Document:

EXHIBIT 4.4

 

 

NEITHER THIS NOTE NOR THE securities ISSUABLE UPON CONVERSION OF PRINCIPAL HEREOF HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION (TOGETHER, THE “SECURITIES LAWS”)
AND MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED OR ENCUMBERED IN THE ABSENCE OF COMPLIANCE WITH SUCH SECURITIES
LAWS AND UNTIL THE ISSUER THEREOF SHALL HAVE RECEIVED AN OPINION FROM COUNSEL ACCEPTABLE TO IT THAT THE PROPOSED DISPOSITION WILL
NOT VIOLATE ANY APPLICABLE SECURITIES LAWS.

 

CONVERTIBLE
NOTE

	Principal Amount: $22,000.00	Date: May 14, 2014

In consideration
of $20,000.00 cash payment Cabinet Grow, Inc., a Nevada corporation (the “Company”),
hereby promises to pay to the order of Gary Gilman (“Holder”), the principal sum of TWENTY TWO THOUSAND AND
NO/100 DOLLARS ($22,000.00) 9.1% OID, together with accrued interest on the unpaid principal balance thereof at the rate of Ten
percent (10.0%) per annum, calculated on the basis of actual days elapsed in a year of 365 days.

All interest due
and payable under this Note may be paid in shares of the Company’s common stock pursuant to the terms of Article 2 of this
Note. Interest shall be paid in-kind at the election of the Holder.

Article 1

Payments

1.1 
Principal and Interest Due. Except in the event of a conversion of this Note in accordance with Article 2,
or the prepayment of this Note, the principal balance shall be due and payable six months from the date of this note. Any payments
received shall be applied first to any other charges due under this Note and thereafter to the payment of the principal balance
of this Note.

1.2 
Manner of Payment. All payments of principal shall be made in United States currency at such place as Holder
shall designate to the Company in writing. If any payment of principal on this Note is due on a day that is not a Business Day,
such payment shall be due on the next succeeding Business Day, and such extension of time shall not be taken into account in calculating
the amount of interest payable under this Note. “Business Day” means any day other than a Saturday, Sunday or
legal holiday in the State of California.

1.3 
Prepayment. This Note may be prepaid, in whole or in part, by the Company at any time and from time to time,
without premium or penalty. At Holder’s option, any payments on this Note shall be applied first to pay Holder for all costs
of collection of any kind, including reasonable attorneys’ fees and expenses, and thereafter to the payment of principal.

Article 2

Conversion

 2.1 
Conversion. At Holder’s option, Holder shall have the right at any time during the Conversion Period
(as defined below) to convert the principal amount and accrued interest payable of this Note, in accordance with the provisions
of Section 2.2, into $0.001 par value shares of the Company’s common stock (the “Shares”) The conversion price
(the “Conversion Price”) shall equal $0.20 per share (subject to equitable adjustments for stock splits, stock dividends
or rights offerings by the Company relating to the Company’s securities or the securities of any subsidiary of the Company,
combinations, recapitalization, reclassifications, extraordinary distributions and similar events). For all purposes of this Note,
the “Conversion Period” shall mean that period from the issuance of this Note to its maturity. Provided, however,
that no conversion shall be permitted if the number of Shares issuable upon the conversion of the portion of this Note with respect
to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates
of more than 4.99% of the outstanding shares of the Company.

2.2 
Method of Conversion.  To convert this Note, Holder must deliver a conversion notice substantially
in the form attached hereto as Annex A during the Conversion Period. No fractional shares shall be issued upon conversion
of this Note. In lieu of any fractional share to which Holder would otherwise be entitled upon conversion of this Note, the Company
will pay to Holder in cash the amount of the unconverted principal and interest balance of this Note that would otherwise be converted
into such fractional share. Upon the conversion of this Note, Holder shall surrender this Note, duly endorsed, at the Company’s
principal office, and the Company shall, at its expense and as soon as practicable thereafter, issue and deliver to Holder at such
principal office one or more certificates for the number of common shares to which Holder is entitled (bearing such legends as
are required by applicable state and federal securities laws in the opinion of counsel to the Company), together with a check payable
to Holder for any cash amounts payable as described herein. Any conversion of this Note shall be deemed to have been made immediately
prior to the close of business on the date of this Note’s surrender, and the person or persons entitled to receive ownership
interest upon such conversion shall be treated for all purposes as the record holder or holders of such ownership interest as of
such date. Upon this Note’s conversion, and payment of any accrued interest hereon, the Company will be forever released
from all of its obligations and liabilities hereunder with regard to that portion of the principal amount being converted, including
without limitation the obligation to pay such portion of the principal amount and accrued interest.

Article 3

Default and Remedies

3.1 
Default. The occurrence of any of the following events shall constitute a “Default” under this
Note:

(a)   
Company’s failure to remit to Holder the principal or interest hereof as the same becomes due hereunder;

(b)  
Company’s assignment for the benefit of creditors, or filing of a petition in bankruptcy or for reorganization or
to effect a plan or arrangement with creditors;

(c)   
Company’s application for, or voluntary permission of, the appointment of a receiver of trustee for any or all Company
property;

(d)  
Any action or proceeding described in the foregoing paragraphs (b) and (c) is commenced against Company and such action
or proceeding is not vacated within 60 days of its commencement;

(e)   
Company’s dissolution or liquidation.

3.2 
Remedies Upon Default. Upon any Default:

(a)   
Interest rate shall increase to Twelve percent (22.0%) per annum, from the date of Default;

(b)  
Holder may without further notice declare the entire remaining principal sum of this Note, together with all interest accrued
thereon, immediately due and payable; and Holder’s failure to declare the entire remaining principal sum of this Note, together
with all interest accrued thereon, immediately due and payable shall not constitute a waiver by Holder of its right to so declare
at any other time;

(c)   
Holder may employ an attorney to enforce its rights and remedies hereunder and Company hereby agrees to pay Holder’s
reasonable attorneys’ fees and other reasonable expenses incurred by Holder in exercising any of Holder’s rights and
remedies upon Default; and

(d)  
Holder’s rights and remedies provided hereunder shall be cumulative and may be pursued singly, successively or together
in Holder’s sole discretion; and Holder’s failure to exercise any such right or remedy shall not be a waiver or release
of such rights or remedies or the right to exercise any of them at another time.

Article 4 

Registration Status
of Shares; Restrictions on Transferability.

4.1 
The holder understands, acknowledges and agrees that:

(a)   
The Shares to be issued upon conversion of this Note have not been registered under the Securities Act of 1933, as amended
(the “Act”) or under applicable state securities acts on the grounds that the Shares are being issued in a transaction
(i) involving a limited group of knowledgeable investors fully familiar with the affairs and proposed operations of the Company,
and (ii) not involving a public offering and that, consequently, such transaction is exempt from registration under the Act and
the state securities acts. The Company will rely on the Holder’s representations in the Investor Qualification Questionnaire
as a basis for the exemption from registration.

