Document:

Exhibit 10.1

 

THIS CONVERTIBLE DEBENTURE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR UNDER THE PROVISIONS OF ANY APPLICABLE
STATE SECURITIES LAWS, BUT HAS BEEN ACQUIRED BY THE REGISTERED HOLDER HEREOF FOR PURPOSES OF INVESTMENT AND IN RELIANCE ON STATUTORY
EXEMPTIONS UNDER THE 1933 ACT, AND UNDER ANY APPLICABLE STATE SECURITIES LAWS.  THIS DEBENTURE MAY NOT BE SOLD, PLEDGED,
TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER PROVISIONS OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT; AND IN THE CASE OF AN EXEMPTION, ONLY IF THE COMPANY HAS RECEIVED AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION OF THIS DEBENTURE.

 

KCB JADE HOLDINGS, LLC

 

	Issue
Date: March 19, 2020	
        $100,000.00 (the “Principal”)

 

CONVERTIBLE DEBENTURE

 

KCB JADE Holdings, LLC, a Delaware
limited liability company (the “Company”), pursuant to this Convertible Debenture (this “Debenture”) for
value received, hereby promises to pay to the order of Zoned Properties, Inc., a Nevada corporation, or registered assigns (the
“Holder”) on the Maturity Date as hereinafter defined, at the principal offices of the Company, the principal sum set
forth above (the “Principal”), and to pay interest on the outstanding principal sum at the rate of six and one/half
percent (6.5%) per annum (the “Interest Rate”).  The Maturity Date as defined herein shall be five (5) years
from the Issue Date as set forth above (i.e. March 19, 2025) (the “Maturity Date”). Interest shall commence accruing
on the date hereof, be computed on the basis of a 365-day year and the actual number of days elapsed, and shall be payable
annually due by the 1st day of each calendar anniversary following the Issue Date. Principal shall be due and payable
on or before the Maturity Date.  All payments due hereunder shall be made in lawful money of the United States of America.
Any payment otherwise due on a Saturday, Sunday or legal Bank holiday may be paid on the following business day.    

 

		1.	Right of Prepayment, Conversion Rights, Maturity Rights and Certain Adjustments.  
	 	 	 

		(a)	Right of Prepayment. The Company may prepay this Debenture at any point after eighteen (18)
months following the Issue Date, in whole or in part. However, if the Company elects to prepay this Debenture prior to the Maturity
Date or prior any Conversion outlined below in whole or in part, the Holder will be entitled to receive a number of Units (as defined
in the Limited Liability Company Operating Agreement of the Company (the “Operating Agreement”)), in addition to such
prepayment amount, constituting ten percent (10%) of the total outstanding Units and ten percent (10%) of the total Percentage
Interest (as defined in the Operating Agreement) following such issuance and at the time of such issuance.
	 	 	 

		(b)	Right of Conversion.
	 	 	 

		(i)	Voluntary Conversion. On or after six (6) months from the Issue Date, the Holder is entitled
to convert all or a portion of the Principal balance and all accrued and unpaid interest due hereunder (the “Outstanding
Amount”) into a number of Units equal to the proportion of the Outstanding Amount being converted multiplied by the Conversion
Percentage, as defined below). Should the Company default on payment hereof, the Holder, may at its option, extend all conversion
rights, through and including the date the Company tenders or attempts to tender payment in full of all amounts due under this
Debenture. Conversion rights shall terminate upon acceptance by Holder of payment in full of principal, accrued interest and any
other amounts due under this Debenture.

 

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		(ii)	Conversion Percentage. The Conversion Percentage shall be thirty three percent (33%) of
the total number of Units issued and outstanding at the time of Conversion, constituting thirty three percent (33%) of the total
Percentage Interest (the “Conversion Percentage”).
	 	 	 

