Document:

EXHIBIT 4.15

 

SECURITY AGREEMENT

This
Security Agreement (this “Security Agreement”), dated as of June 6, 2014, is executed by Cabinet Grow,
Inc., a Nevada corporation having a business identification number of NV20141328154 (“Debtor”), in favor of
Chicago Venture Partners, L.P., a Utah limited partnership (“Secured Party”).

A.Debtor has
issued to Secured Party a certain Secured Convertible Promissory Note of even date herewith, as may be amended from time to time,
in the original face amount of $1,657,500.00 (the “Note”).

B.In order to
induce Secured Party to extend the credit evidenced by the Note, Debtor has agreed to enter into this Security Agreement and to
grant Secured Party the security interest in the Collateral (as defined below).

NOW, THEREFORE,
in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Debtor hereby agrees with Secured Party as follows:

1. 
Definitions and Interpretation. When used in this Security Agreement, the following terms have the following respective
meanings:

“Collateral”
has the meaning given to that term in Section 2 hereof.

“Intellectual
Property” means all patents, trademarks (and all goodwill associated therewith), service marks, trade names, domain
names, websites, copyrights, trade secrets, licenses (software or otherwise), information, know-how, inventions, discoveries, published
and unpublished works of authorship, processes, any and all other proprietary rights, and all rights
corresponding to all of the foregoing throughout the world, now owned and existing or hereafter arising, created or acquired.

“Lien”
shall mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in,
of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional
sale agreement, capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing
of any financing statement or similar instrument under the UCC or comparable law of any jurisdiction.

“Obligations”
means (a) all loans, advances, future advances, debts, liabilities and obligations, howsoever arising, owed by Debtor to Secured
Party or any affiliate of Secured Party of every kind and description, now existing or hereafter arising, whether created by the
Note, this Security Agreement, that certain Securities Purchase Agreement of even date herewith, entered into by and between Debtor
and Secured Party (the “Purchase Agreement”), any other Transaction Documents (as defined in the Purchase Agreement),
any modification or amendment to any of the foregoing, guaranty of payment or other contract or by a quasi-contract, tort, statute
or other operation of law, whether incurred or owed directly to Secured Party or as an affiliate of Secured Party or acquired by
Secured Party or an affiliate of Secured Party by purchase, pledge or otherwise, (b) all costs and expenses, including attorneys’
fees, incurred by Secured Party or any affiliate of Secured Party in connection with the Note or in connection with the collection
or enforcement of any portion of the indebtedness, liabilities or obligations described in the foregoing clause (a), (c) the payment
of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Security Agreement, and
(d) the performance of the covenants and agreements of Debtor contained in this Security Agreement and all other Transaction Documents.

“Permitted
Liens” means (a) Liens for taxes not yet delinquent or Liens for taxes being contested in good faith and by appropriate
proceedings for which adequate reserves have been established, and (b) Liens in favor of Secured Party under this Security Agreement
or arising under the other Transaction Documents.

“UCC”
means the Uniform Commercial Code as in effect in the state whose laws would govern the security interest in, including without
limitation the perfection thereof, and foreclosure of the applicable Collateral.

Unless otherwise defined
herein, all terms defined in the UCC have the respective meanings given to those terms in the UCC.

2. 
Grant of Security Interest. As security for the Obligations, Debtor hereby pledges to Secured Party and grants to
Secured Party a security interest in all right, title, interest, claims and demands of Debtor in and to all of Debtors assets,
including without limitation the property described in Schedule A hereto, and all replacements, proceeds, products, and
accessions thereof (collectively, the “Collateral”).

3. 
Authorization to File Financing Statements and other Documents. Debtor hereby irrevocably authorizes Secured Party
at any time and from time to time to file in any filing office in any Uniform Commercial Code jurisdiction or other jurisdiction
of Debtor or its subsidiaries (including without limitation Nevada and California) any financing statements or documents having
a similar effect and amendments thereto that provide any other information required by the Uniform Commercial Code (or similar
law of any non-United States jurisdiction, if applicable) of such state or jurisdiction for the sufficiency or filing office acceptance
of any financing statement or amendment, including whether Debtor is an organization, the type of organization and any organization
identification number issued to Debtor. Debtor agrees to furnish any such information to Secured Party promptly upon Secured Party’s
request. Debtor further authorizes Secured Party to make any filings with the United States Patent and Trademark Office it deems
to be reasonably necessary or required in order to perfect its security interest in any of the Collateral granted herein.

