# EDGAR Filing Document

**Accession Number:** 0001279620
**File Stem:** 0001213900-26-005387
**Filing Date:** 2026-1
**Character Count:** 337606
**Document Hash:** 17f974dc9433a5f9e3482aa2af813e55
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-005387.hdr.sgml**: 20260120

**ACCESSION NUMBER**: 0001213900-26-005387

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20260115

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260120

**DATE AS OF CHANGE**: 20260120

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Zoned Properties, Inc.
- **CENTRAL INDEX KEY:** 0001279620
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 465198242
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51640
- **FILM NUMBER:** 26541178

**BUSINESS ADDRESS:**
- **STREET 1:** 8360 E. RAINTREE DRIVE, SUITE #230
- **CITY:** SCOTTSDALE
- **STATE:** AZ
- **ZIP:** 85260
- **BUSINESS PHONE:** 877-360-8839

**MAIL ADDRESS:**
- **STREET 1:** 8360 E. RAINTREE DRIVE, SUITE #230
- **CITY:** SCOTTSDALE
- **STATE:** AZ
- **ZIP:** 85260

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Vanguard Minerals Corp
- **DATE OF NAME CHANGE:** 20120820

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Vanguard Minerals CORP
- **DATE OF NAME CHANGE:** 20071113

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Knewtrino, Inc.
- **DATE OF NAME CHANGE:** 20060721

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT PURSUANT TO**

**SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): **<u>January 15, 2026</u>**

---

| |
|:---|
| **Zoned Properties, Inc.** |
| (Exact Name of Registrant as Specified in its Charter) |
| **Nevada** |
| (State or Other Jurisdiction of Incorporation) |

---

---

| | |
|:---|:---|
| **000-51640** | **46-5198242** |
| (Commission File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **8360 E. Raintree Drive, #230<br> Scottsdale, AZ** | **85260** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

(Registrant's telephone number, including area code): **(877) 360-8839**

**<u>N/A</u>**

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.)

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| N/A | N/A | N/A |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01. Entry into a Material Definitive Agreement.**

*Management Buyout Asset Purchase Agreement*

On January 15, 2026 (the "Effective Date"), Zoned Properties, Inc. (the "Company") entered into an Asset Purchase Agreement (the "MBO APA") by and among the Company, Zoned Arizona Properties, LLC ("Zoned Arizona"), ZP RE AZ Dysart, LLC ("Dysart"), ZP RE Holdings, LLC ("RE Holdings" and collectively with Zoned Arizona and Dysart, the "Real Property Sellers" and, together with the Company, the "Seller Parties" and each, a "Seller Party"), and BPB Partners, LLC (the "Buyer"). Each of the Real Property Sellers is a wholly owned subsidiary of the Company. The Buyer is owned by Bryan McLaren, the Company's Chairman of the Board, Chief Executive Officer and Chief Financial Officer; Berekk Blackwell, the Company's President and Chief Operating Officer; and Patrick Moroney.

The Company formed a Special Transactions Committee of the Board of Directors (the "Committee"), consisting of its three independent directors, that has reviewed, negotiated and overseen the MBO APA and the other transaction documents and the transactions contemplated by the MBO APA (the "MBO"). The Committee approved the MBO APA, the other transaction documents and the MBO, prior to its execution. The MBO APA and the other transaction documents and the MBO were also approved by the full Board of Directors prior to its execution.

Pursuant to the terms of the MBO APA, the Seller Parties agreed to sell to the Buyer, and the Buyer agreed to purchase from the Seller Parties, subject to the terms of the MBO APA, all of the Seller Parties' rights, title and interest in and to the Company's business, as described in the Company's filings with the Securities and Exchange Commission (the "Business"), and the assets, properties and rights of the Seller Parties, subject to modification as set forth in the MBO APA, and other than the Excluded Assets (as defined in the MBO APA) (the "Assets"). The Assets include, among other things, (i) the real property located at 410 S. Madison Drive, Tempe, AZ; (ii) the real property located at 13150 W. Bell Road, Surprise, AZ; (iii) the real property located at 3455 S. Ashland Avenue, Chicago, IL; (iv) the Company's membership interests in RE Holdings, Zoned Properties Brokerage, LLC, ZP Brokerage FL, LLC, ZP Data Platform 2, LLC, ZP Ohio B, LLC, and Zoneomics Green, LLC; (v) all rights under all contracts to which any Seller Party is a party or is bound as of the closing date that is related to the Business; (vi) all intellectual property of the Seller Parties; (vii) all prepaid expenses, security deposits, and certain other operational assets; and (vii) potentially certain additional assets that may be acquired by the Seller Parties prior to the closing of the MBO, as discussed below.

Subject to adjustment as set forth in the MBO APA, the purchase price for the Assets will be $7,000,000, less the Assumed Indebtedness (as defined in the MBO APA) (the "Purchase Price").

The parties to the MBO APA acknowledged and agreed that between the Effective Date and the date of the closing of the MBO (the "Closing"), the Company or one or more affiliates of the Company may acquire or invest in additional real estate assets ("Additional Assets"). Upon acquisition of or investment in the Additional Assets, (i) such Additional Assets shall be deemed included in the "Assets" for purposes of the MBO APA, (ii) the Purchase Price will be increased by the amount of the cash purchase price paid therefor by the Company or its affiliate, (iii) the Purchase Price will be decreased by the amount of any cash and/or debt instruments issued by the Company or its affiliate to the seller of such Additional Assets (the "Additional Asset Acquisition Indebtedness"), and (iv) such Additional Asset Acquisition Indebtedness will be deemed included in the assumed liabilities pursuant to the MBO APA.

The parties to the MBO APA also acknowledged and agreed that between the Effective Date and the Closing, the Company may sell the real estate assets located at 23622-23634 Woodward Avenue, Pleasant Ridge, MI (the "Pleasant Ridge Assets") to a third party for a purchase price to be determined. The Pleasant Ridge Assets are not currently included in the "Assets" for purposes of the MBO APA. In the event that the sale of the Pleasant Ridge Assets is not consummated prior to the Closing, then the Pleasant Ridge Assets will be deemed included in the "Assets" and the Purchase Price will be increased by the amount of the appraisal value of the Pleasant Ridge Assets, as determined as set forth in the MBO APA.

The parties to the MBO APA further acknowledged and agreed that between the Effective Date and the Closing, the Company may sell the real estate assets located at 2144 N. Road 1 East, Chino Valley, AZ; 2095 Northern Avenue, Kingman, AZ; and 1732 W. Commerce Point Place, Green Valley, AZ (collectively, the "CKG Properties") to a third party for a total purchase price of $9,000,000 (the "CKG Purchase Price"), of which $4,000,000 is expected to be paid in cash and $5,000,000 is expected to be paid via a promissory note payable to the Company (the "CKG Note"). In the event that the sale of the CKG Properties is not consummated prior to the Closing, then the CKG Properties will be deemed included in the "Assets" and the Purchase Price will be increased by the amount of the CKG Purchase Price.

If the sale of the CKG Properties is consummated prior to the Closing, then the CKG Properties will not be included in the "Assets," but the CKG Note will be included in the "Assets" for purposes of the MBO APA, and the Purchase Price will be increased by the principal amount of the CKG Note.

Pursuant to the terms of the MBO APA, the MBO APA may be terminated at any time prior to the Closing by:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The mutual agreement of the parties, each in their sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company or by Buyer if there shall be in effect a final non-appealable order, judgment, injunction
or decree entered by or with a governmental entity restraining, enjoining or otherwise prohibiting the consummation of the MBO;

&nbsp;&nbsp;&nbsp;&nbsp;(c) The Buyer if there shall have been a breach in any material respect of any representation, warranty, covenant
or agreement on the part of any Seller Party, which breach has not been cured within 10 days after receipt of notice of such breach by
the Company;

&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company if there shall have been a breach in any material respect of any representation, warranty,
covenant or agreement on the part of Buyer, which breach has not been cured within 10 days after receipt of notice of such breach by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;(e) Any party in the event that the Closing has not occurred by September 30, 2026, which date may be extended
by 90 days as set forth in the MBO APA;

&nbsp;&nbsp;&nbsp;&nbsp;(f) Written notice by Buyer to the Company, if there shall have been a "Seller Material Adverse Effect"
(as defined in the MBO APA) following the Effective Date which is uncured for at least 20 business days after written notice by the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;(g) The Buyer, during the 180-day period following the Effective Date, if the Buyer determines that its due
diligence review is not satisfactory for any reason in its sole discretion; or

&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company, in the event it receives a proposal on terms more favorable to the Company's stockholders
than those set forth in the MBO APA, subject to the terms of the MBO APA, prior to the date that is the later of (i) the date on which
the Company receives stockholder approval as set forth in the MBO APA, and July 14, 2026 (the date on which the Buyer's due diligence
period expires).

The Closing is subject to certain closing conditions, including, but not limited to, (i) the Company and the Committee having received an opinion as to the fairness of the transactions, from a financial point of view, to the shareholders of the Company, and such opinion remaining valid and in full force and effect as of the closing; (ii) MBO APA and the transactions set forth therein being approved by both (1) the shareholders of the Company holding a majority of the voting power of the Company, as required by Nevada law, and (2) shareholders of the Company holding a majority of the voting power of the Company, but excluding for such purposes any such shareholder, and shares or stock of the Company, held by any persons who own, control or have any interest in the Buyer (i.e., a 'majority of the minority' uninterested shareholders); (iii) receipt of any required regulatory approvals; (iv) raising by the Buyer of the capital required, in its sole discretion, to fund the Purchase Price; and (v) other customary closing conditions. The Agreement contains customary representations, warranties and covenants.

If the MBO APA is approved by the Company's stockholders, as required, the Company expects that the Closing of the MBO will take place by the end of 2026.

The foregoing description of the MBO APA is not a complete description of all of the parties' rights and obligations thereunder, and is qualified in its entirety by reference to the MBO APA, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

*McLaren Material Event and Amendment Agreement*

In connection with the planned MBO, on the Effective Date, the Company and Mr. McLaren entered into a Material Event and Amendment Agreement (the "McLaren Material Event Agreement"). Pursuant to the terms of the McLaren Material Event Agreement, following the occurrence of the MBO or a change of control or other similar transaction (as such term is defined in the McLaren Material Event Agreement and together with the MBO, a "Material Event"):

&nbsp;&nbsp;&nbsp;&nbsp;(i) The Employment Agreement, dated as of May 23, 2018, by and between the Company and Mr. McLaren (the "McLaren Employment Agreement") and the Golden Parachute Agreement, dated as of May 23, 2018, by and between the Company and Mr. McLaren (the "Golden Parachute Agreement") will be amended to replace the concept of a change in control with the definition of "Material Event" as set forth in the McLaren Material Event Agreement in each instance; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Golden Parachute Agreement will be amended to provide that the Company will (a) issue to Mr. McLaren
250,000 shares of Company common stock, subject to adjustment as set forth therein, (b) pay Mr. McLaren an amount equal to one year's
base salary, and (c) pay Mr. McLaren an amount equal to 35% of the fair market value of the shares referenced in clause (a) as of the
date of the Material Event.

Pursuant to the terms of the McLaren Material Event Agreement, if Mr. McLaren's engagement by the Company ceases for any reason following the occurrence of a Material Event, and as a condition of Mr. McLaren's receipt of any payments pursuant to the Golden Parachute Payment, as amended therein and if applicable pursuant to the terms of the Golden Parachute Payment, as amended therein, and effective as of the date of such cessation of engagement, Mr. McLaren and the Company agreed to enter into a severance agreement, in the form attached as Exhibit 1 to the McLaren Material Event Agreement, and Mr. Mclaren will receive the payments as described in (ii) above.

In the event that either (i) a Material Event has not occurred on or before the second annual anniversary of the Effective Date or (ii) Mr. McLaren's engagement by the Company is terminated for Cause (as defined in the McLaren Employment Agreement), then the McLaren Material Event Agreement will automatically terminate.

The foregoing description of the McLaren Material Event Agreement is not a complete description of all of the parties' rights and obligations thereunder, and is qualified in its entirety by reference to the McLaren Material Event Agreement, a copy of which is filed as Exhibit 10.2 to this Current Report on Form 8-K and incorporated herein by reference.

*Blackwell Material Event Agreement*

In connection with the planned MBO, on the Effective Date, the Company and Mr. Blackwell entered into a Material Event Agreement (the "Blackwell Material Event Agreement"). Pursuant to the terms of the Blackwell Material Event Agreement, in the event of a Material Event, and effective as of the date of the Material Event, Mr. Blackwell and the Company agreed to enter into a severance agreement, in the form attached as Exhibit 1 to the Blackwell Material Event Agreement. Such severance agreement will provide for the payment and issuance to Mr. Blackwell of the following subject to and following the consummation of the Material Event:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The issuance to Mr. Blackwell of 150,000 shares of Company common stock, subject to adjustment as set
forth therein; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The payment to Mr. Blackwell of an amount equal to (a) one year's base salary, and (b) 35% of the
fair market value of the shares referenced in clause (i) above as of the date of the Material Event.

In the event that either (i) a Material Event has not occurred on or before the second annual anniversary of the Effective Date or (ii) Mr. Blackwell's engagement by the Company is terminated for Cause (as defined in the Blackwell Material Event Agreement), then the Blackwell Material Event Agreement will automatically terminate.

The foregoing description of the Blackwell Material Event Agreement is not a complete description of all of the parties' rights and obligations thereunder, and is qualified in its entirety by reference to the Blackwell Material Event Agreement, a copy of which is filed as Exhibit 10.3 to this Current Report on Form 8-K and incorporated herein by reference.

*Moroney Material Event Agreement*

In connection with the planned MBO, on the Effective Date, the Company and Mr. Moroney entered into a Material Event Agreement (the "Moroney Material Event Agreement"). Pursuant to the terms of the Moroney Material Event Agreement, in the event of a Material Event, and effective as of the date of the Material Event, Mr. Moroney and the Company agreed to enter into a severance agreement, in the form attached as Exhibit 1 to the Moroney Material Event Agreement. Such severance agreement will provide for the payment and issuance to Mr. Moroney of the following subject to and following the consummation of the Material Event:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The issuance to Mr. Moroney of 150,000 shares of Company common stock, subject to adjustment as set forth
therein; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The payment to Mr. Moroney of an amount equal to (a) one year's base salary, and (b) 35% of the
fair market value of the shares referenced in clause (i) above as of the date of the Material Event.

In the event that either (i) a Material Event has not occurred on or before the second annual anniversary of the Effective Date or (ii) Mr. Moroney's engagement by the Company is terminated for Cause (as defined in the Moroney Material Event Agreement), then the Moroney Material Event Agreement will automatically terminate.

The foregoing description of the Moroney Material Event Agreement is not a complete description of all of the parties' rights and obligations thereunder, and is qualified in its entirety by reference to the Moroney Material Event Agreement, a copy of which is filed as Exhibit 10.4 to this Current Report on Form 8-K and incorporated herein by reference.

**Item 7.01. Regulation FD Disclosure.**

On January 20, 2026, the Company issued a press release announcing, among other things, entry into the MBO APA and the planned MBO. As noted in the press release, assuming that the MBO APA is approved by the Company's stockholders, as required, and the Company can successfully sell and liquidate 100% of the Company's assets and operations, the Company expects (i) to pay off any remaining debt, settle any remaining accounts and agreements, liquidate the Company's outstanding preferred shares, and then distribute the net available balance of cash to stockholders as a return of capital through a special dividend, and (ii) to subsequently complete a reverse merger or other transaction involving the public company.

The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference; *provided, however,* that the information contained in any website or link is not a part of this Current Report on Form 8-K.

The information included in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth under this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K.

**Item 9.01 Financial Statement and Exhibits.**

(d) Exhibits

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 10.1 | [Asset Purchase Agreement, dated as of January 15, 2026, by and among Zoned Properties, Inc., Zoned Arizona Properties, LLC, ZP RE AZ Dysart, LLC, ZP RE Holdings, LLC, and BPB Partners, LLC.](ea027306801ex10-1_zoned.htm) |
| 10.2 | [Material Event and Amendment Agreement, dated as of January 15, 2026, by and between Zoned Properties, Inc. and Bryan McLaren.](ea027306801ex10-2_zoned.htm) |
| 10.3 | [Material Event Agreement, dated as of January 15, 2026, by and between Zoned Properties, Inc. and Berekk Blackwell.](ea027306801ex10-3_zoned.htm) |
| 10.4 | [Material Event Agreement, dated as of January 15, 2026, by and between Zoned Properties, Inc. and Patrick Moroney.](ea027306801ex10-4_zoned.htm) |
| 99.1 | [Press release of the registrant dated January 20, 2026.](ea027306801ex99-1_zoned.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
|  | **ZONED PROPERTIES, INC.** |
| Dated: January 20, 2026 | */s/ Bryan McLaren* |
|  | Bryan McLaren |
|  | Chief Executive Officer & Chief Financial Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**Asset Purchase Agreement**

**By and Among**

**Zoned Properties, Inc., Zoned Arizona Properties, LLC, ZP RE AZ Dysart, LLC, ZP RE Holdings, LLC** 

**and**

**BPB Partners, LLC** 

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| | | **<u>Page</u>** |
| **Article I. Definitions and Interpretation** | **Article I. Definitions and Interpretation** | **1** |
| &nbsp;&nbsp;&nbsp;Section 1.01 | Definitions. | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.02 | Interpretation. | 6 |
| **Article II. The Transactions.** | **Article II. The Transactions.** | **6** |
| &nbsp;&nbsp;&nbsp;Section 2.01 | Purchase and Sale | 6 |
| &nbsp;&nbsp;&nbsp;Section 2.02 | Assets | 6 |
| &nbsp;&nbsp;&nbsp;Section 2.03 | Excluded Assets. | 8 |
| &nbsp;&nbsp;&nbsp;Section 2.04 | Liabilities | 8 |
| &nbsp;&nbsp;&nbsp;Section 2.05 | Consideration. | 9 |
| &nbsp;&nbsp;&nbsp;Section 2.06 | Potential Pre-Closing Asset Acquisitions. | 9 |
| &nbsp;&nbsp;&nbsp;Section 2.07 | Potential Pre-Closing Asset Sales. | 9 |
| &nbsp;&nbsp;&nbsp;Section 2.08 | Amendments/Addenda. | 10 |
| &nbsp;&nbsp;&nbsp;Section 2.09 | Debt Statement; Assumed and Retained Indebtedness | 10 |
| &nbsp;&nbsp;&nbsp;Section 2.10 | Additional Agreements and Actions at the Closing. | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.11 | Due Diligence Review. | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.12 | Required Shareholder Approvals. | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.13 | Closing | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.14 | Escrow Agent | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.15 | Closing Deliverables. | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.16 | AS-IS/WHERE-IS. | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.17 | Allocation of Purchase Price. | 15 |
| **Article III. Conditions to the Closing** | **Article III. Conditions to the Closing** | **15** |
| &nbsp;&nbsp;&nbsp;Section 3.01 | Condition to the Obligations of the Parties. | 15 |
| &nbsp;&nbsp;&nbsp;Section 3.02 | Conditions to Obligations of the Seller Parties | 16 |
| &nbsp;&nbsp;&nbsp;Section 3.03 | Conditions to Obligations of Buyer. | 17 |
| **Article IV. Representations and Warranties of the Seller** | **Article IV. Representations and Warranties of the Seller** | **18** |
| &nbsp;&nbsp;&nbsp;Section 4.01 | Organization and Power | 18 |
| &nbsp;&nbsp;&nbsp;Section 4.02 | Due Authorization; Enforceability | 18 |
| &nbsp;&nbsp;&nbsp;Section 4.03 | No Conflict; Consents | 18 |
| &nbsp;&nbsp;&nbsp;Section 4.04 | Compliance with Laws | 19 |
| &nbsp;&nbsp;&nbsp;Section 4.05 | Title to and Sufficiency of the Assets | 19 |
| &nbsp;&nbsp;&nbsp;Section 4.06 | Litigation. | 19 |
| &nbsp;&nbsp;&nbsp;Section 4.07 | Contracts | 19 |
| &nbsp;&nbsp;&nbsp;Section 4.08 | Intellectual Property | 20 |
| &nbsp;&nbsp;&nbsp;Section 4.09 | No Broker or Finder | 20 |
| **Article V. Representations and Warranties of Buyer** | **Article V. Representations and Warranties of Buyer** | **20** |
| &nbsp;&nbsp;&nbsp;Section 5.01 | Organization and Power of Buyer | 20 |
| &nbsp;&nbsp;&nbsp;Section 5.02 | Due Authorization; Enforceability | 21 |
| &nbsp;&nbsp;&nbsp;Section 5.03 | No Conflict; Consents | 21 |
| &nbsp;&nbsp;&nbsp;Section 5.04 | No Broker or Finder | 21 |

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i

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| | | |
|:---|:---|:---|
| **Article VI. Certain Covenants and Agreements** | **Article VI. Certain Covenants and Agreements** | **21** |
| &nbsp;&nbsp;&nbsp;Section 6.01 | Records | 21 |
| &nbsp;&nbsp;&nbsp;Section 6.02 | Notices of Certain Events. | 22 |
| &nbsp;&nbsp;&nbsp;Section 6.03 | Confidentiality. | 22 |
| &nbsp;&nbsp;&nbsp;Section 6.04 | Consents of Third Parties. | 25 |
| &nbsp;&nbsp;&nbsp;Section 6.05 | Non-Assignable Contracts | 25 |
| &nbsp;&nbsp;&nbsp;Section 6.06 | Misdirected Payments | 25 |
| &nbsp;&nbsp;&nbsp;Section 6.07 | Go-Shop. | 25 |
| &nbsp;&nbsp;&nbsp;Section 6.08 | No-Shop. | 26 |
| &nbsp;&nbsp;&nbsp;Section 6.09 | Affirmative Covenants. | 27 |
| &nbsp;&nbsp;&nbsp;Section 6.10 | Negative Covenants. | 28 |
| &nbsp;&nbsp;&nbsp;Section 6.11 | Effect of Knowledge. | 28 |
| &nbsp;&nbsp;&nbsp;Section 6.12 | Further Assurances. | 28 |
| &nbsp;&nbsp;&nbsp;Section 6.13 | Buyer Diligence and Other Expenses. | 29 |
| &nbsp;&nbsp;&nbsp;Section 6.14 | Bulk Sales; Certain Taxes. | 29 |
| &nbsp;&nbsp;&nbsp;Section 6.15 | Survival. | 30 |
| **Article VII. Termination** | **Article VII. Termination** | **30** |
| &nbsp;&nbsp;&nbsp;Section 7.01 | Termination. | 30 |
| &nbsp;&nbsp;&nbsp;Section 7.02 | Effect of Termination. | 31 |
| &nbsp;&nbsp;&nbsp;Section 7.03 | Default by Buyer | 31 |
| &nbsp;&nbsp;&nbsp;Section 7.04 | Default by Seller | 31 |
| **Article VIII. Miscellaneous** | **Article VIII. Miscellaneous** | **31** |
| &nbsp;&nbsp;&nbsp;Section 8.01 | Notices. | 31 |
| &nbsp;&nbsp;&nbsp;Section 8.02 | Governing Law. | 32 |
| &nbsp;&nbsp;&nbsp;Section 8.03 | Jurisdiction. | 32 |
| &nbsp;&nbsp;&nbsp;Section 8.04 | Waiver of Jury Trial. | 33 |
| &nbsp;&nbsp;&nbsp;Section 8.05 | Arbitration. | 33 |
| &nbsp;&nbsp;&nbsp;Section 8.06 | Specific Performance. | 34 |
| &nbsp;&nbsp;&nbsp;Section 8.07 | Limitation on Damages. | 34 |
| &nbsp;&nbsp;&nbsp;Section 8.08 | Attorneys' Fees. | 34 |
| &nbsp;&nbsp;&nbsp;Section 8.09 | Public Announcements and Filings. | 34 |
| &nbsp;&nbsp;&nbsp;Section 8.10 | Third-Party Beneficiaries. | 35 |
| &nbsp;&nbsp;&nbsp;Section 8.11 | Expenses. | 35 |
| &nbsp;&nbsp;&nbsp;Section 8.12 | Entire Agreement. | 35 |
| &nbsp;&nbsp;&nbsp;Section 8.13 | Construction. | 35 |
| &nbsp;&nbsp;&nbsp;Section 8.14 | Amendment or Waiver. | 35 |
| &nbsp;&nbsp;&nbsp;Section 8.15 | Commercially Reasonable Efforts. | 36 |
| &nbsp;&nbsp;&nbsp;Section 8.16 | Successors and Assigns. | 36 |
| &nbsp;&nbsp;&nbsp;Section 8.17 | Counterparts. | 36 |
| Exhibit A Bill of Sale and Assignment and Assumption Agreement | Exhibit A Bill of Sale and Assignment and Assumption Agreement |  |

---

ii

**Asset Purchase Agreement**

This Asset Purchase Agreement (this "Agreement") is dated as of January 15, 2026 (the "Effective Date"), and is entered into by and among Zoned Properties, Inc., a Nevada corporation ("Seller"); and Zoned Arizona Properties, LLC, and Arizona limited liability company ("Zoned Arizona"); ZP RE AZ Dysart, LLC, an Arizona limited liability company ("Dysart"); and ZP RE Holdings, LLC, an Arizona limited liability company ("RE Holdings") (each of Zoned Arizona, Dysart and ZP RE Holdings, a "Real Property Seller" and collectively, the "Real Property Sellers" and, together with Seller, the "Seller Parties" and each, a "Seller Party"); and BPB Partners, LLC, an Arizona limited liability company ("Buyer"). Each Seller Party and Buyer may be referred to herein individually as a "Party" and collectively as the "Parties".

**BACKGROUND**

WHEREAS, the Seller Parties are involved in the business (the "Business") as described in the SEC Reports (as defined below) and in connection therewith own the Assets (as defined below);

WHEREAS, Buyer desires to acquire from Seller Parties the Business and the Assets, in each case related to the operations of the Business, as further set forth herein;

NOW THEREFORE, in consideration of the foregoing and the representations, warranties, covenants, agreements and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties hereto agree as follows:

**Article I. Definitions and Interpretation**

Section 1.01 <u>Definitions.</u> In addition to the other terms defined herein, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;(a) "Acquisition Inquiry" means an inquiry, indication
of interest or request for nonpublic information that could reasonably be expected to lead to an Acquisition Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;(b) "Acquisition Proposal" is any formal indication,
letter of intent, term sheet, or similar proposal to pursue an Acquisition Transaction on certain terms contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;(c) "Acquisition Transaction" means any transaction
or series of related transactions with a Person or "group" (as defined in the Exchange Act and the rules promulgated thereunder)
concerning any (i) merger, consolidation, business combination, share exchange, joint venture or similar transaction involving Seller
pursuant to which such Person or "group" would own 5% or more of the consolidated assets, revenues or net income of Seller,
(ii) sale, lease, license or other disposition directly or indirectly by merger, consolidation, business combination, share exchange,
joint venture or otherwise, of assets of Seller representing 5% or more of the consolidated assets, revenues or net income of Seller,
(iii) issuance or sale or other disposition (including by way of merger, consolidation, business combination, share exchange, joint venture
or similar transaction) of any Equity Securities of Seller, (iv) transaction or series of transactions in which any Person or "group"
would acquire beneficial ownership or the right to acquire beneficial ownership of any Equity Securities of Seller, including without
limitation any of Transferred Shares, (v) action to make the provisions of any "fair price", "moratorium",
"control share acquisition", "business combination" or other similar anti-takeover statute or regulation inapplicable
to any transaction, or (vi) any combination of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;(d) "Action" means any action, suit, arbitration,
proceeding or investigation by or before any court, any governmental or other regulatory or administrative agency or commission or any
arbitration tribunal.

&nbsp;&nbsp;&nbsp;&nbsp;(e) "Affiliate" of any specified Person means any
other Person directly or indirectly Controlling or Controlled by or under direct or indirect common Control with such specified Person.

&nbsp;&nbsp;&nbsp;&nbsp;(f) "Business Day" means any day except Saturday,
Sunday or any day on which banks are generally not open for business in the State of Nevada.

&nbsp;&nbsp;&nbsp;&nbsp;(g) "Buyer Fundamental Representations" means the
representations and warranties of Buyer as set forth in Section 5.01 and Section 5.02.

&nbsp;&nbsp;&nbsp;&nbsp;(h) "Code" means the United States Internal Revenue
Code of 1986, as amended, and the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(i) "Contracts" means any written agreement, arrangement
or legally enforceable commitment (including any purchase orders, statements of work, or other similar documents) to which the any Seller
Party is a party or is bound as of the Closing Date that is related to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;(j) "Control" means, when used with respect to any
specified Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;(k) "Employment Agreement" means any employment contract,
consulting agreement, termination or severance agreement, salary continuation agreement, change of control agreement, non-compete agreement
or any other agreement respecting the terms and conditions of employment or payment of compensation, or of a consulting or independent
contractor relationship in respect to any current or former officer, employee, consultant or independent contractor for which any Seller
Party has any obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(l) "Equity Security" means, in respect of any Person,
(a) any capital stock or similar security, (b) any security convertible into or exchangeable for any security described in clause (a),
(c) any option, warrant, or other right to purchase or otherwise acquire any security described in clauses (a), (b), or (c), and, (d)
any "equity security" within the meaning of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;(m) "Exchange Act" means the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(n) "GAAP" means generally accepted accounting principles
in the United States, consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;(o) "Governmental Entity" means any federal, state,
local or foreign government, any political subdivision thereof, or any arbitrator, court, administrative or regulatory agency, department,
instrumentality, body or commission or other governmental authority or agency, domestic or foreign.