(b)  
The Shares may not be sold, transferred or otherwise disposed of except pursuant to an effective registration statement
or appropriate exemption from registration under applicable state law and, as a result, the Holder must comply with applicable
transfer requirements. Should the Holder should later desire to dispose of or transfer any of the Shares in any manner, the Holder
shall not do so without first obtaining (i) an opinion of counsel satisfactory to the Company that such proposed disposition or
transfer may be made lawfully without the registration of the Shares pursuant to the Act and applicable state laws, or (ii) registration
of such Shares. Set forth in Paragraph 2(f) above and may be required to hold the Shares for an indefinite period of time.

(c)   
The Company is under no obligation to file a registration statement with respect to the Shares. Furthermore, the provisions
of Rule 144 under the Act will permit resale of the Shares only under limited circumstances. For example, the Shares must be held
by the Holder for at least six months following the date of this Note before they can be sold pursuant to Rule 144 and even then
such sales will be further restricted by certain volume limitations.

4.2 
Legend on Certificates to be Issued.  The Holder understands
and acknowledges that the stock certificate representing the Shares to be issued by the Company upon conversion of this Note will
contain substantially the following legends:

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (the “Act”), OR APPLICABLE STATE
SECURITIES LAWS. NO SALE OR ASSIGNMENT OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE MADE except in conjunction with an
effective registration statement for the securities under applicable securities laws UNLESS THE HOLDER SHALL HAVE OBTAINED AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH PROPOSED DISPOSITION OR TRANSFER LAWFULLY MAY BE MADE WITHOUT REGISTRATION OF
SUCH SHARES PURSUANT TO APPLICABLE SECURITIES LAWS, OR SUCH REGISTRATION.

Article 5

General Provisions

5.1 
Waiver of Protest, Presentment and Notice. The Company hereby waives presentment, demand for payment, notice
of nonpayment or dishonor, protest, and notice of protest, and agrees to continue to be bound for the payment of principal, interest
and all other sums due under this Note notwithstanding any extension or alteration of the time or terms of payment hereon, any
renewal or any acceptance of security of any kind. Company also hereby waives the right to protest the domestication or collection
of any judgment obtained against the Company with respect to this Note in any jurisdiction where the Company may now or hereafter
maintain assets or be registered or qualified to transact business.

5.2 
Obligations Absolute. Company’s obligations hereunder are absolute, and Company hereby waives any and
all rights to offset, deduct or withhold any payments or charges due hereunder for any reason whatsoever.

5.3 
Entire Agreement. This Note constitutes the full and entire understanding and agreement between the parties
with regard to the subject matter hereof.

5.4 
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Colorado
without regard to its conflicts-of-law principles.

5.5 
Severability. If any provision in this Note is held invalid or unenforceable by a court of competent jurisdiction,
the other provisions of this Note will remain in full force and effect. Any provision of this Note held invalid or unenforceable
only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

5.6 
Waiver of Right or Remedy. No waiver of any right or remedy under this Note shall be valid unless in writing
executed by the Holder hereof, and any such waiver shall be effective only in the specific instance and for the specific purpose
given. All rights and remedies of all present and future Holders of this Note shall be cumulative and may be exercised singly,
concurrently or successively. This Note shall bind the Company and its successors and assigns.

5.7 
Notices. Any notice required or permitted to be given hereunder shall be made as follows:

To the Company 

Mr. Sam May

President

Cabinet Grow, Inc.

17801 Main Street, Suite
E

Irvine, California 92614

 

 

 

To the Holder

Gary Gilman

4415 Lewis Ave

Burbank, CA 91504

Tele (406) 671-8126

 

5.8 
Construction. The headings of Sections in this Convertible Note are provided for convenience only and will
not affect its construction or interpretation. All references to Articles or Sections refer to Articles and Sections of this Note
unless otherwise specified.

 

 

In
Witness Whereof, the Company has executed and delivered this Convertible Note as of the date first set forth above.

 

Cabinet Grow, Inc.

 

 

 

By: /s/ Sam May

sam may

president

 

 

 

 

 

    	 

    	 

    

NOTICE
OF CONVERSION

(to be signed only upon conversion of note)

 

To: Cabinet Grow, Inc.

Mr. Sam May

President

17801 Main Street, Suite E

Irvine, California 92614

The undersigned,
the Holder of the Convertible Note of Cabinet Grow, Inc. dated _________________, hereby surrenders such Convertible Note for conversion
into  shares of the common stock of Cabinet Grow, Inc, to the extent of $___________________ of the unpaid
principal and accrued interest of such Convertible Note, and requests that the certificates for such shares be issued in the name,
and delivered to the address set forth below:

______________________________________

Exact Name in which shares are to be registered

 

______________________________________

 

______________________________________

Address, city, state and zip code

Tax ID#: ______________________

Dated: ________________________

Conversion Price: ________________

Principal Balance: ________________

HOLDER:

 

 

________________________________________________

Signature

 

________________________________________________

Name (print or type)

 

________________________________________________

Phone

 

________________________________________________

Email AddressEXHIBIT 4.5

 

 

Securities Purchase Agreement

 

This
Securities Purchase Agreement (this “Agreement”), dated as of June 6, 2014, is entered into by and between
Cabinet Grow, Inc., a Nevada corporation (the “Company”), and
Chicago Venture Partners, L.P., a Utah limited partnership, its successors and/or
assigns (“Buyer”).

A.The Company
and Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the
rules and regulations promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”).

B.Buyer desires
to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement (i) a Secured
Convertible Promissory Note, in the form attached hereto as Exhibit A, in the original principal amount of $1,657,500.00
(the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in such Note, and (ii) a Warrant to Purchase
Common Stock in the form attached hereto as Exhibit B (the “Warrant”).

This Agreement,
the Note, the Warrant, the Security Agreement (as defined below), the Stockholder Pledge Agreements (as defined below), the Buyer
Pledge Agreement (as defined below), the Secured Buyer Notes (as defined below), the Buyer Notes (as defined below), and all other
certificates, documents, agreements, resolutions and instruments delivered to any party under or in connection with this Agreement,
as the same may be amended from time to time, are collectively referred to herein as the “Transaction Documents”).

C.For purposes
of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion of all or any
portion of the Note; “Warrant Shares” means all shares of Common Stock issuable upon the exercise of or pursuant
to the Warrant; and “Securities” means the Note, the Conversion Shares, the Warrant and the Warrant Shares.