4. 
General Representations and Warranties. Debtor represents and warrants to Secured Party that (a) Debtor is the owner
of the Collateral and that no other person has any right, title, claim or interest (by way of Lien or otherwise) in, against or
to the Collateral, other than Permitted Liens, (b) upon the filing of UCC-1 financing statements with the Nevada Secretary of State,
Secured Party shall have a perfected first-position security interest in the Collateral to the extent that a security interest
in the Collateral can be perfected by such filing, except for Permitted Liens, (c) all inventory has been (or, in the case
of hereafter produced inventory, will be) produced in compliance with applicable laws; (d) all accounts receivable and payment
intangibles are genuine and enforceable against the party obligated to pay the same; (e) the exact legal name of Debtor and Debtor’s
business identification number in the State of Nevada are as set forth in the first paragraph of this Security Agreement and the
mailing address of Debtor’s principal executive office is as set forth in Section 8.8 of the Purchase Agreement hereof;
and (f) the Liens in favor of Security Party under this Security Agreement are senior in priority to any other Lien granted to
or arising in favor of any third party under the Uniform Commercial Code.

5. 
Additional Covenants. Debtor hereby agrees:

5.1. 
to perform all acts that may be necessary to maintain, preserve, protect and perfect in the Collateral, the Lien granted
to Secured Party therein, and the perfection and priority of such Lien, except for Permitted Liens;

5.2. 
to procure, execute (including endorse, as applicable), and deliver from time to time any endorsements, assignments, financing
statements, certificates of title, and all other instruments, documents and/or writings reasonably deemed necessary or appropriate
by Secured Party to perfect, maintain and protect Secured Party’s Lien hereunder and the priority thereof;

5.3. 
to provide at least fifteen (15) days prior written notice to Secured Party of any of the following events: (i) any changes
or alterations of Debtor’s name, (ii) any changes with respect to Debtor’s address or principal place of business,
(iii) any reorganization, merger or consolidation involving Debtor, (iv) any change to the jurisdiction under which Debtor is organized,
(v) any adverse change in the condition of any Collateral, (vi) any adverse change to Secured Party’s interest in the Collateral,
(vii) any Lien arising against the Collateral, other than a Permitted Lien, provided that any Permitted Liens arising under the
Uniform Commercial Code shall be disclosed to Secured Party, (viii) any change to Secured Party’s security interest in the
Collateral, or (ix) the formation of any subsidiaries of Debtor;

5.4. 
upon Secured Party’s request, to endorse, assign and deliver any promissory notes included in the Collateral to Secured
Party, accompanied by such instruments of transfer or assignment duly executed in blank as Secured Party may from time to time
specify;

5.5. 
to the extent the Collateral is not delivered to Secured Party pursuant to this Security Agreement, to keep the Collateral
at the principal office of Debtor, and not to relocate the Collateral to any other locations without providing at least thirty
(30) days prior written notice to Secured Party;

5.6. 
not to sell or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral or any interest therein (other
than inventory in the ordinary course of business); and

5.7. 
not to incur any additional indebtedness or, directly or indirectly, permit any additional lien, claim or encumbrance, other
than Permitted Liens, to be secured by or recorded against the Collateral.

6. 
Authorized Action by Secured Party. Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact (which
appointment is coupled with an interest) and agrees that Secured Party may perform (but Secured Party shall not be obligated to
and shall incur no liability to Debtor or any third party for failure so to do) any act which Debtor is obligated by this Security
Agreement to perform, and to exercise such rights and powers as Debtor might exercise with respect to the Collateral, including
the right to (a) collect by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments,
proceeds and other sums and property now or hereafter payable on or on account of the Collateral; (b) enter into any extension,
reorganization, deposit, merger, consolidation or other agreement pertaining to, or deposit, surrender, accept, hold or apply other
property in exchange for the Collateral; (c) make any compromise or settlement, and take any action Secured Party deems advisable,
with respect to the Collateral, including without limitation bringing suit in Secured Party’s own name to enforce any Intellectual
Property; (d) endorse Debtor’s name on all applications, documents, papers and instruments necessary
or desirable for Secured Party in the use of any Intellectual Property; (e) grant or issue any exclusive or non-exclusive license
under any Intellectual Property to any person or entity; (f) assign, pledge, sell, convey or otherwise transfer title in or dispose
of any Intellectual Property to any person or entity; (g) cause the Commissioner of Patents and
Trademarks, United States Patent and Trademark Office (or as appropriate, such equivalent agency in foreign countries) to issue
any and all patents, trademarks and related rights and applications to Secured Party as the assignee of Debtor’s entire interest
therein; (h) file a copy of this Security Agreement with any governmental agency, body or authority, including without limitation
the United States Patent and Trademark Office and, if applicable, the United States Copyright Office or Library of Congress, at
the sole cost and expense of Debtor; (i) insure, process and preserve the Collateral; (j) pay any indebtedness of Debtor
relating to the Collateral; (k) execute and file UCC financing statements and other documents, certificates, instruments and agreements
with respect to the Collateral or as otherwise required or permitted hereunder; and (l) take any and all appropriate action and
execute any and all documents and instruments that may be necessary or useful to accomplish the purposes of this Security Agreement;
provided, however, that Secured Party shall not exercise any such powers granted pursuant to clauses (a) through (g) above
prior to the occurrence of an Event of Default (as defined in the Note) and shall only exercise such powers during the continuance
of an Event of Default. The powers conferred on Secured Party under this Section 6 are solely to protect its interests in the Collateral
and shall not impose any duty upon it to exercise any such powers. Secured Party shall be accountable only for the amounts that
it actually receives as a result of the exercise of such powers, and neither Secured Party nor any of its stockholders, directors,
officers, managers, employees or agents shall be responsible to Debtor for any act or failure to act, except with respect to Secured
Party’s own gross negligence or willful misconduct. Nothing in this Section 6 shall be deemed an authorization for Debtor
to take any action that it is otherwise expressly prohibited from undertaking by way of other provision of this Security Agreement.