&nbsp;&nbsp;&nbsp;&nbsp;(p) "Indebtedness" means, without duplication, with
respect to any Person, all obligations (including all obligations in respect of principal, accrued interest, penalties, breakage costs,
fees and premiums) of such Person (a) for borrowed money; (b) evidenced by notes, bonds, debentures, factoring, hedging or swap arrangements
or similar contracts or instruments; (c) for the deferred purchase price of assets, property, goods or services (other than trade payables,
or accruals incurred in the Ordinary Course), including earn-out payments, and with respect to any conditional sale, title retention,
consignment or similar arrangements; (d) under capital leases or leases that are or will be required to be capitalized in accordance
with GAAP; (e) for any unpaid severance owed to former employees or any deferred compensation payments (including the employer portion
of any employment or payroll taxes related thereto); (f) any accrued but unpaid Tax liability; (g) for deferred revenue; (h) for any
customer deposits or credits; (i) by which such Person assured a creditor against loss, including letters of credit and bankers'
acceptances, in each case to the extent drawn upon or payable and not contingent; (j) secured by (or for which the holder of such indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on any property owned by such Person in the Ordinary Course;
(k) for amounts payable with respect to accrued or unaccrued warranty claims; (l) for any accrued unpaid bonuses; (m) for any dividends
or distributions payable or loans/advances payable to any shareholder of the Seller or any of its Affiliates which are not yet paid;
(n) in respect of any financial hedging arrangements, interest rate protection agreements, foreign currency exchange agreements or other
interest or exchange rate hedging arrangements; and (o) in the nature of guarantees of the obligations described in clauses (a) through
(n) above of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;(q) "Intellectual Property" means any or all of the
following and all intellectual property and proprietary rights, registered or unregistered, arising out of or associated therewith: (i)
all United States of America, international and foreign patents and applications therefor and all reissues, divisions, renewals, extensions,
provisionals, continuations and continuations-in-part thereof; (ii) all inventions (whether patentable or not), invention disclosures,
improvements, mask works, trade secrets, proprietary information, know-how, technology, technical data and customer lists, and all documentation
relating to any of the foregoing throughout the world; (iii) all works of authorship (whether copyrightable or not), all copyrights,
copyright registrations and applications therefor, and all other rights corresponding thereto throughout the world; (iv) all industrial
designs and any registrations and applications therefor throughout the world, including the goodwill connected with the use of and symbolized
by the foregoing; (v) all internet uniform resource locators, domain names, social media profiles and identifiers, web addresses and
websites, trade names, logos, slogans, designs, trade dress, common law trademarks and service marks, trademark and service mark and
trade dress registrations and applications therefor throughout the world; (vi) all computer software, databases and data collections
and all rights therein throughout the world; (vii) all moral and economic rights of authors and inventors, however denominated,
throughout the world; and (viii) any similar or equivalent rights to any of the foregoing anywhere in the world.

&nbsp;&nbsp;&nbsp;&nbsp;(r) "Knowledge of the Seller" means the actual knowledge
of any director or executive officer of Seller, without any duty to investigate.

&nbsp;&nbsp;&nbsp;&nbsp;(s) "Laws" mean all statutes, laws, rules, codes,
regulations, rulings, restrictions, ordinances, orders, decrees, approvals, directives, judgments, injunctions, writs, awards and decrees
of, or issued by, any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;(t) "Liens" mean all mortgages, liens, pledges, security
interests, charges, claims, restrictions and encumbrances of any nature whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;(u) "Material Adverse Effect" means any event, occurrence,
fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to
(a) the business, results of operations, condition (financial or otherwise) or assets of the affected Party, or (b) the ability of the
affected Party to consummate the Transactions on a timely basis; provided, however, that "Material Adverse Effect" shall
not include any event, occurrence, fact, condition, or change, directly or indirectly, arising out of or attributable to: (i) any changes,
conditions or effects in the United States economy or securities or financial markets in general; (ii) changes, conditions or effects
that generally affect the industries in which the affected Party operates; (iii) any change, effect or circumstance resulting from an
action required or permitted by this Agreement; or (iv) conditions caused by acts of terrorism or war (whether or not declared); provided
further, however, that any event, occurrence, fact, condition, or change referred to in clauses (i), (ii) or (iv) immediately above shall
be taken into account in determining whether a Material Adverse Effect has occurred to the extent that such event, occurrence, fact,
condition, or change has a disproportionate effect on the affected Party compared to other participants in the industries in which the
affected Party conducts its business.

&nbsp;&nbsp;&nbsp;&nbsp;(v) "Membership Interests" means the membership interests
of the Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;(w) "Non-Assignable Contracts" means a contract included
in the Assumed Contracts that requires third party consents for assignment that has not been obtained by the applicable Seller Party
as of the Closing, despite its commercially reasonable efforts to do so.

&nbsp;&nbsp;&nbsp;&nbsp;(x) "NRS" means the Nevada Revised Statutes, as in
place from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;(y) "Order" means any decree, order, judgment, writ,
award, injunction, rule or consent of or by a Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;(z) "Ordinary Course" means the ordinary course of
business consistent with past practice of the Seller with respect to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;(aa) "Organizational Documents" means, with respect
to any Person, its certificate of incorporation or articles of incorporation, bylaws, memorandum and articles of association, operating
agreement or similar organizational documents, in each case, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;(bb) "Permitted Liens" means (i) Liens for Taxes not
yet due and payable, (ii) statutory Liens of landlords, (iii) Liens of carriers, warehousemen, mechanics, materialmen and repairmen
incurred in the Ordinary Course and not yet delinquent; and (iv) all obligations pursuant to the Assumed Contracts to the extent arising
following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;(cc) "Person" means any individual, corporation, partnership,
joint venture, limited liability company, trust, unincorporated organization or Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;(dd) "Representatives" means, as to any Person, such
Person's Affiliates and the respective managers, directors, officers, employees, independent contractors, consultants, advisors
(including financial advisors, counsel and accountants), agents and other legal representatives of such Person or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;(ee) "SEC Reports" means the filings and reports made
by the Seller with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;(ff) "SEC" means the United States Securities and
Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Securities Act" means the Securities Act of
1933, as amended, and the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(hh) "Seller Fundamental Representations" means the
representations and warranties as set forth in Section 4.01 and Section 4.02.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Seller Material Adverse Effect" means a Material
Adverse Effect on Seller, or a Material Adverse Effect on any of the Assets or on Assumed Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;(jj) "Seller Transaction Expenses" means all costs
and expenses of the Seller Parties arising or incurred in connection with the negotiation, preparation, investigation and performance
of this Agreement, the Transaction Documents related thereto and the Transactions hereunder, including fees and expenses of counsel,
accountants, consultants, advisers and others.

&nbsp;&nbsp;&nbsp;&nbsp;(kk) "Subsidiaries" means the entities as set forth
in Section 2.02(b), Section 2.02(c), Section 2.02(d), Section 2.02(e), Section 2.02(f), and Section 2.02(g).

&nbsp;&nbsp;&nbsp;&nbsp;(ll) "Taxes" means all taxes, assessments, charges,
duties, fees, levies and other governmental charges (including interest, penalties or additions associated therewith), including income,
franchise, capital stock, real property, personal property, tangible, withholding, employment, payroll, social security, social contribution,
unemployment compensation, unclaimed property, escheat, disability, transfer, sales, use, excise, license, occupation, registration,
stamp, premium, environmental, customs duties, alternative or add-on minimum, estimated, gross receipts, value-added and all other taxes
of any kind imposed by any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;(mm) "Transaction Documents" means this Agreement,
the Bill of Sale, and any other agreement entered into by and between the Parties hereunder or with respect to the Transactions and the
consummation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(nn) "Transactions" means the transactions as contemplated
by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;(oo) "United States" means the United States of America.

Section 1.02 <u>Interpretation.</u> Unless the express context otherwise requires (i) the words "hereof," "herein," and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (ii) terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa; (iii) the terms "Dollars" and "$" mean United States Dollars; (iv) references herein to a specific Section, Subsection, Recital or Exhibit shall refer, respectively, to Sections, Subsections, Recitals or Exhibits of this Agreement; (v) wherever the word "include," "includes," or "including" is used in this Agreement, it shall be deemed to be followed by the words "without limitation"; (vi) references herein to any gender shall include each other gender; (vii) references herein to any Person shall include such Person's heirs, executors, personal Representatives, administrators, successors and assigns; provided, however, that nothing contained in this Section 1.02 is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; (viii) references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity; (ix) references herein to any Contract or agreement (including this Agreement) mean such Contract or agreement as amended, supplemented or modified from time to time in accordance with the terms thereof; (x) with respect to the determination of any period of time, the word "from" means "from and including" and the words "to" and "until" each means "to but excluding"; (xi) references herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented or superseded in whole or in part, and in effect from time to time; and (xii) references herein to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder.

**Article II. The Transactions.**

Section 2.01 <u>Purchase and Sale</u>. Subject to the terms and conditions of this Agreement, on the Closing Date (as defined below) the Seller Parties will grant, sell, assign, transfer, convey and deliver to Buyer, and Buyer will purchase and acquire from the Seller Parties, free and clear of all Liens, other than Permitted Liens, all of the Seller Parties' rights, title and interest in and to the Business and the Assets (as defined below), and Buyer will assume the Assumed Liabilities (as defined below).

Section 2.02 <u>Assets</u>. The "Assets" means all of the assets, properties and rights of the Seller Parties, subject to modification as set forth in Section 2.06 and Section 2.07, and other than the Excluded Assets:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The title and interests in the real property held by each
Real Property Seller at the location set forth below next to the name of such Real Property Seller, including all rights and obligations
relating to each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 410 S. Madison Drive, Tempe, Arizona, held by Zoned Arizona;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 13150 W. Bell Road, Surprise, Arizona, held by Dysart, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) 3455 S. Ashland Avenue, Chicago, Illinois, held by RE Holdings;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller's 100% membership interests in RE Holdings,
LLC;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller's 100% membership interests in Zoned Properties
Brokerage, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller's 100% membership interests in ZP Brokerage
FL, LLC

&nbsp;&nbsp;&nbsp;&nbsp;(e) Seller's 100% membership interests in ZP Data Platform
2, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;(f) Seller's 5% membership interests in ZP Ohio B, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;(g) Seller's 50% membership interests in Zoneomics Green,
LLC;

&nbsp;&nbsp;&nbsp;&nbsp;(h) all rights under all Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;(i) all Intellectual Property of the Seller Parties (the "Assigned
Intellectual Property");

&nbsp;&nbsp;&nbsp;&nbsp;(j) copies of all information, files, correspondence, records,
data, plans, reports, contracts, recorded knowledge, including customer, supplier, member, price and mailing lists, and all accounting
or other books and records of the Seller in whatever media retained or stored, including computer programs and disks, in each case as
relating to the Business (collectively, "Purchased Records");

&nbsp;&nbsp;&nbsp;&nbsp;(k) any security deposits paid by the tenants of the Seller Parties'
properties, the repayment of which will become the obligation of the Buyer in connection with the acquisition of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;(l) the assets as referenced in Section 2.06, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;(m) the assets as referenced to be included in the Assets in
Section 2.07, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;(n) all prepaid expenses, credits, advance payments, claims,
security, refunds, rights of recovery, rights of set-off, rights of recoupment, deposits, charges, sums and fees;

&nbsp;&nbsp;&nbsp;&nbsp;(o) the billed and unbilled accounts receivable, and any security,
claim, remedy or other right related thereto, and all correspondence with respect thereto including all trade accounts receivable, notes
receivable from customers, vendor credits, book debts and other forms of obligations owed with respect to sales of goods or services
of the Seller, whether or not evidenced by a note;

&nbsp;&nbsp;&nbsp;&nbsp;(p) all equipment, machinery, furniture, fixtures and improvements
wherever located owned by the Seller Parties; all replacement parts for any of the foregoing; any rights under express or implied warranties
and licenses received from manufacturers and sellers of the aforesaid items described in this section 2.02(l); and any related claims,
credits, indemnities, rights of recovery and set off with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;(q) any and all inventory, including all raw materials, work-in-process,
finished goods, in-transit inventory relating to the Business and the related packaging materials;

&nbsp;&nbsp;&nbsp;&nbsp;(r) all licenses, permits, franchises, approvals, authorizations,
consents, orders by, or filings with, any Governmental Entity used or required to be used in the conduct of the Business or the consummation
by Seller Parties of the transactions contemplated hereby, and all renewals thereof, in each case to the extent permitted by applicable
law and otherwise transferable to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;(s) all rights to any claims based on warranties or similar rights
available to or being pursued by the Seller Parties and other Claims of Seller Parties, the Purchased Assets or the Assumed Liabilities,
whether arising by way of counterclaim or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;(t) all rights to receive any insurance proceeds (including rights
to make a claim), arising from or relating to the Business, the Assets or the Assumed Liabilities, to the extent transferable and to
the extent of any covered losses actually born by Buyer as finally determined; and

&nbsp;&nbsp;&nbsp;&nbsp;(u) the goodwill of the Business.

Section 2.03 <u>Excluded Assets.</u> Notwithstanding anything to the contrary set forth in this Agreement, the Assets will not include the following assets properties and rights of the Seller Parties or their respective Affiliates (collectively, the "Excluded Assets"): (a) cash, cash equivalents and marketable securities; (b) Organizational Documents or minute and equity record books of Seller Parties; (c) income tax returns and reports of Seller Parties; (d) corporate seals, checkbooks and cancelled checks of Seller Parties; (e) all rights, claims and causes of action relating to any Excluded Asset or Excluded Liability; (f) all equity interests of Seller Parties and any of its Affiliates (other than those specifically identified in Section 2.02); (g) all refunds of any Tax that is an Excluded Liability; (h) all written communications, including emails, relating to the Excluded Assets, Excluded Liabilities and negotiations related to the Transactions; (i) all Employment Agreements held by the Seller Parties; (j) all rights of the Seller Parties under this Agreement, and all other Transaction Documents; (k) all insurance policies of the Seller Parties and all rights, claims or causes of action of the Seller Parties arising under such insurance policies for covered losses actually borne by Seller Parties as finally determined (other than as set forth in Section 2.10(a)); (l) all rights of the Seller Parties under contracts or agreements that are not Assumed Contracts; and (m) if applicable, the assets as referenced in Section 2.07.

Section 2.04 <u>Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assumed Liabilities</u>. On the terms and subject to the
conditions of the Agreement, as of the Closing Date, Buyer will assume only the Assumed Liabilities, to the extent not satisfied or extinguished
as of the Closing Date. The "Assumed Liabilities" means, subject to Section 2.04(b), (i) the obligations of the Seller Parties
relating to the Assets or pursuant to the Assumed Contracts solely and exclusively to the extent arising and accruing from and after
the Closing Date; (ii) the obligations of the Seller Parties with respect to the Assigned Intellectual Property solely and exclusively
to the extent arising and accruing from and after the Closing Date; and (iii) the Assumed Indebtedness (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Excluded Liabilities</u>. Except for the Assumed Liabilities,
it is expressly understood and agreed that Buyer will not assume, and will not be liable for, any liabilities or obligations of Seller
Parties or the Business as set forth below in the definition of "Excluded Liabilities", and, as between Buyer on the one
hand, and the Seller Parties, on the other hand, the Seller Parties will retain responsibility for all Excluded Liabilities. For purposes
herein, "Excluded Liabilities" means (i) any and all liabilities and obligations arising from or relating to the Business
or the Assets prior to the Closing Date; (ii) the obligations of the Seller Parties under the Assumed Contracts to the extent arising
and accruing prior to the Closing Date and relating to a breach or default by Seller or a failure to perform timely, in each case, prior
to the Closing Date; (iii) the obligations of the Seller Parties with respect to the Assigned Intellectual Property to the extent arising
and accruing prior to the Closing Date; (iv) any and all liabilities and obligations for Taxes, including relating to (A) any liability
or obligation for the unpaid Taxes of Seller Parties with respect to any period, or (B) any Taxes arising out of or relating to the operation
of Seller Parties or the Business or the ownership of the Assets prior to the Closing Date; (v) any Retained Indebtedness; (vi) any
and all liabilities or obligations pertaining to any Excluded Assets; and any and all other liabilities or obligations not specifically
included in the Assumed Liabilities as defined in Section 2.04.

Section 2.05 <u>Consideration.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Section 2.05(b), the purchase
price for the Assets shall be $7,000,000, less the Assumed Indebtedness, which Assumed Indebtedness excludes, for purposes of this Section
2.05(a), any Additional Asset Acquisition Indebtedness which becomes Assumed Indebtedness (as adjusted pursuant to Section 2.05(b), the
"Purchase Price").

&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Closing, the Purchase Price as set forth in Section
2.05(a) shall be subject to adjustment as set forth in Section 2.06 and Section 2.07.

Section 2.06 <u>Potential Pre-Closing Asset Acquisitions.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties acknowledge and agree that, between the Effective
Date and the Closing (as defined below) the Seller or one or more of Seller's Affiliates may acquire or invest in additional real
estate assets that are currently in escrow and/or in the Seller's acquisition pipeline (the "Additional Assets"), which
Additional Assets shall be acquired by the Seller or such Affiliate for cash and/or debt instruments issued by the Seller or such Affiliate
to the seller of such Additional Assets (the "Additional Asset Acquisition Indebtedness").

&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon acquisition of or investment in any Additional Assets,
then (1) such Additional Assets shall be deemed included in the "Assets" for all purposes herein, (2) the Purchase Price
shall be increased by the amount of the cash purchase price paid therefore by the Seller or its Affiliate; (3) the Purchase Price shall
be decreased by the amount of any Additional Asset Acquisition Indebtedness; and (4) the Additional Asset Acquisition Indebtedness shall
be deemed included in the Assumed Liabilities for all purposes hereunder.

Section 2.07 <u>Potential Pre-Closing Asset Sales.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties acknowledge and agree that, between the Effective
Date and the Closing, it is contemplated that the Seller may sell the real estate assets located at 23622-23634 Woodward Avenue, Pleasant
Ridge, Michigan (the "Pleasant Ridge Assets") to a third party buyer for a purchase price to be determined (as finally determined,
the "Pleasant Ridge Purchase Price"), and the Pleasant Ridge Assets are not currently included within the "Assets"
for purposes herein. In the event that the sale of the Pleasant Ridge Assets is not consummated prior to the Closing, then the Pleasant
Ridge Assets shall be deemed included in the "Assets" for all purposes herein, the Pleasant Ridge Purchase Price shall be
deemed to be the appraisal value of the Pleasant Ridge Assets as determined by a third party appraiser mutually acceptable to Buyer and
Seller (acting reasonably), and the Purchase Price (as defined below) shall be increased by the amount of the Pleasant Ridge Purchase
Price as so determined.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties further acknowledge and agree that, between the
Effective Date and the Closing, it is contemplated that the Seller may sell the real estate assets located at each of (i) 2144 N. Road
1 East, Chino Valley, Arizona; (ii) 2095 Northern Avenue, Kingman, Arizona; (and (iii) 1732 W. Commerce Point Place, Green Valley, Arizona
(collectively, "CKG Properties") to a separate third party buyer, for a total purchase price of $9,000,000 (the "CKG
Purchase Price"), which, if such sale is consummated to such third party buyer, would be paid $4,000,000 in cash (the "CKG
Cash Purchase Price"), and $5,000,000 via promissory note payable to the Seller secured by a deed or deeds of trust and other standard
security instruments on the CKG Properties in favor of Seller (the "CKG Note").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the sale of the CKG Properties is not consummated
prior to the Closing, then (1) the CKG Properties shall be deemed included in the "Assets" for all purposes herein, (2) the
Purchase Price shall be increased by the amount of the CKG Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that the sale of the CKG Properties is consummated
prior to the Closing, then (1) the CKG Properties not be included in the "Assets", but the CKG Note shall be included in
the "Assets" for all purposes herein; (2) the CKG Note and related deeds of trust and other relevant security instruments
shall be assigned to Buyer at the Closing; and (3) the Purchase Price shall be increased by the principal amount of the CKG Note.

Section 2.08 <u>Amendments/Addenda.</u> Upon any acquisition of Additional Assets as set forth in Section 2.06, and/or the sale of the Pleasant Ridge Assets and/or the CKG Assets as referenced in Section 2.07(a) and Section 2.07(b), the Seller shall notify the Buyer, and, if required, the Parties shall reasonably cooperate to execute one or more amendments or addenda to this Agreement as required to give effect to the provisions of Section 2.06 and Section 2.07.

Section 2.09 <u>Debt Statement; Assumed and Retained Indebtedness</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Within thirty (30) days after the Effective Date, Seller
will deliver a statement (the "Debt Statement") to Buyer identifying, describing and quantifying all outstanding Indebtedness
of Seller Parties, and no later than fifteen (15) Business Days prior to the Closing, Seller will provide an updated Debt Statement describing
the Indebtedness of the Seller as of the Closing (the "Business Indebtedness").

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties will reasonably cooperate to determine what Business
Indebtedness may have the option to be transferred to and assumed by Buyer at the Closing, provided that Buyer, at its sole and absolute
discretion without any obligation, shall have the option to determine what Business Indebtedness will be transferred to and assumed by
Buyer at the Closing, and to determine what amount of the Business Indebtedness will be repaid by or on behalf of the Seller at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Following delivery of the Debt Statement and the actions
as set forth in Section 2.09(b), the Buyer shall prepare a final Debt Statement and deliver the same to the Seller at least one (1) Business
Day prior to the Closing (the "Final Debt Statement"). In the event that the Seller agrees with the Final Debt Statement,
the Parties will proceed to the Closing based thereon, and in the event that the Seller disagrees with the Final Debt Statement, the
Seller shall so notify the Buyer, and such disagreement shall be resolved as set forth in Section 2.09(d), and the Closing shall be delayed
as required for such resolution procedure to be completed.

&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that the Parties are not able to agree on the
Final Debt Statement as set forth in Section 2.09(b), then any such dispute will be resolved by an independent accounting firm selected
jointly by Parties within an additional 10 days of the notice to the Buyer (the "Reviewing Accountant"). If the Parties are
unable to agree on the identity of the Reviewing Accountant within such 10 day period, each Party shall select one independent accounting
firm within an additional 5 days, and the two independent accounting firms so selected shall select the sole independent accounting firm
which shall be the "Reviewing Accountant"). Once selected, the Reviewing Accountant will be instructed to resolve any matters
in dispute as promptly as practicable but in no event more than 30 days after submission. The fees of the Reviewing Accountant will be
borne equally by the Parties, unless the Reviewing Accountant determines that either Party was unreasonable in its approach to calculating
and agreeing on the Final Debt Statement, in which case the Reviewing Accountant, in its sole discretion, may apportion such fees as
it sees fit. Any such matters in dispute will be determined resolved fully, finally and exclusively by the Reviewing Accountant and such
determination will be final and binding on the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;(e) The amount of Business Indebtedness to be assumed by Buyer
as set forth on the finally agreed Final Debt Statement is referred to as the "Assumed Indebtedness" and the amount of Business
Indebtedness to be paid by or on behalf of the Seller at the Closing as set forth on the finally agreed Final Debt Statement is referred
to as the "Retained Indebtedness".

&nbsp;&nbsp;&nbsp;&nbsp;(f) At the Closing, the Escrow Agent shall pay from escrowed
Closing proceeds any Retained Indebtedness pursuant to the Payoff Letters obtained from relevant debt holders prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Following the Effective Date and until the earlier to occur
of the Closing and the termination of this Agreement, Buyer shall have the right to contact and negotiate directly with the following
debt holders regarding the Indebtedness: East West Bank, Private Money Funding, Al Abrams, Thomas Pearlman, and Christopher Gangnier.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything herein to the contrary, the Parties
acknowledge and agree that the Transactions are on a debt-free, cash-free basis and Seller shall be entitled, in its discretion but with
written notice to Buyer, to distribute or pay any cash from the Business to itself or other Persons prior to the Closing.

Section 2.10 <u>Additional Agreements and Actions at the Closing.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Closing, the Parties shall undertake such actions
as required to transfer and assign the key-man insurance policy with respect to Bryan McLaren from the Seller as the beneficiary to the
Buyer as the beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Closing, Seller will cause its designated entities
and/or individuals to resign as principal officers, members, and/or agents of the Subsidiaries, and the Parties shall execute and deliver
such instruments and agreements as required to appoint Buyer's designees as the new principal officers, members, and/or agents
of the Subsidiaries, with the appropriate state corporation commissions and regulatory authorities.

Section 2.11 <u>Due Diligence Review.</u> Following the Effective Date and for a period of one hundred and eighty (180) days thereafter (the "Due Diligence Period"), the Buyer shall undertake its due diligence review of the Seller Parties and the Business, and the Seller shall use commercially reasonable efforts to promptly provide the Buyer and its Representatives with any information in Seller's possession or control relating to Seller Parties and the Business (the "Due Diligence Materials"), so that the Buyer may complete its due diligence review of the Seller Parties and the Business, which due diligence review shall be completed during normal business hours and with reasonable advance notice, in such manner as to not materially interfere with the Ordinary Course of business of the Seller. In the event that the Buyer, at any time during the Due Diligence Period, determines that its due diligence review of the Seller Parties and the Business is not satisfactory to the Buyer for any reason in its sole discretion, the Buyer shall have the right to terminate this Agreement upon notice to the Seller.

Section 2.12 <u>Required Shareholder Approvals.</u> Seller shall prepare such documents as required to obtain the approval and adoption of this Agreement, the Transaction Documents and the Transactions by (i) the shareholders of Seller holding a majority of the voting power of the Seller, as required by Section 78.565 of the NRS; and (ii) shareholders of Seller holding a majority of the voting power of the Seller, but excluding for such purposes any such shareholder, and shares or stock of the Seller, held by any Persons who own, control or have any interest in the Buyer (such approvals in clause (i) and clause (ii) collectively, the "Required Shareholder Approvals"). For the avoidance of doubt, the intent of clause (ii) of the preceding sentence is that the Transactions and the Closing shall be conditioned, pursuant to the conditions to the Closing as set forth in Article III, on the approval of a majority of the voting power of the Seller which is held by those Persons other than Persons who own, control or have any interest in the Buyer.

Section 2.13 <u>Closing</u>. The closing of the Transactions (the "Closing") will occur on the second Business Day following the satisfaction, or waiver by the Party for whom such condition to Closing exists, of the conditions to the Closing as set forth in Article III, or such other date as may be agreed to by the Parties, each in their sole discretion (the "Closing Date").

Section 2.14 <u>Escrow Agent</u>. Following the Effective Date and prior to the Closing, the Parties shall engage a mutually agreed third party to act as the escrow agent with respect to the Closing (the "Escrow Agent"), which is currently expected to be Chadwick Campbell from Kensington Vanguard National Title.

Section 2.15 <u>Closing Deliverables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) At or prior to the Closing, Buyer shall pay or deliver to
the Escrow Agent, which shall thereafter forward to the Seller and/or the appropriate third parties at the Closing upon the direction
of the Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The following payments for further distribution by Escrow
Agent, by wire transfer of immediately available funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) An amount equal to the Retained Indebtedness to be paid to
the holders of such Retained Indebtedness at the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An amount equal to the Seller Transaction Expenses, to be
disbursed by the Escrow Agent to such third parties as instructed by Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Purchase Price, less (A) the sum of (1) and (2) above,
and (B) any unreimbursed Buyer Diligence Expenses as of the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Copies of all documents as required to effectuate the transactions
as set forth in Section 2.10(a) and Section 2.10(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A copy of the Bill of Sale and Assignment and Assumption Agreement,
in the form as attached hereto as Exhibit A (the "Bill of Sale") duly executed by an authorized officer of Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such instruments and agreements as required to transfer the
Membership Interests to the Buyer, duly executed by an authorized officer of Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Such instruments and agreements as required for Buyer to assume
and become responsible for the Assumed Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) A certificate of a duly authorized officer of Buyer dated
as of the Closing Date, in form and substance reasonably satisfactory to the Seller (A) certifying the name, title and true signature
of each officer of each Buyer executing or authorized to execute any Transaction Documents, and such other documents, instruments and
certifications required or contemplated hereby or thereby, (B) attaching a certificate of good standing and legal existence of Buyer
issued by the Secretary of State of the state of its organization and/or domicile and dated as of a date no earlier than three Business
Days prior to the Closing Date; and (C) certifying that the matters set forth in Section 3.02(a) and Section 3.02(b) are true and correct;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Such other documents as the Seller may reasonably request
for the purpose of evidencing the accuracy of Buyer's representations and warranties; evidencing the performance by Buyer of, or
the compliance by Buyer with, any covenant or obligation required to be performed or complied with by Buyer; or otherwise facilitating
the consummation or performance of any of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(b) At or prior to the Closing, the Seller shall deliver to the
Escrow Agent, which shall thereafter forward to the Buyer at the Closing upon the direction of the Seller, or to Buyer (as applicable)
the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Copies of all documents as required to effectuate the transactions
as set forth in Section 2.10(a) and Section 2.10(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A copy of the Bill of Sale, duly executed by an authorized
officer of the Seller, and such other deeds of conveyance, assurances, transfers, assignments instruments as may be reasonably required
by Buyer to complete the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to the transfer of the real property described
in Section 2.02(a):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Deeds of transfer in form and substance reasonably acceptable
to Buyer and suitable for recording purposes with the applicable Governmental Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Assignments of leases with estoppel affidavits in form and
substance reasonably acceptable to Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such other title instruments and other agreements as Buyer
or Escrow Agent may reasonably require of Seller to facilitate the transfer of the real property described in Section 2.02(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Physical possession and control of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Purchased Records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Such additional assignments or instruments as reasonably requested
by Buyer evidencing the transfer of any trademarks, patents, copyrights, domain names, and other Assigned Intellectual Property of the
Seller Parties, in form suitable for recording with relevant Governmental Entities, where applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Such instruments and agreements as required to transfer the
Membership Interests to the Buyer, including any physical certificates evidencing the ownership of the Membership Interests, duly executed
by an authorized officer of Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Such instrument and agreements as required for Buyer to realize
the benefit of the consummation of the transactions contemplated in Section 2.06 and Section 2.07, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Such consents of approvals by, or notices to any counterparty
under any Assumed Contract as required by its terms and as reasonably required by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) a certificate of a duly authorized officer of each Seller
Party dated as of the Closing Date, in form and substance satisfactory to Buyer (A) certifying the name, title and true signature of
each officer of such Seller Party executing or authorized to execute any Transaction Document, and such other documents, instruments
and certifications required or contemplated hereby or thereby, (B) attaching and certificates of good standing and legal existence of
Seller Parties and all Subsidiaries; issued by the Secretary of State of the State of Nevada in the case of Seller and state of organization
or domicile in the case of each Seller Party and Subsidiary, each dated as of a date no earlier than three Business Days prior to the
Closing Date; (C) certifying that the matters set forth in Section 3.03(a), Section 3.03(b) and Section 3.03(c) are true and correct;
and (D) providing reasonable evidence of receipt of the Required Shareholder Approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) appropriate payoff and termination letters from the applicable
secured parties or other holders of the Retained Indebtedness (the "Payoff Letters"), evidencing the release of any Liens
on the Assets utilized to secure any of such indebtedness and accompanied by any prepared UCC-3 financing statement terminations necessary
to be filed with the relevant state authorities to terminate any such Liens; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) such other documents as Buyer may reasonably request for the
purpose of evidencing the accuracy of the Seller Parties' representations and warranties; evidencing the performance by the Seller
Parties of, or the compliance by the Seller Parties with, any covenant or obligation required to be performed or complied with by the
Seller; or otherwise facilitating the consummation or performance of any of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(c) At and following the Closing, each of the Parties shall execute,
acknowledge, and deliver (or shall ensure to be executed, acknowledged, and delivered), any and all certificates, financial statements,
schedules, agreements, resolutions, rulings or other instruments required by this Agreement to be so delivered at or prior to the Closing,
together with such other items as may be reasonably requested by the Parties hereto and their respective legal counsel in order to effectuate
or evidence Transactions.