NOW THEREFORE,
the Company and Buyer hereby agree as follows:

1. 
Purchase and Sale of Securities.

1.1. 
Purchase of Securities. On the Closing Date (as defined below), the Company shall issue and sell to Buyer and Buyer
agrees to purchase from the Company the Note and the Warrant. In consideration thereof, Buyer shall pay (i) the amount designated
as the initial cash purchase price on Buyer’s signature page to this Agreement (the “Initial Cash Purchase
Price”), and (ii) issue to the Company the Secured Buyer Notes and the Buyer Notes (the sum of the initial principal
amount of the Secured Buyer Notes and the Buyer Notes, together with the Initial Cash Purchase Price, the “Purchase Price”).
Subject to Section 1.5, the Secured Buyer Notes shall be secured by the Membership Interest Pledge Agreement substantially in the
form attached hereto as Exhibit C, as the same may be amended from time to time (the “Buyer Pledge Agreement”).
Initially, only the Secured Buyer Notes will be secured by the Buyer Pledge Agreement pursuant to the terms and conditions of the
Buyer Pledge Agreement, the Secured Buyer Notes and this Agreement, but the Buyer Notes may become secured subsequent to the Closing
(as defined below) by such collateral and at such time as determined by Buyer in its sole discretion. The Purchase Price, the OID
(as defined below) and the Carried Transaction Expense (as defined below) are allocated to the Tranches (as defined in the Note)
of the Note and to the Warrant as set forth in the table attached hereto as Exhibit D.

1.2. 
Form of Payment. On the Closing Date, (i) Buyer shall pay the Purchase Price to the Company by delivering the following
at the Closing: (A) the Initial Cash Purchase Price, which shall be delivered by wire transfer of immediately available funds to
the Company, in accordance with the Company’s written wiring instructions, (B) Secured Buyer Note #1 in the principal amount
of $250,000.00 duly executed and substantially in the form attached hereto as Exhibit E (“Secured Buyer Note #1”);
(C) Secured Buyer Note #2 in the principal amount of $250,000.00 duly executed and substantially in the form attached hereto as
Exhibit F (“Secured Buyer Note #2”, and together with Secured Buyer Note #1, the “Secured Buyer
Notes”); (D) Buyer Note #3 in the principal amount of $250,000.00 duly executed and substantially in the form attached
hereto as Exhibit G (“Buyer Note #3”); and (E) Buyer Note #4 in the principal amount of $250,000.00 duly
executed and substantially in the form attached hereto as Exhibit H (“Buyer Note #4”, and together with
Buyer Note #3, the “Buyer Notes”); and (ii) the Company shall deliver the duly executed Note and Warrant on
behalf of the Company, to Buyer, against delivery of such Purchase Price.

1.3. 
Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 5 and Section
6 below, the date and time of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”)
shall be 5:00 p.m., Eastern Time on or about June 6, 2014, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at the offices of Buyer unless
otherwise agreed upon by the parties.

1.4. 
Note Collateral. The Note shall be secured by the collateral set forth in that certain Security Agreement attached
hereto as Exhibit I listing all of the Company’s assets, including without limitation the Secured Buyer Notes
and the Buyer Notes, as security for the Company’s obligations under the Transaction Documents
(the “Security Agreement”). The Note shall be further secured by certain Stock Pledge Agreements in the form
attached hereto as Exhibit J (collectively, the “Stock Pledge Agreements”), which Stock Pledge Agreements
shall be made by each stockholder of the Company (the “Stockholders”) in favor of Buyer with respect to all
of such Stockholder’s shares of Class A Preferred Stock of the Company (“Class A Preferred”), as more
specifically set forth in the Stock Pledge Agreements, all the terms and conditions of which are hereby incorporated and made a
part of this Agreement.

1.5. 
Secured Buyer Note Collateral. At the Closing,
Buyer shall execute the Buyer Pledge Agreement, thereby granting to the Company a security interest in the collateral described
therein (the “Collateral”). Buyer also agrees to file a UCC Financing Statement (Form UCC1) with the Utah Department
of Commerce in the manner set forth in the Buyer Pledge Agreement in order to perfect the Company’s security interest in
the Collateral. Notwithstanding anything to the contrary herein or in any other Transaction Document, Buyer may, in Buyer’s
sole discretion, add additional collateral to the Collateral covered by the Buyer Pledge Agreement, and may substitute Collateral
as Buyer deems fit, provided that the net fair market value of the substituted Collateral may not be less than the aggregate principal
balance of the Secured Buyer Notes as of the date of any such substitution. In the event of a substitution of Collateral, Buyer
shall timely execute any and all amendments and documents necessary or advisable in order to properly release the original collateral
and grant a security interest upon the substitute collateral in favor of the Company, including without limitation the filing of
an applicable UCC Financing Statement Amendment (Form UCC3) with the Utah Department of Commerce. The Company agrees to sign the
documents and take such other measures requested by Buyer in order to accomplish the intent of the Transaction Documents, including
without limitation, execution of a Form UCC3 (or equivalent) termination statement against the Collateral within five (5) Trading
Days (as defined in the Note) after written request from Buyer. The Company acknowledges and agrees that the Collateral may be
encumbered by other monetary liens in priority and/or subordinate positions. The intent of the parties is that the net fair market
value of the Collateral (less any other prior liens or encumbrances) will be equal to or greater than the aggregate outstanding
balance of the Secured Buyer Notes. To the extent the fair market value of the Collateral (less any other liens or encumbrances)
is less than the total outstanding balance of all the Secured Buyer Notes, then the Collateral will be deemed to only secure those
Secured Buyer Notes with an aggregate outstanding balance that is less than or equal to such net fair market value of the Collateral,
applied in numerical order of the Secured Buyer Notes. By way of example only, if the fair market value of the Collateral is determined
by appraisal to be $500,000 and the Collateral is encumbered by $250,000 of prior liens, then the net fair market value for purposes
of this section is $250,000 ($500,000 - $250,000). Accordingly, the Collateral will be deemed to secure only Secured Buyer Note
#1, while Secured Buyer Note #2 shall be deemed unsecured. If the Collateral is subsequently appraised for $500,000 with all prior
liens removed, then the Collateral will automatically be deemed to secure Secured Buyer Note #1 and Secured Buyer Note #2.

1.6. 
Original Issue Discount; Transaction Expenses. The Note carries an original issue discount of $150,000.00
(the “OID”). In addition, the Company agrees to pay $10,000.00 to Buyer to
cover Buyer’s legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection
with the purchase and sale of the Securities, $2,500.00 of which amount was previously paid to Buyer and $7,500.00 (the “Carried
Transaction Expense Amount”) of which amount is included in the initial principal balance of this Note. The Purchase
Price, therefore, shall be $1,500,000.00, computed as follows: $1,657,500.00 original principal balance, less the OID, less the
Carried Transaction Expense Amount. The Initial Cash Purchase Price shall be the Purchase Price less the sum of the initial principal
amounts of the Secured Buyer Notes and the Buyer Notes.

2. 
Buyer’s Representations and Warranties. Buyer represents and warrants to the Company that: (i) this Agreement
has been duly and validly authorized; (ii) this Agreement constitutes a valid and binding agreement of Buyer enforceable in accordance
with its terms; (iii) Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D of the
1933 Act, and (iv) this Agreement, the Secured Buyer Notes, the Buyer Notes, and the Buyer Pledge Agreement have been duly executed
and delivered on behalf of Buyer.