7. 
Default and Remedies.

7.1. 
Default. Debtor shall be deemed in default under this Security Agreement upon the occurrence of an Event of Default.

7.2. 
Remedies. Upon the occurrence of any such Event of Default, Secured Party shall have the rights of a secured creditor
under the UCC, all rights granted by this Security Agreement and by law, including, without limiting the foregoing, (a) the right
to require Debtor to assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party,
and (b) the right to take possession of the Collateral, and for that purpose Secured Party may enter upon premises on which the
Collateral may be situated and remove the Collateral therefrom. Debtor hereby agrees that fifteen (15) days’ notice of a
public sale of any Collateral or notice of the date after which a private sale of any Collateral may take place is reasonable.
In addition, Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of Secured
Party’s rights and remedies hereunder, including, without limitation, Secured Party’s right following an Event of Default
to take immediate possession of Collateral and to exercise Secured Party’s rights and remedies with respect thereto. Secured
Party may also have a receiver appointed to take charge of all or any portion of the Collateral and to exercise all rights of Secured
Party under this Security Agreement. Secured Party may exercise any of its rights under this Section 7.2 without demand or notice
of any kind. The remedies in this Security Agreement, including without limitation this Section 7.2, are in addition to, not in
limitation of, any other right, power, privilege, or remedy, either in law, in equity, or otherwise, to which Secured Party may
be entitled. No failure or delay on the part of Secured party in exercising any right, power, or remedy will operate as a waiver
thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any
other right hereunder. All of Secured Party’s rights and remedies, whether evidenced by this Security Agreement or by any
other agreement, instrument or document shall be cumulative and may be exercised singularly or concurrently.

7.3. 
Standards for Exercising Rights and Remedies. To the extent that applicable law imposes duties on Secured Party to
exercise remedies in a commercially reasonable manner, Debtor acknowledges and agrees that it is not commercially unreasonable
for Secured Party (a) to fail to incur expenses reasonably deemed significant by Secured Party to prepare Collateral for disposition,
(b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other
law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or
disposed of, (c) to fail to exercise collection remedies against account debtors or other persons obligated on Collateral or to
fail to remove liens or encumbrances on or any adverse claims against Collateral, (d) to exercise collection remedies against account
debtors and other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists,
(e) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral
is of a specialized nature, (f) to contact other persons, whether or not in the same business as Debtor, for expressions of interest
in acquiring all or any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing
so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim
disposition warranties, (k) to purchase insurance or credit enhancements to insure Secured Party against risks of loss, collection
or disposition of Collateral or to provide to Secured Party a guaranteed return from the collection or disposition of Collateral,
or (l) to the extent deemed appropriate by Secured Party, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist Secured Party in the collection or disposition of any of the Collateral. Debtor acknowledges
that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by Secured Party would fulfill
Secured Party’s duties under the UCC in Secured Party’s exercise of remedies against the Collateral and that other
actions or omissions by Secured Party shall not be deemed to fail to fulfill such duties solely on account of not being indicated
in this Section. Without limitation upon the foregoing, nothing contained in this Section shall be construed to grant any rights
to Debtor or to impose any duties on Secured Party that would not have been granted or imposed by this Security Agreement or by
applicable law in the absence of this Section.

7.4. 
Marshalling. Secured Party shall not be required to marshal any present or future Collateral for, or other assurances
of payment of, the Obligations or to resort to such Collateral or other assurances of payment in any particular order, and all
of its rights and remedies hereunder and in respect of such Collateral and other assurances of payment shall be cumulative and
in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, Debtor hereby agrees
that it will not invoke any law relating to the marshalling of Collateral which might cause delay in or impede the enforcement
of Secured Party’s rights and remedies under this Security Agreement or under any other instrument creating or evidencing
any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment
thereof is otherwise assured, and, to the extent that it lawfully may, Debtor hereby irrevocably waives the benefits of all such
laws.

7.5. 
Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the proceeds
and the avails of any remedy hereunder (as well as any other amounts of any kind held by Secured Party at the time of, or received
by Secured Party after, the occurrence of an Event of Default) shall be paid to and applied as follows:

(a) 
First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral,
of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses,
liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or made hereunder by Secured Party;

(b) 
Second, to the payment to Secured Party of the amount then owing or unpaid on the Note (to be applied first to accrued interest
and second to outstanding principal) and all amounts owed under any of the other Transaction Documents; and

(c) 
Third, to the payment of the surplus, if any, to Debtor, its successors and assigns, or to whosoever may be lawfully entitled
to receive the same.

