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HomeMy WebLinkAbout9/3/2014 - STAFF REPORTS - 7 • Jade Organics Corporation Business Plan Board of Directors Edward J. Dietrich 2034 Chia Road • Palm Springs, Cal. 92262 (760) 219-8000 Eduardo Rivera 752 N. Felices Circle E.#M-205 Palm Springs, Cal. 92262 (808) 276-4703 (808) 873-6555 hideawaymaui@gmail.com 1 I. Table of Contents Page 1. Table of Contents 2 Il. Executive Summary 3-4 III. General Company Description 5-7 IV. Products and Services 8-9 V. Location 10 VI. Marketing Plan 11-13 VII. Operational Plan 14-15 Vlll. Management and Organization 16-18 IX. Personal Financial Statement 19 a.Biography,State J.D.and Utility Bill proof of residency X. Startup Projections 20 a.Three Year Projections,Start Up,Grow Financial... XI. Membership Application 21 &Board of Directors Medical Recommendations XII. Entire Business Checklist(Dispensary&Grow) 22-33 XIl1. Membership Agreement 34-37 Site Plan with Cameras,Lights, Building Sq.Ft.... 38 . Notarized Landlords Statement&Lease Agreement 39 Articles of Incorporation &Minutes of Board of Directors State of Calif. "Corporate Name"Document 40 Seller's Permit 41 Notarized Complete Application for MCCC 42-55 Including Declaration of Truth, City Manager Authorization Release and Compliance of Provisions Operations CovenantlIndemnify the City 56 Appendix 1: Privacy Waiver,Membership Application,Voluntary Cultivation Program,Corporate Membership Agreement&Screening Contract, Simple Appendix:Disposal,Health,Safety,Training,Compliance, OSHA regulations,Above Standards for Cleanliness Program. Appendix 2: All proper bookkeeping programs will be implemented,and regulated by our CPA firm.Hard Copy File System will always be available,Computer System will be used,and backed up daily,regulation True Inventories,Sales,and Par Levels.Policies&Procedures,Inventory Control,Par Sheets are drawn up and will be implemented as soon as we start the business. 2 • II. Executive Summary A hallmark of Palm Springs is its ability to be at the beginning of changes that improve the quality of life for its residents,both young and old. Our city is a center for physical and spiritual healing and has been for decades. We propose Jade Organics Corporation to continue that with a medical marijuana dispensary catering to aging residents who need a safe place to get prescribed medication and other citizens who need medical marijuana to ease their pain from physical ailments such as injuries, arthritis, back problems, terminal illnesses and to promote wellness in other areas conventional medications fail. Gone are the days of marijuana procurement through illegal dealers and smugglers where getting your medical needs met is dangerous and expensive. We aim to meet the needs of our seniors, in particular those who need assistance close to home in a safe,well-lit area. Remember,baby boomers are retiring and our aging population is growing by leaps and bounds. This trend will continue for years, our proposed location is a brightly lit, storefront facility on a major street just a few blocks from the center of town. Alternative medicines play a large part in giving relief to people who would otherwise suffer. Palm Springs must close the gap to provide assistance to this group that's aging, frail and vulnerable, afraid to seek assistance in areas that are unsafe. just like the Desert Aids Project was created to fulfill the needs of a specific population,our group will do the same. Besides having the medical benefits and providing a safe, sanitary environment, our facility will provide a significant contribution to Palm Springs tax 3 • revenues. We are proposing that the City of Palm Springs allocate the fourth Medical Marijuana Dispensary to us. We have plans for the facility's layout, policies and procedures, staffing requirements, and educational services available for your review. Note that no plants will be grown at the dispensary. If we do have one plant, it will be for one of our educational sessions. Let us continue the Palm Springs legacy of providing a healing environment for all her residents. We will comply p y with any and all requirements as listed in the City of Palm Springs Ordinance 1845: Regulations for the operating of Medical Marijuana Dispensaries. M r 4 III. General Company Description We will be entering into the Medical Marijuana Dispensing business within the City limits of Palm Springs,California.We will create an accessible sanitary dispensary to service the needs of our members and/or their primary caregivers with a quality, yet affordable product, in a safe and accessible Palm Springs location. Mission Statement: "GIVE" Getting Involved Vigorously Everyday We will provide a convenient,centrally located medicinal dispensary to all Palm Springs qualified patients by offering the highest strains of medical marijuana for their medicinal use,while being supportive, inclusive and creative in this revolutionary approach to healing,wellness and improvement of quality of life. Company Goals&Objectives: P Y 7 How Dreams Begin,and Grow O'DAM aspires to become a trendsetting,innovative,community minded organization that not only services its members with their medicinal needs,but will . seek to enhance learning as a vital part of our Collectives future and growth. Teachings/Meetings/Sharing/Learning By enhancing the knowledge,and the experience of others,and sharing this knowledge and experience with members of our collective,we will work together to achieve better-informed solutions that are new to our medicinal industry.We will seek teachers/professors, doctors,and all other experienced individuals to speak at our planned meetings,so that we all,within our collective,are better informed about our medicinal choices. CookingJCreating/Sharing By creating a concept of cooking with our medicinal marijuana,we will be able to better treat certain members who prefer to ingest their respective medication, rather than smoke it Creating classes that teach a variety of ways to include medication to your everyday meals,while adding creativity,can be a fantastic method to service our members.Teaching our membership this particular concept of treatment may become more affordable,more diversified and definitely better tasting. Professional Chefs,like myself,will teach these concepts.Chefs that can also assist in creating menu ideas that may targeta cause of the ailments,including recipes for Gluten-Free, lactose Intolerance...and more allergic patients that are springing up everyday. • 5 Participation We will aspire to get everyone involved,within our collective.We will share knowledge about the products we will be growing for their medicinal needs,in hope that everyone gets involved. By experiencing the actual start growth of the medicines that are improving our quality of life, is a healing in it self. Seeing the plant through a full circle of life,allows us to put certain things in prospective. Planned Activities for Members Year-round planning within our membership will allow us to create activities that may involve other family members,and allow us to share who we are,and what we aspire to be..."A Family" Christmas is a time of giving,gathering of family, sharing,spending time together with those we love and cherish.We aspire to create activities for these special occasions. (Christmas tree donations to members&their families,Christmas Gifts to member's children,hosting a Christmas Dinner event...) Other Holidays will also be considered throughout the year.Valentine's Day,Easter, Mother's Day, Father's Day,Veteran's Day... Picnics,Pancake Breakfast outings, Luncheons, Dinners, surprise birthday recognitions...are just a few ways that this program might be able to develop. Sometimes 'Giying"is a great medicine... We might think to consider giving to the community by creating a"Soup Kitchen" concept to feed the needy,the homeless and other community residents that just might need a free hot meal.We don't know what is currently needed in our • community,but we will seek to be better informed,and in so doing,we will become engaged with these needs.By getting our membership involved in these activities, we will learn to feel better about ourselves and better appreciate our individual situations,while addressing the hardships of others less fortunate. What is important to us as we enter into this new stage in our lives is: 1. We enter this business with a clear mind,good intentions,minimal expectations,and willingness to serve.We are willing to adapt to what may become a wonderful and fulfilling life. 2. We have reasonable and attainable goals.We see a need and have the ability to fill that need. 3. We see the business side potential of this venture, because of our aging population,the high pricing of traditional medications prescribes by doctors and the uncertainty of the medications being prescribed by these doctors.The acceptance of alternative medicine throughout the country, and the support from people of influence that are now spearheading reform in support of this type of alternative medicine,leads us to believe that we are in a business that is in it's infancy stage of development,and should become very successful, if done correctly,and for the right reason. i 6 • We bring our diversified lives and business experiences to solidify and strengthen this new company. 1. As a financial advisor, I will be able to oversee the financials, and forecast trends that may impact our industry. 2. As a restaurateur,we are able to service the needs of our membership, while catering to their special needs. 3. As a Barber/Stylist,we are knowledgeable in the sanitary expectations that are demanded within the State of California,and will implement a plan to achieve even higher cleanliness expectations. 4. As aged businessmen, we bring experience to the table. Many types of experiences, some personal, others gained by the experience of others,but ... In every phase of our professional lives, people, friends and family have always found the ability to trust who we are, and what we do. They have been able to trust us with their money; they have been able to trust us with the food and beverages we provided for their consumption. They even trusted us when we put scissors to their hair during a haircut,and razors to their cheeks during a shave. People Trust Us. 7 IV. Products and Services As a progressive Service to our project, O'DAM is committed to producing educational materials for patients and their families, medical staff and our Palm Springs citizenry. Due to the stigma that continues to follow the use of medical marijuana, it is imperative that we, at O'DAM, maintain a vigilant effort in staying abreast of current events as it pertains to this subject. To better accomplish this effort, O'DAM will seek to join any, and all, organizations spearheading the support of medicinal marijuana, it's educational developments and ideas.And if there are no such local entities leading in this direction, O'DAM pledges to create such entities so that we can better educate those we have made a commitment to serve. As a starting point towards this effort, O'DAM will implement these following initiatives 1. Patient Counseling - medical and patient specialists will be sought, contracted and brought in to aid patients, should counseling be needed. 2. Patient Education - we will do it in person, by digital and/or through Internet access to gain educational material that can be used. 3. Medical Staff Education - materials for medical staff, highlighting product familiarization and application to patient conditions will be made available. 4. Employee Education - team member training, product familiarization, process and certification will be done frequently. S. Digital Video Training Material - automated Internet video content, data and rich content material will be made available for self-paced study. Cannabidiol is one of at least 60 active cannabinoids identified in cannabis,which are the basis for medical and scientific use of cannabis. Indica medicinal strains are sedatives/relaxants and are effective for treating the symptoms of medical conditions such as anxiety, chronic pain, insomnia, muscle spasms and tremors. Indica has a higher level of cannabinoids than Sativa, which results in a sedated body-type high. Because Indica strains may cause feelings of sleepiness and heaviness, many patients prefer to medicate with this type of cannabis at night,or when they will not be driving a motor vehicle. Sativa medicinal strains are more of a stimulant, and are effective in appetite stimulation, relieving depression, migraines, chronic pain and nausea. Sativa has a higher level of THC than Indica,which results in a psychoactive and energetic mind-_ high. Because sativa medicinal strains may cause feelings of alertness and optimism, many patients prefer to medicate with this type of cannabis during the day. Hybrids medicinal strains and crossbreeds of Indica and Sativa produce varieties that carry some characteristics of each parent. For example, adding Sativa to Indica medicinal strains adds mental clarity and decreases sedation effects. And adding • Indica to Sativa strains can decrease or even eliminate the sativa tendency to stimulate anxiety 8 Tetrahydrocannabinol UHQ is the primary compound responsible for the psychoactive effects of cannabis. The compound is a mild analgesic, and cellular research has shown the compound has antioxidant activity. Cannabidiol(CBD is a major constituent of medical cannabis. CBD represents up to 40% of the extracts of the medical cannabis plant Cannabidiol has been shown to relieve convulsions, inflammation, anxiety, cough, congestion, nausea,and inhibit cancer cell growth. Recent studies have shown Cannabidiol to be as effective as atypical antipsychotics in treating schizophrenia. Because Cannabidiol relieves the aforementioned symptoms, cannabis medicinal strains with a high amount of CBD may benefit people with Multiple Sclerosis (MS), Anxiety attacks and Tourette's syndrome. Edibles and the Ingredients 1. Chocolate Chip Cookie — Butter, White Sugar, Brown Sugar, Vanilla, Eggs, Flour, Salt, Baking Soda &lots of Chocolate Chips 2. Banana Bread Slice — Raw sugar, Olive Oil, Eggs, Bananas, Raisins, Chopped Nuts, Flour, Baking Soda and Salt 3. Pralines — Granulated Sugar, Brown Sugar, Evaporated Milk, Butter, Vanilla Extract and Pecans 4. Buckeyes ^- Smucker's@ Creamy Natural Peanut Butter, Butter, Vanilla Extract, Salt, Chocolate Chips, Crisco Shortening and Powdered Sugar S. Prune Mui — Pitted Prunes, Pitted Apricots, Brown Sugar, Ling Hing Mui Powder, Hawaiian Sea Salt, Chinese 5 Spice, Star of Anise, Ginger, Lemon Juice and Lemon Peel 6. Coconut Crisp — Coconut, Corn Syrup, Butter, Salt, Sugar, Vanilla Extract and Water 7. Almond Torte — Almonds, Almond Extract, Vanilla Extract, Butter, Sugar, Flour& Salt 8. Lemon Bar — Flour, Confectioners Sugar, Butter, Sugar, Eggs, Lemon Juice, Lemon Zest Other recipes will be created to fill the popular demand of edibles currently being sold. Edibles prepared, who knows where? Blueberry Bliss Bar, Brownies, Watermelon Tarts, Tootsie Rolls, Flavored Sour Candy, Cheeba Chews and more. We seek to create and cook our own edibles because we need to be certain that everything being sold under our roof, with our BRAND, is a quality freshly prepared food product that we can stand behind. A • product where we know the ingredients, and know its freshness. It's still medicine. 9 • V. Location We have opted for a North Palm Springs location for a variety of reasons. 1. Strategically located to service the medicinal needs of the North Palm Springs citizenry patients currently not being serviced. 2. Conveniently opened in a main Palm Springs artery, in plain view, so that our elderly patients can have a sense of security and confidence when driving up to fill their medicinal needs. No elderly or sickly patient should ever have to put his, or her,well being in jeopardy,just because they need their medicine. 3. Public transportation accessibility. Not only will we be able to service everyone without transportation,but also will we be able to service those that are physically challenged. The SunLine Transit Agency is wheelchair and bicycle accessible, and maintains a schedule that is compatible with the hours of operation set by Palm Springs, for medicinal marijuana legal dispensaries.SunLine Transit Agency are directly across the street from our location, and 'Line 111" heads Eastbound and Westbound from our location, and is the line that best covers the entire Palm Springs community. 