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HomeMy WebLinkAbout2020 Cali Direct City of SLO Cannabis Application Mobile Delivery (1)Nathaniel Heintz-Hargitt 805direct@gmail.com 707)953-5242 CALI DIRECT, LLC Cannabis Business Operators Permit Application Retail Non-Storefront City of San Luis Obispo February 15, 2020 1 PPLICATION 2 3 APPLICATION 4 PPLICATION 5 PPLICATION 6 APPLICATION 7 8 CALI DIRECT, LLC TABLE OF CONTENTS APPLICATION REQUIREMENTS .............................................................. 10 City Commercial Cannabis Permit Requirements ............................................................ 10 Commercial Cannabis Operator Permit and State Licenses Required Grounds for Automatic Disqualification .............................................................................. 10 OWNERSHIP .......................................................................................................12 Principals and Share Ownership ......................................................................................... 12 Legal Formation Documents ................................................................................................ 14 Federal Identification Number ............................................................................................... 15 COMMUNITY BENEFITS .............................................................................. 16 Employment ....................................................................................................................................... 16 Community Support ............................................................................................................... 16 EQUITY AND LABOR ................................................................................... 19 Equity Ownership ................................................................................................................... 19 Competitive Compensation and Wages .............................................................................. 19 FINANCIAL INVESTMENT ........................................................................... 20 Capitalization .................................................................................................................................... 20 Financial Capacity ………………………………………………………………………………………………………………….20 Start Up Costs ......................................................................................................................... 20 30 Day Net Agreement ……………………………………………………………………………………………………. 21 Construction Budget ………………………………………………………………………………………………………… 21 Site Improvements and Investment ....................................................................................... 21 BUSNIESS OPERATIONS PLAN ................................................................. 24 Location Information… ............................................................................................................ 24 Compliance Statement …………………………………………………………………….. 25 Property Ownership… .............................................................................................................. 25 Hours of Operation ................................................................................................................... 25 Transportation Procedures… ................................................................................................. 26 Cash Handling ………………………………………………………………………………..26 9 Products and Services……………………………………………………………………………………………………… 27 Community Relations Plan………………………………………………………………………………………………….29 State Licenses………………………………………………………………………………………………………………………29 Proof of Corporate Status…………………………………………………………………………………………………….30 Tax Compliance…………………………………………………………………………………………………………………….31 Lighting Plan………………………………………………………………………………………………………………………….32 Insurance…………………………………………………………………………………………………………………………… ..32 Education Plan…………………………………………………………………………………………………………………… .33 Security Plan………………………………………………………………………………………………………………………...34 Site Plans and Floor Plans…………………………………………………………………………………………………..39 Water Efficiency…………………………………………………………………………………………………………………… 44 Energy Efficiency………………………………………………………………………………………………………………… 44 Odor Control………………………………………………………………………………………………………………………… 46 Hazardous Material Plan………………………………………………………………………………………………………47 APPENDICIES A. Operating Agreement....................................................................................................................... .49 B. Community Development – Nathaniel Heintz-Hargitt.......................................................... . 62 C. Community Development – Kim Lancashire..................................................................................64 D. EcoSlo Beach Clean Up Receipts ................................................................................................. 66 E. Tax Returns – Nathaniel Heintz-Hargitt ....................................................................................... .70 F. Tax Returns – Logan Baumgartner ..............................................................................................137 G. Tax Returns – Adam Gong .......................................................................................................... .147 H. Financial Documentation and Loan Agreement - John Khallaghi… ....................................... .183 I. Financial Documentation and Loan Agreement – Fariba Khallaghi.....................................187 J. Cali Direct Budget 2020 ................................................................................................................ 191 K. 30 Day Net Agreement ........................................................................................................193 L. DJ Designs Build Out Estimate......................................................................................................196 M. Landscaping Plan ........................................................................................................................... 198 N. Cali Direct Lease Agreement..........................................................................................................208 O. Transportation and Delivery Procedures.........................................................................................230 P. Cali Direct Standard Operating Procedures.................................................................................256 Q. Lighting Plan........................................................................................................................263 R. Cali Direct Letter of insurance Eligibility...............................................................................265 S. Sentinel Security Solutions Invoices ....................................................................................267 T. Bureau Of Cannabis Control Premises Diagram..................................................................282 U. Specifications of Cali Direct Odor Mitigation Equipment......................................................284 APPLICATION APPLICATION REQUIREMENTS CITY COMMERCIAL CANNABIS PERMIT REQUIRED In accordance with SLOMC 9.10.040(A), Cali Direct, LLC will not engage in Commercial Cannabis Activity or have an ownership interest in, operate, or manage, a Commercial Cannabis Business without obtaining and continuously maintaining the Commercial Cannabis Business Permit pursuant to this chapter. COMMERCIALCANNABIS OPERATOR PERMITAND STATELICENSE(S) REQUIRED In accordance with SLOMC 9.I 0.040(B), Cali Direct, LLC will not own, conduct, manage, operate, engage or participate in , work or volunteer at a Commercial Cannabis Activity or Commercial Cannabis Business that does not have a valid Permit issued pursuant to this chapter and other City permits or licenses required by this code, in addition to the appropriate license required by state law to conduct the Commercial Cannabis Activity. Any commercial Cannabis Business or Commercial Cannabis Activity conducted without all required City and state permits and licenses is prohibited and unlawful and is hereby declared to be a public nuisance. GROUNDS FOR AUTOMATIC DISQUALIFICATION In accordance with SLOMC 9.10.060(C)(3), Cali Direct will ensure that: None of its officers, directors or owners, or any person listed in the application; has been convicted of any felony or offense referenced in Business and Professions Code Section 2 6057; or Has been subject to fines, penalties, or sanctions for cultivation or production of a controlled substance on public or private lands or for unauthorized commercial cannabis activities as specified in Business and Professions code section 26057; or Has had a commercial cannabis license suspended or revoked by the State of California or any city or county in any state, within the three years preceding the date the application is filed, or is ineligible to apply for a state cannabis license. 10 In accordance with SLOMC 9.10.060(C)(5), Cali Direct, LLC will ensure that no person listed on the application is a licensed physician making patient recommendations for medical or medicinal cannabis pursuant to state law. In accordance with SLOMC 9 .10.060(C)(6), Cali Direct, LLC will ensure that no person listed in the application is less than twenty-one (21) years of age. 11 OWNERSHIP Cali Direct's goal is to establish a commercial cannabis business in the City of San Luis Obispo, focusing on operating a retail non-storefront (mobile delivery) working with local cannabis and non- cannabis suppliers, local distributors, local cultivators and local employees. The objective is to provides high quality lab tested products to clients in San Luis Obispo County at a cos t effective price, while supporting local businesses and the community. Cali Direct is committed to providing high quality affordable cannabis and CBD products sourced by locals for locals, and aim s to add value to the community by providing educational & charitable services along with exceptional products." In order to stay in compliance with all local and state regulations Cali Direct will act in accordance with all local and state regulations. The mobile delivery service will provide third party lab tested cannabis and CBD products to clients over the age of 21 with a valid government issued ID or to clients over the age of 18 with a state issued medical card and matching government issued ID. The products provided by the delivery service will include cannabis flower, concentrates, and edibles, all of which will be labeled and packaged in compliance with state and local regulations. All products will come from licensed facilities with a focus on supporting local businesses. With the use of the Metrc (California Cannabis Track and Trace) program, Cali Direct will be able to ensure all products distributed and processed are coming from state licensed sources. See Appendix A for Operating Agreement. PRINCIPALS AND SHARE OWNERSHIP Equity holders in Cali Direct, LLC are as follows: Nathaniel Heintz-Hargitt 12 OWNERSHIP INFORMATION Nathaniel Heintz-Hargitt - Owner of Cali Direct, LLC Sunny Coast Properties, LLC - Owner of Cali Direct, LLC Kim Lancashire (Owner of Sunny Coast Properties, LLC) Luka Sorc, LLC – Owner of Cali Direct, LLC Asia Croson Khallaghi (Owner of Luka Sorc, LLC) Adam Gong - Owner of Cali Direct, LLC Logan Baumgartner - Owner of Cali Direct, LLC 13 EGAL FORMATION DOCUMENTS 14 EDERAL IDENTIFICAT ION NUMBER 15 COMMUNITY BENEFIT EMPLOYMENT Cali Direct is committed to the San Luis Obispo community with a plan to hire over 90% of its employees from the local San Luis Obispo Community. The Cali Direct business plan, branding and mission statement all focus on providing locally sourced products to the San Luis Obispo community, and this includes hiring over 90% of their employees locally. In an effort to support their community and employees, Cali Direct plans to compensate employees at 40% or above the average median entry level salary, ensuring that compensation is competitive. A detailed salary plan has been presented in this application under the Cali Direct Competitive Compensation And Wages Plan. Cali Direct will hire over 90% local residents and provide them with a competitive living wage, as well as, provide opportunities for professional development in a safe and positive working environment. Cali Direct wants to support their employees with continuing education and training in their field and encourage personal and professional development in a supportive working environment. Cali Direct understands that encouraging employees to be happy, healthy and motivated means that they can offer the community the best possible product knowledge and provide a service that delivers with compassion and respect to all customers. COMMUNITY SUPPORT Cali Direct will support the local community by sourcing a above 90% of all product and equipment from local businesses Over 90% of supply and equipment expense (non-labor, non- rent expense) will be sourced from businesses within 90 miles Cali Direct has established local relationships with licensed cannabis businesses on the Central Coast and plans to align themselves with more cultivator, manufactures and distributors in the local area as the business expands. Cali Direct is passionate about supporting local business, be it cannabis or non- cannabis related, as they understand that supporting the local economy will provide for future stability and strength in the industry. The owners of Cali Direct are deeply engaged in San Luis Obispo community service. Nathaniel Heintz–Hargitt has been involved in multiple community outreach programs. Nathaniel has a longstanding relationship with local organization ‘Girls Who Handle It’. Nathaniel has volunteered his time and efforts into the outreach initiatives developed from this platform, which stems from an annual art exhibition which aims to advocate for young women facing a range of adversities. Nathaniel has volunteered helped set up a community wide Clothing Swap benefiting charities such as Stand Strong, Children's Resource Center, and Cal Poly's Campus Closet. Asia Croson Khallaghi of Girls Who Handle It has provided a letter of recognition of the work that Nathaniel has provided to the organization, please see Appendix B. Asia Croson Khallaghi has worked with a number of community and women’s services programs. Information regarding Asia’s involvement in these services can be requested by the City but are not provided in this application. The applicant would like to request that information that may be requested in regards to Asia’s community service be kept confidential and not available to the public due to the sensitive nature of the programs she is involved in. 16 Kim Lancashire is a graduate of the inaugural Leadership South County program of the SouthCounty Chamber of Commerce (SCCC) and currently serves on the Government Relations Committee of the SCCC. The Leadership Program is designed to foster leaders in the business community with diverse backgrounds and beliefs to effectively work together to address the unique opportunities and pressing challenges in South County. The Government Relations Committee of the SCCC encourages a proactive approach to local legislation and supports research, analysis, education, and wide dissemination of proposed legislation that affects local business and the vitality of South SLO County Central to Cali Directs interests are promoting the integrity and safety of the coastline by joining and assisting organizations, in which they have removed of over 600lbs of waste from neighborhoods, roads and beaches. Cali Direct will continue to assist in community clean ups and plan to initiate their own annual community clean-up which will also aim to raise donation funds from sponsors of the clean up and donate to EcoSlo. EcoSlo is a local, non-profit organization that educates, advocates, and acts to protect and enhance the natural environment and human well-being of San Luis Obispo County. Please refer to Appendix D for the most recent participation in the EcoSlo 2020 Beach Clean Up in Morrow Bay. Photo below of the event, pictured are members of Cali Direct. 17 With future philanthropy in mind, the owners of Cali Direct, LLC plan on committing at a minimum above $1000 per month to support community programs, local non-profit organizations and youth programs, such as Community Action Partnership of San Luis Obispo County, EcoSlo, the Cystic Fibrosis Foundation and the Woods Humane Society. Cali Direct is also committed to prevention and diversion of minors’ which will involve focusing 50% of annual donations be made to youth drug abuse prevention and mental health programs in the City and County of San Luis Obispo. Cali Direct will utilize the San Luis Obispo County’s Behavioral Health Prevention and Outreach services as a resource for identifying local programs which focus on outreach and education. Cali Direct will donate above 20 hours per month to the local community through volunteering and supplying educational resources. These hours will be donated by Cali Direct owners, managers and employees. 18 QUITY AND LABOR EQUITY OWNERSHIP Three of the principle owners of Cali Direct, Nathaniel Heintz-Hargitt, Logan Baumgartner and Adam Gong in San Luis Obispo, California. According to data from Data USA (https:// datausa.io/profile/geo/san-luis-obispo-county-ca) the median household income for the San Luis Obispo County area is $71,880. Attached are tax filings for the three following principles; Nathaniel Heintz-Hargitt – See Appendix E for Nathaniel Heintz-Hargitt’s tax filings for 2018 Logan Baumgartner - See Appendix F for Logan Baumgatner’s tax filings for 2019 Adam Gong - See Appendix G for Adam Gong’s tax filings for 2018 COMPETITIVE COMPENSATION AND WAGES As part of the competitive compensation salary and wages plan, Cali Direct has established a starting salary for three of the most likely positions available within the business Office Manager, Warehouse Manager and Delivery Driver. Cali Direct has based median salaries in the San Luis Obispo area from Glass Door (www.glassdoor.com/saleries/san-luis-obispo). Cali Direct wants to empower it's employees and offer competitive salaries to those in the community who may not have other wise had the opportunity to earn a livable wage. Employees will also be offered training, sick leave, personal leave and other benefits. 