In the absence of
final payment and satisfaction in full of all of the Obligations, Debtor shall remain liable for any deficiency.

8. 
Miscellaneous.

8.1. 
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled
“Notices” in the Purchase Agreement, the terms of which are incorporated herein by reference.

8.2. 
Non-waiver. No failure or delay on Secured Party’s part in exercising any right hereunder shall operate as
a waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise
thereof or of any other right.

8.3. 
Amendments and Waivers. This Security Agreement may not be amended or modified, nor may any of its terms be waived,
except by written instruments signed by Debtor and Secured Party. Each waiver or consent under any provision hereof shall be effective
only in the specific instances for the purpose for which given.

8.4. 
Assignment. This Security Agreement shall be binding upon and inure to the benefit of Secured Party and Debtor and
their respective successors and assigns; provided, however, that Debtor may not sell, assign or delegate rights and obligations
hereunder without the prior written consent of Secured Party.

8.5. 
Cumulative Rights, etc. The rights, powers and remedies of Secured Party under this Security Agreement shall be in
addition to all rights, powers and remedies given to Secured Party by virtue of any applicable law, rule or regulation of any governmental
authority, or the Note, all of which rights, powers, and remedies shall be cumulative and may be exercised successively or concurrently
without impairing Secured Party’s rights hereunder. Debtor waives any right to require Secured Party to proceed against any
person or entity or to exhaust any Collateral or to pursue any remedy in Secured Party’s power.

8.6. 
Partial Invalidity. If any part of this Security Agreement is construed to be in violation of any law, such part
shall be modified to achieve the objective of the parties to the fullest extent permitted and the balance of this Security Agreement
shall remain in full force and effect.

8.7. 
Expenses. Debtor shall pay on demand all reasonable fees and expenses, including reasonable attorneys’ fees
and expenses, incurred by Secured Party in connection with the custody, preservation or sale of, or other realization on, any of
the Collateral or the enforcement or attempt to enforce any of the Obligations which are not performed as and when required by
this Security Agreement.

8.8. 
Entire Agreement. This Security Agreement and the other Transaction Documents, taken together, constitute and contain
the entire agreement of Debtor and Secured Party with respect to this particular matter and supersede any and all prior agreements,
negotiations, correspondence, understandings and communications between the parties, whether written or oral, respecting the subject
matter hereof.

8.9. 
Governing Law. Except as otherwise specifically set forth herein, the parties expressly agree that this Security
Agreement shall be governed solely by the laws of the State of Utah, without giving effect to the principles thereof regarding
the conflict of laws; provided, however, that enforcement of Secured Party’s rights and remedies against the Collateral
as provided herein will be subject to the UCC.

8.10. 
Waiver of Jury Trial. EACH PARTY TO THIS SECURITY AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO
DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS SECURITY 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 IT IS KNOWINGLY AND VOLUNTARILY
WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

8.11. 
Purchase Agreement; Arbitration of Disputes. By executing this Security Agreement, each party agrees to be bound
by the terms, conditions and general provisions of the Purchase Agreement and the other Transaction Documents, including without
limitation the Arbitration Provisions (as defined in the Purchase Agreement) set forth as an Exhibit to the Purchase Agreement.

8.12. 
Counterparts. This Security Agreement may be executed in any number of counterparts, each of which shall be an original
and all of which together shall constitute one instrument. Facsimile copies of signed signature pages will be deemed binding originals.

8.13. 
Termination of Security Interest. Upon the payment in full of all Obligations, the security interest granted herein
shall terminate and all rights to the Collateral shall revert to Debtor. Upon such termination, Secured Party hereby authorizes
Debtor to file any UCC termination statements necessary to effect such termination and Secured Party will execute and deliver to
Debtor any additional documents or instruments as Debtor shall reasonably request to evidence such termination.

8.14. 
Time of the Essence. Time is expressly made of the essence with respect to each and every provision of this Security
Agreement.

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

 

    	 

    	 

    

IN WITNESS WHEREOF,
Secured Party and Debtor have caused this Security Agreement to be executed as of the day and year first above written.

SECURED PARTY:

 

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

 

 

DEBTOR:

 

Cabinet
Grow, Inc.