		(iii)	Clarification. For the avoidance of doubt and by way of example solely:
	 	 	 

		(1)	In the event that, at a particular time, the Holder elects to convert 50% of the Outstanding Amount
into Units, the Holder shall, at such time, be issued a number of Units equal to 16.5% of the issued and outstanding Units at such
time; and if, thereafter, the Holder elects to covert 50% of the remaining Outstanding amount, the Holder shall, at such time,
be issued a number of Units equal to 8.25% of the issued and outstanding Units at such time, regardless as to whether such Converted
Amount is 50% of the original converted amount above.
	 	 	 

		(2)	The intent of the provisions herein is, and such provisions shall be enforced such that, the Holder
shall, upon and at the time of full conversion of all of the Outstanding Amount, hold a number of Units equal to 33% of the issued
and outstanding Units at such time, regardless of whether such units were issued on an equal Unit-per-dollar-of-converted Outstanding
Amount or not.
	 	 	 

		(c)	Right of Maturity Units. If the Company (i) does not elect to exercise its rights of Prepayment
prior to the Maturity Date, and (ii) the Holder does not elect to exercise its rights of Conversion, and (iii) the Company pays
to Holder all outstanding Principal and Interest accrued and due under the terms of this Debenture on the Maturity Date, then the
Holder will still be entitled to receive a number of Units, in addition to such payment amount, constituting eight percent (8%)
of the total outstanding Units and eight percent (8%) of the total Percentage Interest following such issuance and at the time
of such issuance.
	 	 	 

		2.	Waiver and Consent.  To the fullest extent permitted by law and except as otherwise
provided herein, the Company waives demand, presentment, protest, notice of dishonor, suit against or joinder of any other person,
and all other requirements necessary to charge or hold the Company liable with respect to this Debenture.
	 	 	 

		3.	Costs, Indemnities and Expenses.  The Company agrees to pay all reasonable fees
and costs incurred by the Holder in collecting or securing or attempting to collect or secure this Debenture, including reasonable
attorneys’ fees and expenses, whether or not involving litigation, collecting upon any judgments and/or appellate or bankruptcy
proceedings.  The Company agrees to pay any documentary stamp taxes, intangible taxes or other taxes which may now or
hereafter apply to this Debenture or any payment made in respect of this Debenture, and the Company agrees to indemnify and hold
the Holder harmless from and against any liability, costs, attorneys’ fees, penalties, interest or expenses relating to any
such taxes, as and when the same may be incurred.
	 	 	 

		4.	Representations; Warranties and Covenants.  The Company represents, warrants and covenants
to the Holder that:
	 	 	 

		(a)	The Company is duly organized, validly existing and in good standing (if applicable) under the
laws of State of Delaware;
	 	 	 

		(b)	the Company has authority to own its property and assets and to carry on its business as now conducted,
except, in each case, where the failure to do so, or so possess, individually or in the aggregate would not reasonably be expected
to result in a material adverse effect;

 

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		(c)	the Company has all requisite organizational power and authority to execute and deliver and perform
all its obligations under this Debenture.
	 	 	 

		(d)	the Company is qualified to do business in, and is in good standing (where such concept exists)
in, every jurisdiction in which the nature of its business makes such qualification necessary, except where the failure to be so
qualified or in good standing individually or in the aggregate would not reasonably be expected to result in a material adverse
effect;
	 	 	 

		(e)	the transactions contemplated hereby is within the Company’s organizational powers and have
been duly authorized by all necessary limited liability company action;
	 	 	 

		(f)	this Debenture has been duly executed and delivered by the Company and constitutes a legal, valid
and binding obligation of such party, enforceable in accordance with its terms; and
	 	 	 

		(g)	the transactions to be entered into and contemplated by this Debenture (a) do not require any consent
or approval of, registration or filing with, or any other action by, any governmental authority, (b) will not (i) violate any applicable
law or (ii) the organizational documents, charter, operating agreement, or certificate of formation of the Company, (c) will
not violate or result in a default under any indenture or any other agreement, instrument or other evidence of indebtedness, and
(d) will not result in the creation or imposition of any lien on any asset of such party.
	 	 	 