19 FINANCIAL INVESTMENT CAPITALIZATION Cali Direct has secured independent capital support to sustain the business through the licensing, site improvements, start-up and early operations phases. Cali Direct had arranged for private funding in the form of loans for the project with two financiers; John Khallagi and Fariba Khallagi being available if funding is needed. Both financers, John Khallagi and Fariba Khallagi, have provided current bank statements which show proof of funds available to fund the project. Please see Appendix I for Fariba Khallagi financial statements and notarized loan agreement. FINANCIAL CAPACITY If funding for this project is necessary beyond contributions from the owner it will be provided as a loan from the lenders, Fariba Khallaghi and John Khallaghi. John Khallaghi is the husband of Cali Direct member Asia Croson. The financial agreement between the two parties, Fariba & John Khallaghi and Cali direct, has been outlined in a notarized agreement presented in Appendix H & I. The terms are The lender The loan will be distributed in phases as they correlate with the budget presented in Appendix J. The loan which is essentially a line of credit, would be stated in the repayment plan. START UP COSTS Cali Direct has developed a 5 phase budget plan which calculates quarterly and annual projections based on the following phases: 1.Bring Project to Life 2.Processing Application 3.Project Approval 4.Open for Business (First Quarter) 5.Estimates Initial Sales, First Quarter, First Year Based on these 5 phases of the business licensing process a strategic estimate has been developed for Cali Direct. The operations budget presented in this application allows for projections of the business ranging from 1st quarter low to high expense estimates, as well as, 1st year low to high expense estimates. An operations budget is provided – Please see Appendix J 20 Upgraded Landscaping Plan and Ongoing Maintenance Installation of Major Solar Energy Project to power the public spaces of the Sueldo Commercial Park Significant Visual Improvements 30 DAY NET AGREEMENTS Cali Direct has made arrangements with several licensed cannabis distributors to receive These agreements will allow Cali Direct to get their business up and running and then to maintain operations without having to expend a significant amount of capital to procure products. One example of these arrangements is the agreement that Cali Direct has reached with Grover Beach based Coastal Business Distribution, Appendix K. Coastal Business Distribution has agreed to Cali Direct at the The terms of the 30-day net agreement acts similar to a line of credit. As Cali Direct sells product to consumers they are able to provide If after 30-days CONSTRUCTION BUDGET SITE IMPROVEMENTS Cali Direct is committed to making major improvements to the site and making an investment to the underutilized Sueldo Industrial Park community by committing to significantly improve facilities including but not limited to: 21 Cali Direct is working directly with the property owners and HOA Managers of the Sueldo Industrial Park to implement needed improvements to the property and public spaces. The proposed projects are the result of a collaboration of the tenants and owners and their preferences on what would be the most beneficial improvements to the public spaces the Sueldo Industrial Park. All of the proposed improvements align with the City of San Luis Obispo’s community design plan. Landscaping Plan The property owners and HOA Managers of the Sueldo Industrial Park have established a preferred landscaping plan (See Appendix C) that will dramatically improve the curb appeal of the property as well as upgrade the public spaces in the complex. Cali Direct will work collaboratively with the HOA to implement the landscaping plan, not just directly in front of Suite O, but to the entire Sueldo Industrial Park. The landscaping plan includes the removal of dead turf and other plants that require irrigation and replacing them with drought resistant and native plants that will not require irrigation. A significant portion of the landscaping plan will focus on the front of the Industrial Park that is street facing, improving the curb appeal of the property and creating an improved and much more pleasant visual to the industrial park. A Landscaping plan is provided – Please see Appendix M. Solar & Lighting Cali Direct has finalized a plan with the property owner to have solar panels installed that will not only power the operations of the Cali Direct project but that will also provide all of the power for the Industrial Park HOA and all of the public spaces. The Solar panels would be mounted on top of the central building of the Sueldo Industrial Park (out of sight from the public) and in turn be used to offset the power it takes to run and light the industrial park. This power is used for the lighting of the parking lot, building exteriors, irrigation controllers, and communications. 22 All exterior lighting except the parking lot lights have previously been converted to LEDs. In addition to installing Solar to power existing operations Cali Direct will upgrade the parking lot lights to LEDs as they require replacement through their normal usage. The installation of the solar project and the upgrading of the parking lot lights to LEDs will greatly reduce the HOAs current power usage that has been projected at $ Visual Improvement Upgrading Cali Direct will also invest in the upgrading and rebuilding gated areas around the communal trash and recycling facilities and improve the facade of all roller doors in the park. All improvements will meet or exceed the guidelines set out in Chapter 3 of the Commercial and Industrial Project Design of the City of San Luis Obispo Community Design Plan. The cost to completely refurbish the 30 + year old waste and recycling enclosures would be This includes, re-welding and painting frames, replacing hardware and hinges, installing new 2 x 6 redwood or cedar. The improvements would substantially increase the life of these units. Existing Proposed Existing Proposed Bike Rack and Picnic Table 23 BUSINESS OPERATIONS PLAN LOCATION INFORMATION Proposed Operation: Cali Direct will be a medical and adult-use cannabis delivery service located in the approved Cannabis Zone, a land-use compliant area of San Luis Obispo, California. Address: 3563 Sueldo Street Unit O San Luis Obispo, CA 943401 Zone: C-S Parcel #: 053-253-029 EXHIBIT A Higuera Commerce Park Overlay Area Cannabis Zones Parcels BP C-S C/OS M O PF R-2 MEISSNER ST 3563 Sueldo Street, Unit O O 0 100 200 300 400 500 Feet 2018/08/15 24 COMPLIANCE STATEMENT Cali Direct is dedicated to operating and maintaining a licensed and fully compliant cannabis mobile delivery service headquartered in the City of San Luis Obispo and operating in the State of California. Compliance will involve creating and following Standard Operating Procedures (SOP’s) including the transportation of cannabis and cannabis products and the handling of cash as they relate to the City of San Luis Obispo Ordinance No. 1647, Municipal Code Chapter 9.10 and Chapter 17.86.080 (SLOMC), as well as, all State regulations laid out in the Bureau of Cannabis Control Regulations, California Title 16 Division 42 (CCR 16). Cali Direct will also comply with all other regulatory authorities such as the San Luis Obispo Police Department, Department of Public Health, State and Regional water boards, all tax agencies and other related authorities. Cali Direct is committed to incorporating best business practices outlined in the California Business and Professional Code relevant to cannabis operators. PROPERTY OWNERSHIP The property is owned by Kenneth M Weathers and is a part of a commercial business park consisting of several individually owned commercial units. Cali Direct will lease the property for 1 year with two 2 year renewal options and then a 5 year option to extend the lease for a total of 10 years. See Appendix N -- Property Lease HOURS OF OPERATION Cali Direct will operate the delivery service between the hours of 10 am and 8 pm in accordance with the San Luis Obispo City ordinance. 25 TRANSPORTATION PLAN Cali Direct is committed to employee safety and will comply with all City and State regulations by incorporating those guidelines into the Standard Operating Procedures. Delivery procedures have been outlined in Appendix O of this application. Cali Direct will operate with the objective of delivering compliant, licensed, locally sourced, high-quality cannabis product to its customers and patients in the safest way possible. The General Manager of Cali Direct, Nathaniel Heintz-Hargitt, will be responsible for training employees on transportation and delivery procedures, as well as, safety protocols detailed in Cali Direct’s proprietary SOPs found in Appendix P. CASH HANDLING 26 PRODUCTS AND SERVICES WHAT WE SELL: Flower: Dried cannabis that can be rolled into papers, smoked in a standard or water pipe, or vaporized. 5-25 Brand/Types Available (Sativa, Indica, Hybrid); As more local businesses get licensed Cali Direct aims to source locally. Extracts: Cannabis product that is manufactured by separating the trichomes (a part of the cannabis plant) from the cannabis flowers to create a concentrated dose. 5-10 Brands will be carried, focusing on local sources. Preparations: Pre-rolls, tinctures, dermals, salves and capsules. These products are particularly popular among senior patients in communal living environments where smokable products are not as popular, or may not be allowed. Edibles: Cannabis oil in edible products usually takes longer to take effect, and those effects generally last longer than smoking or vaping. 5-10 types will to be carried, focusing on local sources. DISTRIBUTION COMPANIES Mammoth Distribution Sonoma Pacific Stonebreaker Distribution Choices Distribution Coastal Business Distribution Kiva Sales and Distribution This is only a sample list of products and distribution companies. The companies and products will vary depending on product availability, market demand, and which companies maintain a high standard in licensing and business practices. Additionally, as more "805" based companies come into the marketplace they will be given top priority to ensure sourcing locally is maximized. 2327 SAMPLE PRODUCTS 28 COMMUNITY RELATIONS PLAN Neighborhood cohesion is extremely important to Cali Direct and they understand that maintaining good relationships with neighbors is essential to the success of their business. Cali Direct has developed a number of different ways to communicate, educate and add value to the community including: Owner Nathaniel Heintz-Hargitt has been designated as the Community Relations Manager for Cali Direct. Nathaniel graduated from the University of Hawaii with a Communication degree and is experienced in community outreach. Nathaniel will be the Cali Direct representative and responsible for communicating with and developing relationships with residences and businesses. Cali Direct will distribute introduction letters to the surrounding neighbors within the Sueldo Commerce Park, and invite them to communicate any questions or concerns they may have directly to Nathaniel. Contact information will be sent out with each introduction letter. The Degninee, Nathaniel Heintz-Hargitt, can be contacted via Phone:707-953-5242 or Email calprollc@gmail.com Implement an affective odor management system, which will not allow for odors to be detected off-site. Support local youth drug prevention and mental health programs through financial contributions and volunteer work. Volunteer 20+ hours per month to community outreach programs in the San Luis Obispo area, and develop initiatives of their own to educate the community on safe cannabis consumption, develop relationships with the community and to have fun! Cali Direct will also operate transparently with San Luis Obispo City, County and all law enforcement agencies. Cail Direct will grow and develop with the community as different needs and concerns of the community arise. Cali Direct is committed to being an active, productive and responsive organization who aims to be a good neighbor. As required by law, Cali Direct will post a sign in the main entrance that can be easily read from a distance of five feet stating: 1)The sale, dispensing, or consumption of alcoholic beverages on or about the medical cannabis facility or in the parking area for the facility is prohibited. 2)The loitering by persons outside the facility, either on the premise or within 100 feet of the premise is prohibited. Any nuisance or illegal activity will immediately result in reporting to the San Luis Obispo Police Department. STATE LICENSES As Cali Direct is a newly formed business entity, no state licenses have been applied for or issued relating to this commercial cannabis business. If selected for approval for this permit, Cali Direct will apply for a Bureau of Cannabis Control Retail Non-Storefront State license. 29 ROOF OF CORPORATE STATUS 30 TAX COMPLIANCE Cali Direct was established in June of 2019 has not filed federal or state taxes yet for 2019. A copy of the IRS Employer Identification Number for Cali Direct has been provided on page. All documentation will be supplied upon issuance of a permit and license. Cali Direct will follow all state, local and federal tax regulations and will hire a certified CPA specializing in the cannabis industry to ensure compliance. RECORDS: In accordance with Section 19327 of MCRSA, Cali Direct will keep accurate records of commercial cannabis activity. All records related to commercial cannabis activity as defined by the licensing authorities shall be maintained for a minimum of seven years. As detailed here, Cali Direct will implement policies and procedures to ensure the maintenance and secure storage of all required financial and operational records in a confidential manner. When requested the files will be supplied in a timely manner to administrative and regulatory bodies. Cali Direct will maintain true and current books, records, documents and other evidence associated with operating the facility in accordance with accepted accounting principles and practices. Such documentation will include records of assets and liabilities, transactions, agreements, checks, invoices, vouchers, and associated operational records. Cali Direct will make all records available for inspection by the City as requested. Cali Direct’s POS system is designed to collect data associated with business management including assets, liabilities, and monetary transactions. The system keeps a real-time record of all processes within the facility from receipt of inventory and to sale, including any returns. Detailed, refined reports may easily be configured to produce the information required by management or upon inspection by state and local regulators. The system features password protection and unique codes that will be used as electronic signatures. Records will be kept of all logins and records created or edited during that login time. Any paper records will be retained on-site and stored in locked cabinets with limited access to authorized employees only. Any hard-copy information not stored will be shredded and disposed of responsibly. 31 Cali Direct will maintain records in audit-able formats per local and state regulations and will make these records available for review during inspections and audits initiated by administrative and regulatory bodies. Cali Direct will maintain all other operation records on-site as required by SLO City Code including but not limited to detailed owner & employee information, licenses, permits, and insurance documents. Cali Direct is committed to protecting client and caregiver confidentiality and will not collect or maintain Protected Health Information. Cali Direct will comply with HIPAA and Confidentiality of Medical Information Act guidelines in the maintenance of all client records and information conveyed by a member to the facility regarding the client’s medical condition, information conveyed by a client to the facility regarding efforts to ameliorate or otherwise address symptoms associated with the client’s medical condition, or information regarding medical cannabis, medical cannabis products and/or edibles provided to a client. Such information will only be disclosed as required by local and state laws. Further, only authorized employees who have been trained on Cali Direct privacy and record keeping policy and procedures will have access to client records. LIGHTING PLAN INSURANCE Cali Direct will act in accordance with all state and local insurance requirements by obtaining all necessary insurance coverage. Cali Direct has already been working with California Meridian Insurance Services, Inc. of Atascadero to obtain all required insurance policies. See Appendix R - Insurance Letter 32 EDUCATION PLAN EDUCATION PLAN Cali Direct understands that part of being a responsible retailer of cannabis goods includes incorporating elements of education to various stages of the consumers purchase process from conceptual use to the effects of ingestion of various forms of cannabis products. Cali Direct will provide multiple resources for the community to ensure all community members seeking information are provided with accurate and scientifically researched data. Educational resources will be sourced from state and government websites and materials that will be made available on the Cali Direct website, include but are not limited to: CDC: Marijuana and Public Health https://www.cdc.gov/marijuana/) California Department of Public Health: Let’s Talk Cannabis https://www.cdph.ca.gov/Programs/DO/letstalkcannabis/Pages/LetsTalkCannabis.aspx) Los Angeles Department of Public Health: Bigger Choices www.publichealth.lacounty.gov/sapc/teens/) Sacramento County Coalition for Youth: Future Forward http://www.sacramentoccy.org/view/pdf/SCCY-Future-Forward.pdf) Cannabis Facts Sheet which includes: potential side effects, negative and beneficial outcomes of cannabis use, information of selecting cannabis products, strain differences, ingesting cannabis effects, safe smoking techniques, health effects including contra -indicators, tolerance, dependence and withdrawal symptoms, and cannabis use disorders. All information is required to be made available by local and state regulations. Other educational programs will be implemented in the community through the Community Relations Manager designed to educate, inform, promote res ponsible use and combat negative stigmas. Prevention Efforts With the goal of supporting a growing healthy community, Cali Direct will follow all state and local regulations ensuring that no persons under the age of 21 will be able to obtain cannabis products unless they have a valid State issued Medical Card), by implementing strict ID verification procedures. Resources will be made available to educate and inform parents of preventive and educational community programs which they can utiliz e at home or in the classroom. Safety practices will include following local and state packaging requirements ensuring products are not labeled or marked in a manner that would be considered appealing to those under 21 and ensuring that all products be sold in state compliant child proof packaging. 