$ZDPY Form 8-K

Pursuant to the terms of the LOI, the parties will execute a lease agreement consistent with the terms of the LOI no later than 90 days after effective date of the LOI, which is the date that is three business days after the mutual execution and delivery of the LOI by Zoned Colorado and the Tenant. The lease agreement will provide for the lease of approximately 15,000 square feet of space (the “Premises”) by Zoned Colorado to the Tenant.

The parties agreed that Zoned Colorado’s total projected budget for constructing the Tenant improvements and developing the Premises is an amount equal to or less than $1,250,000, with such additional amounts subject to approval by Tenant. The cost of the Tenant improvements will be paid by Zoned Colorado.

Pursuant to the terms of the LOI, the monthly rent for the Premises will be as follows:

  Months 1-6       -   $ 32,500
  Months 7-12      -   $ 37,500
  Months 13-60     -   $ 43,125
  Months 61-120    -   $ 45,625
  Months 121-180   -   $ 50,000

The foregoing description of the LOI is not a complete description of all of the parties’ rights and obligations under the LOI and is qualified in its entirety by reference to the 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 entered into on May 17, 2016 between Zoned Colorado Properties, LLC, American Green, Inc. and Herbal Elements, LLC.
99.1 Press release of Zoned Properties, Inc. dated May 19, 2016.