SEC Contract Filing

Filing Date: 2024-05-14

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>cardiff_ex1002.htm
<DESCRIPTION>SECURITY AND PLEDGE AGREEMENT
<TEXT>
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<P STYLE="margin: 0"><B>Exhibit 10.2</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITY AND PLEDGE AGREEMENT</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This SECURITY AND PLEDGE AGREEMENT
(the &ldquo;<B>Agreement</B>&rdquo;) is made and entered into on May 13, 2024 by and between Cardiff Lexington Corporation, a Nevada corporation
(&ldquo;<B>CDIX</B>&rdquo;) and all of the subsidiaries of CDIX who are party to this Agreement, which subsidiaries constitute all of
the subsidiaries of CDIX (CDIX together with all of its subsidiaries, the &ldquo;<B>Debtor</B>&rdquo;) and <FONT STYLE="font-variant: small-caps"><B>Leonite
Capital LLC</B></FONT>, a Delaware limited liability company, and its permitted endorsees, transferees and assigns (collectively, the
&ldquo;<B>Secured Party</B>&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: center"><B>RECITALS</B></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; text-indent: 0.5in"><FONT STYLE="display: inline-block; width: 0.5in; float: left; white-space:nowrap">A.</FONT>Concurrently
herewith, the Debtor and the Secured Party have entered into a Securities Exchange Agreement (the &ldquo;<B>Securities Exchange Agreement</B>&rdquo;)
and certain other agreements, pursuant to which the CDIX issued to the Secured Party shares of CDIX Series Y Senior Convertible Preferred
Stock (the &ldquo;<B>Preferred Shares</B>&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; text-indent: 0.5in"><FONT STYLE="display: inline-block; width: 0.5in; float: left; white-space:nowrap">B.</FONT>The
Debtor now enters into this Agreement with the Secured Party as security for Debtor&rsquo;s Obligations (as defined below).</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: center"><B>AGREEMENT</B></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; text-indent: 0.5in">NOW, THEREFORE, in consideration
of their respective promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:</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 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="display: inline-block; width: 0.5in; float: left; white-space:nowrap">1.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT><B><U>Definitions</U></B>. Terms used but not otherwise defined in this Agreement that are defined in Division 9 of the Uniform
Commercial Code as adopted in the state of Nevada (the &ldquo;<B>UCC</B>&rdquo;) (such as &ldquo;<B>account</B>,&rdquo; &ldquo;<B>adverse
claim</B>,&rdquo; &ldquo;<B>chattel paper</B>,&rdquo; &ldquo;<B>deposit account</B>,&rdquo; &ldquo;<B>document</B>,&rdquo; &ldquo;<B>equipment</B>,&rdquo;
&ldquo;<B>fixtures</B>,&rdquo; &ldquo;<B>general intangibles</B>,&rdquo; &ldquo;<B>goods</B>,&rdquo; &ldquo;<B>instruments</B>,&rdquo;
&ldquo;<B>inventory</B>,&rdquo; &ldquo;<B>investment property</B>,&rdquo; &ldquo;<B>proceeds</B>,&rdquo; and &ldquo;<B>supporting obligations</B>&rdquo;)
shall have the respective meanings given such terms in Division 9 of the UCC. Capitalized terms used in this Agreement and not defined
elsewhere herein or in the Securities Exchange Agreement shall have the meanings set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>&ldquo;<B>Collateral</B>&rdquo;
</I>means all of the collateral identified on Exhibit A hereto, as well as all of Debtor&rsquo;s tangible and intangible personal property
assets, including, but not limited to, all of the following: (i) all accounts, insurance receivables, cash and currency, chattel paper,
deposit accounts, documents, equipment, fixtures, general intangibles, instruments, intellectual property, inventory, investment property,
Negotiable Collateral, loans receivable, motor vehicles, Pledged Equity, goods, supporting obligations, Debtor&rsquo;s Books, and such
other assets of Debtor as may hereafter arise or Debtor may hereafter acquire or in which the Secured Party may from time-to-time obtain
a security interest, and (ii) the proceeds of any of the foregoing, including, but not limited to, proceeds of insurance covering the
foregoing or any portion thereof; <U>provided</U>, <U>however</U>, that notwithstanding anything to the contrary contained in this Agreement,
the Collateral does not include any &ldquo;hazardous waste&rdquo; as that term is defined under 42 U.S.C. section 6903(5), as such section
may be from time to time amended, or under any regulations thereunder.</P>

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

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