33 SECURITY PLAN 34 SECURITY PLAN: EXTERIOR CAMERAS 35 SECURITY PLAN: INTERIOR CAMERAS 36 SECURITY PLAN: CAMERA SPECIFICATIONS 7 8 ITE AND FLOOR PLANS 9 CALI CALI CALI SITE AND FLOOR PLANS 3 WATER AND ENERGY EFFICIENCY DROUGHT TOLERANT LANDSCAPING Cali Direct is committed to operating a "green" business and aims to reduce the negative impacts of daily business operations on the global and local community. Cali Direct operates with the consideration of the triple bottom line; people, profit and plant. Part of their commitment is to create a water efficiency plan. As the business will operate from an office, minimal water will be used in the daily operation, but what little water that is used will be conserved in the following ways; Drought Tolerant Landscaping - Cali Direct has worked with the property owners and the HOA to provide funding to change the current landscaping at the facility – including removing sod – to drought tolerant landscaping that includes native plants to eliminate the need to daily irrigation. Plants are specifically chosen to suite the natural environment while adding aesthetically pleasing vegetation to the commerce park. See Appendix M Low Flow Fixtures - Cali Direct will install a dual-flush, low- flow toilet and also install faucet aerators that will not exceed 0. 5 GPM for break room and bathroom sinks. Cali Direct will continuously monitor water usage to identify leaks or other problems. Water service with the City of San Luis Obispo will provide sufficient water supply to the unit, and the service had existed for many years at this site. ENERGY EFFICENCY PLAN Cali Direct is committed to operating a green business and aims to reduce the negative impacts of daily business operations on the global and local community. Cali Directs operates with the consideration of the triple bottom line; people, profit and plant. As a green business, Cali Direct is committed to green operations, a healthy and happy workforce and a clean plant. Part of that commitment is to create an energy efficiency plan. Cali will implement the following energy efficient procedures into the daily business operations: Energy efficient lighting – Cali Direct will use energy efficient light bulbs rather than traditional lightbulbs, which will last longer and use a fraction of the energy as traditional lighting Car Pooling and Bike to Work – Cali Direct will offer a company carpooling program and encourage coworkers to travel together by offering incentives for participating. This can also be a successful team-building initiative. Biking to work will also be encouraged and incentified. Smart Climate Control – Cali Direct will set smart climate control to an office temperature to 70 degrees or less in the winter and 76 degrees or more in the summer. Cali Direct will replace the current high energy bulbs that are currently being usage in the public spaces of the Industrial Park with energy efficient bulbs over time during normal maintenance Cali Direct is installing solar power to offset the power usage of the HOA and also the power usage of the Cali Direct operations. Car pooling & bike to work – Cali Direct will be adding bike rakes for employees and everyone at the Industrial Park to use.44 Cali Direct has identified the best way to provide reliable and energy efficient energy solutions for the business. A finalized a plan with the property owner to have solar panels installed that will not only power the operations of the Cali Direct project but that will also provide all of the power for the Industrial Park HOA and all of the public spaces. The Solar panels would be mounted on top of the central building of the Sueldo Industrial Park (out of sight from the public) and in turn be used to offset the power it takes to run and light the industrial park. This power is used for the lighting of the parking lot, building exteriors, irrigation controllers, and communications. All exterior lighting except the parking lot lights have previously been converted to LEDs. In addition to installing Solar to power existing operations Cali Direct will upgrade the parking lot lights to LEDs as they require replacement through their normal usage. The installation of the solar project and the upgrading of the parking lot lights to LEDs will greatly reduce the HOAs current power usage that has been projected at $ 45 ODOR CONTROL PLAN Cali Direct will implement proven odor mitigation equipment located in the two areas of the facility where cannabis goods will be located. The Odor Control equipment and procedures will ensure that no odor will be detectable off site through commercial carbon filtration system and will meet the requirements of SLOMC 17. 99.050 (E)(3). Cali Direct will implement procedures to ensure odor mitigation equipment will be regularly assessed, maintained, and serviced by trained employees and licensed contractors. The General Manager will do a system check once a month for general maintenance and functioning of equipment. Equipment Specs The Cali Direct facility will be equipped with odor mitigation equipment from Can-Filter, an industry leader in air filtration and odor abatement. Can-Filter offers the highest quality filters, fans and accessories to the North American market and provide the most reliable, consistent, and highest quality product. Based on the cubic area of the Cali Direct space they will be equipped with two 8” 1000 CFM Can-Lit carbon active filters and 2 Can-Fan 8 HO fans. The carbon filters will essentially “scrub” the air eliminating any odors and the fans will recirculate the “clean” air throughout the building. Odor mitigation equipment will have dedicated outlets that will be connected to a backup battery to ensure that the power supply will not be interrupted in the event of a power outage. Specification of each piece of equipment is presented in Appendix U. Location of Equipment Odor Mitigation equipment will be located in the two areas of the Cali Direct facility where cannabis will be located. One carbon scrubber filter and fan will be located in the Security Room/ Product Storage and Delivery area (738sq.ft.). The other carbon scrubber filter and fan be located in Fulfillment area (587sq. ft). Odor Complaints Cali Direct will proactively address concerns from neighbors and the community regarding odor. Because all product will be coming into the facility retail-ready, prepackaged and sealed, cannabis odors will be minimal. In the event of an odor complaint, the General Manager, Nathaniel Heintz-Hargitt can be contacted at 707-953-5242, or via email at calprollc@gmail.com. Contact information will be posted on the website and will be easily accessible to those seeking it. Introduction letters about the new cannabis business will be mailed to neighbors within 500 feet of the facility and will also include contact information. Upon receiving a complaint, it will be documented by the General Manager with the time and nature of the odor issue, along with the name and contact information of the individual making the complaint. Management will investigate the source of the odor, check for any odor mitigation equipment malfunction, or other source of odor identified. Management will then reach out to the individual who made the complaint with an update of the resolution if the individual has asked to be contacted. Documentation of the resolution will be kept on file. 46 HAZARDOUS MATERIALS PLAN There will be no hazardous materials stored or used on site at the Cali Direct facility. 47 APPENDICIES 4548 Appendix A – Cali Direct Operating Agreement 49 Limited Liability Company Agreement of Cali Direct, a Limited Liability Company 2-15-2020 I.Formation. A.State of Formation. This is a Limited Liability Company Operating Agreement (the Agreement") for Cali Direct, LLC, a Member-managed California limited liability company (the "Company") formed under and pursuant to California law. B.Operating Agreement Controls. To the extent that the rights or obligations of the Members or the Company under provisions of this Operating Agreement differ from what they would be under California law absent such a provision, this Agreement, to the extent permitted under California law, shall control. C.Primary Business Address. The location of the primary place of business of the Company is: 3563 Sueldo Street, Unit O, San Luis Obispo, CA 93401(address), or such other location as shall be selected from time to time by the Members. D.Registered Agent and Office. The Company's initial agent (the "Agent") for service of process is Nathaniel Heintz Hargitt (agent). The Agent's registered office is 3563 Sueldo Street, Unit O, San Luis Obispo, CA 93401 (address). The Company may change its registered office, its registered agent, or both, upon filing a statement with the California Secretary of State. E.No State Law Partnership. No provisions of this Agreement shall be deemed or construed to constitute a partnership (including, without limitation, a limited partnership) or joint venture, or any Member a partner or joint venture of or with any other Member, for any purposes other than federal and state tax purposes. II.Purposes and Powers. A.Purpose. The Company is created for the following business purpose: Retail B.Powers. The Company shall have all of the powers of a limited liability company set forth under California law. C.Duration. The Company's term shall commence upon the filing of an Articles of Organization and all other such necessary materials with the state of California. The Company will operate until terminated as outlined in this Agreement unless: 1.The Members vote unanimously to dissolve the Company; 2.No Member of the Company exists, unless the business of the Company is continued in a manner permitted by California law; DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 50 3.It becomes unlawful for either the Members or the Company to continue in business; 4.A judicial decree is entered that dissolves the Company; or 5.Any other event results in the dissolution of the Company under federal or California law. III.Members. A.Members. The Members of the Company (jointly the "Members") and their Membership Interest in the same at the time of adoption of this Agreement are as follows: Nathaniel Heitz-Hargitt Kim Lancashire B.Initial Contribution. Each Member shall make an Initial Contribution to the Company. The Initial Contributions of each shall be as described in Attachment A, Initial Contributions of the Members. No Member shall be entitled to interest on their Initial Contribution. Except as expressly provided by this Agreement, or as required by law, no Member shall have any right to demand or receive the return of their Initial Contribution. C.Limited Liability of the Members. Except as otherwise provided for in this Agreement or otherwise required by California law, no Member shall be personally liable for any acts, debts, liabilities or obligations of the Company beyond their respective Initial Contribution. The Members shall look solely to the Company property for the return of their Initial Contribution, or value thereof, and if the Company property remaining after payment or discharge of the debts, liabilities or obligations of the Company is insufficient to return such Initial Contributions, or value thereof, no Member shall have any recourse against any other Member except as is expressly provided for by this Agreement. D.Withdrawal or Death of a Member. Should a Member die or withdraw from the Company by choice, the remaining Members will have the option to buy out that Member's Membership Interest in the Company. Should the Members agree to buy out the Membership Interest of the withdrawing Member, that Interest shall be paid for equally by the remaining Members and distributed in equal amounts to the remaining Members. The Members agree to hire an outside firm to assess the value of the Membership Interest. The Members will have 90 days to decide if they want to buy the Membership Interest DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 51 together and disperse it equally. If all Members do not agree to buy the Membership Interest, individual Members will then have the right to buy the Membership Interest individually. If more than one Member requests to buy the remaining Membership Interest, the Membership Interest will be paid for and split equally among those Members wishing to purchase the Membership Interest. If all Members agree by unanimous vote, the Company may choose to allow a non- Member to buy the Membership Interest thereby replacing the previous Member. If no individual Member(s) finalize a purchase agreement by 90 days, the withdrawing Member, or their estate, may dispose of their Membership Interest however they see fit, subject to the limitations in Section III (E) below. If a Member is a corporation, trust, partnership, limited liability company or other entity and is dissolved or terminated, the powers of that Member may be exercised by its legal representative or successor. The name of the Company may be amended upon the written and unanimous vote of all Members if a Member withdraws, dies, is dissolved or terminated. E.Creation or Substitution of New Members. Any Member may assign in whole or in part its Membership Interest only after granting their fellow Members the right of first refusal, as established in Section III (D) above. 1.Entire transfer. If a Member transfers all of its Membership Interest, the transferee shall be admitted to the Company as a substitute Member upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement. Such admission shall be deemed effective immediately upon the transfer, and, simultaneously, the transferor Member shall cease to be a Member of the Company and shall have no further rights or obligations under this Agreement. 2.Partial transfer. If a Member transfers only a portion of its Membership Interest, the transferee shall be admitted to the Company as an additional Member upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement. 3.Whether a substitute Member or an additional Member, absent the written consent of all existing Members of the Company, the transferee shall be a limited Member and possess only the percentage of the monetary rights of the transferor Member that was transferred without any voting power as a Member in the Company. F.Member Voting. Voting power. The Company's Members shall each have one Vote equal to the Vote of each other Member, regardless of the Member's share of Membership Interest in the Company 1.Proxies. At all meetings of Members, a Member may vote in person or by proxy executed in writing by the Member or by his duly authorized attorney-in-fact. Such proxy shall be delivered to the Secretary of the Company before or at the time of the meeting. No proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the proxy. G.Duties of the Members. The Members shall cause the Company to do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and franchises. The Members also shall cause the Company to: DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 52 1.Maintain its own books, records, accounts, financial statements, stationery, invoices, checks and other limited liability company documents and bank accounts separate from any other person; 2.At all times hold itself out as being a legal entity separate from the Members and any other person and conduct its business in its own name; 3.File its own tax returns, if any, as may be required under applicable law, and pay any taxes required to be paid under applicable law; 4.Not commingle its assets with assets of the Members or any other person, and separately identify, maintain and segregate all Company assets; 5.Pay its own liabilities only out of its own funds, except with respect to organizational expenses; 6.Maintain an arm's length relationship with the Members, and, with respect to all business transactions entered into by the Company with the Members, require that the terms and conditions of such transactions (including the terms relating to the amounts paid thereunder) are the same as would be generally available in comparable business transactions if such transactions were with a person that was not a Member; 7.Pay the salaries of its own employees, if any, out of its own funds and maintain a sufficient number of employees in light of its contemplated business operations; 8.Not guarantee or become obligated for the debts of any other person or hold out its credit as being available to satisfy the obligations of others; 9.Allocate fairly and reasonably any overhead for shared office space; 10.Not pledge its assets for the benefit of any other person or make any loans or advances to any person; 11.Correct any known misunderstanding regarding its separate identity; 12.Maintain adequate capital in light of its contemplated business purposes; 13.Cause its Members to meet or act pursuant to written consent and keep minutes of such meetings and actions and observe all other California limited liability company formalities; 14.Make any permitted investments directly or through brokers engaged and paid by the Company or its agents; 15.Not require any obligations or securities of the Members; and 16.Observe all other limited liability formalities. DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 53 Failure of the Members to comply with any of the foregoing covenants shall not affect the status of the Company as a separate legal entity or the limited liability of the Members. H.Fiduciary Duties of the Members. 