		5.	Covenants. So long as any portion of this Debenture remains outstanding, the Company will
not directly or indirectly, without the consent of the Holder (i) fail to continue to engage in business of the same general type
as now conducted by it and to preserve, renew and keep in full force and effect, its corporate existence and its assets, rights,
privileges and franchises to the extent necessary or desirable in the normal conduct of business; (ii) fail to comply in all material
respects with all applicable laws, ordinances, rules, regulations, decisions, orders and requirements of governmental authorities;
or (iii) fail to keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions
in relation to its business and activities.
	 	 	 

		6.	Event of Default.  An “Event of Default” shall be deemed to have occurred
upon the occurrence of any of the following: (a) the Company shall fail to make any payment of the principal, interest, costs,
indemnities, or expenses pursuant to this Debenture when and as the same shall become due and payable; (b) there shall occur any
default, whether in whole or in part, in the due observance or performance of any obligations or other covenants, terms or provisions
to be performed by the Company under this Debenture or any of the representations and warranties of the Company shall cease to
be true and correct in all respects; (c) the Company shall make a general assignment for the benefit of its creditors; (d) the
Company shall apply for or consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, conservator, liquidator
or similar official for itself or any of its assets and properties; (e) the Company shall voluntarily commence any proceeding
or file any petition seeking liquidation, reorganization or other relief as a debtor under the United States Bankruptcy Code or
any other liquidation, conservatorship, bankruptcy, general assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions
from time to time in effect and affecting the rights of creditors generally (collectively, the “Debtor Relief Laws”);
(f) an involuntary proceeding shall be commenced or an involuntary petition shall be filed against the Company seeking (1) liquidation,
reorganization or other relief in respect of the Company or its debts, or of a substantial part of its assets, under any Debtor
Relief Law or (2) the appointment of a receiver, trustee, assignee, custodian, sequestrator, conservator, liquidator or similar
official for itself or any of its assets and properties; (i) the Company consents to the institution of, or fail to contest in
a timely and appropriate manner, any proceeding or petition described in clause (f) above.  Upon the occurrence of an
Event of Default the entire Principal balance and accrued and unpaid interest outstanding under this Debenture, and all other obligations
of the Company under this Debenture, shall be immediately due and payable and the Holder may exercise any and all rights, power
and remedies available to it at law or in equity or other appropriate proceeding, whether for the specific performance of any covenant
or agreement contained in this Debenture and proceed to enforce the payment thereof or any other legal or equitable right of the
Holder. The Holder need not provide, and Company hereby waives, any presentment, demand, protest or other notice of any kind, and
the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder
and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by the Holder at any
time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon.

 

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		7.	Default Interest.  Any amount of principal or interest, which is not paid when
due shall bear interest at the rate of twelve percent (12%) per annum from the due date thereof until the same is paid.
	 	 	 

		8.	Maximum Interest Rate.  In no event shall any agreed to or actual interest charged,
reserved or taken by the Holder as consideration for this Debenture exceed the limits imposed by applicable law.  In
the event that the interest provisions of this Debenture shall result at any time or for any reason in an effective rate of interest
that exceeds the maximum interest rate permitted by applicable law, then without further agreement or notice the obligation to
be fulfilled shall be automatically reduced to such limit and all sums received by the Holder in excess of those lawfully collectible
as interest shall be applied against the principal of this Debenture immediately upon the Holder’s receipt thereof, with
the same force and effect as though the Company had specifically designated such extra sums to be so applied to principal and the
Holder had agreed to accept such extra payment(s) as a premium-free prepayment or prepayments.
	 	 	 

		9.	Cancellation of Debenture. Upon the repayment by the Company of all of its obligations hereunder
to the Holder, including, without limitation, the principal amount of this Debenture, plus accrued but unpaid interest, the indebtedness
evidenced hereby shall be deemed paid in full.  Except as otherwise required by law or by the provisions of this Debenture,
payments received by the Holder hereunder shall be applied first against expenses and indemnities, next against interest accrued
on this Debenture, and next in reduction of the outstanding principal balance of this Debenture.
	 	 	 

