Document:

Exhibit 10.1

 

THIRD AMENDMENT TO LEASE AGREEMENT

 

THIS THIRD AMENDMENT
TO LEASE AGREEMENT (this “Amendment”) is entered into and made effective as of this 24th day of February, 2020
(the “Amendment Effective Date”), by and between IIP-MA 1 LLC, a Delaware limited liability company (“Landlord”),
and PharmaCannis Massachusetts Inc., a Massachusetts corporation (“Tenant”).

 

RECITALS

 

A.               
WHEREAS, Landlord and Tenant are parties to that certain Lease Agreement dated as of May 31, 2018, as amended by that certain
First Amendment to Lease Agreement dated as of November 13, 2018 and as amended by that certain Second Amendment to Lease Agreement
dated as of September 24, 2019 (as so amended, the “Existing Lease”), whereby Tenant leases the premises from
Landlord located at 465 Hopping Brook Road, Holliston, Massachusetts 01746;

 

B.                
WHEREAS, concurrently with the execution of this Amendment, Tenant and Landlord shall execute an amendment to the Development
Agreement; and

 

C.                
WHEREAS, Landlord and Tenant desire to modify and amend the Existing Lease only in the respects and on the conditions hereinafter
stated.

 

AGREEMENT

 

NOW, THEREFORE, Landlord
and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.                 
Definitions. For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Existing
Lease unless otherwise defined herein. The Existing Lease, as amended by this Amendment, is referred to collectively herein as
the “Lease.” From and after the date hereof, the term “Lease,” as used in the Existing Lease, shall
mean the Existing Lease, as amended by this Amendment.

 

2.                 
Base Rent. Section 2.1 of the Existing Lease is hereby amended and restated in its entirety as follows:

 

“2.1.             The monthly Base
Rent shall be equal to Three Hundred Seventy-Five Thousand Eight Hundred Six and 78/100 Dollars ($375,806.78), subject to subsequent
adjustment under this Lease (as may be adjusted, the “Monthly Base Rent Amount”).”

 

3.                 
Security Deposit. Section 2.2 of the Existing Lease is hereby amended and restated in its entirety as follows:

 

“Security
Deposit”: One Million One Hundred Five Thousand Six Hundred Twenty-Five Dollars ($1,105,625.00). The parties
acknowledge that Nine Hundred Forty-One Thousand Two Hundred Thirty-Five Dollars ($941,235.00) of the Security Deposit have
been funded as of the date hereof, and the remaining portion shall be paid by Tenant (using its own funds) in installments in
accordance with this Section 2.2. Within two (2) Business Days following the date that Landlord makes any Construction
Payment (as defined in the Development Agreement) to Tenant, Tenant shall deliver to Landlord a proportionate amount of the
Security Deposit as determined based upon the percentage derived from dividing the amount of such Construction Payment by
$30,500,000, until such time as the Security Deposit has been fully funded. As an example, if the amount of the Construction
Payment made to Tenant under the Development Agreement is equal to $6,100,000 (i.e. 20% of $30,500,000), then Tenant shall be
required to pay an amount equal to $221,125.00 within such two (2) Business Day time period, which amount shall be retained
by Landlord as part of the Security Deposit. Notwithstanding the foregoing (and regardless of the amount of Construction
Payments then requested to be funded by Tenant), the full Security Deposit shall be funded by Tenant no later than March 31,
2020.

 

     

     

    

 

4.                 
Annual Escalation. Section 5.2.2 of the Existing Lease is hereby amended and restated in its entirety as follows:

 

“Annual Escalation.
Base Rent payable under this Lease shall be subject to an annual upward adjustment of the greater of (a) 75% of CPI or (b) three
and one-quarter percent (3.25%) of the then-current Base Rent. The next annual adjustment with respect to Two Hundred Thirty Thousand
Eight Hundred Six and 77/100 Dollars ($230,806.77) of the current Base Rent shall be May 31, 2020 (“Tranche One Adjustment
Date”), and the next annual adjustment with respect to the remaining One Hundred Forty-Five Thousand and 01/100 Dollars
($145,000.01) of the current Base Rent shall be September 24, 2020 (“Tranche Two Adjustment Date”). Thereafter,
subsequent adjustments for each tranche of Base Rent shall become effective on every successive annual anniversary of the Tranche
One Adjustment Date or Tranche Two Adjustment Date, as applicable, during the Term, including any Extension Periods.”