3. 
Representations and Warranties of the Company. The Company represents and warrants to Buyer that: (i) the Company
is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation and has the
requisite corporate power to own its properties and to carry on its business as now being conducted; (ii) the Company is duly qualified
as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted
or property owned by it makes such qualification necessary; (iii) each of the Transaction Documents and the transactions contemplated
hereby and thereby, have been duly and validly authorized by the Company; (iv) this Agreement, the Note, the Security Agreement,
the Warrant, and the other Transaction Documents have been duly executed and delivered by the Company and constitute the valid
and binding obligations of the Company enforceable in accordance with their terms, subject as to enforceability only to general
principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of creditors’
rights generally; (v) the execution and delivery of the Transaction Documents by the Company, the issuance of Securities in accordance
with the terms hereof, and the consummation by the Company of the other transactions contemplated by the Transaction Documents
do not and will not conflict with or result in a breach by the Company of any of the terms or provisions of, or constitute a default
under (a) the Company’s formation documents or bylaws, each as currently in effect, (b) any indenture, mortgage, deed of
trust, or other material agreement or instrument to which the Company is a party or by which it or any of its properties or assets
are bound, including any listing agreement for the Common Stock, or (c) to the Company’s knowledge, any existing applicable
law, rule, or regulation or any applicable decree, judgment, or order of any court, United States federal or state regulatory body,
administrative agency, or other governmental body having jurisdiction over the Company or any of the Company’s properties
or assets; (vi) no further authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory
organization, or stock exchange or market or the stockholders or any lender of the Company is required to be obtained by the Company
for the issuance of the Securities to Buyer; (vii) the Company is not, nor has it ever been, a “Shell Company,” as
such type of “issuer” is described in Rule 144(i)(1) under the 1933 Act; (viii) the Company has taken no action which
would give rise to any claim by any person or entity for a brokerage commission, placement agent or finder’s fees or similar
payments by Buyer relating to the Note or the transactions contemplated hereby; (ix) except for such fees arising as a result of
any agreement or arrangement entered into by Buyer without the knowledge of the Company (a “Buyer’s Fee”),
Buyer shall have no obligation with respect to such fees or with respect to any claims made by or on behalf of other persons for
fees of a type contemplated in this subsection that may be due in connection with the transactions contemplated hereby and the
Company shall indemnify and hold harmless each of Buyer, Buyer’s employees, officers, directors, stockholders, managers,
agents, and partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs
of preparation and attorneys’ fees) and expenses suffered in respect of any such claimed or existing fees (other than a Buyer’s
Fee, if any); and (x) when issued, each of the Securities (including, without limitation, the Conversion Shares and the Warrant
Shares), will be validly issued, fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances.

4. 
Company Covenants. Until all of the Company’s obligations hereunder are paid and performed in full, or within
the timeframes otherwise specifically set forth below, the Company shall comply with the following covenants: (i) from the Trading
Date (as defined below) until the date that is six (6) months after all the Conversion Shares and the Warrant Shares either have
been sold by Buyer, or may permanently be sold by Buyer without any restrictions pursuant to Rule 144, the Company shall timely
make all filings required to be made by it under the 1933 Act, the Securities Exchange Act of 1934, as amended (the “1934
Act”), Rule 144 or any United States securities laws and regulations thereof applicable to the Company or by the rules
and regulations of its principal trading market, and such filings shall conform to the requirements of applicable laws, regulations
and government agencies, and, unless such filings are publicly available on the SEC’s EDGAR system (via the SEC’s web
site at no additional charge), the Company shall provide a copy thereof to Buyer promptly after such filings; (ii) from the Trading
Date and for so long as Buyer beneficially owns any of the Securities and for at least twenty (20) Trading Days thereafter, the
Company shall file all reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the 1934 Act, and shall
take all reasonable action under its control to ensure that adequate current public information with respect to the Company, as
required in accordance with Rule 144, is publicly available, and shall not terminate its status as an issuer required to file reports
under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would permit such termination; (iii) from the Trading
Date and for so long as Buyer beneficially owns any of the Securities and for at least twenty (20) Trading Days thereafter, the
Common Stock shall be listed or quoted for trading on any of (a) the NYSE Amex, (b) the New York Stock Exchange, (c) the Nasdaq
Global Market, (d) the Nasdaq Capital Market, (e) the OTC Bulletin Board, (f) the OTCQX, or (g) the OTCQB (each of the foregoing,
an “Eligible Market”); (iv) the Company shall use the net proceeds received hereunder for working capital and
general corporate purposes only; provided, however, the Company will not use such proceeds to pay fees payable (A) to any
broker or finder relating to the offer and sale of the Securities unless such broker, finder, or other party is a registered investment
adviser or registered broker-dealer and such fees are paid in full compliance with all applicable laws and regulations, or (B)
to any other party relating to any financing transaction effected prior to the date hereof; (v) from and after the date hereof
and until all of the Company’s obligations hereunder and the Note are paid and performed in full, the Company shall not transfer,
assign, sell, pledge, hypothecate or otherwise alienate or encumber any of the Company’s assets that are encumbered by the
Security Agreement, including without limitation the Secured Buyer Notes or the Buyer Notes, in any way without the prior written
consent of Buyer; (vi) when issued, each of the Securities (including, without limitation, the Conversion Shares and the Warrant
Shares), will be validly issued, fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances;
(vii) the Company shall exercise its best efforts to, within four (4) months of the Closing Date, file a Registration Statement
on Form S-1 with the SEC and file and obtain FINRA approval of a Form 15c2-11, but in any event shall, within five (5) months of
the Closing Date, file a Registration Statement on Form S-1 with the SEC and file and obtain FINRA approval of a Form 15c2-11;
(viii) the Company shall exercise its best efforts to cause its Common Stock to be trading on an Eligible Market within six (6)
months of the Closing Date (the date on which the Common Stock is first trading on an Eligible Market, the “Trading Date”),
but in any event shall cause its Common Stock to be trading on an Eligible Market within nine (9) months of the Closing Date; (ix)
on or before the Trading Date, the Company shall deliver the Irrevocable Letter of Instructions to Transfer Agent (the “Transfer
Agent Letter”) substantially in the form attached hereto as Exhibit K to its transfer agent (the “Transfer
Agent”) and shall exercise its best efforts to cause the Transfer Agent to execute the same; (x) the Company shall not
amend any of its organizational documents, including without limitation its Articles of Incorporation, Bylaws, stockholder agreements
or similar documents, that would limit, impact or interfere with any proxy, voting or foreclosure rights of Buyer set forth in
any Stock Pledge Agreement or any other rights of Buyer pursuant to any of the Transaction Documents; and (xi) the Company shall
not, without the prior written consent of Buyer, (A) alter, change or modify the terms, rights, privileges, voting rights, or preferences
of the Class A Preferred as in effect on the date hereof, (B) issue any additional shares of Class A Preferred or any other class
of stock other than Common Stock, and (C) create any new class of stock, whether preferred or common.