Section 2.16 <u>AS-IS/WHERE-IS.</u> Notwithstanding anything herein to the contrary, or which may be read or interpreted to the contrary, the Parties acknowledge and agree that the Assets are being sold and transferred to the Buyer on an "as-is/where-is" basis, and the Seller Parties are making no representations and warranties as to the condition sufficiency or status of any of the Assets or the Assumed Liabilities.

Section 2.17 <u>Allocation of Purchase Price.</u> The Parties agree that the transactions contemplated by this Agreement are intended to be treated for federal income Tax purposes (and, where applicable, state and local income Tax purposes) as a taxable sale by the Seller Parties of an undivided interest in the Business and Assets of the Seller Parties to Buyer in exchange for the Purchase Price (the "Intended Tax Treatment"). Within one hundred twenty (120) days after the Closing Date, the Buyer and the Seller shall reasonably cooperate to determine the allocation of the Purchase Price (and any other relevant items to the extent properly included under the Code) amongst the Assets, taking into account any adjustments made thereto pursuant to this Agreement, among the purchased Assets in accordance with the Code, which allocations are binding upon the parties (the "Purchase Price Allocation"). Buyer and Seller shall file all returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns and claims for refund) ("Tax Returns") in a manner consistent with the Intended Tax Treatment and Purchase Price Allocation and will not take or cause to be taken any position or other action inconsistent with the Intended Tax Treatment or Purchase Price Allocation for any Tax reporting purpose, upon examination of any Tax Return, in any refund claim, or in any litigation, investigation, or otherwise, unless otherwise required do so pursuant to a "determination" (as defined in Section 1313(a) of the Code or any similar state or local Tax Law).

**Article III. Conditions to the Closing**

Section 3.01 <u>Condition to the Obligations of the Parties.</u> The obligations of each of the Parties to consummate the Closing are subject to the satisfaction or waiver by each Party in each Party's sole and absolute discretion of all the following conditions on or before the Outside Closing Date (as defined below):

&nbsp;&nbsp;&nbsp;&nbsp;(a) No Governmental Entity shall have enacted, issued, promulgated,
enforced or entered any Law (whether temporary, preliminary or permanent) or Order that is then in effect and which has the effect of
making the transactions or agreements contemplated by this Agreement illegal or which otherwise prevents or prohibits consummation of
the transactions contemplated by this Agreement and no Governmental Entity shall have imposed any terms or conditions on the transactions
contemplated herein which would reasonably be expected to materially impact the operations of the Parties following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;(b) There shall not be any Action brought by a third party that
is not an Affiliate of the Parties to enjoin or otherwise restrict the consummation of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The Required Shareholder Approvals shall have been received.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller and the Special Transactions Committee of the
Board of Directors of the Seller (the "Committee") shall have received an opinion as to the fairness of the Transactions
(subject to the immediately following sentence), from a financial point of view, to the shareholders of the Seller, in such form and
substance as reasonably determined to be sufficient in the sole discretion of the Committee; and such Opinion shall not have been modified
and shall be remaining valid and in full force and effect as of the Closing. The Parties acknowledge and agree that the fairness opinion
referenced above, shall include all of the "Assets" as comprising the "Assets" as of the Closing, after any modifications
as set forth in Section 2.06 and Section 2.07, and any modification of the Purchase Price as a result thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(e) All consents required to be obtained from or made with any
Governmental Entity or any other Person in order to consummate the Transactions shall have been obtained or made.

&nbsp;&nbsp;&nbsp;&nbsp;(f) The satisfaction of any applicable state filing, regulatory,
or licensing requirements and the receipt of any applicable state and regulatory approvals, including, but not limited to, from the Arizona
Corporation Commission and the Arizona Department of Real Estate, which may be required in connection with the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(g) The Parties shall have agreed on the Final Debt Statement,
and the amounts of the Assumed Indebtedness and the Retained Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;(h) The Seller Parties shall have completed and approved all
ancillary documentation and/or agreements required to effectuate the winding down of 100% of the operations of the Seller Parties and
all other subsidiaries that are not included among the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement shall not have been terminated this Agreement
pursuant to the provisions of Section 7.01.

Section 3.02 <u>Conditions to Obligations of the Seller Parties</u>. The obligations of the Seller Parties to consummate the Closing is subject to the satisfaction, or the waiver by Seller (on behalf of itself and of any applicable Seller Party) at Seller's sole and absolute discretion, of all the following further conditions:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer shall have duly performed all of its obligations hereunder
required to be performed by it at or prior to the Closing Date in all material respects, unless the applicable obligation has a materiality
qualifier in which case it shall be duly performed in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the representations and warranties of Buyer contained
in Article V which are not qualified by materiality shall be true and correct in all material respects on and as of the Effective Date
and on and as of the Closing Date as if made on the Closing Date, and those representations and warranties of Buyer contained in Article
V which are qualified by materiality, and the Buyer Fundamental Representations, shall be true and correct in all respects on and as
of the Effective Date and on and as of the Closing Date as if made on the Closing Date, except for (i) those representations and warranties
other than the Buyer Fundamental Representations that address matters only as of a particular date, which representations and warranties
shall have been true and correct in all material respects, or in all respects, as applicable, and (ii) other than with respect to the
Buyer Fundamental Representations, any failures to be true and correct that (without giving effect to any qualifications or limitations
as to materiality), individually or in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect
on Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer shall have delivered all of the items required to be
delivered by Buyer pursuant to Section 2.15(a).

Section 3.03 <u>Conditions to Obligations of Buyer.</u> The obligations of Buyer to consummate the Closing is subject to the satisfaction, or the waiver by Buyer at Buyer's sole and absolute discretion, of all of the following further conditions:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller Parties shall have duly performed all of their obligations
hereunder required to be performed by it at or prior to the Closing Date in all material respects, unless the applicable obligation has
a materiality qualifier in which case it shall be duly performed in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the representations and warranties of the Seller contained
in Article IV which are not qualified by materiality or Seller Material Adverse Effect shall be true and correct in all material respects
on and as of the Effective Date and on and as of the Closing Date as if made on the Closing Date, those representations and warranties
of the Seller contained in Article IV which are qualified by materiality or Seller Material Adverse Effect, and the Seller Fundamental
Representations, shall be true and correct in all respects on and as of the Effective Date and on and as of the Closing Date as if made
on the Closing Date, except for (i) those representations and warranties other than the Seller Fundamental Representations that address
matters only as of a particular date, which representations and warranties shall have been true and correct in all material respects,
or in all respects, as applicable, and (ii) other than with respect to the Seller Fundamental Representations, any failures to be true
and correct that (without giving effect to any qualifications or limitations as to materiality or Seller Material Adverse Effect), individually
or in the aggregate, have not had and would not reasonably be expected to have a Seller Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller shall have delivered all of the items required to
be delivered by Seller pursuant to Section 2.15(b).

&nbsp;&nbsp;&nbsp;&nbsp;(d) No Seller Material Adverse Effect shall have occurred between
the Effective Date and the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer shall have raised the capital required, in its sole
discretion, to be able to fund the Purchase Price.

**Article IV. Representations and Warranties of the Seller**

In order to induce Buyer to enter into this Agreement and consummate the Transactions, the Seller, on behalf of itself and the other Seller Parties, and except as set forth in the Seller Disclosure Schedules as delivered by the Seller to Buyer on the Effective Date (the "Disclosure Schedules"), represent and warrant to Buyer as follows as of the Effective Date and as of the Closing Date:

Section 4.01 <u>Organization and Power</u>. Seller is a corporation, validly existing and in good standing under the laws of the State of Nevada. The Seller has all necessary power and authority to own, lease and operate its properties and conduct the Business as it is presently being conducted, to execute and deliver this Agreement and the other Transaction Documents to which the Seller is or will be a party and to consummate the Transactions and to perform each of its obligations under the Transaction Documents. The Seller is duly qualified or registered as a foreign company to transact business under the Laws of each jurisdiction where the character of its activities or the location of the properties owned or leased by it requires such qualification or registration, except where the failure of such qualification or registration would not reasonably be expected to be material to the Business. Each Real Property Seller and each Subsidiary is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with all necessary power and authority to conduct its business as it is currently being conducted and to own, lease or license, as applicable, its assets. Each Real Property Seller and each Subsidiary is duly qualified or registered as a foreign company to transact business under the Laws of each jurisdiction where the character of its activities or the location of properties owned or leased by it make such qualification or registration necessary, except where the failure to be so qualified standing would not reasonably be expected to be material to the business of such Subsidiary.

Section 4.02 <u>Due Authorization; Enforceability</u>. The execution and delivery of this Agreement and each of the Transaction Documents by the Seller Parties and the performance by the Seller Parties of the obligations hereunder and thereunder and the consummation of the Transactions have been duly and validly authorized by all necessary action of Seller Parties, subject to receipt of the Required Shareholder Approvals. This Agreement and each of the Transaction Documents to which each Seller Party is a party constitutes, or will constitute, when executed and delivered, a valid and binding agreement of the Seller Parties, enforceable against Seller Parties in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other laws relating to or affecting the enforcement of creditors' rights and remedies generally and the availability of specific performance or other equitable remedies.

Section 4.03 <u>No Conflict; Consents</u>. Neither the execution and delivery of this Agreement nor, subject to receipt of the Required Shareholder Approvals, the consummation of the Transactions, will (a) conflict with or result in any breach of any provision of the organizational documents of Seller Parties, (b) require any filing with, or the obtaining of any permit, authorization, consent or approval of, any Governmental Entity, (c) violate or conflict with, constitute a breach of or result in a default under, require the obtaining of consent or approval of any third parties thereto, or give rise to any right of termination, cancellation, acceleration or loss of benefit under, any of the terms, conditions or provisions of any Assumed Contract or (d) violate in any respect any Law, order, injunction or decree applicable to Seller Parties or any Assets.

Section 4.04 <u>Compliance with Laws</u>. The Seller Parties are (and have been at all times during the past five (5) years) in compliance with all applicable Laws in all material respects. No Seller has not been charged with and, nor has received any notice of being in violation of, or is not, to the Knowledge of the Seller, under any investigation with respect to, any applicable Law, agency agreement, penalty or fine entered by any Governmental Entity relating to the operations of the Business or to any of the Assets.

Section 4.05 <u>Title to and Sufficiency of the Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Seller Party has, and is transferring to Buyer good,
valid and marketable title to the Assets purported to be held by such Seller Party hereunder, free and clear of all Liens (other than
Permitted Liens) as of the Closing. There are no outstanding rights, options, agreements or commitments giving any Person any right to
require such Seller Party to sell, lease or otherwise dispose of any of the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Assets (i) constitute all of the assets, tangible and
intangible, of any nature whatsoever, necessary and sufficient to operate the Business in the manner presently operated by the Seller
Parties, and (ii) include all of the operating assets of the Business. No part of the Business is operated through any entity other than
those of the Seller Parties. The Assets are adequate for the purposes for which such assets are currently used or are held for use, conform
in all material respects to all Laws applicable thereto, and with respect to the tangible Assets, are in good repair and operating condition
(subject to normal wear and tear). There are no facts or conditions affecting the Assets which could, individually or in the aggregate,
interfere with the use or operation thereof as currently used or operated, or their adequacy for such use.

Section 4.06 <u>Litigation.</u> There are no (and in the past five (5) years there has not been any) claims, actions, suits, proceedings or investigations pending or, to the Knowledge of the Seller, threatened before any Governmental Entity, brought by or against any Seller Party or any of its officers, directors, employees, agents or Affiliates involving, affecting or relating to the Assets, the Business, or the Transactions, nor, to Knowledge of the Seller, does there exist any fact which might reasonably be expected to give rise to any such suit, proceeding, dispute or investigation. None of the items set forth in Section 4.06 of the Disclosure Schedules, if any, finally determined adversely, is reasonably likely, individually or in the aggregate, to have a material effect upon the Business. No Seller Party, nor any of the Assets are subject to any order, writ, judgment, award, injunction or decree of any Governmental Entity or arbitrator.

Section 4.07 <u>Contracts</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Correct and complete copies of all Assumed Contracts have
been made available to Buyer by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the Assumed Contracts are in full force and effect
and are legal, valid, binding and enforceable against the parties thereto in accordance with their terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws relating to or affecting the enforcement of creditors' rights and remedies
generally and the availability of specific performance or other equitable remedies. No breach, default or event of breach or default
by any Seller Party, or, to the Knowledge of the Seller, any other party thereto, exists under any of the Assumed Contracts and, to the
Knowledge of the Seller, no event has occurred or circumstance exists which, with the delivery of notice, the passage of time or both,
would constitute a breach or default under an Assumed Contract on the part of any Seller Party, nor, to the Knowledge of the Seller,
on the part of the other party thereto. No Seller Party is participating in any discussions or negotiations regarding modification of
or amendment to any Assumed Contract.

Section 4.08 <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) The Seller Parties collectively own and possesses all
right, title and interest in the Assigned Intellectual Property, free and clear of all Liens (other than Permitted Liens); (ii) there
are no judgments, consents, settlements, decrees, orders, injunctions, or rulings impairing the validity, use, ownership, or enforceability
of any of the Assigned Intellectual Property, or finding any of the Assigned Intellectual Property to be invalid or unenforceable; (iii)
there are no proceedings pending or, to the Knowledge of the Seller, threatened, that challenge or impair the validity, use, ownership,
or enforceability of the Assigned Intellectual Property; and (iv) the maintenance fees necessary to maintain the Assigned Intellectual
Property through the Effective Date have been paid, and through the Closing Date will have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Neither the use of the Assigned Intellectual Property
as currently used by the Seller Parties infringes, misappropriates or violates the rights of any Person in any Assigned Intellectual
Property, (ii) no Seller Party has received any written notice in the past five (5) years alleging any of the same, and (iii) to
the Knowledge of the Seller no actions or claims are threatened against any Seller Party challenging any of the same.

&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no claims, proceedings, actions, suits, hearings,
arbitrations, to the Knowledge of the Seller investigations, charges, complaints, demands or similar actions currently pending or, to
the Knowledge of the Seller, threatened, or that have been brought in the past five (5) years, by any Seller Party against any Person
alleging infringement, misappropriation, or violation of any Assigned Intellectual Property. To the Knowledge of the Seller, no Person
is currently infringing upon, misappropriating, or otherwise violating any of the Assigned Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The Assigned Intellectual Property includes all of the Intellectual
Property used in the conduct of the Business, and there are no other items of Intellectual Property that are material to the Business.

Section 4.09 <u>No Broker or Finder</u>. Seller has not engaged, and shall not have any liability for, any investment banker, finder, broker or sales agent or any other Person in connection with the origin, negotiation, execution, delivery or performance of any Transaction Document to which it is a party, or the Transactions.

**Article V. Representations and Warranties of Buyer**

In order to induce the Seller Parties to enter into this Agreement and consummate the Transactions, Buyer represents and warrants to the Seller Parties as follows, as of the Effective Date and as of the Closing Date:

Section 5.01 <u>Organization and Power of Buyer</u>. Buyer is duly organized, validly existing and in good standing under the laws of the state of its organization or domicile. Buyer has all necessary power and authority to own, lease and operate its properties and conduct its business as it is presently being conducted, to execute and deliver this Agreement and the other Transaction Documents to which Buyer is or will be a party and to consummate the Transactions and to perform each of its obligations under the Transaction Documents. Buyer is duly qualified or registered as a foreign company to transact business under the Laws of each jurisdiction where the character of its activities or the location of the properties owned or leased by it requires such qualification or registration, except where the failure of such qualification or registration would not reasonably be expected to be material to the operations of Buyer.

Section 5.02 <u>Due Authorization; Enforceability</u>. The execution and delivery of this Agreement and each of the Transaction Documents by Buyer and the performance by Buyer of the obligations hereunder and thereunder and the consummation of the Transactions have been duly and validly authorized by all necessary action of such Buyer's board of directors or equivalent governing body. This Agreement and each of the Transaction Documents to which Buyer is a party constitutes, or will constitute, when executed and delivered, a valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other laws relating to or affecting the enforcement of creditors' rights and remedies generally and the availability of specific performance or other equitable remedies, subject to the receipt of any approvals as referenced in Article III.

Section 5.03 <u>No Conflict; Consents</u>. The execution and delivery by Buyer of the Transaction Documents to which Buyer is a party and the consummation by Buyer of the Transactions do not and will not: (a) violate or result in a breach of any of the terms or provisions of any instrument, document or agreement to which Buyer is a party or by which Buyer is bound; (b) violate any order, writ, injunction, decree, judgment, ruling, law, rule or regulation of any federal, state, county, municipal or foreign court or governmental authority applicable to Buyer; or (c) violate or conflict with any provision of the organizational or other governing documents of Buyer, in each case, in a manner that would be reasonably likely to prohibit, restrict or delay the performance of the Transactions by Buyer.

Section 5.04 <u>No Broker or Finder</u>. Buyer has not engaged, and shall not have any liability for, any investment banker, finder, broker or sales agent or any other Person in connection with the origin, negotiation, execution, delivery or performance of any Transaction Document to which it is a party, or the Transactions.

**Article VI. Certain Covenants and Agreements**

Section 6.01 <u>Records</u>. The Seller (on behalf of itself and the other Seller Parties) and Buyer hereby agree to preserve for a period of five (5) years following the Closing, all records in their respective possession relating to any of the Assets, the Business or the Transactions. If any of the Parties hereto need access to such records in the possession of any other Party hereto for the preparation of federal and state tax returns, each such Party will allow representatives of each other Party access to such records for the purpose of obtaining information for use as aforesaid, and will permit such other Party to make extracts and copies thereof as may be reasonably necessary or convenient and, if required for such purpose, to have access to and possession of original documents. The Seller hereby agree to preserve originals of all Purchased Records for a period of seven (7) years following the Closing. If Buyer desires access to the Purchased Records, the Seller will allow representatives of Buyer access to such Purchased Records and will permit representatives of Buyer to make extracts and copies thereof as may be reasonably necessary or convenient and, if required, to have access to and possession of original documents, in each case at the cost of Buyer.

Section 6.02 <u>Notices of Certain Events.</u> In addition to any other notice required to be given by the terms of this Agreement, each of the Parties shall promptly notify each of the other Parties of:

&nbsp;&nbsp;&nbsp;&nbsp;(a) any notice or other communication from any Person alleging
that the consent of such Person is or may be required in connection with any of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;(b) any notice or other communication from any governmental or
regulatory agency or authority in connection with the Transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) any actions, suits, claims, investigations or proceedings
commenced or, to its knowledge threatened against, relating to or involving or otherwise affecting such Party that, if pending on the
date of this Agreement, would have been required to have been disclosed pursuant hereto or that relates to the consummation of the Transactions.

Section 6.03 <u>Confidentiality.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of this Agreement, and except as provided below,
"Confidential Information" shall mean the Due Diligence Materials and all other confidential, proprietary or trade secret
information, data or know-how which relates to the business, research, services, products, customers, suppliers, employees, or financial
information of Seller and its Subsidiaries and Affiliates, including, but not limited to, product or service specifications, designs,
drawings, prototypes, computer programs, models, business plans, marketing plans, financial data, financial statements, financial forecasts
and statistical information, in each case that is marked as confidential, proprietary or secret, or with an alternate legend or marking
indicating the confidentiality thereof or which, from the nature thereof should reasonably be expected to be confidential or proprietary,
in each case which is disclosed by Seller or on its behalf, after the date hereof, to Buyer either in writing, orally, by inspection
or in any other form or medium. Any technical or business information of a third person furnished or disclosed shall be deemed "Confidential
Information" of Seller unless otherwise specifically indicated in writing to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer agrees to use the Confidential Information only for
the purpose of consummating the Transactions (the "Purpose") and shall use reasonable care not to disclose Confidential Information
to any non-Affiliated third party, such care to be at least equal to the care exercised by Buyer as to its own Confidential Information,
which standard of care shall not be less than the current industry standard in effect as of the date of such receipt. Buyer agrees that
it shall make disclosure of any such Confidential Information only to its Affiliates and Representatives, to whom disclosure is reasonably
necessary for the Purpose. Buyer shall appropriately notify such Representatives that the disclosure is made in confidence and shall
be kept in confidence in accordance with this Agreement. Buyer shall be responsible for the failure of its Representatives to comply
with the terms of this Agreement. Without the prior consent of Seller, Buyer shall not remove any proprietary, copyright, trade secret
or other protective legend from the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer acknowledges that the Confidential Information disclosed
hereunder may constitute "Technical Data" and may be subject to the export laws and regulations of the United States. Buyer
agrees it will not knowingly export, directly or indirectly, any Confidential Information or any direct product incorporating any Confidential
Information, whether or not otherwise permitted under this Agreement, to any countries, agencies, groups or companies prohibited by the
United States Government unless proper authorization is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing herein shall be construed as granting to Buyer or
its Affiliates any right or license to use or practice any of the information defined herein as Confidential Information and which is
subject to this Agreement as well as any trade secrets, know-how, copyrights, inventions, patents or other intellectual property rights
now or hereafter owned or controlled by Seller Parties. Except as allowed by applicable law, Buyer shall not use any trade name, service
mark or trademark of any Seller Party or refer to such Seller Party in any promotional or sales activity or materials without first obtaining
the prior written consent of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations imposed in Section 6.03(b) shall not apply
to any Confidential Information that (i) was already in the possession of Buyer at the time of disclosure without restrictions on its
use or is independently developed by Buyer after the Effective Date, provided that the person or persons developing same have not used
such information received from Seller, or is rightfully obtained from a source other than from Seller; (ii) is in the public domain at
the time of disclosure or subsequently becomes available to the general public through no fault of Buyer; (iii) is obtained by Buyer
from a third person who is under no obligation of confidence to Seller; or (iv) is disclosed without restriction by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Standstill.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer acknowledges and agrees that Seller is a public company,
currently trading on the OTC Markets. Buyer agrees that, for as long as any information, including Confidential Information, continues
to meet the definition of Material Non-Public Information (as defined below) as set forth herein (the "Standstill Period"),
Buyer shall not, and Buyer shall ensure that none of its Representatives shall (1) buy or sell any securities or derivative securities
of or related to Seller, or any interest therein; or (2) undertake any actions or activities that would reasonably be expected to result
in a violation of the Securities Act, as amended, or the rules and regulations thereunder, or of the Exchange Act, including, without
limitation, Section 10(b) thereunder, or the rules and regulations thereunder, including, without limitation, Rule 10b-5 promulgated
thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Buyer also agrees during the Standstill Period not to request
Seller (or its directors, officers, employees or agents), directly or indirectly, to amend or waive any provision of this Section 6.03(f).

&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon termination of this Agreement for any reason or upon
request by Seller made at any time, all Confidential Information, together with any copies of same as may be authorized herein, shall
be returned to Seller, or destroyed and certified as such by an officer of Buyer, at Buyer's option. Buyer may retain one copy
of all written Confidential Information for its files for reference in the event of a dispute hereunder or as is necessary to comply
with its document retention policies.

&nbsp;&nbsp;&nbsp;&nbsp;(h) As between Seller and Buyer, the Confidential Information

this Agreement, "Derivative" shall mean: (i) for copyrightable or copyrighted material, any translation, abridgement, revision
or other form in which an existing work may be recast, transformed or adapted, and which constitutes a derivative work under the Copyright
laws of the United States; (ii) for patentable or patented material, any improvement thereon; and (iii) for material which is protected
by trade secret, any new material derived from such existing trade secret material, including new material which may be protected by
copyright, patent and/or trade secret.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer acknowledges and agrees that, with respect to any information
provided by Seller, its Affiliates, and their respective stockholders, members, partners, directors, managers, officers, employees, agents,
advisors, and other representatives, each expressly disclaims any and all liability for representations, expressed or implied, contained
in or omitted from such information, and nothing contained in such information is or shall be relied upon as a promise or representation
by any Seller, its Affiliates, or any of their respective stockholders, members, partners, directors, managers, officers, employees,
agents, advisors, or other representatives as to the past or future performance of Seller. Only those particular representations and
warranties made by the Seller herein, shall have any legal effect. Buyer further acknowledges and agrees that any such information provided
by any Seller does not purport to be all-inclusive or to necessarily contain all the information that Buyer may desire, and such information
may include certain statements, estimates and projections provided by Seller with respect to anticipated future performance ("forward
looking statements"). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate,
or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend,"
"forecast," "anticipate," "plan," "planning," "expect," "believe,"
"will likely," "should," "could," "would," "may" or words or expressions
of similar meaning. Such statements, estimates and projections reflect significant assumptions and subjective judgments by management
of Seller concerning anticipated results. These assumptions and judgments may or may not prove to be correct and there can be no assurance
that any projected result will be attainable or will be realized. As events and circumstances frequently do not occur as expected, there
will usually be differences between anticipated and actual future performance, and those variances may be material. None of Seller or
its Affiliates or any of their respective stockholders, members, partners, directors, managers, officers, employees, agents, advisors,
or other representatives makes any representations or warranties as to their accuracy or completeness except as specifically set forth
herein.

&nbsp;&nbsp;&nbsp;&nbsp;(j) If Buyer is requested or required (by oral questions, deposition,
interrogatories, subpoena, civil investigative demand or other similar non-criminal process) to disclose any Confidential Information
supplied to Buyer under this Agreement, Buyer will provide Seller with prompt written notice of such request(s) so that Seller may, at
Seller's option, (a) seek an appropriate protective order; (b) consult with Buyer on the advisability of taking steps to resist
or narrow such request or requirement; or (c) waive in writing Buyer's compliance with the provisions of this Agreement for the
sole purpose of complying with the request. If, in the absence of a protective order or the receipt of a written waiver hereunder, Buyer
is nonetheless, in the reasonable opinion of its counsel, compelled to disclose Confidential Information to any governmental tribunal
or else stand liable for contempt or suffer other censure or penalty, Buyer will cooperate with Seller at Seller's expense in any
attempt that Seller may make to obtain an order or other reliable assurance that confidential treatment will be provided by such tribunal
for all or designated portions of such Confidential Information disclosed by Seller.

Section 6.04 <u>Consents of Third Parties.</u> Each of the Parties will give any notices to third parties, and will use its commercially reasonable efforts to obtain any third-party consents, that the other Parties reasonably may request in connection with this Agreement. Each of the Parties will give any notices to, make any filings with, and use its commercially reasonable efforts to obtain any authorizations, consents, and approvals of governments and governmental agencies in connection with the matters in this Agreement.

Section 6.05 <u>Non-Assignable Contracts</u>. The Seller Parties will, during the remaining term of each Non-Assignable Contract, use commercially reasonable efforts to (a) obtain the consent of the applicable third party, (b) make the benefit of each such Non-Assignable Contracts available to Buyer following the Closing, and (c) enforce following the Closing, at the request of Buyer and at the expense and for the account of Buyer, any right of any Seller Party arising from such Non-Assignable Contracts against the other party or parties thereto (including the right to elect or terminate any such Non-Assignable Contract in accordance with the terms thereof). The Seller Parties will not take any action or suffer any omission that would limit or restrict or terminate the benefits to Buyer of any such Non-Assignable Contract. With respect to any such Non-Assignable Contract as to which the necessary approval or consent for the assignment or transfer to Buyer is obtained following the Closing, the applicable Seller Party will transfer, or cause to be transferred, such Non-Assignable Contract to Buyer by execution and delivery of an instrument of conveyance reasonably satisfactory to Buyer and the Seller within three (3) Business Days following receipt of such approval or consent.

Section 6.06 <u>Misdirected Payments</u>*.* If any Seller Party or any of its Affiliates receives any payment related to the Business or any Asset after the Closing Date, the Seller Party agrees to promptly remit (or cause to be promptly remitted) such funds to Buyer. If Buyer or any Affiliate of Buyer receives any payment related to any Excluded Asset after the Closing Date, Buyer agrees to promptly remit (or cause to be promptly remitted) such funds to the Seller.