		10.	Lost, Stolen or Mutilated Debenture. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Debenture (as to which a written certification
and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of
any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon
surrender and cancellation of this Debenture, the Company shall execute and deliver to the Holder a new Debenture (in accordance
with the provisions herein) representing the outstanding Principal. Whenever the Company is required to issue a new Debenture pursuant
to the terms herein, such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the
face of such new Debenture, the Principal and interest remaining outstanding or owed, (iii) shall have an issuance date, as indicated
on the face of such new Debenture, which is the same as the Issue Date, (iv) shall have the same rights and conditions as this
Debenture, and (v) shall represent accrued and unpaid interest and late charges on the Principal and interest of this Debenture,
from the Issue.
	 	 	 

		11.	Transfers of Debenture to Comply with the 1933 Act. The Holder agrees that this Debenture
may not be sold, transferred, pledged, hypothecated or otherwise disposed of except as follows:  (a) to a person whom
the Debenture may legally be transferred without registration and without delivery of a current prospectus under the Securities
Act of 1933, as amended (the “1933 Act”) with respect thereto and then only against receipt of an agreement of such
person to comply with the provisions of this Section 12 with respect to any resale or other disposition of the Debenture; or (b)
to any person upon delivery of a prospectus then meeting the requirements of the 1933 Act relating to such securities and the offering
thereof for such sale or disposition, and thereafter to all successive assignees.

 

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		12.	Severability.  If any provision of this Debenture is, for any reason, invalid
or unenforceable, the remaining provisions of this Debenture will nevertheless be valid and enforceable and will remain in full
force and effect.  Any provision of this Debenture that is held invalid or unenforceable by a court of competent jurisdiction
will be deemed modified to the extent necessary to make it valid and enforceable and as so modified will remain in full force and
effect.
	 	 	 

		13.	Amendment and Waiver.  This Debenture may be amended only in a writing executed
by the Company and the Holder. Any provision of this Debenture may be waived only in a writing executed by Holder.  The
waiver by Holder of a breach of any provision of this Debenture shall not operate or be construed as a waiver of any other breach.
	 	 	 

		14.	Assignment Successors.  The Company may not assign or transfer this Debenture
or any rights or obligations herein without the prior written consent of the Holder. Except as otherwise provided herein, this
Debenture shall bind and inure to the benefit of and be enforceable by the Company, the Holder and their permitted successors and
assigns.
	 	 	 

		15.	Further Assurances.  The Company will execute all documents and take such other
actions as the Holder may reasonably request in order to consummate the transactions provided for herein and to accomplish the
purposes of this Debenture.
	 	 	 

		16.	Notices, Consents, etc.  Any notices, consents, waivers or other communications
required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered:  (i)
upon receipt, when delivered personally; (ii) upon receipt of a confirmation email, when sent by email with return receipt requested;
or (iii) one (1) trading day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same.  The addresses and email addresses numbers for such communications shall be as follows
or such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party three (3) trading days prior to the effectiveness of such change:

 

If to the Company:

 

KCB Jade
Holdings, LLC

Attention:
Kathryn Blackwell, President

[________________]

[________________]

Email: [____________]

 

If to Holder:

 

Zoned Properties,
Inc.

Attention:
Bryan McLaren

14269 N.
87th Street, #205

Scottsdale,
AZ 85260

Email: bryan@zonedproperties.com

 

		17.	Governing Law.  All questions concerning the construction, validity and interpretation
of this Debenture and any and all disputes or controversies arising out of the subject matter hereof (whether by contract, tort
or otherwise) shall be governed by and construed in accordance with the domestic laws of the State of Delaware, without giving
effect to any choice of law or conflict of law provision (whether of the State of Delaware or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of Delaware.

