Document:

ex_279282.htm

 

Exhibit 4.6

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

The following description of capital stock of CLS Holdings USA, Inc. (the “Company,” “we,” “us,” or “our”) is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles of Incorporation”), and Amended and Restated Bylaws (the “Bylaws”), each of which are incorporated by reference as exhibits to the Annual Report on Form 10-K as to which this Exhibit 4.6 is also an exhibit. This description is qualified in its entirety by, and should be read in conjunction with, the Articles of Incorporation and Bylaws.

 

Authorized Share Capital

 

The authorized capital of the Company consists of 750,000,000 shares of common stock, par value $0.0001 per share (the “Common Stock”) and 20,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”) issuable in series, which may contain the rights, privileges and restrictions as determined by our board of directors.

 

Common Stock

 

Holders of shares of Common Stock are entitled to receive notice of any meetings of stockholders of the Company and to attend and to cast one vote per share of Common Stock at all such meetings. Holders of Common Stock are entitled to receive on a pro rata basis such dividends, if any, as and when declared by the board of directors of the Company at its discretion from funds legally available therefor and upon the liquidation, dissolution or winding up of the Company are entitled to receive on a pro rata basis the net assets of the Company after payment of debts and other liabilities, in each case subject to the rights, privileges, restrictions and conditions attaching to any other series or class of shares ranking senior in priority to or pari passu with the holders of Common Stock with respect to dividends or liquidation. The Common Stock is not convertible or redeemable and has no preemptive, subscription, redemption or conversion rights, nor does it have any sinking or purchase fund provisions. There are no conversions, redemption, sinking fund or similar provisions regarding the shares of Common Stock.

 

Election of Directors

 

Our Articles of Incorporation provide that the board of directors be divided into three classes with each class serving a staggered three-year term. Holders of Common Stock do not have cumulative voting rights with respect to the election of directors and, accordingly, holders of a majority of our Common Stock entitled to vote in any election of directors may elect all directors standing for election.

 

 

 

 

 

Dividends

 

Dividends, if any, will be contingent upon our revenues and earnings, if any, capital requirements, and our financial condition. The payment of dividends, if any, will be within the discretion of our board of directors. We intend to retain earnings, if any, for use in our business operations and accordingly, our board of directors does not anticipate declaring any dividends in the foreseeable future.

 

Preferred Stock

 

The Articles of Incorporation and Bylaws contain provisions that authorize the issuance of shares of “blank check” preferred stock, which means our board of directors has broad authority to create classes of preferred stock and to determine voting, dividend, conversion and other rights with respect to each such class of preferred stock. In most cases, preferred stock will have rights that are senior to those of our Common Stock in at least some respects. Our board of directors may create and issue shares of preferred stock for future financings or in connection with certain types of acquisitions. In addition, our board of directors may issue preferred stock where appropriate to discourage a takeover attempt. Our board of directors has the authority to issue common and preferred shares without stockholder approval. The rights of the holders of Common Stock will be subject to, and may be adversely affected by, the rights of holders of Preferred Stock that may be issued in the future.ex_278938.htm

Exhibit 10.30A

 

Third Amendment to STANDARD INDUSTRIAL / COMMERCIAL SINGLE-TENANT LEASE - NET

 

This Third Amendment to Standard Industrial / Commercial Single Tenant Lease — Net (the “Third Amendment”) is made June 9, 2020 by and between SFC Leasing, LP, a California limited partnership (“Lessor”) and Serenity Wellness Growers, LLC, a Nevada limited liability company (“Lessee”).

 

RECITALS

 

Lessor and Lessee entered into a written lease agreement and Option to Purchase Lease Rider dated December 3, 2015 for the lease of approximately 22,000 square feet located at 203 E. Mayflower Avenue, North Las Vegas, Nevada 89030 (the “Premises”) and subsequent First Amendment dated January 12, 2016 (“First Amendment”), and subsequent Second Amendment dated August 22, 2016 (“Second Amendment”), (collectively the “Lease”).

 

TERMS

 

In consideration of the mutual agreement of said Lease herein contained, the Parties hereby agree to modifications of the Lease so illustrated in this Third Amendment.