Section 6.07 <u>Go-Shop.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;(a) From the Effective Date until the later of (i) the date of
receipt of the Required Shareholder Approvals and (ii) the expiration of the Due Diligence Period, (such later date, the "Go-Shop
Expiry Date"), Seller and the Committee shall have the right, directly or indirectly, through any Representative or otherwise,
to make, solicit, initiate or encourage inquiries from or submissions of proposals or offers from any Person or such Person's Representatives,
and to discuss and negotiate with, and furnish any non-public information relating to the Seller Parties to such Person or such Person's
Representatives, or afford access to the business, properties, assets, books, records or personnel, of the Seller Parties to such Person
or such Person's Representative, in each case which with respect to any transaction pursuant to which such Person may acquire the
Assets and/or consummate one or more transactions of the form and character as set forth herein, in whole or in part, or otherwise fund
the ongoing operations of the Seller Parties, with the intention of eliciting a proposal on terms that the Committee determines in good
faith to be more favorable to the Seller's shareholders than the transactions contemplated herein (a "Superior Proposal").

&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Seller receives a Superior Proposal
prior to the Go-Shop Expiry Date, the Seller may elect to, prior to the Go-Shop Expiry Date, and shall at the direction of the Committee,
terminate this Agreement by giving written notice to the Buyer. Upon the giving of such termination notice by Seller, this Agreement
shall immediately be terminated and shall thereafter be null and void and of no further force or effect, other than the provisions herein
which are specifically stated as surviving such termination.

Section 6.08 <u>No-Shop.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than as contemplated herein, including, without limitation
in Section 2.07, from the first date after the Go-Shop Expiry Date until the first to occur of the Closing or the termination of this
Agreement in accordance with its terms, Seller shall not, and Seller shall cause the Representatives of Seller not to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) solicit, initiate, entertain, knowingly encourage or knowingly
facilitate the making, submission or announcement of any Acquisition Proposal or Acquisition Inquiry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) furnish any non-public information regarding Seller to any
Person who has made an Acquisition Proposal or an Acquisition Inquiry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) engage in discussions or negotiations with any Person who
has made any Acquisition Proposal or Acquisition Inquiry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) approve, endorse or recommend any Acquisition Proposal or
Acquisition Inquiry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) withdraw or propose to withdraw its approval and recommendation
in favor of this Agreement and the Transactions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) enter into any letter of intent, agreement in principle, merger,
acquisition, purchase or joint venture agreement or other similar agreement for any Acquisition Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;(b) From the first date after the Go-Shop Expiry Date until the
first to occur of the Closing or the termination of this Agreement in accordance with its terms, Seller shall not (i) approve or recommend,
or propose publicly to approve or recommend, any Acquisition Proposal, (ii) take any action to make the provisions of any "fair
price", "moratorium", "control share acquisition", "business combination" or other similar
anti-takeover statute or regulation inapplicable to any transaction contemplated by an Acquisition Proposal related to Seller, or (iii)
approve or recommend, or propose publicly to approve or recommend, or cause or authorize Seller to enter into, any letter of intent,
agreement in principle, merger, acquisition, purchase or joint venture agreement or Contract or other instrument in respect of or relating
to an Acquisition Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller shall promptly, within 36 hours, advise Buyer orally
and in writing of any Acquisition Proposal or Acquisition Inquiry (including the identity of the Person making or submitting such Acquisition
Proposal or Acquisition Inquiry and the terms thereof and all material modifications thereto) that is made or submitted by any Person
during the period beginning on the first date after the Go-Shop Expiry Date until the Closing or the termination of this Agreement in
accordance with its terms. Seller shall keep Buyer reasonably informed on a current basis of any material developments in the status
and terms of any such Acquisition Proposal or Acquisition Inquiry (including whether such Acquisition Proposal or Acquisition Inquiry
has been withdrawn or rejected and any material change to the terms thereof).

&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless Seller terminates this Agreement at or prior to the
Go-Shop Expiry Date pursuant to the provisions of Section 6.07(b), following the Go-Shop Expiry Date Seller shall cease and cause to
be terminated any discussions with any Person that relate to any Acquisition Proposal or Acquisition Inquiry proposed on or prior to
the Go-Shop Expiry Date. Seller acknowledges and agrees that any actions taken by or at the direction of a Representative of Seller that,
if taken by Seller, would constitute a breach or violation of this Section 6.08 will be deemed to constitute a breach and violation of
this Section 6.08 by Seller.

Section 6.09 <u>Affirmative Covenants.</u> Other than as contemplated herein, including, without limitation in Section 2.06 and Section 2.07, between the Effective Date and the Closing Date or earlier termination of this Agreement in accordance with its terms, and except as otherwise contemplated by this Agreement or as Buyer shall otherwise consent in writing in advance, the Seller Parties shall, and shall cause each of their Representatives to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) conduct the business of Seller Parties only in the Ordinary
Course of Business and will use commercially reasonable best efforts to maintain and preserve the assets of Seller Parties, preserve
intact the current business organization of Seller Parties, and maintain the relations and goodwill with customers, creditors, employees,
agents, and others having business relationships with Seller Parties;

&nbsp;&nbsp;&nbsp;&nbsp;(b) furnish to Buyer true, correct and complete copies of all
records, documentation and other information in its possession as Buyer may reasonably request concerning Seller;

&nbsp;&nbsp;&nbsp;&nbsp;(c) cause all Contracts to which each Seller Party is a party
to be performed to the extent required to be performed as of the Closing Date in full;

&nbsp;&nbsp;&nbsp;&nbsp;(d) cooperate with Buyer with respect to all filings, permits
or consents that Buyer elects to make or obtain or is required by Law or other Persons to make or obtain in connection with the Transactions;
and

&nbsp;&nbsp;&nbsp;&nbsp;(e) provide notice to Buyer as promptly as reasonably practicable
upon becoming aware of any event or occurrence capable of causing a material impact on the business of Seller.

Section 6.10 <u>Negative Covenants.</u> Between the Effective Date and the Closing Date or earlier termination of this Agreement in accordance with its terms, and except as otherwise contemplated by this Agreement, including, without limitation in Section 2.06 and Section 2.07, or as Buyer shall otherwise consent in writing in advance, such consent not to be unreasonably withheld, conditioned or delayed, Seller Parties will not, and Seller Parties will cause each of their Representatives not to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;(a) take any action which could be reasonably expected to prevent
or materially delay the consummation of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;(b) enter into any new material line of business or commit to
any material capital expenditure outside of the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;(c) adopt a plan of complete or partial liquidation or resolutions
providing for or authorizing such liquidation or a dissolution, merger or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;(d) amend any of Organizational Documents of any Seller Party;

&nbsp;&nbsp;&nbsp;&nbsp;(e) sell, lease or otherwise transfer, or create or incur any
lien on the Assets other than in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;(f) create, incur, or assume any indebtedness or trade debt outside
of the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;(g) change any method of accounting or accounting practice or
accounting policy used by such Seller Party, other than such changes required by GAAP or requirements of Law;

&nbsp;&nbsp;&nbsp;&nbsp;(h) acquire any business or Person, by merger, consolidation,
or otherwise, in a single transaction or a series of related transactions;

&nbsp;&nbsp;&nbsp;&nbsp;(i) terminate, replace, or materially diminish the authority,
roles or responsibilities of, any executive level management personnel without cause; or

&nbsp;&nbsp;&nbsp;&nbsp;(j) agree to take any of the foregoing actions.

Section 6.11 <u>Effect of Knowledge.</u> The right to any remedy based upon any representations, warranties, covenants and obligations set forth in this Agreement shall not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or obligation. The waiver of any condition based upon the accuracy of any representation or warranty, or on the performance of or compliance with any covenant or obligation, shall not affect the right to any remedy based upon such representations, warranties, covenants or obligations.

Section 6.12 <u>Further Assurances.</u> Following the Effective Date and following the Closing, or until the earlier termination of this Agreement in accordance with its terms, each of the Parties shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the Transactions. In the event that the Closing occurs, the Buyer covenants and agrees that it shall fulfill all obligations pursuant to, or arising in connection with, the Assets, the Assumed Contracts, and the Assigned Intellectual Property arising and accruing from and after the Closing Date; and the Assumed Liabilities.

Section 6.13 <u>Buyer Diligence and Other Expenses.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the Effective Date and until the earlier to occur
of the Closing or the termination of this Agreement, the Seller shall immediately reimburse the Buyer for Buyer's reasonable out
of pocket expenses incurred by the Buyer in its due diligence review as set forth in Section 2.11 (including but not limited to: Environmental
Reports, Property Inspections, Appraisals, Geotechnical Reports, and ALTA Surveys) and the consummation of the Transactions, subject
to the conditions that (i) such expenses shall not be incurred or become reimbursable until after the receipt of the Required Shareholder
Approvals; (ii) such reimbursable expenses shall not include the legal fees and costs of the Buyer, which shall be the responsibility
of the Buyer (other than as set forth in Section 6.13(b)); (iii) the Committee must provide pre-approval for any expense exceeding
$5,000, such consent not to be unreasonably withheld, conditioned or delayed; and (iv) the Buyer will provide monthly updates to the
Committee with an itemized breakdown of all reimbursable expenses incurred to such date, including any requested supporting documentation,
to ensure transparency and accountability (all such expenses that meet such criteria, the "Buyer Diligence Expenses"). Any
costs or expenses not meeting the conditions above shall not be subject to reimbursement hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Seller terminates this Agreement for
any reason other than as set forth in and pursuant to Section 7.01(d), then, upon such termination, in addition to the costs and expenses
set forth in Section 6.13(a), (i) notwithstanding the provisions of clause (i) of Section 6.13(a), Seller shall reimburse Buyer for Buyer's
costs and expenses incurred following the Effective Date related to the Transactions, and not only following the receipt of the Required
Shareholder Approvals; and (ii) notwithstanding the provisions of clause (ii) of Section 6.13(a), Seller shall reimburse Buyer for Buyer's
reasonable out-of-pocket legal fees and costs related to the Transactions; and provided in each case that the Seller has complied with
the requirements of clause (iii) and clause (iv) of Section 6.13(a) with respect to the additional costs and expenses referenced in clause
(i) and clause (ii) of this Section 6.13(b).

&nbsp;&nbsp;&nbsp;&nbsp;(c) Other than as contemplated above and other than as specifically
set forth herein, each of the Buyer, on the one hand, and Seller, on the other hand, will be responsible for and bear all of their own
costs and expenses incurred at any time in connection with pursuing or consummating the Transactions.

Section 6.14 <u>Bulk Sales; Certain Taxes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties hereby waive compliance with the provisions of
any bulk sales, bulk transfer, or similar Laws (including any Laws related to Taxes, or requirements relating to bulk sales, bulk transfers,
or requiring similar notification, certification or withholding requirements, in respect of a sale or transfer of assets, which laws
are applicable to the sale of the Assets, the Business or to any Seller Party) of any jurisdiction that may otherwise be applicable with
respect to the sale of any or all of the Assets or the Business to Buyer. Any liabilities arising out of the failure of the parties to
comply with the requirements and provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction which would not otherwise
constitute Assumed Liabilities shall be treated as Excluded Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;(b) All sales, use, registration, and other such Taxes and fees
(including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents, if any ("Transfer
Taxes"), shall be borne and paid by Seller when due. Seller shall, at its own expense, timely file any tax return or other document
with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller (on behalf of itself and all other Seller Parties)
and Buyer shall each be responsible for its pro rata share of the current year's real property, personal property, ad valorem,
and similar Taxes with respect to the purchased Assets and Business, which shall be prorated on a calendar year basis as of the Closing
Date. Seller shall pay to the applicable Governmental Entity directly when due, or to Buyer at least five (5) Business Days prior to
when due, any Taxes that are the responsibility of Seller pursuant to this Section 6.14.

Section 6.15 <u>Survival</u>. The representations and warranties of the Parties contained herein automatically expire as of the Closing and shall not survive the Closing, and no claim related thereto may be brought following the Closing. All covenants and agreements of the Parties contained herein, including Section 6.03, shall survive the Closing for a period of five (5) years or for the period specified therein.

**Article VII. Termination**

Section 7.01 <u>Termination.</u> This Agreement may be terminated and the transactions contemplated herein may be abandoned at any time prior to the Closing as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) By the mutual agreement of the Parties, each in their sole
discretion;

&nbsp;&nbsp;&nbsp;&nbsp;(b) by the Seller or by Buyer if there shall be in effect a final
non-appealable order, judgment, injunction or decree entered by or with any Governmental Entity restraining, enjoining or otherwise prohibiting
the consummation of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;(c) by Buyer if there shall have been a breach in any material
respect of any representation, warranty, covenant or agreement on the part of any Seller Party set forth in this Agreement and such breach
has not been cured within ten (10) days after receipt of notice of such breach by the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;(d) by the Seller if there shall have been a breach in any material
respect of any representation, warranty, covenant or agreement on the part of Buyer set forth in this Agreement and such breach has not
been cured within ten (10) days after receipt of notice of such breach by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;(e) By any Party in the event that the Closing of the transactions
contemplated hereunder has not occurred by September 30, 2026, provided however, that the Parties may extend this date by 90-days if
the transaction requires for time due to administrative reasons (the "Outside Closing Date"), provided, however, the right
to terminate this Agreement under this Section 7.01(e) shall not be available to a Party if the breach or violation by such Party or
its Affiliates of any representation, warranty, covenant or obligation under this Agreement was the cause of, or resulted in, the failure
of the Closing to occur on or before the Outside Date;

&nbsp;&nbsp;&nbsp;&nbsp;(f) by written notice by Buyer to the Seller, if there shall
have been a Seller Material Adverse Effect following the Effective Date which is uncured for at least twenty (20) Business Days after
written notice of such Seller Material Adverse Effect is provided by Buyer to the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;(g) By Buyer, pursuant to the provisions of Section 2.11; or

&nbsp;&nbsp;&nbsp;&nbsp;(h) By the Seller, pursuant to the provisions of Section 6.07(b).

Section 7.02 <u>Effect of Termination.</u> In the event of termination of this Agreement pursuant to this Article VII, this Agreement (other than Section 6.03, this Article VII and Article VIII, which shall each survive and shall remain in full force and effect) shall become void and of no further force or effect with no liability on the part of any Party; provided, however, that any such termination shall not relieve any Party from liability for actual damages to the other Parties resulting from a material breach of this Agreement by such Party.

Section 7.03 <u>Default by Buyer.</u> If Buyer fails to perform any of its obligations under this Agreement, the Seller shall be entitled to bring an action for specific performance, damages or a combination of specific performance and damages. No remedy conferred upon Seller is intended to be exclusive of any other remedy provided for in this Agreement, and each remedy provided to the Seller in this Agreement will be cumulative and in addition to every other remedy available to the Seller under this Agreement. No single or partial exercise of any remedy will preclude any other or further exercise thereof.

Section 7.04 <u>Default by Seller</u>. If any Seller Party fails to perform any of its obligations under this Agreement, Buyer shall be entitled to bring an action for specific performance, damages or a combination of specific performance and damages. No remedy conferred upon Buyer is intended to be exclusive of any other remedy provided for in this Agreement, and each remedy provided to Buyer in this Agreement will be cumulative and in addition to every other remedy available to Buyer under this Agreement. No single or partial exercise of any remedy will preclude any other or further exercise thereof.

**Article VIII. Miscellaneous**

Section 8.01 <u>Notices.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Any notice or other communications required or permitted
hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by email, overnight courier or registered
mail or certified mail, postage prepaid, addressed as follows:

If to any Seller Party, to:

Zoned Properties, Inc.

Attn: Cole Stevens

8360 E. Raintree Drive, #230

Scottsdale, AZ 85260

Email: cstevens@allaccesscapitalmarkets.com

With a copy, which shall not constitute notice, to:

Anthony, Linder & Cacomanolis, PLLC

Attn: John Cacomanolis

1700 Palm Beach Lakes Blvd., Suite 820

West Palm Beach, FL 33401

Email: JCacomanolis@alclaw.com

if to Buyer, to:

BPB Partners, LLC

Attn: Bryan McLaren

8360 E. Raintree Drive, #230

Scottsdale, AZ 85260

Email:

With a copy, which shall not constitute notice, to:

Weiss Brown PLLC

6262 North Scottsdale Road, Suite 340

Scottsdale, AZ 85250

Attention: Brian J. Schulman, Esq. and R. Jared Jensen, Esq.

Email: brian.schulman@weissbrown.com; jared.jensen@weissbrown.com

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Party may change its address for notices hereunder upon
notice to each other Party in the manner for giving notices hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Any notice hereunder shall be deemed to have been given (i)
upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted
by email with return receipt requested and received and (iv) three (3) days after mailing, if sent by registered or certified mail.

Section 8.02 <u>Governing Law.</u> This Agreement, and all matters based upon, arising out of or relating in any way to the Transactions, including, without limitation, tort claims, statutory claims and contract claims, shall be interpreted, construed, governed and enforced under and in accordance with the substantive and procedural Laws of the State of Nevada in each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements performed wholly within the State of Nevada.

Section 8.03 <u>Jurisdiction.</u> SUBJECT TO THE PROVISIONS OF Section 2.09(d) AND Section 8.05, ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN, AND ANY ACTION FOR ENFORCEMENT OF ANY ARBITRAL AWARD PURSUANT TO Section 8.05 SHALL BE INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF ARIZONA, IN EACH CASE LOCATED IN MARICOPA COUNTY, ARIZONA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY'S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

Section 8.04 <u>Waiver of Jury Trial.</u> EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 8.04. Each of the Parties acknowledge that each has been represented in connection with the signing of the waiver above by independent legal counsel selected by the respective Party and that such Party has discussed the legal consequences and import of this waiver with legal counsel. Each of the Parties further acknowledge that each has read and understands the meaning of such waiver and grants this waiver knowingly, voluntarily, without duress and only after consideration of the consequences of this waiver with legal counsel.

Section 8.05 <u>Arbitration.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 2.09(d) and Section 8.06, any dispute
or claim arising out of or relating to this Agreement or the breach hereof involving only a claim as between the Parties will be settled
by arbitration in Scottsdale, Arizona. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules
and Procedures and in accordance with the Expedited Procedures in those Rules. The Parties will jointly select an arbitrator to conduct
the arbitration. If the Parties are unable to mutually agree upon such an arbitrator within ten Business Days of commencement of efforts
to do so, then each Party will select an arbitrator within an additional five Business Days and within five Business Days after their
selection, those two arbitrators will select a third arbitrator, which third arbitrator will conduct the arbitration (hereinafter referred
to as the "Arbitrator"). The Arbitrator must be an individual experienced in corporate law and the law of mergers and acquisitions,
must have experience in dealing with matters relating to software, intellectual property and information technology. The Arbitrator cannot
be an individual who ever has been an affiliate of or attorney for any Party or for any of their respective affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any provisional remedy that would be available to the Parties
from a court of law will be available from the Arbitrator pending arbitration. Any Party may apply to any court of competent jurisdiction
and seek injunctive relief to maintain the status quo until the arbitration award is rendered or the dispute is otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The Arbitrator's award will be made in writing and
will make written findings of fact and conclusions of law. The Arbitrator will have no authority to award punitive or other damages not
measured by the prevailing Party's actual damages and may not, in any event, make any ruling, finding, or award that does not conform
to the terms and conditions of this Agreement. Judgment on any arbitration award may be entered by the Arbitrator or by any Party in
any court having jurisdiction thereof. No Party, nor the Arbitrator, may disclose the existence, content, or results of any arbitration
or arbitration award without the prior written consent of all Parties except to the extent necessary to enter and enforce a judgment
based upon such an award or as required by applicable law or the rules and regulations of any securities market or securities exchange
on which the securities of the Seller are listed or available for trading.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The award of the Arbitrator will be final, binding and not
subject to appeal. Each Party hereby waives the benefit of any applicable Law which would permit it to appeal the decision of the Arbitrator
to any court or other authority.

&nbsp;&nbsp;&nbsp;&nbsp;(e) All fees and expenses of the arbitration will be borne by
the Parties equally. However, each Party will bear the expense of its own counsel, experts, witnesses, and preparation and presentation
of proofs. Notwithstanding the foregoing, the Arbitrator will be entitled to tax and assess costs against any Party (including the fees
of attorneys and arbitrators) to the extent that the Arbitrator determines.

Section 8.06 <u>Specific Performance.</u> The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at Laws or in equity.

Section 8.07 <u>Limitation on Damages.</u> **In no event will any Party be liable to the other Party under or in connection with this Agreement or in connection with the Transactions for special, general, indirect or consequential damages, including damages for lost profits or lost opportunity, even if the Party sought to be held liable has been advised of the possibility of such damages.**

Section 8.08 <u>Attorneys' Fees.</u> In the event that any Party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including reasonable attorneys' fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

Section 8.09 <u>Public Announcements and Filings.</u> Unless required by applicable Laws or regulatory authority, or the rules and regulations of any securities market on which the securities of Seller are listed or available for trading, none of the Parties will issue any report, statement or press release to the general public, trade or trade press, or to any third party (other than its advisors and representatives in connection with Transactions) or file any document, relating to this Agreement and Transactions, except as may be mutually agreed by the Parties. Copies of any such filings, public announcements or disclosures, including any announcements or disclosures mandated by Laws or regulatory authorities, shall be delivered to each Party prior to the release thereof.

Section 8.10 <u>Third-Party Beneficiaries.</u> This Agreement is strictly between the Parties and, except as specifically provided herein, no director, officer, stockholder, member, employee, agent, independent contractor or any other Person shall be deemed to be a third-Party beneficiary of this Agreement.

Section 8.11 <u>Expenses.</u> Except as specifically set forth herein, including in Section 6.13, whether or not the Transactions are consummated, each of the Parties will bear their own respective expenses, including without limitation the fees and expenses of its legal, accounting and financial advisors, incurred in connection with the Transactions.

Section 8.12 <u>Entire Agreement.</u> This Agreement and the other Transaction Documents represent the entire agreement between the Parties relating to the subject matter thereof and supersede all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the Transactions be consummated as originally contemplated to the greatest extent possible.

Section 8.13 <u>Construction.</u> The table of contents and headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.

Section 8.14 <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be amended, modified, superseded, terminated
or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument
executed by both of the Parties, provided that any of the conditions in Article III may be waived by the Party for whose benefit such
condition exists.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Every right and remedy provided herein shall be cumulative
with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no
waiver by any Party of the performance of any obligation by another Party shall be construed as a waiver of the same or any other default
then, theretofore, or thereafter occurring or existing.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither any failure or delay in exercising any right or remedy
hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any
Party from enforcing any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a Party waives or
otherwise affects any obligation of that Party or impairs any right of the Party giving such notice or making such demand, including
any right to take any action without notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with
respect to a breach of this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party
whole with respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

Section 8.15 <u>Commercially Reasonable Efforts.</u> Subject to the terms and conditions herein provided, each Party shall use its commercially reasonable efforts to perform or fulfill all conditions and obligations to be performed or fulfilled by it under this Agreement so that Transactions shall be consummated as soon as practicable. Each Party also agrees that it shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws and regulations to consummate and make effective this Agreement and the Transactions.

Section 8.16 <u>Successors and Assigns.</u> This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. Other than as specifically set forth herein, no Party shall have any power or any right to assign or transfer, in whole or in part, this Agreement, or any of its rights or any of its obligations hereunder, including, without limitation, any right to pursue any claim for damages pursuant to this Agreement or the transactions contemplated herein, or to pursue any claim for any breach or default of this Agreement, or any right arising from the purported assignor's due performance of its obligations hereunder, including by merger, consolidation, operation of law, or otherwise, without the prior written consent of the other Parties and any such purported assignment in contravention of the provisions herein shall be null and void and of no force or effect. Notwithstanding the foregoing, the Parties acknowledge and agree that, prior to the Closing, the Buyer may assign this Agreement to an entity controlled by the same personnel who control the Buyer as off the Effective Date, with the prior written approval of the Company, such approval not to be unreasonably withheld, conditioned or delayed, and in such event the Parties will reasonable cooperate to prepare and execute an amendment to this Agreement, and to make such modifications to the other Transaction Documents, as required to replace the Buyer as named herein and therein with such assignee. Other than as specifically set forth herein, nothing in this Agreement shall confer on any Person other than the Parties, and their respective permitted successors and permitted assigns, any rights, remedies, obligations, or Liabilities under or by reason of this Agreement.

Section 8.17 <u>Counterparts.</u> This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

*[Signature Pages Follow]*

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| SELLER | SELLER |
| **Zoned Properties, Inc.** | **Zoned Properties, Inc.** |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |

---

---

| | |
|:---|:---|
| REAL PROPERTY SELLERS | REAL PROPERTY SELLERS |
| **Zoned Arizona Properties, LLC** | **Zoned Arizona Properties, LLC** |
| By: Zoned Properties, Inc., its sole member | By: Zoned Properties, Inc., its sole member |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |

---

(*Signatures continued on next page.*)

---

| | |
|:---|:---|
| **ZP RE AZ Dysart, LLC** | **ZP RE AZ Dysart, LLC** |
| By: Zoned Properties, Inc., its sole member | By: Zoned Properties, Inc., its sole member |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc |

---

---

| | |
|:---|:---|
| **ZP RE Holdings, LLC** | **ZP RE Holdings, LLC** |
| By: Zoned Properties, Inc., its sole member | By: Zoned Properties, Inc., its sole member |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc |

---

(*Signatures continued on next page.*)

---

| | |
|:---|:---|
| BUYER | BUYER |
| **BPB Partners, LLC** | **BPB Partners, LLC** |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Administrative Member |
| By: | /s/ Berekk Blackwell |
| Name: | Berekk Blackwell |
| Title: | Member |
| By: | /s/ Patrick Moroney |
| Name: | Patrick Moroney |
| Title: | Member |

---

## Exhibit 10.2

**Exhibit 10.2**

**Material Event and Amendment Agreement**

*[Bryan McLaren]*

This Material Event and Amendment Agreement (this "Agreement"), dated as of January 15, 2026 (the "Effective Date"), is entered into by and between (i) Zoned Properties, Inc., a Nevada corporation ("Zoned"); and (ii) Bryan McLaren ("Mr. McLaren"). Zoned and Mr. McLaren may be referred to herein individually as a "Party" and collectively as the "Parties".

WHEREAS, Mr. McLaren is an employee and/or officer and/or director of Zoned and/or one or more of its Affiliates (as defined below) or subsidiaries (collectively, the "Zoned Entities"), and the Parties desire to enter into this Agreement in connection with certain material transactions currently being contemplated by Zoned;

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>Definitions</u>. For purposes herein, the following terms shall have the following
meanings:

&nbsp;&nbsp;&nbsp;&nbsp;1.1. "MBO" means the transactions as contemplated
in the Asset Purchase Agreement, dated as of the Effective Date, entered into between Zoned, Zoned Arizona Properties, LLC, an Arizona
limited liability company, ZP RE AZ Dysart, LLC, an Arizona limited liability company, ZP RE Holdings, LLC, an Arizona limited liability
company and BPB Partners, LLC, an Arizona limited liability company, as the same may be amended from time to time (the "APA").

&nbsp;&nbsp;&nbsp;&nbsp;1.2. "Change of Control" means (i) any event wherein
the beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
of securities representing more than 50% of the combined voting power of Zoned is acquired by any "person" as defined in
sections 13(d) and 14(d) of the Exchange Act (other than Zoned, any subsidiary of Zoned, or any trustee or other fiduciary holding securities
under an employee benefit plan of Zoned), (ii) the merger or consolidation of Zoned with or into another corporation where the shareholders
of Zoned, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own
(as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more
of the combined voting power of the securities of the corporation issuing cash or securities in the consolidation or merger (or of its
ultimate parent corporation, if any) in substantially the same proportion as their ownership of Zoned immediately prior to such merger
or consolidation, or (iii) the sale or other disposition of all or substantially all of Zoned's assets to an entity, other than
a sale or disposition by Zoned of all or substantially all of Zoned's assets to an entity, at least 50% of the combined voting
power of the voting securities of which are owned directly or indirectly by shareholders of Zoned, immediately prior to the sale or disposition,
in substantially the same proportion as their ownership of Zoned immediately prior to such sale or disposition.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. "Material Event" means the consummation of either
the MBO or a Change of Control.