4. The fourth reason we have selected this space, is because of the design of the building (It has the old Palm Springs look and feel), the affordability of the lease agreement, the inclusion of amenities and the potential for expansion,when needed. Because it is important for us to bring affordable medicinal options to the Palm Springs Citizenry,we have secured a secondary site. Unfortunately, this site is right in line with the other dispensaries, in that it is located in an industrial area. An area we were hoping our patients would not have to deal with. This site is located on Williams Road,in Palm Springs. It is relatively new, spacious and has a built out commercial kitchen. I was going to acquire this site as a grow property. I also want this site do my cooking of edibles. I am still of the idea of servicing the North End of Palm Springs, because I feel it is the right thing to do. 10 • VI. Marketing Plan To attain our main objective in marketing, we will create "BRAND" recognition. We will focus on creating a "BRAND" that exemplifies Convenience, Location, Safety, Quality, Cleanliness, Diversity and Affordability. This Branding/Advertisement program will be done legally as permitted by the Palm Springs Governing body and the State of California. On-line Social Media Facebook By creating a Facebook page that exemplifies who we are, what we are attempting to do, and continually blogging with information and creative ideas, we can easily become visible within the coconut wireless system called the Internet People share opportunities and information with friends, family and in our case, other quality- minded patients seeking diversified methods of treatment YouTube By creating YouTube videos of cooking methods, extracting oils or just sharing ideas as to how to better grow a particular strain of medicinal marijuana, can also help to influence others to join us. Weedmans Weedmaps is an Internet community where medical marijuana patients connect with other patients in their geographic region,to freely discuss and review local cannabis co-operatives,dispensaries,medical doctors and other services. • Dispensaries, Patients and Doctors can list their services on Weedmaps,for free. Twitter Create a following on twitter by offering good input,Interact with others in our field. Linkedin Although Linkedin is primarily used as a business employment system, many of us professionals interact with other professionals using this format. By creating an interesting thread on Linkedin,we might be able to attain a doctor/scientist in need of employment and willing to venture into our field of business. These individuals, professionals in their respective fields, can easily become involved in creating something we can all benefit from. And if we fail to open these doors to some of these individuals,we may be depriving ourselves of the knowledge and opportunity that can take us to the next level. Remember, we are all new to this field, and we don't know who will be creating the next best thing. Flickr Sharing photos of quality strains available. Creating a visual menu of eatables created exclusively by our chef can also help to create a BUZZ Local Print We would love to create a local print campaign within the Coachella Valley, but will not do anything that the City of Palm Springs frowns upon. But if it were legal and possible, I would create a Contest, Discounts and Giveaway concept for those less fortunate that still need medicinal alternatives, but could not afford to pay the posted prices. • 11 . Email Program We will create a daily email update on inventory injections, Daily Specials, Volume purchases and an invitation to have us fill your medicinal needs. Using this program, we will also create a "Frequent Patient Program". This allows our patients a financial reward to be used for product purchases (a Discount). Can also be called "O'DAM Loyalty Program". Pinterest 1. Pinterest is a visual discovery tool that people use to collect ideas for their different projects and interests. 2. People create and share collections (called "boards') of visual bookmarks (called "Pins") that they use to do things like plan trips and projects, organize events or save articles and recipes. Whatsapp WhatsApp is a messaging application that takes advantage of data plan on smartphones to provide a practically free alternative to texting.The service allows users swap text,pictures and audio clips,as well as set up group chat Competitive Disadvantage Our competitive disadvantage is in getting this fourth medicinal dispensary license. • Having canvassed the entire Palm Springs community for space to build this new venture,I was able to find many buildings that were suitable. Of course,none were available for lease,because current lessors of these properties are still using the property to do this business,illegally. I am certain that many of the other groups seeking this fourth license,are these people.And if they are rewarded for breaking the law,what will that say to all the other businesses in our community that have always played by the rules,and followed the law. I welcome the competition,because when we all are playing in a level field,the ultimate benefactor in competitive business world is the consumer. In this case the consumer is the patient Prices become more affordable,product becomes better quality,service is improved and even the atmosphere of each business is upgraded to better attract and retain their membership base. I see no weakness that puts our team in a disadvantage.As I am attaining knowledge of the products we will be involved with,and creating recipes for the specialty edibles I will be preparing,I see us as a motivated group, creating something for the right reasons.A vibrant breath of fresh air,sort of speak.The new kid in the block trying to set the bar so high,others will have to catch up,to stay competitive.Who wins when we all become more competitive and creative? I say we all win.But certainly the patients',who need the medication,WIN. • 12 • Budgets Our budgets will become the next main focus to this business plan. Accurate budget allocations need to be addressed once we acquire the license. Budgets for: 1. Contractual Obligations for the property 2. Built out of dispensary,as needed,on this property 3. Security for the interior and exterior of the property, including a surveillance camera system,an Office Safe,Secured Storage for Inventory 4. Contracts for the Alarm Company 5. Furnishings needed for displays, lobby, offices...including an Audio/Visual System that can serve as a visual security system within the site and can also be used as a teaching/learning tool for everyone involved 6. CPA. Contract a reputable accounting company to maintain the books, as they will be made available upon request by the City of Palm Springs 7. Advertising, Promotions,Print Material,Office Supplies... 8. Supplies: Packaging, labeling, scales, Computer System (POS), Filing Cabinets, Lights, Grow Tables, Air-conditioners, Fans (Trade Needs for Growth) Performance Analysis We will do performance analysis early and often when we first get started. We will maintain supply records, sales records, run on ongoing inventory format to keep • track of the inventory/versus sales.This will become a closing Daily Procedure. We will do Actual Monthly Sales, and view them against our projected sales, and make adjustments as needed. Inventory Adjustments,Scheduling Adjustments. Do a complete self-evaluation of things that worked, what didn't and how to improve and continue to grow. 13 VII. Operational Plan Our daily operations will begin with a clear,well-defined description of duties,responsibilities and assigned tasks that need to be accomplished before,during and at the end of each person's assigned shift 1. A Bud-tender is the face of the Medical Marijuana Industry,receiving more"One On One"face time with Patients than a recommending physician.Bud-tenders assist Medical Marijuana Patients to find the best Cannabinoid Therapy for their ailments. Next to Medical Marijuana Growers,Bud-tenders have the most working knowledge of plant genetics as they have to know the Cannabinoid structure of the medicine and how it best serves the patient to be able to exceed at their job.Continual updates on new strains keeps these ambassadors of our industry knowledgeable and sharp. 2. A Front Desk Receptionist in the Medical Marijuana Industry is the front line to the public.In addition to fielding incoming calls and relaying messages,the a Receptionist in the Cannabis Industry must be prepared for anything from law enforcement to maintaining the business integrity in the public eye.The Receptionist provides information to callers and patients about the business outside of normal inquiries regarding patient processing and must maintain their professionalism and pleasant demeanor at all times 3. Our Inventory Clerk is in charge of keeping track of all of the products moving in and out of the Dispensary.Our Inventory Clerk will work directly with Management Buyers,taking the product from weigh in at time of purchase,to shelf ready for distribution.When inventory is running low,the Inventory Clerk lets our Management Buyer know,so the business has a consistent supply available to meet the needs of their Patient client base.Our Inventory Clerk breaks down the • wholesale product into individual retail sizes,and applies procedural codes for tracking inventory. 4. Client Intake and Data Entry Clerk process paperwork for the dispensary's new Medical Marijuana Patient Our Client Intake Clerk will conduct initial interviews with Patients,create physical and/or electronic files for tracking Patient relationship and verify the patient's Medical Marijuana Recommendation is valid and current with the Medical office that made the recommendation.Working with the General Operations Manager as part of the businesses front-end management team,Client Intake and Data Entry Clerks ensure all new patients are processed into the business accurately and patients are educated on dispensary/patient relationship policies and procedures.Tracking and renewal tracking and verification may also fall under the duties of a Dispensary's Client Intake/Clerk,as well as individual patient file management 5. Dispensary General Operations Manager will interface with our collective's membership, staff,owners,suppliers,landlord,law enforcement,compliance officers,inventory and quality to control clerks to ensure the transactional fluidity of the Dispensary as a whole. It is the responsibility of the Operations Manager to ensure the entire office is working within compliance of the City of Palm Springs set policies and State of California guidance laws.Working with owners and the accounting department of the business,the Operations Manager establishes,maintains and enforces office policy and procedure so product is tracked from plant to end user market and all transactions are accurately documented. • 14 • 6. The Dispensary will be secured using a variety of systems.These security measures include:physical,photographic,administrative and accounting.First,the physical. Access to the facility will require passing through a door leading into the facility.This entrance will be opened at the beginning of every new day,and secured closed,once the staff scheduled is on property.All bags and carry outs will be subject to inspection by the acting manager.Second,the Photographic System will be a digital surveillance outside the facili .It will incorporate the use of infra system that is install ed inside and outs tY infrared security cameras with digital video recorders.This type of system is advanced and allows for the monitoring of everyone;employees,patients and undesirables with a recording of all actions that are taking place in the dispensary before,during and after business hours.Also,because this system is recordable,it will allow our Alarm/Security company access to the records on file.These same records have to be made available to the City Manager upon request Third,an administrative surveillance system in secured "Authorized Personnel Only"rooms will allow for better control and a better in-house security plan.This will allow us to better secure the product back up,product overnight storage when closing. it will also allow for a back of the house safe room.Fourth, Accounting.All products will be scaled when they first arrive on site,and a system will be put in place to deduct the amounts dispensed from the grand total.This equates to a checks and balance system that everyone on site will be responsible to follow. 7. Food Preparation for O'DAM will begin with a Registered Certified Commercial Kitchen, licensed by a city to be named at a later date,and the State of California.This will instill that that the kitchen is processing food products safely and consistently.All recipes will be formulated on a weight basis,to ensure batch-to-batch consistency,this is particularly important when considering volume of medical marijuana being added to recipe.laboratory services will be secured to provide gas chromatography to determine potency of different strains,in every recipe.This will allow O'DAM the ability to • determine the amounts,by weight,in order to sufficiently meet the needs of our collective.labeling will be critical to regulate activity of edible product Each product label will contain warnings that state"This Is Medicine".It will also read,"Keep Away From Children".In addition,we will; a.Name the Product,b.Weigh the product,C.List ingredients,d.Date the product and include suggestions as to what dosages are recommended when using edible products. 8. Quality Control:Quality Control and Safety include maintaining the integrity of the medical marijuana plants in order to provide the highest quality of medicinal use for the patients.Plants will be harvested in the Cultivation Facility which will be well sanitized and maintained by employees who will be required to follow specific personal hygiene protocols that include wearing:hair net,protective gloves and other equipment consistent with appropriate laboratory attire.Medical Marijuana plant health will be consistently monitored and evaluated.Specifically,plants will be analyzed for macronutrients,trace levels of pesticides,presence of pests and molds.Measures will be put in place t o address any situation,and steps will be taken to eliminate any contaminants.As such,we will establish a Plant Registry,which will include a unique common name for each strain of medicinal marijuana we cultivate.Additionally,we will provide a variety of strains of medical marijuana plants.With each product purchased, the patient will be able to ask information with regards to the medicinal marijuana being prescribed.The plants common name,it's batch number,the date it was cultivated,the results of any tests relative to the concentration of the active ingredients,such as THC, CBD and CBN • 15 • V. Management and Organization Management Summary 1. Our Management Team comprises of people with compassion, years of business experience, and the willingness to share this experience in creating something meaningful within our community. Our philosophy is simple, "The patient comes first". We will start with just two directors,and one well versed individual that has served in our military for over 25 years.We will grow to a Five"Board of Directors'concept,soon after the license is issued on our behalf. 2. Having a seasoned financial consultant on board will guide our grouping through a conservative structuring of the business. Initial expenses can become the downfall of any new business,but with proper financial guidance and a structured plan of attack,we will be successful. Having people on board that have many years of "Hands On Experience",willing to do much of the work themselves,the future looks bright for our collective and it's membership. 3. Having a member on the Board that has specialized in Service throughout his entire professional career will solidify what we consider the core philosophy of this endeavor. "The patient comes first". These individuals we are here to serve, are members of our community that have themselves, served. It is our time to serve those, which have served before us!It's Time! 4. Having experience in opening new businesses throughout our respective lives,we bring the attitude of"Positive Thinking",and"Failure Is Not An Option!"to this endeavor.Even during a tough economic period,WE DID NOT FAIL! Being on an island after the attacks of 9/11,with no tourism coming to support the Hawaiian Islands (where we own and operate a full service restaurant business), WE DID NOT FAIL! We were able to see things through,by having"Hands On"responsibilities on all duties.We worked! Edward J.Dietrich is a 28 year resident of Palm Springs. He has over 34 years experience in financial services,business management,hospital management,education,counseling and not-for-profit operations. Fourteen of those years have been in the field of health care: in counseling,management and administration. He has spent 22 years in financial services,planning and business consulting. 