FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
Exhibit 10.2
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “Amendment”) is entered into effective as of the 1st day of November, 2020, by and between IIP-PA 4 LLC, a Delaware limited liability company (“Landlord”), PHARMACANN PENN PLANT LLC, a Pennsylvania limited liability company (“Tenant”), and IIP Operating Partnership, LP, a Delaware limited partnership (“Parent Company”).
RECITALS
A. WHEREAS, Landlord, Tenant and Parent Company are parties to that certain Development Agreement dated August 9, 2019 (the “Existing Development Agreement”), providing for Tenant’s construction and development of certain Improvements on the Land and for Landlord’s payment or reimbursement to Tenant for the costs of completing the Improvements up to the Construction Contribution Amount, subject to and in accordance with the terms of the Existing Development Agreement and the Lease, for the property located at Lot No. 4 in Xxxxx Technology Xxxx, Xxxxx Township, Pennsylvania;
B. WHEREAS, concurrently with the execution of this Amendment, Tenant and Landlord shall execute an amendment to the Lease; and
C. WHEREAS, Landlord, Tenant and Parent Company desire to modify and amend the Existing Development Agreement only in the respects and on the conditions hereinafter stated.
AGREEMENT
NOW, THEREFORE, Landlord, Tenant and Parent Company, 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 Development Agreement unless otherwise defined herein. The Existing Development Agreement, as amended by this Amendment, is referred to collectively herein as the “Development Agreement.” From and after the date hereof, the term “Agreement,” as used in the Existing Development Agreement, and the term “Development Agreement,” as used in the Lease, shall mean the Existing Development Agreement, as amended by this Amendment.
2. Increased Construction Contribution Amount. The Parties have agreed to increase the Construction Contribution Amount by Two Million Dollars ($2,000,000.00). Accordingly, the following defined terms set forth in Section 1 of the Existing Development Agreement are hereby amended:
The definition of the “Construction Contribution Amount” is hereby amended and restated in its entirety as follows:
“Construction Contribution Amount” shall mean an amount not to exceed Twenty-Seven Million Fifty-Eight Thousand Dollars ($27,058,000.00).
In addition, the definition of the “Budgeted Development Costs” is hereby amended and restated in its entirety as follows:
“Budgeted Development Costs” shall mean all Development Costs which are authorized pursuant to the Development Plan and Budget, which shall include, without limitation, (a) a fee to Landlord equal to Twenty-Six Thousand Nine Hundred Ninety-Five Dollars ($26,995.00) to cover Landlord's overhead and expenses for plan review, engineering review, coordination, scheduling and supervision of the Development and (b) reimbursement for Landlord's third-party costs actually incurred in connection with the Development, including
Landlord's engagement of a construction consultant to oversee the Development, provided that any such costs shall be reasonable and shall be reasonably consistent with market rates paid for similar services.
3. Budget/Development Plan. Any changes to the current Development Plan and Budget as a result of the increase to the Construction Contribution Amount shall be prepared and submitted by Tenant to Landlord pursuant to Section 5.2 of the Existing Development Agreement.
4. No Default. Each of Tenant and Landlord represents, warrants and covenants that, to the best of its knowledge, Landlord and Tenant are not in default of any of their respective obligations under the Existing Development Agreement 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.
5. Effect of Amendment. Except as modified by this Amendment, the Existing Development Agreement 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 Development Agreement, the terms herein contained shall supersede and control the obligations and liabilities of the parties.
6. 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 Development Agreement restricting assignment or subletting.
7. 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.
8. 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.
9. 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, Tenant and Parent Company have executed this Amendment as of the date and year first above written.
LANDLORD: | | |
| | |
IIP-PA 4 LLC, | | |
a Delaware limited liability company | | |
| | |
By: | /s/ Xxxxx Xxxxx | |
Name: | Xxxxx Xxxxx | |
Title: | Vice President, General Counsel and Secretary | |
| | |
TENANT: | | |
| | |
PHARMACANN PENN PLANT LLC, | | |
a Pennsylvania limited liability company | | |
| | |
By: | /s/ Xxxxx Xxxxx | |
Name: | Xxxxx Xxxxx | |
Title: | CEO | |
| | |
PARENT COMPANY: | | |
| | |
IIP OPERATING PARTNERSHIP, LP, | | |
a Delaware limited partnership | | |
| | |
By: | /s/ Xxxxx Xxxxx | |
Name: | Xxxxx Xxxxx | |
Title: | Vice President, General Counsel and Secretary | |
