Document:

Exhibit 10.16

 

SECOND AMENDMENT TO LEASE AGREEMENT

 

THIS SECOND AMENDMENT
TO LEASE AGREEMENT (this “Amendment”) is entered into as of this 10th day of April, 2020 (the “Amendment
Effective Date”), by and between IIP-NY 2 LLC, a Delaware limited liability company (“Landlord”),
and Vireo Health of New York, LLC, a New York limited liability company (“Tenant”).

 

RECITALS

 

A.       WHEREAS,
Landlord and Tenant are parties to that certain Lease Agreement dated as of October 23, 2017, as amended by that certain First
Amendment to Lease Agreement dated as of December 7, 2018 (collectively, the “Existing Lease”), whereby Tenant
leases the premises from Landlord located at 256 County Route 117 in Perth, New York; and

 

B.       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.                 
Term. Section 3.1 of the Existing Lease is hereby amended and restated in its entirety as follows:

 

“3.1.Term.
The actual term of this Lease (as the same may be extended or earlier terminated in accordance with this Lease, the “Term”)
commenced on October 23, 2017 (the “Commencement Date”) and shall end on April 9, 2035, subject to extension
or earlier termination of this Lease as provided herein.”

 

3.                 
TI Allowance. The first sentence of Section 5.1 of the Existing Lease is hereby amended and restated in its
entirety as follows:

 

“Tenant shall cause appropriate
improvements consistent with the Permitted Use (the “Tenant Improvements”) to be constructed in the Premises
pursuant to the Work Letter attached hereto as Exhibit E (the “Work Letter”) at a cost to Landlord not
to exceed Three Million Three Hundred Sixty Thousand Dollars ($3,360,000.00) (the “TI Allowance”).”

 

In addition, the final
sentence of Section 5.2 of the Existing Lease is hereby amended and restated in its entirety as follows:

 

    

     

    

 

“In addition, Landlord’s
obligation to disburse any of the TI Allowance in excess of Two Million Eight Hundred Sixty Thousand Dollars ($2,860,000.00) shall
be conditional upon the satisfaction of the following: (a) Tenant’s delivery to Landlord of a certificate of occupancy for
the Premises suitable for the Permitted Use, as applicable; (b) Tenant’s delivery to Landlord of a Certificate of Substantial
Completion in the form of the American Institute of Architects document G704, executed by the project architect and the general
contractor or such other form or certification as may be reasonably acceptable to Landlord; (c) Tenant’s satisfaction of
the conditions precedent to funding of the TI Allowance set forth in Section 6.3 of the Work Letter; and (d) there shall
be no uncured event of default by Tenant under this Lease.”

 

4.                 
Base Rent. Effective as of the Amendment Effective Date, the monthly Base Rent shall equal Ninety Thousand Five Hundred
Eighteen and 51/100 Dollars ($90,518.51) and shall be subject to the Base Rent adjustments on each anniversary of the Commencement
Date, as set forth in the Existing Lease.

 

5.                 
New Guaranty. Concurrently with the execution of this Amendment, Tenant shall cause Vireo Health International, Inc.,
a British Columbia, Canada corporation (the “New Guarantor”), to execute and deliver to Landlord a guaranty
in the form attached as Exhibit A to this Amendment (the “New Guaranty”). From and after the date of
this Amendment, all references in the Existing Lease to a “Guarantor” or the “Guarantors” shall include
the New Guarantor and all references to a “Guaranty” or the “Guaranties” shall include the New Guaranty.

 

6.                 
Broker. Tenant 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 Landlord’s option and with counsel reasonably
acceptable to Landlord, at Tenant’s sole cost and expense) and hold harmless the Landlord Indemnitees 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.

 

7.                 
No Default. Tenant represents, warrants and covenants that, to the best of Tenant’s 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.

 

8.                 
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.

 

9.                 
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.

 

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10.             
 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.

 

11.             
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.

 

12.             
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.

 

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

 

	LANDLORD:	 
	 	 
	IIP-NY 2 LLC,	 
	a Delaware limited liability company	 
	 	 
	By:	/s/ Brian Wolfe	 
	Name:	Brian Wolfe	 
	Title:	Vice President, General Counsel	 
	 	 
	TENANT:	 
	 	 
	VIREO HEALTH OF NEW YORK, LLC,	 
	a New York limited liability company	 
	 	 
	By:	 /s/ Shaun Nugent	 
	Name:	Shaun Nugent	 
	Title:	CFO	 

 

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EXHIBIT A

 

FORM OF NEW GUARANTY

 

[See Attached] 

 

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GUARANTY OF LEASE

 

This Guaranty of Lease
(“Guaranty”) is executed effective on the 10th day of April, 2020, by Vireo Health International,
Inc., a British Columbia, Canada corporation (“Guarantor”), whose address for notices is c/o Vireo Health of
New York, LLC, 207 S 9th Street, Minneapolis, MN. 55402; Attn: Chief Financial Officer, in favor of IIP-NY 2 LLC, a Delaware limited
liability company (“Landlord”), whose address for notices is 11440 West Bernardo Court, Suite 100, San Diego,
California 92127, Attn: General Counsel.

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor covenants and agrees as follows:

 

1.                 
Recitals. This Guaranty is made with reference to the following recitals of facts which constitute a material part
of this Guaranty:

 

		(a)	Landlord, as Landlord, and Vireo Health of New York, LLC, a New York limited liability company,
as Tenant (“Tenant”), entered into that certain Lease dated as of October 23, 2017, as amended from time to
time (as so amended, the “Lease”), with respect to certain space in the building located at 256 County Route
117 in Perth, New York (the “Leased Premises”).

 

		(b)	Guarantor is the indirect parent entity of Tenant and is therefore receiving a substantial benefit
for executing this Guaranty.

 

		(c)	Landlord would not have entered into amendment to the Lease as of the date hereof with Tenant without
having received the Guaranty executed by Guarantor as an inducement to Landlord.

 

		(d)	By this Guaranty, effective retroactively to the commencement of the Lease, Guarantor intends to
absolutely, unconditionally and irrevocably guarantee the full, timely, and complete (i) payment of all rent and other sums required
to be paid by Tenant under the Lease and any other indebtedness of Tenant, (ii) performance of all other terms, covenants, conditions
and obligations of Tenant arising out of the Lease and all foreseeable and unforeseeable damages that may arise as a foreseeable
or unforeseeable consequence of any nonpayment, non-performance or non-observance of, or non-compliance with, any of the terms,
covenants, conditions or other obligations described in the Lease (including, without limitation, all attorneys’ fees and
disbursements and all litigation costs and expenses incurred or payable by Landlord or for which Landlord may be responsible or
liable, or caused by any such default), and (iii) payment of any and all expenses (including reasonable attorneys’ fees and
expenses and litigation expenses) incurred by Landlord in enforcing any of the rights under the Lease or this Guaranty within five
(5) days after Landlord’s demand thereafter (collectively, the “Guaranteed Obligations”).

 

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2.                  Guaranty. Effective
(including retroactively) for Guaranteed Obligations accruing before, on and after the Execution Date (as such term is
defined under the Lease), Guarantor absolutely, unconditionally and irrevocably guarantees, as principal obligor and not
merely as surety, to Landlord, the full, timely and unconditional payment and performance, of the Guaranteed Obligations
strictly in accordance with the terms of the Lease, as such Guaranteed Obligations may be modified, amended, extended or
renewed from time to time. This is a Guaranty of payment and performance and not merely of collection. Guarantor agrees that
Guarantor is primarily liable for and responsible for the payment and performance of the Guaranteed Obligations. Guarantor
shall be bound by all of the provisions, terms, conditions, restrictions and limitations contained in the Lease which are to
be observed or performed by Tenant, the same as if Guarantor was named therein as Tenant with joint and several liability
with Tenant, and any remedies that Landlord has under the Lease against Tenant shall apply to Guarantor as well. If Tenant
defaults in any Guaranteed Obligation under the Lease, Guarantor shall in lawful money of the United States, pay to Landlord
on demand the amount due and owing under the Lease. Guarantor waives any rights to notices of acceptance, modifications,
amendment, extension or breach of the Lease. If Guarantor is a natural person, it is expressly agreed that this guaranty
shall survive the death of such guarantor and shall continue in effect. The obligations of Guarantor under this Guaranty are
independent of the obligations of Tenant or any other guarantor. Guarantor acknowledges that this Guaranty and
Guarantor’s obligations and liabilities under this Guaranty are and shall at all times continue to be absolute and
unconditional in all respects and shall be the separate and independent undertaking of Guarantor without regard to the
genuineness, validity, legality or enforceability of the Lease, and shall at all times be valid and enforceable irrespective
of any other agreements or circumstances of any nature whatsoever which might otherwise constitute a defense to this Guaranty
and the obligations and liabilities of Guarantor under this Guaranty or the obligations or liabilities of any other person or
entity (including, without limitation, Tenant) relating to this Guaranty or the obligations or liabilities of Guarantor
hereunder or otherwise with respect to the Lease or to Tenant. Guarantor hereby absolutely, unconditionally and irrevocably
waives any and all rights it may have to assert any defense, set-off, counterclaim or cross-claim of any nature whatsoever
with respect to this Guaranty or the obligations or liabilities of Guarantor under this Guaranty or the obligations or
liabilities of any other person or entity (including, without limitation, Tenant) relating to this Guaranty or the
obligations or liabilities of Guarantor under this Guaranty or otherwise with respect to the Lease, in any action or
proceeding brought by the holder hereof to enforce the obligations or liabilities of Guarantor under this Guaranty. This
Guaranty sets forth the entire agreement and understanding of Landlord and Guarantor, and Guarantor acknowledges that no oral
or other agreements, understandings, representations or warranties exist with respect to this Guaranty or with respect to the
obligations or liabilities of Guarantor under this Guaranty. The obligations of Guarantor under this Guaranty shall be
continuing and irrevocable (a) during any period of time when the liability of Tenant under the Lease continues, and (b)
until all of the Guaranteed Obligations have been fully discharged by payment, performance or compliance. If at any time all
or any part of any payment received by Landlord from Tenant or Guarantor or any other person under or with respect to the
Lease or this Guaranty has been refunded or rescinded pursuant to any court order, or declared to be fraudulent or
preferential, or are set aside or otherwise are required to be repaid to Tenant, its estate, trustee, receiver or any other
party, including as a result of the insolvency, bankruptcy or reorganization of Tenant or any other party (an
 “Invalidated Payment”), then Guarantor’s obligations under the Guaranty shall, to the extent of such
Invalidated Payment be reinstated and deemed to have continued in existence as of the date that the original payment
occurred. This Guaranty shall not be affected or limited in any manner by whether Tenant may be liable, with respect to the
Guaranteed Obligations individually, jointly with other primarily, or secondarily.