18 years were spent in pastoral and campus ministry. Many of these opportunities overlapped during my active career. Edward J.Dietrich has a Bachelor Degree in Philosophy,English and History from St Charles College, John Carroll University in Cleveland;a Masters in Divinity with an emphasis in pastoral counseling from St Mary Graduate School in Cleveland;with additional graduate work in Eastern Thought at John Carroll University. He has completed doctoral work in Psychology from the institute for Advanced Study of Human Sexual Behavior in San Francisco. He has served on the faculty of the University of New Mexico School of Medicine for five years and has done additional postgraduate work in medical ethics at St John University in Queens,New York He is currently a Financial Advisor and Registered Representative with MML Investors of Springfield,Massachusetts(Retired). Volunteer activities include: Desert AIDS Project, 10-year board member,Palm Springs Human Rights Commission,6-year member,Police Chiefs Advisory Board,3-year member,Palm Springs Economic Development Department Volunteer American Cancer Society,board member,fund raising committee, Sunrise/Vista Chino Neighborhood Coalition,Sagewood Homeowners Association,President for 17 years,Member of the Board of Trustees,Idyllwild Arts Foundation for 2 years. • 16 • Eduardo Hdez.Rivera was once a resident of the La Quinta community,working in La Quinta,Ranch Mirage and Palm Springs.After leaving the desert to pursue a career opportunity,he once again has returned to attain his newfound love,To Serve!During his early years in the desert he was fortunate to service a wonderful array of people.Some were very famous,some were world leaders,many were the wealth of the nation,but all were great people that influenced his life.These people of influence had an impact in his decision-making ability then,were influential when he made the decision to chase his dream,and their remembrance,is now fueling his new passion to return to the desert Life has taken him across the globe,and his experiences are many,because of his diversity in varied professions.He has been successful as a restaurateur,a musician,a master barber/stylist and an hotelier,and has been very fortunate to be contracted to work by many special entities. Entities,like Disneyland,the Mexican National Touristic Council and Antonio De Marco Productions, just to name a few. Mr.Antonio De Marco was a musical agent that opened doors in the Los Angeles area that led to many wonderful experiences.Mr.De Marco introduced our music to such people like President Ronald Reagan,Governor Pat Brown,Mayor Sam Yorty,Mayor Tom Bradley,Governor Jerry Brown, Mr.John Wayne and Mr.Ricardo Montalban,which we accompanied in a performance at the Hollywood Bowl,and many other influential people in the entertainment industry and politics.Mr. Antonio De Marco contracted us with Disneyland,where Mr.Walt Disney saw us perform,and immediately fell in love with the fact that we were a family of young Mexican entertainers.Mr.Disney then contracted us to open such venues as Wait Disney World in Florida,where we worked for many years.Mr.De Marco also introduced us to the hierarchy of Mexican Politics.We became the musical representatives to assist in the promotion of Mexico,through the Mexican National Tourist Council, which was the agency in charge of contracting tourism.This gave us world exposure in a very unique environment Mr.Antonio De Marco will always be remembered as the agent for Fernando Valenzuela.We'd hope to be his agency's shining star,but when the world saw Fernando,we became but a distant memory for the agency.Some would frown on that occurrence,but we thrived at the • opportunity. That was the time in my life when the Palm Springs community became my home.We were now able to settle down and grow within a community.We were contracted by the Delgado Family to work for their new desert jewel,"Las Casuelas Nuevas"in Rancho Mirage.That filled my musical needs of employment,but I still needed more.I purchased a home in the La Quinta Cove and sought work at the La Quinta Hotel.I also opened"La Quinta Hair&Nail Salon"in La Quinta,prior to becoming a city. We,as musicians,became high profile members of the desert community.The music introduced us to people like Mr.Frank Sinatra,who would call on us for everything.We even played for his very special day,the day he married Ms.Barbara.He would also call on us to play a couple of songs wherever he would be for dinner.It did not mater to us what we were doing when he called,we would always make the effort to fulfill his requests.Even when we were playing at Las Casuelas,we were always available to cater to Mr.Sinatra's needs.He was one of the deserts premier residents. Many other prominent residents demanded our musical services.The La Quinta Hotel was also a very unique working environment,since it allowed me to service this community with their food and beverage needs at the hotel.Servicing them at the hotel allowed me to earn their trust and support, And when I opened my hair salon,I became their barber/stylist Many great customers came through my doors at the barbershop.Many were the working residents of a new community,some were very powerful and wealthy individuals from the La Quinta Country Club,but there was one person in particular,that I will always remember,Mr.Frank Capra.The La Quinta Hotel named their dining facility is his honor,"The Frank Capra Room".I was fortunately to know him on a more personal level.I was his barber.I shaved him,I shampooed him,I cut his hair and I listened to the wonderful stories of his life.He spoke of the love he had for his wife,his adoration of his family and his passion for this desert community.Remembering his passion for life,his love of the desert,is the fuel that brings me back to this community. I have always been fortunate in business,and looking forward to become a factor in the Palm Springs community by becoming involved,especially in its Health and Human services. I'd like to be • remembered,as I am now remembering those that came before me.That is my new life's dream! 17 William Basey has over 25 years in service of The US Army Special Forces Branch. • He served with distinction in engineering,medical,and civil affair assignments. While in Iraq he directed the operations of the Civil Military Operations Center in the Northern Babil Province.During this challenging assignment he provided expert engineering advice and assisted in the development of numerous infrastructure related projects coordinated amongst members of the public and private sector of both the US and Iraq. During this time period his workload portfolio consisted of 150 plus projects.He assisted in establishing new processes to effectively manage this workload,which resulted in streamlining efforts to achieve project and overarching program objectives set forth by senior officials in both the US and Iraqi governments. Specialties:Class A CDL,Hazmat.Double and Triple,Tanker, ISO 9001:2008 Lead Auditor,ISO 14001:2004&BS OHSAS,10001:2007 Internal Auditor training, OSHA 30 hr.Construction Industry,CPR/AED/BLS Instructor,Construction Management.Contract Management,Engineering,HVAC,Accident Investigation,Electrical Safety 2012 NFPA,70E Arc Flash Training,Industrial Radiation Safety,HAZWOPER:Medical Surveillance Program,Hazard Communications:Chemical Safety,Lockout/Tagout:Authorized Employees Organizational Structure rv,�auaroa.l m.>.t�l wmcm�wQy A `M:-a I Management Team Our team comprises of people with years of management experience,both in the civilian business community and the military world,where discipline is a way life! By incorporating three very distinctive management styles,we offer the best of all worlds.We have the disciplinarian that will lead a team to battle with a very specific style of management You have the teacher,counselor,and compassionate individual that will listen to your ideas and make decisions of inclusion.And then there is Mr. Nice Guy!The guy that everybody loves,and are willing to do anything for. The diversity in styles and personalities is a plus for our desert community, • where diversity is a way of life. 18 • VI. Personal Financial Statement Edward J. Dietrich, President of Jade Organics Corporation, will be injecting $100,000.00 into this venture for an agreed percentage annual return to be determined later. Edward J. Dietrich has agreed to use his home as collateral for further funding, should the project need further funding. Eduardo Hdez. Rivera, CEO of Jade Organics Corporation, has agreed to inject matching funds of $100,000.00 towards this project Mr. Rivera will use his Hawaii Corporation to back the funding of this project for however long it takes to have it reach it's full potential. Complete disclosure, in any form required by the City of Palm Springs, will be made available, once we are granted the license we are requesting. My personal Blo will be enclosed, along with a copy of my California • State Driver's License and a Southern California Edison Utility Bill, showing proof of my residency of Palm Springs. 19 • Edward J. Dietrich Business & Financial Consultant 2034 Chia Rd. Palm Springs,CA 92262 760.219.8000 edwardjdietrich43@gmaiLcom PERSONAL BIOGRAPHY January 2014 Edward J. Dietrich is an 28 year resident of Palm Springs. He has 34 years of experience in financial services,business management, hospital management, education,counseling and not-for-profit operations. Fourteen of those years have been in the field of health care: in counseling,management and administration. He has spent 22 years in financial services,planning and business consulting. 18 years were spent in pastoral and campus ministry. Many of these opportunities overlapped during my active career. He has a Bachelor Degree in Philosophy,English and History from St. Charles College,John Carroll University in Cleveland; a Masters in Divinity with an emphasis in pastoral counseling from St. Mary Graduate School in Cleveland; with • additional graduate work in Eastern Thought at John Carroll University. He has completed doctoral work in Psychology from the Institute for Advanced Study of Human Sexual Behavior in San Francisco. He has served on the faculty of the University of New Mexico School of Medicine for five years and has done additional postgraduate work in medical ethics at St.John University in Queens,New York. He is currently a Financial Advisor and Registered Representative with MML Investors of Springfield,Massachusetts(Retired). Volunteer activities include: Desert AIDS Project, 10-year board member Palm Springs Human Rights Commission,6-year member Police Chiefs Advisory Board,3-year member Palm Springs Economic Development Department,Volunteer American Cancer Society, board member,fund raising committee Sunrise/Vista Chino Neighborhood Coalition Sagewood Homeowners Association,President for 17 years. Member of the Board of Trustees,Idyllwild Arts Foundation for 2 for 2 years. • CAUFORNI& - DRI{�R LICENSE DM - - - OL A12734 ExP 0 110 2/201 9 ;.y• NO Norte DIEiRICH' F-0 EDWARDJ A20UCHMPALM SPRINGS.CA 9=DOB 01/02/1943 01021W :..SEX IN wstfim$ EYES BLU <HGT s40- vwa -�6 e.. ISB s "�+>M�Iaw+nPFOaf .: 1LTGRtl1S ;= MIA DRIV OL F7705732 tr�C- up 12/17/2018 -' END MONK - LN HERNANDEZ RIVERA FN EDUARDO 751 N LOS FELICES OR E M2US" PALM SPRINGS,CA 92%2 -;+A61211711952 - R GORR LENS _ 12171952 SEX M MAN EVES BRN HGT 9'-00" WGT 20016 r• DU osLWp� �pu 061 2014 • F. SOUiFiFR14 G1I1FORNIA Rosemead, CA Your electricity bill C D I S/"1 N Rosemead, CA C(J �J f� 91771-0001 • An cursON rxmar:ArKftu I Ck pay www.sce.Com DIETRICH,EDWARD J I Page 1 of 6 For billing and service inquiries call 1-800.684-8123. Customer account 2-10-989-8635 24.hrs a day,7 days a week Date bill prepared:Jun 4'14 Service account 3-001-2306-28 _ 2034 E CHIA RD PALM SPRINGS,CA 92262 Rotating outage Group A031 Your account summary Amount of your last bill $88.95 Payment we received on May 12'14-thank you -M.95 Balance forward $0.00 Your new charges $144.89 Total amount you me by Jun 23'14 $144.89 Compare the electricity you are using For meter 222012-157568 from May 2'14 to Jun 344 Total electricity you used this month In kWh 882 Your next bHfin9 cycle will end on or about Jul 2 Y4. Your daily average electricity usage(kWh) 2 Years ago:31,70 Last year.33.87 This year 27.56 • 17 31 - Is- 0-1dilhunt May May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 92 '13 '13 '13 '13 '13 '13 '13 '13 '14 '14 94 '14 94 Pleese rerun the payment stub below aft yaur payment and mace yea check payable to Soulhem CalNomia Fdn on. (14-574) Tear here if you want to pay in person,call 14BOD-747-89M for loradona.or you can pay online at wwwse rnn. Tear here Skwm®xawrcaau Customer account 2-10-989-W35 Amount due by Jun 23'14 $144.89 �abt"a� y°13 EDISOK check payable ,p �nna E on.. Amount enclosed $ .�aawn wrvdunorur.�, STMT 06042014 P3 DIETRICH,EDWARD J 2034 E CHIA RD PALM SPRINGS,CA 92262-5385 P.O.BOX 600 • ROSEMEAD,CA 97771-0001 10 989 8635 00000070 0000000000000144A9000014489 • VII. Start Up Projections Three-Year Projected Income Statement Estimates Start Up Year: First Full Second Full 8/1/14 to Fiscal Year: Fiscal Year: 12/31/14 1/1/15to 1/1/16to 12 31 15 12 31 16 Medicinal Marijuana Sales $340,000 1,799,000 2,333,000 in any Form To Patients&Caregivers Paraphernalia Sales $10,000 $15,000 $17,000 Other Sales Edibles $36,000 $50,000 Other Income Total Revenue $350,000 $1,850,000 $2,400,000 Expenses Pa roll,Taxes&Benefits $50,000 $500,000 $500,000 Cultivation&Equip. $26,200 $100,000 $150,000 • COGS&Supplies $66,000 $71,850 $82,800 Office Ex enses $34,025 $15,000 $18'000 Utilities $7,400 $10,000 $10,000 Interest $20,000 $20,000 $Z0,000 Depreciation/Amortization $7,000 $9,000 $12,000 Leasehold Expenses $8,750 $12,000 $151000 Rent Lease Expenses $10,000 $21,000 $21,000 Other Costs $1,000 $11,800 $3,100 Total Expenses $230,375 $770,650 $831,900 Net: $119,625 $1,079,350 $1,568,100 Number of Patients 200 925 1200 Estimated Price per Ounce $200 1 $200 $200 20 JacleOrganicsCorporation P&L Pro ections(August 2014/Dec/20141 ITotal 2014 Income ust Se mbar October P12S00.00 December 50 000.00 $60 000.00 70 000.000 90 000.00 50 000.00 Expenses Taxes 12 500.00 12 500.ao 12 500.000 12 500.ao $62 50D.o0 Cost of Goods Sold 12 000.00 14 000.00 16 OOO.OD0 20 000.00 0 000.Advertlsin Marketln $1000.00 1000.00 3000.000 1000.00 5000.Bank Services 25.00 25. $25.00 25.00 125Charitable Donations 500.00 $500.00 500.00 500A0 2500.00Entertalnmen non fo 100.00 IDO. 510D.000 $100.00 s5w.001 City&Government Fee 60.001 Gra Mc Desi n Fees $100.00 100. Swo.00 SID0.001 $100.00 S500.001 Insuranre $2,000.00 $2 D00.00 $2,000.00 S2,0W.00 $2,000.00 $10,00a.0o InteresPLoan lanitorlal $200.00 200A0 $200.00 $200.00 200. $1,000,00 Lab.Fees $700.00 850. $1,000.00 2,250. $1,300.00 5000.00 LB al Fees $100,00 $100.00 100.0 $100,00 $100.00 500.00 Lobby&Gov.Relations 5200.00 $200,00 200.00 $200.00 $200.00V$1,GDO.0000Meals&Entertainment 20D.W $200.00 200.00 200,00 $200m000Misc. IW.00 5100.00 $100.00 $100.00 $100.0000Office Su Iles 50,00 50.00 $50.00 50.00 SOg000Patient Services $250.00 $250.00 $250.00 250.00 250.000Posta e&Delive 50.00 5000 50,00 50.00 50.000Printin $50.00 50A0 50.0a 50.00 50.000Professional Fees 200.0D 200A0 200.00 200.00 $200.000Research&Education $200.00 200A0 200.00 OO.00 200.0000Rent $1750,00 1750.0a 1750.00 1750.00 $ 750.0000 Employeeeeneflts 3OW.00 30W.00 3000.00 3000.00 3000.00 $15,000.00 Su Iles S1001W $100.00 $100,00 $200.00 $100.00 $500,00 Tele hone Internet 9150.00 $150.00 $150.00 $150.00 $150,00 $750.00 Travel S750,001 9750,00 $750.00 S750.13D 750.00 $3.750.00 Willies 530D,001 9300.00 $300.00. S303.001300.00 $1500.00 Website $300.00 300.00 $300,001 $300.001300.00 $1500.00 Equipment $0.00 Dispensary 10000.00 $10000.00 Lobby 3000.0D S3,W0.00 Meeting Room $4,500. $4,SM.00 Receptionist Room 0.00 Stara a Room $200.00 $200.W $200.00 $200.00 $200.00 $1,000.00 wProfit s 300.00 300.00 300.00 300.00 300.00 $1500.00 CultTales $400.00 $400.01 $400.00 00.00 $400.DO $2,000.00 efln $SDO.00 500.00 500.00 5110.00 500.D0 2500.00 ses 555,775.00 $40,425.00 $42,575.20 $44,725,00 $46,875,00 $230,375,00 -$5,775.00 $I9,s75.00 $z7,azs.a0 $35,275.00 $43,125.00 5119,625.00 lade Organics;Corporauon P&L Prole ons Inwme lanuary Fabru March April If June Jul A oat Se embar October November December 500000.005110000.00 wo,o0.00$130000.00 340 DOOM 350000.00$360000.00 Expenses 170000.005380000.00$190000.00$200 OOO.OD 200 OOOAOs as0 000.00 Taxes I SID.OMMI11000.00 $12000.00 13000.00 524000.00 SIS.ODOM Advertini6Do0.00 vDoo.Do S1s0oD.ao $29ooO.oa 520000A0 20000.00 iesDoo.00 Coat of Goods Sold $2000D.OD 22 .00 24000.00 $26 .00 29000.00 30000. 32000.00 34000.00 $36000.00 38000.00 0000.00 42 .00 37 000.00 Banks rvi Markeon 1000.00 i000,0O OOo.00 1000.00 $5000.00 1000.00 $1000. $1000.00 53000.00 SODOAD 3000.00 51000A0 $12000.00 Bank SeMces $25.00 525. 25.D0 25.00 25.00 25.00 25.00 25.00 25.00 25.00 525.00 25.00 300.00 Charitable DOnatlans 500.00 500.00 $500A0 500,00 SOD.00 500.00 500.00 $500.00 SO0,00 500.0D 00.00 500.00 $6000A0 Entertalnme 1100-001 IO6.00 $100.00 $100,00 $500.00 100.DO 100.00 100.00 100.00 CI &Government Fees 300.00 300.00 100.0 $1200.00 Graphic Design Fees i0o.00 100.D0 $300.00 100.00 100.00 IOOAO .00 $100,00 100.00 100.00 100.00 $100.00 $100.00 1200.0011 Insurance 2000.00 20DD.00 2000.00 52000.00 2000.00 $2000.00 2000.00 2MOAo z000.00 2000,00 $2DOOM $2000,00 24OM.0O Interest-Loan Janitorial 5200.001 200.00 $200.001 $200.00 200.00 200.Do 200.00 520o.ao zoD.Do 200.00 z60.00 $zoo.DD 2400.ao Lab.Fees 700.00 SIJ50.00 1 ooD.ao 1 ISO.00 1300.00 1450.00 1 600.00 1750.00 1900.00 2 oso.ao 2 2aD.DD z zoD.00 1e Sso.00 Le al Fees $100,001 S100.001100.00 100.00 110.00 100.00 100.00 $100-001 5100.001 $100001 $100.00 100.00WS2,400.00 .00 Lobby&Gov.Relations 200.00 $200.00 $200.00 D0.00 SI00Ao 20D.00 $200.00 5200.00 200.00 5200.00 5200. 200.00 .00 Meets&Entertainment 200.00 200.00 200.00 200.00 2D0,00 200.00 200, 200.00 5200.00 200. 200.00 9200.00 .00 Mlsc. 100.00 $SOOAO $100.00 100.00 $100.00 100.00 $100.00 IOOAO 100A0 $100.00 100.Oo IOo.00 .00 Office Supplies 50.00 50.00 $50.00 SO.00 50.00 50.DO SD.00 50.00 50.00 $50.00 50.00 50.00 .00 Patient Services 250.00 250.00 $250.00 250.00 $250.00 250A0 $250.00 $250.00 $250.00 250A0 250.00 250.00 00 POna &Dellve 50.00 $50.00 So.00 5DA0 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 .00 Proles 50.00 50.00 50.00 50.00 50.00 50A0 SO.DO 50.00 SO.00 $50.00 50.00 50.00 .D0 Professional Fees 200.00 200.00 $300.00 $200,00 $200.00 200.00 201 200.00 200.00 200.W 200.00 200.00 00 Research&EduntIon 200.00 200.00 200.00 2011 2DO.00 200.00 200. 200.00 2DOA0 200.00 200.00 200.0000Rent $1 750.00 1750.00 1750.00 $175D.00 1750.00 1750.00 1750.00 1750.00 1750.00 1750,00 1750.00 1750,00 00Em to ee Benefits $3 000.00 $3 000,00 $3 001 3 000.00 3 000,00 $3000.00 $3 DOO.00 3000.00 3000.00 $3 ODOAO 3000.00 .00 Supplies $1DO.00 100.0D 100.00 SIOD..00 100.00 100.00 100.00 1DO.00 WO.00 200.001 $100.DO SID0.001 $1,200.00 TelephoneIIInternet SIMIDO 5150.00 $150.00 Six.00 150.00 150.00 $350.00 150. $150.DDI $15000, I50.00 di50.00 S 800.00 Travel $750.00 7SO. $750.001 5750..00 750.00 750.00 750.Oo 750.00 $750.00 750.00 750. 750.00 000.00 Utilities .00 300.00 300. 300.00 300.00 $300.OD 300.00 300.00 300.00 $300 300.00 300.00 300.00 3600.00 Webslte 300.00 $300.00 300.00 300.00 300.00 $300,00 $300.00 300.00 300.00 300. $3,600,01111 Equipment $O.OD DI ensa 10000.00 $100D0,00 $20,000.00 Lobby3 000 OO $3 000.00 000.00 Meeting Raom a5o0,00 500.00 f9000.00 Receptionist Room Storage Room .00 $200.00 $200,00 200.00 $200.00 200.00 200.Oo $200.00 $200.00 $200.00 $200.00 $200.00 200.D0 $2,400.00 Cultivation cult#1^moms $500.00 $500.00 500.0( SSOMOO 500.00 SOO.DD 500.00 500.00 500.00 500.00 5500.00 500.00 OOo.00 Cul[Rl`V Il Tills 500.00 $500.00 Sm.00 $50000 5DO.00 $5oo. $500.00 500.00 $500.00 500.00 $So0.00 $500.00 OOO.Oo Cult#1-Flowerin 500.00 $500,00 $500,00 $500.00 $500.00 $500.00 500.00 $500.00 5500.00 $500.00 500A0 500.00 6000.00 Net Ex enses $61,575.00 $47,225.00 $50375.00 $53,525.00 $56,675.W $59,a25.00 $90,475.00 $66,125.00 $69,275.00 $72,425.00 $75,575.00 $77,575.00$770,650.00 Net Profit $3s,47 .00 Ssz,ns.D0 569,6xs.00 576,47s.a0 $B3,3zs.00 $90,175.00 $79,525.00 5103,875.00$110,725.00$317,575.00 5128,a15.00 5122,425.00$i,ma,sso.o0 • • 2oi6 Lade Organics Corporation P&L Projections Income January February March ARM May une Italy August September October November December Expenses W 200,D00.00 200000.0052000W.W$200D.W 200000.0a$200000.DD 200000.W$200000.00 200000.0o 4D4.00000.00 200000.00$200060.00 2400oD Taxes g2o,000.00 $20000.00 $20,W0.00 $20000.00 $20,000.00 $20,000.0 $20,000.00 $20000.00 S20,D00. $2000,00 $20,000.00 20000.00$240,000.00 Cost of Goods Sold $20,000,OD $22000.00 $24000.00 $26,000.W 28 0.00 $30,000. 