1.Loyalty and Care. Except to the extent otherwise provided herein, each Member shall have a fiduciary duty of loyalty and care similar to that of members of limited liability companies organized under the laws of California. 2.Competition with the Company. The Members shall refrain from dealing with the Company in the conduct of the Company's business as or on behalf of a party having an interest adverse to the Company unless a majority, by individual vote, of the Members excluding the interested Member, consents thereto. The Members shall refrain from competing with the Company in the conduct of the Company's business unless a majority, by individual vote, of the Members excluding the interested Member, consents thereto. In the event that a Member is the sole Member of the Company, no vote shall be required. 3.Duties Only to the Company. The Member's fiduciary duties of loyalty and care are to the Company and not to the other Members. The Members shall owe fiduciary duties of disclosure, good faith and fair dealing to the Company and to the other Members. A Member who so performs their duties shall not have any liability by reason of being or having been a Member. 4.Reliance on Reports. In discharging the Member's duties, a Member is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by any of the following: i.One or more Members, Officers, or employees of the Company whom the Member reasonably believes to be reliable and competent in the matters presented. ii.Legal counsel, public accountants, or other persons as to matters the Member reasonably believes are within the persons' professional or expert competence. iii.A committee of Members of which the affected Member is not a participant, if the Member reasonably believes the committee merits confidence. I.Waiver of Partition: Nature of Interest. Except as otherwise expressly provided in this Agreement, to the fullest extent permitted by law, each Member hereby irrevocably waives any right or power that such Member might have to cause the Company or any of its assets to be partitioned, to cause the appointment of a receiver for all or any portion of the assets of the Company, to compel any sale of all or any portion of the assets of the Company pursuant to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of the Company. No Member shall have any interest in any specific assets of the Company. DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 54 J.Compensation of Members. The Members shall have the authority to fix the compensation of individual Members. All Members may be paid their expenses, if any, of attendance at meetings of the Members, which may be a fixed sum for attendance at each meeting of the Members or a stated salary as a Member. No such payment shall preclude any Member from serving the Company in any other capacity and receiving compensation therefor. K.Members as Agents. All Members are agents of the Company for the purpose of its business. An act of any Member, including the signing of an instrument in the Company's name, binds the Company where the Member executed the act for apparently carrying on the Company's business or business of the kind carried on by the Company in the ordinary course, unless the Member had no authority to act for the Company in the particular matter and the person with whom the Member was dealing knew or had notice that the Member lacked authority. An act of a Member binds the Company, however, even where the Member executed the act not apparently for carrying on the Company's business or business of the kind carried on by the Company in the ordinary course only if the act was authorized by the other Members. IV.Accounting and Distributions. A.Fiscal Year. The Company's fiscal year shall end on the last day of December. C.Distributions. Distributions shall be issued, as directed by the Company's Treasurer or Assistant Treasurer, on a monthly basis, based upon the Company's fiscal year. The distribution shall not exceed the remaining net cash of the Company after making appropriate provisions for the Company's ongoing and anticipatable liabilities and expenses. Each Member shall receive a percentage of the overall distribution that matches that Member's percentage of Membership Interest in the Company. V.Tax Treatment Election. The Company has not filed with the Internal Revenue Service for treatment as a corporation. Instead, the Company will be taxed as a pass-through organization. The Members may elect for the Company to be treated as a C-Corporation or an S-corporation at any time. VI.Officers. A.Appointment and Titles of Officers. The initial Officers shall be appointed by the Members and shall consist of at least a Chairman, a Secretary and a Treasurer. Any additional or substitute Officers shall be chosen by the Members. The Members may also choose one or more President, Vice-President, Assistant Secretaries and Assistant Treasurers. Any number of offices may be held by the same person, as permitted by California law. The Members may appoint such other Officers and agents as they shall deem necessary or advisable who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Members. The Officers and agents of the Company shall hold office until their successors are chosen and qualified. Any Officer elected or appointed by the Members may be removed at any time, with or without cause, by the affirmative vote of a majority of the Members. Any vacancy occurring in any office of the Company shall be filled by the Members. DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 55 Unless the Members decide otherwise, if the title of an Officer is one commonly used for officers of a limited liability company formed under California law, the assignment of such title shall constitute the delegation to such person of the authorities and duties that are normally associated with that office. 1.Chairman. The Chairman shall be the chief executive officer of the Company, shall preside at all meetings of the Members, shall be responsible for the general and active management of the business of the Company and shall see that all orders and resolutions of the Members are carried into effect. The Chairman shall execute all contracts on behalf of the Company, except: i.where required or permitted by law or this Agreement to be otherwise signed and executed; ii.where signing and execution thereof shall be expressly delegated by the Members to some other Officer or agent of the Company. 2.President. In the absence of the Chairman or in the event of the Chairman's inability to act, the President shall perform the duties of the Chairman, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chairman. The President shall perform such other duties and have such other powers as the Members may from time to time prescribe. 3.Vice-Presidents. In the absence of the Chairman and President or in the event of their inability to act, any Vice-Presidents in the order designated by the Members (or, in the absence of any designation, in the order of their election) shall perform the duties of the Chairman, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chairman. Vice-Presidents, if any, shall perform such other duties and have such other powers as the Members may from time to time prescribe. 4.Secretary and Assistant Secretary. The Secretary shall be responsible for filing legal documents and maintaining records for the Company. The Secretary shall attend all meetings of the Members and record all the proceedings of the meetings of the Company and of the Members in a book to be kept for that purpose. The Secretary shall give, or cause to be given, notice of all meetings of the Members, as required in this Agreement or by California law, and shall perform such other duties as may be prescribed by the Members or the Chairman, under whose supervision the Secretary shall serve. The Secretary shall cause to be prepared such reports and/or information as the Company is required to prepare by applicable law, other than financial reports. The Assistant Secretary, or if there be more than one, the Assistant Secretaries in the order determined by the Members (or if there be no such determination, then in order of their election), shall, in the absence of the Secretary or in the event of the Secretary's inability to act, perform the duties and exercise the powers of the Secretary and shall perform such other duties and have such other powers as the Members may from time to time prescribe. 5.Treasurer and Assistant Treasurer. The Treasurer shall have the custody of the Company funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company according to generally accepted accounting practices, using a DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 56 fiscal year ending on the last day of the month of December. The Treasurer shall deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Members. The Treasurer shall distribute the Company's profits to the Members. The Treasurer shall disburse the funds of the Company as may be ordered by the Members and shall render to the Chairman and to the Members, at their regular meetings or when the Members so require, an account of all of the Treasurer's transactions and of the financial condition of the Company. As soon as practicable after the end of each fiscal year of the Company, the Treasurer shall prepare a statement of financial condition as of the last day of the Company's fiscal year, and a statement of income and expenses for the fiscal year then ended, together with supporting schedules. Each of said annual statements shall be prepared on an income tax basis and delivered to the Members forthwith upon its preparation. In addition, the Treasurer shall keep all financial records required to be kept pursuant to California law. The Assistant Treasurer, or if there shall be more than one, the Assistant Treasurers in the order determined by the Members (or if there be no such determination, then in the order of their election), shall, in the absence of the Treasurer or in the event of the Treasurer's inability to act, perform the duties and exercise the powers of the Treasurer and shall perform such other duties and have such other powers as the Members may from time to time prescribe. B.Officers as Agents. The Officers, to the extent of their powers set forth in this Agreement or otherwise vested in them by action of the Members not inconsistent with this Agreement, are agents of the Company for the purpose of the Company's business, and the actions of the Officers taken in accordance with such powers shall bind the Company. C.Fiduciary Duties of the Officers. 1.Loyalty and Care. Except to the extent otherwise provided herein, each Officer shall have a fiduciary dut y of loyalty and care similar to that of officers of limited liability companies organized under the laws of California. 2.Competition with the Company. The Officers shall refrain from dealing with the Company in the conduct of the Company's business as or on behalf of a party having an interest adverse to the Company unless a majority, by individual vote, of the Members, excluding the interested Officer if that Officer is a Member, consents thereto. The Officers shall refrain from competing with the Company in the conduct of the Company's business unless a majority, by individual vote, of the Members, excluding the interested Officer if that Officer is a Member, consents thereto. In the event that the interested Officer is the sole Member, no vote shall be required. 3.Duties Only to the Company. The Officers' fiduciary duties of loyalty and care are to the Company and not to the Members or other Officers. The Officers shall owe fiduciary duties of disclosure, good faith and fair dealing to the Company and to the Members, but shall owe no such duties to Officers unless the Officer is a Member. An Officer who so performs their duties shall not have any liability by reason of being or having been an Officer. 4.Reliance on Reports. In discharging the Officer's duties, an Officer is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by any of the following: DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 57 i.One or more Members, Officers, or employees of the Company whom the Officer reasonably believes to be reliable and competent in the matters presented. ii.Legal counsel, public accountants, or other persons as to matters the Officer reasonably believes are within the persons' professional or expert competence. iii.A committee of Members of which the affected Officer is not a participant, if the Officer reasonably believes the committee merits confidence. VII.Dissolution. A.Limits on Dissolution. The Company shall have a perpetual existence, and shall be dissolved, and its affairs shall be wound up only upon the provisions established in Section II (C) above. Notwithstanding any other provision of this Agreement, the Bankruptcy of any Member shall not cause such Member to cease to be a Member of the Company and upon the occurrence of such an event, the business of the Company shall continue without dissolution. Each Member waives any right that it may have to agree in writing to dissolve the Company upon the Bankruptcy of any Member or the occurrence of any event that causes any Member to cease to be a Member of the Company. B.Winding Up. Upon the occurrence of any event specified in Section II(C), the Company shall continue solely for the purpose of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors. One or more Members, selected by the remaining Members, shall be responsible for overseeing the winding up and liquidation of the Company, shall take full account of the liabilities of the Company and its assets, shall either cause its assets to be distributed as provided under this Agreement or sold, and if sold as promptly as is consistent with obtaining the fair market value thereof, shall cause the proceeds therefrom, to the extent sufficient therefor, to be applied and distributed as provided under this Agreement. C.Distributions in Kind. Any non-cash asset distributed to one or more Members in liquidation of the Company shall first be valued at its fair market value (net of any liability secured by such asset that such Member assumes or takes subject to) to determine the profits or losses that would have resulted if such asset were sold for such value, such profit or loss shall then be allocated as provided under this Agreement. The fair market value of such asset shall be determined by the Members or, if any Member objects, by an independent appraiser (any such appraiser must be recognized as an expert in valuing the type of asset involved) approved by the Members. D.Termination. The Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of the Company, shall have been distributed to the Members in the manner provided for under this Agreement and (ii) DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 58 the Company's registration with the state of California shall have been canceled in the manner required by California law. E.Accounting. Within a reasonable time after complete liquidation, the Company Treasurer shall furnish the Members with a statement which shall set forth the assets and liabilities of the Company as at the date of dissolution and the proceeds and expenses of the disposition thereof. F.Limitations on Payments Made in Dissolution. Except as otherwise specifically provided in this Agreement, each Member shall only be entitled to look solely to the assets of the Company for the return of its Initial Contribution and shall have no recourse for its Initial Contribution and/or share of profits (upon dissolution or otherwise) against any other Member. G.Notice to California Authorities. Upon the winding up of the Company, the Member with the highest percentage of Membership Interest in the Company shall be responsible for the filing of all appropriate notices of dissolution with California and any other appropriate state or federal authorities or agencies as may be required by law. In the event that two or more Members have equally high percentages of Membership Interest in the Company, the Member with the longest continuous tenure as a Member of the Company shall be responsible for the filing of such notices. VIII.Exculpation and Indemnification. A.No Member, Officer, employee or agent of the Company and no employee, agent or affiliate of a Member (collectively, the "Covered Persons") shall be liable to the Company or any other person who has an interest in or claim against the Company for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person's gross negligence or willful misconduct. B.To the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement. Expenses, including legal fees, incurred by a Covered Person defending any claim, demand, action, suit or proceeding shall be paid by the Company. The Covered Person shall be liable to repay such amount if it is determined that the Covered Person is not entitled to be indemnified as authorized in this Agreement. No Covered Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Covered Person by reason of such Covered Person's gross negligence or willful misconduct with respect to such acts or omissions. Any indemnity under this Agreement shall be provided out of and to the extent of Company assets only. C.A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any person as to matters the Covered Person reasonably believes are within such other DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 59 person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, or any other facts pertinent to the existence and amount of assets from which distributions to the Members might properly be paid. D.To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Company or to any other Covered Person, a Covered Person acting under this Agreement shall not be liable to the Company or to any other Covered Person for its good faith reliance on the provisions of this Agreement. The provisions of the Agreement, to the extent that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the Members to replace such other duties and liabilities of such Covered Person. E.The foregoing provisions of this Article VIII shall survive any termination of this Agreement. IX.Insurance. The Company shall have the power to purchase and maintain insurance, including insurance on behalf of any Covered Person against any liability asserted against such person and incurred by such Covered Person in any such capacity, or arising out of such Covered Person's status as an agent of the Company, whether or not the Company would have the power to indemnify such person against such liability under the provisions of Article VIII or under applicable law. X.Settling Disputes. All Members agree to enter into mediation before filing suit against any other Member or the Company for any dispute arising from this Agreement or Company. Members agree to attend one session of mediation before filing suit. If any Member does not attend mediation, or the dispute is not settled after one session of mediation, the Members are free to file suit. Any law suits will be under the jurisdiction of the state of California. XI.General Provisions. A.Notices. All notices, offers or other communications required or permitted to be given pursuant to this Agreement shall be in writing and may be personally served or sent by United States mail and shall be deemed to have been given when delivered in person or three (3) business days after deposit in United States mail, registered or certified, postage prepaid, and properly addressed, by or to the appropriate party. B.Number of Days. In computing the number of days (other than business days) for purposes of this Agreement, all days shall be counted, including Saturdays, Sundays and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday or holiday on which national banks are or may elect to be closed, then the final day shall be deemed to be the next day which is not a Saturday, Sunday or such holiday. DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 60 C.Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which shall together constitute one and the same instrument. D.Severability. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. E.Headings. The Article and Section headings in this Agreement are for convenience and they form no part of this Agreement and shall not affect its interpretation. F.Controlling Law. This Agreement shall be governed by and construed in all respects in accordance with the laws of the state of California (without regard to conflicts of law principles thereof). G.Application of California Law. Any matter not specifically covered by a provision of this Agreement shall be governed by the applicable provisions of California law. H.Amendment. This Agreement may be amended only by written consent of all the Members. Upon obtaining the approval of any such amendment, supplement or restatement as to the Certificate, the Company shall cause a Certificate of Amendment or Amended and Restated Certificate to be prepared, executed and filed in accordance with California law. I.Entire Agreement. This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained. IN WITNESS WHEREOF, the Members have executed and agreed to this Limited Liability Company Operating Agreement, which shall be effective as of July 28, 2019 (date). Signature: Signature: LLC - Asia Khallaghi Signature: Properties, LLC – Kim Lancashire Signature: ______________________________________________ Baumgartner Signature: _______________________________________________ DocuSign Envelope ID: DD7C89DA-E71B-4C68-8485-995268F6B4A4 2/17/2020 2/17/2020 2/17/2020 2/17/2020 2/17/2020 61 Appendix B – Letter of Community Participation Nathaniel 62 3 Appendix C – Proof of Participation in South County Chamber Leadership Program - Kim Lancashire 64 65 Appendix D – EcoSlo Volunteering Receipts 66 Order Information Do you organize events? Start selling in minutes with Eventbrite! www.eventbrite.com February Low Tides Beach Cleanup Saturday, February 8, 2020 from 2:00 PM to 4:00 PM (PST) Morro Bay, Morro Rock, Morro Bay, CA 93442 Volunteer for Beach Cleanup Order #1251533035. Ordered by Nathaniel Heintz-Hargitt on February 8, 2020 12:55 PM Eventbrite Completed 12515330351722597053001 Order #1251533035 67 Order Information Do you organize events? Start selling in minutes with Eventbrite! www.eventbrite.com February Low Tides Beach Cleanup Saturday, February 8, 2020 from 2:00 PM to 4:00 PM (PST) Morro Bay, Morro Rock, Morro Bay, CA 93442 Volunteer for Beach Cleanup Order #1251533035. Ordered by Nathaniel Heintz-Hargitt on February 8, 2020 12:55 PM Eventbrite Completed 12515330351722597055001 Order #1251533035 68 Order Information Do you organize events? Start selling in minutes with Eventbrite! www.eventbrite.com February Low Tides Beach Cleanup Saturday, February 8, 2020 from 2:00 PM to 4:00 PM (PST) Morro Bay, Morro Rock, Morro Bay, CA 93442 Optional Donation to MBNEP and ECOSLO Donation Option 3 $22.85 Order #1251533035. Ordered by Nathaniel Heintz-Hargitt on February 8, 2020 12:55 PM Eventbrite Completed 12515330351722597057001 Order #1251533035 69 Appendix E – Nathaniel Heintz-Hargitt Tax Return 2018 70 Nathaniel Heintz Hargitt 04/08/19 FEDERAL TAX RETURN SUMMARY 2018 Income We're Open All Year! Call 800-HRBLOCK 800-472-5625 or visit hrblock.com to schedule an appointment. The H&R Block Advantage document provides information that could help you improve your tax and financial situation,but your actual tax situation may change materially depending on future changes to the law and changes in your personal and financial circumstances.If your circumstances do change, we suggest that your review the change with your tax professional. 71 Nathaniel Heintz Hargitt 04/08/19 Credits Child Care Credit:$ SINGLE Tax Bracket 0 - $9,525 10%--$ ACA Premium Tax Credit Reconciliation Details Eligible Premium Tax Credit:$ Your ACA Advance Premium Tax Credit Repayment is a result of reconciling the premium tax credit you were eligible to receive with the actual advance premium tax credit you received prior to filing your taxes. Your repayment of the advance premium tax credit was capped based on your income level. We're Open All Year! Call 800-HRBLOCK 800-472-5625 or visit hrblock.com to schedule an appointment. The H&R Block Advantage document provides information that could help you improve your tax and financial situation,but your actual tax situation may change materially depending on future changes to the law and changes in your personal and financial circumstances.If your circumstances do change, we suggest that your review the change with your tax professional. 72 2019 INCOME TAX ESTIMATOR/PLANNER Keep for Your Records Filing status INCOME: Wages, salaries, tips, etc. Interest income Ordinary dividend income Refunds of state and local taxes Business income or (loss) (Schedule C) Capital gain or (loss) (Schedule D) Other gains or (losses) (Form 4797) IRA distributions and pension income Rental real estate, partnerships, estates, etc. (Schedule E) Farm income or (loss) (Schedule F) Taxable social security income Other income Total income ADJUSTMENTS: IRA deduction Deductible part of self-employment tax(Schedule SE) Self-employed health insurance Self-employed SEP, SIMPLE and qualified plans deduction Other adjustments Total adjustments ADJUSTED GROSS INCOME: FDA M0524P 18_REFORMANALYSIS1FormSoftwareCopyright1996 - 2019 HRB Tax Group, Inc. Unemployment compensation Student loan interest deduction DEDUCTIONS: Other miscellaneous deductions Casualty and theft losses Gifts to charity Interest paid Taxes paid Medical and dental expenses Itemized deductions: Standard deduction Qualified Business Income Deduction Alimony received from divorces finalized before 1/1/2019 Educator expenses Certain business expenses of reservists, performing artist, and fee-basis government officials Health savings account deduction (Form 8889) Qualified Moving Expenses Penalty on early withdrawal of savings Alimony paid on divorces finalized before 1/1/2019 Total itemized deductions Deduction actually claimed 2018 Current Estimated 2019 Adjustments 2019 excluding Qualified Dividends) including Qual Dividends) 73 2019 INCOME TAX ESTIMATOR/PLANNER Keep for Your Records Current Estimated OTHER TAXES: Additional tax on IRA’s Health Care (Individual Responsibility)(repealed after 2018) Total other taxes PAYMENTS: Federal income tax withheld Earned income credit Other payments Total payments AMOUNT DUE / REFUND: Amount overpaid Overpayment applied to next year Refund Amount due 20192018 Adjustments 2019 74 H AND R BLOCK 3230 BROAD ST SAN LUIS OBISPO CA 93401 8055433245 04-08-2019 NATHANIEL HEINTZ HARGITT INSTRUCTIONS FOR FILING 2018 FEDERAL Penalty Incl) You have elected Federal return ELECTRONICALLY. Make a check for $4,610.00 payable to: UNITED STATES TREASURY Write your SSN, day phone number, and 2018 1040 on the check. Mail only Form 1040V, and your check, on or before 04-15-2019 to: INTERNAL REVENUE SERVICE PO BOX 7704 SAN FRANCISCO, CA 94120-7704 INSTRUCTIONS FOR FILING FEDERAL Make checks payable to: UNITED STATES TREASURY. Write your social security number on the check. Mail your ES vouchers on or before the due dates to: INTERNAL REVENUE SERVICE CENTER PO BOX 510000 SAN FRANCISCO, CA 94151-5100 INSTRUCTIONS FOR FILING 2018 CALIFORNIA You have elected to file your State return ELECTRONICALLY. You must sign CA 8453. Make a check for $359.00 payable to: FRANCHISE TAX BOARD Write your social security number on the check. Mail only FTB 3582 and your check on or before 04-15-2019 to: FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO, CA 94267-0008 75 H AND R BLOCK 3230 BROAD ST SAN LUIS OBISPO CA 93401 8055433245 04-08-2019 NATHANIEL HEINTZ HARGITT INSTRUCTIONS FOR FILING 100.00 130.00 0.00 100.00 Make checks payable to: FRANCHISE TAX BOARD Write your SSN on the check or money order. Mail your ES vouchers on or before the due dates to: FRANCHISE TAX BOARD PO BOX 942867-0008 SACRAMENTO, CA 94267-0008 76 numberLastnameYourfirstnameandinitial Head of household Qualifying widow(er)Married filing separately IRS Use Only--Do not write or staple in this space.U.S. Individual Income Tax Return OMB No. 1545-00741040 Department of the Treasury--Internal Revenue Service FormYou areblindYouwerebornbeforeJanuary2, 1954SomeonecanclaimyouasadependentYourstandarddeduction: SAN LUIS OBISPO CA 93401 77 78 SCHEDULE 1 Department of the Treasury Internal Revenue Service OMB No. 1545-0074 Additional Income and Adjustments to Income Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No.01 Name(s) shown on Form 1040 79 Tax Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. SCHEDULE 2 Name(s) shown on Form 1040 Tax 38-44 80 SCHEDULE 3 Nonrefundable Credits Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. OMB No. 1545-0074 Attachment Sequence No.03 81 Other Taxes Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. SCHEDULE 4 Form 1040) OMB No. 1545-0074 Attachment Sequence No.04 Name(s) shown on Form 1040 3,400 82 SCHEDULE 6 Attach to Form 1040. Foreign Address and Third Party Designee Go to www.irs.gov/Form1040 for instructions and the latest information. OMB No. 1545-0074 83 SCHEDULE B Interest and Ordinary Dividends OMB No. 1545-0074 Form 1040)2018 Attach to Form 1040. Department of the Treasury 84 OMB No. 1545-0074SCHEDULECProfitorLossFromBusiness( Form 1040)(Sole Proprietorship)2018Gotowww.irs.gov/ScheduleC for instructions and the latest information.AttachmentDepartmentoftheTreasury Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1 85 SCHEDULE D OMB No. 1545-0074CapitalGainsandLosses( Form 1040)Attach to Form 1040 or Form 1040NR.2018DepartmentoftheTreasuryAttachment Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.Internal Revenue Service(99) 86 ageD (Form 1040) 2018 SummaryPartIII HEINTZ HARGITT 576-61-5400 87 SCHEDULE SE OMB No. 1545-0074Self-Employment Tax Form 1040) 2018Gotowww.irs.gov/ScheduleSE for instructions and the latest information.Department of the Treasury Attachment Internal Revenue Service (99)Attach to Form 1040 or Form 1040NR.Sequence No. 88 Credit for Qualified Retirement Savings Contributions OMB No. 1545-0074 Form 8880 2018AttachtoForm1040orForm1040NR. AttachmentDepartmentoftheTreasury Internal Revenue Service Sequence No.54 Name(s) shown on return 60 89 2018 FORM 8880 CREDIT LIMIT WORKSHEET Keep for Your Records 90 orm 8962 Department of the Treasury Internal Revenue Service Premium Tax Credit (PTC) Attach to Form 1040 or Form 1040NR. Go to www.irs.gov/Form8962 for instructions and the latest information. OMB No. 1545-0074 2018Attachment Sequence No.73 Name shown on your return Your social 300 91 OMB No. 1545-0172DepreciationandAmortizationForm4562(Including Information on Listed Property) Department of the Treasury Attachment Internal Revenue Service (99) Attach to your tax return. Sequence No.179 92 Page 93 018 ROTH IRA RECORD WORKSHEET 576-61-5400 94 2018 QUALIFIED DIVIDENDS and CAPITAL GAIN TAX WORKSHEET - LINE 11a Keep for Your Records 95 Penalty = Amount x Interest Rate x (Days Late / 365 (or 366 if it is a leap year)) FDA 18_TXUSUPW 2018 FORM 2210 UNDERPAYMENT PENALTY WORKSHEET 96 97 Capital Gains and Losses( Form 1040)Attach to Form 1040 or Form 1040NR.2018DepartmentoftheTreasuryAttachment Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.Internal Revenue Service(99)Sequence No.12 98 age2ScheduleDAMT (Form 1040) 2018 SummaryPartIII HEINTZ HARGITT 576-61-5400 99 2018 MAXIMUM ROTH IRA CONTRIBUTION WORKSHEET Keep for Your Records 100 12LSDEPR 2018 FEDERAL DEPRECIATION SCHEDULE NATHANIEL O HEINTZ HARGITT DESCRIPTION DATE METHOD COST PRIOR CURRENT PR SPEC CURR SPEC BASIS PRIOR CURRENT ACCUM ADJ LIFE 179 179 ALLOW ALLOW DEPR DEPR DEPR BASIS SCHEDULE C #001 101 12AMTDEPR 2018 FEDERAL AMT DEPRECIATION SCHEDULE HEINTZ HARGITT 576-61-5400 DESCRIPTION DATE METHOD COST PRIOR CURRENT PR SPEC CURR SPEC BASIS PRIOR CURRENT ACCUM ADJ LIFE 102 voucher is printed at the bottom of this page. NOTE:This is a new scannable voucher approved by the IRS for filing of the 1040-V for the year 2018. This is different than the voucher that is on the IRS website. Mail payment to: NATHANIEL O HEINTZ HARGITT INTERNAL REVENUE SERVICE 5790 ROCKY CANYON RD PO BOX 7704 CRESTON CA 93432 SAN FRANCISCO CA 94120-7704 576615400 QS HEIN 30 0 201812 610 103 019 FEDERAL ESTIMATED TAX WORKSHEET Keep for Your Records 104 019 ESTIMATED PAYMENTOFDepartmentoftheTreasury TAXPAYER’SCOPYFORM1040INDIVIDUALINCOMETAXInternalRevenueService Taxpayer’s Social Security Number Spouse’s Social Security Number For Calendar Year 2019 or Fiscal Year Ending First Name(s) and Initial(s)Last Name(s) FDA M05258P 18_TXCUSTFormSoftwareCopyright1996 - 2019 HRB Tax Group, Inc. 576-61-5400 NATHANIEL O HEINTZ HARGITT 880 105 2019 ESTIMATED PAYMENT OF FORM 1040 INDIVIDUAL INCOME TAX Department of the Treasury PRACTITIONER’SCOPYInternalRevenueService Security Number Spouse’s Social Security Number For Calendar Year 2019 or Fiscal Year Ending First Name(s) and Initial(s)Last Name(s) 106 A voucher is printed at the bottom of this page. NOTE:This is a new scannable voucher approved by the IRS for filing of the 1040-ES for the year 2019. Mail payment to: NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD PO BOX 510000 CRESTON CA 93432 SAN FRANCISCO, CA 94151-5100 QS HEIN 30 0 201912 430 INTERNAL REVENUE SERVICE 107 voucher is printed at the bottom of this page. NOTE:This is a new scannable voucher approved by the IRS for filing of the 1040-ES for the year 2019. This is different than the voucher that is on the IRS website. Internal Revenue Service Mail payment to: Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD PO BOX 510000 CRESTON CA 93432 SAN FRANCISCO, CA 94151-5100 INTERNAL REVENUE SERVICE SAN FRANCISCO, CA 94151-5100 PO BOX 510000 430201912030HEINQS576615400 108 voucher is printed at the bottom of this page. NOTE:This is a new scannable voucher approved by the IRS for filing of the 1040-ES for the year 2019. This is different than the voucher that is on the IRS website. Internal Revenue Service Mail payment to: Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. BWF 1040 Detach Here and Mail with Your Payment NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD PO BOX 510000 CRESTON CA 93432 SAN FRANCISCO, CA 94151-5100 INTERNAL REVENUE SERVICE SAN FRANCISCO, CA 94151-5100 PO BOX 510000 430201912030HEINQS576615400 109 voucher is printed at the bottom of this page. NOTE:This is a new scannable voucher approved by the IRS for filing of the 1040-ES for the year 2019. This is different than the voucher that is on the IRS website. Internal Revenue Service Mail payment to: NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD PO BOX 510000 CRESTON CA 93432 SAN FRANCISCO, CA 94151-5100 INTERNAL REVENUE SERVICE SAN FRANCISCO, CA 94151-5100 PO BOX 510000 430201912030HEINQS576615400 110 2019 CARRYFORWARD INFORMATION 111 DA 2018 ACA MODIFIED AGI WORKSHEET 112 2018 QUALIFIED BUSINESS INCOME DEDUCTION WORKSHEET 18_QBIDBUSSUMMARYFDAFormSoftwareCopyright1996 - 2019 HRB Tax Group, Inc. S1204O SUMMARY 113 018 QUALIFIED BUSINESS INCOME DEDUCTION WORKSHEET 18_QBIDBUSDETAILFDAFormSoftwareCopyright1996 - 2019 HRB Tax Group, Inc. S1204O DETAIL BY BUSINESS 4 HEINTZ HARGITT 115 2018 CALIFORNIA TWO YEAR COMPARISON 116 ORM 540CaliforniaResidentIncomeTaxReturn 576-61-5400 HEIN 117 ide 2 Form 540310218419518CA2D2BWF1040 Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. 401. 10318419518CA2D3BWF1040 Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. Your name:Your SSN or ITIN:X 359.576-61-5400NATHANIEL O HEINTZ Side 4310418418CA2D4BWF1040 Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. 120 310518418CA2D5BWF1040 Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. Your name:Your SSN or ITIN: 953- BWF SCHEDULETAXABLEYEAR CA (540)2018 California Adjustments -- Residents Name(s) as shown on tax return 122 WF CA Schedule CA (540) (2018) 123 ob Expenses and Certain Miscellaneous Deductions 124 BWF Depreciation and CALIFORNIAFORMTAXABLEYEAR Amortization Adjustments3885A2018DonotcompletethisformifyourCaliforniadepreciationamountsarethesameasfederalamounts. Name(s) as shown on tax return 125 oucher at bottom of page. DO NOT MAIL A PAPER COPY OF YOUR TAX RETURN WITH THE PAYMENT VOUCHER. If amount of payment is zero, do not mail this voucher. WHERE TO FILE:Using black or blue ink, make your check or money order payable to the ‘‘Franchise Tax Board.’’ Write the taxpayer’s social security number (SSN) or individual taxpayer identification number (ITIN) and ‘‘2018 FTB 3582’’ on the check or money order. Detach the voucher below. Enclose, but do not staple, payment with the FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0008 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. WHEN TO FILE: Calendar Year - File and pay by April 15, 2019. When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day. ONLINE SERVICES:Use Web Pay and enjoy the ease of our free online payment service. Go to ftb.ca.gov/pay for more information. Do not mail this voucher if you use Web Pay. IF NO PAYMENT IS DUE, DO NOT MAIL THISVOUCHERDETACHHERE DETACH HERE BWF TAXABLE YEAR CALIFORNIAFORMPaymentVoucherfor 2018 Individual e-filed Returns 3582 (e-file) Amount of payment For Privacy Notice, get FTB 1131 ENG/SP.FTB 3582201819518CA35821BWF1040FormSoftwareCopyright1996 - 2019 HRB Tax Group, Inc. voucher and mail to: CAUTION:You may be required to pay electronically. See instructions. 1251186 576-61-5400 HEIN 18 NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD CRESTON CA 93432 126 127 Form at bottom of page. ONLINE SERVICES: Use Web Pay and enjoy the ease of our free online payment service. Go to ftb.ca.gov/pay for more information. You can schedule your payments up to one year in advance. Do not mail this form if you use Web Pay. DETACH HERE FORMTAXABLEYEAR 2019 Estimated Tax for Individuals CAUTION:You may be required to pay electronically. See instructions. 540-ES APE Amount of payment For Privacy Notice, get FTB 1131 ENG/SP. 1201196 Form 540-ES201819518CAES1BWF1040FormSoftwareCopyright1996 - 2019 HRB Tax Group, Inc. WHERE TO FILE:Using black or blue ink, make check or money order payable to the Franchise Tax Board.’’ Write the taxpayer’s social security number (SSN) or individual taxpayer identification number (ITIN) and ‘‘2019 Form 540-ES’’ on the check or money order. Detach the form below. Enclose, but staple, payment with the form and mail to: FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267- 0008 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. do not HEIN 0 NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD CRESTON CA 93432 128 ETACH HERE FORMTAXABLEYEAR 2019 Estimated Tax for Individuals CAUTION:You may be required to pay electronically. See instructions. 540-ES APE Amount of payment For Privacy Notice, get FTB 1131 ENG/SP. Form 540-ES 2018 18 CAES2 BWF 1040 Form Software Copyright 1996 - 2019 HRB Tax Group, Inc. Form at bottom of page. 195 Using black or blue ink, make check or money order payable totheWHERETOFILE: Franchise Tax Board.’’ Write the taxpayer’s social security number (SSN) or individual taxpayer identification number (ITIN) and ‘‘2019 Form 540-ES’’ on the check or money order. Detach the form below. Enclose, but staple, payment with the form and mail to: FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267- 0008 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. Use Web Pay and enjoy the ease of our free online payment service.ONLINE SERVICES: Go to ftb.ca.gov/pay for more information. You can schedule your payments up to one year in advance. Do not mail this form if you use Web Pay. 1201196 do not HEIN 19 0 NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD CRESTON CA 93432 129 ETACH HERE BWF CALIFORNIAFORMTAXABLEYEAR 2019 Estimated Tax for Individuals CAUTION:You may be required to pay electronically. See instructions. 540-ES APE Amount of payment For Privacy Notice, get FTB 1131 ENG/SP. 1201196 Form 540-ES 2018 18 CAES4 BWF 1040 Form Software Copyright 1996 - 2019 HRB, Tax Group, Inc. Form at bottom of page. 195 Using black or blue ink, make check or money order payable totheWHERETOFILE: Franchise Tax Board.’’ Write the taxpayer’s social security number (SSN) or individual taxpayer identification number (ITIN) and ‘‘2019 Form 540-ES’’ on the check or money order. Detach the form below. Enclose, but staple, payment with the form and mail to: FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267- 0008 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. Use Web Pay and enjoy the ease of our free online payment service.ONLINE SERVICES: Go to ftb.ca.gov/pay for more information. You can schedule your payments up to one year in advance. Do not mail this form if you use Web Pay. do not 576-61-5400 HEIN 19 0 NATHANIEL O HEINTZ HARGITT 5790 ROCKY CANYON RD CRESTON CA 93432 100. 130 2019 CALIFORNIA ESTIMATED TAX FOR INDIVIDUALS TAXPAYER’S COPY 01-15-20 100 131 2019 CALIFORNIA ESTIMATED TAX FOR INDIVIDUALS PRACTITIONER’S COPY Number Spouse’s Social Security Number For Calendar Year 2019 or Fiscal Year Ending First Name(s) and Initial(s)Last Name(s) 132 2018 CALIFORNIA DEPRECIATION SCHEDULE DESCRIPTION DATE METHOD COST PRIOR CURRENT PR SPEC CURR SPEC BASIS PRIOR CURRENT ACCUM ADJ LIFE 179 179 ALLOW ALLOW DEPR DEPR DEPR BASIS SCHEDULE C #001 ASSETS GRAND TOTALS: 133 LIENT COPY FDA Form Software Copyright 1996 - 2019 HRB Tax Group, Inc.M0521P 18_8879CC Form 8879 Go to www.irs.gov/Form8879 for the latest information. Return completed Form 8879 to your ERO. (Don’t send to the IRS.) Spouse’s name Taxpayer’s name Submission Identification Number (SID) Internal Revenue Service Department of the Treasury IRS e-file Signature Authorization Taxpayer Declaration and Signature Authorization (Be sure you get and keep a copy of your return)Part II Amount you owe (Form 1040, line 22; Form 1040NR, line 75)5 Refund (Form 1040, line 20a; Form 1040-SS, Part I, line 13a; Form 1040NR, line 73a)4 Federal income tax withheld from Forms W-2 and 1099 (Form 1040, line 16; Form 1040NR, line 62a)3 Total tax (Form 1040, line 15; Form 1040NR, line 61)2 Adjusted gross income (Form 1040, line 7; Form 1040NR, line 35)1 Tax Return Information -- Tax Year Ending December 31, 2018 (Whole dollars only)Part I nts and sources of income I received during the tax year. I further declare that the amounts in Part I above are the amounts from my electronic inc- statements for the tax year ending December 31, 2018, and to the best of my knowledge and belief, it is true, correct, and accurately lists all amou- Under penalties of perjury, I declare that I have examined a copy of my electronic individual income tax return and accompanying schedules and Spouse’s social security number Social security number a)an acknowledgement of receipt or reason for rejection of the transmission, (b)the reason for any delay inprocessingandtoreceivefromtheIRS ome tax return. I consent to allow my intermediate service provider, transmitter, or electronic return originator (ERO) to send my return to the IRS c)the date of any refund. If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH taxes owed on this return and/or a payment of estimated tax, and the financial institution to debit the entry to this account. This authorization is to electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for payment of my federal the return or refund, and 5 4 3 2 1 1-888-353-4537.Payment cancellation requests must be received no later than 2 business days prior identification number (PIN) below is my signature for my electronic income tax return and, if applicable, my Electronic Funds Withdrawal Consent. confidential information necessary to answer inquiries and resolve issues related to the payment. I further acknowledge that the personal to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive contact the U.S. Treasury Financial Agent at remain in full force and effect until I notify the U.S. Treasury Financial Agent to terminate the authorization. To revoke (cancel) a payment, I must 2018 to enter or generate myPINIauthorize Taxpayer’s PIN: check one box only only if you are only if you are entering your own PIN and your return is filed using the Practitioner PIN method. The ERO must complete Part III below. I will enter my PIN as my signature on my tax year 2018 electronically filed income tax return. Check this box don’t enter allzerosasmysignatureonmytaxyear2018electronicallyfiledincometaxreturn. Enter five digits, butEROfirmname to enter or generate my PIN entering your income tax return. ERO firm name Enter five digits, but Practitioner PIN Method Returns Only -- continue below DateSpouse’s signature Don’t enter all zeros method and Pub. 1345,Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns. the taxpayer(s) indicated above. I confirm that I am submitting this return in accordance with the requirements of the Practitioner PIN I certify that the above numeric entry is my PIN, which is my signature for the tax year 2018 electronically filed income tax return for ERO’s EFIN/PIN.Enter your six-digit EFIN followed by your five-digit self-selected PIN. Part III Certification and Authentication -- Practitioner PIN Method Only Don’t Submit This Form to the IRS Unless Requested To Do So ERO Must Retain This Form -- See Instructions Form 8879 (2018)For Paperwork Reduction Act Notice, see your tax return instructions. X NATHANIEL O HEINTZ HARGITT 576-61-5400 4,610 AND R BLOCK 4/8/2019JAMESMONTGOMERY 96411080322 134 RS e-file Signature Authorization OMB No. 1545-0074 Form 8879 2018DepartmentoftheTreasury Internal Revenue Service Submission Identification Number (SID) Taxpayer’s name Social security number Spouse’s name Spouse’s social security number 135 195 136 Appendix F – Logan Baumgartner Tax Return 2019 137 Form1040 Department of the Treasury—Internal Revenue Service (99) U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. 138 Form 1040 (2019)Page 2 139 SCHEDULE 1 Form 1040 or 1040-SR) Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income a Attach to Form 1040 or 1040-SR. a Go to www.irs.gov/Form1040 for instructions and the latest information. OMB No. 1545-0074 2019 Attachment Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? .................................Yes No 140 DO NOT MAIL THIS FORM TO THE FTB FTB 8453-OL 2019 175 REV 02/07/20 INTUIT.CG.CFP.SP 141 3101194 Form 540 2019 Side 1 1 64-3828 LOGAN J RYERSONBAUMGARTNER 36 W FOOTHILL BLVD SAN LUIS OBISPO CA 14-1991 REV 02/07/20 INTUIT.CG. CFP. SP 3102194Side2Form5402019 1443 1443 1443 50776 REV 02/07/20 INTUIT. CG. 3103194 Form 540 2019 Side 3828 1443 1813 1813 1813 370 370 REV 02/ 07/ 3104194Side4Form5402019 403 RYERSON- 3828 REV 02/07/20 INTUIT.CG.CFP. SP 175 3105194 Form 540 2019 Side 5 Your name:Your SSN or ITIN: 02/ 07/ Appendix G – Adam Gong Tax Return 2018 147 Appendix H – John Khallaghi Bank Statement - Proof of Funds and Loan Agreement with Cali Direct 183 84 85 86 Appendix I – Fariba Khallaghi Bank Statement - Proof of Funds and Loan Agreement with Cali Direct 187 88 89 90 Appendix J – Operations Budget 2020 191 ali Direct LLC Timeline and Total Estimates 4/11/20 Estimate based on opening Decmeber 2020 These are projections and may not be exact totals. Cali Direct LCS These Projections do not Calculate tax Phase Details Timeline Estimated Cost Estimated Cost per phase Estimated Total imput to open 1 Bring Project to Life Lease 5 Estimated Initial Sales, FIrst Quarter, First Year Minimum per day Gros Maximum per day Gros First Quarter gross estimate Low/High First Year gross estimate Low/high 1st Q LOw - first Q expenses 1st Q High - 1st Q expenses 1st yr low - 1st yr expenses 1st yr high - 1st year expenses Appendix K – 30 Day Net Agreement 193 194 95 Appendix L – DJ Design Build Out Estimate for Cali Direct 196 Estimate 1101 ADDRESS Calidirect LLC 3563 Suedlo Drive Suite O San Luis Obispo, CA DATE 04/15/2020 TOTAL EXPIRATION DATE 06/15/2020 ACTIVITY AMOUNT Material & Labor 1. Build 2. Build 3. 4. TOTAL $ Estimates are Only Valid for 60 Days of Printed Date. After, are subject to Price Change. Require Deposit down before work begins. Require 10% Deposit down when estimate is signed & agreed upon. First Draw when Job starts. THANK YOU. Accepted By Accepted Date 197 Appendix M – Landscaping Plan for Sueldo Industrial Park 198 Sueldo Plant Briefs 11/04/10 Botanical Name : Arbutus 'Marina' Common Name: Arbutus Plant Type: Tree Plant Size: 12-25' 25-40' Flower Color: P ink Sun: Full s un Water : Habit: Irregular Leaf Color: Dark green Flower Season : Summer Fall Soil Type: San dy soil Loam soil Rocky soil Aver age soil R ich soi l Poor soil Notes: Eve rgreen tree of medium height (20-25') with rosy, pink fl owers in th e Fall Botanical Name: Podoca r pus gracilior Common Name: Fem Pine Plant Type: Coni fer Shrub Plant Si7.e: 6-1 2' 12-25' 25-40' Flower Color: n/a Sun: F un s un Half sun Shade Water: Light water Habit: Br oad Upright Leaf Color: Light green Flower Season: n/a Soil Type: Ave r age soil Well-drained soil Neutr al pH Notes: Botanical Name: Ul mus p anifoli a Common Name: Eve rgr een Elm Plant Type: T ree Plant Size: 25-40' Flower Color: n/a Sun: Full s un Water: Medium water Soil Type: All soils Aver age soil Neu tral pH Notes: Botanical Name: Ani g01.an thos 'Bi g Red ' Common Name: Big Red Ka nga roo Paw Plant Type: Plant Si1.e: Flower Color: 11/a Sun: Water: Soil Type: Notes: Habit: Ar ching Weeping Leaf Color: Dark gree n Flower Season: n/a Habit: Leaf Color: Flower Season: n/a 200 Sueldo Plant Briefs 11/04/10 Botanical Name: Anigoznnthus 'Pink Joey' Common Name: Pink Joey Kangaroo Paw Plant Type: Habit: Plant Size: Leaf Color: Flower Color: n/a Sun: Water: Soil Type: Notes: Botanical Name: Calycanthus occidentalis Common Name: Spice Bush Plant Type: Plant Size: Flower Color: n/a Sun: Water: Soil Type: Notes: Botanical Name: Carex divulsa Common Name: Berkeley Sedge Plant Type: Shrub Grass Plant Size: 1-3' Flower Color: Gold Sun: Full sun Half sun Flower Season: n/a Habit: Leaf Color: Flower Season: n/a Habit: Mound Leaf Color: Green Flower Season: Spring Water: Drought tolerant Medium water Extra summer water Soil Type: All soils Average soil Poor soil Well-drained soil Neutral pH Basic pH Notes: hardy to 15f Botanical Name: Carpenteria californica Common Name: Bush Anemone Plant Type: Shrub Plant Size: 3-6' Flower Color: White Sun: Full sun Half sun Shade Water: Light water Soil Type: Clay soi l Average soil Neutral pH Notes: 2 Habit: Upright Leaf Color: Green Flower Season: Spring Swnmer 201 Sueldo Plant Briefs 11/04/10 Botanical Name: Cercis occide ntalis Common Name: Western Redbud Plant Type: Shrub PlantSb:e: 6-12' 12-25' Flower Color: Red White Sun: Full sun Half sw1 Habit: Broad Round Leaf Color: Green Flower Season: Sprin g Water: Drought tolerant Light water Extra summer water Soil Type: All soil s Any soil condition Neutra l pH Notes: Botanical Name: Common Name: Plant Type: Plant Size: Chondropetalum elephantinum Cape Rush Flower Color: n/a Sun: Water: Soil Type: Notes: Habit: Leaf Color: Flower Season: n/a Botanical Name: Col eone ma pukhrum 'Sunset Gold' Common Name: Golden Breath Of Heaven Plant Type: Shrub Plant Si7.e: 3-6' Flower Color: Gold Yellow Sun: Full sun Half sun Water: Medium water Habit: Round Upright Leaf Color: Green Flower Season: Spring Summer Soil Type: Average soil Well-drained soi l Neutral pH Notes: Botanical Name: Cotoneaster dammeri 'Lowfast' Common Name: Lowfast Cotoneaster Plant Type: Shrub Ground cover Plant Size: Under 1 ' Flower Color: Pink White Sun: FuJI sun Half sun Water : Medium water Habit: Prostrate Leaf Color: Dark gr een Flower Season: n/a Soil Type: Loam soil Rocky soi l Average soil Rich soil Poor soi l Well-drained soil Notes: 3 202 Sueldo Plant Briefs 11/04/10 Botanical Name: Fragaria chilocns is 'Chaval' Common Name: Beach Strawberry Plant Type: Pla nt Size: Flower Col or : n/a Sun: Wa ter: Soil Type: Notes: BotanJ cal Name: Juniperus conferta 'Emerald Sea' Common Name: Shore Juniper Plan t Type: Plan t Size: Flower Color: n/a Sun : Water : Soil Type: Notes: Botanical Name: l\fahonia aquifotium 'Compacta' Common Name: Dwarf Oregon Grape Plant Type: Shrub Plant Si:ze: Under I ' 1-3 ' Flower Color: Yellow Sun: Full sun Half sun Shade Water : Drought tolerant Light water H abit: Leaf Color: Flower Season: n/a Habit: Leaf Color : Fl ower Season: n/a Habit: Prostrate Leaf Color : Dark green Bro nze Flower Season: Spring Soil Type: Average soil Well -drained soil Ne utral pH Notes : native ever green shrub with holly-like leaflets and clusters of yellow flowers in Spring, followed by blue berries . Botanical Name: Muhlenbergia npillaris Common Name: Muhly Plant Type: Plant Si:ze: Flower Color: n/a Sun: Water : Soil Type: Notes: 4 Habit: Leaf Color: Flower Season: o/a 203 Sueldo Plant Briefs 11/04/10 Botanical Name: Phormium 'Bron:r.e Baby' Common Name: Bron1.e Baby F lax Plant Type: Shrub Plant Sire: F lower Color: n/a Sun: W ater: Soil Type: Notes: Botanical Name: Phormium 'Guardsman' Common Name: Guardsman Flax Plant Type: P la nt Sire: Flowe r Color: n/a Sun: Water : Soil Type: Notes: Botanical Name: Phormiurn 'Tom Thumb ' Common Name : Dwarf New Zeala nd Flax Plant Type: Plant Siu: F lower Color: n/a Sun: Water : Soil Type: Notes: Botanical Name: Prunus lyonii Common Name: Catalina Ch err y Plant Type: Shrub Pla nt Siu: 6-12' 12-25' F lowe r Colo r : White Sun: Habit: Leaf Color: F lower Season: n/a Habit: Leaf Color: Fl ower Season: n/a Habit: Leaf Color: Flower Season: n/a H abit: Broad Irregular Upright Leaf Color: Dark gr een Flower Season: Sp ring W ater : Drought tol erant Light wat er Heavy water i'..'BOO!tl Soil Type: All soil s Average ~oil Well-drained soil Neutr al pH Notes: 5 204 Sueldo Plant Briefs 11/04/10 Botanical Name: Rhanu1us callfornica 'Leatherlear Common Name: Coffeeberry Plant Type: Plant Si1.e: 3-6' Flower Color: n/a Sun: Water: Soil Type: Notes: Botanical Name: Ribes sanguineum Common Name: Red Flowering Currant Plant Type: Shrub Plant Si1.e: 6-12' Flower Color: Pink Red Sun: Half sun Shade Water: Light water Medium water Habit: Leaf Color: Flower Season: n/a Habit: Broad Upright Leaf Color: Dark green Flower Season: Winter Spring Summer Soil Type: All soils Average soil Well-drained soil Neutral pH Notes: Ribes viburnifolium Flower Color: Pink Sun: Half sun Deep shad e Water: Drought tolerant Light water Soil Type: All soils Average soil Neutral pH Notes: Botanical Name: Heuche ra 'Palace Purple' Common Name: Coral Bells Plant Type: Perennial Plant Siu: 1-3' Flower Color: Pi nk Sun: Full sun Half sun Shade Water: Medium water Habit: Arching Broad Irregular Leaf Color: Dark green Flower Season: Winter Spring Habit: Columnar Upright Leaf Color: Brown Red Flower Season: Summer Soil Type: Sandy soil Loam soil Rich soil Well-drained soil Neutral pH Notes: 6 205 6 N'l'l .... .tAAnc. a......,._ ... ~ ............... ...... ==.-:-..:."'::•: t,::-...-;:=:"' .... -=.:::-....... ~ a-.. ....... .._ ....... ........ 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Detail A: Options for Office Front Planters i - 1=----.,........