 

3.                 
 No Impairment of Guaranteed Obligations. Guarantor further agrees that Guarantor’s liability for the Guaranteed
Obligations shall in no way be released, discharged, impaired or affected or subject to any counterclaim, setoff or deduction by
(a) any waiver, consent, extension, indulgence, compromise, release, departure from or other action or inaction of Landlord under
or in respect of the Lease or this Guaranty, or any obligation or liability of Tenant, or any exercise or non-exercise of any right,
remedy, power or privilege under or in respect to the Lease or this Guaranty, (b) any change in the time, manner or place of payment
or performance of the Guaranteed Obligations, (c) the acceptance by Landlord of any additional security or any increase, substitution
or change therein, (d) the release by Landlord of any security or any withdrawal thereof or decrease therein, (e) any assignment
of the Lease or any subletting of all or any portion of the Leased Premises (with or without Landlord’s consent), (f) any
holdover by Tenant beyond the term of the Lease (g) any termination of the Lease, (h) any release or discharge of Tenant in any
bankruptcy, receivership or other similar proceedings, (i) the impairment, limitation or modification of the liability of Tenant
or the estate of Tenant in bankruptcy or of any remedy for the enforcement of Tenant’s liability under the Lease resulting
from the operation of any present or future provisions of any bankruptcy code or other statute or from the decision in any court,
or the rejection or disaffirmance of the Lease in any such proceedings, (j) any merger, consolidation, reorganization or similar
transaction involving Tenant, even if Tenant ceases to exist as a result of such transaction, (k) the change in the corporate relationship
between Tenant and Guarantor or any termination of such relationship, (l) any change in the direct or indirect ownership of all
or any part of the shares in Tenant, or (m) to the extent permitted under applicable law, any other occurrence or circumstance
whatsoever, whether similar or dissimilar to the foregoing, which might otherwise constitute a legal or equitable defense or discharge
of the liabilities of Guarantor or which might otherwise limit recourse against Guarantor. Guarantor further understands and agrees
that Landlord may at any time enter into agreements with Tenant to amend and modify the Lease, and may waive or release any provision
or provisions of the Lease, and, with reference to such instruments, may make and enter into any such agreement or agreements as
Landlord and Tenant may deem proper and desirable, without in any manner impairing or affecting this Guaranty or any of Landlord’s
rights hereunder or Guarantor’s obligations hereunder, unless otherwise agreed in writing thereunder or under the Lease.

 

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4.                 
Remedies.

 

		(a)	If Tenant defaults with respect to the Guaranteed Obligations, and if Guarantor does not
                                                               fulfill Tenant’s obligations immediately upon its receipt of written notice of such default from Landlord, Landlord may
                                                               at its election proceed immediately against Guarantor, Tenant, or any combination of Tenant, Guarantor, and/or any other
                                                               guarantor. It is not necessary for Landlord, in order to enforce payment and performance by Guarantor under this Guaranty,
                                                               first or contemporaneously to institute suit or exhaust remedies against Tenant or other liable for any of the Guaranteed
                                                               Obligations or to enforce rights against any collateral securing any of it. Guarantor hereby waives any right to require
                                                               Landlord to join Tenant in any action brought hereunder or to commence any action against or obtain any judgment against
                                                               Tenant or to pursue any other remedy or enforce any other right. If any portion of the Guaranteed Obligations terminates and
                                                               Landlord continues to have any rights that it may enforce against Tenant under the Lease after such termination, then
                                                               Landlord may at its election enforce such rights against Guarantor. Unless and until all Guaranteed Obligations have been
                                                               fully satisfied, Guarantor shall not be released from its obligations under this Guaranty irrespective of: (i) the exercise
                                                               (or failure to exercise) by Landlord of any of Landlord’s rights or remedies (including, without limitation, compromise
                                                               or adjustment of the Guaranteed Obligations or any part thereof); or (ii) any release by Landlord in favor of Tenant
                                                               regarding the fulfillment by Tenant of any obligation under the Lease.

 

		(b)	Notwithstanding anything in the foregoing to the contrary, Guarantor hereby covenants and agrees
to and with Landlord that Guarantor may be joined in any action by or against Tenant in connection with the Lease. Guarantor also
agrees that, in any jurisdiction, it will be conclusively bound by the judgment in any such action by or against Tenant (wherever
brought) as if Guarantor were a party to such action even though Guarantor is not joined as a party in such action.

 

5.                 
Waivers. With the exception of the defense of prior payment, performance or compliance by Tenant or Guarantor of
or with the Guaranteed Obligations which Guarantor is called upon to pay or perform, or the defense that Landlord’s claim
against Guarantor is barred by the applicable statute of limitations, Guarantor hereby waives and releases all defenses of the
law of guaranty or suretyship to the extent permitted by law.

 

6.                 
Rights Cumulative. All rights, powers and remedies of Landlord under this Guaranty shall be cumulative and in addition
to all rights, powers and remedies given to Landlord by law.

 

7.                 
Representations and Warranties. Guarantor hereby represents and warrants that (a) Guarantor has goods and net worth
that are sufficient to enable Guarantor to promptly perform all of the Guaranteed Obligations as and when they are due; (b) Landlord
has made no representation to Guarantor as to the creditworthiness or financial condition of Tenant; (c) Guarantor has full power
to execute, deliver and carry out the terms and provisions of this Guaranty and has taken all necessary action to authorize the
execution, delivery and performance of this Guaranty; (d) Guarantor’s execution and delivery of, and the performance of its
obligations under, this Guaranty does not conflict with or violate any of Guarantor’s organizational documents, or any contract,
agreement or decree which Guarantor is a party to or which is binding on Guarantor; (e) the individual executing this Guaranty
on behalf of Guarantor has the authority to bind Guarantor to the terms and conditions of this Guaranty; (f) Guarantor has been
represented by counsel of its choice in connection with this Guaranty; (g) this Guaranty when executed and delivered shall constitute
the legal, valid and binding obligations of Guarantor enforceable against Guarantor in accordance with its terms; and (h) there
is no action, suit, or proceeding pending or, to the knowledge of Guarantor, threatened against Guarantor before or by any governmental
authority which questions the validity or enforceability of, or Guarantor’s ability to perform under, this Guaranty.

 

8.                  Subordination. In
the event of Tenant’s insolvency or the disposition of the assets of Tenant, through bankruptcy, by an assignment for
the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Tenant applicable to the payment of all
claims of Landlord and/or Guarantor shall be paid to Landlord and shall be first applied by Landlord to the Guaranteed
Obligations. Any indebtedness of Tenant now or hereafter held by Guarantor, whether as original creditor or assignee or by
way of subrogation, restitution, reimbursement, indemnification or otherwise, is hereby subordinated in right of payment to
the Guaranteed Obligations. So long as an uncured event of default exists under the Lease, (a) at Landlord’s written
request, Guarantor shall cause Tenant to pay to Landlord all or any part of any funds invested in or loaned to Tenant by
Guarantor which Guarantor is entitled to withdraw or collect and (b) any such indebtedness or other amount collected or
received by Guarantor shall be held in trust for Landlord and shall forthwith be paid over to Landlord to be credited and
applied against the Guaranteed Obligations. Subject to the foregoing, Guarantor shall be entitled to receive from Landlord
any amounts that are, from time to time, due to Guarantor in the ordinary course of business. Until all of Tenant’s
obligations under the Lease are fully performed, Guarantor shall have no right of subrogation against Tenant by reason of any
payments, acts or performance by Guarantor under this Guaranty.

 

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9.                 
Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of New York,
United States of America, without regard to principles of conflicts of laws. TO THE FULLEST EXTENT PERMITTED BY LAW, GUARANTOR
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY.

 

10.             
Attorneys’ Fees. In the event any litigation or other proceeding (“Proceeding”) is initiated
by any party against any other party to enforce this Guaranty, the prevailing party in such Proceeding shall be entitled to recover
from the unsuccessful party all costs, expenses, and actual reasonable attorneys’ fees relating to or arising out of such
Proceeding.

 

11.             
Modification. This Guaranty may be modified only by a contract in writing executed by Guarantor and Landlord.

 

12.             
Invalidity. If any provision of the Guaranty shall be invalid or unenforceable, the remainder of this Guaranty shall
not be affected by such invalidity or unenforceability. In the event, and to the extent, that this Guaranty shall be held ineffective
or unenforceable by any court of competent jurisdiction, then Guarantor shall be deemed to be a tenant under the Lease with the
same force and effect as if Guarantor were expressly named as a co-tenant therein with joint and several liability.

 

13.             
Successors and Assigns. Unless otherwise agreed in writing or under the Lease, this Guaranty shall be binding upon
and shall inure to the benefit of the successors-in-interest and assigns of each party to this Guaranty.

 

14.              Notices. Any
notice, consent, demand, invoice, statement or other communication required or permitted to be given hereunder shall be in
writing and shall be given by (a) personal delivery, (b) overnight delivery with a reputable international overnight delivery
service, such as FedEx, or (c) facsimile or email transmission, so long as such transmission is followed within one (1)
business day by delivery utilizing one of the methods described in subsections (a) or (b). Any such notice, consent, demand,
invoice, statement or other communication shall be deemed delivered (x) upon receipt, if given in accordance with subsection
(a); (y) one business (1) day after deposit with a reputable international overnight delivery service, if given if given in
accordance with subsection (b); or (z) upon transmission, if given in accordance with subsection (c). Except as otherwise
stated in this Guaranty, any notice, consent, demand, invoice, statement or other communication required or permitted to be
given pursuant to this Guaranty shall be addressed to Guarantor or Landlord at the address set forth above in the
introductory paragraph of this Guaranty. Either party may, by notice to the other given pursuant to this Section, specify
additional or different addresses for notice purposes.

 

15.             
Waiver. Any waiver of a breach or default under this Guaranty must be in a writing that is duly executed by Landlord
and shall not be a waiver of any other default concerning the same or any other provision of this Guaranty. No delay or omission
in the exercise of any right or remedy shall impair such right or remedy or be construed as a waiver.

 

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16.             
Withholding. Unless otherwise agreed in the Lease, any and all payments by Guarantor to Landlord under this Guaranty
shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions,
assessments, fees, withholdings or similar charges, and all liabilities with respect thereto (collectively, “Taxes”).
If Guarantor shall be required by any applicable laws to deduct any Taxes from or in respect of any sum payable under this Guaranty
to Landlord: (a) the sum payable shall be increased as necessary so that after making all required deductions, the Landlord receives
an amount equal to the sum it would have received had no such deductions been made; (b) Guarantor shall make such deductions; and
(c) Guarantor shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable
laws.

 

17.             
Financial Condition of Tenant. Landlord shall have no obligation to disclose or discuss with Guarantor Landlord’s
assessment of the financial condition of Tenant. Guarantor has adequate means to obtain information from Tenant on a continuing
basis concerning the financial condition of Tenant and its ability to perform its Guaranteed Obligations, and Guarantor assumes
responsibility for being and keeping informed of Tenant’s financial condition and of all circumstances bearing upon the risk
of Tenant’s failure to perform the Guaranteed Obligations.

