Document:

EX-10.4

 Exhibit 10.4 

SAN DIEGO SUNRISE, LLC 

WITHDRAWAL AGREEMENT, 

FIRST AMENDMENT TO LIMITED LIABILITY AGREEMENT 

This Withdrawal Agreement and First Amendment to Limited Liability Agreement, dated as of April 6, 2016 (this “Agreement”), is entered into
by and among Notis Global, Inc. (“Notis”), JNO 50, LLC (“JNO”), John Olander (“Olander”) and Mark DeNigris (“DeNigris”). 

RECITALS 
 WHEREAS,
San Diego Sunrise, LLC, a California limited liability company (“San Diego Sunrise”) has as its equal members, Notis and JNO, and in turn owns a thirty percent membership interest in Sunrise Dispensary, LLC, a California limited
liability company (“Sunrise Dispensary”); 
 WHEREAS, pursuant to that certain Unit Purchase Agreement dated as of
April 6, 2016 (“Unit Purchase Agreement”) among San Diego Sunrise, and Mishil Yousif, Sami Harmis and Sami Younis (collectively, “Buyers”), the Buyers’ are purchasing Notis’ fifteen percent beneficial
interest in Sunrise Dispensary; 
 WHEREAS, in order to more fully implement the transactions contemplated by the Unit Purchase
Agreement, the parties desire to execute this Agreement to (i) document the withdrawal of Notis as a member of San Diego Sunrise and (ii) amend the limited liability company agreement of San Diego Sunrise (“”LLC Agreement”) to
give effect to that withdrawal 
 NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereby agree as follows: 

1. Definitions. Except to the extent otherwise specified herein, capitalized terms used in this Agreement shall have the
meanings ascribed to them in the LLC Agreement. 
 2. Withdrawal of Member. Pursuant to this Agreement, Notis withdraws as a
member of San Diego Sunrise, effective at 5:00 p.m. pdt on the date of this Agreement. As part of the withdrawal, Clint Pyat and Jeff Goh hereby resign as Managers of San Diego Sunrise. 

3. Amendment to LLC Agreement. The LLC Agreement is hereby amended by (i) replacing Exhibit A thereto with Exhibit A, attached
hereto and (ii) appointing JNO as the sole Manager of San Diego Sunrise. 
 4. General Release. 

(a) General Release. In consideration of issuance of the Warrant (as defined below) by Notis to JNO, and for other good and
valuable consideration, JNO, Olander and DeNigris on behalf of themselves, their assigns, managers, members, officers, employees, successors and affiliates, past and present, and each of them (the “JNO Parties”), hereby fully
release and discharge Notis, and its directors, officers, employees, successors and affiliates, past and present, and each of them (the “Notis Parties”) in their individual and business capacities with respect to and from any and
all claims, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, 

 
orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which the JNO
Parties now own or hold or has at any time heretofore owned or held or may in the future hold as against Notis Parties, whether or not arising out of or in any way connected with the Notis Parties’ membership in San Diego Sunrise, or the
organization, capitalization or management thereof, or any other transactions, occurrences, acts or omissions, or any loss, damage or injury whatever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part
of the Notis Parties, or any of them, committed or omitted prior to the date of this Agreement. 
 (b) Section 1542 Waiver.
It is the intention of the parties in executing this Agreement that it shall be effective as a bar to each and every claim, demand and cause of action hereinabove specified. In furtherance of this intention, the parties hereby expressly waive any
and all rights and benefits conferred upon them by the provisions of Section 1542 of the California Civil Code and expressly consent that this Agreement shall be given full force and effect according to each and all of its express terms and
provisions, including those related to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action hereinabove specified. Section 1542 provides: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 Each party acknowledges
that it may hereafter discover claims or facts in addition to or different from those which such party now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this
Agreement, may have materially affected this settlement. Nevertheless, each party hereby waives any right, claim or cause of action that might arise as a result of such different or additional claims or facts. Each party, after representation by and
consultation with counsel, acknowledges that it understands the significance and consequence of such release and such specific waiver of Section 1542. 

(c) Warrant. As additional consideration to induce JNO to enter into this Agreement and for the general release provided in
this Section 4, Notis shall, within ten days following the date of this Agreement, issue to JNO a warrant (the “Warrant”) granting JNO the right to purchase up to 500,000 common shares of Notis, at an exercise price of $.03 per
share for a term of three years from the date hereof. The Warrant will be issued in a private transaction intended to be exempt from the registration requirements of applicable state and federal securities laws. 

5. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed
an original but all such counterparts shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by telecopier or “pdf” shall be as effective as delivery of a manually executed
counterpart signature page to this Agreement. 
 6. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAW PROVISIONS) OF THE STATE OF CALIFORNIA. 
 7.
Headings. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their duly authorized officers as of the day and year first above written. 
  