5. 
Conditions to Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Securities
to Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions:

5.1. 
Buyer shall have executed this Agreement, the Secured Buyer Notes, the Buyer Notes and the Buyer Pledge Agreement, and delivered
the same to the Company.

5.2. 
Buyer shall have delivered the Purchase Price in accordance with Section 1.2 above.

6. 
Conditions to Buyer’s Obligation to Purchase. The obligation of Buyer hereunder to purchase the Securities
at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that
these conditions are for Buyer’s sole benefit and may be waived by Buyer at any time in its sole discretion:

6.1. 
The Company shall have executed this Agreement and delivered the same to Buyer.

6.2. 
The Company shall have delivered to Buyer the duly executed Note and Warrant in accordance with Section 1.2 above.

6.3. 
The Company shall have delivered to Buyer a fully executed Secretary’s Certificate evidencing the Company’s
approval of the Transaction Documents substantially in the form attached hereto as Exhibit L.

6.4. 
The Company shall have delivered to Buyer a fully executed Share Issuance resolution to be delivered to the Transfer Agent
substantially in the form attached hereto as Exhibit M.

6.5. 
Each Stockholder shall have delivered to Buyer a fully executed Stock Pledge Agreement.

6.6. 
The Company shall have delivered to Buyer fully executed copies of the Security Agreement, the Buyer Pledge Agreement, the
Stock Pledge Agreements, and all other Transaction Documents required to be executed by the Company herein or therein.

6.7. 
The Company shall have designated a new class of preferred stock known as Class A Preferred Stock having rights and privileges
that are acceptable to Buyer, and certificates evidencing their ownership of such shares shall have been issued to the Stockholders.

7. 
Reservation of Shares. Beginning on the Trading Date and at all times thereafter during which the Note is convertible
or the Warrant is exercisable, the Company will reserve from its authorized and unissued Common Stock to provide for the issuance
of Common Stock upon the full conversion of the Note and full exercise of the Warrant. The Company will at all times reserve at
least (i) three times the number of shares of Common Stock necessary to convert the total Outstanding Balance (as defined in and
determined pursuant to the Note, but only with respect to Conversion Eligible Tranches (as defined in the Note)) of the Note, plus
(ii) three times the number of Warrant Shares (as determined pursuant to the Warrant) deliverable upon full exercise of the
Warrant (the “Share Reserve”), but in any event not less than 10,000,000 shares of Common Stock shall be reserved
at all times for such purpose (the “Transfer Agent Reserve”). The Company further agrees that at all times following
the Trading Date it will cause its transfer agent to immediately add shares of Common Stock to the Transfer Agent Reserve in increments
of 1,000,000 shares as and when requested by Buyer in writing from time to time, provided that such incremental increases do not
cause the Transfer Agent Reserve to exceed the Share Reserve. In furtherance thereof, from and after the Trading Date and until
such time that the Note has been paid in full and the Warrant exercised in full, the Company shall require its transfer agent to
reserve for the purpose of issuance of Conversion Shares under the Note and Warrant Shares under the Warrant, a number of shares
of Common Stock equal to the Transfer Agent Reserve. The Company shall further require its transfer agent to hold such shares of
Common Stock exclusively for the benefit of Buyer and to issue such shares to Buyer promptly upon Buyer’s delivery of a conversion
notice under the Note or a Notice of Exercise under any Warrant.

8. 
Governing Law; Miscellaneous. The provisions set forth in this Section 8 shall apply to this Agreement, as well as
all other Transaction Documents as if these terms were fully set forth therein.

8.1. 
Cross Default. Any Event of Default (as defined in the Note) by the Company under the Note shall be deemed a default
under this Agreement, and any default by the Company under this Agreement shall be deemed an Event of Default under the Note.

8.2. 
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Utah for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict
of laws. Each party consents to and expressly agrees that venue for Arbitration (as defined in Exhibit N) of any dispute
arising out of or relating to any Transaction Document or the relationship of the parties or their affiliates shall be in Salt
Lake County or Utah County, Utah); provided, however, that notwithstanding anything herein to the contrary, enforcement
of Investor’s rights under the Security Agreement will occur in accordance with the Uniform Commercial Code of the state
in which the collateral described therein is located and enforcement of Company’s rights over the Collateral will occur in
accordance with the laws of the state in which the Collateral is located). Without modifying the parties obligations to resolve
disputes hereunder pursuant to the Arbitration Provisions (as defined below), for any litigation arising in connection with any
of the Transaction Documents, each party hereto hereby (a) consents to and expressly submits to the exclusive personal jurisdiction
of any state or federal court sitting in Salt Lake County, Utah, (b) expressly submits to the venue of any such court for the purposes
hereof, and (c) waives any claim of improper venue and any claim or objection that such courts are an inconvenient forum or any
other claim or objection to the bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit,
action or proceeding is improper.

8.3. 
Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit N) arising under this Agreement
or any other Transaction Document or other agreements between the parties and their affiliates to binding arbitration pursuant
to the arbitration provisions set forth in Exhibit N attached hereto (the “Arbitration Provisions”).
The parties hereby acknowledge and agree that the Arbitration Provisions are unconditionally binding on the parties hereto and
are severable from all other provisions of this Agreement. Any capitalized term not defined in the Arbitration Provisions shall
have the meaning set forth in this Agreement. By executing this Agreement, the Company represents, warrants and covenants that
the Company has reviewed the Arbitration Provisions carefully, consulted with legal counsel about such provisions (or waived its
right to do so), understands that the Arbitration Provisions are intended to allow for the expeditious and efficient resolution
of any dispute hereunder, agrees to the terms and limitations set forth in the Arbitration Provisions, and that the Company will
not take a position contrary to the foregoing representations. The Company acknowledges and agrees that Buyer may rely upon the
foregoing representations and covenants of the Company regarding the Arbitration Provisions.

8.4. 
Counterparts. Each Transaction Document may be executed in any number of counterparts, each of which shall be deemed
an original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of
another party’s executed counterpart of a Transaction Document (or such party’s signature page thereof) will be deemed
to be an executed original thereof.

8.5. 
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

8.6. 
Severability. In the event that any provision of this Agreement 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 to such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision hereof.

8.7. 
Entire Agreement; Amendments. This Agreement and the instruments and exhibits referenced herein contain the entire
understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein
or therein, neither the Company nor Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.
No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the parties hereto.

8.8. 
Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein)
and shall be deemed effectively given on the earliest of: (a) the date delivered, if delivered by personal delivery as against
written receipt therefor or by e-mail to an executive officer, or by facsimile (with successful transmission confirmation), (b)
the earlier of the date delivered or the third Trading Day after deposit, postage prepaid, in the United States Postal Service
by certified mail, or (c) the earlier of the date delivered or the third Trading Day after mailing by express courier, with delivery
costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or
at such other addresses as such party may designate by ten (10) calendar days’ advance written notice similarly given to
each of the other parties hereto):

If to the Company:

 

Cabinet Grow, Inc.