 

18.             
Bankruptcy. So long as the Guaranteed Obligations remain outstanding, Guarantor shall not, without Landlord’s
prior written consent, commence or join with any other person in commencing any bankruptcy or similar proceeding of or against
Tenant. Guarantor’s obligations hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated
by any bankruptcy or similar proceeding (voluntary or involuntary) involving Tenant or by any defense that Tenant may have by reason
of an order, decree or decision of any court or administrative body resulting from any such proceeding. To the fullest extent permitted
by law, Guarantor will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors
or similar person to pay to Landlord or allow the claim of Landlord in respect of any interest, fees, costs, expenses or other
Guaranteed Obligations accruing or arising after the date on which such case or proceeding is commenced.

 

19.             
Conveyance or Transfer. Without Landlord’s written consent, Guarantor shall not convey, sell, lease or transfer
any of its properties or assets to any person or entity to the extent that such conveyance, sale, lease or transfer could have
a material adverse effect on Guarantor’s ability to fulfill any of the Guaranteed Obligations.

 

20.              Financials. To
induce Landlord to enter into the Lease, Guarantor shall, within ninety (90) days after the end of Guarantor’s
financial year, furnish Landlord with a certified copy of Guarantor’s year-end unconsolidated financial statements for
the previous year, audited by a nationally recognized accounting firm. If audited financial statements are not otherwise
prepared, then Guarantor may satisfy the requirement to provide audited financial statements by providing in lieu thereof
unaudited financial statements prepared in accordance with GAAP and certified by the chief financial officer of Guarantor as
correct and complete copies of such financial statements, fairly presenting Guarantor’s financial condition as of the
time set forth therein and having been prepared in accordance with GAAP. The provisions of this Section shall not apply at
any time while Guarantor is traded on any nationally recognized Canadian or United States stock exchange.

 

21.             
Joint and Several Liability. Guarantor’s liability under this Guaranty shall be joint and several with any
and all other Guarantors in accordance with the terms and conditions of the Lease.

 

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IN
WITNESS WHEREOF, Guarantor has caused this Guaranty to be signed by its respective officer thereunto duly authorized, all as of
the date first written above.

 

	GUARANTOR	 
	 	 
	VIREO HEALTH INTERNATIONAL, INC.	 
	 	 
	By:	/s/ Shaun Nugent	 
	Name:	Shaun Nugent	 
	Title:	CFO	 

 

    11Exhibit 10.17

 

CERTAIN
CONFIDENTIAL INFORMATION (MARKED BY BRACKETS AS “[***]” HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I)
NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

COMMERCIAL LEASE AGREEMENT

 

THIS COMMERCIAL
LEASE AGREEMENT (“Lease”) dated this 21st day of April, 2017 (the “Effective Date”) by
and between 100 Enterprise Drive, LLC (“Lessor”), a Maryland limited liability company
having an address of 118 N. Division Street, Salisbury, Maryland 21801, and MaryMed, LLC (“Lessee”),
having an address of 207 9th Street S., Minneapolis, MN 55402 (Lessor and Lessee are hereinafter referred to collectively
as the “Parties”).

 

WITNESSETH: That
Lessor hereby leases unto the Lessee, and the Lessee hereby leases from the Lessor for the term, and upon mutual covenants, agreements
and the rentals set forth herein, the Premises described herein below:

 

1.             
Lease of Premises. Lessor does hereby lease to Lessee, and Lessee hereby agrees to lease from Lessor, the premises
located at 100 Enterprise Drive, in the Town of Hurlock, County of Dorchester, Maryland, consisting of approximately 22,500 square
feet of space on 5.00 +/acres, together with all improvements, appurtenances, rights, privileges and easements benefiting, belonging
or pertaining thereto (the “Premises”).

 

2.             
Term. The term of this Lease shall begin on the Effective Date and continue for ten (10) years following the
Delivery Date. Lessee shall have the right to renew this Lease for two (2) additional five (5) year terms as more fully set forth
in Section 7 hereof.

 

3.            
Landlord’s Work. Lessor agrees, at Lessor’s sole cost and expense, to promptly complete all that
work described in Exhibit A (the “Landlord’s Work”), in a good, proper and timely manner.

 

4.             
Tenant Upgrades & Additional Tenant Upgrades.

 

a.              
In accordance with the terms and conditions hereof, Lessor agrees to promptly complete all that work described in Exhibit
B (the “Tenant Upgrades”), in a good, proper and timely manner.

 

b.              
To pay for the completion of the Tenant Upgrades, the Parties shall each contribute funds totaling, in the aggregate,
the amount of Six Hundred Fifty Thousand Dollars and 00/100 ($650,000.00) (the “Tenant Upgrade Funds”) as follows:

 

1.              
Lessor shall advance Three Hundred Twenty-Five Thousand Dollars and 00/100 ($325,000.00) (“Lessor’s Contribution”);
and,

 

    1

     

    

 

2.            
 Lessee shall contribute Three Hundred Twenty-Five Thousand Dollars and 00/100 ($325,000.00) (“Lessee’s
Contribution”) which said Lessee’s Contribution shall be paid to Lessor, via certified funds, upon Lessee’s
execution of this Lease.

 

c.               
To the extent that the cost to Lessor to complete the Tenant Upgrades does not exceed the amount of the Tenant Upgrade
Funds (i.e. $650,000.00), Lessor shall provide Lessee with such funds equal to seventy-five percent (75%) of the difference between
the amount of the Tenant Upgrade Funds and the amount that Lessor actually expended to complete the Tenant Upgrades (such amount
is hereinafter referred to as the “Tenant Improvement Funds”). Lessee may use the Tenant Improvement Funds,
if there be any, in connection with payments made by Lessee to update, furnish, modify or procure products, materials, equipment
or services related to Lessee’s use of the Premises that are not identified on Exhibit A or Exhibit B
(such items are hereinafter referred to collectively as “Additional Tenant Improvements”). In the event any
Tenant Improvement Funds exist after Lessor’s completion of the Tenant Upgrades, then, with respect to any Additional Tenant
Improvements, Lessee shall submit to Lessor the receipt(s) supporting the Additional Tenant Improvements and within fifteen (15)
days of Lessor’s receipt thereof, Lessor shall reimburse to Lessee seventy-five percent (75%) of the amount identified on
the receipt(s) submitted by Lessee, as set forth hereinabove, until the Tenant Improvement Funds are exhausted.

 

d.             
To the extent that the cost to Lessor for its completion of the Tenant Upgrades exceeds the Tenant Upgrade Funds (i.e.
$650,000.00), Lessor shall invoice Lessee for all such costs in excess of the Tenant Upgrade Funds, which said invoice(s) shall
provide documentation of such excess Tenant Upgrade costs incurred by Lessor, and Lessee shall make payment to Lessor for all such
amounts within fifteen (15) days of Lessee’s receipt of any such invoice.

 

e.              
Lessor shall use commercially reasonable efforts to timely and properly complete the Tenant Upgrades at the lowest available
price using good procurement and general contractor practices and leveraging vendors and relationships that Lessee identifies where
reasonably possible, if any.

 

f.               
Lessee shall be responsible for procuring any and all products, equipment, furnishings, items, materials and services
for completion of any Additional Tenant Improvements with a total cost to Lessee of no less than Three Hundred Thousand Dollars
and 00/100 ($300,000.00). Lessee shall install (or have installed) or place at or on the Premises Additional Tenant Improvements,
with a total cost to Lessee of no less than Three Hundred Thousand Dollars and 00/100 ($300,000.00), within one hundred twenty
(120) days following the Effective Date. Lessor will work with Lessee to coordinate working the Additional Tenant Improvements
into the construction plan for the Premises and Lessee shall not be deemed to create a Lessee Delay (as defined in Section 4(1)
hereof) based upon these Additional Tenant Improvements becoming part of the construction plan which Lessor shall incorporate and
perform general contractor services over.

 

g.              As
of the Effective Date Lessor has completed all construction designs (subject to a Lessee fully approved space plan within
fourteen (14) days of the Effective Date) and drawings related to the Landlord’s Work and Tenant Upgrades necessary to
obtain a building permit issued by the Town of Hurlock, and Lessor shall be solely responsible for obtaining all required
consents, approvals and permits related to the Landlord’s Work and Tenant Upgrades, including, but not limited to, all
approvals and permits issued by the Town of Hurlock.

 

    2

     

    

 

h.              
Lessor shall complete the Landlord’s Work and Tenant Upgrades, as set forth hereinabove, within one hundred and
six (106) days from the Effective Date. Notwithstanding the foregoing, in the event a Building Permit for the Landlord’s
Work and/or Tenant Upgrades, or any part thereof, is not issued within fifteen (15) days from the Effective Date, and that delay
is caused by Lessee, Lessor shall be provided additional days to complete the Landlord’s Work and Tenant Upgrades, beyond
the aforesaid one hundred and six (106) days, equal to the number of days Lessee caused the issuance of the Building Permit to
be delayed.

 

i.              
Upon Lessor’s completion of the Landlord’s Work and Tenant Upgrades, Lessor shall notify the Lessee in writing
and then immediately make the Premises available to Lessee. The date of Lessor’s notification to Lessee under this Section
4(i) shall be deemed the “Delivery Date”.

 

j.              
Lessee expressly acknowledges and agrees to pay Lessor, or its assigns, the amount of Eighty Thousand Dollars and 00/100
($80,000) (the “Contractor’s Fee”) in exchange for all general contractor services performed by Lessor
relating to the Landlord’s Work, Tenant Upgrades and Additional Tenant Upgrades (if there be any) within ten (10) days from
the Delivery Date.

 

k.             
Except as otherwise provided in Section 4(h) and/or Section 4(1) hereof, in the event the Delivery Date occurs more
than one hundred and six (106) days after the Effective Date, Lessee shall have the option to terminate this Lease immediately,
with no further obligation of either party to the other, upon Lessee’s written notice to Lessor providing Lessee’s
intention to terminate this Lease, and Lessee shall remove any products, equipment or materials purchased by Lessee within thirty
(30) days from the date of the aforesaid notice.

 

l.                As
used in this Lease, the term “Lessee Delay” means any situation where the Lessor, in performing any part of the
Landlord’s Work and/or Tenant Upgrades, reasonably requests in writing with sufficient background and detail (email is
acceptable) that Lessee provide to Lessor input, response or details necessary for Lessor to timely continue its the
Landlord’s Work and/or Tenant Upgrades and Lessee fails to respond to such request within four (4) business days. A
Lessee Delay shall also be defined to include a “change order” requested by Lessee that deviates from the
permitted construction drawings, provided Lessor can show by way of documentation that such change order will delay
Lessor’s performance of the Landlord’s Work and/or Tenant Upgrades by more than three (3) days. Upon the
occurrence of a Lessee Delay hereunder, Lessor shall promptly cause written notice of such Lessee Delay to be delivered to
the Lessee in accordance with the notice provisions contained herein (the “Notice of Delay”). Lessee shall have
five (5) days from the date of its receipt of a Notice of Delay to cure all such Lessee Delays described therein (the
 “Delay Cure Period”). In the event Lessee is able to cure said Lessee Delays within such Cure Period, this Lease
shall remain in full force and effect as if no Lessee Delay had occurred. In the event Lessee is unable to cure said Lessee
Delays within such Cure Period, then Lessor shall be entitled to exercise its rights under this Section 4(1). Lessor’s
determination as to the existence and duration of a Lessee Delay shall be conclusive, subject only to reasonably accepted
construction standards. In the event Lessee fails to cure any Lessee Delay within the applicable Cure Period, Lessor shall
have the right, in addition to any other rights and remedies afforded hereunder, to (i) accelerate the Rent Commencement Date
in the Lessor’s sole and absolute discretion, and/or (ii) seek reimbursement from Lessee for all costs and expenses
incurred by Lessor resulting from said Lessee Delay, including, but not limited to, any costs and expenses attributable to
finance expenses, increased cost of labor, materials, and project overhead and operating expenses, but not to exceed One
Thousand Dollars and 00/100 ($1,000.00) per day.