			
	NOTIS GLOBAL, INC.
		
	By:	 	 /s/ Jeff Goh

	Name:	 	Jeff Goh
	Title:	 	CEO
	
	JNO 50, LLC
		
	By:	 	 /s/ John Olander

	Name:	 	John Olander
	Title:	 	Manager/Member
	
	 /s/ John Olander

	John Olander
	
	 /s/ Mark DeNigris

	Mark DeNigris

 We hereby resign as Managers of San Diego Sunrise. 

 

	
	 /s/ Jeff Goh

	Jeff Goh
	
	 /s/ Clinton Pyatt

	Clinton PyattEX-10.1

 Exhibit 10.1 

LOAN SERVICING AGREEMENT 

AND AUTHORIZATION TO COLLECT 

This Agreement is entered into as of the date set forth below by and
between                    ,
                    , a                     ,
                     corporation (“Broker”) and the undersigned beneficiary (“Beneficiary”) for the purpose of establishing the
terms, conditions and authority for the servicing of a loan evidenced by a promissory note (the “Note”) and deed of trust (the “Deed of Trust”), described as follows: 

 

																	
	Borrower:	 	  

 

													
	Loan Amount:	  	  
	  		  	Term:	  	  
	  	        Interest Rate:	  	                    %    

  

																	
	Late Charge:	 	  
	  		  	Prepayment Bonus:	  		  	Yes	  	         ̈        	  	No	  	    x    

  

									
	Deed of Trust Recorded: Series #	  	  
	  	County	  	  
	  	, CA    

  

							
	Beneficiary’s Investment:	  	  
	  	Percentage of Ownership:                	  	                    %    

 It is understood that the Beneficiary’s interest in said Note may be a fractional undivided ownership
interest, and that other lenders (“partial beneficiaries”) also may own fractional undivided interests in said Note. Beneficiary and the other partial beneficiaries (collectively “Beneficiaries”) are not engaged in a partnership
or joint venture, but their relationship is specifically agreed to be that of tenants in common. This Agreement shall be executed in counterpart by all Beneficiaries, each of which shall be deemed an original and all of which together shall
constitute one agreement, and the terms hereof shall be uniformly binding upon and enforceable by Beneficiary and all other partial beneficiaries, against Broker and as between themselves. If Broker has previously originated and funded the Note and
Deed of Trust in Broker’s own name or the interest in the Note and Deed of Trust covered herby were previously held by another investor, Broker agrees to cause the Note to be duly endorsed or assigned to Beneficiary and to cause an assignment
of the Deed of Trust to be recorded in favor of Beneficiary in the official records of the county where the security property is located within ten (10) business days after Broker receives any funds from Beneficiary or after close of escrow. 

Beneficiary hereby appoints Broker to service the Note on his behalf from and after the close of escrow, to hold the original Note and the
original Deed of Trust as Beneficiary’s agent, and to deliver copies of all other documents as provided in Beneficiary’s escrow instructions executed in connection with this loan transaction to Beneficiary at the address indicated below.
Such servicing activities shall include all activities reasonably and customarily required to collect, disburse and account for payment of principal, interest, late charges and prepayment bonuses under the Note and to enforce all the terms and
provisions of the Note and Deed of Trust including, without limitation, the commencement of foreclosure proceedings. Broker accepts such appointment and agrees to use diligence in the performance of its duties hereunder. 

Broker further agrees as follows: (1) All loan payments received by Broker hereunder shall be deposited immediately into Broker’s trust
account, which trust account shall be maintained in accordance with the provisions of law and regulations applicable to trust accounts of licensed real estate Brokers and in accordance with the provisions of subsection 10238(k) of the California
Real Estate Law; (2) Such loan payments shall not be commingled with the other assets of Broker or any affiliate, or used for any transaction other than the transaction for which such funds are received by Broker; (3) All loan payments received on
the Note (less service fees as described below and other costs, charges, and anticipated foreclosure expenses) shall be transmitted to Beneficiary and the other partial beneficiaries pro rata according to their respective percentage ownership
interests in the Note within 25 days after receipt thereof by Broker; (4) Broker shall provide Beneficiary with a monthly and annual accounting of Beneficiary’s interest in the Note in conformance with Section 10233(b) of the California Real
Estate Law; (5) Broker shall use diligence and care to assure that proper casualty insurance is maintained on the real property covered by the Deed of Trust or Deeds of Trust securing the Note; (6) Broker shall issue demands for payment and
otherwise enforce the terms of the Note in accordance with its established policies; (7) Broker shall file a request for Notices of Default on prior encumbrances unless Broker will receive such notices pursuant to California Civil Code Section
2924(b), and Broker will promptly notify Beneficiary of any such defaults or on the Note covered hereby; and (8) To the extent required by subsection 10238(k)(3) of the California Real Estate Law, Broker will arrange for the inspection of
Broker’s trust account by an independent certified public accountant and forward the report of such accountant to the California Commissioner of Real Estate if and to the extent, in the manner, required by law. 

