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

EX-10.1 2 f8k100117ex10-1_zoned.htm 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]

 

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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

 

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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

 

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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.

 

 

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