 

Rent Abatement: In light of the coronavirus (“COVID-19”) pandemic and upon Lessee’s request, Lessor agreed to reduce Lessee’s monthly Base Rent from $29,000.00 to $25,000.00 for the months of April, May and June of 2020, equating to a $12,000.00 rent abatement (“Rent Abatement”). Lessee is not required to repay the Rent Abatement unless it Defaults on or Breaches the Lease.

 

Lease Extension and Base Rent Schedule: Pursuant to Section 52 of Addendum One, Lessee hereby exercises its option to extend the Lease Term from March 1, 2021 through February 28, 2026, whereby the Lease Expiration Date shall now be February 28, 2026. Lessee has requested Lessor to modify the monthly Base Rent Schedule as a material concession to Lessee. Lessor and Lessee have agreed to the following modified monthly Base Rent Schedule:

 

	
			July 1, 2020 – February 28, 2021

				
			$26,000.00 per month plus NNN

			
	
			March 1, 2021 – February 28, 2022

				
			$22,500.00 per month plus NNN

			
	
			March 1, 2022 – February 28, 2023

				
			$23,175.00 per month plus NNN

			
	
			March 1, 2023 – February 28, 2024

				
			$23,870.00 per month plus NNN

			
	
			March 1, 2024 – February 28, 2025

				
			$24,586.00 per month plus NNN

			
	
			March 1, 2025 – February 28, 2026

				
			$25,323.00 per month plus NNN

			

 

The above modified monthly Base Rent Schedule is applicable provided Lessee is not in Default or Breach of the Lease during the Lease Term. In the event Lessee is in Default or Breach of the Lease at any time during the Lease Term, Lessee shall owe Base Rent to Lessor as shown in the Second Amendment and as shown in Section 52 of Addendum One as though there were no Base Rent Schedule modifications after the Second Amendment.

 

Option to Extend: Lessee shall have the option to extend the term of the Lease for one (1) period of five (5) years (the “Extended Term Option”) at the then current Fair Market Value rent with annual increases of no more than three-percent (3%). The Extended Term Option shall be void unless Lessee provides written notice of its desire to exercise the option at least nine (9) months prior to the Lease Expiration Date and signs a Lease amendment to exercise such option at least six (6) months prior to the Lease Expiration Date.

 

Ratification: Except as herein modified, the Lease shall remain in full force and effect and any and all payments currently due under the Lease shall continue to be due until the new rental payments commence pursuant to the revised terms, as herein provided.

 

Authority. Lessee hereby covenants and warrants that (a) Lessee is in good standing under the laws of the State of Nevada, (b) Lessee has full corporate power and authority to enter into this Third Amendment and to perform all Lessee’s obligations under the Lease, as amended by this Third Amendment, and (c) each person (and all of the persons if more than one signs) signing this Third Amendment on behalf of Lessee is duly and validly authorized to do so.

 

Counterparts: This Third Amendment may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties hereto and delivered to the other.

 

 

 

 

Telecopy Execution and Delivery: A facsimile or email transmission of this Third Amendment may be executed by one or more parties hereto and an executed copy of this agreement may be delivered by one or more parties by facsimile or email transmission pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party, all parties agree to execute an original of this agreement as well as any facsimile, email transmission or other reproduction hereof.

 

Capitalized Terms: The capitalized terms contained herein shall have the same meanings as defined in the Lease.

 

In witness hereof, this Third Amendment has been executed by the Parties as of the date first written above.

 

	
			LESSOR:

				
			LESSEE

			
	 	 
	
			SFC Leasing, LP,

				
			Serenity Wellness Growers, LLC,

			
	
			a California Limited Partnership

				
			a Nevada limited Liability company

			
	 	 
	
			By:  /s/ Kelly Urata

				
			By:  /s/ Andrew J. Glashow

			
	 	 
	
			Print Name:   Kelly Urata

				
			Print Name:  Andrew J. Glashow

			
	 	 
	
			Title:   General Manager

				
			Title:  President and COO

			
	 	 
	
			Date:  June 17, 2020

				
			Date:  6-17-2020

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