  
 1 

         In the event of any default by the obligor or obligors under the
Note, Broker shall perform all acts and execute all documents necessary to exercise the power of sale contained in the Deed of Trust or Deeds of Trust securing same, including without limitation the following: Substitute trustees, select a
foreclosure agent, give demands, accept reinstatements, commence litigation to enforce the collection of the Note, obtain relief from any court-ordered stay of foreclosure proceedings, defend any litigation which may seek to restrain said
foreclosure, receive a trustee’s deed for the benefit of Beneficiaries, as tenants-in-common, and otherwise to do all things reasonably necessary or appropriate to enforce Beneficiary’s rights under the Note and Deed of Trust or Deeds of
Trust. Beneficiary hereby authorizes Broker to initiate, maintain and/or defend any such legal actions or proceedings in the name of Beneficiary, and to employ attorneys therefor at Beneficiary’s expense. Broker agrees to notify Beneficiary in
writing within fifteen (15) days after the occurrence of any of the following events: (1) the recording of a notice of default on behalf of Beneficiary; (2) the recording of a notice of trustee’s sale on behalf of Beneficiary together with a
copy of such notice; (3) the receipt of any payment constituting an amount equal to or greater than five monthly installment payments together with a request for partial or full reconveyance of the real property covered by the Deed of Trust,
with any necessary or appropriate transfer or delivery instructions; (4) receipt by Broker on behalf of Beneficiary of any request for reconveyance of the Deed of Trust together with a copy of such request; or (5) delinquency of any
installment or other obligation under the Note for more than 30 days. 
 Beneficiary agrees that Broker shall not be liable for any costs,
expenses or damages that may arise from or in connection with any acts or omissions of Broker or its agents or employees hereunder, so long as any such act or omission shall have been undertaken in good faith, notwithstanding any active or passive
negligence (whether sole or contributory) of Broker or its agents or employees, and Beneficiary shall hold Broker harmless therefrom. 
 In
consideration for the services to be rendered hereunder, Broker shall be entitled to receive an annual service fee equal to one quarter of one percent (0.25%), or such lesser amount as may be agreed to by Broker and Beneficiary from time to time, of
the outstanding principal balance of the Note, payable in equal monthly installments, or in other periodic payments if payments by obligor are made other than monthly. Broker is hereby authorized to deduct and retain all such service fees from the
collected monthly loan payments or be paid by beneficiary monthly.
 In the event of default in payment of any sum due under the Note,
Broker shall be authorized to advance such payments to Beneficiary, but shall have no obligation whatsoever to do so. In the event the source for any payment to Beneficiary is not the obligor under the Note, then Broker shall inform Beneficiary
of the actual source of such payment. Broker shall also be authorized to advance monthly payments or other sums to any senior lien holder, to pay insurance and taxes and to pay any other expenses reasonably incurred in connection with the
enforcement of the Note and the protection of the security of the Deed of Trust securing same, but shall have no obligation whatsoever to do so. In the event of such advance by Broker, Broker shall, not later than 10 days after making any such
payment, notify Beneficiary in writing of the date and amount of payment, the name of the payee, the source of funds and the reason for the payment. 

In the event of a default under the Note or Deed of Trust, or any foreclosure action, legal action, sale or any other event in which payments
are advanced to Beneficiary or any other person or expenses are incurred to protect the rights of Beneficiary under the Note and Deed of Trust, then Beneficiary agrees to pay (or reimburse Broker for) his pro rata share of such advances and expenses
upon demand therefor by Broker, according to his respective ownership interest in the Note. In the event Beneficiary fails to pay such sums upon demand, then the following provisions shall apply: (1) interest shall accrue on such sums at
the same rate as is provided in the Note, and (2) Broker and the other partial beneficiaries shall have the option, but not the obligation, to advance such sums for the benefit of Beneficiary. All sums thereafter collected
by Broker hereunder shall be applied in the following priority; (1) first, to the reinstatement of any senior liens or encumbrances; (2) Second, to reimburse Broker for any advances made by Broker hereunder; (3) Third, to reimburse all Beneficiaries
for any advances made to enforce the Note or protect the security of the Deed of Trust or Deeds of Trust securing same, in the same order as such advances were made; (4) Fourth, to the payment of interest under the Note; (5) Fifth, to the payment of
accrued but unpaid principal under the Note (such principal and interest to be allocated among all Beneficiaries; and (6) Thereafter, any remaining sums shall be allocated to all Beneficiaries in accordance with their respective undivided
interests in the Note. 
 In the event Beneficiary assigns his interest in the Note to any person, such assignment shall be evidenced by
execution and delivery to Broker of an assignment or endorsement of the Note and a recordable assignment of the Deed of Trust, and the assignee shall be required to execute a counterpart of this Agreement. 