32,000, $34,000.00 $36,000.00 39,000.0 $40,000,WS40,000.00$370,000.00 Adverdsln arketIng $1,00o.00 $1 000, $1,OD0,00 $2,000.00 1000.00 $1000.00 1 .00 $1,D00.00 $1,000.00 $1000.00 $1,0D0. $2,000,00 $12,000.00 Bank Services $25.00 25.W $25.00 $2S.00 $25.0 $25.00 $25.00 $25,00 $25.W $25,00 s2s.00 S25.00 $300.DD Charitable Donations S5110.00 SSOD,00 $500.00 $500.00 SSM.00 S500.00 00. 1$20000."'00000 500.00 500.00 500. 500.00 6000.00 EMertelnme nonfood 100.W IW.00 3W.W 1W.W $1W.W $100.00 $100.00 100.00 5700.00 100.00 IW.W 1200.00 CI &Government Fees $0.00 Graphic Design Fees 100.00 100.00 $100.W S1W.W 100.00 100.00 100.00 100.00 $IO0.00 100.00 100.00 200.00 Insurance 2000.00 $2 WO.DD 000.00 $2,D00.00 2000.00 2000.00 $i W0.00 2000.D0 2000.W 2000.00 2000.00 24,000.00 Interest-Loan Janitorial 200.W $200.00 200.W 200 200.00 200.W 200.00 200.00 $200.W 200, $200.00 2400.00 Lab.Fees $2200.W $2 00.W 22W.00 2200.00 2200.00 22W.W 2200.00 2200.00 2200.00 2200.00 2200.00 26400.00 Le (Fees 100.W $100.W 100.W IW.W 1W.W 100.W IW.00 IW.00 $IW.00 100.00 IW.00 1 W.W Lobby&Gov.Relations 200.00 200.W 200.00 $200.00 $2W.00 $2W.W 200.00 $200.W $200.00 5200.00 $200.00 2400.00 Meals&Entertainment S2GO.00 S200.00 $200.00 $200.001200.DO $200.W 2W.W $200. $200.00 Szoo.ou $200,W 200.00 $2400.W Misc. $300.00 $IWAO 1W.00 $IW.W $IW.00 IW.W 100.W $100.00 SW.W $100.00 $SW.W $100.00 12W.W Office Supplies 50.W 50.00 50.00 5040 SO.00 50.W SO. 550. 50.00 $50.00 50.00 50.00 S6W.W Patient Services 250.W $250.00 250.00 $250,00 $250.00 $250.W $250. $250.W $250.W 250.W $250.W $250.W $3000.00 Posta a&Delive 50.W W. 50.W SO.W 50.00 50.W 50.W $50.00 SO.W $50.W 50.00 SO.G0 600.W PrintingSO.W 50.00 SO.00 50.00 50.00 $50.W 50.00 50.W 50.W 50.W $50.W $50.00 $6W.W Professional Fees 200.W 200.00 200.W $200.00 2W.W $200.00 200.0o $200.W 200.00 200.00 200.00 2W.W $24W.00 Research&Education 2W.W 200.0 200.00 $200.W 2W.W 200.W 2W.00 200.00 200.00 200.00 $200.00 200.00 24W.W Rent $1750.00 375040 750,0 1750.W 5750.W $1750,W 1750.W 1750.00 $1750.W $1750.00 1750.W 1750.00 21000.00 EmployeeBenefits 3000.00 30W.W 3000.00 $3000.00 3000.00 3000.W $30D(o 30W.00 3000.00 30W.0D 3000.W 3W0.00 36000.00 Supplies 1W.W 100.W 100.00 1W.W 1W.00 200. IW.W $1W.00 3W.00 $100.W $100.00 SW.00 200.W Telephone/Internet 150.00 150.00 130.00 1S0,o0 150.W ISO.00 150.00 150.W 150.00 $150.00 150.00 150.W 800.00 Travel 750.W 750.00 750.00 750.W 750.W 750.W 750.W 750.00 $750.00 750.W $750.00 750.W 9000.00 Utilltles $300.00 $300.00 300.00 $3W.00 300.00 300.W 3W.W 300.00 300.W 300.00 300.W 300.W 36W.W Webslte 300.00 300.00 $3W.00 300.00 $3W.D0 3W. 300.W 3W.W 300.W $300.00 $300.0 $300.W $3600.00 Equipment SD.W Dis ertu 1ODW.W $100W.W $20,000.00 Lobby 3000.00 $3,000. OOO.W MeetingRoom 4500.W 6 500.W ,000.00 Rece Nonist Room 00 Storage Room 1W.W $200.00 $200.002W.W 2W.00 2W.W $200.00iW.W 2W.W $2W.W 200.00 200.00 Si,4W.W CURIvation Cultxl"Moms $500.W 500.0 SW.00 S50D,00 $500.00 $50000 $SOO.00 500.01) $500.00 $500.00 $500.00 S500.00 $6,000,W Cult#1 Veggle Tales 500 $500.W $500.001 $500.00 $500,00 $500.00 $SW.W SW.W $500.00 $500.00 $500.00 $500.00 $600D.W Cult gl"Flowerin SW.W $500.00 SW.W SW,W SW.00 SOO.W 500.00 SSW.W $500.00 $500.00 $500.W $500,00 $6,000.W Net ExpenSes 1 $73,075.00 $57,575.00 $59,575.00 $61,575.00 $63,575.W $65,575.00 $85,075.00 $69,575.00 $71,575.01) $73,575.001 $75,575.00 $75,575.DO$831,00.00 Net Profit $126,925.00$142,425-00$140,425.00 4138,42%On$136,425.00$134,425.00$114,925.W$1In 425.W$128,425.00$126,425.00$124,425.00$124,425.W$1,566,100A0 Jade Organics Corporation MEMBERSHIP APPLICATION I have read and agree to the above rules and conditions of Membership and hereby apply for Membership of this Collective. I certify under penalty of perjury under the laws of the State of California,that I am a resident of the State of California and have been diagnosed with a serious illness for which cannabis provides relief and that 1 have received a recommendation or an approval from my licensed California physician to use cannabis medicinally. I authorize the Collective to contact my physician and ► authorize my physician to verify my recommendation to the Collective. I agree that I will consistently rely upon the Collective as the exclusive source of my medicinal cannabis. I understand that so long as I comply with the above rules and conditions of Membership,my Membership shall remain in effect until the expiration of my recommendation or until I revoke my Membership in writing by certified mail, return receipt requested,whichever comes first • Signature: Date: Print Name: Address: Apt.#: City: State: Zip Code: E-mail: Phone: Cell #: [for internal office use only] Recommendation verified by: Date: Membership Approved by: Date: • Membership/Verification Expiration Date: Med. ID # 21 GREENSIGHT MEDICAL • INFO: 888-744-4861; FAX:951-653-7409 MAIL: 72-780 COUNTRY CLUB DRIVE,SUITE#304 RANCHO MIRAGE, CA 92270 PALM SPRINGS" RANCHO MIRAGE Physician Statement and Recommendation Recommendation ID Number(REC ID): 0818 0401 6054 817 Patient Name: EDUARDO HERNANDEZ RIVERA Patient Identification: DMV: F7705732 Limits Exemption: No Exemption Recommendation Issued: 05/30/2014 Recommendation Valid Through: 05/29/2015 24-Hour Verification Phone: 310-855-3629 Online: https:liverify.greenlifemedical.com Pursuant to California's Health and Safety Code Section 11362.5 The purpose of this medical document is to identify this individual as a patient whose possession and/or cultivation of medical cannabis is permissible pursuant to California Health and Safety Code Section 11362.5 and Senate Bill 420. This affirms the patient listed above has been examined and evaluated by the physician indicated on this document and that the physician is licensed to practice medicine in the State of California. It is their assessment that the above-mentioned patient qualifies under California Health and Safety Code Section 11362.5 for the use of cannabis for medical purposes. If this patient chooses to use cannabis therapeutically,the staff of the clinic indicated on this document will continue to monitor the status of this patient The attending physician is responsible for only the medicinal cannabis aspect of medical pre. This patient assumes full responsibility for any and all risks associated with this treatment option. The physician has discussed the potential medical benefits and risks of cannabis use. This patient hereby gives permission for representatives of GreenLife Medical Systems to discuss the nature of their condition(s) and the information contained within this document for verification purposes.This is a non-transferable document.This document is the property of the physician indicated on this document and can be revoked at any time without notice.Void after expiration, if altered or misused. Patient Signature: f f Physician Signature: T—IY Physician Name:JAMES KAO, D.O. License Number:20A7960 Clinic Name: GREENSIGHT MEDICAL Clinic Address: 4693 E.Ramon Road Palm Springs, CA 92264 ✓1� Recommendation Verifiable By: GreenLife Medical Systems LLC Collective/Patient Support Line:310-857-6352 GREENSIGHT MEDICAL • INFO: 888-744-4861; FAX:951-653-7409 MAIL: 72-780 COUNTRY CLUB DRIVE,SUITE q 304 RANCHO MIRAGE, CA 92270 PALM SPRINGS * RANCHO MIRAGE Physician Statement and Recommendation Recommendation ID Number (REC ID): 0000 4481 7034 711 Patient Name: EDWARD J DIETRICH Patient Identification: DMV. A1273469 Limits Exemption: CULTIVATION/POSSESSION IN EXCESS OF CALIFORNIA GUIDELINES FOR PERSONAL USE ONLY-PER PHYSICAL LEGAL ADDRESS NOT TO EXCEED 99 PLANTS/5KGS Recommendation Issued: 05/30/2014 Recommendation Valid Through: 05/29/2015 24-Hour Verification Phone: 310-855-3629 Online: https:/tverifg greenlifemedical.com Pursuant to California's Health and Safety Code Section 11362.5 The purpose of this medical document is to identify this individual as a patient whose possession and/or cultivation of medical cannabis is permissible pursuant to California Health and Safety Code Section 11362.5 and Senate Bill 420. This affirms the patient listed above has been examined and evaluated by the physician indicated on this document and that the physician is licensed to practice medicine in the State of California. It is their assessment that the above-mentioned patient qualifies under California Health and Safety Code Section 11362.5 for the use of cannabis for medical purposes. If this patient chooses to use cannabis therapeutically,the staff of the clinic indicated on this document will continue to monitor the status of this patient. The attending physician is responsible for only the medicinal cannabis aspect of medical care. This patient assumes full responsibility for any and all risks associated with this treatment option. The physician has discussed the potential medical benefits and risks of cannabis use. This patient hereby gives permission for representatives of Greenl-ife Medical Systems to discuss the nature of their condition(s) and the information contained within this document for verification purposes.This is a non-transferable document.This document is the property of the physician indicated on this document and can be revoked at any time without notice.Void after expiration, if altered or misused. a Patient Signature: Physician Signature: _ Physician Name: JAMES KAO, D.O. License Number:20A7960 Clinic Name: GREENSIGHT MEDICAL Clinic Address: 4693 E. Ramon Road Palm Springs,CA 92264 Recommendation Verifiable By: GreenLife Medical Systems LLC Collective/Patient Support Line:310-M-6352 • Dispensary & Cultivation Site Inspection Checklist ❑ A.The dispensary: ❑ 1. Ensure that the dispensary is operating and available to dispense medical marijuana to qualifying patients and/or designated caregivers at least_hours weekly between the hours of_:00 a.m. and _ :00 p.m. 112. Has developed, documented,and implemented policies and procedures regarding: ❑ a.job descriptions and employment contracts, ❑ i. Personnel duties,authority, responsibilities, and qualifications ❑ ii. Personnel supervision ❑ iii.Training in and adherence to confidentiality requirements El iv. Periodic performance evaluations ❑ v. Disciplinary actions ❑ b. Business records, such as a manual or computerized records of assets and liabilities,monetary transactions,journals,ledgers, and supporting documents, including agreements, checks, invoices, and vouchers ❑ c. Inventory control, including: ❑ i.Tracking • ❑ ii. Packaging ❑ iii.Accepting marijuana from qualifying patients and designated caregivers ❑ iv.Acquiring marijuana from other dispensaries; and ❑ v. Disposing of unusable marijuana,which may include submitting any unusable marijuana to a local law enforcement agency; ❑ d. Qualifying patient records,including purchases, denials of sale, any delivery options, confidentiality,and retention ❑ e. Patient education and support: ❑ i.Availability of different strains of medical marijuana and the effects of the different strains ❑ ii. Information about purported effectiveness of various methods, forms,and routes of medical marijuana administration; ❑ iii. Methods of tracking the effects on a qualifying patient of different strains and forms of medical marijuana; and ❑ iv. Prohibition on the smoking of medical marijuana in public places; ❑ 3. Maintains copies of the policies and procedures at the dispensary and provides copies to the Department for review upon request ❑ 4. Reviews dispensary policies and procedures at least once every 12 months from the issue date of the dispensary registration certificate and update as needed • ❑ S. Employs or contracts with a medical director 22 • ❑ 6. Ensures that each dispensary agent has the dispensary agent's registry identification card in the dispensary agent's immediate possession when the dispensary agent: ❑ a. is working or providing volunteer services at the dispensary or the dispensary's cultivation site, or ❑ b. is transporting marijuana for the dispensary: ❑ 7. Ensures that a dispensary agent accompanies any individual other than another dispensary agent associated with the dispensary when the individual is present in the enclosed, locked facility where marijuana is cultivated by the dispensary; ❑ 8. Does not allow an individual who does not possess a dispensary agent registry identification card issued under the dispensary registration certificate to: ❑ a. Serve as a principal officer or board member for the dispensary, ❑ b. Serve as the medical director for the dispensary; ❑ c. Be employed by the dispensary,or Eld. Provide volunteer services on behalf of the dispensary; at p ry, ❑ 9. Provides written notice to the Department,including the date of the event within ten working days after the date,when a dispensary agent no longer: ❑ a. Serves as a principal officer or board member for the dispensary; .❑ b. Serves as the medical director for the dispensary, • ❑ c. is employed by the dispensary, or ❑ d. Provides volunteer services at or on behalf of the dispensary; ❑ 10. Documents and reports any loss or theft of marijuana from the dispensary to the appropriate law enforcement agency; ❑ 11. Maintains copies of any documentation required in this Chapter for at least 12 months after the date on the documentation and provide copies of the documentation to the Department for review upon request; ❑ 12. Posts the following information in a place that can be viewed by the individuals entering the dispensary; ❑ a. If applicable,the dispensary' s approval to operate, ❑ b.The dispensary' s registration certificate, ❑ c.The name of the dispensary' s medical director and the medical director' s license number on a sign at least 20 centimeters by 30 centimeters, and ❑ d.The hours of operation during which the dispensary will dispense medical marijuana to qualifying patient or a designated caregiver; ❑ 13. Does not lend any part of the dispensary's income or property without receiving adequate security and a reasonable rate of interest; ❑ 14. Does not purchase property for more than adequate consideration in money or cash equivalent; ❑ 15. Does not pay compensation for salaries or other compensation for personal • services that is in excess of a reasonable allowance; 23 • ❑ 16. Does not sell any part of the dispensary' s property or equipment for less than adequate consideration in money or cash equivalent; and ❑ 17. Does not engage in any other transaction that results in a substantial diversion of the dispensary' s income or property. ❑ B. If the dispensary cultivates marijuana,the dispensary cultivates the marijuana in an enclosed,locked facility. Medical Consultant ❑ A.The dispensary will seek to appoint an individual who is a physician,to function as a medical consultant. ❑ B. During hours of operation, the medical consultant will be able to be contacted by any means possible, such as by telephone or pager. ❑ C. Develops and provides training to the dispensary's dispensary agents at least once every 12 months from the initial date of the dispensary's registration certificate on the following subjects: ❑ a. Guidelines for providing information to qualifying patients related to risks,benefits,and side effects associated with medical marijuana; ❑ b. Guidelines for providing support to qualifying patients related to the qualifying patient's self-assessment of the qualifying patient's • symptoms,including a rating scale of pain,cachexia or wasting syndrome, nausea,seizures,muscle spasms, and agitation; ❑ c. Recognizing signs and symptoms for substance abuse; and ❑ d. Guidelines for refusing to provide medical marijuana to an Individual who appears to be impaired or abusing medical marijuana ❑ e. Is involved in creating new policies for patient education and support. ❑ D.The medical consultant provides oversight for the development and dissemination of: Ell. Educational materials for qualifying patients and designated caregivers that include: ❑ a. Guidelines for notifying the physician who provided the written certification for medical marijuana if side effects or contraindications occur; ❑ b. A description of the potential for differing strengths of medical marijuana strains and products; ❑ c. Information about potential drug-drug interactions, including interactions with alcohol, prescription drugs, and non-prescription drugs,and supplements; ❑ d. Techniques for the use of medical marijuana and marijuana • paraphernalia; 24 ❑ e. Information about different methods, forms,and routes of medical marijuana administration; ❑ f. Signs and symptoms of substance abuse,including tolerance, dependency,and withdrawal; and ❑ g. A listing of substance abuse programs and referral information; ❑ 2.A system for a qualifying patient or the qualifying patient's designated caregiver to document the qualifying patient's pain,cachexia or wasting syndrome, nausea,seizures, muscle spasms,or agitation that includes: ❑ a.A log book, maintained by the qualifying patient and/or the qualifying patient's designated caregiver, in which the qualifying patient or the qualifying patient's designated caregiver may track the use and effects of specific medical marijuana strains and products; ❑ b. A rating scale for pain,cachexia or wasting syndrome, nausea, seizures, muscle spasms,or agitation; ❑ c. Guidelines for the qualifying patient's self-assessment or,if applicable, assessment of the qualifying patient by the qualifying patient's designated caregiver; and ❑ d. Guidelines for reporting usage and symptoms to the physician providing the written certification for medical marijuana and any other treating physicians; and ❑ 3. Helps to create and implement policies and procedures for refusing to provide medical marijuana to an individual who appears to be impaired or abusing medical marijuana. ❑ E.The medical consultant for a dispensary does not provide written certifications for medical marijuana for any qualifying patient. Dispensing Medical Marijuana ❑ A. Before dispensing medical marijuana to a qualifying patient or designated caregiver,the dispensary agent: ❑ 1.Verifies the qualifying patient's or the designated caregiver's identity; ❑ 2.Offers any appropriate patient education or support materials; ❑ 3. Enters the qualifying patient's or designated caregiver's registry