2. <u>Employment Agreement; Actions at Time of Material Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Employment Agreement</u>. The Parties acknowledge and
agree that Zoned and Mr. McLaren are the parties to that certain Employment Agreement, dated as of May 23, 2018 (the "Employment
Agreement") and the Golden Parachute Agreement, dated as of the same date, as attached to the Employment Agreement as Exhibit A
thereto (the "Golden Parachute Agreement"). Effective only following the occurrence of a Material Event (for clarity: in
the event there is no Material Event, then any amendments listed herein shall be considered null and void), pursuant to Section 14 of
the Employment Agreement, the Employment Agreement and the Golden Parachute Agreement will be hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. The definition of "Change in Control", "change
in control" and similar terms in the Golden Parachute Agreement, for all purposes of the Golden Parachute Agreement and the Employment
Agreement shall be deemed replaced with the definition of "Material Event" as set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. Section 4(iii)(A) of the Golden Parachute Agreement is hereby amended and restated
in its entirety to provide as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The issuance to Employee of 250,000 shares of common stock, par value $0.001 per share (the "Common Stock") of the Company (the "Shares").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3. Section 4(iii)(B) of the Golden Parachute Agreement is hereby amended and restated
in its entirety to provide as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The payment to Employee of a cash payment in an amount equal to (i) one year of Employee's base salary as in place at the time of the Material Event; plus (ii) an amount equal to 35% of the fair market value of the Shares as of the date of the Material Event, which fair market value shall be determined based on the closing trading price of the Common Stock on the OTC Markets or the primary securities trading market or securities exchange on which the Common Stock is available for trading as of the Material Event, as reasonably determined by the Board of Directors of Zoned (such total cash payment amount, the "Cash Payment").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4. Section 4(iii)(C) of the Golden Parachute Agreement is hereby amended and restated
in its entirety to provide as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The number of shares of Common Stock comprising the "Shares" shall be subject to equitable adjustments for any forward stock split or reverse stock split of the Common Stock occurring following January 15, 2026 and prior to the issuance of the Shares. By way of example and not limitation in the event of a 1-for-2 reverse stock split of the Common Stock occurring after January 15, 2026, in which each two shares of Common Stock are combined into one share of Common Stock, the number of Shares shall be reduced by 50%, and in the event of two-for-one forward stock split of the Common Stock occurring after January 15, 2026, in which each share of Common Stock is split into two shares of Common Stock the number of Shares shall be increased by 100%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5. Section 4(iii)(D) of the Golden Parachute Agreement is hereby amended and restated
in its entirety to provide as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) In the event that, prior to the issuance of any Shares, the Common Stock is converted into another class of securities of the Company or any successor entity to the Company, whether by way of merger, reorganization, re-incorporation or otherwise (the "Replacement Securities"), any reference herein to the Common Stock (whether standing alone or as part of another defined term herein) shall be deemed a reference to such Replacement Securities. In the event that, prior to the issuance of any Shares, the Company completes a merger or share exchange with another entity wherein all of the issued and outstanding shares of Common Stock are exchanged for equity interests in the other entity (the "Exchanged Securities"), any reference herein to the Common Stock (whether standing alone or as part of another defined term herein) shall be deemed a reference to such Exchanged Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.6. Other than as amended herein, the Employment Agreement and the Golden Parachute
Agreement shall remain in full force and effect until terminated in accordance with their respective terms. Any reference in the Employment
Agreement to the "Agreement" shall now be deemed a reference to the Employment Agreement as amended by this Agreement, and
any reference in the Golden Parachute Agreement to the "Agreement" shall now be deemed a reference to the Golden Parachute
Agreement as amended by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Severance Agreement</u>. In the event of the cessation
of Mr. McLaren's engagement by Zoned for any reason following the occurrence of a Material Event, and as a condition of Mr. McLaren's
receipt of any payments pursuant to the Golden Parachute Payment, as amended herein and if applicable pursuant to the terms of the Golden
Parachute Payment, as amended herein, and effective as of the date of such cessation of engagement, Mr. McLaren shall execute and deliver
to Zoned the Severance Agreement in the form as attached hereto as Exhibit 1 (the "Severance Agreement"), and Zoned shall
countersign and return the Severance Agreement to Mr. McLaren. Upon execution of the Severance Agreement, this Agreement, the Severance
Agreement and the Employment Agreement shall be read, interpreted and enforced together as the joint and combined agreements of the Parties.
Notwithstanding anything to the contrary in the Employment Agreement or the Golden Parachute Agreement, the Parties acknowledge and agree
that, if the issuance of the Shares and the payment of the Cash Payment are required to be made pursuant to the terms of the Golden Parachute
Agreement, as amended herein, the timing of the issuance of the Shares and the payment of the Cash Payment shall be paid pursuant to
the provisions of the Severance Agreement, if and when executed, and the Employment Agreement and the Golden Parachute Agreement are
hereby deemed amended as required to give effect to the provisions of this sentence.

3. <u>Representations and Warranties of the Parties</u>. Each Party
(the "Representing Party") represents and warrants to the other Party as set forth in this Section ‎3.

&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Due Authority; No Violation</u>.
Representing Party h as all requisite rights and authority or the capacity
to execute, deliver and perform its obligations under this Agreement, and the Severance Agreement, if and when executed. The execution
and delivery of this Agreement and the Severance Agreement, if and when executed, and the consummation of the transactions contemplated hereby and thereby, have been duly and validly authorized by such Representing
Party, and no other proceedings are necessary to authorize the execution, delivery and performance of this Agreement, and
the Severance Agreement, if and when executed, or the transactions contemplated hereby or thereby on the part of such Representing
Party. No approval, authority, or consent of or filing by such Representing Party with, or notification to, any governmental authority,
is necessary to authorize the execution and delivery of this Agreement, and
the Severance Agreement, if and when executed, or the consummation of the transactions contemplated herein and therein.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Enforceability</u>. This Agreement, and the Severance Agreement, if and when executed, have
each been duly executed and delivered by such Representing Party and, assuming that this Agreement, and
the Severance Agreement, if and when executed, each constitutes the legal, valid and binding obligation of each other Party, constitutes
the legal, valid, and binding obligation of such Representing Party, enforceable against such Representing Party in accordance with its
terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other similar laws of general application affecting enforcement of creditors' rights generally.

4. <u>Notices</u>. Any notice or other communications required
or permitted hereunder, or pursuant to the Severance Agreement, if and when
executed, shall be in writing and shall be sufficiently given if personally delivered to it or sent by email, overnight courier
or registered mail or certified mail, postage prepaid, addressed as set forth below. Any Party may change its address for notices hereunder
upon notice to each other Party in the manner for giving notices hereunder. Any notice hereunder shall be deemed to have been given (i)
upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted
by email with return receipt requested and received and (iv) three (3) days after mailing, if sent by registered or certified mail. Subject
to the foregoing, notices shall be sent as follows:

If to Zoned, to:

Zoned Properties, Inc.

Attn: Bryan McLaren

8360 E. Raintree Drive, #230

Scottsdale, AZ 85260

Email:

If to Mr. McLaren, to:

Bryan McLaren

8360 E. Raintree Dr. #230

Scottsdale, AZ 85260

Email:

5. <u>Governing Law.</u> This Agreement, and all matters based
upon, arising out of or relating in any way to the transactions completed herein, including, without limitation, tort claims, statutory
claims and contract claims, shall be interpreted, construed, governed and enforced under and in accordance with the substantive and procedural
laws of the State of Nevada in each case as in effect from time to time and as the same may be amended from time to time, and as applied
to agreements performed wholly within the State of Nevada.

6. <u>Jurisdiction</u>. ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, or the Severance Agreement, if and when executed, OR THE
TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN SHALL BE INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS
OF THE STATE OF ARIZONA, IN EACH CASE LOCATED IN MARICOPA COUNTY, ARIZONA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO
SUCH PARTY'S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN
ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING
IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

7. <u>Waiver of Jury Trial</u>. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT or the Severance Agreement, if and when executed, OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED
ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED , EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION ‎6. Each of the Parties acknowledge that
each has been represented in connection with the signing of the waiver above by independent legal counsel selected by the respective
Party and that such Party has discussed the legal consequences and import of this waiver with legal counsel. Each of the Parties further
acknowledge that each has read and understands the meaning of such waiver and grants this waiver knowingly, voluntarily, without duress
and only after consideration of the consequences of this waiver with legal counsel .

8. <u>Specific Performance</u>. The Parties agree that irreparable
damage would occur if any provision of this Agreement, or the Severance Agreement, if and when executed, were not performed in accordance
with the terms hereof and that the Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy
to which they are entitled at law or in equity.

9. <u>Limitation on Damages</u>. **In no event will any Party be liable to the other Party under or in connection with this Agreement or the Severance Agreement, if and when executed, or in connection with the transactions contemplated herein for special, general, indirect or consequential damages, including damages for lost profits or lost opportunity, even if the Party sought to be held liable has been advised of the possibility of such damages.** 

10. <u>Attorneys' Fees</u>. In the event that any Party institutes
any action or suit to enforce this Agreement, or the Severance Agreement, if and when executed, or to secure relief from any default
hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including reasonable attorneys'
fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

11. <u>Public Announcements and Filings</u>. Unless required by
applicable laws or regulatory authority, or the rules and regulations of any securities market on which the securities of Zoned are listed
or available for trading, none of the Parties will issue any report, statement or press release to the general public, trade or trade
press, or to any third party (other than its advisors and representatives in connection with transactions contemplated herein) or file
any document, relating to this Agreement, or the Severance Agreement, if and when executed, and the transactions contemplated herein
or therein, except as may be mutually agreed by the Parties. Copies of any such filings, public announcements or disclosures, including
any announcements or disclosures mandated by laws or regulatory authorities, shall be delivered to each Party prior to the release thereof.

12. <u>Third-Party Beneficiaries</u>. This Agreement, and the Severance
Agreement, if and when executed, are strictly between the Parties and, except as specifically provided herein, no director, officer,
stockholder, member, employee, agent, independent contractor or any other Person shall be deemed to be a third-party beneficiary of this
Agreement or the Severance Agreement, if and when executed,.

13. <u>Expenses</u>. Except as specifically set forth herein or
in the Severance Agreement, each of the Parties will bear their own respective expenses, including without limitation the fees and expenses
of its legal, accounting and financial advisors, incurred in connection with the transactions contemplated herein.

14. <u>Entire Agreement</u>. This Agreement, the Employment Agreement,
and the Severance Agreement, if and when executed, represent the entire agreement between the Parties relating to the subject matter
thereof and supersede all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter. If
any term or provision of this Agreement or the Severance Agreement, if and when executed, is invalid, illegal or unenforceable in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or the Severance
Agreement, if and when executed, or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination
that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement
and the Severance Agreement, if and when executed, so as to effect the original intent of the Parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated herein be consummated as originally contemplated to the greatest extent
possible. In the event of any conflict between the terms and conditions of the Employment Agreement and the Golden Parachute Agreement
on the one hand, and this Agreement and the Severance Agreement on the other hand, the terms and conditions of this Agreement and the
Severance Agreement shall control.

15. <u>Construction</u>. The headings contained in this Agreement
are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.

16. <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;16.1. This Agreement may be amended, modified, superseded, terminated
or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument
executed by both of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;16.2. Every right and remedy provided herein shall be cumulative
with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no
waiver by any Party of the performance of any obligation by another Party shall be construed as a waiver of the same or any other default
then, theretofore, or thereafter occurring or existing.

&nbsp;&nbsp;&nbsp;&nbsp;16.3. Neither any failure or delay in exercising any right or remedy
hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any
Party from enforcing any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a Party waives or
otherwise affects any obligation of that Party or impairs any right of the Party giving such notice or making such demand, including
any right to take any action without notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with
respect to a breach of this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party
whole with respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

17. <u>Successors and Assigns</u>. This Agreement and the Severance
Agreement, if and when executed, shall be binding upon and shall inure to the benefit of the Parties and their respective successors
and permitted assigns. No Party shall have any power or any right to assign or transfer, in whole or in part, this Agreement, or the
Severance Agreement, if and when executed, or any of its rights or any of its obligations hereunder or thereunder, including, without
limitation, any right to pursue any claim for damages pursuant to this Agreement, or the Severance Agreement, if and when executed, or
the transactions contemplated herein or therein, or to pursue any claim for any breach or default of this Agreement, or the Severance
Agreement, if and when executed, or any right arising from the purported assignor's due performance of its obligations hereunder
or thereunder, including by merger, consolidation, operation of law, or otherwise, without the prior written consent of the other Party
and any such purported assignment in contravention of the provisions herein shall be null and void and of no force or effect.

18. <u>Counterparts</u>. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument. A signed copy
of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect
as delivery of an original signed copy of this Agreement.

19. <u>Termination</u>. In the event that either (i) a Material
Event has not occurred on or before the second annual anniversary of the Effective Date or (ii) Mr. McLaren's engagement by Zoned
is terminated for Cause (as defined in the Employment Agreement), then this Agreement shall automatically terminate as of such applicable
time without any further action of the Parties, and shall thereafter be null and void and of no force or effect.

 

*[Signature Pages Follow]*

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| Zoned Properties, Inc. | Zoned Properties, Inc. |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |
| Bryan McLaren | Bryan McLaren |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |

---

Exhibit 1

Severance Agreement

(Attached)

**Severance Agreement**

*[Bryan McLaren]*

This Severance Agreement (this "Severance Agreement"), dated as of [_______], 202[__] (the "Severance Date"), is entered into by and between (i) Zoned Properties, Inc., a Nevada corporation ("Zoned"); and (ii) Bryan McLaren ("Mr. McLaren"). Zoned and Mr. McLaren may be referred to herein individually as a "Party" and collectively as the "Parties".

WHEREAS, Mr. McLaren is an employee and/or officer and/or director of Zoned and/or one or more of its Affiliates (as defined below) or subsidiaries (collectively, the "Zoned Entities"), and such service is ending as of the Severance Date, and the Parties desire to enter into certain agreements in connection therewith;

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>Material Event Agreement.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. This Severance Agreement is being entered into by the Parties pursuant to the Material
Event Agreement entered into by the Parties on January 15, 2026 (the "Agreement"), and is subject to the terms and conditions
therein. Capitalized terms used herein without definition shall have the meanings given in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Parties acknowledge and agree that a Material Event has been consummated, and
Mr. McLaren's service to Zoned is ending as of the Severance Date, and this Severance Agreement is being entered into by the Parties
on the Severance Date as required by the Agreement.

2. <u>Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;2.1. On the first business day following the expiration of the 7-day period referenced
in Section ‎10.2, and provided that Mr. McLaren has not revoked this Severance Agreement pursuant to the provisions of such Section
‎10.2, and if required pursuant to the provisions of the Golden Parachute Agreement, Zoned shall issue to Mr. McLaren the Shares and
shall pay to Mr. McLaren the Cash Payment via wire transfer pursuant to wire instructions provided by Mr. McLaren to Zoned.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. All other benefits and remuneration of any kind to Mr. McLaren shall terminate
effective on the Severance Date, except (i) indemnification rights, if any, under Zoned's Articles of Incorporation or Bylaws
or separate agreement; (ii) any coverage or benefits available to Mr. McLaren pursuant to any directors' and officers' liability
insurance policies in place for the benefit of Zoned and its directors and officers; and (iii) as otherwise provided for in this
Severance Agreement. Mr. McLaren acknowledges and agrees that Zoned has paid Mr. McLaren all wages, salary, benefits and other compensation
to which Mr. McLaren is entitled and owed. Moreover, except as provided for in this Severance Agreement, Mr. McLaren shall not be entitled
to receive any other compensation or benefits of any sort from any Zoned Entity, or their respective officers, directors, employees, agents,
insurance companies, attorneys, shareholders, or subsidiaries for, without limitation, salary, vacation, bonuses, stock, stock options,
health care continuation coverage or any other compensation or benefits. Mr. McLaren also understands and agrees that, by entering into
this Severance Agreement, any and all rights Mr. McLaren had, has or may hereafter have, under any and all change in control agreements
between Mr. McLaren and Zoned are hereby revoked, extinguished and released.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. Mr. McLaren agrees that he has: (i) received all compensation due Mr. McLaren
as a result of services performed for Zoned with the receipt of his final paycheck; and (ii) reported to Zoned any and all work-related
injuries incurred by Mr. McLaren during his employment by Zoned. Consequently, Mr. McLaren acknowledges that Mr. McLaren has no knowledge
of any violation, possible violation or series of facts and circumstances on the part of or attributable to Zoned which could give rise
to a claim under the Fair Labor Standards Act, Family and Medical Leave Act, or applicable regulations.

3. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Confidential Information</u>. For purposes of this Severance Agreement, and
except as provided below, "Confidential Information" shall mean any confidential, proprietary or trade secret information,
data or know-how which relates to the business, research, services, products, customers, suppliers, employees, or financial information
of Zoned and its subsidiaries and Affiliates, including, but not limited to, product or service specifications, designs, drawings, prototypes,
computer programs, models, business plans, marketing plans, financial data, financial statements, financial forecasts and statistical
information, in each case that is marked as confidential, proprietary or secret, or with an alternate legend or marking indicating the
confidentiality thereof or which, from the nature thereof should reasonably be expected to be confidential or proprietary, in each case
which is disclosed by Zoned or on its behalf, after the date hereof, to Mr. McLaren either in writing, orally, by inspection or in any
other form or medium. Any technical or business information of a third person furnished or disclosed shall be deemed "Confidential
Information" of Zoned unless otherwise specifically indicated in writing to the contrary. The fact that the Parties are communicating
regarding a potential business relationship shall also be deemed "Confidential Information" under this Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Definitions</u>. For purposes herein, (i) "Affiliate" means, with
respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such Person; (ii)
"Control" of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, by contract, or otherwise." Controlled",
"Controlling" and "under common Control with" have correlative meanings. Without limiting the foregoing a Person
(the "Controlled Person") shall be deemed Controlled by (a) any other Person (the "10% Owner") (i) owning beneficially,
as meant in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, securities entitling such Person to cast 10% or more of
the votes for election of directors or equivalent governing authority of the Controlled Person or (ii) entitled to be allocated or receive
10% or more of the profits, losses, or distributions of the Controlled Person; (b) an officer, director, general partner, partner (other
than a limited partner), manager, or member (other than a member having no management authority that is not a 10% Owner) of the Controlled
Person; or (c) a spouse, parent, lineal descendant, sibling, aunt, uncle, niece, nephew, mother-in-law, father-in-law, sister-in-law,
or brother-in-law of an Affiliate of the Controlled Person or a trust for the benefit of an Affiliate of the Controlled Person or of which
an Affiliate of the Controlled Person is a trustee; and (iii) "Person" means an individual, corporation, partnership (including
a general partnership, limited partnership or limited liability partnership), limited liability company, association, trust or other entity
or organization, including a government, domestic or foreign, or political subdivision thereof, or an agency or instrumentality thereof.

&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Restrictions</u>. Mr. McLaren agrees to use the Confidential Information only
for the purpose of enforcing his rights and fulfilling his obligations pursuant to this Severance Agreement (the "Purpose")
and shall use reasonable care not to disclose Confidential Information to any non-Affiliated third party, such care to be at least equal
to the care exercised by Mr. McLaren as to his own Confidential Information, which standard of care shall not be less than the current
industry standard in effect as of the date of such receipt. Mr. McLaren agrees that he shall make disclosure of any such Confidential
Information only to his Affiliates and their respective employees (including temporary and leased employees subject to a confidentiality
obligation), officers, directors, attorneys, consultants, advisors and other agents (collectively, "Representatives"), to
whom disclosure is reasonably necessary for the Purpose. Mr. McLaren shall appropriately notify such Representatives that the disclosure
is made in confidence and shall be kept in confidence in accordance with this Severance Agreement. Mr. McLaren shall be responsible for
the failure of his Representatives to comply with the terms of this Severance Agreement. Without the prior consent of Zoned, Mr. McLaren
shall not remove any proprietary, copyright, trade secret or other protective legend from the Confidential Information. Mr. McLaren acknowledges
that the Confidential Information disclosed hereunder may constitute "Technical Data" and may be subject to the export laws
and regulations of the United States. Mr. McLaren agrees he will not knowingly export, directly or indirectly, any Confidential Information
or any direct product incorporating any Confidential Information, whether or not otherwise permitted under this Severance Agreement, to
any countries, agencies, groups or companies prohibited by the United States Government unless proper authorization is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>No License</u>. Nothing herein shall be construed as granting to Mr. McLaren or his Affiliates any
right or license to use or practice any of the information defined herein as Confidential Information and which is subject to this Severance
Agreement as well as any trade secrets, know-how, copyrights, inventions, patents or other intellectual property rights now or hereafter
owned or controlled by Zoned. Except as allowed by applicable law, Mr. McLaren shall not use any trade name, service mark or trademark
of Zoned or refer to Zoned in any promotional or sales activity or materials without first obtaining the prior written consent of Zoned.

&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Exceptions</u>. The obligations imposed in Section ‎3.3 and Section ‎3.4 shall not apply to
any Confidential Information that (i) was already in the possession of Mr. McLaren at the time of disclosure without restrictions on its
use or is independently developed by Mr. McLaren after the Severance Date, provided that the person or persons developing same have not
used such information received from Zoned, or is rightfully obtained from a source other than from Zoned; (ii) is in the public domain
at the time of disclosure or subsequently becomes available to the general public through no fault of Mr. McLaren; (iii) is obtained by
Mr. McLaren from a third person who is under no obligation of confidence to Zoned; (iv) is disclosed without restriction by Zoned; or
(v) in the event that this Severance Agreement is being executed as a result of the consummation of the MBO and Mr. McLaren is engaged
by the Buyer (as defined in the APA), to the extent required for the continued operation of the Assets (as defined in the APA) by the
Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;3.6. <u>Standstill</u>. Mr. McLaren acknowledges and agrees that Zoned is a public company, currently trading
on the OTC Markets. Mr. McLaren agrees that, for as long as any information, including Confidential Information, continues to meet the
definition of Material Non-Public Information (as defined below) as set forth herein (the "Standstill Period"), Mr. McLaren
shall not, and Mr. McLaren shall ensure that none of its Representatives shall (i) buy or sell any securities or derivative securities
of or related to Zoned, or any interest therein; or (ii) undertake any actions or activities that would reasonably be expected to result
in a violation of the Securities Act of 1933, as amended, or the rules and regulations thereunder, or of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), including, without limitation, Section 10(b) thereunder, or the rules and regulations
thereunder, including, without limitation, Rule 10b-5 promulgated thereunder. Mr. McLaren also agrees during the Standstill Period not
to request Zoned (or its directors, officers, employees or agents), directly or indirectly, to amend or waive any provision of this Section
‎3.6.

&nbsp;&nbsp;&nbsp;&nbsp;3.7. <u>Ownership of Confidential Information</u>. As between Zoned and Mr. McLaren, the Confidential Information

of this Severance Agreement, "Derivative" shall mean: (i) for copyrightable or copyrighted material, any translation, abridgement,
revision or other form in which an existing work may be recast, transformed or adapted, and which constitutes a derivative work under
the Copyright laws of the United States; (ii) for patentable or patented material, any improvement thereon; and (iii) for material which
is protected by trade secret, any new material derived from such existing trade secret material, including new material which may be protected
by copyright, patent and/or trade secret.

&nbsp;&nbsp;&nbsp;&nbsp;3.8. <u>Request for Confidential Information Pursuant to Court or Other Proceeding</u>. If Mr. McLaren is requested
or required (by oral questions, deposition, interrogatories, subpoena, civil investigative demand or other similar non-criminal process)
to disclose any Confidential Information supplied to Mr. McLaren under this Severance Agreement, Mr. McLaren will provide Zoned with prompt
written notice of such request(s) so that Zoned may, at Zoned's option, (a) seek an appropriate protective order; (b) consult with
Mr. McLaren on the advisability of taking steps to resist or narrow such request or requirement; or (c) waive in writing Mr. McLaren's
compliance with the provisions of this Severance Agreement for the sole purpose of complying with the request. If, in the absence of a
protective order or the receipt of a written waiver hereunder, Mr. McLaren is nonetheless, in the reasonable opinion of its counsel, compelled
to disclose Confidential Information to any governmental tribunal or else stand liable for contempt or suffer other censure or penalty,
Mr. McLaren will cooperate with Zoned at Zoned's expense in any attempt that Zoned may make to obtain an order or other reliable
assurance that confidential treatment will be provided by such tribunal for all or designated portions of such Confidential Information
disclosed by Zoned.

4. <u>Return of Property and Confidential Information</u>. Subject to the provisions of the last sentence
of this Section ‎4, immediately upon the Severance Date, all records of Confidential Information, including, but not limited to, all
notes, emails, memos, plans, records, letters, reports or other tangible materials, including copies thereof, in Mr. McLaren's possession,
and including any and all documents and copies thereof provided to Mr. McLaren's attorney, whether prepared by Mr. McLaren or by
others, shall be left with, or delivered by Severance Date to Zoned, and Mr. McLaren shall return to Zoned any and all property of Zoned
in Mr. McLaren's possession, including, but not limited to, Mr. McLaren's keys, laptop, equipment, all documents, emails,
Confidential Information, computer files (howsoever evidenced and stored, and whether on Mr. McLaren's personal computer, cloud-based
storage, or otherwise), login credentials for all accounts managed, including social media, and all other information related to each
account managed. Mr. McLaren acknowledges and understands that Zoned's obligation to pay Mr. McLaren the severance benefits identified
in Section ‎2.1 is expressly conditioned upon Mr. McLaren's adherence to the terms of this Severance Agreement, including the
provisions of this Section ‎4. Notwithstanding the foregoing, Mr. McLaren may retain any and all documents relating to his compensation
and benefits, including, but not limited to, documents relating to the health insurance plan, outstanding equity awards, the 401(k) Retirement
Plan. In addition, in the event that this Severance Agreement is being executed as a result of the consummation of the MBO and Mr. McLaren
is engaged by the Buyer (as defined in the APA), Mr. McLaren may retain such materials as referenced in this Section ‎4 to the extent
required for the continued operation of the Assets by the Buyer.

5. <u>Cooperation</u>. Mr. McLaren agrees to cooperate fully with Zoned in its defense of any lawsuit, investigation,
proceeding or third party request for information filed/requested over matters that occurred during the tenure of Mr. McLaren's
engagement with any Zoned Entity, and agrees to provide full and accurate information with respect to same. Mr. McLaren further agrees
not to provide any information to any outside parties concerning any Zoned Entity, unless compelled to do so by valid subpoena or other
court order, and in such case only after first notifying Zoned in advance of such subpoena or court order and permitting Zoned a minimum
of five (5) business days to respond or object.

6. <u>Release of Claims.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Effective as of the Severance Date, each Party, for itself and its Affiliates (as
defined below), whether an Affiliate as of the Severance Date or hereafter becoming an Affiliate, and for each of their respective predecessors,
successors, assigns, heirs, representatives, and agents and for all related parties, and all persons acting by, through, under or in concert
with any of them in both their official and personal capacities (collectively, the "Releasing Party") hereby irrevocably,
unconditionally and forever releases, discharges and remises each other Party and its Affiliates (whether an Affiliate as of the Severance
Date or later), and their respective predecessors, successors, assigns, heirs, representatives, and agents and for all related parties
and all persons acting by, through, under or in concert with any of them in both their official and personal capacities (collectively,
the "Released Parties"), from all claims of any type and all manner of action and actions, cause and causes of action, suits,
debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, known or unknown, that any
Releasing Party may have now or may have in the future, against any of Released Parties, solely to the extent that those claims have arisen
or may have arisen from the Agreement or this Severance Agreement or the transactions contemplated therein or herein (collectively, the
"Released Claims"). Each Party as a Releasing Party represents and warrants that no Released Claim released herein has been
assigned, expressly, impliedly, or by operation of law, and that all Released Claims released herein are owned by such Party as a Releasing
Party, which has the respective sole authority to release them. Each Party as a Releasing Party agrees that it shall forever refrain and
forebear from commencing, instituting or prosecuting any lawsuit action or proceeding, judicial, administrative or otherwise collect or
enforce any Released Claim which is released and discharged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Each of the Parties hereby waives any and all rights which it may have with respect
to this Severance Agreement or the subject matter hereof, under the provisions of Section 1542 of the Civil Code of the State of
California as now worded and as hereafter amended, which section provides that:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. It is understood and agreed by each of the Parties that the facts in respect to
which this Severance Agreement is executed may turn out to be other than or different from the facts in the respect now known or believed
by each of the Parties to be true; and with such understanding and agreement, each Party expressly accepts and assumes the risk of facts
being other than or different from the assumptions and perceptions as of any date prior to and including the date hereof, and agrees that
this Severance Agreement shall be in all respects effective and shall not be subject to termination or rescission by reasons of any such
difference in facts, and subject to the terms and conditions herein.

7. <u>Covenant Not to File a Claim and Indemnification</u>. Each Party as a Releasing Party, on its own behalf
and on behalf of its related Releasing Parties, agrees not to file for itself or on behalf of any of its related Releasing Parties, any
claim, charge, complaint, action, or cause of action against any Released Party related to Released Claims, and further agrees to indemnify
and save harmless such Released Parties from and against any and all losses, including, without limitation, the cost of defense and legal
fees, occurring as a result of any claims, charges, complaints, actions, or causes of action made or brought by any such Releasing Party
against any Released Party in violation of the terms and conditions of this Severance Agreement. In the event that any Releasing Party
brings a suit against any Released Party in violation of this covenant, the Party to whom such Releasing Party relates agrees to pay any
and all costs of Released Parties, including attorneys' fees, incurred by such Released Parties in challenging such action. Any
Released Party is an intended third-party beneficiary of this Severance Agreement.

8. <u>Affirmations.</u> Each Party as a Releasing Party affirms that such Party has not filed, caused to
be filed, or presently is a party to any claim, complaint, or action against any Released Party in any forum or form and should any such
charge or action be filed by any Releasing Party or by any other person or entity on any Releasing Party's behalf involving matters
covered by this Severance Agreement, such Party agrees to promptly give the agency or court having jurisdiction a copy of this Severance
Agreement and inform them that any such claims any such Releasing Party might otherwise have had are now settled. This is a compromise
and settlement of potential or actual disputed claims and is made solely for the purpose of avoiding the uncertainty, expense, and inconvenience
of future litigation. Neither this Severance Agreement nor the furnishing of any consideration concurrently with the execution hereof
shall be deemed or construed at any time or for any purpose as an admission by any Party of any liability or obligation of any kind. Any
such liability or wrongdoing is expressly denied. The Parties acknowledge that this Severance Agreement was reached after good faith settlement
negotiations and after each Party had an opportunity to consult legal counsel. This Severance Agreement extends to, and is for the benefit
of, the Parties, their respective successors, assigns and agents and anyone claiming by, through or under the Parties.

9. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Confirmation of Representations</u>. Each Party (the "Representing Party") represents and warrants to the other Party that the representations and warranties
as given by the Representing Party in the Severance Agreement are true and correct as of the Severance Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Additional Representations and Warranties of Mr. McLaren</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1. Mr. McLaren understands and agrees that the consummation of the transactions herein,
including the delivery of the Shares to Mr. McLaren as contemplated herein, constitutes the offer and sale of securities under the Securities
Act of 1933 as amended (together with the rules and regulations thereunder, the "Securities Act") and applicable state statutes
and that the Shares are being acquired for Mr. McLaren's own account and not with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.2. Mr. McLaren is an "accredited investor" as that term is defined in
Rule 501(a) of Regulation D under the Securities Act. Mr. McLaren understands that the Shares are being offered and sold to Mr. McLaren
in reliance upon specific exemptions from the registration requirements of United States federal and state securities Laws and that Zoned
is relying upon the truth and accuracy of, and Mr. McLaren's compliance with, the representations, warranties, agreements, acknowledgments
and understandings of Mr. McLaren set forth herein and in the Severance Agreement in order to determine the availability of such exemptions
and the eligibility of Mr. McLaren to acquire the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.3. Mr. McLaren and his advisors, if any, have been furnished with all materials relating
to the business, finances and operations of Zoned and materials relating to the offer and sale of the Shares which have been requested
by Mr. McLaren or his advisors. Mr. McLaren and his advisors, if any, have been afforded the opportunity to ask questions of Zoned. Mr.
McLaren understands that his investment in the Shares involves a significant degree of risk. Mr. McLaren, either alone or together with
his representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. Mr. McLaren
is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.4. Mr. McLaren is acquiring the Shares for his own account as principal, not as a
nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole
or in part and no other person has a direct or indirect beneficial interest in the Shares. Further, Mr. McLaren does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person,
with respect to the Shares. Mr. McLaren understands that the sale or re-sale of the Shares has not been and is not being registered under
the Securities Act or any applicable state securities laws, and the Shares may not be transferred unless the Shares are sold pursuant
to an effective registration statement under the Securities Act or there is an exemption from registration available for such sale or
re-sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.5. Mr. McLaren understands that no United States federal or state agency or any other
governmental or state agency has passed on or made recommendations or endorsement of the Shares or the suitability of the investment in
the Shares nor have such authorities passed upon or endorsed the merits of the transactions set forth herein.

10. <u>Additional Acknowledgements and Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;10.1. Mr. McLaren states and represents that he has carefully read this Severance Agreement
and knows the contents thereof, and that Mr. McLaren has executed the same as his own free act and deed.

&nbsp;&nbsp;&nbsp;&nbsp;10.2. To accept the terms of this Severance Agreement, Mr. McLaren must return a signed
copy of this Severance Agreement to Zoned to the address as set forth in the Agreement. To revoke his signature and the Severance Agreement,
Mr. McLaren shall notify Zoned pursuant to Section ‎11 by no later than 5:00 p.m. EST on the seventh (7th) day after Mr. McLaren
signs this Severance Agreement. This Severance Agreement becomes effective upon the expiration of seven (7) days after Mr. McLaren
signs this Severance Agreement provided Mr. McLaren has not sooner revoked his signature.

&nbsp;&nbsp;&nbsp;&nbsp;10.3. Mr. McLaren agrees that he is solely liable for any and all income tax, other taxes,
or assessments owed by Mr. McLaren in connection with any payment made pursuant to this Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;10.4. **Mr. McLaren acknowledges that he has carefully read and fully understands all the provisions of this Severance Agreement, that Mr. McLaren has been given twenty-one (21) days in which to consider this Severance Agreement and will have seven (7) days to revoke acceptance after signing this Severance Agreement. In the event Mr. McLaren signs this Severance Agreement and returns it to Zoned in less than such 21-day period, Mr. McLaren acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Severance Agreement. The Parties agree that changes to this Severance Agreement, whether material or immaterial, do not restart the running of the 21-day period. Mr. McLaren is advised to consult with an attorney of Mr. McLaren's own choosing before signing this Severance Agreement. Mr. McLaren further acknowledges that he has had the opportunity to ask questions about each and every provision of this Severance Agreement and that Mr. McLaren fully understands the effect of the provisions contained in this Severance Agreement upon his legal rights. The above notwithstanding, Mr. McLaren acknowledges that Zoned will not accept as valid any Mr. McLaren signature occurring prior to the Severance Date and Mr. McLaren covenants not to execute this Severance Agreement prior to such date.** 

11. <u>Notices</u>. Any notice or other communications required or permitted hereunder
shall be given in accordance with the provisions of the Agreement.

12. <u>Governing Law.</u> This Severance Agreement, and all matters based upon, arising
out of or relating in any way to the transactions completed herein, including, without limitation, tort claims, statutory claims and contract
claims, shall be interpreted, construed, governed and enforced under and in accordance with the substantive and procedural laws of the
State of Nevada in each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements
performed wholly within the State of Nevada.

13. <u>Applicability.</u> The provisions of the Agreement as set forth therein as being
applicable to this Severance Agreement shall so apply to this Severance Agreement. Upon execution of this Severance Agreement, this Severance
Agreement and the Agreement shall be read, interpreted and enforced together as the joint and combined agreements of the Parties.

14. <u>Construction</u>. The headings contained in this Severance Agreement are for
reference purposes only and will not affect in any way the meaning or interpretation of this Severance Agreement.

15. <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;15.1. This Severance Agreement may be amended, modified, superseded, terminated or cancelled,
and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed
by both of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;15.2. Every right and remedy provided herein shall be cumulative with every other right
and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the
performance of any obligation by another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter
occurring or existing.

&nbsp;&nbsp;&nbsp;&nbsp;15.3. Neither any failure or delay in exercising any right or remedy hereunder or in
requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any Party from enforcing
any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any
obligation of that Party or impairs any right of the Party giving such notice or making such demand, including any right to take any action
without notice or demand not otherwise required by this Severance Agreement. No exercise of any right or remedy with respect to a breach
of this Severance Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with
respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

16. <u>Counterparts</u>. This Severance Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which taken together shall be but a single instrument. A signed copy of this Severance
Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery
of an original signed copy of this Severance Agreement.

 

*[Signature Pages Follow]*

 

IN WITNESS WHEREOF, the Parties have executed this Severance Agreement as of the Severance Date.

---

| | |
|:---|:---|
| Zoned Properties, Inc. | Zoned Properties, Inc. |
| By: |  |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: |  |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |
| Bryan McLaren | Bryan McLaren |
| By: |  |
| Name: | Bryan McLaren |

---

## Exhibit 10.3

**Exhibit 10.3**

**Material Event Agreement**

*[Berekk Blackwell]*

This Material Event Agreement (this "Agreement"), dated as of January 15, 2026 (the "Effective Date"), is entered into by and between (i) Zoned Properties, Inc., a Nevada corporation ("Zoned"); and (ii) Berekk Blackwell ("Mr. Blackwell"). Zoned and Mr. Blackwell may be referred to herein individually as a "Party" and collectively as the "Parties".

WHEREAS, Mr. Blackwell is an employee and/or officer and/or director of Zoned and/or one or more of its Affiliates (as defined below) or subsidiaries (collectively, the "Zoned Entities"), and the Parties desire to enter into this Agreement in connection with certain material transactions currently being contemplated by Zoned;

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>Definitions</u>. For purposes herein, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;1.1. "MBO" means the transactions as contemplated in the Asset Purchase Agreement, dated as of
the Effective Date, entered into between Zoned, Zoned Arizona Properties, LLC, an Arizona limited liability company, ZP RE AZ Dysart,
LLC, an Arizona limited liability company, ZP RE Holdings, LLC, an Arizona limited liability company and BPB Partners, LLC, an Arizona
limited liability company, as the same may be amended from time to time (the "APA").

&nbsp;&nbsp;&nbsp;&nbsp;1.2. "Change of Control" means (i) any event wherein the beneficial ownership (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of securities representing more than 50%
of the combined voting power of Zoned is acquired by any "person" as defined in sections 13(d) and 14(d) of the Exchange Act
(other than Zoned, any subsidiary of Zoned, or any trustee or other fiduciary holding securities under an employee benefit plan of Zoned),
(ii) the merger or consolidation of Zoned with or into another corporation where the shareholders of Zoned, immediately prior to the consolidation
or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities
of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any) in substantially
the same proportion as their ownership of Zoned immediately prior to such merger or consolidation, or (iii) the sale or other disposition
of all or substantially all of Zoned's assets to an entity, other than a sale or disposition by Zoned of all or substantially all
of Zoned's assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned directly or
indirectly by shareholders of Zoned, immediately prior to the sale or disposition, in substantially the same proportion as their ownership
of Zoned immediately prior to such sale or disposition.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. "Material Event" means the consummation of either the MBO or a Change of Control.

2. <u>Actions at Time of Material Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Severance Agreement</u>. In the event of the occurrence of a Material Event, and effective as of the
date of the Material Event, Mr. Blackwell shall execute and deliver to Zoned the Severance Agreement in the form as attached hereto as
Exhibit 1 (the "Severance Agreement"), and Zoned shall countersign and return the Severance Agreement to Mr. Blackwell. Upon
execution of the Severance Agreement, this Agreement and the Severance Agreement shall be read, interpreted and enforced together as the
joint and combined agreements of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Material Event Payment</u>. The Parties acknowledge and agree that the Severance Agreement shall provide
for the payment and issuance to Mr. Blackwell of the following, subject to and following the consummation of the Material Event, and subject
to the terms and conditions herein and in the Severance Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. The issuance to Mr. Blackwell of 150,000 shares of common stock, par value $0.001 per share (the "Common
Stock") of Zoned (the "Shares"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. The payment to Mr. Blackwell of a cash payment in an amount equal to (i) one year of Mr. Blackwell's
base salary as in place at the time of the Material Event; plus (ii) an amount equal to 35% of the fair market value of the Shares as
of the date off the Material Event, which fair market value shall be determined based on the closing trading price of the Common Stock
on the OTC Markets or the primary securities trading market or securities exchange on which the Common Stock is available for trading
as of the Material Event, as reasonably determined by the Board of Directors of Zoned (such total cash payment amount, the "Cash
Payment").

&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Adjustment of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. The number of shares of Common Stock comprising the "Shares" shall be subject to equitable
adjustments for any forward stock split or reverse stock split of the Common Stock occurring following the Effective Date and prior to
the issuance of the Shares. By way of example and not limitation in the event of a 1-for-2 reverse stock split of the Common Stock occurring
after the Effective Date, in which each two shares of Common Stock are combined into one share of Common Stock, the number of Shares shall
be reduced by 50%, and in the event of two-for-one forward stock split of the Common Stock occurring after the Effective Date, in which
each share of Common Stock is split into two shares of Common Stock the number of Shares shall be increased by 100%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. In the event that, prior to the issuance of any Shares, the Common Stock is converted into another class
of securities of Zoned or any successor entity to Zoned, whether by way of merger, reorganization, re-incorporation or otherwise (the
"Replacement Securities"), any reference herein to the Common Stock (whether standing alone or as part of another defined
term herein) shall be deemed a reference to such Replacement Securities. In the event that, prior to the issuance of any Shares, Zoned
completes a merger or share exchange with another entity wherein all of the issued and outstanding shares of Common Stock are exchanged
for equity interests in the other entity (the "Exchanged Securities"), any reference herein to the Common Stock (whether standing
alone or as part of another defined term herein) shall be deemed a reference to such Exchanged Securities

3. <u>Representations and Warranties of the Parties</u>. Each Party (the "Representing Party")
represents and warrants to the other Party as set forth in this Section ‎3.

&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Due Authority; No Violation</u>. Representing
Party h as all requisite rights and authority or the capacity to execute,
deliver and perform its obligations under this Agreement, and the Severance Agreement, if and when executed. The execution and
delivery of this Agreement and the Severance Agreement, if and when executed, and the consummation of the transactions contemplated hereby and thereby, have been duly and validly authorized by such Representing Party,
and no other proceedings are necessary to authorize the execution, delivery and performance of this Agreement, and
the Severance Agreement, if and when executed, or the transactions contemplated hereby or thereby on the part of such Representing
Party. No approval, authority, or consent of or filing by such Representing Party with, or notification to, any governmental authority,
is necessary to authorize the execution and delivery of this Agreement, and the
Severance Agreement, if and when executed, or the consummation of the transactions contemplated herein and therein.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Enforceability</u>. This Agreement, and the Severance Agreement, if and when executed, have each been duly
executed and delivered by such Representing Party and, assuming that this Agreement, and
the Severance Agreement, if and when executed, each constitutes the legal, valid and binding obligation of each other Party, constitutes
the legal, valid, and binding obligation of such Representing Party, enforceable against such Representing Party in accordance with its
terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other similar laws of general application affecting enforcement of creditors' rights generally.

4. <u>Notices</u>. Any notice or other communications required or permitted hereunder, or
pursuant to the Severance Agreement, if and when executed, shall be in writing and shall be sufficiently given if personally delivered
to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as set forth below. Any Party
may change its address for notices hereunder upon notice to each other Party in the manner for giving notices hereunder. Any notice hereunder
shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier,
(iii) upon dispatch, if transmitted by email with return receipt requested and received and (iv) three (3) days after mailing, if sent
by registered or certified mail. Subject to the foregoing, notices shall be sent as follows:

If to Zoned, to:

Zoned Properties, Inc.

Attn: Bryan McLaren

8360 E. Raintree Drive, #230

Scottsdale, AZ 85260

Email:

If to Mr. Blackwell, to:

Berekk Blackwell

8360 E. Raintree Dr. #230

Scottsdale, AZ 85260

Email:

5. <u>Governing Law.</u> This Agreement, and all matters based upon, arising out of or relating in any way
to the transactions completed herein, including, without limitation, tort claims, statutory claims and contract claims, shall be interpreted,
construed, governed and enforced under and in accordance with the substantive and procedural laws of the State of Nevada in each case
as in effect from time to time and as the same may be amended from time to time, and as applied to agreements performed wholly within
the State of Nevada.

6. <u>Jurisdiction</u>. ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR BASED UPON THIS AGREEMENT, or the Severance Agreement, if and when executed, OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN
SHALL BE INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF ARIZONA, IN EACH CASE LOCATED IN MARICOPA COUNTY, ARIZONA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH
SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY'S ADDRESS SET FORTH HEREIN
SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE
AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

7. <u>Waiver of Jury Trial</u>. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT or the Severance Agreement, if and when executed, OR THE TRANSACTIONS CONTEMPLATED HEREIN
OR THEREIN, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED ,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION ‎6. Each of the Parties acknowledge that each has been represented in connection with the signing of the waiver above
by independent legal counsel selected by the respective Party and that such Party has discussed the legal consequences and import of this
waiver with legal counsel. Each of the Parties further acknowledge that each has read and understands the meaning of such waiver and grants
this waiver knowingly, voluntarily, without duress and only after consideration of the consequences of this waiver with legal counsel .

8. <u>Specific Performance</u>. The Parties agree that irreparable damage would occur if any provision of
this Agreement, or the Severance Agreement, if and when executed, were not performed in accordance with the terms hereof and that the
Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law
or in equity.

9. <u>Limitation on Damages</u>. **In no event will any Party be liable to the other Party under or in connection with this Agreement or the Severance Agreement, if and when executed, or in connection with the transactions contemplated herein for special, general, indirect or consequential damages, including damages for lost profits or lost opportunity, even if the Party sought to be held liable has been advised of the possibility of such damages.** 

10. <u>Attorneys' Fees</u>. In the event that any Party institutes any action or suit to enforce this
Agreement, or the Severance Agreement, if and when executed, or to secure relief from any default hereunder or breach hereof, the prevailing
Party shall be reimbursed by the losing Party for all costs, including reasonable attorneys' fees, incurred in connection therewith
and in enforcing or collecting any judgment rendered therein.

11. <u>Public Announcements and Filings</u>. Unless required by applicable laws or regulatory authority, or
the rules and regulations of any securities market on which the securities of Zoned are listed or available for trading, none of the Parties
will issue any report, statement or press release to the general public, trade or trade press, or to any third party (other than its advisors
and representatives in connection with transactions contemplated herein) or file any document, relating to this Agreement, or the Severance
Agreement, if and when executed, and the transactions contemplated herein or therein, except as may be mutually agreed by the Parties.
Copies of any such filings, public announcements or disclosures, including any announcements or disclosures mandated by laws or regulatory
authorities, shall be delivered to each Party prior to the release thereof.

12. <u>Third-Party Beneficiaries</u>. This Agreement, and the Severance Agreement, if and when executed, are
strictly between the Parties and, except as specifically provided herein, no director, officer, stockholder, member, employee, agent,
independent contractor or any other Person shall be deemed to be a third-party beneficiary of this Agreement or the Severance Agreement,
if and when executed,.

13. <u>Expenses</u>. Except as specifically set forth herein or in the Severance Agreement, each of the Parties
will bear their own respective expenses, including without limitation the fees and expenses of its legal, accounting and financial advisors,
incurred in connection with the transactions contemplated herein.

14. <u>Entire Agreement</u>. This Agreement, and the Severance Agreement, if and when executed, represent
the entire agreement between the Parties relating to the subject matter thereof and supersede all prior agreements, understandings and
negotiations, written or oral, with respect to such subject matter. If any term or provision of this Agreement or the Severance Agreement,
if and when executed, is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other term or provision of this Agreement or the Severance Agreement, if and when executed, or invalidate or render unenforceable
such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the Parties shall negotiate in good faith to modify this Agreement and the Severance Agreement, if and when executed, so as to effect
the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated
herein be consummated as originally contemplated to the greatest extent possible.

15. <u>Construction</u>. The headings contained in this Agreement are for reference purposes only and will
not affect in any way the meaning or interpretation of this Agreement.

16. <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;16.1. This Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms, covenants,
representations, warranties or conditions hereof may be waived, only by a written instrument executed by both of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;16.2. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether
conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any
obligation by another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring
or existing.

&nbsp;&nbsp;&nbsp;&nbsp;16.3. Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction
of any condition herein nor any course of dealing shall constitute a waiver of or prevent any Party from enforcing any right or remedy
or from requiring satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any obligation of that
Party or impairs any right of the Party giving such notice or making such demand, including any right to take any action without notice
or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of this Agreement shall
preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with respect to such breach, or subsequent
exercise of any right or remedy with respect to any other breach.

17. <u>Successors and Assigns</u>. This Agreement and the Severance Agreement, if and when executed, shall
be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. No Party shall have
any power or any right to assign or transfer, in whole or in part, this Agreement, or the Severance Agreement, if and when executed, or
any of its rights or any of its obligations hereunder or thereunder, including, without limitation, any right to pursue any claim for
damages pursuant to this Agreement, or the Severance Agreement, if and when executed, or the transactions contemplated herein or therein,
or to pursue any claim for any breach or default of this Agreement, or the Severance Agreement, if and when executed, or any right arising
from the purported assignor's due performance of its obligations hereunder or thereunder, including by merger, consolidation, operation
of law, or otherwise, without the prior written consent of the other Party and any such purported assignment in contravention of the provisions
herein shall be null and void and of no force or effect.

18. <u>Counterparts</u>. This Agreement may be executed in multiple counterparts, each of which shall be deemed
an original and all of which taken together shall be but a single instrument. A signed copy of this Agreement delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Agreement.

19. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;19.1. In the event that either (i) a Material Event has not occurred on or before the second annual anniversary
of the Effective Date or (ii) Mr. Blackwell's engagement by Zoned is terminated for Cause (as defined below), then this Agreement
shall automatically terminate as of such applicable time without any further action of the Parties, and shall thereafter be null and void
and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;19.2. For purposes herein, "Cause" means termination upon (a) the willful and continued failure
to substantially perform duties with Zoned after a written demand for substantial performance is delivered by the Board of Directors of
Zoned (the "Board"), which demand specifically identifies the manner in which the Board believes that duties have not substantially
been performed, or (b) the willful engaging in conduct which is demonstrably and materially injurious to Zoned, monetarily or otherwise.
For purposes of this Section ‎19, no act, or failure to act, on Mr. Blackwell's part shall be deemed "willful" unless
done, or ignored, by Mr. Blackwell not in good faith and without reasonable belief that action or omission was in the best interest of
Zoned. Notwithstanding the foregoing, Mr. Blackwell shall not be deemed to have been terminated for Cause unless and until there shall
have been delivered a copy of a resolution duly adopted by the affirmative and unanimous vote of the entire membership of the Board (deemed
to not include Mr. Blackwell should he be a member of the Board as of such time) at a meeting of the Board called and held for such purpose
(after reasonable notice and an opportunity to be heard by the Board), finding that in the good faith opinion of the Board that Mr. Blackwell
was culpable of the misconduct or omission set forth above in clauses (a) or (b) of this Section ‎19.2 and specifying the particulars
in detail.

 

*[Signature Pages Follow]*

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| Zoned Properties, Inc. | Zoned Properties, Inc. |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |
| Berekk Blackwell | Berekk Blackwell |
| By: | /s/ Berekk Blackwell |
| Name: | Berekk Blackwell |

---

Exhibit 1

Severance Agreement

(Attached)

**Severance Agreement**

*[Berekk Blackwell]*

This Severance Agreement (this "Severance Agreement"), dated as of [_______], 202[__] (the "Severance Date"), is entered into by and between (i) Zoned Properties, Inc., a Nevada corporation ("Zoned"); and (ii) Berekk Blackwell ("Mr. Blackwell"). Zoned and Mr. Blackwell may be referred to herein individually as a "Party" and collectively as the "Parties".

WHEREAS, Mr. Blackwell is an employee and/or officer and/or director of Zoned and/or one or more of its Affiliates (as defined below) or subsidiaries (collectively, the "Zoned Entities"), and is voluntarily resigning from such positions as of the Severance Date, and the Parties desire to enter into certain agreements in connection therewith;

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>Material Event Agreement.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. This Severance Agreement is being entered into by the Parties pursuant to the Material
Event Agreement entered into by the Parties on January 15, 2026 (the "Agreement"), and is subject to the terms and conditions
therein. Capitalized terms used herein without definition shall have the meanings given in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Parties acknowledge and agree that a Material Event has been consummated as
of the Severance Date, and this Severance Agreement is being entered into by the Parties on the Severance Date as required by the Agreement.

2. <u>Resignation; Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;2.1. Effective as of the Severance Date, Mr. Blackwell hereby resigns from all positions
he may hold as a director, manager, officer or employee of any Zoned Entity. Mr. Blackwell confirms that his resignation is not the result
of any disagreement with any Zoned Entity on any matter relating to its respective operations, policies (including accounting or financial
policies) or practices.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. On the first business day following the expiration of the 7-day period referenced
in Section 10.2, and provided that Mr. Blackwell has not revoked this Severance Agreement pursuant to the provisions of such Section 10.2,
Zoned shall issue to Mr. Blackwell the Shares and shall pay to Mr. Blackwell the Cash Payment via wire transfer pursuant to wire instructions
provided by Mr. Blackwell to Zoned.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. All other benefits and remuneration of any kind to Mr. Blackwell shall terminate
effective on the Severance Date, except (i) indemnification rights, if any, under Zoned's Articles of Incorporation or Bylaws
or separate agreement; (ii) any coverage or benefits available to Mr. Blackwell pursuant to any directors' and officers' liability
insurance policies in place for the benefit of Zoned and its directors and officers; and (iii) as otherwise provided for in this
Severance Agreement. Mr. Blackwell acknowledges and agrees that Zoned has paid Mr. Blackwell all wages, salary, benefits and other compensation
to which Mr. Blackwell is entitled and owed. Moreover, except as provided for in this Severance Agreement, Mr. Blackwell shall not be
entitled to receive any other compensation or benefits of any sort from any Zoned Entity, or their respective officers, directors, employees,
agents, insurance companies, attorneys, shareholders, or subsidiaries for, without limitation, salary, vacation, bonuses, stock, stock
options, health care continuation coverage or any other compensation or benefits. Mr. Blackwell also understands and agrees that, by entering
into this Severance Agreement, any and all rights Mr. Blackwell had, has or may hereafter have, under any and all change in control agreements
between Mr. Blackwell and Zoned are hereby revoked, extinguished and released.

&nbsp;&nbsp;&nbsp;&nbsp;2.4. Mr. Blackwell agrees that he has: (i) received all compensation due Mr. Blackwell
as a result of services performed for Zoned with the receipt of his final paycheck; and (ii) reported to Zoned any and all work-related
injuries incurred by Mr. Blackwell during his employment by Zoned. Consequently, Mr. Blackwell acknowledges that Mr. Blackwell has no
knowledge of any violation, possible violation or series of facts and circumstances on the part of or attributable to Zoned which could
give rise to a claim under the Fair Labor Standards Act, Family and Medical Leave Act, or applicable regulations.

3. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Confidential Information</u>. For purposes of this Severance Agreement, and
except as provided below, "Confidential Information" shall mean any confidential, proprietary or trade secret information,
data or know-how which relates to the business, research, services, products, customers, suppliers, employees, or financial information
of Zoned and its subsidiaries and Affiliates, including, but not limited to, product or service specifications, designs, drawings, prototypes,
computer programs, models, business plans, marketing plans, financial data, financial statements, financial forecasts and statistical
information, in each case that is marked as confidential, proprietary or secret, or with an alternate legend or marking indicating the
confidentiality thereof or which, from the nature thereof should reasonably be expected to be confidential or proprietary, in each case
which is disclosed by Zoned or on its behalf, after the date hereof, to Mr. Blackwell either in writing, orally, by inspection or in any
other form or medium. Any technical or business information of a third person furnished or disclosed shall be deemed "Confidential
Information" of Zoned unless otherwise specifically indicated in writing to the contrary. The fact that the Parties are communicating
regarding a potential business relationship shall also be deemed "Confidential Information" under this Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Definitions</u>. For purposes herein, (i) "Affiliate" means, with
respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such Person; (ii)
"Control" of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, by contract, or otherwise." Controlled",
"Controlling" and "under common Control with" have correlative meanings. Without limiting the foregoing a Person
(the "Controlled Person") shall be deemed Controlled by (a) any other Person (the "10% Owner") (i) owning beneficially,
as meant in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, securities entitling such Person to cast 10% or more of
the votes for election of directors or equivalent governing authority of the Controlled Person or (ii) entitled to be allocated or receive
10% or more of the profits, losses, or distributions of the Controlled Person; (b) an officer, director, general partner, partner (other
than a limited partner), manager, or member (other than a member having no management authority that is not a 10% Owner) of the Controlled
Person; or (c) a spouse, parent, lineal descendant, sibling, aunt, uncle, niece, nephew, mother-in-law, father-in-law, sister-in-law,
or brother-in-law of an Affiliate of the Controlled Person or a trust for the benefit of an Affiliate of the Controlled Person or of which
an Affiliate of the Controlled Person is a trustee; and (iii) "Person" means an individual, corporation, partnership (including
a general partnership, limited partnership or limited liability partnership), limited liability company, association, trust or other entity
or organization, including a government, domestic or foreign, or political subdivision thereof, or an agency or instrumentality thereof.

&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Restrictions</u>. Mr. Blackwell agrees to use the Confidential Information only
for the purpose of enforcing his rights and fulfilling his obligations pursuant to this Severance Agreement (the "Purpose")
and shall use reasonable care not to disclose Confidential Information to any non-Affiliated third party, such care to be at least equal
to the care exercised by Mr. Blackwell as to his own Confidential Information, which standard of care shall not be less than the current
industry standard in effect as of the date of such receipt. Mr. Blackwell agrees that he shall make disclosure of any such Confidential
Information only to his Affiliates and their respective employees (including temporary and leased employees subject to a confidentiality
obligation), officers, directors, attorneys, consultants, advisors and other agents (collectively, "Representatives"), to
whom disclosure is reasonably necessary for the Purpose. Mr. Blackwell shall appropriately notify such Representatives that the disclosure
is made in confidence and shall be kept in confidence in accordance with this Severance Agreement. Mr. Blackwell shall be responsible
for the failure of his Representatives to comply with the terms of this Severance Agreement. Without the prior consent of Zoned, Mr. Blackwell
shall not remove any proprietary, copyright, trade secret or other protective legend from the Confidential Information. Mr. Blackwell
acknowledges that the Confidential Information disclosed hereunder may constitute "Technical Data" and may be subject to the
export laws and regulations of the United States. Mr. Blackwell agrees he will not knowingly export, directly or indirectly, any Confidential
Information or any direct product incorporating any Confidential Information, whether or not otherwise permitted under this Severance
Agreement, to any countries, agencies, groups or companies prohibited by the United States Government unless proper authorization is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>No License</u>. Nothing herein shall be construed as granting to Mr. Blackwell or his Affiliates any
right or license to use or practice any of the information defined herein as Confidential Information and which is subject to this Severance
Agreement as well as any trade secrets, know-how, copyrights, inventions, patents or other intellectual property rights now or hereafter
owned or controlled by Zoned. Except as allowed by applicable law, Mr. Blackwell shall not use any trade name, service mark or trademark
of Zoned or refer to Zoned in any promotional or sales activity or materials without first obtaining the prior written consent of Zoned.