 

    3

     

    

 

5.             
Rent.

 

a.              
The “Rent Commencement Date” shall be the first (1st) day of the calendar month occurring after the Delivery
Date. Thus, by way of example only: if the Delivery Date is June 21, 2017, the Rent Commencement Date shall be July 1, 2017. Subject
to the provisions of Section 5(b) hereof, Lessee’s payment of the monthly base rent (“Monthly Base Rent”)
shall begin on the Rent Commencement Date and shall be Twenty Thousand Dollars and 00/100 ($20,000.00) per month ($240,000.00/year)
for the first twelve (12) months following the Rent Commencement Date. The Monthly Base Rent shall increase annually by two and
one-half percent (2.5%) on the anniversary of the Rent Commencement Date.

 

b.              
At “Closing” (as defined in Section 25 hereof) Lessor expects to receive payment from PPC (as defined
in Section 25 hereof) in the amount of One Hundred Thirty Five Thousand Dollars and 00/100 ($135,000.00) (the “Closing
Reimbursement”). Lessor shall apply the proceeds of the Closing Reimbursement as pre-paid Monthly Base Rent due and payable
by Lessee beginning on the Rent Commencement Date, such that the first six (6) payments of Monthly Base Rent due hereunder shall
be pre-paid in full and the Monthly Base Rent due on the first (1”) day of the seventh (7`h) month following the
Rent Commencement Date shall be credited by the balance of the Closing Reimbursement proceeds then remaining (i.e. expected to
be Five Thousand Dollars and 00/100 ($5,000.00)). In the event no Closing Reimbursement proceeds are paid to Lessor at Closing,
the full amount of the Monthly Base Rent shall be due and payable by Lessee to Lessor beginning on the Rent Commencement Date.
Likewise, should the Closing Reimbursement proceeds paid to Lessor at Closing are less than or greater than One Hundred Thirty
Five Thousand Dollars and 00/100 ($135,000.00), then any amount of pre-paid Monthly Base Rent under this Section 5(b) shall be
modified to reflect the amount of Closing Proceeds so paid to Lessor at Closing at the same rate set forth in Section 5(a) hereof.

 

c.              
In consideration of Lessor’s Contribution (as defined in Section 4(b)(1) hereof), Lessee shall make payment to
Lessor in the amount of Three Thousand Six Hundred Ninety Dollars and 31/100 ($3,690.31) per month for one hundred and twenty (120)
consecutive months (i.e. $325,000.00 amortized at the annual interest rate of 6.5% over 120 months), which said payment shall represent
“Additional Rent”. Lessee’s obligation to pay the Additional Rent shall begin on the first (1”)
day of the calendar month following the Delivery Date and shall continue until satisfied. (The Monthly Base Rent, Additional Rent
and any and all other charges to be paid by Lessee in accordance with the terms and conditions of this Lease are hereinafter referred
to collectively as the “Rents”). Notwithstanding any term to the contrary set forth herein, the obligation of
Lessee to make full and complete payment of the Additional Rent shall survive the expiration or earlier termination of this Lease.

 

    4

     

    

 

d.                 
 In accordance with subsections 5(a) and 5(c) hereof, the following Monthly Base Rent and Additional Rent payment schedule
shall apply:

 

	
        “Monthly
        Base Rent”:

        Year 1 -- $240,000.00/Year;
        $20,000.00/Month

        Year 2 -- $246,000.00/Year; $20,500.00/Month

        Year 3 -- $252,150.00/Year; $21,012.50/Month

        Year 4 -- $258,453.72/Year;
        $21,537.81/Month

        Year 5 -- $264,915.12/Year; 522,076.26/Month

        Year 6 -- $271,537.92/Year; $22,628.16/Month

        Year 7 -- $278;326.44/Year;
        $23,193.87/Month

        Year 8 -- $285,284.64/Year; $23,773.72/Month

        Year 9 -- $292,416.72/Year; $24,368.06/Month

        Year 10 -- 5299,727.12/Year;
        $24,977.26/Month $3,690.31/Month
	 	
        “Additional
        Rent”:

        Year 1 -- $44,283.72/Year;
        $3,690.31/Month

        Year 2 -- $44,283.72/Year; $3,690.31/Month

        Year 3 -- $44,283.72/Year;
        $3,690.31/Month

        Year 4 -- $44,283.72/Year;
        $3,690.31/Month

        Year 5 -- $44,283.72/Year;
        $3,690.31/Month

        Year 6 -- $44,283.72/Year;
        $3,690.31/Month

        Year 7 -- $44,283.72/Year;
        $3,690.31/Month

        Year 8 -- $44,283.72/Year;
        $3,690.31/Month

        Year 9 -- $44,283.72/Year;
        $3,690.31/Month

        Year 10 -- $44,283.72/Year;

 

e.              
Any and all Rents, and other payments due and payable by Lessee to Lessor, shall be due on the first (1st)
day of each month and shall be sent to Lessor at the address of P.O. Box 4322, Salisbury, Maryland 21803 or such other address
as directed by Lessor in writing. Any delay or failure of Lessor in computing or billing for any of the Rents due hereunder shall
not constitute a waiver of or in any way impair the continuing obligation of Lessee to pay such installment of Rents.

 

f.               
A late charge of five percent (5%) shall be applied to any and all payment(s) of Rents received by Lessor after the
third (3rd) day of each and every month during the original term of this Lease and any renewal thereof. Lessee agrees
that the late charge imposed under this Section 5(f) is fair and reasonable, to the best of the Lessor and Lessee’s knowledge
it complies with all laws, statutes and regulations, and constitutes an agreement between Lessor and Lessee as to the estimated
compensation for costs and administrative expenses incurred by Lessor resulting from Lessee’s late payment of Rents due hereunder.

 

g.              
To the extent Lessee fails to make any payment of Rents due hereunder and such failure continues for ten (10) days following
the date such payment of Rents is due, Lessor may provide Lessee with written notice of such failure and if Lessee does not cure
such failure within ten (10) days after Lessee’s receipt of written notice from Lessor, then, subject to the provisions of
Section 19(a) hereof, Lessor may upon written notice to Lessee declare such failure a default under this Lease and pursue all legal
remedies available to Lessor. If Lessor shall to file a lawsuit against Lessee for collection of any Rents due hereunder, Lessee
shall, in addition to all Rents due hereunder, be responsible and otherwise liable for payment of all court costs and reasonable
attorneys’ fees incurred by Lessor arising from or in connection with any such collection action.

 

h.               If
any check is mailed by Lessee for payment of Rents due hereunder, Lessee shall post such check in sufficient time prior to
the date when payment is due so that the check will be received by Lessor on or before the date when payment of Rents is due.
Lessee shall assume the risk of lateness, and any failure of delivery of the mails shall not excuse Lessee from its
obligation to have made the payment in question when required under this Lease. Lessor will accept payment of Rents made by
third parties on behalf of Lessee, however such acceptance by Lessor shall only be interpreted as an accommodation by Lessor,
and in no way does the acceptance of any payment from a third party create any tenancy relationship with that third party.
Lessee hereby agrees that payment of Rents, on its behalf, by any third party shall not occur more than three (3) times
during the term of this Lease and any renewal thereof. Lessor agrees that Lessee may pay any Rents due hereunder by cash
payment (with a mutually agreeable method to track such cash payments, e.g. a mutually signed receipt) in addition to
payment by check or wire transfer.

 

    5

     

    

 

6.             
Security Deposit.

 

a.              
Within five (5) business days of the Effective Date, Lessee shall make payment to Lessor, via certified funds, in the
amount of Three Hundred Thousand Dollars and 00/100 ($300,000.00) (the “Security Deposit”). The Security Deposit shall
be retained by Lessor, in a non-interest bearing escrow account, as security for Lessee’s faithful performance of all covenants,
conditions and agreements of this Lease. Subject to the provisions of Section 6(c) hereof, Lessor may apply the Security Deposit,
or any portion thereof, at its option and in its sole discretion and in no event shall Lessor be obligated to apply the Security
Deposit, or any portion thereof, to any Rents or other charges in arrears or to damages arising from Lessee’s failure to
perform the said covenants, conditions and agreements of this Lease.

 

b.              
Lessor’s right to the possession of the Premises for non-payment of any Rents or for any other reason shall not
in any way be affected by reason of the fact that the Lessor holds the Security Deposit.

 

c.               
In the event Lessor shall not have earlier applied the Security Deposit, or any portion thereof, toward the payment
of any Rents in arrears or toward the payment of damages suffered by Lessor arising from or consequent upon Lessee’s breach
of the covenants, conditions and agreements of this Lease, as permitted under Sections 6(a) 6(d) hereof, then Lessor shall return
the Security Deposit to Lessee in accordance with the following schedule:

 

1.              
On the forth (4th) anniversary of the Delivery Date (i.e. upon the expiration of forty-eight (48) months
from the Delivery Date), Lessor shall return Fifty Thousand Dollars and 00/100 ($50,000.00) of the Security Deposit to Lessee.

 

2.              
On the fifth (5th) anniversary of the Delivery Date (i.e. upon the expiration of sixty (60) months from the
Delivery Date), Lessor shall return Fifty Thousand Dollars and 00/100 ($50,000.00) of the Security Deposit to Lessee.

 

3.              
On the sixth (6th) anniversary of the Delivery Date (i.e. upon the expiration of seventy-two (72) months
from the Delivery Date), Lessor shall return Two Hundred Thousand Dollars and 00/100 ($200,000.00) of the Security Deposit to Lessee
or, in the event Lessor applied any portion of the Security Deposit in accordance with the provisions of Section 6(a) hereof prior
to the sixth (61’) anniversary of the Delivery Date, then Lessor shall return the balance of the Security Deposit
so remaining to Lessee, and Lessor shall be discharged from any and all further liability with respect to the Security Deposit.

 

    6

     

    

 

d.             
 In the event Lessor repossesses the Premises because of Lessee’s default hereunder or because of Lessee’s
failure to perform any of the covenants, conditions and agreements of this Lease, Lessor may apply the Security Deposit, or any
portion thereof, against any damages suffered by Lessor on or before the date of said repossession, and/or retain the Security
Deposit, or any portion thereof, to apply to such damages Lessor may have suffered or which may accrue thereafter by reason of
Lessee’s default or breach hereunder. Lessor may deliver the Security Deposit to any purchaser of Lessor’s interest
in the Premises, in the event that such interest is sold by Lessor and provided that any such purchaser of Lessor’s interest
in the Premises expressly agrees to assume the obligations of Lessor under Section 6(c)(1)-(3) hereof as applicable, and thereupon
Lessor shall be discharged from any further liability with respect to the Security Deposit.