 

 

By:/s/ Sam May

Name: Sam May

Title: CEO

    	 

    	 

    

 

SCHEDULE A

TO SECURITY AGREEMENT

 

All right, title, interest,
claims and demands of Debtor in and to the following property:

 

· 
All customer accounts, insurance contracts, and clients underlying such insurance contracts, including without limitation
those insurance contracts and customer accounts acquired by Debtor from Secured Party pursuant to an asset purchase agreement between
such parties dated on or about May 31, 2013;

 

· 
All goods and equipment now owned or hereafter acquired, all equipment, computer equipment, office equipment, machinery,
fixtures, vehicles, and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions,
additions, and improvements to any of the foregoing, wherever located;

 

· 
All inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies,
packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Debtor’s
custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Debtor’s
books relating to any of the foregoing;

 

· 
All accounts receivable, contract rights, general intangibles, health care insurance receivables, payment intangibles and
commercial tort claims, now owned or hereafter acquired, including, without limitation, all Intellectual Property and other patents,
patent rights (and applications and registrations therefor); trademarks and service marks (and applications and registrations therefor
and all goodwill associated therewith), including without limitation the following trademarks and trademark applications therefor:
(i) Service Mark: Cabinet Grow, Date of Application: October 30, 2013, Serial No. 86105353; (ii) Service Mark: Flip LED, Date of
Application: April 30, 2014, Serial No. 86268123; and (iii) Service Mark: Universal Hydro, Date of Publication: August 2, 2011,
Serial No. 85-257,657; all inventions, copyrights, mask works (and applications and registrations therefor), trade names, trade
styles, software and computer programs including source code; all domain names and websites (including without limitation www.cabinetgrow.com),
all phone numbers of Debtor, including (888-544-9376); all email addresses (including without limitation info@cabinetgrow.com);
all trade secrets, methods, processes, know how, drawings, specifications, descriptions; and all memoranda, notes, and records
with respect to any research and development, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase
orders, customer lists, route lists, infringements, claims, computer programs, computer disks, computer tapes, literature, reports,
catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind and whether in tangible or
intangible form or contained on magnetic media readable by machine together with all such magnetic media;

 

· 
All now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations
owing to Debtor arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Debtor (subject,
in each case, to the contractual rights of third parties to require funds received by Debtor to be expended in a particular manner),
whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all
merchandise returned to or reclaimed by Debtor and Debtor’s books relating to any of the foregoing;

 

· 
All documents, cash, deposit accounts, letters of credit, letter of credit rights, supporting obligations, certificates
of deposit, instruments, chattel paper, electronic chattel paper, tangible chattel paper and investment property, including, without
limitation, all securities, whether certificated or uncertificated, security entitlements, securities accounts, commodity contracts
and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter
acquired and Debtor’s books relating to the foregoing;

 

· 
Those certain Secured Buyer Notes (comprised of Secured Buyer Note #1 in the original principal amount of $250,000.00 and
Secured Buyer Note #2 in the original principal amount of $250,000.00) and Buyer Notes (comprised of Buyer Note #3 in the original
principal amount of $250,000.00 and Buyer Note #4 in the original principal amount of $250,000.00) issued by Secured Party in favor
of Debtor on June __, 2014;

 

· 
All other goods and personal property of Debtor, wherever located, whether tangible or intangible, and whether now owned
or hereafter acquired; and

 

· 
Any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and
proceeds and products thereof, including, without limitation, insurance, condemnation, requisition or similar payments and the
proceeds thereof.EXHIBIT 4.16

 

 

 

IRREVOCABLE LETTER OF INSTRUCTIONS TO TRANSFER AGENT

 

Date: June 6, 2014

 

To the transfer agent of Cabinet Grow, Inc.

 

Re:Instructions to Reserve
and Transfer Shares

 

Ladies and Gentlemen:

 

Reference is made
to that certain Secured Convertible Promissory Note dated as of June 6, 2014 (as the same may be amended or exchanged from time
to time, the “Note”), made by Cabinet Grow, Inc., a Nevada corporation (the “Company”), pursuant
to which the Company agreed to pay to Chicago Venture Partners, L.P., a Utah limited partnership, its successors and/or assigns
(the “Holder”), the aggregate sum of $1,657,500.00, plus interest, fees, and collection costs. The Note was
issued pursuant to that certain Securities Purchase Agreement dated June 6, 2014, by and between the Company and the Holder (the
“Purchase Agreement” and together with the Note, the Warrant (as defined below), and all other documents entered
into in conjunction therewith, including any amendments hereto, the “Loan Documents”). Pursuant to the terms
of the Note, the Note may be converted into shares of the common stock, par value $0.001 per share, of the Company (the “Common
Stock”) (the shares of Common Stock issuable upon any conversion or otherwise under the Note, the “Conversion
Shares”).

Reference is also
made to that certain Warrant to Purchase Shares of Common Stock dated June 6, 2014 (as the same may be amended or exchanged from
time to time, the “Warrant”), issued by the Company in connection with the Purchase Agreement, pursuant to which
the Holder may purchase shares of Common Stock. All shares of Common Stock that may be purchased under the Warrant or that the
Company is otherwise required to issue to the Holder or its broker upon any exercise of the Warrant are hereinafter referred to
as the “Warrant Shares”. The Conversion Shares, together with the Warrant Shares, are hereinafter referred to
as the “Shares”.

