SEC Contract Filing

Filing Date: 2015-08-11

Document Content:
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<TYPE>EX-10.4
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<FILENAME>ex10_4.htm
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<P STYLE="margin: 0; text-align: right">Exhibit 10.4</P>

<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE &quot;ACT&quot;), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE
SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND
THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. LENDERS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE
AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN
COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&#9;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">&#9;FORM OF COLLATERALIZED
SECURED PROMISSORY NOTE&nbsp;</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">$_____________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 40pt; text-align: right">____________, ___ &#9;August 5, 2015</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 40pt; text-align: right">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 15pt; text-align: right">1.</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><U>Principal and Interest</U></TD>
</TR></TABLE>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">FOR
VALUE RECEIVED, __________________ (the &quot;Company&quot;) hereby absolutely and unconditionally promises to pay to Vape Holdings,
Inc.</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">(the &ldquo;Lender&quot;), or order, the principal amount
of _____________ Dollars ($____________) no later than April 5, 2016, unless the Lender does not meet the &ldquo;current information
requirements&rdquo; required under Rule 144 of the Securities Act of 1933, as amended, in which case the Company may declare the
offsetting note issued by the Lender on the same date herewith to be in Default (as defined in that note) and cross cancel its
payment obligations under this Note as well as the Lenders payment obligations under the offsetting note. This Full Recourse Note
shall bear simple interest at the rate of 8%.</FONT></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 15pt; text-align: right">2.</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><U>Repayments and Prepayments; Security</U>.</TD>
</TR></TABLE>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">a.&#9;All
principal under this Note shall be due and payable no later than April 5, 2016, unless<FONT STYLE="font-family: Times New Roman, Times, Serif">
the Lender does not meet the &ldquo;current information requirements&rdquo; required under Rule 144 of the Securities Act of 1933,
as amended, in which case the Company may declare the offsetting note issued by the Lender on the same date herewith to be in
Default (as defined in that note) and cross cancel its payment obligations under this Note as well as the Lenders payment obligations
under the offsetting note.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">b.&#9;The
Company may pay this Note at any time. This note may not be assigned by the Lender, except by operation of law.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">c.&#9;This
Note shall initially be secured by the pledge of the $_________ 8% convertible promissory note issued to the Company by the Lender
on even date herewith (the &ldquo;Lender Note&rdquo;). <B>The Company may exchange this collateral for other collateral with an
appraised value of at least $_______, by providing 3 days prior written notice to the Lender</B>. <B>If the Lender does not object
to the substitution of collateral in that 3 day period, such substitution of collateral shall be deemed to have been accepted
by the Lender</B>. <B>Notwithstanding the foregoing, an exchange of collateral for $__________ in cash shall not require the approval
of the Lender.</B> <B>Any collateral exchange shall not constitute a