On October 20, 2020, MariMed Inc. (the “Company”) entered into a note extension agreement (the “Extension Agreement”), effective as of September 30, 2020, with Best Buds Funding, LLC (“Best Buds”) pursuant to which the Company (i) repaid $1,000,000 of the principal amount of the outstanding $6,845,000 secured promissory note issued to Best Buds in April 2020 (“April Note”); (ii) issued an amended and restated senior secured promissory note in the principal amount of $5,845,000 to replace the April Note, bearing interest at twelve percent (12%) per annum and having a maturity date of September 30, 2022 (“Note #1”); and (iii) issued an amended and restated senior secured promissory note in the principal amount of $3,000,000 bearing interest at twelve percent (12%) per annum and having a maturity date of September 30, 2022 (together with Note #1, the “Notes”) to replace a similar note with the same principal amount issued to Best Buds in April 2020.

In consideration of the Extension Agreement, among other things, the Company (i) issued four-year warrants to Best Buds designees to purchase up to 5,000,000 shares of the Company’s common stock at an exercise price of $0.25 per share (the “Warrant”); (ii) paid Best Buds a fee of $100,000; and (iii) extended the security interest in certain Company properties and the pledge of certain equity interests to secure the Notes.

The foregoing description of the agreement and related transactions does not purport to be complete and is qualified in its entirety by reference to the full text of the Extension Agreement, the Notes and the Warrant, filed as Exhibits 10.13, 4.4, 4.5 and 4.6, respectively, to this Current Report on Form 8-K and incorporated herein by reference.