 

5.                 
Broker. Each of Tenant and Landlord represents and warrants that it has not dealt with any broker or agent in the
negotiation for or the obtaining of this Amendment and agrees to reimburse, indemnify, save, defend (at the other party’s
option and with counsel reasonably acceptable to other party, at the indemnifying party’s sole cost and expense) and hold
harmless the indemnifying party for, from and against any and all cost or liability for compensation claimed by any such broker
or agent employed or engaged by it or claiming to have been employed or engaged by it.

 

6.                 
No Default. Each of Tenant and Landlord represents, warrants and covenants that, to the best of its knowledge, Landlord
and Tenant are not in default of any of their respective obligations under the Existing Lease and no event has occurred that, with
the passage of time or the giving of notice (or both) would constitute a default by either Landlord or Tenant thereunder.

 

7.                 
Effect of Amendment. Except as modified by this Amendment, the Existing Lease and all the covenants, agreements,
terms, provisions and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed. In the event
of any conflict between the terms contained in this Amendment and the Existing Lease, the terms herein contained shall supersede
and control the obligations and liabilities of the parties.

 

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8.                 
Successors and Assigns. Each of the covenants, conditions and agreements contained in this Amendment shall inure
to the benefit of and shall apply to and be binding upon the parties hereto and their respective heirs, legatees, devisees, executors,
administrators and permitted successors and assigns and sublessees. Nothing in this section shall in any way alter the provisions
of the Lease restricting assignment or subletting.

 

9.                 
Miscellaneous. This Amendment becomes effective only upon execution and delivery hereof by Landlord and Tenant. The
captions of the paragraphs and subparagraphs in this Amendment are inserted and included solely for convenience and shall not be
considered or given any effect in construing the provisions hereof. All exhibits hereto are incorporated herein by reference. Submission
of this instrument for examination or signature by Tenant does not constitute a reservation of or option for a lease, and shall
not be effective as a lease, lease amendment or otherwise until execution by and delivery to both Landlord and Tenant.

 

10.             
Authority. Tenant guarantees, warrants and represents that the individual or individuals signing this Amendment have
the power, authority and legal capacity to sign this Amendment on behalf of and to bind all entities, corporations, partnerships,
limited liability companies, joint venturers or other organizations and entities on whose behalf such individual or individuals
have signed.

 

11.             
Counterparts; Facsimile and PDF Signatures. This Amendment may be executed in one or more counterparts, each of which,
when taken together, shall constitute one and the same document. A facsimile or portable document format (PDF) signature on this
Amendment shall be equivalent to, and have the same force and effect as, an original signature.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

    	 	3	 

     

    

 

IN WITNESS WHEREOF,
Landlord and Tenant have executed this Amendment as of the date and year first above written.

 

	LANDLORD:
	 	 	 	 
	IIP-MA 1
    LLC	 
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Brian Wolfe	 
	Name:	 	Brian Wolfe	 
	Title:	 	Vice President, General
    Counsel and Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	TENANT:	 
	 	 	 	 
	PHARMACANNIS
    MASSACHUSETTS, INC.	 
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Brett Novey	 
	Name:	 	Brett Novey	 
	Title:	 	PresidentExhibit 10.2

 

THIRD AMENDMENT TO DEVELOPMENT AGREEMENT

 

THIS THIRD AMENDMENT
TO DEVELOPMENT AGREEMENT (this “Amendment”) is entered into as of this 24th day of February, 2020, by and between
IIP-MA 1 LLC, a Delaware limited liability company (“Landlord”), PharmaCannis Massachusetts Inc., a Massachusetts
corporation (“Tenant”), and IIP Operating Partnership, LP, a Delaware limited partnership (“Parent
Company”).