Attn: Sam May

17801 Main Street #E

Irvine, California 92614

 

With a copy to (which copy shall not constitute notice):

 

Legal & Compliance,
LLC

Attn: Laura Anthony

330 Clematis Street, Suite 217

West Palm Beach, Florida 33401

 

If to Buyer:

 

Chicago Venture Partners, L.P.

Attn: John Fife

303 East Wacker Drive, Suite 1200

Chicago, Illinois 60601

 

With a copy to (which copy shall not constitute notice):

 

Hansen Black Anderson Ashcraft PLLC

Attn: Jonathan K. Hansen

2940 West Maple Loop, Suite 103

Lehi, Utah 84043

 

8.9. 
Successors and Assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or
to be performed by Buyer hereunder may be assigned by Buyer to a third party, including its financing sources, in whole or in part,
without the need to obtain the Company’s consent thereto. The Company may not assign its rights or obligations under this
Agreement or delegate its duties hereunder without the prior written consent of Buyer.

8.10. 
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of Buyer. The Company
agrees to indemnify and hold harmless Buyer and all its officers, directors, employees, attorneys, and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

8.11. 
Publicity. The Company and Buyer shall have the right to review a reasonable period of time before issuance of any
press releases by the other party with respect to the transactions contemplated hereby.

8.12. 
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

8.13. 
Buyer’s Rights and Remedies Cumulative; Liquidated Damages. All rights, remedies, and powers conferred in this
Agreement and the Transaction Documents are cumulative and not exclusive of any other rights or remedies, and shall be in addition
to every other right, power, and remedy that Buyer may have, whether specifically granted in this Agreement or any other Transaction
Document, or existing at law, in equity, or by statute, and any and all such rights and remedies may be exercised from time to
time and as often and in such order as Buyer may deem expedient. The parties acknowledge and agree that upon the Company’s
failure to comply with the provisions of the Transaction Documents, Buyer’s damages would be uncertain and difficult (if
not impossible) to accurately estimate because of the parties’ inability to predict future interest rates and future share
prices, Buyer’s increased risk, and the uncertainty of the availability of a suitable substitute investment opportunity for
Buyer, among other reasons. Accordingly, any fees, charges, and default interest due under the Note, the Warrant, and the other
Transaction Documents are intended by the parties to be, and shall be deemed, liquidated damages (under the Company’s and
Buyer’s expectations that any such liquidated damages will tack back to the Closing Date for purposes of determining the
holding period under Rule 144). The parties agree that such liquidated damages are a reasonable estimate of Buyer’s actual
damages and not a penalty, and shall not be deemed in any way to limit any other right or remedy Buyer may have hereunder, at law
or in equity. The parties acknowledge and agree that under the circumstances existing at the time this Agreement is entered into,
such liquidated damages are fair and reasonable and are not penalties. All fees, charges, and default interest provided for in
the Transaction Documents are agreed to by the parties to be based upon the obligations and the risks assumed by the parties as
of the Closing Date and are consistent with investments of this type. The liquidated damages provisions of the Transaction Documents
shall not limit or preclude a party from pursuing any other remedy available at law or in equity; provided, however, that
the liquidated damages provided for in the Transaction Documents are intended to be in lieu of actual damages.

8.14. 
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement or the other Transaction
Documents, if at any time Buyer shall or would be issued shares of Common Stock under any of the Transaction Documents, but such
issuance would cause Buyer (together with its affiliates) to beneficially own a number of shares exceeding the Maximum Percentage
(as defined in the Note), then the Company must not issue to Buyer the shares that would cause Buyer to exceed the Maximum Percentage.
The shares of Common Stock issuable to Buyer that would cause the Maximum Percentage to be exceeded are referred to herein as the
“Ownership Limitation Shares”. The Company will reserve the Ownership Limitation Shares for the exclusive benefit
of Buyer. From time to time, Buyer may notify the Company in writing of the number of the Ownership Limitation Shares that may
be issued to Buyer without causing Buyer to exceed the Maximum Percentage. Upon receipt of such notice, the Company shall be unconditionally
obligated to immediately issue such designated shares to Buyer, with a corresponding reduction in the number of the Ownership Limitation
Shares. For purposes of this Section, beneficial ownership of Common Stock will be determined under Section 13(d) of the 1934 Act.

8.15. 
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to enforce
or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded
the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of
the full amount of the attorneys’ fees, deposition costs, and expenses paid by such prevailing party in connection with arbitration
or litigation without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses.
Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and expenses for frivolous
or bad faith pleading. If (a) the Note or Warrant is placed in the hands of an attorney for collection or enforcement prior
to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding,
or Buyer otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note or any Warrant;
or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting the Company’s
creditors’ rights and involving a claim under the Note or any Warrant; then the Company shall pay the costs incurred by Buyer
for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding,
including, without limitation, attorneys’ fees, expenses, deposition costs, and disbursements.

8.16. 
Waiver. No waiver of any provision of this Agreement shall be effective unless it is in the form of a writing signed
by the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

8.17. 
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND
THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE
PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR
ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY
WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

8.18. 
Time of the Essence. Time is expressly made of the essence
of each and every provision of this Agreement and the other Transaction Documents.

[Remainder of page intentionally left blank;
signature page to follow]

    	 

    	 

    

SUBSCRIPTION AMOUNT:

 

Principal Amount of Note: $1,657,500.00

 

Initial Cash Purchase Price: $500,000.00

 

IN WITNESS WHEREOF,
the undersigned Buyer and Company have caused this Agreement to be duly executed as of the date first above written.

 

LENDER:

 

Chicago
Venture Partners, L.P.

 

By: Chicago Ventures Management, LLC,
its General Partner

 

By: CVM, Inc., its Manager

 

By:  /s/ John M. Fife

John M. Fife, President

 

 

COMPANY:

 

Cabinet
Grow, Inc.

 

 

By:/s/ Sam May

Printed Name: Sam May

Title: CEO

 

ATTACHED EXHIBITS:

 

		Exhibit	A 
Note

		Exhibit	B 
Warrant

		Exhibit	C 
Buyer Pledge Agreement

		Exhibit	D 
Allocation of Purchase Price

		Exhibit	E 
Secured Buyer Note #1

		Exhibit	F  
Secured Buyer Note #2

		Exhibit	G 
Buyer Note #3

		Exhibit	H 
Buyer Note #4

		Exhibit	I 
Security Agreement

		Exhibit	J 
Stock Pledge Agreements

		Exhibit	K 
Irrevocable Transfer Agent Instructions

		Exhibit	L 
Secretary’s Certificate

		Exhibit	M 
Share Issuance Resolution

		Exhibit	N 
Arbitration Provisions

 

    	 

    	 

    

EXHIBIT N

 

ARBITRATION PROVISIONS

 

1. 
Dispute Resolution. For purposes of this Exhibit N, the term “Claims” means any disputes,
claims, demands, causes of action, liabilities, damages, losses, or controversies whatsoever arising from related to or connected
with the transactions contemplated in the Transaction Documents and any communications between the parties related thereto, including
without limitation any claims of mutual mistake, mistake, fraud, misrepresentation, failure of formation, failure of consideration,
promissory estoppel, unconscionability, failure of condition precedent, rescission, and any statutory claims, tort claims, contract
claims, or claims to void, invalidate or terminate the Agreement or any of the other Transaction Documents. The parties hereby
agree that the arbitration provisions set forth in this Exhibit N (“Arbitration Provisions”) are binding
on the parties hereto and are severable from all other provisions in the Transaction Documents. As a result, any attempt to rescind
the Agreement or declare the Agreement or any other Transaction Document invalid or unenforceable for any reason is subject to
these Arbitration Provisions. These Arbitration Provisions shall also survive any termination or expiration of the Agreement.