-,,. r.-.-I i::::t-1:rl.;;':;'"~-- Not.,_, l~flo.t<,,.-11.U..t..o-..... ,,...IM ... . 1.11_ ..... ,....,. ........ ~ ... -.i...1""""'"'""..,._ ........ """"" w.'""'" •.• _,.. ..... u.r-""-·•,,,.._,_ .... ~ 207 Appendix N – Cali Direct Lease Agreement 208 209 10 11 212 213 214 15 216 217 218 219 220 221 22 223 224 225 26 27 28 29 Appendix O – Cali Direct Transportation and Delivery Procedures 230 CALI DIRECT Transportation and Delivery Procedures BCC Regulation Training Procedures Delivery Employees All deliveries of cannabis goods will be performed by a delivery employee who is directly employed by Cali Direct. Each delivery employee of Cali Direct will be at least 21 years of age. All deliveries of cannabis goods will be made in person. A delivery of cannabis goods will not be made through the use of an unmanned vehicle. The process of delivery begins when the delivery employee leaves the retailer’s licensed premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the retailer’s licensed premises after delivering the cannabis goods, or attempting to deliver cannabis goods, to the customer. During the process of delivery, the licensed retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops. A delivery employee of Cali Direct will, during deliveries, carry a copy of the retailer’s current license, the employee’s government-issued identification, and an identification badge provided by the employer. Prior to providing cannabis goods to a delivery customer, a delivery employee will confirm the identity and age of the delivery customer and ensure that all cannabis goods sold comply. Cali Direct will maintain an accurate list of the retailer’s delivery employees and will provide the list to the Bureau upon request. Delivery to a Physical Address A delivery employee may only deliver cannabis goods to a physical address in California. A delivery employee will not leave the State of California while possessing cannabis goods. A delivery employee will not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency. This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the delivery is authorized by and consistent with applicable tribal law. A delivery employee may deliver to any jurisdiction within the State of California provided that such delivery is conducted in compliance with all delivery provisions of this division. A delivery employee will not deliver cannabis goods to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center. Delivery Vehicle Requirements Cali Direct’s delivery employee, carrying cannabis goods for delivery, 231 Cannabis Goods Carried During Delivery 232 Delivery Request Receipt Cali Direct will prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods. The delivery request receipt will contain the following: The name and address of the licensed retailer The first name and employee number of the licensed retailer’s delivery employee who delivered the order The first name and employee number of the licensed retailer’s employee who prepared the order for delivery The first name of the customer and Cali Direct-assigned customer number for the person who requested the delivery The date and time the delivery request was made The delivery address A detailed description of all cannabis goods requested for delivery. include the weight, volume, o r any other accurate measure of the amount of all cannabis goods requested; The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. At the time of the delivery, the delivery employee of the retailer will provide the customer who placed the order with a hard or electronic c opy of the delivery request receipt. The delivery employee will retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer’s records. Delivery Route 233 Receiving Shipments of Inventory Cali Direct will receive a shipment of cannabis goods only from a licensed distributor or licensed microbusiness authorized to engage in distribution. Inventory Documentation Cali Direct will maintain an accurate record of its inventory. Cali Direct will provide the Bureau with the record of inventory immediately upon request. Cali Direct will keep a record of the following information for all cannabis goods the licensed retailer has in its inventory: A description of each item such that the cannabis goods can easily be identified An accurate measurement of the quantity of the item The date and time the cannabis goods were received by the licensed retailer The sell-by or expiration date provided on the package of cannabis goods, if any The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis goods to the licensed retailer The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs. Inventory Reconciliation Cali Direct will be able to account for all of its inventory. In conducting an inventory reconciliation, Cali Direct will verify that the licensed retailer’s physical inventory is consistent with the licensed retailer’s records pertaining to inventory. The result of inventory reconciliation will be retained in the licensed retailer’s records and will be made available to the Bureau upon request. If Cali Direct identifies any evidence of theft, diversion, or loss, the licensed retailer will notify the Bureau and law enforcement. If a significant discrepancy as defined in section 5034 of this division is discovered between Cali Direct’s physical inventory and the licensed retailer’s inventory records, the licensed retailer will notify the Bureau and law enforcement. Retailer Premises to Retailer Premises Transfer A licensee who holds multiple retail licenses may arrange for the transfer of cannabis goods from one licensed retail premises to another licensed retail premises if both ret ail licenses are held under the same ownership. Cannabis goods transferred to a licensed retail premises under subsection (a) of this 234 section may be sold by the licensed retailer receiving the cannabis goods only if the cannabis goods comply with all requirements found in the Act and this division. The transportation of cannabis goods under this section must comply with all requirements found within the Act and this division. Any movement of cannabis goods under this section will be properly entered into the state track and trace system. 235 Appendix P – Cali Direct Standard Operating Procedures 236 CALI DIRECT, LLC STANDARD OPERATING PROCEDURES Cali Direct, LLC Non-Storefront Retail Delivery Standard Operating Procedures This document is private and confidential to its intended recipients and should not be copied, distributed, reproduced or shared with unauthorized sources. This document is for informational purposes only. The information in this document is confidential to whom it is address and should not be disclosed to any other sources or parties. This document is for informa- tional purposes only and cannot guarantee a level of federal, state, city or county regulatory or financial compliance 237 CALI DIRECT, LLC 4 TABLE OF CONTENTS OPERATIONS .............................................................................................................3 OPENING PROCEDUERES ...............................................................................................3 CLOSING PROCEDURES ..................................................................................................3 PHONE PROTOCOL ...........................................................................................................3 STEPS TO THE PERFECT SALE .......................................................................................4 VISITORS AND VENDORS .................................................................................................5 PROCEDURES FOR ALL VISITORS ..............................................................................5 DELIVERY OR PICK-UP OF CASH ................................................................................5 DELIVERY OF CANNABIS PRODUCT AND SUPPLIES ................................................5 PICK-UP OF CANNABIS PRODUCT ..............................................................................6 GUESTS OTHER THAN DELIVERIES AND PICK-UPS .................................................6 WALK-UP AND UNEXPECTED VISITORS .....................................................................6 SECURITY PROCEDURES ........................................................................................6 SECURITY PLAN ................................................................................................................6 OPERATING HOURS SECURITY ...................................................................................7 AFTER HOURS SECURITY ............................................................................................7 LIMITED-ACCESS AREAS .............................................................................................7 EMPLOYEE SAFETY ......................................................................................................7 ROBBERY POLICY & PURPOSE .......................................................................................7 ROBBERY TRAINING FOR STAFF ................................................................................7 DURING A ROBBERY .....................................................................................................8 AFTER A ROBBERY .......................................................................................................9 FIRE PROCEDURES ..........................................................................................................9 INVENTORY PROCEDURESS ...................................................................................9 SECURE STORAGE ...........................................................................................................9 FULFILLMENT ..................................................................................................................10 TRACK AND TRACE .........................................................................................................10 NON- LABORATORY QUALITY CONTROL PROCEDURES ...................................10 COMPLIANCE – LABELING, PACKAGING AND TESTING .............................................10 PRODUCT TESTING ........................................................................................................10 QUALITY CONTROL – MANUFACTURING PROCEDURE .....................................11 DELIVERY PROCEDURES ......................................................................................11 DELIVERY DRIVERS ........................................................................................................11 MORNING SAFETY CHECK .........................................................................................11 BREAK POLICY ............................................................................................................12 DELIVERY ARRIVAL & DEPARTURE ...........................................................................12 CASH & RECEIPT HANDLING .....................................................................................12 SECURITY AND SAFETY FOR DELIVERY ..................................................................12 DELIVERY LOCATIONS ...............................................................................................12 STEPS TO A PERFECT DELIVERY ..............................................................................13 SAFETY TIPS ................................................................................................................13 SAFETY TIPS WHILE COMPLETING DELIVERY ORDERS WITH CLIENTS .............14 DROPBOX .........................................................................................................................14 238 CALI DIRECT, LLC NEW CLIENTS ..................................................................................................................15 REQUIRED DOCUMENTS ...............................................................................................15 WHAT IF?” SITUATIONS .................................................................................................16 UNABLE TO LOCATE DELIVERY LOCATION .............................................................16 SKIPPING A CONFIRMED TIME WINDOW ..................................................................16 SKIPPING AN UNCONFIRMED TIME WINDOW ..........................................................16 UNFULFILLED TIME REQUESTS ................................................................................17 INCORRECT DELIVERY PACKS ..................................................................................17 INCORRECT RECEIPTS ..............................................................................................18 RETURNING AFTER 8 PM ...........................................................................................18 WHEN TO CONTACT THE MAIN OFFICE .......................................................................18 REASONS TO DISCONTINUE SERVICE .........................................................................18 DAILY LIMITS ....................................................................................................................19 TRANSPORTATION PROCEDURES ........................................................................19 SAFE DRIVING TIPS ........................................................................................................20 IN CASE OF EMERGENCY ..............................................................................................20 TOOLS FOR THE ROAD ..................................................................................................21 SMART PHONE APPLICATIONS ......................................................................................21 ROUTE SHEETS ...............................................................................................................21 CLIENT NOTES ................................................................................................................21 DRIVER REPORTS ...........................................................................................................22 WASTE DISPOSAL PROCEDURES .........................................................................22 SOLID WASTE ..................................................................................................................22 239 CALI DIRECT, LLC OPERATIONS The Standard Operating procedures for Cali Direct, will detail all procedures for operating all three types of cannabis activities that will be taking place at 3563 Sueldo Road, Suite O in the city of San Luis Obispo. Cannabis Retail Non-Storefront (Mobile Delivery): License Type 9 must have a licensed premise, but is not open to the public. Cali Direct will conduct sales exclusively by delivery to customers. Cali Direct, LLC Employees: 2-3 full time employees will operate the Non-Storefront Retail (Mobile Delivery) facility and 3 drivers will deliver cannabis goods to customers: 1.Business Owner/Manager (Authorized Employee) 2.Office Manager/Safety Manager/Dispatch Operator/Inventory Manager (Authorized Employee 3.Delivery Driver #1 (potential Authorized Employee) 4.Delivery Driver #2 (potential Authorized Employee) 5.Delivery Driver #3 (potential Authorized Employee) OPENING PROCEDUERES CLOSING PROCEDURES PHONE PROTOCOL Medical and recreational cannabis services have a unique, specialized service relationship with their clients, be it from the distribution or delivery services. It is different than other industries in the sense that it requires a high degree of sensitivity to individual clients’ requests and needs, as well as, safety protocols and procedures. A few ways in which Cali Direct ensures this sensitivity and care are: Actively listening - listen to clients very carefully so that you can determine their individual needs. Knowledge – extensive knowledge of the product and continual education and research. Work/Life Balance - Maintain separation of personal and work lives to keep calm and focused for clients. 