Pursuant to the
terms of the Purchase Agreement, until all of the Company’s obligations under the Purchase Agreement and the Note are paid
and performed in full and the Warrant is exercised in full (or otherwise expired), the Company has agreed to at all times establish
a reserve of shares of authorized but unissued Common Stock equal to the amount calculated as follows (such calculated amount is
referred to herein as the “Share Reserve”): (i) three times the higher of (1) the Outstanding Balance (as defined
in and determined pursuant to the Note, but only with respect to Conversion Eligible Tranches (as defined in the Note)) divided
by the Conversion Price (as defined in and determined pursuant to the Note), and (2) the Outstanding Balance divided by the Market
Price (as defined in and determined pursuant to the Note), plus (ii) three times the number of Delivery Shares (as defined
in and determined pursuant to the Warrant) that would be required to be delivered to the Holder in order to effect a complete exercise
of the Warrant pursuant to the terms thereof.

This irrevocable
letter of instructions (this “Letter”) shall serve as the authorization and direction of the Company to VStock
Transfer, LLC, or its successors, as the Company’s transfer agent (hereinafter, “you” or “your”),
to reserve shares of Common Stock and to issue (or where relevant, to reissue in the name of Holder) shares of Common Stock to
the Holder or its broker, upon conversion of the Note or exercise of the Warrant, as follows:

1. 
From and after the date hereof and until all of the Company’s obligations under the Purchase Agreement and the Note
are paid and performed in full and the Warrant is exercised in full (or otherwise expired), (a) you shall establish a reserve of
shares of authorized but unissued Common Stock in an amount not less than 10,000,000 shares (the “Transfer Agent Reserve”),
(b) you shall maintain and hold the Transfer Agent Reserve for the exclusive benefit of the Holder, (c) you shall issue the shares
of Common Stock held in the Transfer Agent Reserve to the Holder or its broker only (subject to the immediately following clause
(d)), (d) when you issue shares of Common Stock to the Holder or its broker under the Note or Warrant pursuant to the other instructions
in this Letter, you shall not issue any such shares from the Transfer Agent Reserve, unless the Holder delivers to you written
pre-approval of such issuance, (e) you shall not reduce the Transfer Agent Reserve under any circumstances, unless the Holder delivers
to you written pre-approval of such reduction, and (f) you shall immediately add shares of Common Stock to the Transfer Agent Reserve
in increments of 1,000,000 shares as and when requested by the Company or the Holder in writing from time to time, provided that
such incremental increases do not cause the Transfer Agent Reserve to exceed the Share Reserve.

2. 
You shall issue the Conversion Shares to the Holder or its broker in accordance with Paragraph 4 upon a conversion of all
or any portion of the Note, upon delivery to you of (a) a duly executed Lender Conversion Notice substantially in the form attached
hereto as Exhibit A (a “Lender Conversion Notice”), a duly executed Installment Notice substantially
in the form attached hereto as Exhibit B (an “Installment Notice”), and/or a True-Up Notice substantially
in the form attached hereto as Exhibit C (a “True-Up Notice”, and together with a Lender Conversion Notice
and an Installment Notice, a “Conversion Notice”), and (b) either (i) written confirmation from the Holder that
the Conversion Shares are registered pursuant to an effective registration statement under the Securities Act of 1933, as amended
(the “1933 Act”), or (ii) a legal opinion from either the Holder’s or the Company’s counsel that
the issuance of the Conversion Shares to the Holder is exempt from registration under the 1933 Act or otherwise as to the free
transferability of the Conversion Shares, dated within ninety (90) days from the date of conversion; provided, however,
that (assuming the Conversion Shares are not registered for resale under the 1933 Act) unless such opinion of counsel indicates
that, pursuant to Rule 144 promulgated under the 1933 Act (“Rule 144”) or any other available exemption under
the 1933 Act, certificates may be issued or delivered without restrictive legend in accordance with the applicable securities laws
of the United States, then any certificates for such Conversion Shares shall bear the following restrictive legend:

THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD
OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

Please note that a
share issuance resolution is not required for each conversion since this Letter and the Loan Documents have been approved by resolution
of the Company’s board of directors (the “Board Resolution”). Pursuant to the Board Resolution, all of
the Conversion Shares are authorized to be issued to the Holder. For the avoidance of doubt, this Letter is your authorization
and instruction by the Company to issue the Conversion Shares pursuant to this Letter without any further authorization or direction
from the Company. You shall rely exclusively on the instructions in this Letter and shall have no liability for relying on any
Conversion Notice provided by the Holder. Any Conversion Notice delivered hereunder shall constitute an irrevocable instruction
to you to process such notice or notices in accordance with the terms thereof, without any further direction or inquiry. Such notice
or notices may be transmitted to you by fax, email, or any commercially reasonable method.