identification number on the qualifying patient's or designated caregiver's registry identification card into the medical marijuana electronic verification system; 114.Verifies the validity of the qualifying patient's or designated caregiver's registry identification card; ❑ 5. Verifies that the amount of medical marijuana the qualifying patient or designated caregiver is requesting would not cause the qualifying patient to exceed the limit on obtaining no more than 2.5 ounces of medical marijuana during any 14-calendar-day period; and ❑ 6. Enters the following information into the medical marijuana electronic • verification system for the qualifying patient or designated caregiver: 25 • ❑ a.The amount of medical marijuana dispensed, ❑ b.Whether the medical marijuana was dispensed to the qualifying patient or to the qualifying patient's designated caregiver, ❑ c.The date and time the medical marijuana was dispensed, ❑ d.The dispensary agent's registry identification number, and ❑ e.The identification number for the dispensary Qualifying Patient Records ❑ A. The dispensary ensures that: ❑ 1.A qualifying patient record is established and maintained for each qualifying patient who obtains medical marijuana from the dispensary; ❑ 2.An entry in a qualifying patient record: ❑ a. Is recorded only by a dispensary agent authorized by dispensary policies and procedures to make an entry, ❑ b. Is dated and signed by the dispensary agent, ❑ c. Includes the dispensary agent's registry identification number, and ❑ d. Is not changed to make the initial entry illegible; ❑ 3. If an electronic signature is used to sign an entry, the dispensary agent whose signature the electronic code represents is accountable for the use of • the electronic signature; ❑ 4.A qualifying patient record is only accessed by a dispensary agent authorized by dispensary policies and procedures to access the qualifying patient record; ❑ S.A qualifying patient record is provided to the Department for review upon request, ❑ 6.A qualifying patient record is protected from loss,damage,or unauthorized use; and ❑ 7.A qualifying patient record is maintained for five years from the date of the qualifying patient's or,if applicable,the qualifying patient's designated caregiver's last request for medical marijuana from the dispensary. ❑ B. If the dispensary maintains qualifying patient records electronically, the dispensary ensures that: ❑ 1.There are safeguards to prevent unauthorized access, and ❑ 2.The date and time of an entry in a qualifying patient record is recorded electronically by an internal clock. ❑ C.The dispensary ensures that a qualifying patient's record for the qualifying patient who requests or whose designated caregiver on behalf of the qualifying patient requests medical marijuana from the dispensary contains: ❑ 1. Qualifying patient information that includes: ❑ a.The qualifying patient's name; . ❑ b. The qualifying patient's date of birth; and ❑ c.The name of the qualifying patient's designated caregiver 26 • ❑ 2. Documentation of any patient education and support materials provided to the qualifying patient or the qualifying patient's designated caregiver, including a description of the materials and the date the materials were provided; ❑ 3. For each time the qualifying patient requests and does not obtain medical marijuana or, if applicable,the designated caregiver requests and does not obtain medical marijuana on behalf of the qualifying patient from the dispensary, the following: ❑ a.The date, ❑ b.The name and registry identification number of the individual who requested the medical marijuana,and ❑ c.The dispensary's reason for refusing to provide the medical marijuana. Inventory Control System ❑ A.The dispensary has designated in writing a dispensary agent who has oversight of the dispensary's medical marijuana inventory control system. ❑ B.The dispensary only acquires marijuana from: ❑ 1.The dispensary's cultivation site, ❑ 2.Another dispensary or another dispensary' s cultivation site, ❑ 3.A qualifying patient authorized by the Department to cultivate • marijuana, or ❑ 4.A designated caregiver authorized by the Department to cultivate marijuana. ❑ C.The dispensary has established and implemented an inventory control system for the dispensary's medical marijuana that documents: ❑ 1.Each day's beginning inventory,acquisitions, harvests, sales, disbursements, disposal of unusable marijuana, and ending inventory; ❑ 2. For acquiring medical marijuana from a qualifying patient or designated caregiver: ❑ a.A description of the medical marijuana acquired including the amount and strain, ❑ b.The name and registry identification number of the qualifying patient or designated caregiver who provided the medical marijuana, ❑ c.The name and registry identification number of the dispensary agent receiving the medical marijuana on behalf of the dispensary, and ❑ d.The date of acquisition; ❑ 3. For acquiring medical marijuana from another dispensary: ❑ a.A description of the medical marijuana acquired including the amount, strain,and batch number; • ❑ b.The name and registry identification number of the dispensary and the dispensary agent who provided the medical marijuana; 27 • ❑ c.The name and registry identification number of the dispensary agent receiving the medical marijuana on behalf of the dispensary; and ❑ d.The date of acquisition; ❑ 4. For each batch of marijuana cultivated: ❑ a.The batch number; ❑ b.Whether the batch originated from marijuana seeds or marijuana cuttings; ❑ c.The origin and strain of marijuana seed or marijuana cutting planted; ❑ d.The number of marijuana seeds or marijuana cuttings planted; ❑ e. The date the marijuana seeds or cuttings were planted; ❑ f.A list of all chemical additives,including nonorganic pesticides, herbicides, and fertilizers used in the cultivation; ❑ g.The number of female plants grown to maturity; ❑ h. Harvest information including: ❑ i. Date of harvest; ❑ ii. Final processed usable marijuana yield weight; ❑ iii. Name and registry identification number of the dispensary agent responsible for the harvest; and ❑ i.The disposal of medical marijuana that is not usable marijuana including the: ❑ i. Description of and reason for the marijuana being disposed of including, if applicable,the number of any failed or other unusable plants; ❑ ii. Date of disposal; ❑ iii. Method of disposal; and ❑ iv. Name and registry identification number of the dispensary agent responsible for the disposal; ❑ S. For providing medical marijuana to another dispensary: ❑ a.The amount, strain, and batch number of medical marijuana provided, ❑ b.The name and registry identification number of the other dispensary, ❑ c.The name and registry identification number of the dispensary agent who received the medical marijuana on behalf of the other dispensary,and ❑ d.The date the medical marijuana was provided; ❑ 6. For receiving edible food products infused with medical marijuana from another dispensary: ❑ a.A description of the edible food products received from the dispensary • including total weight of each edible food product and estimated amount and batch number of the medical marijuana infused in each edible product; 28 ❑ b. Total estimated amount and batch number of medical marijuana infused in the edible food products; ❑ c.The name and registry identification number of he: ❑ i. Dispensary and the dispensary agent providing the edible food products to the receiving dispensary,and ❑ ii. Dispensary agent receiving the edible food products onbehalf of the receiving dispensary; and ❑ d.The date the edible food products were provided to the dispensary. ❑ D.The individual designated in subsection (A) conducts and documents an audit of the dispensary's inventory that is accounted for according to generally accepted accounting principles at least once every 30 calendar days. ❑ 1. If the audit identifies a reduction in the amount of medical marijuana in the dispensary's inventory not due to documented causes,the dispensary has determined where the loss occurred and taken and documented corrective action. ❑ 2. If the reduction in the amount of medical marijuana in the dispensary's inventory is due to suspected criminal activity a dispensary agent,the dispensary has reported the dispensary agent to the Department and to local law enforcement authorities. ❑ E.The dispensary: ❑ 1. Maintains the documentation required in subsections (C) and (D) at the . dispensary for five years from the date on the document,and ❑ 2. Provides the documentation required in subsections (C) and (D) to the Department for review upon request. Product Labeling and Analysis ❑ A.The dispensary ensures that medical marijuana provided by the dispensary to a qualifying patient or a designated caregiver is labeled with: ❑ 1.The dispensary's registry identification number; ❑ 2.The amount,strain,and batch number of medical marijuana; ❑ 3.The following statement"CALIFORNIA DEPARTMENT OF HEALTH SERVICES' WARNING: Marijuana use can be addictive and can impair an individual's ability to drive a motor vehicle or operate heavy machinery. Marijuana smoke contains carcinogens and can lead to an increased risk for cancer, tachycardia, hypertension,heart attack, and lung infection. KEEP MARIJUANA OUT OF REACH OF CHILDREN AND ANY UNAUTHORIZED INDIVIDUAL" ❑ 4. If not cultivated by the dispensary,whether the medical marijuana was obtained from a qualifying patient,a designated caregiver, or another dispensary; ❑ S.The date of manufacture, harvest, or sale; ❑ 6.A list of all chemical additives, including nonorganic pesticides, • herbicides, and fertilizers,used in the cultivation and production of the medical marijuana; and 29 • ❑ 7.The registry identification number of the qualifying patient. ❑ B. If the dispensary provides medical marijuana cultivated by the dispensary to another dispensary, the dispensary ensures that the medical marijuana is labeled with: ❑ 1. The dispensary's registry identification number; ❑ 2.The amount,strain,and batch number of the medical marijuana; ❑ 3.The date of harvest or sale; and ❑ 4.A list of all chemical additives, including nonorganic pesticides, herbicides, and fertilizers, used in the cultivation of the medical marijuana. ❑ C. If medical marijuana is provided as part of an edible food product, the dispensary, in addition to the information in subsection (A),includes on the label the total weight of the edible food product. ❑ D.The dispensary provides to the Department upon request a sample of the dispensary's medical marijuana inventory of sufficient quantity to enable the Department to conduct an analysis of the medical marijuana. Security ❑ A.The dispensary ensures that access to the enclosed, locked facility where marijuana is cultivated is limited to the dispensary's principal officers,board members, and authorized dispensary agents. ❑ B.The dispensary' s dispensary agents transport marijuana, marijuana plants, • and marijuana paraphernalia between the dispensary and: ❑ 1.The dispensary's cultivation site, ❑ 2.A qualifying patient, and ❑ 3.Another dispensary ❑ C. If the dispensary transports marijuana,marijuana plants,and marijuana paraphernalia as shown above,before transportation,the dispensary agent: ❑ 1. Completes a trip plan that includes: ❑ a.The name of the dispensary agent in charge of transporting the marijuana; ❑ b. The date and start time of the trip; ❑ c. A description of the marijuana, marijuana plants, or marijuana paraphernalia being transported; ❑ d. Anticipated route of transportation; and ❑ 2. Provides a copy of the trip plan in subsection (C)(1) to the dispensary. ❑ D. If the dispensary transports marijuana, marijuana plants,and marijuana paraphernalia as shown above,during transportation, the dispensary agent: ❑ 1.Carries a copy of the trip plan in subsection (C)(1) with the dispensary agent for the duration of the trip; ❑ 2. Uses a vehicle without any medical marijuana identification; ❑ 3. Has a means of communication with the dispensary; and • ❑ 4. Ensures that the marijuana, marijuana plants, or marijuana paraphernalia are not visible; 30 • ❑ E. If the dispensary transports marijuana, marijuana plants,and marijuana paraphernalia as shown above,after transportation, the dispensary agent enters the end time of the trip and any changes to the trip plan on the trip plan required in subsection ❑ F.The dispensary: ❑ 1. Maintains the documents required in subsection (C)(2) and (E), and ❑ 2. Provides a copy of the documents required in subsection (C)(2) and (E) to the Department for review upon request. ❑ G. To prevent unauthorized access to medical marijuana at the dispensary and, if applicable, the dispensary's cultivation site, the dispensary has the following: ❑ 1. Security equipment to deter and prevent unauthorized entrance into limited access areas that include: ❑ a. Devices or a series of devices to detect unauthorized intrusion, which may include a signal system interconnected with a radio frequency method,such as cellular, private radio signals,or other mechanical or electronic device; ❑ b. Exterior lighting to facilitate surveillance; ❑ c. Electronic monitoring including: ❑ i.At least one 19 inch or greater call-up monitor; ❑ ii.A video printer capable of immediately producing a clear still photo from any video camera image; • ❑ iii.Video cameras: ❑ (1) Providing coverage of all entrances to and exits from limited access areas and all entrances to and exits from the building,capable of identifying any activity occurring in or adjacent to the building; and ❑ (2) Have a recording resolution of least at 704 x 480 or the equivalent; ❑ iv.A video camera at each point of sale location allowing for the identification of any qualifying patient or designated caregiver purchasing medical marijuana; ❑ v. A video camera in each grow room capable of identifying any activity occurring within the grow room in low light conditions; ❑ vi. Storage of video recordings from the video cameras for at least 30 calendar days; ❑ vii. A failure notification system that provides an audible and visual notification of any failure in the electronic monitoring system; and ❑ viii. Sufficient battery backup for video cameras and • recording equipment to support at least five minutes of recording in the event of a power outage; and 31 • ❑ d. Panic buttons in the a interior of each building; ❑ 2. Policies and procedures: ❑ a.That restrict access to the areas of the dispensary that contain marijuana and if applicable, the dispensary's cultivation site, to authorized individuals only; ❑ b. That provide for the identification of authorized individuals; ❑ c.That stops,and prevents loitering in and around the entire property; ❑ d. For conducting electronic monitoring; and ❑ e. For the use of a panic button Edible Food Products ❑ A. If the dispensary prepares, sells, or dispenses marijuana-infused edible food products, the dispensary: ❑ 1. Obtained written authorization from the Department to prepare,sell or dispense marijuana-infused edible food products before preparing,selling, or dispensing marijuana-infused edible food products; [12. Ensures that the marijuana-infused edible food products are prepared according to the applicable requirements according laws governing food products 113. If the marijuana-infused edible food products are not prepared at the dispensary, the dispensary obtained and maintains at the dispensary a copy of the current written authorization to prepare marijuana-infused edible food products from the dispensary that prepares the marijuana-infused edible products; and ❑ 4. If the dispensary sells or dispenses marijuana-infused edible food products, ensures that the marijuana-infused edible food products are sold or dispensed according laws governing food products ❑ B.The dispensary is responsible for the content and quality of any edible food product sold or dispensed by the dispensary or quality of the medical marijuana, is prohibited from direct contact with any medical marijuana or equipment or materials for processing medical marijuana until the medical director determines that the dispensary agent's health condition will not adversely affect the medical marijuana. • 32 40 Physical Plants ❑ A.The dispensary is located at least 500 feet from a private school or a public school. ❑ B.The dispensary provides on-site parking or parking adjacent to the building used as the dispensary. ❑ C.The building used as or the location used as a dispensary's cultivation site has: ❑ 1.At least one toilet room; ❑ 2. Each toilet room contains: ❑ a.A flushable toilet; ❑ b. Mounted toilet tissue; ❑ c.A sink with running water; ❑ d. Soap contained in a dispenser; and ❑ e. Disposable,single-use paper towels in a mounted dispenser or a mechanical air hand dryer; ❑ 3.At least one hand-washing sink not located in a toilet room; ❑ 4. Designated storage areas for medical marijuana or materials used in direct contact with medical marijuana separate from storage areas for toxic or flammable materials; and ❑ 5. If preparation or packaging of medical marijuana is done in the building, a designated area for the preparation or packaging that: ❑ a. Includes work space that can be sanitized; and ❑ b. is only used for the preparation or packaging of medical marijuana. ❑ D. For each commercial device used at the dispensary or the dispensary's cultivation site,the dispensary: ❑ 1. Ensures that the commercial device is licensed ❑ 2. Maintains documentation of the commercial device's license or certification,and ❑ 3. Provides a copy of the commercial device's license or certification to the Department for review upon request. ❑ A.The dispensary is operated on a not-far-profit basis. ❑ B.The dispensary, and if applicable,the dispensary's cultivation site,has a single secure entrance. ❑ C.The dispensary provides no compensation for medical marijuana acquired from qualifying patients and designated caregivers. ❑ D.The dispensary does not permit any person to consume marijuana on the property of the dispensary,or if applicable, the dispensary's cultivation site 33 • Jade Organics Corporation A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION MEMBERSHIP AGREEMENT THIS MEMBERSHIP AGREEMENT (the"Agreement") is