FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is entered into as of this 18th day of June, 2020 (“Amendment Effective Date”), by and between IIP-IL 3 LLC, a Delaware limited liability company (“Landlord”), and PHARMACANN INC., a Delaware corporation (f/k/a PHARMACANN LLC, an Illinois limited liability company) (“Tenant”).
A. WHEREAS, Landlord and Tenant are parties to that certain Lease Agreement dated as of October 30, 2019 (the “Existing Lease”), whereby Tenant leases the premises from Landlord located at 1200 East Mazon, Dwight, Illinois 60420;
B. WHEREAS, concurrently with the execution of this Amendment, Tenant and Landlord shall execute an amendment to the Development Agreement; and
C. WHEREAS, Landlord and Tenant desire to modify and amend the Existing Lease only in the respects and on the conditions hereinafter stated.
NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:
1. Definitions. For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Existing Lease unless otherwise defined herein. The Existing Lease, as amended by this Amendment, is referred to collectively herein as the “Lease.” From and after the date hereof, the term “Lease,” as used in the Existing Lease, shall mean the Existing Lease, as amended by this Amendment.
2. Base Rent. Effective as of the Amendment Effective Date, the monthly Base Rent shall equal Three Hundred Thirty-Eight Thousand Three Hundred Thirty-Three and 33/100 Dollars ($338,333.33) and shall be subject to the Base Rent adjustments set forth in the Existing Lease, including the Base Rent adjustment on each anniversary of the Commencement Date pursuant to Section 6.5 of the Existing Lease. Accordingly, Section 2.1 of the Existing Lease is hereby amended and restated in its entirety as follows:
"2.1. The monthly Base Rent shall be equal to Three Hundred Thirty-Eight Thousand Three Hundred Thirty-Three and 33/100 Dollars ($338,333.33), subject to subsequent adjustment under this Lease."
3. Security Deposit. The Security Deposit under the Lease shall be increased from Six Hundred Four Thousand One Hundred Sixty-Six and 66/100 ($604,166.66) to Six Hundred Seventy-Six Thousand Six Hundred Sixty-Six and 67/100 Dollars ($676,666.67). Accordingly, on or before the Amendment Effective Date, Tenant shall deposit with Landlord the difference in the amount of Seventy-Two Thousand Five Hundred and 01/100 Dollars ($72,500.01), which shall be held as part of the Security Deposit pursuant to Section 6.4 of the Existing Lease. Furthermore, Section 2.2 of the Existing Lease is hereby amended and restated in its entirety as follows:
"2.2. "Security Deposit": Six Hundred Seventy-Six Thousand Six Hundred Sixty-Six and 67/100 Dollars ($676,666.67)."
4. Broker. Each of Tenant and Landlord represents and warrants that it has not dealt with any broker or agent in the negotiation for or the obtaining of this Amendment and agrees to reimburse, indemnify, save, defend (at the other party’s option and with counsel reasonably acceptable to other party, at the indemnifying party’s sole cost and expense) and hold harmless the indemnifying party for, from and against any and all cost or liability for