Beneficiaries holding more than 50% of the unpaid dollar amount of the Note may determine and direct the actions by Broker on behalf of all
partial Beneficiaries in the event of default or with respect to other matters requiring the direction or approval of the Beneficiaries under this Agreement. 

Beneficiary is hereby notified of his, her or its right to receive a copy of the appraisal or Broker’s evaluation of the real property
covered by the Deed of Trust that was prepared in connection with the origination of the Note and Deed of Trust. 

  
 2 

 Upon any default under the Note or Deed of Trust Beneficiary shall have the right to (1) direct
the Trustee under the Deed of Trust to exercise the power of sale contained therein, or (2) to bring an action of judicial foreclosure, in which event all other partial Beneficiaries shall be joined therein. Beneficiary understands and acknowledges
that, if the power of sale under the Deed of Trust securing the Note is exercised, all Beneficiaries may acquire fee title to the security property as tenants-in-common. In such event, reasonable cooperation between all Beneficiaries will be
essential for the protection of this investment, and Beneficiary therefore agrees to execute in favor of Broker a special power of attorney authorizing Broker on behalf of Beneficiary to list and market, the security property and to negotiate the
sale of such property, execute sales contracts as agent for Beneficiary and consummate such sale in Beneficiary’s name, place and stead and on Beneficiary’s behalf, all on such terms and conditions as Broker may deem proper and reasonable;
provided, that any sale that will generate net sales proceeds to Beneficiary, after payment of all selling expenses, in an amount less than the outstanding principal balance of the Note as of the date of the foreclosure sale, shall be subject to
approval by more than 50% of the partial Beneficiaries under the Note and Deed of Trust. 
 Beneficiary hereby authorizes Broker, as
Beneficiary’s agent, to receive and act upon any Notice of Rescission delivered by any borrower under the Truth in Lending Simplification and Reform Act (the “Act”) with respect to the Note or any refinancing thereof. In the event
that Beneficiary is a creditor as defined in the Act, Beneficiary hereby agrees that Broker shall comply with all requirements of the Act and regulations issued thereunder , and to give all written disclosures required thereby. 

In the event at the time of maturity of this Note, the borrower is in the process of refinancing the loan with the assistance of Broker, the
Beneficiary agrees to extend the term of this loan for an additional period not to exceed (90) days or such other period of time to which the Broker and Beneficiary agree. All other terms and conditions of the original Promissory Note shall
continue in full force and effect during said extension period. 
 This Agreement may be terminated by the parties as follows: (1) by Broker,
at any time, upon 30 days written notice to Beneficiary; provided, however, if there are multiple Beneficiaries and the Note and Deed of Trust were sold by Broker pursuant to the exemption contained in Section 10238 of the California Real Estate
Law, then Broker shall not have the right to terminate this Agreement without the approval of Beneficiaries holding more than 50% of the outstanding ownership interests in the Note; or (2) by Beneficiary and/or other partial Beneficiaries holding
more than 50% of the outstanding ownership interests in the Note, upon 30 days written notice to Broker. Beneficiary understands that this Agreement may not be terminated by Beneficiary alone without the written consent of such majority interest of
all owners of the Note, and further that other partial Beneficiaries have the right to terminate this Agreement as to all Beneficiaries including the undersigned Beneficiary, without Beneficiary’s consent, if such other partial BENEFICIARIES
constitute more than 50% of the interests of all owners of the Note. In such event, Beneficiary agrees to accept the substitution of any servicing agent chosen by such majority interest so long as the compensation to be paid shall not exceed the
amounts set forth herein. 
 By signing below, Beneficiary hereby acknowledges receipt of a copy of this Agreement. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the respective dates set forth below. 

 

							
	Broker:	  	                                , a	 	
		  	                                
corporation	 	
				
		  	By:	  	  
	 	
		  		  	                                ,
                                	 	
				
		  	Date:	  	  
	 	
			
	Beneficiary:	  	                                 a	 	
		  	                                 limited
liability company	 	
				
		  	By:	  	  
	 	,
		  		  	a                                  corporation	 	
		  	Its:	  	  
	 	
				
		  		  	  
	 	
		  		  	                                ,
                                	 	
				
		  	Date:	  	  
	 	

  
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