Third Amendment to Commercial Lease by and between Zoned Properties, Inc., C3C3 Group, LLC and Alan Abrams, and Zoned Arizona Properties, LLC, dated as of October 1, 2017
Exhibit 10.1
THIRD AMENDMENT TO COMMERCIAL LEASE AGREEMENT
This Third Amendment to the Commercial Lease Agreement (the “THIRD AMENDMENT”) is made this 1st day of October, 2017, (the “EFFECTIVE” DATE) by and between Zoned Properties, Inc. (the “Landlord”), C3C3 Group, LLC (the “Tenant”). and Alan Abrams, Individually as Personal Guarantor (the “Guarantor”).
WITNESSETH:
WHEREAS, Landlord, Tenant, and Guarantor heretofore entered into a Commercial Lease Agreement (the “LEASE”) executed and effective as of August 15, 2015 for the lease of the facilities commonly known as 410 S. Madison Dr. Suite #1, Tempe Arizona 85281 (the “Tempe Property”); and
WHEREAS, Landlord, Tenant, and Guarantor heretofore entered into a FIRST LEASE AMENDMENT and SECOND LEASE AMENDMENT (the “Lease Amendments”) incorporated by reference, the most recent of which was dated September 01, 2016;
WHEREAS, Landlord has transferred and recorded property title of the Tempe Property into its wholly owned subsidiary, Zoned Arizona Properties, LLC (the “Subsidiary”), and in doing so has assigned its rights and interests in the Lease to its Subsidiary; and
WHEREAS, The Landlord has invested capital into the property for expansion of the facilities for use by the Tenant, including but not limited to an expansion of utilities and an expansion of operational space; and
WHEREAS, The parties hereto desire to amend the Premises and the Base Rent of the monthly rental payment under the Lease to reflect the expanded facilities; and
WHEREAS, all defined terms used in the Lease shall have the same meaning herein as therein.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for good and valuable consideration, the sufficiency and receipt of which is acknowledged, the Parties agree to the following amendment to the language of the Lease:
1. | 2.01 Premises: The Premises shall be amended as per the Premises Description attached as an updated “Amended Exhibit C” to the original Lease Agreement. |
2. | 5.01 Base Rent: The Base Rent shall be amended as per the Rental Schedule attached as an updated “Amended Exhibit B” to the original Lease Agreement. |
[Signature Page to Follow]
1 |
Your signature below will indicate that you agree to the terms and conditions as set forth herein dated October 01, 2017:
Zoned Properties, Inc. | Zoned Arizona Properties, LLC. | |||
By: | /s/ Bryan McLaren | By: | /s/ Bryan McLaren | |
Name: | Bryan McLaren | Name: | Bryan McLaren | |
Title: | CEO | Title: | Authorized Agent | |
Alan Abrams, Individually. | C3C3 Group, LLC. | |||
By: | /s/ Alan Abrams | By: | /s/ Christopher Carra | |
Name: | Alan Abrams | Name: | Christopher Carra | |
Title: | Personal Guarantor | Title: | President |
2 |
AMENDED EXHIBIT B: BASE RENT SCHEDULE
Year | Start Date | End Date | Monthly Base Rent | Annual Base Rent | Base Rent Rate | Rentable Area | ||||||||||||||
1 | 08/01/2015 | 07/31/2016 | $ | 13,500.00 | $ | 162,000.00 | $ | 32.40 | 5,000 | |||||||||||
2 | 08/01/2016 | 01/31/2017 | $ | 13,500.00 | $ | 162,000.00 | $ | 10.80 | 15,000 | |||||||||||
2 | 02/01/2017 | 10/30/2017 | $ | 25,500.00 | $ | 306,000.00 | $ | 20.40 | 15,000 | |||||||||||
3 | 11/01/2017 | 03/31/2017 | $ | 30,500.00 | $ | 366,000.00 | $ | 12.20 | 30,000 | |||||||||||
3 | 04/01/2018 | 07/31/2018 | $ | 35,500.00 | $ | 426,000.00 | $ | 14.20 | 30,000 | |||||||||||
4 | 08/01/2018 | 07/31/2019 | $ | 45,500.00 | $ | 546,000.00 | $ | 18.20 | 30,000 | |||||||||||
5 | 08/01/2019 | 07/31/2020 | $ | 55,500.00 | $ | 666,000.00 | $ | 22.20 | 30,000 | |||||||||||
6 | 08/01/2020 | 07/31/2021 | $ | 58,275.00 | $ | 699,300.00 | $ | 23.31 | 30,000 | |||||||||||
7 | 08/01/2021 | 07/31/2022 | $ | 61,188.75 | $ | 734,265.00 | $ | 24.48 | 30,000 | |||||||||||
8 | 08/01/2022 | 07/31/2023 | $ | 64,248.19 | $ | 770,978.25 | $ | 25.70 | 30,000 | |||||||||||
9 | 08/01/2023 | 07/31/2024 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
10 | 08/01/2024 | 07/31/2025 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
11 | 08/01/2025 | 07/31/2026 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
12 | 08/01/2026 | 07/31/2027 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
13 | 08/01/2027 | 07/31/2028 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
14 | 08/01/2028 | 07/31/2029 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
15 | 08/01/2029 | 07/31/2030 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
16 | 08/01/2030 | 07/31/2031 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
17 | 08/01/2031 | 07/31/2032 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
18 | 08/01/2032 | 07/31/2033 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
19 | 08/01/2033 | 07/31/2034 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 | |||||||||||
20 | 08/01/2034 | 07/31/2035 | $ | 67,460.60 | $ | 809,527.16 | $ | 26.98 | 30,000 |
* Annual Rental Rate escalates at 5% per annum through year 10 |
3 |
AMENDED EXHIBIT C: PROPERTY SITE AND LEGAL DESCRIPTION
Parcel ID: | 124-39-038 & 124-39-039A |
Property Address: | 410 S. Madison Dr. Suites #1, #2, and #3 Tempe, AZ 85281 |
Building and Premises: | 30,000 total square feet in stages of development at the Tempe Medical Marijuana Business Park; includes 20,000 square feet of developed cultivation and processing space already completed, and 10,000 square feet of un-developed warehouse to be used as storage space until future developments can be completed, located in eastern half of the building. The Authority to Operate (ATO) for the Licensed Medical Marijuana Facilities held by CJK, Inc. |
4