3. 
You shall issue the Warrant Shares to Holder or its broker in accordance with Paragraph 4 upon exercise of all or any portion
of the Warrant, upon delivery to you of (a) a duly executed Notice of Exercise substantially in the form attached hereto as Exhibit
D (the “Notice of Exercise”), and (b) either (i) written confirmation from the Holder that the Warrant Shares
are registered pursuant to an effective registration statement under the 1933 Act, or (ii) a legal opinion from either the Holder’s
or the Company’s counsel that the issuance of the Warrant Shares to the Holder is exempt from registration under the 1933
Act or otherwise as to the free transferability of the Warrant Shares, dated within ninety (90) days from the exercise date; provided,
however, that (assuming the Warrant Shares are not registered for resale under the 1933 Act) unless such opinion of counsel
indicates that, pursuant to Rule 144 or any other available exemption under the 1933 Act, certificates may be issued or delivered
without restrictive legend in accordance with the applicable securities laws of the United States, then any certificates for such
Warrant Shares shall bear the following restrictive legend:

THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE
AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.

 

No separate share
issuance resolution from the Company is required with respect to each exercise of the Warrant and issuance of Warrant Shares. You
shall rely exclusively on the instructions in this Letter and shall have no liability for relying on any Notice of Exercise provided
by Holder. Any Notice of Exercise delivered hereunder shall constitute irrevocable instructions to you to process such notice or
notices in accordance with the terms thereof, without any further direction or inquiry. Such notice or notices may be transmitted
to you by fax, email, or any commercially reasonable method.

4. 
Upon your receipt of a Conversion Notice or Notice of Exercise pursuant to Paragraph 2 and/or Paragraph 3 above, you shall,
within three (3) Trading Days (as defined below) thereafter, (a) if you are eligible to participate in the Depository Trust Company
(“DTC”) Fast Automated Securities Transfer Program, and the Common Stock is eligible to be transferred electronically
with DTC through the Deposit Withdrawal at Custodian system (“DWAC Eligible”), credit such aggregate number
of DWAC Eligible shares of the Common Stock to the Holder’s or its designee’s balance account with DTC, provided the
Holder identifies its bank or broker (by providing its name and DTC participant number) and causes its bank or broker to initiate
such DWAC Eligible transaction, or (b) if the Common Stock is not then DWAC Eligible, issue and deliver to the Holder or its broker
(as specified in the applicable Conversion Notice or Notice of Exercise), via reputable overnight courier, to the address specified
in the Conversion Notice or the Notice of Exercise, as the case may be, a certificate, registered in the name of the Holder or
its designee, representing such aggregate number of shares of Common Stock as have been requested by the Holder to be transferred
in the Conversion Notice or the Notice of Exercise, as applicable. For purposes hereof, “Trading Day” shall
mean any day on which the New York Stock Exchange is open for customary trading. Notwithstanding any other provision hereof, the
Company and the Holder understand that you shall not be required to perform any issuance or transfer of Shares if (y) such an issuance
or transfer of Shares is in violation of any state or federal securities laws or regulations, or (z) the issuance or transfer of
Shares is prohibited or stopped as required or directed by a court order. Additionally, the Company and the Holder understand that
you shall not be required to perform any issuance or transfer of Shares if the Company is in default of its payment obligations
under its agreement with you; provided, however, that in such case the Holder shall have the right to pay the applicable
issuance or transfer fee on behalf of the Company and upon payment of the issuance or transfer fee by the Holder, you shall be
obligated to make the requested issuance or transfer.

5. 
You understand that a delay in the delivery of Shares hereunder could result in economic loss to the Holder and that time
is of the essence in your processing of each Conversion Notice and Notice of Exercise.

6. 
To the extent the applicable Shares being issued or reissued will be certificated, the certificates representing the Shares
to be issued or reissued pursuant to Paragraph 2 or Paragraph 3 above shall (a) be in the name of the Holder, (b) not bear any
legend restricting transfer, (c) not be subject to any stop-transfer restrictions, and (d) shall otherwise be freely transferable
on the books and records of the Company, if:

6.1. 
the Conversion Notice or Notice of Exercise, as applicable, is accompanied by the opinion of counsel described in Paragraph
2 or Paragraph 3 opining that, pursuant to Rule 144 or any other available exemption under the 1933 Act, the certificates may be
issued or delivered without restrictive legend in accordance with the applicable securities laws of the United States;

6.2. 
the Conversion Notice or Notice of Exercise, as applicable, is accompanied by a shareholder representation letter providing
that (a) the date on which the Conversion Notice or Notice of Exercise is submitted to you is (i) more than twelve (12) months
following the date the Note or Warrant was issued or (ii) more than six (6) months (but not more than twelve (12) months) following
the date the Note or Warrant was issued, and (b) the holder is not an “affiliate”, as defined in Rule 144 (a)(i) under
the 1933 Act, of the Company; and

6.3. 
only to the extent Paragraph 6.2(a)(ii) immediately above is applicable, the Company is subject to the reporting requirements
of Sections 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and is current in its reporting obligations thereunder.