&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Exceptions</u>. The obligations imposed in Section 3.3 and Section 3.4 shall not apply to any Confidential
Information that (i) was already in the possession of Mr. Blackwell at the time of disclosure without restrictions on its use or is independently
developed by Mr. Blackwell after the Severance Date, provided that the person or persons developing same have not used such information
received from Zoned, or is rightfully obtained from a source other than from Zoned; (ii) is in the public domain at the time of disclosure
or subsequently becomes available to the general public through no fault of Mr. Blackwell; (iii) is obtained by Mr. Blackwell from a third
person who is under no obligation of confidence to Zoned; (iv) is disclosed without restriction by Zoned; or (v) in the event that this
Severance Agreement is being executed as a result of the consummation of the MBO and Mr. Blackwell is engaged by the Buyer (as defined
in the APA), to the extent required for the continued operation of the Assets (as defined in the APA) by the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;3.6. <u>Standstill</u>. Mr. Blackwell acknowledges and agrees that Zoned is a public company, currently trading
on the OTC Markets. Mr. Blackwell agrees that, for as long as any information, including Confidential Information, continues to meet the
definition of Material Non-Public Information (as defined below) as set forth herein (the "Standstill Period"), Mr. Blackwell
shall not, and Mr. Blackwell shall ensure that none of its Representatives shall (i) buy or sell any securities or derivative securities
of or related to Zoned, or any interest therein; or (ii) undertake any actions or activities that would reasonably be expected to result
in a violation of the Securities Act of 1933, as amended, or the rules and regulations thereunder, or of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), including, without limitation, Section 10(b) thereunder, or the rules and regulations
thereunder, including, without limitation, Rule 10b-5 promulgated thereunder. Mr. Blackwell also agrees during the Standstill Period not
to request Zoned (or its directors, officers, employees or agents), directly or indirectly, to amend or waive any provision of this Section
3.6. 11

&nbsp;&nbsp;&nbsp;&nbsp;3.7. <u>Ownership of Confidential Information</u>. As between Zoned and Mr. Blackwell, the Confidential Information

of this Severance Agreement, "Derivative" shall mean: (i) for copyrightable or copyrighted material, any translation, abridgement,
revision or other form in which an existing work may be recast, transformed or adapted, and which constitutes a derivative work under
the Copyright laws of the United States; (ii) for patentable or patented material, any improvement thereon; and (iii) for material which
is protected by trade secret, any new material derived from such existing trade secret material, including new material which may be protected
by copyright, patent and/or trade secret.

&nbsp;&nbsp;&nbsp;&nbsp;3.8. <u>Request for Confidential Information Pursuant to Court or Other Proceeding</u>. If Mr. Blackwell is
requested or required (by oral questions, deposition, interrogatories, subpoena, civil investigative demand or other similar non-criminal
process) to disclose any Confidential Information supplied to Mr. Blackwell under this Severance Agreement, Mr. Blackwell will provide
Zoned with prompt written notice of such request(s) so that Zoned may, at Zoned's option, (a) seek an appropriate protective order;
(b) consult with Mr. Blackwell on the advisability of taking steps to resist or narrow such request or requirement; or (c) waive in writing
Mr. Blackwell's compliance with the provisions of this Severance Agreement for the sole purpose of complying with the request. If,
in the absence of a protective order or the receipt of a written waiver hereunder, Mr. Blackwell is nonetheless, in the reasonable opinion
of its counsel, compelled to disclose Confidential Information to any governmental tribunal or else stand liable for contempt or suffer
other censure or penalty, Mr. Blackwell will cooperate with Zoned at Zoned's expense in any attempt that Zoned may make to obtain
an order or other reliable assurance that confidential treatment will be provided by such tribunal for all or designated portions of such
Confidential Information disclosed by Zoned.

4. <u>Return of Property and Confidential Information</u>. Subject to the provisions of the last sentence
of this Section 4, immediately upon the Severance Date, all records of Confidential Information, including, but not limited to, all notes,
emails, memos, plans, records, letters, reports or other tangible materials, including copies thereof, in Mr. Blackwell's possession,
and including any and all documents and copies thereof provided to Mr. Blackwell's attorney, whether prepared by Mr. Blackwell or
by others, shall be left with, or delivered by Severance Date to Zoned, and Mr. Blackwell shall return to Zoned any and all property of
Zoned in Mr. Blackwell's possession, including, but not limited to, Mr. Blackwell's keys, laptop, equipment, all documents,
emails, Confidential Information, computer files (howsoever evidenced and stored, and whether on Mr. Blackwell's personal computer,
cloud-based storage, or otherwise), login credentials for all accounts managed, including social media, and all other information related
to each account managed. Mr. Blackwell acknowledges and understands that Zoned's obligation to pay Mr. Blackwell the severance benefits
identified in Section 2.2 is expressly conditioned upon Mr. Blackwell's adherence to the terms of this Severance Agreement, including
the provisions of this Section 4. Notwithstanding the foregoing, Mr. Blackwell may retain any and all documents relating to his compensation
and benefits, including, but not limited to, documents relating to the health insurance plan, outstanding equity awards, the 401(k) Retirement
Plan. In addition, in the event that this Severance Agreement is being executed as a result of the consummation of the MBO and Mr. Blackwell
is engaged by the Buyer (as defined in the APA), Mr. Blackwell may retain such materials as referenced in this Section 4 to the extent
required for the continued operation of the Assets by the Buyer.

5. <u>Cooperation</u>. Mr. Blackwell agrees to cooperate fully with Zoned in its defense of any lawsuit,
investigation, proceeding or third party request for information filed/requested over matters that occurred during the tenure of Mr. Blackwell's
engagement with any Zoned Entity, and agrees to provide full and accurate information with respect to same. Mr. Blackwell further agrees
not to provide any information to any outside parties concerning any Zoned Entity, unless compelled to do so by valid subpoena or other
court order, and in such case only after first notifying Zoned in advance of such subpoena or court order and permitting Zoned a minimum
of five (5) business days to respond or object.

6. <u>Release of Claims.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Effective as of the Severance Date, each Party, for itself and its Affiliates (as
defined below), whether an Affiliate as of the Severance Date or hereafter becoming an Affiliate, and for each of their respective predecessors,
successors, assigns, heirs, representatives, and agents and for all related parties, and all persons acting by, through, under or in concert
with any of them in both their official and personal capacities (collectively, the "Releasing Party") hereby irrevocably,
unconditionally and forever releases, discharges and remises each other Party and its Affiliates (whether an Affiliate as of the Severance
Date or later), and their respective predecessors, successors, assigns, heirs, representatives, and agents and for all related parties
and all persons acting by, through, under or in concert with any of them in both their official and personal capacities (collectively,
the "Released Parties"), from all claims of any type and all manner of action and actions, cause and causes of action, suits,
debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, known or unknown, that any
Releasing Party may have now or may have in the future, against any of Released Parties, solely to the extent that those claims have arisen
or may have arisen from the Agreement or this Severance Agreement or the transactions contemplated therein or herein (collectively, the
"Released Claims"). Each Party as a Releasing Party represents and warrants that no Released Claim released herein has been
assigned, expressly, impliedly, or by operation of law, and that all Released Claims released herein are owned by such Party as a Releasing
Party, which has the respective sole authority to release them. Each Party as a Releasing Party agrees that it shall forever refrain and
forebear from commencing, instituting or prosecuting any lawsuit action or proceeding, judicial, administrative or otherwise collect or
enforce any Released Claim which is released and discharged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Each of the Parties hereby waives any and all rights which it may have with respect
to this Severance Agreement or the subject matter hereof, under the provisions of Section 1542 of the Civil Code of the State of
California as now worded and as hereafter amended, which section provides that:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. It is understood and agreed by each of the Parties that the facts in respect to
which this Severance Agreement is executed may turn out to be other than or different from the facts in the respect now known or believed
by each of the Parties to be true; and with such understanding and agreement, each Party expressly accepts and assumes the risk of facts
being other than or different from the assumptions and perceptions as of any date prior to and including the date hereof, and agrees that
this Severance Agreement shall be in all respects effective and shall not be subject to termination or rescission by reasons of any such
difference in facts, and subject to the terms and conditions herein.

7. <u>Covenant Not to File a Claim and Indemnification</u>. Each Party as a Releasing Party, on its own behalf
and on behalf of its related Releasing Parties, agrees not to file for itself or on behalf of any of its related Releasing Parties, any
claim, charge, complaint, action, or cause of action against any Released Party related to Released Claims, and further agrees to indemnify
and save harmless such Released Parties from and against any and all losses, including, without limitation, the cost of defense and legal
fees, occurring as a result of any claims, charges, complaints, actions, or causes of action made or brought by any such Releasing Party
against any Released Party in violation of the terms and conditions of this Severance Agreement. In the event that any Releasing Party
brings a suit against any Released Party in violation of this covenant, the Party to whom such Releasing Party relates agrees to pay any
and all costs of Released Parties, including attorneys' fees, incurred by such Released Parties in challenging such action. Any
Released Party is an intended third-party beneficiary of this Severance Agreement.

8. <u>Affirmations.</u> Each Party as a Releasing Party affirms that such Party has not filed, caused to
be filed, or presently is a party to any claim, complaint, or action against any Released Party in any forum or form and should any such
charge or action be filed by any Releasing Party or by any other person or entity on any Releasing Party's behalf involving matters
covered by this Severance Agreement, such Party agrees to promptly give the agency or court having jurisdiction a copy of this Severance
Agreement and inform them that any such claims any such Releasing Party might otherwise have had are now settled. This is a compromise
and settlement of potential or actual disputed claims and is made solely for the purpose of avoiding the uncertainty, expense, and inconvenience
of future litigation. Neither this Severance Agreement nor the furnishing of any consideration concurrently with the execution hereof
shall be deemed or construed at any time or for any purpose as an admission by any Party of any liability or obligation of any kind. Any
such liability or wrongdoing is expressly denied. The Parties acknowledge that this Severance Agreement was reached after good faith settlement
negotiations and after each Party had an opportunity to consult legal counsel. This Severance Agreement extends to, and is for the benefit
of, the Parties, their respective successors, assigns and agents and anyone claiming by, through or under the Parties.

9. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Confirmation of Representations</u>. Each Party (the "Representing Party") represents and warrants to the other Party that the representations and warranties
as given by the Representing Party in the Severance Agreement are true and correct as of the Severance Date.

&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Additional Representations and Warranties of Mr. Blackwell</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1. Mr. Blackwell understands and agrees that the consummation of the transactions
herein, including the delivery of the Shares to Mr. Blackwell as contemplated herein, constitutes the offer and sale of securities under
the Securities Act of 1933 as amended (together with the rules and regulations thereunder, the "Securities Act") and applicable
state statutes and that the Shares are being acquired for Mr. Blackwell's own account and not with a present view towards the public
sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.2. Mr. Blackwell is an "accredited investor" as that term is defined in
Rule 501(a) of Regulation D under the Securities Act. Mr. Blackwell understands that the Shares are being offered and sold to Mr. Blackwell
in reliance upon specific exemptions from the registration requirements of United States federal and state securities Laws and that Zoned
is relying upon the truth and accuracy of, and Mr. Blackwell's compliance with, the representations, warranties, agreements, acknowledgments
and understandings of Mr. Blackwell set forth herein and in the Severance Agreement in order to determine the availability of such exemptions
and the eligibility of Mr. Blackwell to acquire the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.3. Mr. Blackwell and his advisors, if any, have been furnished with all materials
relating to the business, finances and operations of Zoned and materials relating to the offer and sale of the Shares which have been
requested by Mr. Blackwell or his advisors. Mr. Blackwell and his advisors, if any, have been afforded the opportunity to ask questions
of Zoned. Mr. Blackwell understands that his investment in the Shares involves a significant degree of risk. Mr. Blackwell, either alone
or together with his representatives, has such knowledge, sophistication and experience in business and financial matters so as to be
capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such
investment. Mr. Blackwell is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford
a complete loss of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.4. Mr. Blackwell is acquiring the Shares for his own account as principal, not as
a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in
whole or in part and no other person has a direct or indirect beneficial interest in the Shares. Further, Mr. Blackwell does not have
any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any
third person, with respect to the Shares. Mr. Blackwell understands that the sale or re-sale of the Shares has not been and is not being
registered under the Securities Act or any applicable state securities laws, and the Shares may not be transferred unless the Shares are
sold pursuant to an effective registration statement under the Securities Act or there is an exemption from registration available for
such sale or re-sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.5. Mr. Blackwell understands that no United States federal or state agency or any
other governmental or state agency has passed on or made recommendations or endorsement of the Shares or the suitability of the investment
in the Shares nor have such authorities passed upon or endorsed the merits of the transactions set forth herein.

10. <u>Additional Acknowledgements and Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;10.1. Mr. Blackwell states and represents that he has carefully read this Severance Agreement
and knows the contents thereof, and that Mr. Blackwell has executed the same as his own free act and deed.

&nbsp;&nbsp;&nbsp;&nbsp;10.2. To accept the terms of this Severance Agreement, Mr. Blackwell must return a signed
copy of this Severance Agreement to Zoned to the address as set forth in the Agreement. To revoke his signature and the Severance Agreement,
Mr. Blackwell shall notify Zoned pursuant to Section 11 by no later than 5:00 p.m. EST on the seventh (7th) day after Mr. Blackwell
signs this Severance Agreement. This Severance Agreement becomes effective upon the expiration of seven (7) days after Mr. Blackwell
signs this Severance Agreement provided Mr. Blackwell has not sooner revoked his signature.

&nbsp;&nbsp;&nbsp;&nbsp;10.3. Mr. Blackwell agrees that he is solely liable for any and all income tax, other
taxes, or assessments owed by Mr. Blackwell in connection with any payment made pursuant to this Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;10.4. **Mr. Blackwell acknowledges that he has carefully read and fully understands all the provisions of this Severance Agreement, that Mr. Blackwell has been given twenty-one (21) days in which to consider this Severance Agreement and will have seven (7) days to revoke acceptance after signing this Severance Agreement. In the event Mr. Blackwell signs this Severance Agreement and returns it to Zoned in less than such 21-day period, Mr. Blackwell acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Severance Agreement. The Parties agree that changes to this Severance Agreement, whether material or immaterial, do not restart the running of the 21-day period. Mr. Blackwell is advised to consult with an attorney of Mr. Blackwell's own choosing before signing this Severance Agreement. Mr. Blackwell further acknowledges that he has had the opportunity to ask questions about each and every provision of this Severance Agreement and that Mr. Blackwell fully understands the effect of the provisions contained in this Severance Agreement upon his legal rights. The above notwithstanding, Mr. Blackwell acknowledges that Zoned will not accept as valid any Mr. Blackwell signature occurring prior to the Severance Date and Mr. Blackwell covenants not to execute this Severance Agreement prior to such date.** 

11. <u>Notices</u>. Any notice or other communications required or permitted hereunder
shall be given in accordance with the provisions of the Agreement.

12. <u>Governing Law.</u> This Severance Agreement, and all matters based upon, arising
out of or relating in any way to the transactions completed herein, including, without limitation, tort claims, statutory claims and contract
claims, shall be interpreted, construed, governed and enforced under and in accordance with the substantive and procedural laws of the
State of Nevada in each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements
performed wholly within the State of Nevada.

13. <u>Applicability.</u> The provisions of the Agreement as set forth therein as being
applicable to this Severance Agreement shall so apply to this Severance Agreement. Upon execution of this Severance Agreement, this Severance
Agreement and the Agreement shall be read, interpreted and enforced together as the joint and combined agreements of the Parties.

14. <u>Construction</u>. The headings contained in this Severance Agreement are for
reference purposes only and will not affect in any way the meaning or interpretation of this Severance Agreement.

15. <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;15.1. This Severance Agreement may be amended, modified, superseded, terminated or cancelled,
and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed
by both of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;15.2. Every right and remedy provided herein shall be cumulative with every other right
and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the
performance of any obligation by another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter
occurring or existing.

&nbsp;&nbsp;&nbsp;&nbsp;15.3. Neither any failure or delay in exercising any right or remedy hereunder or in
requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any Party from enforcing
any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any
obligation of that Party or impairs any right of the Party giving such notice or making such demand, including any right to take any action
without notice or demand not otherwise required by this Severance Agreement. No exercise of any right or remedy with respect to a breach
of this Severance Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with
respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

16. <u>Counterparts</u>. This Severance Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which taken together shall be but a single instrument. A signed copy of this Severance
Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery
of an original signed copy of this Severance Agreement.

 

*[Signature Pages Follow]*

 

 

IN WITNESS WHEREOF, the Parties have executed this Severance Agreement as of the Severance Date.

---

| | |
|:---|:---|
| Zoned Properties, Inc. | Zoned Properties, Inc. |
| By: |  |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: |  |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |
| Berekk Blackwell | Berekk Blackwell |
| By: |  |
| Name: | Berekk Blackwell |

---

## Exhibit 10.4

**Exhibit 10.4**

**Material Event Agreement**

*[Patrick Moroney]*

This Material Event Agreement (this "Agreement"), dated as of January 15, 2026 (the "Effective Date"), is entered into by and between (i) Zoned Properties, Inc., a Nevada corporation ("Zoned"); and (ii) Patrick Moroney ("Mr. Moroney"). Zoned and Mr. Moroney may be referred to herein individually as a "Party" and collectively as the "Parties".

WHEREAS, Mr. Moroney is an employee and/or officer and/or director of Zoned and/or one or more of its Affiliates (as defined below) or subsidiaries (collectively, the "Zoned Entities"), and the Parties desire to enter into this Agreement in connection with certain material transactions currently being contemplated by Zoned;

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>Definitions</u>. For purposes herein, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;1.1. "MBO" means the transactions as contemplated in the Asset Purchase Agreement, dated as of
the Effective Date, entered into between Zoned, Zoned Arizona Properties, LLC, an Arizona limited liability company, ZP RE AZ Dysart,
LLC, an Arizona limited liability company, ZP RE Holdings, LLC, an Arizona limited liability company and BPB Partners, LLC, an Arizona
limited liability company, as the same may be amended from time to time (the "APA").

&nbsp;&nbsp;&nbsp;&nbsp;1.2. "Change of Control" means (i) any event wherein the beneficial ownership (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of securities representing more than 50%
of the combined voting power of Zoned is acquired by any "person" as defined in sections 13(d) and 14(d) of the Exchange Act
(other than Zoned, any subsidiary of Zoned, or any trustee or other fiduciary holding securities under an employee benefit plan of Zoned),
(ii) the merger or consolidation of Zoned with or into another corporation where the shareholders of Zoned, immediately prior to the consolidation
or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities
of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any) in substantially
the same proportion as their ownership of Zoned immediately prior to such merger or consolidation, or (iii) the sale or other disposition
of all or substantially all of Zoned's assets to an entity, other than a sale or disposition by Zoned of all or substantially all
of Zoned's assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned directly or
indirectly by shareholders of Zoned, immediately prior to the sale or disposition, in substantially the same proportion as their ownership
of Zoned immediately prior to such sale or disposition.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. "Material Event" means the consummation of either the MBO or a Change of Control.

2. <u>Actions at Time of Material Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Severance Agreement</u>. In the event of the occurrence of a Material Event, and effective as of the
date of the Material Event, Mr. Moroney shall execute and deliver to Zoned the Severance Agreement in the form as attached hereto as Exhibit
1 (the "Severance Agreement"), and Zoned shall countersign and return the Severance Agreement to Mr. Moroney. Upon execution
of the Severance Agreement, this Agreement and the Severance Agreement shall be read, interpreted and enforced together as the joint and
combined agreements of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Material Event Payment</u>. The Parties acknowledge and agree that the Severance Agreement shall provide
for the payment and issuance to Mr. Moroney of the following, subject to and following the consummation of the Material Event, and subject
to the terms and conditions herein and in the Severance Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. The issuance to Mr. Moroney of 150,000 shares of common stock, par value $0.001 per share (the "Common
Stock") of Zoned (the "Shares"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. The payment to Mr. Moroney of a cash payment in an amount equal to (i) one year of Mr. Moroney's
base salary as in place at the time of the Material Event; plus (ii) an amount equal to 35% of the fair market value of the Shares as
of the date off the Material Event, which fair market value shall be determined based on the closing trading price of the Common Stock
on the OTC Markets or the primary securities trading market or securities exchange on which the Common Stock is available for trading
as of the Material Event, as reasonably determined by the Board of Directors of Zoned (such total cash payment amount, the "Cash
Payment").

&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Adjustment of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. The number of shares of Common Stock comprising the "Shares" shall be subject to equitable
adjustments for any forward stock split or reverse stock split of the Common Stock occurring following the Effective Date and prior to
the issuance of the Shares. By way of example and not limitation in the event of a 1-for-2 reverse stock split of the Common Stock occurring
after the Effective Date, in which each two shares of Common Stock are combined into one share of Common Stock, the number of Shares shall
be reduced by 50%, and in the event of two-for-one forward stock split of the Common Stock occurring after the Effective Date, in which
each share of Common Stock is split into two shares of Common Stock the number of Shares shall be increased by 100%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. In the event that, prior to the issuance of any Shares, the Common Stock is converted into another class
of securities of Zoned or any successor entity to Zoned, whether by way of merger, reorganization, re-incorporation or otherwise (the
"Replacement Securities"), any reference herein to the Common Stock (whether standing alone or as part of another defined
term herein) shall be deemed a reference to such Replacement Securities. In the event that, prior to the issuance of any Shares, Zoned
completes a merger or share exchange with another entity wherein all of the issued and outstanding shares of Common Stock are exchanged
for equity interests in the other entity (the "Exchanged Securities"), any reference herein to the Common Stock (whether standing
alone or as part of another defined term herein) shall be deemed a reference to such Exchanged Securities

3. <u>Representations and Warranties of the Parties</u>. Each Party (the "Representing Party")
represents and warrants to the other Party as set forth in this Section ‎3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Due Authority; No Violation</u>. Representing
Party h as all requisite rights and authority or the capacity to execute,
deliver and perform its obligations under this Agreement, and the Severance Agreement, if and when executed. The execution and
delivery of this Agreement and the Severance Agreement, if and when executed, and the consummation of the transactions contemplated hereby and thereby, have been duly and validly authorized by such Representing Party,
and no other proceedings are necessary to authorize the execution, delivery and performance of this Agreement, and
the Severance Agreement, if and when executed, or the transactions contemplated hereby or thereby on the part of such Representing
Party. No approval, authority, or consent of or filing by such Representing Party with, or notification to, any governmental authority,
is necessary to authorize the execution and delivery of this Agreement, and the
Severance Agreement, if and when executed, or the consummation of the transactions contemplated herein and therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Enforceability</u>. This Agreement, and the Severance Agreement, if and when executed, have each been duly
executed and delivered by such Representing Party and, assuming that this Agreement, and
the Severance Agreement, if and when executed, each constitutes the legal, valid and binding obligation of each other Party, constitutes
the legal, valid, and binding obligation of such Representing Party, enforceable against such Representing Party in accordance with its
terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other similar laws of general application affecting enforcement of creditors' rights generally.

4. <u>Notices</u>. Any notice or other communications required or permitted hereunder, or
pursuant to the Severance Agreement, if and when executed, shall be in writing and shall be sufficiently given if personally delivered
to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as set forth below. Any Party
may change its address for notices hereunder upon notice to each other Party in the manner for giving notices hereunder. Any notice hereunder
shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier,
(iii) upon dispatch, if transmitted by email with return receipt requested and received and (iv) three (3) days after mailing, if sent
by registered or certified mail. Subject to the foregoing, notices shall be sent as follows:

If to Zoned, to:

Zoned Properties, Inc.

Attn: Bryan McLaren

8360 E. Raintree Drive, #230

Scottsdale, AZ 85260

Email:

If to Mr. Moroney, to:

Patrick Moroney

8360 E. Raintree Dr. #230

Scottsdale, AZ 85260

Email:

5. <u>Governing Law.</u> This Agreement, and all matters based upon, arising out of or relating in any way
to the transactions completed herein, including, without limitation, tort claims, statutory claims and contract claims, shall be interpreted,
construed, governed and enforced under and in accordance with the substantive and procedural laws of the State of Nevada in each case
as in effect from time to time and as the same may be amended from time to time, and as applied to agreements performed wholly within
the State of Nevada.

6. <u>Jurisdiction</u>. ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR BASED UPON THIS AGREEMENT, or the Severance Agreement, if and when executed, OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN
SHALL BE INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF ARIZONA, IN EACH CASE LOCATED IN MARICOPA COUNTY, ARIZONA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH
SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY'S ADDRESS SET FORTH HEREIN
SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE
AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

7. <u>Waiver of Jury Trial</u>. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT or the Severance Agreement, if and when executed, OR THE TRANSACTIONS CONTEMPLATED HEREIN
OR THEREIN, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED ,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION ‎6. Each of the Parties acknowledge that each has been represented in connection with the signing of the waiver above
by independent legal counsel selected by the respective Party and that such Party has discussed the legal consequences and import of this
waiver with legal counsel. Each of the Parties further acknowledge that each has read and understands the meaning of such waiver and grants
this waiver knowingly, voluntarily, without duress and only after consideration of the consequences of this waiver with legal counsel .

8. <u>Specific Performance</u>. The Parties agree that irreparable damage would occur if any provision of
this Agreement, or the Severance Agreement, if and when executed, were not performed in accordance with the terms hereof and that the
Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law
or in equity.

9. <u>Limitation on Damages</u>. **In no event will any Party be liable to the other Party under or in connection with this Agreement or the Severance Agreement, if and when executed, or in connection with the transactions contemplated herein for special, general, indirect or consequential damages, including damages for lost profits or lost opportunity, even if the Party sought to be held liable has been advised of the possibility of such damages.** 

10. <u>Attorneys' Fees</u>. In the event that any Party institutes any action or suit to enforce this
Agreement, or the Severance Agreement, if and when executed, or to secure relief from any default hereunder or breach hereof, the prevailing
Party shall be reimbursed by the losing Party for all costs, including reasonable attorneys' fees, incurred in connection therewith
and in enforcing or collecting any judgment rendered therein.

11. <u>Public Announcements and Filings</u>. Unless required by applicable laws or regulatory authority, or
the rules and regulations of any securities market on which the securities of Zoned are listed or available for trading, none of the Parties
will issue any report, statement or press release to the general public, trade or trade press, or to any third party (other than its advisors
and representatives in connection with transactions contemplated herein) or file any document, relating to this Agreement, or the Severance
Agreement, if and when executed, and the transactions contemplated herein or therein, except as may be mutually agreed by the Parties.
Copies of any such filings, public announcements or disclosures, including any announcements or disclosures mandated by laws or regulatory
authorities, shall be delivered to each Party prior to the release thereof.

12. <u>Third-Party Beneficiaries</u>. This Agreement, and the Severance Agreement, if and when executed, are
strictly between the Parties and, except as specifically provided herein, no director, officer, stockholder, member, employee, agent,
independent contractor or any other Person shall be deemed to be a third-party beneficiary of this Agreement or the Severance Agreement,
if and when executed,.

13. <u>Expenses</u>. Except as specifically set forth herein or in the Severance Agreement, each of the Parties
will bear their own respective expenses, including without limitation the fees and expenses of its legal, accounting and financial advisors,
incurred in connection with the transactions contemplated herein.

14. <u>Entire Agreement</u>. This Agreement, and the Severance Agreement, if and when executed, represent
the entire agreement between the Parties relating to the subject matter thereof and supersede all prior agreements, understandings and
negotiations, written or oral, with respect to such subject matter. If any term or provision of this Agreement or the Severance Agreement,
if and when executed, is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other term or provision of this Agreement or the Severance Agreement, if and when executed, or invalidate or render unenforceable
such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the Parties shall negotiate in good faith to modify this Agreement and the Severance Agreement, if and when executed, so as to effect
the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated
herein be consummated as originally contemplated to the greatest extent possible.

15. <u>Construction</u>. The headings contained in this Agreement are for reference purposes only and will
not affect in any way the meaning or interpretation of this Agreement.

16. <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;16.1. This Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms, covenants,
representations, warranties or conditions hereof may be waived, only by a written instrument executed by both of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;16.2. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether
conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any
obligation by another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring
or existing.

&nbsp;&nbsp;&nbsp;&nbsp;16.3. Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction
of any condition herein nor any course of dealing shall constitute a waiver of or prevent any Party from enforcing any right or remedy
or from requiring satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any obligation of that
Party or impairs any right of the Party giving such notice or making such demand, including any right to take any action without notice
or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of this Agreement shall
preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with respect to such breach, or subsequent
exercise of any right or remedy with respect to any other breach.

17. <u>Successors and Assigns</u>. This Agreement and the Severance Agreement, if and when executed, shall
be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. No Party shall have
any power or any right to assign or transfer, in whole or in part, this Agreement, or the Severance Agreement, if and when executed, or
any of its rights or any of its obligations hereunder or thereunder, including, without limitation, any right to pursue any claim for
damages pursuant to this Agreement, or the Severance Agreement, if and when executed, or the transactions contemplated herein or therein,
or to pursue any claim for any breach or default of this Agreement, or the Severance Agreement, if and when executed, or any right arising
from the purported assignor's due performance of its obligations hereunder or thereunder, including by merger, consolidation, operation
of law, or otherwise, without the prior written consent of the other Party and any such purported assignment in contravention of the provisions
herein shall be null and void and of no force or effect.

18. <u>Counterparts</u>. This Agreement may be executed in multiple counterparts, each of which shall be deemed
an original and all of which taken together shall be but a single instrument. A signed copy of this Agreement delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Agreement.

19. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;19.1. In the event that either (i) a Material Event has not occurred on or before the second annual anniversary
of the Effective Date or (ii) Mr. Moroney's engagement by Zoned is terminated for Cause (as defined below), then this Agreement
shall automatically terminate as of such applicable time without any further action of the Parties, and shall thereafter be null and void
and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;19.2. For purposes herein, "Cause" means termination upon (a) the willful and continued failure
to substantially perform duties with Zoned after a written demand for substantial performance is delivered by the Board of Directors of
Zoned (the "Board"), which demand specifically identifies the manner in which the Board believes that duties have not substantially
been performed, or (b) the willful engaging in conduct which is demonstrably and materially injurious to Zoned, monetarily or otherwise.
For purposes of this Section ‎19, no act, or failure to act, on Mr. Moroney's part shall be deemed "willful" unless
done, or ignored, by Mr. Moroney not in good faith and without reasonable belief that action or omission was in the best interest of Zoned.
Notwithstanding the foregoing, Mr. Moroney shall not be deemed to have been terminated for Cause unless and until there shall have been
delivered a copy of a resolution duly adopted by the affirmative and unanimous vote of the entire membership of the Board (deemed to not
include Mr. Moroney should he be a member of the Board as of such time) at a meeting of the Board called and held for such purpose (after
reasonable notice and an opportunity to be heard by the Board), finding that in the good faith opinion of the Board that Mr. Moroney was
culpable of the misconduct or omission set forth above in clauses (a) or (b) of this Section ‎19.2 and specifying the particulars
in detail.

