Document:

htgm-ex1020_695.htm

Exhibit 10.20

THIRD AMENDMENT TO LEASE AGREEMENT

SUITE 100 LEASE

 

This third Amendment to Lease Agreement (“Amendment”) is dated to be effective as of the 8th of December, 2020 (“Effective Date”), by and between Pegasus Properties, L.P., a Wisconsin limited partnership (“Lessor”), and HTG Molecular Diagnostics, Inc., a Delaware corporation, formerly known as High Throughput Genomics, Inc. (“Lessee”).

 

RECITALS

 

A.Lessor and Lessee entered that certain Standard Commercial-Industrial Multi Tenant Triple Net Lease, dated May 11, 2011 (and as amended by that First Amendment to Lease Agreement on August 4, 2015, the “Suite 100 Lease”), pursuant to which Lessor leases to Tenant approximately 17500 square feet of office/warehouse/light manufacturing/R&D space (“Suite 100 Premises”) in that certain building that is commonly known as 3430 E. Global Loop, Suite 100, Tucson, Arizona 86706, as more particularly described in the Suite 100 Lease. 

 

B.For reference purposes only, Lessor and Lessee also entered into that certain Standard Commercial-Industrial Multi Tenant Triple Net Lease, dated July 11th 2008 (and as amended by that First Amendment to Lease Agreement on August 4, 2015, specific to Suite 300, the “Suite 300 Lease”), pursuant to which Lessor leases to Lessee approximately 12,600 square feet of office/warehouse/light manufacturing/R&D  space (“Suite 300 Premises”) in that certain building that is commonly known as 3430 E. Global Loop, Suite 100, Tucson, Arizona 86706, as more particularly described in the Suite 300 Lease.  The parties acknowledge that the Suite 300 Lease constitutes a separate legal obligation from the Suite 100 Lease for all purposes except as expressly set forth herein.

 

C.The Second Amendment as of January 28th 2019 to the Suite 100 Lease added approximately 7,000 square feet of office/warehouse/light manufacturing/R&D space (Suite 200), to the Suite 100 Lease and addressed certain improvements to be constructed by Lessee in the Suite 200 Premises.

 

D.         Lessor and Lessee now desire to, among other things, extend the lease term, amend the option to renew the Suite 300 Lease.

 

E.All capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Suite 100 Lease.

 

Now therefore, in consideration of the covenants and obligations contained herein, Lessor and Lessee agree to amend the Suite 100 Lease as follows:

 

 

 

 

 

 

 

 

 

 

AGREEMENTS

 

1.Recitals. The Recitals above are true and correct and form a part of this Amendment. 

 

2.Extension of Term.  The Term of the Suite 100 Lease is extended until 11:59 PM, Arizona time, on January 31st, 2022, which will also be referred to as the Expiration Date referred to in the Suite 100 Lease, subject to the renewal options discussed below.

 

3.Renewal Options.  Section 3.2 of the Suite 100 Lease is replaced, and will read in its entirety, as follows:  Lessee shall have one option to renew the Suite 100 Lease for an additional period of three (3) years upon the same terms and conditions of the Suite 100 Lease  as amended herein (“Renewal Term”), except that the Lease Rate will be set at rates currently applicable for like/kind buildings within the market but in no event less than the last rent rate (incl. annual increases if any) paid by Lessee. If Lessee elects to exercise such option to renew, Lessee shall give Lessor written notice of exercise of the option not later than October 31st 2021.

 

4.Base Rent and Term for Suite 200. Commencing on the February 1st 2021, and continuing through January 31st, 2022 unless otherwise extended pursuant to the terms of the Suite 100 Lease and this Amendment, Lessee will pay Lessor monthly base rent for the Suite 100/200 Premises equal to twenty one thousand two hundred forty two and no/100 dollars ($21,242.00), payable in accordance with the terms and conditions of the Suite 100 Lease.