by and between the undersigned ("Member') and Jade Organics Corporation (the"Collective'l. 1.PREAMBLE On November 6,2009,the people of the State of California enacted the Compassionate Use Act of 1996 (the"Act") in order to allow seriously ill residents of the State who have either the oral or written approval or recommendation of a licensed physician to use cannabis for medical purposes without fear of criminal liability under Sections 11357 and 11358 of the California Health and Safety Code(the"Code").The Act is codified in Section 11362.5 of the Code. To clarify the scope of the application of the act and to facilitate the prompt identification of qualified patients in order to avoid unnecessary arrest and prosecution of those individuals entitled to protection under the Act,the California legislature enacted Senate Bill 420, codified in Sections 11362.7 et seq.of the Code. The declared intent of the legislature by enacting Senate Bill 420 was to enhance the access of patients and caregivers to medical cannabis through the collective,cooperative cultivation of medical cannabis.Accordingly,Section 11326.775 of the Code states that Qualified patients,persons with valid identification cards and the designated Primary Caregivers of qualified patients and persons with identification cards,who associate within the State of California in order to collectively or cooperatively cultivate cannabis for medical purposes shall not solely on the basis of that fact be subject to State criminal sanctions under Sections Jade Organics Corporation,a nonprofit mutual benefit corporation was organized by qualified medical cannabis patients and their primary caregivers for the purpose of collectively operating and maintaining the cultivation,acquisition and/or distribution of medical cannabis to qualified patients for medical purposes pursuant to Section 11362.7,et seq.of the Code as provided for specifically by Section 11362.775 of the Code. It is the intent of this Membership Agreement that the undersigned applicant for Membership of this Collective be a qualified patient or primary caregiver pursuant to the applicable Sections of the Code and that after such applicant has been accepted for Membership,the Member shall be bound by and strictly adhere to the terms and conditions set forth herein. Signature of Acceptance by Patient Page 1: (1 of 4) 34 • 11.THE COLLECTIVE PURPOSE The purpose of the Collective is to: (A) Collectively and cooperatively cultivate,acquire,possess and distribute medical cannabis by and between the Members of the Collective; (B)To provide Members safe and affordable access to medical cannabis without fear of criminal liability; (C)To provide for the safe and affordable distribution of medical cannabis to the Members; (D) To establish collective cultivation projects and to distribute the product of such projects; (E)To facilitate natural herbal remedies for chronically ill Californians with HIV,AIDS, chronic pain,chronic spasticity,glaucoma,arthritis,cancer,migraine,wasting syndrome, and/or such other conditions for which licensed medical physicians may recommend various remedies; (F)To collect,compile and conduct new research and a continuous record and history of herbal and alternative remedies and to make such records available for research,study and interpretative use; (G) To facilitate the allocation of the costs and benefits of this effort,including the allocation of reasonable compensation for services rendered amongst those associated with the corporation as authorized under California Health and Safety Code§11362.5, 11362.7,et seq.and the California Attorney General's Guidelines; and (H)To support the local charitable organizations,which serve those individuals who are, afflicted with the severe medical conditions for which medicinal cannabis is authorized by the State of California. (1) To promote public awareness of the issues relating to medical cannabis and to effect and influence legislative and regulatory agencies to promote laws,rules,regulations and policies beneficial to the Collective and its Members. 111.DUTIES AND OBLIGATIONS OF MEMBERSHIP Each Member shall be a resident of the state of California and a qualified medical cannabis patient pursuant to California Health and Safety Code Sections 11362.5 and 11362.7,et seq. Each Member shall carry on his/her person an original written recommendation by a licensed physician and shall produce such original written recommendation upon request by Collective Management.The Collective Management prior to the Member being granted membership rights will verify such recommendation.Such written recommendation shall be valid for a term of no more than twelve (12)months and upon expiration without renewal,membership rights will automatically terminate. No applicant for membership shall be granted membership status and rights until and unless such applicant executes this membership agreement and produces proof of valid California residency.Proof may be made via the production of a valid California driver's license,a valid California identification card or a valid US Passport The Collective shall maintain such proof of identification as part of its membership records.Such records shall not be disclosed or released to third parties by the Collective Management unless expressly authorized in writing by the member or by order of a court of competent jurisdiction or as required by the laws of the State of California. Each Member agrees that he/she will at all times abide by the terms and conditions of this membership agreement and that any breach of this agreement may result in the immediate termination of membership rights.The Collective Management at their sole discretion shall make such termination determination. Signature of Acceptance by Patient Page 2: (2 of 4) 35 . Each Member agrees that the distribution and/or resale of any medical cannabis product acquired from the Collective to any non-Member of the Collective shall result in immediate termination of Membership rights. It is understood by the Members herein that one or more Members may cultivate medical cannabis for the benefit of the Collective and that the costs and expenses associated with such cultivation and processing and the subsequent distribution to Members shall be borne by the Collective on a pro rata basis. The pro rata share of expenses and costs shall be calculated by the Collective Management to provide for the following: a.the costs of acquisition,cultivation,processing,transporting, distributing,and/or delivery of medical cannabis to the membership; b.for salary and other compensation for services rendered to the Collective by the Collective Management and employees; c.for costs associated with rent,utilities,or other fixed or variable expenses associated with the operation of any and all locations of the Collective; d.for costs and expenses advanced on behalf of the Collective that inure to the benefit of the Collective; e.for any such debt or obligation incurred by the Collective on its behalf and for its benefit; f.for a charitable fund to be distributed on a regular basis as directed by Collective Management to such charitable organizations that serve the needs of the local community and for research and development into the cause and cure for those ailments for which medicinal cannabis is authorized by the State of California;and g.reserve funds for potential legal(civil and/or criminal) liabilities of the Collective • and or the Collective Management or employees thereof. Members acknowledge and agree that his/her pro rata payment shall be made by the Member at each individual event of acquisition of such Members'medical cannabis requirement from the Collective and that each Member's individual requirements will vary according to his/her specific medical condition Each Member is advised to research marijuana as medicine,and to consult with his/her doctor as to dosage and frequency of medication.Members are responsible for following these guidelines.You are responsible to use and not to abuse medicine.If the Collective Management has any indication any Member is abusing their medicine the Collective Management will refuse service and will terminate that Members membership. Each Member understands that loitering on or around the Collective's location is prohibited by Cal.Penal Code section 647(e).Accordingly,each Member,as a condition of membership, agrees to leave their friends,even fellow patients,at home,and will not under any circumstance be on the premises of the Collective with friends waiting in a car. Any Member of law enforcement who is a bona fide patient must,disclose the fact that he/she is a Member of law enforcement prior to being granted membership rights. Otherwise,by executing this agreement and as a condition of membership,you promise, state and affirm,under penalty of perjury under the laws of the State of California,that you are not a Member of,affiliated with,nor employed by any law enforcement department, entity,or agency. The Collective Management reserves the right to refuse service to anybody at any time for any reason or no reason whatsoever. Signature of Acceptance by Patient Page 3: • (3 of 4) 36 • IV.DUTIES AND OBLIGATIONS OF THE COLLECTIVE MANAGEMENT The Collective Management shall be elected pursuant to the Bylaws of the Collective.The Collective Management shall include all officers and directors of the Collective. It shall be the duty and obligation of the Collective Management to operate in good faith the affairs,financial,charitable or otherwise,of the Collective and to keep and maintain in accordance with generally accepted accounting principles,adequate and correct accounts of the properties and transactions of the Collective,including accounts of its assets,liabilities, receipts and disbursements. Furthermore,it shall be the duty and obligation of the Collective Management to enforce, abide by and to defend the terms and conditions of this Membership agreement and the Bylaws of the Collective. The Collective Management shall be authorized to prosecute or defend any legal action in any court of proper jurisdiction on behalf of and for the benefit of the Collective.The Members agree that the Collective Management shall be entitled to reimbursement for costs and reasonable compensation for services rendered on behalf of the Collective. The Members agree that the Collective shall defend and hold harmless the Collective Management or its employees from any and all civil or criminal liability resulting from any action taken on behalf of or for the benefit of the Collective or for the results or consequences of any conduct undertaken during the course and scope of services rendered to the Collective,excepting intentional tortuous conduct resulting in harm to third persons or employees of the Collective. V.WAIVER OF LIABILITIES AND RIGHTS As a condition of membership,and/or by utilizing such medicine/herbal cannabis and related products as you may obtain,you,your heirs and those with you expressly and forever disclaim the warranty of merchantability and the warranty of fitness for particular purpose. Any product obtained at any facility of the Collective may be inspected prior to delivery, however since medical purity so requires,all transactions are final. The medicinal cannabis and related products are offered solely on an AS IS basis with no warranty whatsoever. Each Member understands that cannabis/marijuana may impair a person's ability to drive a vehicle or operate machinery. As a condition of membership,and/or by utilizing such medicine/herbal cannabis and related products as you may obtain,you,your heirs and those with you expressly and forever waive any and all claims now known,or discovered at any time in the future due to, related to or arising from your use,storage or handling of cannabis or any other product/herb/food/oil/concentrate you may obtain at our facility. As a condition of membership,and/or by utilizing such medicine/herbal cannabis and related products as you may obtain,you,your heirs and those with you expressly and forever release our collective,its Members,landlord,operators,managers,employees, agents,attorneys,growers,providers,wholesalers,officers,directors,from and against any and all lawsuits,alter-ego lawsuits,demands,charges or claims with reference to the strength,potency,purity,toxicity,appropriateness for your condition of any cannabis and related products you may obtain at our facility; further,that you knowingly waive the provisions of civil code section 1542 which states in pertinent part that"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,which if known by him must have materially affected his settlement with the debtor." . Signature of Acceptance by Patient Page 4: (4 of 4) 37 i —TRASH ENCLOSURE FRONT PARMG AREA SCHEDULE:COMPLETE BY SW ParkinMAFPROYED EPDXY Parking Parking FLOORING MATERIAL AND SCHEDULE: I. STOREFRONT. CERAMIC IRE FLOOR WITH 4 a VINYL WALL SASE IM'SCSLE SCHEIDU cCOMPLETE t FRONTCLOSET: CERAMIC TR.E FOORWITHRMNCOVE TILE Entrance saR�COMPLETE- 6 FT q 3 mmmmOI. ar4m95 Aw TaEnmmwmin&wcovr Tp SCHEDULE COMPLETE. 4. SIDE CLOSET:CERAMIC TILE FLOOR WITH R&W COVETILE Scale ENTRANCE Rece nist SCHEOUMCOMPIETE. & STORAGEROOM: QUARRYTIEFUM 80 s. SSE COMPLETE SELF DOOR S. WALKWAY:CERAMIC TILE FLOOR WITH 4IN.VIHYL WALL BASE SCHEDULE:COMPLETE. T. SRRL ROOM OURRYA nLE obby Area RcHFhrAP.COMPLETE By aw 176 s. 6 RACK CLOSET.SURRESWMT TILE FLOOR _ WITH 9&W COVE TILE SCHEDULE COMPLETE 6 Exterior Lights ORE FRONT R. OFFICE CERAM THE FLOOR WITH SAW COVE TILE 1. Left of Main rT .t. SCHEDULE COL94ZM �2 Entrance Door WATER(EATER 2. Over Parking ����.� PLASTIC Area 3-Over Side Glass Office Door 4-Rear Comer of Building Disp sary S.Rear Door .5 Interior Camera System • Overhead 1. In the corner viewing the 6. Rear of r entrance door. Property over 2. View the rece tion Window Patio Slab of . p Cement 3. Center of the dispensing room ATEREffATER 4. Compr behind Counter FIRE `"LP r� i 5. Other Comer behind Counter r Prepping Area Meeting SWROOM • 4 Exterior Camera System oom WALKK CLOSET 1. In the corner viewing the entrance 2 J. � door. 2. Viewing rear, back corridor of 4 S.t. building Chilled 3. Viewing Driveway & Parking Stora Roan 4. Viewing the Rear Entrance and Ro Rear of Building SHELF STEP TO aho Total Interior Area Measures: 1886 Square Feet Lights Outside Cameras Interior Cameras ���� • Notarized Landlord Statement I, Arthur Greenfield, certify, that I am the legal owner of the property located at: 1478 N. Palm Canyon Drive Palm Springs, California, 92262 I have also entered into a lease agreement for the above-mentioned property with the full knowledge, and acceptance, that the property will be used for a Legally Approved Collective Medicinal Marijuana Dispensary in the City of Palm Springs. / V/w Arthur Greenfield YDatV Public Notary Date Statgul California.County of Riverside.Or,__b� _�.` .beforeme. kchh WSMart n. Nota y Pub] . Personally appeared,-------- who proved to me on the basis of satisfactory ender" to be the person(s) whose name(s) sfare subscribed to the within instrument and acknowledged th me thatteishef hey executed the same in hi:dherAheir authorized wpacity(ies), and that by hislherAheir signatures)on the instrument the person(s),or the RICHARD W. MARTIN entity upon behalf of which the person(s)acted,executed the instrument l oettify Commission# 1993192 under PENALTY OF PERJURY under the IMOf the State- Califomialhatthe a -o NotaryPublic-California z is true and correct. --- z x. , tonagaing paragraph• z - Riverside County WITNESS myhmM and otliicialseal. ._„ ___,_-__...__.._..._! .__'-f My Comm.Expires Nov 2.2016 • Commercial Gross Lease 1.Names. This lea�se�is made by Landlord,Landlord and esWiI L Tenant. 2.Premises Rein Leased. Landlord is leasing to Tenant and Tenant is leasing from Landlordthe following premises: /�5'�?� Y Part of Building Only. Specifically,Tenant is leasing the��/� of the building. [ ] Shared Facilities.Tenant and Tenant's employees and customers may use the following additional facilities in common with other tenants,employees,and customers: [V(—Parking spaces: [ ] Restroom facilities: [ ] Storage areas: [ ] Hallways,stairways, and elevators: [ ] Conference rooms: [ ] Other: 3.Term of Lease. This lease begins on cTI)J9 201!fz and ends on SRN�— Aj 204C �d 4.Rent. Tenant will ay rent in advance on the �c7 day of each month. Tenant's first rent payment will be on 1 !S 20! in the amount of$ Tenant will pay rent of per month thereafter. [ Tenant will pay this rental amount for the entire term of the lease. [ ] Rent will increase each year,on the anniversary of the starting date in paragraph 3,as follows: 5. ion to Extend Lease [ First Option.Landlord grants Tenant the option to extend this lease for an additional � years. To exercise this option,Tenant must give Landlord written notice on or before / M/el f 2-046 .Tenant may exercise this option only if Tenant is in substantial compliance with the terms of this lease.Tenant will lease the premises on the same terms as in this lease except as follows: y� [ ] Second Option. If Tenant exercises the option granted above,Tenant will then have the option to extend this lease for 5 years beyond the first option period.To exercise this option,Tenant must give Landlord written notice on or before 117AW 34 2018 .Tenant may exercise this option only if Tenant is in substantial compliance with the terms of this lease. Tenant will lease the premises on the same terms as in this lease except as follows: 6.Security Deposit. Tenant has deposited$ with Landlord as security for Tenant's performance of this lease.Landlord will refund the full security deposit to Tenant within 14 days following the end of the lease if Wenant returns the premises to Landlord in good condition(except for reasonable wear and tear)and Tenant has paid andlord all sums due under this lease. Otherwise,Landlord may deduct any amounts required to place the premises in good condition and to pay for any money owed to Landlord under the lease. MISP Cm.nOMW Gran lean 6-12.1 OWo®V w .noimcom 7.Improvements by Landlord [ ] Before the lease term begins,Landlord(at Landlord's expense)will make the repairs and improvements listed in Attachment 1 to this contract. 