 

e.              
Notwithstanding any term to the contrary set forth herein, in the event Lessee elects to terminate this Lease under
Section 4(k) or Section 20 hereof, Lessor shall promptly return the full amount of the Security Deposit or balance thereof, as
the case may be, to Lessee.

 

7.             
Options.

 

a.              
Provided that this Lease is then in full force and effect and Lessee is not in default thereof for which Lessor has
provided written notice of such default to Lessee at the time of the following options, Lessee shall have the option to extend
the term of this Lease for two (2) additional terms of five (5) years each, provided Lessee gives written notice to Lessor of Lessee’s
intention to exercise its option to extend the term of this Lease as to its first option no later than one hundred eighty (180)
days prior to the expiration of the original term (i.e. ten (10) years after the Delivery Date) and no later than one hundred eighty
(180) days prior to the expiration of the first option renewal term with respect to Lessee’s second renewal option. During
either option term, if exercised, all of the agreements and conditions contained in this Lease shall apply, except that the amount
of Monthly Base Rent, for each and every year of each renewal term, shall increase annually by two and one-half percent (2.5%)
on the anniversary of each lease year and, furthermore, Lessee shall not owe any Additional Rent during any renewal term provided
that Lessee has satisfied all Additional Rent due and owing Lessor hereunder.

 

b.               To
the extent Lessee fails to possess any of the permits, consents or licenses necessary for Lessee to perform or otherwise
conduct its Permitted Use (as defined herein) and such failure exists on the sixth (6th) anniversary of the Rent
Commencement Date, then upon no less than one (1) year prior written notice and payment of (i) Three Hundred Fifty Thousand
Dollars and 00/100 ($350,000.00) and (ii) any unamortized Additional Rent remaining (collectively the “Early
Termination Payment”) by Lessee to Lessor, Lessee may terminate this Lease effective one (1) year following
Lessor’s receipt of such written notice provided that Lessee makes payment of the Early Termination Payment to Lessor
on or before the effective date of the termination under this Section 7(b). Thus, by way of example only: if the Rent
Commencement Date is October 1, 2017 and on October 1, 2023 Lessee fails to possess permits, consents or licenses
permitting it to perform or otherwise conduct its Permitted Use (as defined herein), then Lessee may, at its sole option,
provide Lessor with written notice of its intent to terminate this Lease effective October 1, 2024 and, to the extent that
Lessee does so and also pays the Early Termination Payment to Lessor, and such payment is delivered to Lessor on or before
October 1, 2024, then this Lease shall terminate effective October 1, 2024 without recourse by the Parties except as
otherwise provided herein.

 

    7

     

    

 

8.             
HVAC Equipment & Systems. Lessor shall install HVAC systems suitable for the Premises prior to the Delivery
Date and upon installation Lessor shall ensure that such HVAC systems will be in new and proper working condition, beginning on
the Delivery Date. Any manufacturer’s warranty provided by a manufacturer of an HVAC system installed by Lessor hereunder
shall be exhausted prior to any Lessee obligation to maintain or repair any such HVAC system. Lessee shall coordinate all repairs
to an HVAC system done under a manufacturer’s warranty. For sake of clarity, to the extent that any of the HVAC systems described
on Exhibit A need to be replaced during the term of this Lease or any renewal thereof, Lessor shall be responsible
for such replacement, unless the replacement is caused by the negligence of the Lessee.

 

9.             
Permitted Use.

 

a.              
Lessee may use the Premises for any use not prohibited by Maryland and/or local law, rule or regulation, including any
and all zoning codes or regulations established by the Town of Hurlock (the “Permitted Use”). The Parties agree that
the term “Permitted Use” shall include Lessee’s use of the Premises for the purpose of growing, cultivating,
harvesting and wholesaling medical cannabis provided Lessee conducts such use in material compliance with all terms and conditions
of any permit and/or license issued to Lessee by the Maryland Medical Cannabis Commission (“MMCC”). At all times during
the term of this Lease and any renewal thereof, Lessee, at its sole cost and expense, shall conduct its Permitted Use of the Premises
(as defined in this Section 9(a)) in compliance with all state and local laws, rules and regulations now in force or which may
hereinafter be enacted, promulgated or otherwise amended.

 

b.              
Lessee hereby acknowledges and agrees that Lessee is expressly prohibited from permitting the use of any cannabis or
medical cannabis product, including the smoking, inhalation or ingestion thereof, at the Premises. Lessee further acknowledges
and agrees that Lessee shall be solely responsible for purchasing, installing and otherwise maintaining any legally required electronic
surveillance system at the Premises or implementing any other legally required security protocols to ensure Lessee’s compliance
with its Permitted Use of the Premises as well as to ensure the safety of its personal property and the safety of Lessee’s
employees, agents, representatives, invitees, licensees and contractors entering on the Premises. Lessee assumes all risk of damage
to its personal property (and the personal property of Lessee’s employees, agents, representatives, invitees, licensees and
contractors) stored, kept or maintained at the Premises.

 

c.              
Notwithstanding any term to the contrary set forth herein, Lessor hereby expressly acknowledges and agrees that, so
long as Lessee materially complies with all applicable Maryland laws, regulations and rules governing any permit or license issued
by the MMCC to Lessee, any medical cannabis possessed, handled, controlled or dispensed by Lessee at the Premises, for purposes
of Lessee’s Permitted Use under Section 9(a) hereof, shall not be deemed a Hazardous Substance under this Lease or otherwise
violate the terms and conditions hereof.

 

10.           Quiet
Possession. Upon Lessee paying the Rents reserved hereunder and observing performing all of the covenants, conditions
and provisions on Lessee’s part to be observed and performed hereunder, Lessee shall have quiet possession of the
Premises for the entire term of this Lease and any renewal thereof, subject to all provisions of this Lease.

 

    8

     

    

 

11.           
Subletting & Assignment.

 

a.              
Lessee may sublet or assign the Premises to an entity that is owned or controlled by all or substantially all (i.e.
at least sixty-two and one-half percent (62.5%) of the ownership interests comprising Lessee as of the Effective Date) of the owners
of Lessee without Lessor’s consent provided Lessee provides documentation to Lessor showing the creditworthiness of such
assignee which such creditworthiness shall be adjudged by Lessor in its sole discretion and, furthermore, Lessee provides all documents
evidencing the approved transfer of all applicable licenses and permits required by the MMCC. Lessee shall not sublet the Premises
or any portion thereof, nor shall this Lease be assigned by Lessee other than as provided in the immediately preceding sentence
without the prior written consent of the Lessor, which such consent may be withheld by Lessor for any reason whatsoever.

 

b.              
In the event the Lessor consents to a sub-lessee for the Premises, in which case the terms and conditions identified
in this Lease (as modified to identify the privity between the Lessee and a sub-lessee) shall apply to such sub-tenancy and shall
be referred to as the “Sublease”, the following shall apply.

 

1.             
Sub-lessee’s Defaults. Lessor and Lessee hereby agree that, if a sub-lessee shall be in default of any
obligation of sub-lessee under the Sublease which default also constitutes a default by Lessee under this Lease, then Lessor shall
be permitted to avail itself of all of the rights and remedies available to Lessor against Lessee and/or sub-lessee in connection
with this Lease.

 

2.             
Lessor’s Rights. Without limiting the generality of the foregoing, Lessor may (by assignment of a cause
of action or otherwise) institute an action or proceeding against a sub-lessee in the name of Lessee in order to enforce Lessee’s
rights under the Sublease, in which case Lessor shall be permitted to take all ancillary actions (e.g., serve default notices and
demands) in the name of Lessee as Lessor deems necessary.

 

3.             
Lessee Cooperation. Lessee agrees to cooperate with Lessor, and to execute such documents as shall be reasonably
necessary, in connection with the implementation of Lessor’s rights under Sections 11(b)(1)-(2) hereof.

 

c.              
Lessor shall have the right to assign this Lease to any third party without the prior written consent of Lessee provided
that any such assignee agrees to observe and comply with all of the terms and conditions of this Lease. Such assignment shall relieve
Lessor of any liability concerning this Lease although Lessor shall first satisfy all past liabilities and obligations to Lessee,
if any, prior to consummating the assignment. All future liabilities and obligations shall be assumed by the assignee of Lessor.

 

12.           
Alterations & Repairs.

 

a.               Lessee
has examined the Premises and accepts them in their present condition and without any representations on the part of the
Lessor or its agents as to the present condition of the said Premises except as otherwise expressly provided herein
including, but not limited to, Lessors obligations to timely and properly complete the Landlord’s Work and Tenant
Upgrades.

 

    9

     

    

 

b.              
Commencing on the Delivery Date: (i) Lessee shall keep the Premises in good condition, reasonable wear and tear excepted;
(ii) Lessee shall be responsible for all maintenance of the grounds and maintenance of the landscaping of the Premises; and, (iii)
Lessee shall be responsible for the salting and snow removal of sidewalks, parking areas of the necessary areas of the Premises.

 

c.              
For the term of this Lease and any renewal thereof, Lessor shall be responsible for prompt structural repairs and replacements
for the Premises including, the roof and building envelope at Lessor’s sole cost. Lessee shall be responsible for care and
maintenance of the interior and exterior of the Premises including all plumbing and electrical systems serving the Premises and
all routine, quarterly maintenance of HVAC systems installed at the Premises. Lessee shall keep same in good order and condition,
maintaining service contracts where appropriate and make necessary repairs and replacement of any such parts or components at Lessee’s
sole cost and expense.

 

d.              
Lessor shall not create, permit or suffer any mechanics or other liens or encumbrances on any of the Landlord’s
Work and Tenant Upgrades. Lessee shall not create, permit or suffer any mechanic’s or other lien or encumbrance on or affecting
the Premises other than the Landlord’s Work and Tenant Upgrades. Lessor shall not be liable for any labor, services or materials
furnished to any Lessee or any sub-lessee in connection with any work performed on or at the Premises other than the Landlord’s
Work and Tenant Upgrades. Should such a lien or encumbrance be filed, or attached to the Premises, Lessee shall have sixty (60)
days to have such lien or encumbrance removed. To the extent that Lessee fails to remove a lien or encumbrance within such sixty
(60) day period, Lessor may pay the said lien, without inquiring into the validity thereof, and the Lessee shall forthwith reimburse
the Lessor the total expense and costs (including all court costs, interest fees, and reasonable attorney’s fees and/or expert
fees) incurred by the Lessor in discharging the said lien as Rents hereunder. To the extent that Lessee fails to pay the Rents
described in the preceding sentence within twenty (20) days of invoicing by Lessor, Lessor may consider such failure a default
by Lessee under this Lease.

 

e.              
Lessee shall quit and surrender the Premises at the end of the term of this Lease or any renewal thereof (if applicable)
in good, clean condition with Lessee provided reasonable time before the end of the term of this Lease or any renewal thereof (if
applicable) to remove any equipment, fixtures, property, inventory or similar items that Lessee installed or maintained at the
Premises, including those Tenant Upgrade items that Lessee can remove without damaging the Premises, to the extent that Lessee
made all Additional Rent payments to Lessee under Section 5(c) hereof.