 

2. 
Arbitration. Except as otherwise provided herein, all Claims must be submitted to arbitration (“Arbitration”)
to be conducted in Salt Lake County, Utah or Utah County, Utah and pursuant to the terms set forth in these Arbitration Provisions.
The parties agree that the award of the Arbitration Panel (as defined below) shall be final and binding upon the parties; shall
be the sole and exclusive remedy between them regarding any Claims, counterclaims, issues, or accountings presented or pleaded
to the Arbitration Panel; and shall promptly be payable in United States dollars free of any tax, deduction or offset (with respect
to monetary awards). Any costs or fees, including without limitation attorneys’ fees, incident to enforcing the Arbitration
Panel’s award shall, to the maximum extent permitted by law, be charged against the party resisting such enforcement. The
award shall include Default Interest (as defined in the Note) both before and after the award. Judgment upon the award of the Arbitration
Panel will be entered and enforced by a state court sitting in Salt Lake County, Utah. The parties hereby incorporate herein the
provisions and procedures set forth in the Utah Uniform Arbitration Act, U.C.A. § 78B-11-101 et seq. (as amended or
superseded from time to time, the “Arbitration Act”). Pursuant to Section 78B-11-105 of the Arbitration Act,
in the event of conflict between the terms of these Arbitration Provisions and the provisions of the Arbitration Act, the terms
of these Arbitration Provisions shall control.

 

3. 
Arbitration Proceedings. Arbitration between the parties will be subject to the following procedures:

 

3.1. 
Pursuant to Section 110 of the Arbitration Act, the parties agree that a party may initiate Arbitration by giving written
notice to the other party (“Arbitration Notice”) in the same manner that notice is permitted under Section 8.8
of the Agreement; provided, however, that the Arbitration Notice may not be given by email or fax. Arbitration will be deemed
initiated as of the date that the Arbitration Notice is deemed delivered under Section 8.8 of the Agreement (the “Service
Date”). After the Service Date, information may be delivered, and notices may be given, by email or fax pursuant to Section
8.8 of the Agreement or any other method permitted thereunder. The Arbitration Notice must describe the nature of the controversy,
the remedies sought, and the election to commence Arbitration proceedings. All Claims in the Arbitration Notice must be pleaded
consistent with the Utah Rules of Civil Procedure.

 

3.2. 
The final Arbitration hearing will be heard by a three (3) person arbitration panel (“Arbitration Panel”).
Within ten (10) calendar days after the Service Date, Investor shall select and submit to Company the names of five (5) arbitrators
that are designated as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such
five designated persons hereunder are referred to herein as the “Proposed Arbitrators”). For the avoidance of
doubt, each Proposed Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within ten (10) calendar days
after Investor has submitted to Company the names of the Proposed Arbitrators, Company must select, by written notice to Investor,
three (3) of the Proposed Arbitrators to act as the members of the Arbitration Panel. If Company fails to select three of the Proposed
Arbitrators in writing within such 10-day period, then Investor may select such three arbitrators from the Proposed Arbitrators
by providing written notice of such selection to Company. If Investor fails to identify the Proposed Arbitrators within the time
period required above, then Company may at any time prior to Investor designating the Proposed Arbitrators, select the names of
the five (5) Proposed Arbitrators. Investor may then, within ten (10) calendar days after Company has submitted notice of its Proposed
Arbitrators to Investor, select, by written notice to Company, three (3) of the Proposed Arbitrators to serve on the Arbitration
Panel. If Investor fails to select in writing and within such 10-day period the three members of the Arbitration Panel, then Company
may select such three members of the Arbitration Panel by providing written notice of such selection to Investor. After the three
members of the Arbitration Panel are selected, Investor shall designate in writing to Company the name of one of such three arbitrators
to serve as the lead arbitrator (the “Lead Arbitrator”). Subject to Paragraph 3.12 below, the cost of the arbitrators
must be paid equally by both parties; provided, however, that if one party refuses or fails to pay its portion of the arbitrators’
fees, then the other party can advance such unpaid amounts (subject to the accrual of Default Interest thereupon), with such amount
added to or subtracted from, as applicable, the award granted by the Arbitration Panel. If Utah ADR Services ceases to exist or
to provide a list of neutrals, then the arbitrators shall be selected under the then prevailing rules of the American Arbitration
Association. The date that all three selected arbitrators agree in writing to serve as the arbitrators hereunder is referred to
herein as the “Arbitration Commencement Date”.

 

3.3. 
An answer and any counterclaims to the Arbitration Notice, which must be pleaded consistent with the Utah Rules of Civil
Procedure, shall be required to be delivered to the other party within twenty (20) calendar days after the Service Date. Upon request,
the Arbitration Panel is hereby instructed to render a default award, consistent with the relief requested in the Arbitration Notice,
against a party that fails to submit an answer within such time period.

 

3.4. 
The party that delivers the Arbitration Notice to the other party shall have the option to also commence legal proceedings
with any state court sitting in Salt Lake County, Utah (“Litigation Proceedings”), subject to the following:
(i) the complaint in the Litigation Proceedings is to be substantially similar to the claims set forth in the Arbitration Notice,
provided that an additional cause of action to compel arbitration will also be included therein, (ii) so long as the other party
files an answer to the complaint in the Litigation Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings
will be stayed pending an award of the Arbitration Panel hereunder, (iii) if the other party fails to file an answer in the Litigation
Proceedings or an answer in the Arbitration Proceedings, then the party initiating Arbitration shall be entitled to a default judgment
consistent with the relief requested, to be entered in the Litigation Proceedings, and (iv) any legal or procedural issue arising
under the Arbitration Act that requires a decision of a court of competent jurisdiction may be determined in the Litigation Proceedings.
Any award of the Arbitration Panel may be entered in such Litigation Proceedings pursuant to the Arbitration Act.

