SEC Contract Filing

Filing Date: 2015-10-20

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>f8k100515ex10ii_canadian.htm
<DESCRIPTION>PROMISSORY NOTE ISSUED BY CANADIAN CANNABIS CORP. IN FAVOR OF AVONLEA VENTURES INC., DATED OCTOBER 16, 2015
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CANADIAN CANNABIS CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Secured
Promissory Note</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
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 <TD STYLE="width: 50%">CAD$1,000,000</TD>
 <TD STYLE="width: 50%; text-align: right">October 16, 2015</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Principal</U>. CANADIAN CANNABIS CORP.,
a Delaware corporation (the &ldquo;<U>Corporation</U>&rdquo;), for value received, hereby promises to pay to the order of Avonlea
Ventures Inc., an Ontario corporation<FONT STYLE="color: windowtext"> (the &ldquo;<U>Holder</U>&rdquo;) in lawful money of Canada
at the address for</FONT> notices to Holder set forth below, in lawful currency of Canada (&ldquo;<U>CAD$</U>&rdquo;) pursuant
to the terms of this promissory note (this &ldquo;<U>Note</U>&rdquo;), the principal amount of ONE MILLION CANADIAN DOLLARS (CAD$1,000,000),
together with all accrued and unpaid interest thereon, as set forth below.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interest and Maturity</U>. The Corporation
promises to pay simple interest on the outstanding principal amount hereof from the date hereof until such principal amount is
paid in full at the rate of eight percent (8%) per annum, both before and after maturity and default and judgment. Interest from
the date hereof shall accrue and be computed daily on the basis of a 365-day year. Unless prepaid earlier as set forth below, all
outstanding principal and accrued and unpaid interest on this Note shall be due and payable on May 31, 2016 (the &ldquo;<U>Maturity
Date</U>&rdquo;). All amounts payable hereunder shall be paid in immediately available funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Security</U>. All of the obligations
and indebtedness of the Corporation pursuant to this Note are guaranteed by a guarantee granted by 2264793 Ontario Inc. (the &ldquo;<U>Guarantor</U>&rdquo;)
in favour of the Holder (the &ldquo;<U>Guarantee</U>&rdquo;) and shall be secured by a mortgage (the &ldquo;<U>Mortgage</U>&rdquo;;
and collectively with the Guarantee, the &ldquo;<U>Security</U>&rdquo;) granted by the Guarantor over the real property of the
Guarantor (and related personal property) located at 100 Rutherford Road South, Brampton, ON L6W 3J5, Unit One (the &ldquo;<U>Mortgaged
Property</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prepayment</U>.
This Note may be prepaid in whole or in part at any time without penalty. Any partial prepayment shall be applied first to interest
and the remaining balance of such payment, if any, to principal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interest Act (Canada)</U>. For the
purposes of the <I>Interest Act</I> (Canada), in any case in which an interest or fee rate is stated in this Note to be calculated
on the basis of a number of days that is other than the number in a calendar year, the yearly rate to which such interest or fee
rate is equivalent is equal to such interest or fee rate multiplied by the actual number of days in the year in which the relevant
interest or fee payment accrues and divided by the number of days used as the basis for such calculation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Attorneys&rsquo; Fees</U>. The Corporation
agrees to pay, in addition to the principal and interest payable hereunder, all reasonable attorneys&rsquo; fees and costs incurred
by the Holder (on a full indemnity basis) in connection with the preparation, execution, administration and enforcement of this
Note and the Security and all documents and agreements granted or entered into by the Holder and the Lender in connection therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-a