 

f.                Lessor,
or its agents, upon no less than two (2) business days prior written notice (except in emergencies), shall have the right to
enter the Premises at reasonable hours in the day to examine the same, or to make such repairs, additions or alterations as
it shall deem necessary for the safety, preservation or restoration of the improvements, or for the safety or convenience of
the occupants or users thereof (there being no obligation, however, on the part of the Lessor to make any such repairs,
additions or alterations unless otherwise required in this Lease), or to exhibit the same to prospective tenants no sooner
than two (2) months prior to the expiration of the term of this Lease or any renewal thereof (if applicable). Lessor may
enter the Premises at any time for the purpose of emergency repairs. For purposes of this Section 12(h) notice by electronic
mail shall be sufficient.

 

    10

     

    

 

g.              
In the event of the destruction of the Premises by fire, explosion, the elements or otherwise during the term of this
Lease or any renewal term, or such partial destruction thereof as to render the Premises impracticable or unfit for Lessee’s
Permitted Use, or should the Premises be so injured that the same cannot be repaired within ninety (90) days from the happening
of such damage, then and in such case this Lease shall, at the option of either party, cease and become null and void from the
date of such damage or destruction, and Lessee shall promptly surrender the Premises and all the Lessee’s interest therein
to the Lessor, and shall pay all Rents due through the date of such damage, unless the damage was caused by Lessee in which case
Lessor may, at its sole option, re-enter and repossess the Premises thus discharged from this Lease and may remove all parties
and their property therefrom. Should the Premises be rendered untenantable and unfit for occupancy, but yet be repairable within
ninety (90) days from the happening of said damage, Lessor shall inform Lessee of such in writing within ten (10) days of the date
the damage occurred and may enter and promptly repair the same with all diligence, and the Rents shall not be payable after said
damage through the time that all such repairs are being made, but shall recommence on the first (1’) day of the calendar
month following Lessor’s proper completion of all repairs and receipt of all new permits and approvals necessary for Lessee
to restart operations. If Lessor provides written notice to Lessee that it will complete all repairs within the ninety (90) day
maximum period but fails to do so or fails to obtain the new permits and approvals, Lessee may immediately terminate the Lease
without any further obligation to Lessor (except as provided in Section 5(c) hereof) or agree to continue with the Lease with two
(2) months Monthly Base Rent extinguished based on Lessor’s failure. But if the Premises shall be so slightly injured as
not to be rendered untenantable and unfit for occupancy, then Lessor shall inform Lessee in writing of such and Lessor agrees to
fully repair the same with reasonable promptness and in that case Lessee shall pay the Monthly Base Rent at one half (1/2) of the
normal amounts from the time of the damage until Lessor fully and properly completes the repairs. A party shall immediately notify
the other party in case they become aware of fire or other damage to the Premises.

 

13.           
Compliance with Environmental Laws.

 

a.              
Lessee represents that it will not hold or store “Hazardous Substances” as defined herein at the Premises.

 

b.             
Upon the Delivery Date, Lessee shall be responsible for its compliance with all applicable federal, state and local
environmental laws rules and regulations (“Environmental Laws”) with respect to the Permitted Use of the Premises.

 

c.              Lessee
covenants and agrees to indemnify, defend and hold harmless Lessor, any mortgagee of Lessor and their respective successors
and assigns from and against any and all damages, losses, liabilities, obligations, penalties, claims, litigation,
proceedings, or expenses of any kind or of any nature whatsoever (including reasonable attorneys’ fees and
experts’ fees incurred by Lessor in the defense thereof) arising out of a breach of the provisions of Section 13(b)
hereof. The provisions of this Section 13(c) shall survive the expiration or earlier termination of this Lease.

 

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d.              
For purposes of this Lease, the term “Hazardous Substances” shall mean and refer to asbestos, asbestos containing
materials, polychlorinated biphenyls, radioactive materials, pollutants, contaminants, or any other hazardous materials which is
restricted or prohibited, under, any federal or Maryland state laws or regulations. The Parties expressly acknowledge and agree
that, so long as Lessee materially complies with all applicable Maryland laws, regulations and rules governing any permit or license
issued by the MMCC to Lessee, any medical cannabis possessed, handled, controlled or dispensed by Lessee at the Premises, for purposes
of Lessee’s Permitted Use under Section 9(a) hereof, shall not be deemed a Hazardous Substance under this Lease.

 

e.               
Lessor covenants and agrees to indemnify, defend and hold harmless Lessee and its successors and assigns from and against
any and all damages, losses, liabilities, obligations, penalties, claims, litigation, proceedings, or expenses of any kind or of
any nature whatsoever (including reasonable attorneys’ and experts’ fees and disbursements) arising out of the presence
of any Hazardous Substances being held or used on the Premises on or before the Delivery Date and for the violations of any Environmental
Laws that occurred prior to the Delivery Date. The provisions of this Section 13(e) shall survive the termination of this Lease.

 

14.           
Insurance; Liabilities; Taxes.

 

a.              
Indemnity by Lessee. Lessee shall indemnify and hold harmless Lessor, its officials, members, directors, agents,
representatives, insurers, employees and assigns (collectively hereinafter referred to in this Section 14(a) as “Indemnitees”)
against and from any and all claims arising from Lessee’s use of the Premises or from the conduct of its business or from
any activity, work, or other things done, permitted or suffered by the Lessee in or about the Premises, and shall further indemnify
and hold harmless Indemnitees against and from any and all claims arising from any breach or default in the performance of any
obligation on Lessee’s part to be performed under the terms of this Lease, or arising from any act or negligence of the Lessee,
or any officer, agent, employee, guest, or invitee of Lessee, and from all costs, attorney’s fees, and liabilities incurred
in or about the defense of any such claim or any action or proceeding brought thereon, and in case any action or proceeding be
brought against any Indemnitee by reason of such claim, Lessee, upon notice from Lessor, shall defend the same at Lessee’s
sole cost and expense by counsel reasonably satisfactory to any such Indemnitee. Lessee, as a material part of the consideration
to Lessor (and therefore Indemnitees) hereby assumes all risk of damage to property, or injury to persons in, upon, or about the
Premises, from any cause whatsoever, except as caused by the sole negligence of Lessor. Lessee shall give prompt notice to Lessor
in case of casualty or accidents in or to the Premises. In addition to the foregoing (and as not to limit the foregoing), Lessee
shall indemnify and hold harmless any Indemnitee from and against any and all claims, demands, investigations or civil forfeiture
proceedings made or initiated by any federal, state or local authority having jurisdiction over Lessee and its use of the Premises,
regardless of whether such use is permitted hereunder.

 

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b.              
 Indemnity by Lessor. Lessor shall indemnify, hold harmless and defend Lessee from and against any and all third
party claims, actions, damages, liability and reasonable expense, including, but not limited to, reasonable attorney’s and
other professional fees, in connection with loss of life, personal injury and/or damage to, property arising from or out of the
solely negligent acts of Lessor, its officers, members, directors, agents, representatives, assigns, contractors, employees or
invitees.

 

c.              
Insurance. At all times prior to the Delivery Date, Lessor shall obtain, carry and maintain all appropriate and
legally required insurances coverages on the Premises, including all appropriate, reasonable and necessary insurance coverages
related to the performance of the Landlord’s Work and Tenant Upgrades at Lessee’s sole cost, which such expense shall
be payable as Rents hereunder. At all times after the Delivery Date and until the expiration or earlier termination of this Lease,
Lessee shall, at its sole cost and expense, carry and maintain insurance coverages in those amounts identified on the attached
Exhibit D. At all times after the Effective Date and until the expiration or earlier termination of this Lease, Lessor
shall carry and maintain, at Lessee’s sole cost and expense, insurance coverages in the amounts identified on the attached
Exhibit E. Each of the Parties shall provide evidence of the coverages each is required to provide under this Section
14(c) to the other party promptly upon request so long as this Lease shall be in effect.

 

d.              
Taxes. Upon the Delivery Date and continuing until the expiration or earlier termination of this Lease, Lessee shall
pay, at its sole cost and expense as Rents hereunder, all real estate taxes, assessments and benefit charges imposed on the Premises.
Upon the Delivery Date and continuing until the expiration or earlier termination of this Lease, Lessee shall pay all personal
property taxes imposed against Lessee’s personal property, if any, within or on the Leased Premises.

 

15.           
Utilities & Services. As of the Delivery Date, Lessor shall ensure that all utilities necessary as defined
in Exhibit A for Lessee’s operation of the Premises shall be fully functional and operational. All utilities
furnished to the Premises after the Delivery Date, including but not limited to all water, gas, heat, light, power, sewer and/or
telephone service, shall be provided and paid for by the Lessee together with any taxes thereon. After the Delivery Date, the Lessor
shall not be liable for any interruption or delay of any of the utility services supplied to the Premises for any reason whatsoever.

 

16.           
Laws & Permits. At times during the term of this Lease and any renewal thereof, Lessee expressly acknowledges
and agrees that it shall observe and comply with all laws, ordinances, rules and regulations of the State of Maryland, Dorchester
County and Town of Hurlock applicable to Lessee’s Permitted Use of the Premises.

 

17.           
Signs.

 

a.             
Lessee may affix any sign, advertisement or notice to the Premises to the extent that Lessee first obtains any applicable
governmental consents or approvals necessary for such.

 

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b.             
 All signage design, construction and installation shall be at Lessee’s sole cost and expense.

 

c.              
Lessee shall install and maintain all signage at the Premises in compliance with the of laws of the governing municipality
and/or county.

 

18.           
Lessee Default. The occurrence of any one or more of the following events shall constitute a default and breach
of this Lease by Lessee.

 

a.              
The vacating or abandonment of the Premises by Lessee.

 

b.              
The failure by Lessee to make any payment of Rents or any other payment required to be made by Lessee hereunder, as
and when due, where such failure shall continue for a period of ten (10) days from the due date.

 

c.              
The failure by Lessee to observe or perform any of the material covenants, conditions or provisions of this Lease to
be observed or performed by the Lessee, where such failure shall continue for a period of fifteen (15) days from Lessee’s
receipt of written notice thereof issued by Lessor to Lessee.

 

d.             
The making by Lessee of any general assignment or general arrangement for the benefit of creditors; or the filing by
or against Lessee of a petition to have Lessee adjudged bankrupt, or a petition or reorganization or arrangement under any law
relating to bankruptcy (unless, in the case of a petition filed against Lessee, the same is dismissed within thirty (30) days);
or the appointment of a trustee or a receiver to take possession of substantially all of Lessee’s assets located at the Premises
or of Lessee’s interest in this Lease, where possession is not restored to Lessee within thirty (30) days; or the attachment,
execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s
interest in this Lease, where such seizure in not discharged within thirty (30) days.