 

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		18.	Jurisdiction.  EACH PARTY HERETO AGREES THAT JURISDICTION AND VENUE IN ANY ACTION
BROUGHT BY THE HOLDER PURSUANT TO THIS DEBENTURE SHALL PROPERLY (BUT NOT EXCLUSIVELY) LIE IN ANY FEDERAL OR STATE COURT LOCATED
IN MARICOPA COUNTY, ARIZONA. EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT
OF ITS PROPERTY WITH RESPECT TO SUCH ACTION.  EACH PARTY HERETO IRREVOCABLY AGREES THAT VENUE WOULD BE PROPER IN SUCH
COURT, AND HEREBY WAIVES ANY OBJECTION THAT SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  EACH
PARTY HERETO FURTHER AGREES THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED
BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER
MEANS PROVIDED BY STATUTE OR RULE OF COURT.
	 	 	 

		19.	Third Parties.  Nothing herein expressed or implied is intended or shall be construed
to confer upon or give to any person or entity, other than the Holder and its permitted successor and assigns, any rights or remedies
under or by reason of this Debenture.
	 	 	 

		20.	Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS DEBENTURE. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES
THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY HERETO UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (C) EACH PARTY HERETO MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HERETO HAS BEEN INDUCED TO ENTER INTO THIS
DEBENTURE BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS ‎ SECTION 21.
	 	 	 

		21.	Construction and Headings. This Debenture shall be deemed to be jointly drafted by the Company
and the Holder and shall not be construed against any person as the drafter hereof. The headings of this Debenture are for convenience
of reference and shall not form part of, or affect the interpretation of, this Debenture.
	 	 	 

		22.	Entire Agreement.  This Debenture (including any recitals hereto) set forth the
entire understanding of the parties with respect to the subject matter hereof, and shall not be modified or affected by any offer,
proposal, statement or representation, oral or written, made by or for any party in connection with the negotiation of the terms
hereof, and may be modified only by instruments signed by all of the parties hereto.

 

[Signature Page to Follow]

 

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IN WITNESS WHEREOF,
this Debenture is executed by the undersigned as of the Issue Date.

 

	 	KCB Jade Holdings, LLC.
	 	 
	 	By:	/s/ Kathryn Blackwell
	 	 	Kathryn Blackwell
	 	 	CEO
	 	 
	 	By:	/s/ Chelsea Mulligan
	 	 	Chelsea Mulligan
	 	 	COO

 

Agreed and accepted:

 

Zoned Properties, Inc.

 

	By:	/s/ Bryan McLaren	 
	Name: 	Bryan McLaren	 
	Title:	Chief Executive Officer	 

 

    	 	7Exhibit 4.3

 

As of March 23, 2020, our authorized capital stock consists
of 500,000,000 shares of common stock, $0.001 par value per share, of which 22,054,816 shares are issued and outstanding.

 

The authorized and unissued shares of our common stock are available
for issuance without further action by our stockholders, unless such action is required by applicable law or the rules of The NYSE
MKT, or any stock exchange on which our securities may be listed at such time. Unless approval of our stockholders is so required,
our board of directors will not seek stockholder approval for the issuance and sale of our common stock.

 

Common Stock

 

Each outstanding share of common stock
is entitled to one vote, either in person or by proxy, on all matters that may be voted upon by their holders at meetings of the
stockholders.

 

Holders of our common stock:

 

	 	(i)	have equal ratable rights to dividends from funds legally available therefore, if declared by the Board of Directors;

 

	 	(ii)	are entitled to share ratably in all our assets available for distribution to holders of common stock upon our liquidation, dissolution or winding up;

 

	 	(iii)	do not have preemptive, subscription or conversion rights; and

 

	 	(iv)	are entitled to one non-cumulative vote per share on all matters on which stockholders may vote at all meetings of our stockholders.

 

The holders of shares of our common stock
do not have cumulative voting rights, which means that the holder or holders of more than fifty percent (50%) of outstanding shares
voting for the election of directors can elect all of our directors if they so choose and, in such event, the holders of the remaining
shares will not be able to elect any of the our directors.

 

Our common stock is listed on The NYSE MKT under the symbol
“ITP.” The transfer agent and registrar for our common stock is Empire Stock Transfer Inc., 859 Whitney Mesa Dr., Henderson,
NV 89014.

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