 

5.Lessee Improvements. Under item 7 of the Second Amendment Lessee was entitled to a maximum of $100,000 of Suite 200 improvements amortized over 5 years at an interest rate of 5%.  Due to shortened renewal term in the Third Lease Amendment the Lessor will limit the amount of Lessor’s reimbursement for Lessee’s planned improvements to a total amount of   

$ 50,000. Additional $50,000 will be available if and when the Renewal Option under item 3 would be exercised by the Lessee. When Lessee initiates such improvements Lessee must notify Landlord of their nature and cost at least 30 days prior to starting a modification or alteration. The amount actually paid by Landlord for the Suite 200 Improvements will be paid to Landlord as additional Suite 100/200 Rent in equal monthly payments amortized over five years at an interest rate of 5 %, beginning on the first full month after the Suite 200 Improvements are completed. Should Lessee terminate the Suite 100 Lease at any time before the Expiration Date or choose to not renew the Suite 100 Lease within the timeframe permitted, the unpaid balance of Suite 200 Improvements not repaid to Landlord as additional rent (less interest) will be due to Lessor within 15 days of termination of the Suite 100 Lease. 

 

6.No Other Changes. Except as modified herein and in the Second Lease Amendment, all terms and conditions of the Suite 100 Lease shall remain unchanged and in full force and effect.

 

 

 

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Page 2 of 3

 

 

 

IN WITNESS WHEREOF the parties have caused their respective duly authorized representatives to execute this Amendment as of the Effective Date.

 

		
	
LESSOR:

 

Pegasus Properties, L.P.

 

 

By:/s/ Matt Schmidt

Matt Schmidt

Managing Partner
	
LESSEE:

 

HTG Molecular Diagnostics

 

 

By:/s/ Shaun McMeans

Shaun McMeans

SVP and Chief Financial Officer

 

 

Page 3 of 3PURCHASE AND SALE AGREEMENT

 

This Purchase and Sale Agreement (the “Agreement”) is made and entered into by and between Verde Bio Holdings, Inc. with an address of 5 Cowboys Way, Suite 300, Frisco, Texas 75034 (hereinafter referred to as “Buyer”), and _____________________, with an address of _______________________________________, (hereinafter referred to as “Seller”).  Buyer and Seller are sometimes referred to below individually as a “Party” or collectively as the “Parties”; and

 

WHEREAS, Seller owns or has the right to sell the mineral & royalty interests described on Exhibit “A” attached hereto and made a part hereof.

 

WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to Buyer, those certain interests in oil and gas leases that are defined and described as “Properties” hereinbelow, subject to and on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements contained herein and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller agree as follows:

 

Subject to the terms, conditions and provisions of this Agreement, Seller agrees to sell, assign and convey to Buyer  an undivided 100% of Seller’s right, title and interest in and to Seller’s oil, gas and other mineral rights in and to the Properties more specifically described on the attached Exhibit A (“the Properties”) including but not limited to oil royalty, gas royalty, overriding royalty interest, mineral interest and other similar interests which may be produced from said oil, gas and mineral leases and lands1.

 

Terms of this transaction are as follows:

 

1. The purchase price is $127,500.00 in cash, subject to adjustment due to revenue review and title review as mutually agreed upon by Buyer and Seller.

  

2. The closing shall occur on or before March 25, 2021, (the "Closing Date") Prior to the Closing Date Buyer will have the exclusive right to conduct its review of the Properties, including title.  As a condition to the Transaction, Buyer must be fully satisfied, in its sole and absolute discretion, with the results of its due diligence investigation. Buyer’s sole remedy for any alleged breach of this agreement, including but not limited to failure of title to one or more of the Properties, shall be termination of this agreement.  If additional title review is required by the terms of this Agreement, the Closing Date may be extended without amendment by not more than 14 days to accommodate delays attributable to title review. 

 

3. Seller represents that as of the Closing Date, the Properties are free and clear of any and all known liens, mortgages and encumbrances created by Seller. All known mortgages, liens or 

1 The description of the Properties on Exhibit “A” is subject to change pending the Parties verification of title thereto.

encumbrances created by Seller which affect the Properties will either be released or paid-off by Seller on or before the Closing Date. 