 

19.          
Remedies in Default.

 

a.              
In the event Lessee is in default or breach of this Lease as set forth in Section 18 hereof, Lessee shall have ten (10)
days from its receipt of written notice from Lessor, setting forth Lessee’s default or breach hereunder, to make payment
to Lessor (in the form of cash, cashier’s check or other certified funds) in the amount of the sum of all Rents due for the
twelve (12) months immediately following the month in which Lessee’s default or breach of this Lease occurred (for purposes
of this Section 19, said payment by Lessee to Lessor shall be referred to as the “Curing Payment”). The Curing Payment
shall be credited to Lessee for its payment of those Rents covered by the Curing Payment. Upon Lessor’s timely receipt of
the Curing Payment, Lessee’s default or breach shall be deemed cured.

 

b.               
In the event Lessee fails to pay the Curing Payment in accordance with Section 19(a) hereof, then Lessor may, at any
time following the date such Cure Payment is due under Section 19(a), in its sole discretion, and without limiting Lessor in the
exercise of a right or remedy which Lessor may have by reason of such default or breach:

 

    14

     

    

 

1.             
 Terminate Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate
and Lessee shall immediately surrender possession of the Premises to Lessor. In such event, Lessor shall be entitled to recover
from Lessee all damages incurred by Lessor by reason of Lessee’s possession of the Premises including the costs reasonably
incurred by Lessor to restore the Premises in good order and condition, reasonable attorney’s fees, the worth, at the time
of an award by the court having jurisdiction thereof, of the amount of any unpaid Rents and other charges due for the balance of
the term herein (or any renewal term if applicable), excepting any such sums and/or amounts that Lessor could have reasonably avoided.
Upon Lessor’s termination of Lessee’s right to possession of the Premises, as set forth in this Section 19(b)(1), any
unpaid installments of Rents or other sums shall bear interest from the date due at the maximum legal rate; or

 

2.              
Maintain Lessee’s right to possession, in which case this Lease shall continue in effect whether or not Lessee
shall have abandoned the Premises. In such event Lessor shall be entitled to enforce all of Lessor’s rights and remedies
under this Lease including the right to recover the Rents and any other charges and adjustments as may become due hereunder; or

 

3.              
Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the State in which
the Premises are located.

 

20.          
Lessor Default. If Lessor shall fail to promptly perform any material covenant, condition or agreement stated
in this Lease and such failure shall continue for thirty (30) days after Lessor’s receipt of written notice of such from
Lessee, Lessor shall be deemed to be in default (“Lessor Default”) and Lessee, upon securing a court order, without
further notice, may, at its option either (i) continue to lease the Premises under this Lease while the Lessor Default continues
deducting from the Rents owed the costs and detriments incurred by Lessee related to the Lessor Default or (ii) terminate this
Lease effective as of the date identified by Lessee by providing written notice of such termination to Lessor. To the extent that
Lessee terminates this Lease under subpart (ii), Lessee shall be provided a reasonable period of time to remove any of its property,
fixtures, Tenant Upgrades and Additional Tenant Improvements that Lessee desires and Lessee shall not have any further obligations
to Lessor under this Lease.

 

21.          
Notices. All notices and demands, legal or otherwise, incidental to this Lease or the occupation of the Premises,
shall be in writing. If the Lessor or its agent desires to give or serve upon the Lessee any notice or demand, it shall be sufficient
to send a copy thereof by registered or certified mail, addressed to the Lessee at the Premises, or to leave a copy thereof with
a person of suitable age found on the Premises, or to post a copy thereof upon the door to said Premises. Notices from the Lessee
to the Lessor shall be sent by registered or certified mail or delivered to the Lessor at the place hereinbefore designated for
the payment of rent, or to such other party or place as the Lessor may from time to time designate in writing.

 

22.           Holding
Over. In the event that the Lessee shall remain in the Premises after the expiration of the term of this Lease (or
renewal term if applicable) without having executed a new written lease with the Lessor, such holding over shall not
constitute a renewal or extension of this Lease on a month to month basis. The Lessor may, at its option, elect to treat the
Lessee as one who has not removed at the end of its term, and thereupon be entitled to all the remedies against the Lessee
provided by law in that situation, or the Lessor may elect, at its option, to construe such holding over as a tenancy from
month to month, subject to all the terms and conditions of this Lease, except as to the duration thereof, and except that the
Lessor, at its option, may charge the Lessee a monthly rent equivalent to one hundred twenty five percent (125%) of the
Monthly Base Rent due for the last month of the term (or renewal term if applicable). Said increased Monthly Base Rent shall
not be construed to be liquidated damages and therefore, if the Premises are not surrendered at the end of the term, or any
renewal term if applicable, Lessee shall be responsible to Lessor for all damages which Lessor may suffer by reason thereof,
and Lessee shall indemnify, hold harmless and defend Lessor from all claims made by a successor lessee resulting from
Lessor’s delay in delivering possession of the Premises to such successor lessee.

 

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23.           
Estoppel. Lessee shall provide Estoppel Certificates to Lessor within fifteen (15) days of Lessee’s receipt
of Lessor’s written request. In the Estoppel Certificate, Lessee shall certify, but only to the extent true:

 

		i.	that this Lease is in full force and effect;

 

		ii.	that Lessee knows of no default hereunder on the part of Lessor, or if it has reason to believe
that such a default exists, the nature thereof in reasonable detail;

 

		iii.	the amount of the Rents being paid and the last date to which Rents have been paid;

 

		iv.	that this Lease has not been modified, or if it has been modified, the terms and dates of such
modifications;

 

		v.	that the term of this Lease has commenced;

 

		vi.	the commencement and expiration dates of this Lease;

 

		vii.	whether all work to be performed by Lessor has been completed;

 

		viii.	whether Lessee’s option to renew the term of this Lease has been exercised; and,

 

		ix.	whether there exist any claims or deductions from, or defenses to, the payment of Rents.

 

If Lessee fails to execute
and timely deliver to Lessor a completed Estoppel Certificate as set forth in this Section 23, Lessee hereby appoints Lessor as
its attorney-in-fact to execute and deliver such certificate for and on behalf of Lessee.

 

24.          
Condemnation. If the property or any part thereof wherein the Premises are located shall be taken by public or
quasi-public authority under any power of eminent domain or condemnation, this Lease, at the option of Lessor, shall terminate
upon no less than sixty (60) days prior written notice from Lessor and Lessee shall have no claim or interest in or to any award
of damages for such taking. In such situation, neither Lessor nor Lessee shall be held liable for the terms of the Lease except
as set forth in Section 5(c) hereof.

 

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25.           
 Conditions of Lease. No rights are to be conferred upon either party, nor will any obligations be assumed by
either party hereunder, and this Lease shall not be deemed to take effect until all of the following shall have occurred:

 

a.              
The Assignment and Assumption Agreement, of even date herewith, by and between Lessor and Lessee, whereby Lessee assigns
all of its right, title and interest in and to that certain Purchase Option Agreement (“Option Agreement”), dated February
1, 2017, by and between Lessee and PPC Lubricants, Inc. (“PPC”), a Pennsylvania business corporation, unto Lessor such
that Lessor assumes all of Lessee’s right, title and interest in and to the Option Agreement.

 

b.              
This Lease has been fully executed by Lessor and Lessee;

 

c.              
The Security Agreement, of even date herewith, by and between Lessor and Lessee, securing Lessee’s obligations
under Section 5(c) hereof, has been executed by Lessor and Lessee;

 

d.              
The Confessed Judgment Promissory Note, of even date herewith, for Lessee’s payment of the Additional Rents (as
defined herein) has been executed by Lessee; and,

 

e.              
The Guaranty, of even date herewith, guarantying Lessee’s obligations hereunder, has been executed by Dorchester
Management, LLC.

 

f.               
Lessee has closed upon its purchase of the Premises from PPC and title to the Premises has been conveyed to Lessee (“Closing”).

 

26.          
Recording of Lease. Lessee shall not record this Lease or a short-form memorandum hereof without the prior written
consent of Lessor. Upon Lessor’s request, Lessee agrees to execute a short-form memorandum of this Lease for recordation
purposes.

 

27.          
Bankruptcy. It is expressly agreed between the Parties hereto that if Lessee shall be adjudicated bankrupt or
take the benefit of any Federal reorganization or composition proceeding or make a general assignment or take the benefit of any
insolvency law, or if Lessee’s leasehold interest under this Lease shall be sold under any execution or process of law, or
if a trustee in bankruptcy or a receiver be appointed or elected or had for Lessee (whether under Federal or State Laws), or if
said Premises shall be abandoned or deserted, or if Lessee shall fail to perform any of the covenants or conditions of this Lease
on Lessee’s part to be performed, or if this Lease or the term hereof (or any renewal term if applicable) be transferred
to pass to or devolve upon any person, entity, firm, officer or corporation other than Lessee then, and in any of such events,
this Lease and the term hereof (or the renewal term, as the case may be), at Lessor’s option, shall expire and end five (5)
days after Lessor shall give Lessee written notice (in the manner hereinabove provided) of such act, condition or default, and
Lessee hereby agrees immediately then to quit and surrender the Premises to Lessor; but this shall not impair nor affect Lessor’s
right to maintain summary proceedings for the recovery of the possession of the Premises in all cases provided for by law. If this
Lease shall be so terminated, Lessor may immediately or at any time thereafter re-enter or repossess the Premises and remove all
persons and property therefrom without being liable for trespass or damages.

 

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28.          
 No Partnership. By entering into this Lease, Lessor does not in any way, for any purpose, become a partner or
principal of Lessee in the conduct of its business or otherwise or become a joint venturer or member of a joint enterprise with
Lessee.

 

29.          
Written Agreement. This Lease contains the entire agreement between the Parties hereto and all previous negotiations
leading thereto. This Lease may be modified only by an agreement in writing signed and sealed by Lessor and Lessee. No surrender
of the Premises or of the remainder of the term (or renewal term, as the case may be) of this Lease shall be valid unless accepted
in a writing signed by Lessor.

 

30.           
Heirs & Assigns. This Lease and all provisions, covenants and conditions hereof shall be binding upon and
inure to the benefit of the heirs, legal representatives, successors and assigns of the Parties hereto, except that no person,
firm, corporation or court officer holding under or through Lessee in violation of any of the terms, provisions or conditions of
this Lease shall have any right, interest or equity in or to this Lease, the term (and any renewal term(s)) of this Lease or the
Premises covered by this Lease.

 

31.          
Construction. The validity and construction of this Lease or of any of its provisions shall be determined under
the laws of the State of Maryland without regard to its conflict of laws principles. This Lease and all the terms and conditions
thereof shall not be subject to any special interpretation or construction by reason of the fact that the within Lease was prepared
by or for any party hereto or by counsel for any of said parties. The term “Lessee” when used in this Lease, shall
mean any individual, corporation, partnership, firm, trust, joint venture, business association, syndicate, combination organization
or any other person or entity and shall be deemed to include any other gender, and words in the singular number shall be held to
include the plural, when the context requires.