 

3.5. 
Pursuant to Section 118(8) of the Arbitration Act, the parties agree that discovery shall be conducted in accordance with
the Utah Rules of Civil Procedure; provided, however, that incorporation of such rules will in no event supersede the Arbitration
Provisions set forth herein, including without limitation the time limitation set forth in Paragraph 3.9 below, and the following:

 

(a) 
The Lead Arbitrator will be responsible for determining all issues regarding discovery.

 

(b) 
Discovery will only be allowed if the likely benefits of the proposed discovery outweigh the burden or expense, and the
discovery sought is likely to reveal information that will satisfy a specific element of a claim or defense already pleaded in
the Arbitration. The party seeking discovery shall always have the burden of showing that all of the standards and limitations
set forth in these Arbitration Provisions are satisfied. The scope of discovery in the Arbitration proceedings shall also be limited
as follows:

 

(i) 
To facts directly connected with the transactions contemplated by the Agreement.

 

(ii) 
To facts and information that cannot be obtained from another source that is more convenient, less burdensome or less expensive.

 

(c) 
No party shall be allowed (a) more than fifteen (15) interrogatories (including discrete subparts), (b) more than fifteen
(15) requests for admission (including discrete subparts), (c) more than ten (10) document requests (including discrete subparts),
or (d) more than three depositions (excluding expert depositions) for a maximum of seven (7) hours per deposition.

 

3.6. 
Any party submitting any written discovery requests, including interrogatories, requests for production, subpoenas to a
party or a third party, or requests for admissions, must prepay the estimated attorneys’ fees and costs, as determined by
the Lead Arbitrator, before the responding party has any obligation to produce or respond.

 

(a) 
All discovery requests must be submitted in writing to the Lead Arbitrator and the other party before issuing or serving
such discovery requests. The party issuing the written discovery requests must include with such discovery requests a detailed
explanation of how the proposed discovery requests satisfy the requirements of these Arbitration Provisions and the Utah Rules
of Civil Procedure. Any party will then be allowed, within ten (10) calendar days of receiving the proposed discovery requests,
to submit to the Lead Arbitrator an estimate of the attorneys’ fees and costs associated with responding to such written
discovery requests and a written challenge to each applicable discovery request. After receipt of an estimate of attorneys’
fees and costs and/or challenge(s) to one or more discovery requests, the Lead Arbitrator will make a finding as to the likely
attorneys’ fees and costs associated with responding to the discovery requests and issue an order that (A) requires the requesting
party to prepay the attorneys’ fees and costs associated with responding to the discovery requests, and (B) requires the
responding party to respond to the discovery requests as limited by the Lead Arbitrator within a certain period of time after receiving
payment from the requesting party. If a party entitled to submit an estimate of attorneys’ fees and costs and/or a challenge
to discovery requests fails to do so within such 10-day period, the Lead Arbitrator will make a finding that (A) there are no attorneys’
fees or costs associated with responding to such discovery requests, and (B) the responding party must respond to such discovery
requests (as may be limited by the Lead Arbitrator) within a certain period of time as determined by the Lead Arbitrator.

 

(b) 
In order to allow a written discovery request, the Lead Arbitrator must find that the discovery request satisfies the standards
set forth in these Arbitration Provisions and the Utah Rules of Civil Procedure. The Lead Arbitrator must strictly enforce these
standards. If a discovery request does not satisfy any of the standards set forth in these Arbitration Provisions or the Utah Rules
of Civil Procedure, the Lead Arbitrator may modify such discovery request to satisfy the applicable standards, or strike such discovery
request in whole or in part.

 

(c) 
Discovery deadlines will be set forth in a scheduling order issued by the Lead Arbitrator. The parties hereby authorize
and direct the Lead Arbitrator to take such actions and make such rulings as may be necessary to carry out the parties’ intent
for the arbitration proceedings to be efficient and expeditious.

 

3.7. 
Each party may submit expert reports (and rebuttals thereto), provided that such reports must be submitted by the deadlines
established by the Lead Arbitrator. Expert reports must contain the following: (a) a complete statement of all opinions the expert
will offer at trial and the basis and reasons for them; (b) the expert’s name and qualifications, including a list of all
publications within the preceding 10 years, and a list of any other cases in which the expert has testified at trial or in a deposition
or prepared a report within the preceding 10 years; and (c) the compensation to be paid for the expert’s study and testimony.
The parties are entitled to depose any other party’s expert witness one time for no more than 4 hours. An expert may not
testify in a party’s case-in-chief concerning any matter not fairly disclosed in the expert report.

 

3.8. 
All information disclosed by either party during the Arbitration process (including without limitation information disclosed
during the discovery process) shall be considered confidential in nature. Each party agrees not to disclose any confidential information
received from the other party during the discovery process unless (i) prior to or after the time of disclosure such information
becomes public knowledge or part of the public domain, not as a result of any inaction or action of the receiving party, (ii) such
information is required by a court order, subpoena or similar legal duress to be disclosed if such receiving party has notified
the other party thereof in writing and given it a reasonable opportunity to obtain a protective order from a court of competent
jurisdiction prior to disclosure; or (iii) disclosed to the receiving party’s agents, representatives and legal counsel on
a need to know basis who each agree in writing not to disclose such information to any third party. Pursuant to Section 118(5)
of the Arbitration Act, the Lead Arbitrator is hereby authorized and directed to issue a protective order to prevent the disclosure
of privileged information and confidential information upon the written request of either party.

 

3.9. 
The parties hereby authorize and direct the Arbitration Panel to take such actions and make such rulings as may be necessary
to carry out the parties’ intent for the arbitration proceedings to be efficient and expeditious. Pursuant to Section 120
of the Arbitration Act, the parties hereby agree that an award of the Arbitration Panel must be made within 150 days after the
Arbitration Commencement Date. The Lead Arbitrator is hereby authorized and directed to hold a scheduling conference within ten
(10) calendar days after the Arbitration Commencement Date in order to establish a scheduling order with various binding deadlines
for discovery, expert testimony, and the submission of documents by the parties to enable the Arbitration Panel to render a decision
prior to the end of such 150-day period. The Utah Rules of Evidence will apply to any final hearing before the Arbitration Panel.

 

3.10. 
The decision of the Arbitration Panel shall be determined by majority vote of the arbitrators. The Arbitration Panel shall
have the right to award or include in the Arbitration Panel’s award any relief which the Arbitration Panel deems proper under
the circumstances, including, without limitation, specific performance and injunctive relief, provided that the Arbitration Panel
may not award exemplary or punitive damages. The Arbitration Panel shall select a single arbitrator to prepare the written decision
of the Arbitration Panel.

3.11. 
If any part of these Arbitration Provisions is found to violate applicable law or to be illegal, then such provision shall
be modified to the minimum extent necessary to make such provision enforceable under applicable law.

 

3.12. 
The Arbitration Panel is hereby directed to require the losing party to (i) pay the full amount of the costs and fees of
the arbitrators, and (ii) reimburse the prevailing party the reasonable attorneys’ fees, arbitrator costs, deposition costs,
and other discovery costs incurred by the prevailing party.

 

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