 

4.  On the Closing Date, Seller shall execute and deliver to Buyer, and Buyer shall receive, one or more instruments of conveyance.  Such Conveyance of Mineral and Royalty Interest may be hand delivered, or made by Certified U.S. mail or Federal Express (FedEx) to the Buyer.

 

5. Seller shall, upon the reasonable request of the Buyer, execute and deliver all deeds, transfer orders, division orders, letters-in-lieu, curative documents and such other documents as our reasonably necessary to carry out the purposes of this Agreement whether before or after the Closing Date. Seller shall also execute any other conveyance documents as required by Buyer, to the satisfaction of Buyer, or its assigns, in the performance of this Agreement and in order to close on the Properties by the Closing Date.

 

6. Buyer asserts that it is an “accredited investor” within the meaning of Rule 501 under the Securities Act of 1933, as amended. Buyer is financially able to bear the economic risks of acquiring the Properties, including the risk of total investment loss and understands the illiquid nature of this asset class. Buyer is a sophisticated buyer and has such knowledge and experience in the purchase and sale of mineral and royalty interests so as to be capable of evaluating the merits and risks of and making an informed business decision with regard to the acquisition of said purchased interests. 

 

7. The Effective Date of said transaction shall be Production Effective Date of March 1, 2021. Buyer shall be entitled to all revenue from production from the Properties occurring on or after the Effective Date. 

 

8. Buyer reserves the option and right to assign this PSA to another Buyer controlled entity to fulfill the obligations and receive the benefits of this agreement with Seller.

 

9. Prior to the Closing Date or termination of this Agreement, Seller shall not offer the Property for sale to any person or entity, or accept or negotiate any offer to purchase by any person, entity, or other party. 

 

10.  All notices given by Buyer to Seller or by Seller to Buyer, shall be in writing and shall be deemed delivered when actually received, or, if earlier and whether or not actually received, (i) if delivered by courier or in person, when left with any person at the address reflected below, if addressed as set forth below, (ii) if by overnight courier service (such as, by way of example but not limitation, U.S. Express Mail or Federal Express) with instructions for delivery on the next business day, one (1) business day after having been deposited with such courier, addressed as reflected below, and (iii) if delivered by mail, three days after deposited in a Post Office or other depository under the care or custody of the United States Postal Service, enclosed in a wrapper with proper postage affixed (as a certified or registered item, return receipt requested). The addresses of the Parties are the address set out in this Agreement. 

 

11. This Agreement shall be governed by the laws of the State of Texas, without regard to its conflict of law principles.  All disputes arising from or relating to this Agreement shall be 

adjudicated in a state district court sitting in Denton County, Texas, and each Party hereby consents to such court's jurisdiction and to such venue.

 

12. This Purchase and Sales Agreement and the rights, duties and obligations represented hereby shall be binding upon the seller hereto, their respective heirs, administrators, executors, representatives, successors and assigns.     

 

ACCEPTED AND AGREED TO, this 18th day of March, 2021

 

 

 

SELLER

 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	Its:

	 

	 

	 

	 

	 

 

	 

	 

	BUYER

	 

	 

	 

	 

	 

	Verde Bio Holdings, Inc.

	 

	 

	 

	 

	 

	By: Scott A. Cox, CEO

	 

	 

	 

Exhibit “A” Lands

 

Exhibit “A” attached to and made part of that certain Purchase and Sale Agreement for purchase of mineral and royalty interests dated March 18, 2021 by and between Verde Bio Holdings, Inc. (“Buyer”) and _________________________ (“Seller”).

 

An undivided 100% of all of Seller’s right, title, and interest in the following: 

 

Mineral Interest located in Desoto and Sabine Parish, LA 

 

Mineral Interest located in Reeves County, Texas

 

To be further defined by Seller at closing

 

It is the intention to convey an undivided 100% interest in the interests described above. This list is not intended to be final and is subject to change. Legal Descriptions and exact interests will be identified in Due Diligence.

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