other securities of Diego Delaware into which such holders' Diego Washington Stock or other securities were converted
as herein provided. The registered owner on the books and records of Diego Delaware of any shares of Diego Washington Stock or
other securities represented by such outstanding certificate shall, until such certificate shall have been surrendered for transfer
or conversion or otherwise accounted for to Diego Delaware, have and be entitled to exercise any voting and other rights with
respect to and to receive the distributions upon Diego Delaware's Common Stock or other securities represented by such outstanding
certificate as provided above.

 

3.5       Legends.
Each certificate representing shares of Diego Delaware's Common
Stock so issued in the Merger shall bear the same legends, if any, with respect to the restrictions on transferability as the
certificates of shares of Diego Washington Stock so converted and given in exchange therefor, unless otherwise determined by the
board of directors of Diego Delaware in compliance with applicable laws.

 

3.6         Adjustments
for Subdivisions or Combinations of Common Stock. In the event
the outstanding shares of capital stock of Diego Delaware shall be subdivided (by stock split, by payment of a stock dividend
or otherwise) into a greater number of shares of capital stock of Diego Delaware, the numbers of shares in 3.1 above shall, concurrently
with the effectiveness of such subdivision, be proportionately increased or decreased.

 

4.           General

 

4.1         Covenants
of Diego Delaware.

 

(a)    Diego
Delaware covenants and agrees that it will reserve, and at all times prior to the Effective Time of the Merger, keep in reserve,
enough shares of Diego Delaware's Common Stock to effectuate the Merger.

 

    	-6-

    	 

    

 

(b)    Diego
Delaware covenants and agrees that, immediately following the Effective Time of the Merger, it will:

 

(i)         Qualify
to do business as a foreign corporation in the State of Washington and appoint an agent for service of process; and

 

(ii)        Take
such other actions as may be required by the Revised Code of Washington.

 

4.2         Covenants
of Constituent Companies.

 

(a)    The
Constituent Companies each covenant and agree that all issuances of shares of capital stock or any equity equivalents will be
for fair market value (as reasonably determined by such issuing company's board of directors), and that they will not waste any
corporate assets.

 

(b)    The
Constituent Companies each covenant and agree that, prior to the Effective Time of the Merger, each Constituent Company's respective
board of directors will not authorize or approve any cash dividends or distributions with respect to such Constituent Company's
capital stock or equity securities.

 

(c)    The
Constituent Companies each covenant and agree to use commercially reasonable efforts to have all holders of their equity securities
become bound by a drag-along provision substantially similar to that set forth in that certain Diego Pellicer Worldwide Inc. Voting
Agreement dated effective as of September 27, 2013, as the same may be amended from time to time.

 

4.3         Further
Assurances. From time to time, as and when required by Diego Delaware or by its successors or assigns, there shall be executed
and delivered on behalf of Diego Washington such deeds and other instruments, and there shall be taken or caused to be taken by
it such further and other actions as shall be appropriate or necessary in order to vest or perfect in or conform of record or
otherwise by Diego Delaware the title to and possession of all the property, interests, assets, rights, privileges, immunities,
powers, franchises and authority of Diego Washington and otherwise to carry out the purposes of this Agreement, and the officers
and directors of Diego Delaware are fully authorized in the name and on behalf of Diego Washington or otherwise to take any and
all such action and to execute and deliver any and all such deeds and other instruments.

 

4.4         Amendment.
Neither this Agreement nor any term hereof may be amended, waived, discharged, or terminated other than by a written instrument
referencing this Agreement and signed by each of the Constituent Companies.

 

4.5         Termination.
This Agreement shall terminate on the date that is 5 years after the date of submission of the first Consummation Notice that
is not rejected on the grounds that either party to this Agreement or any of their respective directors, officers, employees or
stockholders is more likely to become subject to federal criminal charges, or be more likely to lose one or more of their licenses
required to conduct business as a result of the consummation of the Merger than they would be if the Merger was not consummated.

 

    	-7-

    	 

    

  

4.6         Registered
Office. The address of Diego Delaware's registered office in the State of Delaware is
2711 Centerville Road, Suite 400, Wilmington, Delaware 19904, County of New Castle. The name of its registered agent at such address
is Corporation Service Company.

 

4.7         Agreement.
Executed copies of this Agreement will be on file at the principal place of business of Diego Delaware at 3496 Fairview Way,
West Linn, OR 97068 and copies thereof will be furnished to any member of either Constituent Company, upon request and without
cost.

 

4.8         Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles
of conflicts of law.

 

4.9         Independent
Counsel. Each of the parties hereto have had the opportunity to engage independent counsel and affirm that they have satisfied
themselves as to the fairness of this agreement and hold the firm Carincross and Hempleman harmless as to their involvement with
the crafting of this agreement.

 

(signature
page follows)

 

    	-8-

    	 

    

 

The
undersigned authorized representatives of each of the Constituent Companies have executed and acknowledged this Agreement as of
the date first set forth above.

 

	 	DIEGO PELLICER WORLDWIDE INC.,

    a Delaware corporation
	 	 	 
	 	By:	 
	 	 	Name:
    Ron Throgmartin
	 	 	Title:
    Chief Executive Officer
	 	 	 
	 	DIEGO PELLICER, INC., 

    a Washington corporation
	 	 	 
	 	By:	 
	 	 	Name:
    Peter Norris
	 	 	Title:
    Chief Executive Officer

 

 

-9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]