Form 8-K for ZONED PROPERTIES, INC.
Entry into a Material Definitive Agreement, Regulation FD Disclosure, Fina
(the “Tenant”) and Catalina Hills Botanical Care, Inc. (“Catalina Hills”)
pursuant to which the parties agreed to the material terms of a lease agreement to be entered into by the parties.
Pursuant to the terms of the Catalina Partners LOI, the parties will execute a lease agreement consistent with the terms of the Catalina Partners LOI no later than 90 days after execution of the Catalina Partners LOI. The lease agreement will provide for the lease of approximately 25,000 square feet of space (the “Premises”) by the Company to the Tenant. The Company agreed to grant the Tenant an option to lease an additional 15,000 square feet of adjacent space.
The parties agreed that the Company’s total projected budget for constructing the Tenant improvements and developing the Premises is an amount equal to or less than $2,500,000, with such additional amounts subject to approval by Tenant. The cost of the Tenant improvements will be paid by the Company.
Pursuant to the terms of the Catalina Partners LOI, the monthly rent for the Premises will be as follows:
Months 2-6 - $ 50,000 Months 7-12 - $ 56,250 Months 13-60 - $ 64,583.33 Months 61-120 - $ 65,625.00 Months 121-180 - $ 83,333.33
Certain individuals agreed to personally guarantee the lease agreement.
The foregoing description of the Catalina Partners LOI is not a complete description of all of the parties’ rights and obligations under the Catalina Partners LOI and is qualified in its entirety by reference to the Catalina Partners LOI, a copy of which is filed as Exhibit 10.1 to this current report on Form 8-K and incorporated herein by reference.
Exhibit No. Description
10.1 Binding Letter of Intent dated as of March 15, 2016 between Zoned Properties, Inc., Catalina Partners III LLC and Catalina Hills Botanical Care, Inc.
99.1 Press release of Zoned Properties, Inc. dated March 17, 2016.