 

RECITALS

 

A.               
WHEREAS, Landlord, Tenant and Parent Company are parties to that certain Development Agreement dated May 31, 2018, as amended
(as so amended, the “Existing Development Agreement”), providing for Tenant’s construction and development
of certain industrial and greenhouse Improvements on the Land and for Landlord’s payment or reimbursement to Tenant for the
costs of completing the Improvements up to the Construction Contribution Amount, subject to and in accordance with the terms of
the Existing Development Agreement and the Lease, for the property located at 465 Hopping Brook Road, Holliston, Massachusetts
01746;

 

B.                
WHEREAS, concurrently with the execution of this Amendment, Tenant and Landlord shall execute an amendment to the Lease;
and

 

C.                
WHEREAS, Landlord, Tenant and Parent Company desire to modify and amend the Existing Development Agreement only in the respects
and on the conditions hereinafter stated.

 

AGREEMENT

 

NOW, THEREFORE, Landlord,
Tenant and Parent Company, in consideration of the mutual promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.                 
Definitions. For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Existing
Development Agreement unless otherwise defined herein. The Existing Development Agreement, as amended by this Amendment, is referred
to collectively herein as the “Development Agreement.” From and after the date hereof, the term “Development
Agreement,” as used in the Existing Development Agreement and Lease, shall mean the Existing Development Agreement, as amended
by this Amendment.

 

2.                 
Definitions. The definition of “Construction Contribution Amount” is hereby amended and restated
in its entirety as follows:

 

““Construction
Contribution Amount” shall mean an amount not to exceed Twenty-Seven Million Five Hundred Thousand Dollars ($27,500,000).”

 

3.                 
No Default. Each of Tenant and Landlord represents, warrants and covenants that, to the best of its knowledge, Landlord
and Tenant are not in default of any of their respective obligations under the Existing Development Agreement and no event has
occurred that, with the passage of time or the giving of notice (or both) would constitute a default by either Landlord or Tenant
thereunder.

 

    	 	 	 

     

    

 

4.                 
Effect of Amendment. Except as modified by this Amendment, the Existing Development Agreement and all the covenants,
agreements, terms, provisions and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed.
In the event of any conflict between the terms contained in this Amendment and the Existing Development Agreement, the terms herein
contained shall supersede and control the obligations and liabilities of the parties.

 

5.                 
Successors and Assigns. Each of the covenants, conditions and agreements contained in this Amendment shall inure
to the benefit of and shall apply to and be binding upon the parties hereto and their respective heirs, legatees, devisees, executors,
administrators and permitted successors and assigns and sublessees. Nothing in this section shall in any way alter the provisions
of the Development Agreement restricting assignment or subletting.

 

6.                 
Miscellaneous. This Amendment becomes effective only upon execution and delivery hereof by Landlord and Tenant. The
captions of the paragraphs and subparagraphs in this Amendment are inserted and included solely for convenience and shall not be
considered or given any effect in construing the provisions hereof.

 

7.                 
Authority. Tenant guarantees, warrants and represents that the individual or individuals signing this Amendment have
the power, authority and legal capacity to sign this Amendment on behalf of and to bind all entities, corporations, partnerships,
limited liability companies, joint venturers or other organizations and entities on whose behalf such individual or individuals
have signed.

 

8.                 
Counterparts; Facsimile and PDF Signatures. This Amendment may be executed in one or more counterparts, each of which,
when taken together, shall constitute one and the same document. A facsimile or portable document format (PDF) signature on this
Amendment shall be equivalent to, and have the same force and effect as, an original signature.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

 

    	 	2	 

     

    

 

IN WITNESS WHEREOF,
Landlord, Tenant and Parent Company have executed this Amendment as of the date and year first above written.

 

	LANDLORD:
	 	 	 	 
	IIP-MA 1
    LLC	 
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Brian Wolfe	 
	Name:	 	Brian Wolfe	 
	Title:	 	Vice President, General
    Counsel and Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	TENANT:	 
	 	 	 	 
	PHARMACANNIS
    MASSACHUSETTS, INC.
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Brett Novey	 
	Name:	 	Brett Novey	 
	Title:	 	President	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	PARENT
    COMPANY:	 
	 	 	 	 
	IIP OPERATING
    PARTNERSHIP, LP	 
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Brian Wolfe	 
	Name:	 	Brian Wolfe	 
	Title:	 	Vice President, General
    Counsel and Secretary

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