 

*[Signature Pages Follow]*

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| Zoned Properties, Inc. | Zoned Properties, Inc. |
| By: | /s/ Bryan McLaren |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: | /s/ Cole Stevens |
| Name: | Cole Stevens |
|  | Title: Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |
| Patrick Moroney | Patrick Moroney |
| By: | /s/ Patrick Moroney |
|  | Name: Patrick Moroney |

---

Exhibit 1

Severance Agreement

(Attached)

**Severance Agreement**

*[Patrick Moroney]*

This Severance Agreement (this "Severance Agreement"), dated as of [_______], 202[__] (the "Severance Date"), is entered into by and between (i) Zoned Properties, Inc., a Nevada corporation ("Zoned"); and (ii) Patrick Moroney ("Mr. Moroney"). Zoned and Mr. Moroney may be referred to herein individually as a "Party" and collectively as the "Parties".

WHEREAS, Mr. Moroney is an employee and/or officer and/or director of Zoned and/or one or more of its Affiliates (as defined below) or subsidiaries (collectively, the "Zoned Entities"), and is voluntarily resigning from such positions as of the Severance Date, and the Parties desire to enter into certain agreements in connection therewith;

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>Material Event Agreement.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. This Severance Agreement is being entered into by the Parties pursuant to the Material
Event Agreement entered into by the Parties on January 15, 2026 (the "Agreement"), and is subject to the terms and conditions
therein. Capitalized terms used herein without definition shall have the meanings given in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Parties acknowledge and agree that a Material Event has been consummated as
of the Severance Date, and this Severance Agreement is being entered into by the Parties on the Severance Date as required by the Agreement.

2. <u>Resignation; Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;2.1. Effective as of the Severance Date, Mr. Moroney hereby resigns from all positions
he may hold as a director, manager, officer or employee of any Zoned Entity. Mr. Moroney confirms that his resignation is not the result
of any disagreement with any Zoned Entity on any matter relating to its respective operations, policies (including accounting or financial
policies) or practices.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. On the first business day following the expiration of the 7-day period referenced
in Section ‎10.2, and provided that Mr. Moroney has not revoked this Severance Agreement pursuant to the provisions of such Section
‎10.2, Zoned shall issue to Mr. Moroney the Shares and shall pay to Mr. Moroney the Cash Payment via wire transfer pursuant to wire
instructions provided by Mr. Moroney to Zoned.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. All other benefits and remuneration of any kind to Mr. Moroney shall terminate
effective on the Severance Date, except (i) indemnification rights, if any, under Zoned's Articles of Incorporation or Bylaws
or separate agreement; (ii) any coverage or benefits available to Mr. Moroney pursuant to any directors' and officers' liability
insurance policies in place for the benefit of Zoned and its directors and officers; and (iii) as otherwise provided for in this
Severance Agreement. Mr. Moroney acknowledges and agrees that Zoned has paid Mr. Moroney all wages, salary, benefits and other compensation
to which Mr. Moroney is entitled and owed. Moreover, except as provided for in this Severance Agreement, Mr. Moroney shall not be entitled
to receive any other compensation or benefits of any sort from any Zoned Entity, or their respective officers, directors, employees, agents,
insurance companies, attorneys, shareholders, or subsidiaries for, without limitation, salary, vacation, bonuses, stock, stock options,
health care continuation coverage or any other compensation or benefits. Mr. Moroney also understands and agrees that, by entering into
this Severance Agreement, any and all rights Mr. Moroney had, has or may hereafter have, under any and all change in control agreements
between Mr. Moroney and Zoned are hereby revoked, extinguished and released.

&nbsp;&nbsp;&nbsp;&nbsp;2.4. Mr. Moroney agrees that he has: (i) received all compensation due Mr. Moroney
as a result of services performed for Zoned with the receipt of his final paycheck; and (ii) reported to Zoned any and all work-related
injuries incurred by Mr. Moroney during his employment by Zoned. Consequently, Mr. Moroney acknowledges that Mr. Moroney has no knowledge
of any violation, possible violation or series of facts and circumstances on the part of or attributable to Zoned which could give rise
to a claim under the Fair Labor Standards Act, Family and Medical Leave Act, or applicable regulations.

3. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Confidential Information</u>. For purposes of this Severance Agreement, and
except as provided below, "Confidential Information" shall mean any confidential, proprietary or trade secret information,
data or know-how which relates to the business, research, services, products, customers, suppliers, employees, or financial information
of Zoned and its subsidiaries and Affiliates, including, but not limited to, product or service specifications, designs, drawings, prototypes,
computer programs, models, business plans, marketing plans, financial data, financial statements, financial forecasts and statistical
information, in each case that is marked as confidential, proprietary or secret, or with an alternate legend or marking indicating the
confidentiality thereof or which, from the nature thereof should reasonably be expected to be confidential or proprietary, in each case
which is disclosed by Zoned or on its behalf, after the date hereof, to Mr. Moroney either in writing, orally, by inspection or in any
other form or medium. Any technical or business information of a third person furnished or disclosed shall be deemed "Confidential
Information" of Zoned unless otherwise specifically indicated in writing to the contrary. The fact that the Parties are communicating
regarding a potential business relationship shall also be deemed "Confidential Information" under this Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Definitions</u>. For purposes herein, (i) "Affiliate" means, with
respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such Person; (ii)
"Control" of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, by contract, or otherwise." Controlled",
"Controlling" and "under common Control with" have correlative meanings. Without limiting the foregoing a Person
(the "Controlled Person") shall be deemed Controlled by (a) any other Person (the "10% Owner") (i) owning beneficially,
as meant in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, securities entitling such Person to cast 10% or more of
the votes for election of directors or equivalent governing authority of the Controlled Person or (ii) entitled to be allocated or receive
10% or more of the profits, losses, or distributions of the Controlled Person; (b) an officer, director, general partner, partner (other
than a limited partner), manager, or member (other than a member having no management authority that is not a 10% Owner) of the Controlled
Person; or (c) a spouse, parent, lineal descendant, sibling, aunt, uncle, niece, nephew, mother-in-law, father-in-law, sister-in-law,
or brother-in-law of an Affiliate of the Controlled Person or a trust for the benefit of an Affiliate of the Controlled Person or of which
an Affiliate of the Controlled Person is a trustee; and (iii) "Person" means an individual, corporation, partnership (including
a general partnership, limited partnership or limited liability partnership), limited liability company, association, trust or other entity
or organization, including a government, domestic or foreign, or political subdivision thereof, or an agency or instrumentality thereof.

&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Restrictions</u>. Mr. Moroney agrees to use the Confidential Information only
for the purpose of enforcing his rights and fulfilling his obligations pursuant to this Severance Agreement (the "Purpose")
and shall use reasonable care not to disclose Confidential Information to any non-Affiliated third party, such care to be at least equal
to the care exercised by Mr. Moroney as to his own Confidential Information, which standard of care shall not be less than the current
industry standard in effect as of the date of such receipt. Mr. Moroney agrees that he shall make disclosure of any such Confidential
Information only to his Affiliates and their respective employees (including temporary and leased employees subject to a confidentiality
obligation), officers, directors, attorneys, consultants, advisors and other agents (collectively, "Representatives"), to
whom disclosure is reasonably necessary for the Purpose. Mr. Moroney shall appropriately notify such Representatives that the disclosure
is made in confidence and shall be kept in confidence in accordance with this Severance Agreement. Mr. Moroney shall be responsible for
the failure of his Representatives to comply with the terms of this Severance Agreement. Without the prior consent of Zoned, Mr. Moroney
shall not remove any proprietary, copyright, trade secret or other protective legend from the Confidential Information. Mr. Moroney acknowledges
that the Confidential Information disclosed hereunder may constitute "Technical Data" and may be subject to the export laws
and regulations of the United States. Mr. Moroney agrees he will not knowingly export, directly or indirectly, any Confidential Information
or any direct product incorporating any Confidential Information, whether or not otherwise permitted under this Severance Agreement, to
any countries, agencies, groups or companies prohibited by the United States Government unless proper authorization is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>No License</u>. Nothing herein shall be construed as granting to Mr. Moroney or his Affiliates any
right or license to use or practice any of the information defined herein as Confidential Information and which is subject to this Severance
Agreement as well as any trade secrets, know-how, copyrights, inventions, patents or other intellectual property rights now or hereafter
owned or controlled by Zoned. Except as allowed by applicable law, Mr. Moroney shall not use any trade name, service mark or trademark
of Zoned or refer to Zoned in any promotional or sales activity or materials without first obtaining the prior written consent of Zoned.

&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Exceptions</u>. The obligations imposed in Section ‎3.3 and Section ‎3.4 shall not apply to
any Confidential Information that (i) was already in the possession of Mr. Moroney at the time of disclosure without restrictions on its
use or is independently developed by Mr. Moroney after the Severance Date, provided that the person or persons developing same have not
used such information received from Zoned, or is rightfully obtained from a source other than from Zoned; (ii) is in the public domain
at the time of disclosure or subsequently becomes available to the general public through no fault of Mr. Moroney; (iii) is obtained by
Mr. Moroney from a third person who is under no obligation of confidence to Zoned; (iv) is disclosed without restriction by Zoned; or
(v) in the event that this Severance Agreement is being executed as a result of the consummation of the MBO and Mr. Moroney is engaged
by the Buyer (as defined in the APA), to the extent required for the continued operation of the Assets (as defined in the APA) by the
Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;3.6. <u>Standstill</u>. Mr. Moroney acknowledges and agrees that Zoned is a public company, currently trading
on the OTC Markets. Mr. Moroney agrees that, for as long as any information, including Confidential Information, continues to meet the
definition of Material Non-Public Information (as defined below) as set forth herein (the "Standstill Period"), Mr. Moroney
shall not, and Mr. Moroney shall ensure that none of its Representatives shall (i) buy or sell any securities or derivative securities
of or related to Zoned, or any interest therein; or (ii) undertake any actions or activities that would reasonably be expected to result
in a violation of the Securities Act of 1933, as amended, or the rules and regulations thereunder, or of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), including, without limitation, Section 10(b) thereunder, or the rules and regulations
thereunder, including, without limitation, Rule 10b-5 promulgated thereunder. Mr. Moroney also agrees during the Standstill Period not
to request Zoned (or its directors, officers, employees or agents), directly or indirectly, to amend or waive any provision of this Section
‎3.6.

&nbsp;&nbsp;&nbsp;&nbsp;3.7. <u>Ownership of Confidential Information</u>. As between Zoned and Mr. Moroney, the Confidential Information

of this Severance Agreement, "Derivative" shall mean: (i) for copyrightable or copyrighted material, any translation, abridgement,
revision or other form in which an existing work may be recast, transformed or adapted, and which constitutes a derivative work under
the Copyright laws of the United States; (ii) for patentable or patented material, any improvement thereon; and (iii) for material which
is protected by trade secret, any new material derived from such existing trade secret material, including new material which may be protected
by copyright, patent and/or trade secret.

&nbsp;&nbsp;&nbsp;&nbsp;3.8. <u>Request for Confidential Information Pursuant to Court or Other Proceeding</u>. If Mr. Moroney is requested
or required (by oral questions, deposition, interrogatories, subpoena, civil investigative demand or other similar non-criminal process)
to disclose any Confidential Information supplied to Mr. Moroney under this Severance Agreement, Mr. Moroney will provide Zoned with prompt
written notice of such request(s) so that Zoned may, at Zoned's option, (a) seek an appropriate protective order; (b) consult with
Mr. Moroney on the advisability of taking steps to resist or narrow such request or requirement; or (c) waive in writing Mr. Moroney's
compliance with the provisions of this Severance Agreement for the sole purpose of complying with the request. If, in the absence of a
protective order or the receipt of a written waiver hereunder, Mr. Moroney is nonetheless, in the reasonable opinion of its counsel, compelled
to disclose Confidential Information to any governmental tribunal or else stand liable for contempt or suffer other censure or penalty,
Mr. Moroney will cooperate with Zoned at Zoned's expense in any attempt that Zoned may make to obtain an order or other reliable
assurance that confidential treatment will be provided by such tribunal for all or designated portions of such Confidential Information
disclosed by Zoned.

4. <u>Return of Property and Confidential Information</u>. Subject to the provisions of the last sentence
of this Section ‎4, immediately upon the Severance Date, all records of Confidential Information, including, but not limited to, all
notes, emails, memos, plans, records, letters, reports or other tangible materials, including copies thereof, in Mr. Moroney's possession,
and including any and all documents and copies thereof provided to Mr. Moroney's attorney, whether prepared by Mr. Moroney or by
others, shall be left with, or delivered by Severance Date to Zoned, and Mr. Moroney shall return to Zoned any and all property of Zoned
in Mr. Moroney's possession, including, but not limited to, Mr. Moroney's keys, laptop, equipment, all documents, emails,
Confidential Information, computer files (howsoever evidenced and stored, and whether on Mr. Moroney's personal computer, cloud-based
storage, or otherwise), login credentials for all accounts managed, including social media, and all other information related to each
account managed. Mr. Moroney acknowledges and understands that Zoned's obligation to pay Mr. Moroney the severance benefits identified
in Section ‎2.2 is expressly conditioned upon Mr. Moroney's adherence to the terms of this Severance Agreement, including the
provisions of this Section ‎4. Notwithstanding the foregoing, Mr. Moroney may retain any and all documents relating to his compensation
and benefits, including, but not limited to, documents relating to the health insurance plan, outstanding equity awards, the 401(k) Retirement
Plan. In addition, in the event that this Severance Agreement is being executed as a result of the consummation of the MBO and Mr. Moroney
is engaged by the Buyer (as defined in the APA), Mr. Moroney may retain such materials as referenced in this Section ‎4 to the extent
required for the continued operation of the Assets by the Buyer.

5. <u>Cooperation</u>. Mr. Moroney agrees to cooperate fully with Zoned in its defense of any lawsuit, investigation,
proceeding or third party request for information filed/requested over matters that occurred during the tenure of Mr. Moroney's
engagement with any Zoned Entity, and agrees to provide full and accurate information with respect to same. Mr. Moroney further agrees
not to provide any information to any outside parties concerning any Zoned Entity, unless compelled to do so by valid subpoena or other
court order, and in such case only after first notifying Zoned in advance of such subpoena or court order and permitting Zoned a minimum
of five (5) business days to respond or object.

6. <u>Release of Claims.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Effective as of the Severance Date, each Party, for itself and its Affiliates (as
defined below), whether an Affiliate as of the Severance Date or hereafter becoming an Affiliate, and for each of their respective predecessors,
successors, assigns, heirs, representatives, and agents and for all related parties, and all persons acting by, through, under or in concert
with any of them in both their official and personal capacities (collectively, the "Releasing Party") hereby irrevocably,
unconditionally and forever releases, discharges and remises each other Party and its Affiliates (whether an Affiliate as of the Severance
Date or later), and their respective predecessors, successors, assigns, heirs, representatives, and agents and for all related parties
and all persons acting by, through, under or in concert with any of them in both their official and personal capacities (collectively,
the "Released Parties"), from all claims of any type and all manner of action and actions, cause and causes of action, suits,
debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, known or unknown, that any
Releasing Party may have now or may have in the future, against any of Released Parties, solely to the extent that those claims have arisen
or may have arisen from the Agreement or this Severance Agreement or the transactions contemplated therein or herein (collectively, the
"Released Claims"). Each Party as a Releasing Party represents and warrants that no Released Claim released herein has been
assigned, expressly, impliedly, or by operation of law, and that all Released Claims released herein are owned by such Party as a Releasing
Party, which has the respective sole authority to release them. Each Party as a Releasing Party agrees that it shall forever refrain and
forebear from commencing, instituting or prosecuting any lawsuit action or proceeding, judicial, administrative or otherwise collect or
enforce any Released Claim which is released and discharged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Each of the Parties hereby waives any and all rights which it may have with respect
to this Severance Agreement or the subject matter hereof, under the provisions of Section 1542 of the Civil Code of the State of
California as now worded and as hereafter amended, which section provides that:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. It is understood and agreed by each of the Parties that the facts in respect to
which this Severance Agreement is executed may turn out to be other than or different from the facts in the respect now known or believed
by each of the Parties to be true; and with such understanding and agreement, each Party expressly accepts and assumes the risk of facts
being other than or different from the assumptions and perceptions as of any date prior to and including the date hereof, and agrees that
this Severance Agreement shall be in all respects effective and shall not be subject to termination or rescission by reasons of any such
difference in facts, and subject to the terms and conditions herein.

7. <u>Covenant Not to File a Claim and Indemnification</u>. Each Party as a Releasing Party, on its own behalf
and on behalf of its related Releasing Parties, agrees not to file for itself or on behalf of any of its related Releasing Parties, any
claim, charge, complaint, action, or cause of action against any Released Party related to Released Claims, and further agrees to indemnify
and save harmless such Released Parties from and against any and all losses, including, without limitation, the cost of defense and legal
fees, occurring as a result of any claims, charges, complaints, actions, or causes of action made or brought by any such Releasing Party
against any Released Party in violation of the terms and conditions of this Severance Agreement. In the event that any Releasing Party
brings a suit against any Released Party in violation of this covenant, the Party to whom such Releasing Party relates agrees to pay any
and all costs of Released Parties, including attorneys' fees, incurred by such Released Parties in challenging such action. Any
Released Party is an intended third-party beneficiary of this Severance Agreement.

8. <u>Affirmations.</u> Each Party as a Releasing Party affirms that such Party has not filed, caused to
be filed, or presently is a party to any claim, complaint, or action against any Released Party in any forum or form and should any such
charge or action be filed by any Releasing Party or by any other person or entity on any Releasing Party's behalf involving matters
covered by this Severance Agreement, such Party agrees to promptly give the agency or court having jurisdiction a copy of this Severance
Agreement and inform them that any such claims any such Releasing Party might otherwise have had are now settled. This is a compromise
and settlement of potential or actual disputed claims and is made solely for the purpose of avoiding the uncertainty, expense, and inconvenience
of future litigation. Neither this Severance Agreement nor the furnishing of any consideration concurrently with the execution hereof
shall be deemed or construed at any time or for any purpose as an admission by any Party of any liability or obligation of any kind. Any
such liability or wrongdoing is expressly denied. The Parties acknowledge that this Severance Agreement was reached after good faith settlement
negotiations and after each Party had an opportunity to consult legal counsel. This Severance Agreement extends to, and is for the benefit
of, the Parties, their respective successors, assigns and agents and anyone claiming by, through or under the Parties.

9. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Confirmation of Representations</u>. Each Party (the "Representing Party") represents and warrants to the other Party that the representations and warranties
as given by the Representing Party in the Severance Agreement are true and correct as of the Severance Date.

&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Additional Representations and Warranties of Mr. Moroney</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1. Mr. Moroney understands and agrees that the consummation of the transactions herein,
including the delivery of the Shares to Mr. Moroney as contemplated herein, constitutes the offer and sale of securities under the Securities
Act of 1933 as amended (together with the rules and regulations thereunder, the "Securities Act") and applicable state statutes
and that the Shares are being acquired for Mr. Moroney's own account and not with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.2. Mr. Moroney is an "accredited investor" as that term is defined in
Rule 501(a) of Regulation D under the Securities Act. Mr. Moroney understands that the Shares are being offered and sold to Mr. Moroney
in reliance upon specific exemptions from the registration requirements of United States federal and state securities Laws and that Zoned
is relying upon the truth and accuracy of, and Mr. Moroney's compliance with, the representations, warranties, agreements, acknowledgments
and understandings of Mr. Moroney set forth herein and in the Severance Agreement in order to determine the availability of such exemptions
and the eligibility of Mr. Moroney to acquire the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.3. Mr. Moroney and his advisors, if any, have been furnished with all materials relating
to the business, finances and operations of Zoned and materials relating to the offer and sale of the Shares which have been requested
by Mr. Moroney or his advisors. Mr. Moroney and his advisors, if any, have been afforded the opportunity to ask questions of Zoned. Mr.
Moroney understands that his investment in the Shares involves a significant degree of risk. Mr. Moroney, either alone or together with
his representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. Mr. Moroney
is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.4. Mr. Moroney is acquiring the Shares for his own account as principal, not as a
nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole
or in part and no other person has a direct or indirect beneficial interest in the Shares. Further, Mr. Moroney does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person,
with respect to the Shares. Mr. Moroney understands that the sale or re-sale of the Shares has not been and is not being registered under
the Securities Act or any applicable state securities laws, and the Shares may not be transferred unless the Shares are sold pursuant
to an effective registration statement under the Securities Act or there is an exemption from registration available for such sale or
re-sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.5. Mr. Moroney understands that no United States federal or state agency or any other
governmental or state agency has passed on or made recommendations or endorsement of the Shares or the suitability of the investment in
the Shares nor have such authorities passed upon or endorsed the merits of the transactions set forth herein.

10. <u>Additional Acknowledgements and Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;10.1. Mr. Moroney states and represents that he has carefully read this Severance Agreement
and knows the contents thereof, and that Mr. Moroney has executed the same as his own free act and deed.

&nbsp;&nbsp;&nbsp;&nbsp;10.2. To accept the terms of this Severance Agreement, Mr. Moroney must return a signed
copy of this Severance Agreement to Zoned to the address as set forth in the Agreement. To revoke his signature and the Severance Agreement,
Mr. Moroney shall notify Zoned pursuant to Section ‎11 by no later than 5:00 p.m. EST on the seventh (7th) day after Mr. Moroney
signs this Severance Agreement. This Severance Agreement becomes effective upon the expiration of seven (7) days after Mr. Moroney
signs this Severance Agreement provided Mr. Moroney has not sooner revoked his signature.

&nbsp;&nbsp;&nbsp;&nbsp;10.3. Mr. Moroney agrees that he is solely liable for any and all income tax, other taxes,
or assessments owed by Mr. Moroney in connection with any payment made pursuant to this Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;10.4. **Mr. Moroney acknowledges that he has carefully read and fully understands all the provisions of this Severance Agreement, that Mr. Moroney has been given twenty-one (21) days in which to consider this Severance Agreement and will have seven (7) days to revoke acceptance after signing this Severance Agreement. In the event Mr. Moroney signs this Severance Agreement and returns it to Zoned in less than such 21-day period, Mr. Moroney acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Severance Agreement. The Parties agree that changes to this Severance Agreement, whether material or immaterial, do not restart the running of the 21-day period. Mr. Moroney is advised to consult with an attorney of Mr. Moroney's own choosing before signing this Severance Agreement. Mr. Moroney further acknowledges that he has had the opportunity to ask questions about each and every provision of this Severance Agreement and that Mr. Moroney fully understands the effect of the provisions contained in this Severance Agreement upon his legal rights. The above notwithstanding, Mr. Moroney acknowledges that Zoned will not accept as valid any Mr. Moroney signature occurring prior to the Severance Date and Mr. Moroney covenants not to execute this Severance Agreement prior to such date.** 

11. <u>Notices</u>. Any notice or other communications required or permitted hereunder
shall be given in accordance with the provisions of the Agreement.

12. <u>Governing Law.</u> This Severance Agreement, and all matters based upon, arising
out of or relating in any way to the transactions completed herein, including, without limitation, tort claims, statutory claims and contract
claims, shall be interpreted, construed, governed and enforced under and in accordance with the substantive and procedural laws of the
State of Nevada in each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements
performed wholly within the State of Nevada.

13. <u>Applicability.</u> The provisions of the Agreement as set forth therein as being
applicable to this Severance Agreement shall so apply to this Severance Agreement. Upon execution of this Severance Agreement, this Severance
Agreement and the Agreement shall be read, interpreted and enforced together as the joint and combined agreements of the Parties.

14. <u>Construction</u>. The headings contained in this Severance Agreement are for
reference purposes only and will not affect in any way the meaning or interpretation of this Severance Agreement.

15. <u>Amendment or Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;15.1. This Severance Agreement may be amended, modified, superseded, terminated or cancelled,
and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed
by both of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;15.2. Every right and remedy provided herein shall be cumulative with every other right
and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the
performance of any obligation by another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter
occurring or existing.

&nbsp;&nbsp;&nbsp;&nbsp;15.3. Neither any failure or delay in exercising any right or remedy hereunder or in
requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any Party from enforcing
any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any
obligation of that Party or impairs any right of the Party giving such notice or making such demand, including any right to take any action
without notice or demand not otherwise required by this Severance Agreement. No exercise of any right or remedy with respect to a breach
of this Severance Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with
respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

16. <u>Counterparts</u>. This Severance Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which taken together shall be but a single instrument. A signed copy of this Severance
Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery
of an original signed copy of this Severance Agreement.

 

*[Signature Pages Follow]*

 

IN WITNESS WHEREOF, the Parties have executed this Severance Agreement as of the Severance Date.

---

| | |
|:---|:---|
| Zoned Properties, Inc. | Zoned Properties, Inc. |
| By: |  |
| Name: | Bryan McLaren |
| Title: | Chief Executive Officer |
| By: |  |
| Name: | Cole Stevens |
| Title: | Chairman of the Special Transactions Committee of the Board of Directors of Zoned Properties, Inc. |
| Patrick Moroney | Patrick Moroney |
| By: |  |
| Name: | Patrick Moroney |

---

## Exhibit 99.1

**Exhibit 99.1**

**Zoned Properties Announces Entry into Definitive Agreements for Sale of 100% of Company Assets and Operations,<br> Positioning for Significant Shareholder Value Return**

 

SCOTTSDALE, Ariz., January 20, 2026 /AccessWire/ -- Zoned Properties®, Inc. ("Zoned Properties" or the "Company") (OTCQB: ZDPY), a technology-driven property investment company for emerging and highly regulated industries, including legalized cannabis, today announced that the Company has entered into multiple definitive agreements for the sale and liquidation of 100% of Zoned Properties' assets and operations.

**<u>Transaction Highlights:</u>**

● The Company has formed a Special Transactions Committee consisting of its three independent directors that has negotiated and overseen the transactions on behalf of shareholders.

● The definitive agreements include (i) a short-term exclusive option for the sale of the Chino Valley, Green Valley, and Kingman properties in Arizona (the "CGK Properties Option") for $9 million; and (ii) an asset purchase agreement with Zoned Properties' management team for a management buyout of all remaining assets and operations (the "MBO APA") for $7 million.

● The definitive agreements contemplate the sale and liquidation of 100% of the Company's assets and operations for a gross sale price of $16 million. Additionally, if the CGK Properties Option is not exercised by the optionee, then Zoned Properties' management team has agreed to include those properties in the MBO APA at the same valuation.

● The Special Transactions Committee plans to engage a third party expert to complete a fairness opinion related to the MBO APA.

● The MBO APA is subject to shareholder approval. The Company expects to hold a shareholder meeting to approve the MBO APA in the coming months.

● Assuming that the MBO APA is approved by shareholders, the sale and liquidation of the Company's assets and operations is expected to take place by the end of the calendar year.

● Assuming that the MBO APA is approved by shareholders and the Company can successfully sell and liquidate 100% of the Company's assets and operations, the Company expects to pay off any remaining debt, settle any remaining accounts and agreements, liquidate the Company's outstanding preferred shares, and then distribute the net available balance of cash to shareholders as a return of capital through a special dividend.

● Assuming that the MBO APA is approved by shareholders and the Company can successfully sell and liquidate 100% of the Company's assets and operations, the Board of Directors intends to subsequently complete a reverse merger or other transaction involving the public company.

**<u>Management Commentary:</u>**

"Over the past decade, Zoned Properties has worked to pioneer real estate services and development in the emerging and regulated cannabis industry," said Bryan McLaren, Chief Executive Officer of Zoned Properties. "While we have built a strong organization that has surpassed many milestones, the challenges of operating as a public company in the cannabis space have limited our ability to deliver direct value to our shareholders. We believe that liquidating the Company's assets and operations and returning substantial capital to shareholders through a special dividend represents the optimal path forward to reward our loyal investors."

"Following an exhaustive review of the Company's strategic alternatives in a challenging industry environment, the Special Transactions Committee has concluded that the planned liquidation of the Company's assets and operations is in the best interests of the Company's shareholders and will maximize shareholder value," said Cole Stevens, Independent Director and Chair of the Special Transactions Committee of Zoned Properties. "We are confident that these transactions will deliver the greatest possible value to shareholders, compared to any other available option."

**About Zoned Properties, Inc. (OTCQB: ZDPY):**

Zoned Properties Inc. ("Zoned Properties" or the "Company") (OTCQB: ZDPY) is a technology-driven property investment company focused on acquiring value-add real estate within the regulated cannabis industry in the United States.

Headquartered in Scottsdale, Arizona, Zoned Properties is redefining the approach to commercial real estate investment through its standardized investment process backed by its proprietary property technology. Zoned Properties has developed a national ecosystem of real estate services to support its real estate development model, including a commercial real estate brokerage and a real estate advisory practice. With a decade of national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties addresses the specific needs of a modern market in highly regulated industries. The Company targets commercial properties that face unique zoning or development challenges, identifies solutions that can potentially have a major impact on their commercial value, and then works to acquire the properties while securing long-term, absolute-net leases.

Zoned Properties targets commercial properties that can be acquired and rezoned for specific purposes, including the regulated and legalized cannabis industry. It does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended. For more information, call 877-360-8839 or visit www.ZonedProperties.com.

X: <u>@ZonedProperties</u>

LinkedIn: <u>@ZonedProperties</u>

**Safe Harbor Statement**

*This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.*

**Investor Relations**

Zoned Properties, Inc.

Bryan McLaren

Tel (877) 360-8839

Investors@zonedproperties.com

www.zonedproperties.com