240 CALI DIRECT, LLC Special Note: Staff members are clients too. All employees will treat fellow staff members with the same respect and compassion they would treat another client. Answering the phones is primarily the responsibility of the dispatch operator, who ideally will answer the phone by the second ring but always within 3 rings. That said, it is important that all staff members understand phone protocol, provided below. How to answer the phone: When answering the Cali Direct phones, the following should always be provided to the caller: Good morning! Thank you for calling Cali Direct; how may I help you today?” STEPS TO THE PERFECT SALE After Greeting, if the client is placing an order, ask for their first and last name, verify Date of Birth Clients who are 21 or older are approved to purchase recreational cannabis products Clients who are 18 or older with a Doctor’s Recommendation are approved to purchase medicinal cannabis products If the caller is new to Cali Direct, create a client profile. Advise them that they must provide recom- mendation and/or government issued ID to receive delivery. A new client profile will consist of Name and address Date of Birth Phone Number Email Address The Dispatch Operator should determine what the client WANTS (type of product), NEEDS (quantity), and wants to SPEND (price). Use “primer phrases” to begin the selection process. For example: Do you know what you’re interested in today?” How much would you like (quantity) to order?” (Check to see that the item is in stock.) If the client DOESN’T know what they want: Find out what type of cannabis they are looking for (smokable, edible, concentrate, etc.) What has worked for you in the past?” Typically, clients will ask for recommendations. Try to choose up to 3 different products to offer. Refrain from giving any medical advice. If the client doesn’t understand the product, inform them about the difference between Indica vs. Sativa, particularly in terms of how the specific products are used Once a choice is made, determine quantity and the grade (low, mid, high). Explain that the grading and advise of any specials. Ask if the client wants any other products. Close the call by giving payment instructions, total of the sale and saying “Thank you”. VISITORS AND VENDORS 241 CALI DIRECT, LLC All visiting delivery drivers, pick-up drivers, walk-in vendors, or guests must be given a Visitors Badge, sign the Visitor’s Log, and escorted to their destination by an Authorized Employee. All expected Vis- itors should be by appointment only. Unexpected Visitors should ring the doorbell, announce them- selves and purpose of visit and show ID into the camera. All Visitors will have limited access while at the facility. PROCEDURES FOR ALL VISITORS When a Visitor is expected, it should be by appointment only. Make sure to have a Visitor’s badge for every person who is expected to enter the facility. Make sure to have a clipboard ready before Visitor gets to facility. The clipboard and Visitor Badges will be located on the entrance/exit door at the front of the facility. Authorized employee will verify the Visitor(s)’s Driver License to ensure they have been authorized to enter the facility. At this time the Visitor(s) will sign the Visitor’s Log, and each visitor will be giv- en a Visitor’s Badge. Authorized Employee will escort Visitor to their destination, once there, they will stay with the Visi- tor unless otherwise stated. Once Visitor is done with their appointment, the Authorized Employee will make sure the Visitor is safely and securely off premises. DELIVERY OR PICK-UP OF CASH DELIVERY OF CANNABIS PRODUCT AND SUPPLIES 242 CALI DIRECT, LLC PICK-UP OF CANNABIS PRODUCT GUESTS OTHER THAN DELIVERIES AND PICK-UPS If visitor is a guest of the facility, inspector, official or other person(s) with an appointment, the E - ployee will have them sign the Visitor’s Log and will give them a visitor’s badge and escort them into the facility. Once there, the Authorized Employee must stay with the Visitor or may leave the Visitor depend- ing on the nature of the visit. When the Visitor is ready to leave, Authorized Employee will escort them to the main entrance. Revert to “Procedures for All Visitors” found above to continue WALK-UP AND UNEXPECTED VISITORS Walk-up and unexpected Visitors will ring the buzzer on the building. Authorized Employee will ask Visitor to show ID into the camera for verification. Once verified, t Employee will determine the purpose of the visit. A Manager or Authorized Employee must be contacted and must give a verbal authorization to allow the Visitor on the premises. If Visitor is authorized, Authorized Employee will have them sign the Visitor Log and given a Visi- tor’s Badge. Authorized Employee is to accompany the visitor while in the facility. When the Visitor is ready to leave the Authorized Employee will escort them through the Entrance/ Exit door and through the gate. Revert to “Procedures for All Visitors” found above to continue 243 CALI DIRECT, LLC SECURITY PROCEDURES SECURITY PLAN OPERATING HOURS SECURITY AFTER HOURS SECURITY LIMITED-ACCESS AREAS ROBBERY POLICY & PURPOSE 4 CALI DIRECT, LLC ROBBERY TRAINING FOR STAFF DURING A ROBBERY 5 CALI DIRECT, LLC AFTER A ROBBERY FIRE PROCEDURES It is extremely important that staff members take the appropriate measures to protect themselves and to assist the Fire Department during and after a fire. The following steps and actions should be followed whenever possible. These instructions have been communicated to employees in the Cali Direct Safety Handbook. If you discover a fire, you should Immediately signal other employees of the fire and call 9 1 to report the fire Turn off electrical equipment and close doors against the fire Exit the building using the nearest safe exit. Inform your supervisor or designee if anyone needs assistance. 246 CALI DIRECT, LLC INVENTORY PROCEDURESS SECURE STORAGE FULFILLMENT 247 CALI DIRECT, LLC NON- LABORATORY QUALITY CONTROL PROCEDURES COMPLIANCE – LABELING, PACKAGING AND TESTING Cali Direct obtains all products from a licensed Distributor and will ensure they are labeled with re- sults pursuant to California law. Cali Direct will also utilize a California State licensed laboratory for in-house spot testing to assure their continuing quality, strength and purity. The required testing techniques are ISO accredited and include gas chromatography/mass spectrom- etry, gas chromatography/flame ionization detection, and plate culture analysis Testing on all smokable products (flowers and concentrates) and edibles is performed by the labor - tory taking samples to test for molds, pathogens and when appropriate, residual solvents (in the case of solvent-extracted concentrates). All flowe , edibles, tinctures and topical are tested by the Distribu- tor and labeled with dosages and/or ratios. 248 CALI DIRECT, LLC QUALITY CONTROL PROCEDURE All labeling and packaging will be in compliance with all State requirements. Each employee will receive compliance training and a reference manual with packaging procedures. Special attention will be paid to hygiene, cleanliness and safety. Quality Control and Safety procedures will be posted throughout the facility where cannabis is packaged. In the event that there are any complaints or recalls due to product quality, they will be addressed im- mediately. The Office Manager will pull the appropriate records pertaining to the product in question. All complaints or recall issues will be verified, documented and relayed to the State when applicable. 249 CALI DIRECT, LLC DELIVERY PROCEDURES DELIVERY Team members working as Delivery Drivers are typically expected to perform the following tasks throughout the course of a shift: Deliver orders with exemplary client service in a timely and legal manner. Ensure that all Delivery transactions are recorded accurately and efficientl . Work in a safe and responsible manner. Ensure client confidentialit . Maintain company vehicles. Perform other duties as assigned by supervisors. Represent Cali Direct in a professional manner MORNING SAFETY CHECK BREAK POLICY Except for certain exemptions, all employees working five or more hours in a day are entitled t unpaid, 60-minute meal period. Employees receive one 15-minute, paid break for every four hours worked. Employees must record the beginning and ending time of lunch on their route sheet every day if unable to clock-in/out. If an associate chooses to waive a break, that must be indicated on the timesheet/drivers’ log for every break that was declined. 250 CALI DIRECT, LLC DELIVERY ARRIVAL & DEPARTURE CASH & RECEIPT HANDLING SECURITY AND SAFETY FOR DELIVERY DELIVERY LOCATIONS ACCEPTABLE:UNACCEPTABLE: Doorway • Street corner Living room • Public parking lot Apartment lobby • Parking structures Main Offic • Inside a vehicle 251 CALI DIRECT, LLC STEPS TO A PERFECT DELIVERY Provide excellent client service throughout the entire experience. Allow room to make accommodations for client request. Provide an “Initial Call” to confirm delivery time, location, payment and necessary documents wit the client. Provide a “Heads-Up Call” before or at arrival, unless the client does not want one. Arrive to the client with warmth, friendliness, focused attention and sensitivity. Inspect the client’s ID. Photograph the client’s recommendation if noted on the Route Sheet. Confirm the client s complete satisfaction with the products. Adjust the receipt if necessary. Collect payment and signature. Submit Driver Report. Submit any photos to Dropbox. SAFETY TIPS 2 CALI DIRECT, LLC4 SAFETY TIPS WHILE COMPLETING DELIVERY ORDERS WITH CLIENTS DROPBOX Dropbox is a service that allows devices and phones to share files inside of a single common folder, the Dropbox; Dropbox is often updated and redesigned. It is a single folder that can be accessed by the driver’s smart phone and the Main Office computers After taking photos of client documents, submit the photos by opening Dropbox at the end of the night: Ensure that you have navigated to the “Camera Uploads” folder. Upload the photos while you write your Driver Report. Ensure that the files completed uploading Open the “Photos” application and delete the photos. NEW CLIENTS To remain in compliance with all applicable regulations, it is essential that new clients be fully docu- mented. To offer the most satisfactory client experience, clients must be fully informed of the services offered by Cali Direct, the benefits they are entitled to as members, the policies governing access to 253 CALI DIRECT, LLC REQUIRED DOCUMENTS All Delivery clients are required to show a valid government ID. Check the expiration dates and Date of Birth. An expired license with a temporary DMV paper license is acceptable. Ve teran’s ID for discount If the license is expired, the client must also provide the temporary paper ID No clients under the age of 18 will be allowed to purchase medical cannabis and must show a valid Medi- cal Recommendation issued by the State of California. Your Route Sheet may note that you should check their recommendation and ID. WHAT IF?” SITUATIONS There are many ways that deliveries may not go as expected, or according to plan. It is important that drivers have backup plans of action in the event one of these situations occurs. Familiarize yourself with the possible scenarios discussed here and know what to do if one of these happens to you. 254 CALI DIRECT, LLC UNABLE TO LOCATE DELIVERY LOCATION Don’t panic! This is part of the reason why there are delivery windows; stay in a positive frame of mind so you can provide excellent client care. Scan the area briefly for clues Sometimes the GPS is completely off. Sometimes it navigates to the backyard. Is there an alternate program you can try? Call the client with a “Heads-Up Call” and ask for more details: Is there a nearby cross street or landmark? Do you have the right address and zip code? Remember to stay positive! After exhausting all other options, contact Main Office for support. SKIPPING A CONFIRMED TIME WINDOW Call the client before or at arrival. Record the time of your arrival and leave a voicemail with the client. Wait at least 15 minutes. Call the client again. Leave a voicemail asking the client to contact the Main Office to set up a future deliver . Have the Main Office leave a voicemail If you successfully contact the client, determine if you have enough time to wait for the client; you must wait at least 15 minutes. Report the wait time in your Driver Report. SKIPPING AN UNCONFIRMED TIME WINDOW Do not attempt unconfirmed deliveries. All deliveries must be confirmed Leave a voicemail on the initial call. Later, call the client a second time but don’t leave a voicemail. During the delivery window, call for a third time and leave a voicemail explaining that you will must move on if Main Office does not receive a confirmation soon; this is the “Skip oicemail.” Continue other scheduled Delivery appointments. UNFULFILLED TIME REQUESTS If we are unable to fulfill a time request, it is the drive ’s responsibility to explore other options for de- livery. Explore every option before accepting a cancellation or rescheduling for the next day! Are you flexible with your times of availability? Is there another time that could work for both o us?” Always check to see if they absolutely must have it when they ask. Sometimes they don’t have a necessity but just entered a time because they thought they were supposed to. 255 CALI DIRECT, LLC Some of our clients take delivery at work or outside of their home, is that possible?” Perhaps you can meet them somewhere else that is within our safety guidelines. Some clients don’t know we will delivery to workplaces or other addresses. Would you mind taking delivery tomorrow? I can offer you priority routing by guaranteeing a one- hour window tomorrow. If no compromise can be found: I apologize that we cannot meet your requested delivery time, however, to provide the free delivery service and retain the cost of medicine I am obligated to route clients in the most efficient manne . is the time window I can offer you today or we can? guarantee a time window for tomorrow. We could also change your order to pickup. I apologize for the inconvenience.” INCORRECT DELIVERY PACKS Occasionally there are human errors Apologize for the mistake. Offer solution to correct the problem Adjust the receipt for the accepted items. There are no credits given. You may accept a slightly lower cash amount because the client did not have the opportunity to make change. Determine if the client needs to place an order at the next shipping point. Contact Main Office after leaving the client to place the orde . Do not call the Main Office while with the client unless necessar . Adjust the receipt total, including the free item, in the Point of Sale software at the end of the night. Report the discrepancy to your manager, by email. Include “Incorrect Delivery Inventory”, the client name, and order number in the subject line. Describe the products and resolution in the email and include the initials of the Inventory employ- ee who packed the order. Report the Incorrect Delivery Pack in your Driver Report, including the items needed for a fol- low-up order. Ensure client satisfaction INCORRECT RECEIPTS Look at total on the Route Sheet; are there notes for an adjusted total? Check the item totals on the packaging and the receipt. Check the subtotal. Check for applicable veteran or senior discounts. Check the tax rate. Offer solution to correct the problem Ensure client satisfaction Contact Main Office if necessar . Document in Driver Report. 256 CALI DIRECT, LLC RETURNING AFTER 8 PM WHEN TO CONTACT THE MAIN OFFICE DO NOT CALL FOR: REASONS TO DISCONTINUE SERVICE 257 CALI DIRECT, LLC DAILY LIMITS 258 CALI DIRECT, LLC TRANSPORTATION PROCEDURES SAFE DRIVING TIPS Cali Direct Drivers are encouraged to use the “Five Seeing Habits” of safe driving. An easy way to remember the habits are -” All Good Kids Like Milk” - standing for Aim High in Steering, Get the Big Picture, Keep Your Eyes Moving, Leave Yourself an Out, Make Sure They See You. Go ahead, give it a try, you’ll be safer for it. FIVE SEEING HABITS: Aim high in steering: Look as far down the road as possible to uncover important traffi information to make appropriate decisions. Get the big picture: Maintain the proper following distance so you can comfortably determine the true hazards around your vehicle. Don’t tailgate others. Keep your eyes moving: Scan - but don’t stare. Constantly scan for changing traffic conditions Leave yourself an out: Be prepared. Surround your vehicle with space in front and at least on one side to escape conflict Make sure they see you: Communicate in traffic with your horn, lights and signals to establish eye contact with motorists and pedestrians. Be reasonably sure of people’s intentions. IN CASE OF EMERGENCY Accidents Pull over to a safe location Is anyone injured? If so, contact the police Collect insurance information Collect information from any witnesses Take photos Contact Main Office and managemen Contact Enterprise immediately if car is not drivable 259 CALI DIRECT, LLC Write accident report email Break Down, flat tire, or lock ou Contact Main Office and managemen TOOLS FOR THE ROAD Driver Binders Important documents to be kept stored with you while out on the road How to Report an accident? Copies of Vehicle Insurance and Registration Information Business Permit State License New Client Form SMART PHONE APPLICATIONS ROUTE SHEETS Client names - refer to clients by their first name unless requested otherwise Addresses - always confirm the address Time requests and special instructions - confirm that the client s request has not changed when you make the “Initial Call.” Required documents - remind the client to have the required documents on both the “Initial Call” and the “Heads Up Call.” Check the documents on arrival. Photograph the documents if noted on the Route Sheet. Required client forms - these forms may be noted on your route sheet. Always carry extra copies in the clipboard. 260 CALI DIRECT, LLC CLIENT NOTES DRIVER REPORTS 261 CALI DIRECT, LLC WASTE DISPOSAL PROCEDURES SOLID WASTE Any non-cannabis solid waste and recycling that is produced will be considered household waste and treated as such: solid waste and recycling will be collected in 2 x 64-gallon garbage and recycling contains kept inside the premises and will be emptied as needed into a 3-yard outdoor garbage and 3-yard out- door recycling dumpster. The landlord of the property will be responsible for the removal of solid waste from the premises and will be using the San Luis Garbage Co. as the garbage and recycling collection agency to haul solid waste and recycling to their respective disposal locations. It is predicted that the majority of the waste produced from Cali Direct will be recyclable. In the event that some of the waste is cannabis material, the following will be done: All cannabis waste will be weighed and logged into Track and Trace. Then collected in a container marked “cannabis waste” in a centralized location not accessible to unauthorized personnel. All cannabis waste will be collected by a licensed Distribution company and disposed of according to State Law Upon collection of the waste, the Distribution company will weigh the material and put into a dis- posal container. The appropriate shipping manifest will be filled out, signed and kept for futur records. 262 Appendix Q – Lighting Plan 263 CALI Appendix R – Cali Direct Letter of Insurance Eligibility 265 Appendix S – Sentinel Security Solutions Invoices 267 268 NAME/INFO DESCRIPTION UNIT PRICE QTY PRICE BID SPECS JOB SPECS 9 0 SUB TOTAL $ TERMS AND AGREEMENT/CONTRACT PO Box 247 PAYMENT SCHEDULE DUE UPON ACCEPTANCE Client Signature Date Time 07/29/2019 05:16 Total Amount Deposit Amount 271 LOCATION SYSTEM PACKAGE DATE COMMENT 272 273 NAME/INFO DESCRIPTION UNIT PRICE QTY PRICE BID SPECS JOB SPECS 274 275 SUB TOTAL $ 276 LOCATION SYSTEM PACKAGE DATE COMMENT 277 278 NAME/INFO DESCRIPTION UNIT PRICE QTY PRICE INTERIOR BUILDING ACCESS CONTROL 279 280 UB TOTAL $ TERMS AND AGREEMENT/CONTRACT PO Box 247 PAYMENT SCHEDULE DUE UPON ACCEPTANCE 281 Appendix T – Bureau of Cannabis Control Premises Diagram 282 BCC-LIC-011 (Rev. 7/18) Bureau of Cannabis Control State of California Gavin Newsom, Governor www.bcc.ca.gov PREMISES DIAGRAM The premises diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows and doorways. The activities in each room and the location of all cameras must be identified on the diagram. For more detailed information see the instructions on the back. Full Name of Applicant License Type Applied For Proposed 283 Appendix U – Cali Direct Odor Mitigation Equipment 284 85 286