7. 
You are hereby authorized and directed to promptly disclose to the Holder, after Holder’s request from time to time,
the total number of shares of Common Stock issued and outstanding and the total number of shares that are authorized but unissued
and unreserved.

8. 
The Company hereby confirms to you and to the Holder that no instruction other than as contemplated herein (including instructions
to increase the Transfer Agent Reserve as necessary pursuant to Paragraph 1(f) above) will be given to you by the Company with
respect to the matters referenced herein. The Company hereby authorizes you, and you shall be obligated, to disregard any contrary
instruction received by or on behalf of the Company or any other person purporting to represent the Company.

9. 
The Company hereby agrees not to change its transfer agent (including without limitation VStock Transfer, LLC) without first
(i) providing the Holder with at least 30-days’ written notice of such proposed change, and (ii) obtaining the Holder’s
written consent to such proposed change. Any such consent is conditioned upon the new transfer agent executing an irrevocable letter
of instructions substantially similar to this Letter so that such transfer agent is bound by the same terms set forth herein. You
agree not to help facilitate any change to the Company’s transfer agent without first receiving such written consent to such
change from the Holder.

10. 
The Company acknowledges that the Holder is relying on the representations and covenants made by the Company in this Letter
and that the representations and covenants contained in this Letter constitute a material inducement to the Holder to make the
loan evidenced by the Note. The Company further acknowledges that without such representations and covenants of the Company, the
Holder would not have made the loan to the Company evidenced by the Note.

11. 
The Company shall indemnify you and your officers, directors, principals, partners, agents and representatives, and hold
each of them harmless from and against any and all loss, liability, damage, claim or expense (including the reasonable fees and
disbursements of its attorneys) incurred by or asserted against you or any of them arising out of or in connection with the instructions
set forth herein, the performance of your duties hereunder and otherwise in respect hereof, including the costs and expenses of
defending yourself or themselves against any claim or liability hereunder, except that the Company shall not be liable hereunder
as to matters in respect of which it is determined that you have acted with gross negligence or in bad faith.

12. 
The Holder is an intended third-party beneficiary of this Letter. The parties hereto specifically acknowledge and agree
that in the event of a breach or threatened breach by a party hereto of any provision hereof, the Holder will be irreparably damaged,
and that damages at law would be an inadequate remedy if this Letter were not specifically enforced. Therefore, in the event of
a breach or threatened breach of this Letter, the Holder shall be entitled, in addition to all other rights or remedies, to an
injunction restraining such breach, without being required to show any actual damage or to post any bond or other security, and/or
to a decree for a specific performance of the provisions of this Letter.

13. 
This Letter shall be fully binding and enforceable against the Company even if it is not signed by the Company’s transfer
agent. If the Company takes (or fails to take) any action contrary to this Letter, then such action or inaction will constitute
a default under the Loan Documents. Although no additional direction is required by the Company, any refusal by the Company to
immediately confirm this Letter and the instructions contemplated herein to the Company’s transfer agent will constitute
a default under the Loan Documents.

14. 
Whenever possible, each provision of this Letter shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Letter shall be invalid or unenforceable in any jurisdiction, such provision shall
be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Letter or the validity or enforceability of this Letter in any
other jurisdiction.

15. 
By signing below, each individual executing this Letter on behalf of an entity represents and warrants that he or she has
authority to so execute this Letter on behalf of such entity and thereby bind such entity to the terms and conditions hereof.

16. 
This Letter is governed by Utah law. By signing below, each party to this Letter represents and warrants that such party
has received good and valuable consideration in exchange for executing this Letter.

[SIGNATURE PAGE FOLLOWS]

    	 

    	 

    

Very truly yours,

 

Cabinet
Grow, Inc.

 

 

By: /s/ Barry Hollander

Name: Barry Hollander

Title: CFO

 

 

ACKNOWLEDGED AND AGREED:

 

HOLDER:

 

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

 

 

 

TRANSFER AGENT:

 

VSTOCK
TRANSFER, LLC

 

 

By: /s/ Yoel Goldfeder

Name: Yoel Goldfeder

Title: CEO 

 

 

Attachments:

 

Exhibit A – Form of Lender Conversion
Notice

Exhibit B – Form of Installment Notice

Exhibit C – Form of True-Up Notice

Exhibit D – Form of Notice of Exercise

    	 

    	 

    

EXHIBIT A

 

FORM OF CONVERSION NOTICE

 

[attached]

 

    	 

    	 

    

EXHIBIT B

 

FORM OF INSTALLMENT NOTICE

 

[attached]

 

    	 

    	 

    

EXHIBIT C

 

FORM OF TRUE-UP NOTICE

 

[attached]

 

 

 

 

 

    	 

    	 

    

 

EXHIBIT D

 

FORM OF NOTICE OF EXERCISE

 

[attached]

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