0 ] Tenant accepts the premises in"as is"condition. Landlord need not provide any repairs or improvements before the lease term begins. 8. Improvements by Tenant. Tenant may make alterations and improvements to the premises after obtaining the Landlord's written consent,which will not be unreasonably withheld.At any time before this lease ends,Tenant may remove any of Tenant's alterations and improvements,as long as Tenant repairs any damage caused by attaching the items to or removing them from the premises. 9.Tenant's Use of Premises. Tenant will use the premises for the following business purposes: sr ,L 6-y6aut may also use the premises for purposes reasonably related to the main use. 10.Landlord's Represen ations. Landlord represents that: A. At the beginning of the lease term,the premises will be properly zoned for Tenant's stated use and will be in com- pliance with all applicable laws and regulations. B. The premises have not been used for the storage or disposal of any toxic or hazardous substance, and Landlord has received no notice from any governmental authority concerning removal of any toxic or hazardous substance from the property. 11 tilities and Services. Landlord will pay for the following utilities and services: [ ater [� ctre icity [ as �eat f Au'-Conditioning Any items not checked will be the responsibility of Tenant. 12.Maintenance and Repairs A. Landlord will maintain and make all necessary repairs to: (1)the roof,structural components,exterior walls,and interior common walls of the premises,and(2)the plumbing, electrical,heating,ventilating,and air-conditioning systems. B. Landlord will regularly clean and maintain(including snow removal)the parking areas,yards,common areas,and exterior of the building and remove all litter so that the premises will be kept in an attractive condition. C. Tenant will clean and maintain Tenant's portion of the building so that it will be kept in an attractive condition. O.Insarance A. Landlord will carry fire and extended coverage insurance on the building. B. Tenant will carry public liability insurance;this insurance will include Landlord as an insured party.The public liability coverage for personal injury will be in at least the following amounts: • $ !M 000 per occurrence. • $ in any one year. C. Landlord and Tenant release each other from any liability to the other for any property loss,property damage,or personal injury to the extent covered by insurance carried by the party suffering the loss,damage,or injury. a. Tenant will give Landlord a copy of all insurance policies that this lease requires Tenant to obtain. 14.Taxes A. Landlord will pay all real property taxes levied and assessed against the premises. B. Tenant will pay all personal property taxes levied and assessed against Tenant's personal property. 15. Subletting and Assignment. Tenant will not assign this lease or sublet any part of the premises without the writ- ten consent of Landlord.Landlord will not unreasonably withhold such consent, 16.Damage to Premises A. If the premises are damaged through fire or other cause not the fault of Tenant,Tenant will owe no rent for any period during which Tenant is substantially deprived of the use of the premises. B. If Tenant is substantially deprived of the use of the premises for more than 90 days because of such damage,Ten- ant may terminate this lease by delivering written notice of termination to Landlord. 17.Notice of Default. Before starting a legal action to recover possession of the premises based on Tenant's default, Landlord will notify Tenant in writing of the default.Landlord will take legal action only if Tenant does not correct the default within ten days after written notice is given or mailed to Tenant. 18.Quiet Enjoyment. As long as Tenant is not in default under the terms of this lease,Tenant will have the right to occupy the premises peacefully and without interference. 19.Eminent Domain. This lease will become void if any part of the leased premises or the building in which the leased premises are located are taken by eminent domain.Tenant has the right to receive and keep any amount of money that the agency taking the premises by eminent domain pays for the value of Tenant's lease,its loss of busi- ness, and for moving and relocation expenses. 20.Holding Over. If Tenant remains in possession after this lease ends,the continuing tenancy will be from month to month. 21.Disputes [ j Litigation. If a dispute arises,either party may take the matter to court. • [t-fediation and Possible Litigation. If a dispute arises,the parties will try in good faith to settle it through media- tion conducted by [da mediator to be mutually selected. The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute.If the dispute is not resolved within 30 day!^it is referred to the mediator,either party may take the matter to court. [4 Mediation and Possible Arbitration.If a dispute arises,the parties will try in good faith to settle it through media- tion conducted by a mediator to be mutually selected. The parties will share the costs of the mediator equally.Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator,it will be arbitrated by [WJ an arbitrator to be mutually selected. Judgment on the arbitration award may be entered in any court that has jurisdiction over the matter.Costs of arbitra- tion,including lawyers'fees,will be allocated by the arbitrator. •Landlord need not participate in mediation or arbitration of a dispute unless Tenant has paid the rent called for by this lease or has placed any unpaid rent in escrow with an agreed upon mediator or arbitrator. 22.Additional Agreements. Landlord and Tenant additionally agree that: i6e 407X r1440W 70 Ao�,bluf- MLI O1VOde!t- AV eogR oWJ /fie L BP CmoeuH G1 Lax&12.2 23.Entire Agreement. This is the entire agreement between the parties.It replaces and supersedes any and all oral agreements between the parties, as well as any prior writings. •24. Successors and Assignees. This lease binds and benefits the heirs,successors,and assignees of the parties. 25.Notices. All notices must be in writing.A notice may be delivered to a party at the address that follows a parry's signature or to a new address that a party designates in writing.A notice may be delivered- (1) in person (2)by certified mail,or (3)by overnight courier. 26. Governing L aw. This lease will be governed by and construed in accordance with the laws of the state of 6 27. Counterparts. The parties may sign several identical counterparts of this lease.Any fully signed counterpart shall be treated as an original. 28.Modification. This lease may be modified only by a writing signed by the party against whom such modification is sought to be enforced. 29.Waiver. If one party waives any term or provision of this lease at any time,that waiver will be effective only for the specific instance and specific purpose for which the waiver was given.If either parry fails to exercise or delays exercising any of its rights or remedies under this lease,that party retains the right to enforce that term or provision at a later time. 30. Severability. If any court determines that any provision of this lease is invalid or unenforceable,any invalidity or unenforceability will affect only that provision and will not make any other provision of this lease invalid or unen- forceable,and shall be modified,amended,or limited only to the extent necessary to render it valid and enforceable. Dated: ny r— —7 2U11 f LANDLORD / TENANT 04.41157!//SC IXIV4 Wrj"W''me Name of Business: -7A �U/S�t/� Name of Business: Q 0,4 at 9 PVe4l QIU&t /SST$ ZW Pr �45 ( 92u2 By. A By- Printed Name: Y N GC `C� ted Name: E?�doszda AO d4dkl Title: Du/I �'e— Title: G � � Address: 9$6 Al 42y d ®R- Address: JZ r- ecle- (Y]GUARANTOR By signing this lease,I personally guarantee the performance of all financial obligations of under this lease. ,Dated: Printed Name:ctLY.4/ /4 a/wEZ 4l� Title: Address: 7SZ ,Ll ,L'oeex 3669724 ARTICLES OF INCORPORATION FILED C.v I Sew tslry of state ` State of Califumia (+ The name of this corporation is JADE ORAGNICS CORPORATION 2 3 Mill jC� 11 A. This corporation is a nonprofit MUTUAL BENEFIT CORPORATION organized under the Nonprofit Mutual Benefit Corporation Law. The purpose of this corporation is to engage in any lawful act or activity,other than credit union business,for which a corporation may be organized under such law. B. The specific purpose of this corporation is to facilitate or coordinate medical marijuana transactions between patient members and/or primary caregiver members. III The name and address in the State of California of this corporation's initial agent for service of process Name Venus Louviere Address 4180 N.Sierra Way#479 City San Bernardino State CAUFORNIA Zip 92407-3835 • IV Notwithstanding any of the above statements of purpose and powers,this corporation shall not,except to an insubstantial degree,engage in any activities or exercise any powers that are not in furtherance of the specific purpose of this corporation. Initial Street Address of Corporation 4027 Holt Ave. Montclair,CA 91763 Initial Mailing Address of Corporation 4180 N.Sierra Way Suite#479 San Bernardino,CA 92407-3835 Venus Louviere-Incorporator MINUTES OF BOARD OF DIRECTORS JADE ORGANICS CORPORATION . MEETING OF MAY 30, 2014 A MEETNG OF THE BOARD OF DIERCTORS OF WAS HELD ON MAY 30, 2014 AT 11:35 A.M. WHEREAS, the Articles of Incorporation for Jade Organics Corporation, the non- profit mutual benefit corporation organized an existing as a medical marijuana collective in accordance with the laws of the State of California were filed with the Secretary of State of the State of California on April 23, 2014 and; WHEREAS, on May 30, 2014 the organizational meeting of the Board of Directors was held and Edward J. Dietrich and Eduardo Hernandez Rivera were appointed as directors of the corporation. NOW THEREFORE, the corporation acting by and through its directors, Edward J. Dietrich and Eduardo Hernandez Rivera do hereby ratify and approve the following actions of the corporation and the Board of Directors of the corporation: 1. The appointment of Edward J. Dietrich and Eduardo Hernandez Rivera as directors of the corporation. 2. The directors of the corporation, Edward J. Dietrich and Eduardo . Hernandez, were authorized to make application to the City of Palm Springs for permits and/or approvals for the operation of the medical cannabis collective in the City of Palm Springs and to sign, on behalf of the corporation all applications, forms, and/or documents required to make said application(s). 3. Edward J. Dietrich and Eduardo Hernandez Rivera acting as Directors were authorized to enter into the lease agreement for the premises located at 1478 N. Palm Canyon Drive, Palm Springs, California for said property to be used as the location of the medical marijuana collective/dispensary subject to approvals by the City of Palm Springs. Dated: May 30, 2014 Dated: May 30, 2014 Jade Organics Corporation Jade Organics Corporation Edward J. Diet i Director Eduardnandez Rivera s ' State of California LN p . Secretary of State OP� Statement of Information EY77001 (Domestic Nonprofit,Credit Union and Consumer Cooperative Corporations) Filing Fee: $20.00.If this is an amendment, see instructions. FILED IMPORTANT—READ INSTRUCTIONS BEFORE COMPLETING THIS FORM In the office of the Secretary of State 1. CORPORATE NAME of the State of California JADE ORAGNICS CORPORATION JUN-05 2014 2. CALIFORNIA CORPORATE NUMBER C3669724 This space for Faeuj use Only Complete Principal Office Address (Do not abbreviate the name of the city.Item 3 Cannot be a P.O.Box.) 3. STREET ADDRESS OF PRINCIPAL OFFICE IN CALIFORNIA,IF ANY CITY STATE ZIP CODE 2034 CHIA RD,PALM SPRINGS,CA 92262 4. MAILING ADDRESS OF THE CORPORATION CRY STATE ZIP CODE EDWARD J.DIETRICH 2O34 CHIA RD,PALM SPRINGS,CA 92262 Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific officer may be added;however,the preprinted tides on this forth must not be altered.) 5. CHIEF EXECUTIVE OFFICER/ ADDRESS CITY STATE LP CODE EDWARD J DIETRICH 2O34 CHIA RD,PALM SPRINGS,CA 92262 6. SECRETARY ADDRESS CITY STATE ZIP CODE EDVARDO HERNANDEZ RIVERA 752 N FELICES CIRCLE E.UNIT M 205,PALM SPRINGS,CA 92262 7. CHIEF FINANCIAL OFFICER! ADDRESS CRY STATE ZIP CODE EDVARDO HERNANDEZ RIVERA 752 N FELICES CIRCLE E.UNIT M 205,PALM SPRINGS,CA 92262 Agent for Service of Process If the agent is an individual,the agent must reside in California and Item 9 must be completed with a California street address, a P.O. Box address is not acceptable. If the agent is another corporation,the agent must have on file with the Cafifomia Secretary of State a certificate pursuant to California Corporations Code section 1505 and Item 9 must be left blank. 8. NAME OF AGENT FOR SERVICE OF PROCESS :M r:::.�=J e '.:'r:a z ;p5._ r ,::,,.: :�r• EDWARD J DIETRICH 9. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA,IF AN INDIVIDUAL CITY STATE ZIP CODE 2034 CHIA RD,PALMSPRINGS,CA 92262 Common Interest Developments 10.❑ Check here if the corporation is an association famed to manage a common Interest development under the DavisStrfing Common Interest Development Act, (Cadfomia Civil Code section 4000, at seq.) or under the Commercial and Industrial Common Interest Development Act, (California CMI Code section 6500,et seq.). The corporation must file a Statement by Common Interest Development Association(Form SI-CID)as required by California Civil Code sections 5405(a)and 6760(a). Please see instructions on the reverse side of this form. 11. THE INFORMATION CONTAINED HEREIN 15 TRUE AND CORRECT. 06/05/2014 EDWARD J DIETRICH CEO DATE TYPEIPRINr NAME OF PERSON COMPLETING FORM TIRE SIGNATURE SI-100(REV 01/2014) APPROVED BY SECRETARY OF STATE DISPLAYc0NSPidlMMY AT PLACE OF MMMSFORWMH ISMJW . 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Inaccurate or incomplete applications may be rejecte( . TO THE APPLICANT: Your cooperation in completing this application and supplying the information requested will expedite City review of your application pursuant to local procedures. Applications submitted will not be considered complete until all submittal requirements are met. Please submit this completed application and ten (10)copies, including all attachments and related material to the Office of the City Clerk at 3200 East Tahquitz Canyon Way. Palm Springs,CA 92262 Please complete the following in blue or black ink. If additional space is needed, you may attach white single-sided 8%x 11 paper using either MS Word or text-readable PDF format: /1) Address of the MCCC: i`f j8 /r/• Plot �9dya�/�10 T-0p [;at. fZ7,6Z • "Please note that site location is prohibited within 500 feet of a school, public playground, park, residentiaW zoned property, child or day care facility, youth center or religious institution. It is also prohibited within 1,000 feet of any other collective. The MCCC location is prohibited on properties in which the primary use of the property is commercial/retail. 2) MCCC site information: r Gross Square Footage of proposed business space: lgecl' 'Y'r Assessor's Parcel # Zone: SectionfTownship/Range General Plan Hours of Operation '4iw to If the MCCC is in a Multi-Tenant Building, please list other Businesses: Business Name Business Type 1. 2. • 3. 987441.1 4. • 5. 6. 7. 3) The name and contact information of the applicant: *Please note that in the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a MCCC will be operated on his/her property. Name Address Email �a�alzo .7- E7�e{,e�¢ls' �03� G�6/%g /�'IJ P�'Ka�r�1T®lerizcfl��@C7�.u7! Cmy Residential # Business # Cell # Facsimile# If the Applicant is leasing the MCCC, please list the Property Owner's contact information: • *Please note that in the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a MCCC will be operated on his/her property. 4)The name and contact information of the Property Owner. Property Owner's Name Property Owner's Address Properly Owner's Email 5503 j a`4AW-0 CkAW (fie. aqr � 44 t,C&..,. Residential# Business# Cell# Facsimile# (ry1o) 322- 6)The names and contact information of every person(s)who has a financial interest in the MCCC: Name Telephone# Address Email 1. Epr.//.42I� S. Dr /tro_K (7. �4of�CFCit rd. J Lena+ 2. EDr/oax> IhUW7e-9 M44 *^- f4Pa3 7rZAIlor f lePr• Gn. IV-zor- • 4i�leavay n:eur �' 3. G-.noiL.CoK 4. 987441.1 5. • 6. 7. 6) The names and contact information of every principal officer, director,and/or operator: Name Telephonwe# Address/ Email V P 2. AWAaco t004WO" R~ M.Z;L- f47o3 7S7 AlCcr kIdW Qe� /tu Zoe hwte2mey++av al Ft..aar� 3. 4. 5. 6. 7. 7)The name and contact information of any person who is managing or responsible for the MCCC activities: Name Telephone# Address /I Email 1.&W 2. tiayfgua.q�xacJr .;.' ElNd1L. 3. 4. 5. 6, 7. 987441.1 • 8) The name and contact information of the on-site community relations or staff person or other representative to whom one can provide notice if there are operating problems associated with the MCCC: Name Telephone# Address Email 1. &CI,420b W ,40,via4 Aze),oL7ti 517a.3 kdodwayjwauo � �1 fS/ •(x eer O e. -W�-ot?-Zos' CBW. 2. 3. 9) An estimate of the size of the group of primary caregivers and/or qualified patients who will be served by the MCCC: # of Primary Caregivers_ # of Qualified Patients 260 Will delivery service be provided? Y N If yes, please describe the extent of the delivery service: • 10) Will cannabis be cultivated on site? Y If no, or if less than 100% of the cannabis will be grown on site, please provide the name and contact information of the person(s)who will be cultivating the cannabis: Name Telephone# Address Email Member /n N 1. EAd4ecx� fE RVW4 AGTrdfa�ay/NerJr , 96-1- oV 63c Xiea Ce /V 2. ZOO Da,csu, sonzu���- 917,CZ 3. 4. 5. 6. . 7. 987441.1 11) The names and addresses of any employees, if any, and a statement as to whether such person(s) has or have been convicted of a crime(s), the nature of such offense(s), and the sentence(s) received for such conviction(s). Name Address Offense Type (if any) Sentence 2. 3. 4. r 5. 6. 