 

32.          
Legal Expenses.

 

a.              
In case suit shall be brought for recovery of possession of the Premises, for the recovery of any Rents or any other
amount due under the provisions of this Lease, or because of the breach of any other covenants herein contained to be kept or performed
by Lessee, and a breach shall be established, Lessee shall pay to Lessor all expenses incurred by Lessor, including all reasonable
attorney’s fees and litigation costs in the event Lessor prevails in such suit. Any amounts paid by Lessee pursuant to this
Section 32(a) shall be deemed Rents.

 

b.              
In case suit shall be brought because of the breach of any covenant herein contained to be kept or performed by Lessor,
and a breach shall be established, Lessor shall pay to Lessee all expenses incurred by Lessee, including all reasonable attorney’s
fees and litigation costs in the event Lessee prevails in such suit.

 

33.           
Waiver of Jury Trial. The Parties hereto shall and they hereby do waive trial by jury in any action, proceeding or
counter-claim brought by either of the Parties hereto against the other on any matters whatsoever arising out of or in any way
connected with this Lease, the relationship of Lessor and Lessee, Lessee’s use or occupancy of the Premises, and/or any claim
or injury or damage.

 

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34.           
 Waiver of Right of Redemption. Lessee hereby expressly waives any and all rights of redemption granted by or
under any present or future laws in the event of Lessee being evicted or dispossessed for any cause, or in the event of Lessor
obtaining possession of the Premises by reason of the violation by Lessee of any of the covenants or conditions of this Lease,
or otherwise.

 

35.          
Severability. Each provision of this Lease shall be considered separable; and, if, for any reason, any provision
or provisions herein are determined to be invalid and contrary to any existing or future law, such invalidity shall not impair
the operation of or affect those portions of this Lease which are valid.

 

36.          
Section Headings. The headings herein are inserted as a matter of convenience only, and do not define, limit,
or describe the scope of this Lease or the intent of the provisions hereof.

 

37.          
Jurisdiction & Venue. The Parties hereto acting for themselves and for their respective successors and assigns,
without regard to domicile, citizenship or residence, hereby expressly and irrevocably consent to and subject themselves to the
jurisdiction of the Maryland courts and to venue in Wicomico County, Maryland with respect to any matter, claim and/or dispute
arising under or in connection with this Lease.

 

38.          
Subordination. This Lease is subject to, and subordinate to, underlying leases, and mortgages affecting such
leases or the Premises, and renewal replacements, or modifications thereof. Lessee will, if required, execute instruments confirming
such subordination.

 

39.          
Counterparts. This Lease may be executed in counterparts, each of which shall be an original, but all of which
shall together constitute one document

 

    19

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Commercial Lease Agreement all as of the day and year first herein written.

 

	WITNESS/ATTEST:	 	LESSOR:
	 	 	100 ENTERPRISE DRIVE, LLC
	 	 	 	 
	 	/s/                               	 	By:	/s/                                    (SEAL)
	 	 	                                                           ,
	 	 	Authorized Member
	 	 	 
	WITNESS/ATTEST:	 	LESSEE:
	 	 	MARYMED, LLC
	 	 	 	 
	                      	 /s/                               	 	By:	/s/ Kyle Kingsley
	 	 	 	Kyle Kingsley, Authorized Member

 

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EXHIBIT A

 

LANDLORD WORK

 

INCLUDED:

 

General: A
complete ready to move into office/warehouse space (+/- 22,500 SF) existing pre-engineered metal building. Specifically architectural,
engineering, permits, fees, builders risk insurance, associated construction approvals, water/sewer impact, tap & usage fees
(up to 20,000 gallons per day), construction mobilization, coordination/management and general conditions.

 

Site Work:
Site work/landscaping to remain as existing. Installation of exterior concrete pads as needed for new mechanical equipment.
New site access entrance and security fencing modifications/additions excluded from landlord base build out scope.

 

Building Envelope:
Water tight roof and structure, complete roof repairs and seal new roof penetrations as needed; secure exterior entrances and exits,
existing exterior doors/windows to remain.

 

Interior Build
Out: Fire separation and egress requirements as required per code. Fully functional ADA bathroom facilities as required
per code, existing bathroom fixtures, accessories and partitions to remain. New interior walls to be constructed per the provided
Exhibit ‘A’ proposed concept floor plan. All new partitions to be famed using non-combustible steel studs to 12’
height, 5/8” drywall hung and finished on both sides to be painted white Semi-Gloss throughout. All new interior doors/frames
to be hollow metal type with panic bars and automatic closers typical, existing overhead door for Shipping area to have a new automatic
opener, existing aluminum storefront main entrance door and windows to remain, new storefront door for secure Waiting/air lock
included. Floor prep as needed and new floor coverings as per provided Finish Schedule, Exhibit ‘C’. To include: VCT
(Armstrong Blue/Gray Standard Excelon) in Trimming/Packaging and Extraction/Lab rooms only; Floor Covering and Cove Base allowance
of $10,000 included in base lease rate for other areas of building (Locker Rooms & Existing Office Space); All Warehouse/Manufacturing
areas to have existing concrete floors prepped and sealed. Existing acoustical ceiling system to remain in Existing Office Space
and Locker Rooms — damaged tiles replaced as needed; New standard aluminum Acoustical Ceiling grid with 2x2 flat lay in tiles
installed in new rooms per provided Finish Schedule, Exhibit ‘C’ — Acousitcal Ceilings installed in all Grow,
Mother, Drying, Trimming/Packaging, and Extraction/Lab Rooms. All Corridors, Head House, Storage and Mechanicals Rooms to be open
to underside of roof structure. FRP and wipeable ceilings tiles excluded from Landlord base build out scope.

 

Sprinklers:
Existing fire suppression system to be modified to accomodate the new floor plan as needed to provide adequate coverage throughout
the building.

 

Plumbing: 
existing building water/sewer service and fixtures to remain, repair existing service and fixtures as needed to ensure all plumbing
fixtures function properly. Supply and install (1) hand sink and (1) eyewash station in the extraction/lab area. Supply and install
up to (5) hose bib water supplies and up to (10) floor drains in grow areas.

 

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HVAC: Fully
functional climate controlled systems throughout entire building assuming a typical office type use throughout the building (Two
(2) 25-Ton package units included to condition warehouse space). Existing HVAC equipment in existing Office Space to remain, Installation
of complete new HVAC systems in the remainder of building, all ductwork, grilles, low voltage wiring and support welding as needed
for fully functional HVAC systems included in landlord base build out scope. Two exhaust fans in the lab and processing areas.

 

Electrical: 
Existing electrical service is 1200 AMP MDP 3 phase 480/277 volt to remain — as deemed sufficient for new build out and proposed
building use. Complete all rough-in wiring and devices as needed to accommodate new floor plan per Exhibit ‘A.’ New
rooms with Acoustical Ceilings to receive 2x4’ lay in lights, All areas with exposed ceilings to receive new 8’ stip
lights, convenience receptacles installed throughout, existing Office Space lighting and devices to remain. New electrical package
to specifically include the following: (258) 2x4 lay-in lights, (28) 8’ strip 4/T8 lamps, (6) exit lights, (10) emergency
lights, breakers for all equipment & lighting, high voltage wiring for HVAC equipment, GFCI convenience receptacles in new
walls, EMT coudits in exposed areas, (2) 75 KVA transformers, (1) 225 AMP panelboard (277/480V), (1) 225 AMP panelboard (120/208V),
Breakers in MDP to feed panelboards, Breakers for all equipment and lighting; all included in landlord base build out scope.

 

EXCLUDED:

 

Anything not specifically
referenced above. Including but not limited to: all ‘Tenant upgraded build out items,’ including: furniture, fixtures
and equipment, Greenhouse/Breezeway and all associated engineering, approvals and construction components, dehumidifiers, extractors,
Cot tank/pump, fertilizer tanks, specialty/decorative/grow lighting, data/telephone, cabinets & countertops, crown molding,
chair rail, appliances, vault, sound/building insulation, fire/security alarm systems of any kind, imposed HVAC loads, HVAC testing
 & balancing, fresh air intake fans, backup generator, security fence modifications/additions, FRP & wipeable ceiling tiles.

 

    22

     

    

 

EXHIBIT B

 

TENANT UPGRADES

 

HVAC: Supply
 & Install the following HVAC equipment & components:

 

(38) ductless 3-Ton Daikin
units

 

(4) ductless 2-Ton units

 

(12) Fantect exhast fans
with open end duct work (no grilles)

 

(14) Hi-E Dry 195 commercial
dehumidifiers

 

(1) 12.5-Ton heat pump
packaged units with duct work (serving corridors, locker rooms, storage room and 2nd floor office mezzanine).

 

(1) 4.5-Ton heat pump
split system with duct work (serving extraction/lab room)

 

*Note: HVAC testing
 & balancing excluded

 

Plumbing:
Supply & Install the following plumbing components:

 

(7) water supplies (hose
bibs) included in: (9) grow rooms, mother room, drying room and trimming/packaging room

 

(13) floor sinks (drains)
included in: (9) grow rooms, mother room, drying room, trimming/packaging room, curing room, new mechanical room, extraction/lab
room.

 

*Notes: Floor drains
positioned so can pick up drainage needs for dehumidifiers and ductless HVAC units. Includes all necessary concrete removal and
replacement for floor drain installation.

 

Electrical:
Supply & Install the following electrical fixtures & components:

 

(19) 4x4 T5 8 Lamp New
Wave

 

(36) Sun Blaze T5 4’
strip

 

(251) Gavita Grow Lights

 

(9) EL2 Master lighting
controller (including low voltage wiring)

 

(77) Pedistal Oscillating
fans

 

Finishes:
Supply & Install the following finish Upgrades:

 

FRP Paneling in (9) grow
rooms, mother room, and drying room.

 

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Wipeable 2x2 flat lay-in
ceiling tiles in (9) grow rooms, mother room, drying room, trimming & packaging room and extraction/lab room.

 

    24

     

    

 

EXHIBIT C

 

CONSTRUCTION
DRAWINGS

 

    25

     

    

 

 

 

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EXHIBIT D

 

TENANT
INSURANCE

 

General Liability:

 

Evanston Insurance Company

 

Policy Term: July 1,
2016-17

 

Policy Number: [***]

 

Limit: $3M Per Occurrence/$3M
Aggregate

 

Deductible: $5,000 Per
Occurrence

 

Excess Liability:

 

Kinsale Insurance Company

 

Policy Term: 7/1/2016-17

 

Policy Number: [***]

 

Limit: $2M Occ/$2M Agg

 

SIR: $0

 

Property:

 

Hallmark Specialty Insurance
Company

 

Policy Term: 3/11/2016
to 7/1/2017

 

Policy Number: [***]

 

Limit: $5,000,000 Per
Occurrence Includes Building, Business Personal Property and Business Income & Extra Expense

 

Deductible: $25,000 Per
Location

 

    33

     

    

 

EXHIBIT E

 

LANDLORD
INSURANCE

 

		·	General Liability $1MM per occurrence / $2,000,000 aggregate per policy year

 

		·	Excess Liability of $2MM per occurrence / $2MM aggregate

 

		·	Property Coverage to include but not limited to Building, Business Personal Property (if any) Business
Income & Extra Expense and Equipment Breakdown

 

    34

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