7. The following information shall be submitted on one sheet of white paper no less than 11x17 inches and no larger than 24x36 inches. The information must be legible and reproducible. In addition to the paper document, an electronic file in PDF format may be submitted on compact disc (CO). • 1) An accurate site plan and floor plan of the premises that dearly labels all the use of areas on the premises, including (1) doors (2) entrances (3) windows (4) use of each area, including (5) storage (6) cultivation areas (7) exterior lighting fixtures (8) security cameras (9) restrooms (10) signage and (11) parking (including other tenant spaces if the MCCC is proposed for a multi-tenant building site). 2) Photographs of the existing site that show the front, back and sides of the building, lighting, parking, etc. 3) A security plan that includes the following: a. Security cameras that have been installed and maintained in good working condition, and used in an on-going manner with at least 240 continuous hours of digitally recorded documentation in a format approved by the City Manager. Please provide the number of security cameras and list the areas covered by each. The areas to be covered by the security cameras include, but are not limited to (1) the storage areas (2) cultivation areas (3) all doors (4) all windows, and (5) any other areas as determined by the City Manager. b. A reliable and commercial alarm system that is operated and monitored by a lawfully operating security company or alarm business. Please provide the name and contact information of the security camera monitoring company. • C. Properly illuminated windows and doors that are in compliance with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etc. (Applicants may be required to secure the necessary approvals and permits.) 987441.1 4) A copy of the deed, lease, contract, or other document governing the terms and conditions of occupancy of the MCCC. 5) Suitable evidence of proof of lawful presence or residence in the city of Palm Springs (examples of this may include a copy of the applicant's current drivers license or a current copy of a utility bill). 6) A notarized acknowledgement from the owner of the property, if the applicant is not the owner, that a MCCC will be operated on his/her property. 7) A copy of the MCCC's articles of incorporation or articles of organization. 8) Evidence of authorization to do business as a non-profit within the State. CERTIFICATIONS AND DECLARATIONS 1) 1 declare under penalty of perjury, under the laws of the State of California, that all statements contained in this application and any accompanying documents is true and correct, with full knowledge that all statements made in this application are subject to investigation and that any false or dishonest answer to any question ma a grounds for denial of the application or subsequent rev tion of e p i . Signature: Date: e/ Signatu Date: 2) expressly authorize the City Manager of the City of Palm Springs to seek verification of the information contained within this application, including but not limited to, a comprehensive review of my background. I understand that this review may include verification of my personal social security number, credit reports, current and previous residences, employment history, education background, civil and criminal history records from any criminal justice agency in any or all federal, state, juris ViC o driving rec ds, birth records, and any other public records. Signature Date: Signat Date: 3) 1 have received, read, reviewed, and understand V11of the requirements of the City of Palm Springs regarding the operation and management of medical cannabis cooperatives and collectives in the City, including without limitation the provisions of Chapters 3.35 and 5.35 and Section 93.23.15 of the Palm Springs Municipal Code, and I acknowledge that I am required to fully comply with these provisions. I also acknowledge that failure to comply with any of these requirements may subject me to administrative fines, criminal sanctions, and other penalties as provided in the Palm Springs Municipal Code, including suspension or termination of my permit to operate a med" I canna ' c atiy or Ilective in the City. Signature: Date: Signature: > Date: 98744 .l G c 116414 L lvh f ea ACKNOWLEDGMENT State of California County of `Riverside On before me, Richard W. Martin Notary Public personalty appeared G—D yR 4'®Cl 1+ - RI V>✓IZA- A E04 AAD T. DI who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shetthey executed the same in his/herttheir authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. RICHARD W.MARTIN WITNESS my hand and official seal. Commission# 1989192 i e s Notary Public-California Z Z Riverside County D /, . My Comm.Expires Nov 2.2016 Signatu�Gf/ (Seal) • Operations Covenant Jade Organics Corporation accepts all responsibility and liability with respect to medical cannabis, or the activities of our MCCC. Jade Organics Corporation also agrees to indemnify the city of Palm Springs. Jade Organics Corporation will carry insurance in the amounts and the types that are acceptable to the City Manager. Jade Organics Corporation will name the City of Palm Springs as an additional insured; Jade Organics Corporation agrees to defend at its sole expense, any action against the City, its agents. Officers and employees because of the issues of such approval; Jade Organics Corporation agrees to reimburse the City for any attorney fees that the City may be required to pay as a result of such action. The City may, at its sole discretion, participate at its expense in the defense of any such action, but such participation shall not relieve Jade Organics Corporation of its obligation, hereunder ardo H ez. River , Secretary/Treasurer Date Jade Organics Corporation MEDICAL MARIJUANA WAIVER HEALTH INFORMATION PRIVACY I am aware of my right to privacy of my health related information. I hereby authorize the use and disclosure of the medical information contained in the medical recommendation of my physician for medical marijuana and confirmation with the doctor by Jade Organics Corporation, from time to time. I also understand a copy of my record will be kept by Jade Organics Corporation on file. I understand that Jade Organics Corporation policy on privacy is to not disclose the name or identity of any patient other than in the course of confirmation of the recommendation. I understand that I may have extra protection under California State and Federal laws as to my information. However, I expressly authorize the use and storage of this information in accordance herewith. I understand I may revoke my authorization in writing at any time and that Jade Organics Corporation will then maintain a record. I understand I am under no obligation to sign this form; however I realize that in order to ask Jade Organics Corporation to provide me access to medical marijuana and at my own personal request for instance, I grant the right to is the • information as described herein. I understand I have a right to inspect or copy this authorization, and my file with Jade Organics Corporation. I understand that there is the possibility of re-disclosure of information in the course of confirming my recommendation. This authorization shall terminate on the termination of my medical recommendation unless terminated sooner in writing by me. I have had an opportunity to review this form and I confirm it accurately reflects my wishes. Signature of Patients Approval: Date: • Jade Organics Corporation MEMBERSHIP APPLICATION I have read and agree to the above rules and conditions of Membership and hereby apply for Membership of this Collective. I certify under penalty of perjury under the laws of the State of California, that I am a resident of the State of California and have been diagnosed with a serious illness for which cannabis provides relief and that I have received a recommendation or an approval from my licensed California physician to use cannabis medicinally. I authorize the Collective to contact my physician and I authorize my physician to verify my recommendation to the Collective. I agree that I will consistently rely upon the Collective as the exclusive source of my medicinal cannabis. I understand that so long as I comply with the above rules and conditions of Membership,my Membership shall remain in effect until the expiration of my recommendation or until I revoke my Membership in writing by certified mail, return receipt requested,whichever comes first • Signature: Date: Print Name: Address: Apt #: City: State: Zip Code: E-mail: Phone: Cell #: [for internal office use only] Recommendation verified by: Date: Membership Approved by: Date: • Membership/Verification Expiration Date: Med. ID # ORIGINAL JADE ORGANICS CORPORATION MEMBERSHIP AGREEMENT • VOLUNTARY CULTIVATION MEMBERSHIP PROGRAM JADE ORGANICS CORPORATION understands that, for one reason or another, not all of it's members can participate in the cultivation of the Collective's Medical Marijuana. Therefore, O'DAM does not require its members to participate in the cultivation process. However, we do encourage and request that all Collective members participate in the cultivation process, if they so desire. We do ask that all members with special skills, extra time, knowledge and/or resources that can assist the Collective's cultivation program, get involved and assist in helping us make the entire Collective process better. Please fill in below: a. I would/would not (Circle One) like to participate in the cultivation of our Collective's Medical Marijuana process. b. If you wish to participate in the cultivation process, do you have any special skills , time, knowledge and/or resources that you would be willing to share and contribute • Executed on this date: _/_/ in the County of Riverside, State of California. Print Name: Signature: Optional Contact Information: Would you like to receive news, promotions, specials, discounts...? Member Phone Number: Member email: Authorized Collective Agent Signature: Date: ORIGINAL JADE ORGANICS CORPORATION MEMBERSHIP AGREEMENT I, .• a resident of the County of in the state of California,hereby state that as a qualified patient/caregiver,who has received a valid physician's recommendation for the use of medical marijuana in accordance with the California Health and Safety Code:11362.5 ("Proposition 215"or"Compassionate Use Act of 1996"),and Article 2.5,commencing with Section 11362.7 to Chapter 6 of Division 10 of the California Health and Safety Code("SB420"), wish to voluntarily join,and become a member of the O'DAM (the Collective"),and agree to follow the terms and conditions as set forth in this agreement 1. 1 hereby declare under penalty of laws of the State of California,that a medical doctor has recommended and approved,my use of medical marijuana for an illness for which cannabis provides relief in accordance with the Compassionate Use Act of 1996 and SB 420. Patient/Member Initials: Collective Member Initials: 2. As a member,I hereby appoint and designate the Collective,and their representatives,as any true and lawful agents for the limited purpose of assisting me in obtaining my legally prescribed medical marijuana.I understand that this means that the Collective will be required to possess,purchase,cultivate,transport and/or distribute medical marijuana exclusively for member qualifying patients or primary caregivers.Therefore,I grant the Collective's management,and other fellow members the limited authority to engage in the afor-mentioned tasks.I further agree, and authorize,the Collective and it's members,to use such information relating to my status as a qualified patient as use of such information reasonably necessary for providing my medical marijuana for my medical benefit as a qualified patient Patient/Member Initials: Collective Member Initials: 3. 1 authorize the Collective to create and/or assign agency rights in it's own name for the purpose of growing marijuana for my personal medical reasons,as well as for the medical benefit of other members of the Collective. • Patient/Member Initials: Collective Member Initials: 4. As a member,I understand that the Collective has other members who have joined and agreed to uphold the Collective's Rules and Spirit by,among other things,signing a similar membership agreement I hereby authorize the Collective to process the medical marijuana as described under this agreement jointly with other members of the Collective under similar agreements.I agree that the medical marijuana possessed by the Collective is at any time,the Collective property of every patient who has joined the Collective,subject to the Collective's rules and guidelines established by and for the Collective for handling marijuana for the benefit of member patients. Patient/Member Initials: Collective Member Initials: S. I agree to pay the Collective's all personal out-of-pocket expenses and reasonable compensation for services related to providing medical marijuana to me and other member patients. Patient/Member Initials: Collective Member Initials: 6. 1 hereby verify that I am a resident of California,and my personal marijuana will not be taken out of the State of California.I further verify and agree that medical marijuana shall not be shared,sold,bartered,traded,exchanged or delivered by any means to any other person for medical,or any other reasons.I understand that diversion of medical marijuana for non-medical purposes and/or to other individuals shall be grounds for the immediate termination of my membership.I also agree to request amounts of medicine strictly for my medical personal use at reasonably necessary intervals. Patient/Member Initials: Collective Member Initials: • 7. 1 agree to possess my original,or true and correct copy,of my Physicians recommendation,when I am on the property used by,or belonging to,the Collective.I understand that my failing to do so may result in the termination of my ORIGINAL JADE ORGANICS CORPORATION MEMBERSHIP AGREEMENT membership and that verbal recommendations from physicians will not be accepted.I hereby agree to all future • changes of the Collective's policies as the laws relating to access to medical marijuana might change.I further agree to provide the Collective with all changes relating to my contact information,as well as patient status as a qualified patient Patient/Member Initials: Collective Member Initials: 8. I understand,and agree,that adherence to the rules of the Collective,is the collective responsibility of all patient members,including myself.I agree that any violation of the terms of this agreement,or any other Collective member rules are grounds for immediate termination of my membership. Patient/Member Initials: Collective Member Initials: 9. 1 understand and agree that while medical cannabis has been authorized by both the people of the State of California and Legislature,and consistently upheld by all California courts,the Federal Government persists in enforcing portions of the Controlled Substance Act,which makes the possession and use of medical cannabis a Federal crime.I hereby certify that I have been advised by an authorized agent of the Collective,that possession and use of marijuana for medical purposes might be grounds for prosecution under Federal law. Patient/Member Initials: Collective Member Initials: 10. 1 further agree and authorize the Collective to use my documents to verify my membership.I am aware that the City of Palm Springs may require proof of membership from time to time,and may request my records for verification purposes.The Collective may use my records for any legal purpose deem necessary to protect our Collective,to protect my rights to use alternative medicine and to protect this agreement Patient/Member Initials: Collective Member Initials: 11. 1 have read over the entire Collective Membership Application and Agreement,and certify that an authorized agent of the Collective has personally gone over,and explained fully to me each paragraph of this agreement and that I have been provided a copy of this agreement Patient/Member Initials: Collective Member Initials: 12. 1 hereby affirm that I have read,understand and agree to the terms of this OVAM original agreement Further,I declare under the penalty of perjury,that the above is true and correct to the best of my knowledge. Patient/Member Initials: Executed on this date: _/_/ in the County of Riverside, State of California. Print Name: Signature: • Appendix 1 Jade Organics Corporation will implement Policies and Procedures to put above Standard procedures for: 1. Sanitation 2. Cleanliness 3. Disposal of Controlled Product 4. Health Issues S. Training 6. Compliance 7. OSHA Rules and Regulations We will also incorporate all the paperwork requested by the City of Palm Springs,the State of California and our legal representative. Many examples of this type of documentation are included in the Business Plan for your viewing. Appendix 2 Jade Organics Corporation will implement Policies and Procedures with regards to Bookkeeping Procedures.We will create: • 1. Inventory Sheets 2. Sign In Sheets 3. Sign Up Sheets 4. Attendance Sheets S. A Bookkeeping System for our CPA to work with 6. Run Both,Electronic and Printed Copies of everything required by law. 7. We'll create a true inventory to control our Sales, Purchases,Tax Records, and Expenses,so as to have complete control of the product and finances of the business. Many of these sheets are already created and included in the Business Plan being submitted for your review.A complete bookkeeping system is now being created for this venture • Jade Organics Corporation has contracted Desert Alarm as its Alarm Company to handle security. Enclosed, you will find the information needed for confirmation of such service. Desert Alarm Inc 73-168 Hwy 111 Palm Desert, CA. 92260 Phone (760) 322 1562 Office Phone (760) 864 6455 Toll Free (800) 726 1779 Desert Alarm is an authorized dealer for a variety of brand • name security alarm system products. They monitor and service most major brand names. EF ohm Front Door Front Door Light Side View Rear Door View North Door View South/ North View • �J West Front Door Front Door Light Side View y: North Door Light North Wall Vie South View Light