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HomeMy WebLinkAboutCoastal Delivery SLO, LLC Permit Application - completeCITY OF SAN LUIS OBISPO Community Development Department 919 Palm Street, San Luis Obispo, CA 93401 805.781.7170 Commercial Cannabis Business Operators Permit Application A. Business Information Business Name: Property Address: Assessor Parcel Number: Zoning Designation: B. Business Type (Check all that apply) Cultivation - Specialty (Up to 5,000 Sq. Ft. Max) Cultivation - Small (5,001 - 10,000 Sq. Ft. Max) Cultivation – Nursery (Up to 10,000 Sq. Ft. Max) Manufacture (Non-volatile Raw Product Extraction) Manufacture (Cannabis Infusion) Manufacture (Itinerant – No permanent facility) Manufacturer (Research and Development) Distributor Testing Laboratory Retailer Storefront (Adult-use) Retailer Storefront (Medical) Retailer Storefront (Adult-use and Medical) Retailer Non-storefront (Adult-use) Retail Non-Storefront (Medical) Retail Non-storefront (Adult-use and Medical Transporter Microbusiness (No more than 50% GR* from cultivation, distribution and manufacturing) Microbusiness (More than 50% GR* from cultivation, distribution and manufacturing) GR – Gross Receipts C. Definitions Applicant - The entity petitioning for the Cannabis Business Operator Permit. Principal(s) - The individual members of the applicant team. Primary Principal - An individual who has a 10% or greater ownership stake of the applicant business , which includes partners, officers, directors, and stockholders of every corporation, limited liability compa ny, or general limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; the managers of the commercial cannabis business. Operator - An applicant that has been licensed and conducts or conducted active cannabis operations. Majority - A greater number; more than half. An equal number does not constitute a majority. D. Applicant Information Name of Primary Responsible Party Completing the Application: Title: DOB: Social Security No: If applicant is a not for profit, corporation, partnership or other business entity, please identify: Name of Business Entity: Type of Ownership: Federal Tax Id: Start Date: Mailing Address: Malante Hayworth Co-Chief Executive Officer Limited Liability Company 819 Reddick St, Santa Barbara, CA 93103 Coastal Delivery SLO, LLC 004-921-007 Coastal Delivery SLO, LLC C-S 01/14/2019 Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email E. Additional Responsible Party Information Name: Title: DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email Please attach additional sheets if there are more than 2 Responsible Parties. F. Information on Property Owner or Landlord Name: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s Statement of Consent to operate a commercial cannabis business on the property. G. Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: City or County: Start Date: End Date: Business Name: Business Type: Please attach additional sheets if necessary. Julian Michalowski Co-Chief Executive Officer See attached California Coastal Investments, LLC 2436 Broad St, San Luis Obispo, CA 93401 2 Required Submissions (Please check the box for each attachment) Please attach all applicable documents listed below as part of your application as they pertain to your business type. For any items that do not apply to your business type, please provide a brief explanation as to why they do not apply. Business Operations Plan Business Plan: A plan describing how the commercial cannabis business will operate in accordance with City code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the site. Community Relations Plan: A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds (when available). Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s permit, and the applicant’s most recent year’s financial statement and tax returns (for first time applicants, the business operations tax account will be set up in-house after the application has been submitted). Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cannabis business. Budget: A copy of the applicant’s most recent annual budget for operations (If available) Financial Capacity: Financial information such as bank balances, available loans and other sources of funding the enterprise. Products and Services: A list/description of the general products and services the business will provide. Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support. Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by the business to the community. Security Plan: A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the business site. The security plan must be prepared by a qualified professional. Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate security lighting for the business site. Site and Floor Plans: A dimensioned site plan of the business site, including all buildings, structures, driveways, parking lots, landscape areas and boundaries. Also provide dimensioned floor plans for each level of each building that makes up the business site, including the entrances, exits, walls and cultivation areas, if applicable. The plans shall also include the following information about the site: current zoning, parking requirements, consistency with development standards for the zone, if new development planned for the site, and any other site development information. Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists for the use. Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings. Hazardous Materials Plan: To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state and local requirements for management of such substances. Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free power sources to provide reliable and efficient energy solutions for their business. H. City Authorization I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification of the information contained on this application. I. Indemnification I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee under the City of San Luis Obispo regulations for Commercial Cannabis Businesses, shall not become a personal liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall defend with counsel acceptable to the City), indemnify and hold harmless the City of San Luis Obispo, the San Luis Obispo City Council, and its respective officials, officers, employees, representatives, agents and volunteers from any liability, damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedi ngs, or judgments including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) against the City to attach, set aside, void or annul, any cannabis -related approvals and actions and strictly comply with the conditions under which such permit is granted, in any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys’ fees. J. Nonrefundable Filing Fee I, the applicant, understand and accept that the nonrefundable filling fee must be submitted with the competed Commercial Cannabis Business Operators Permit Application and will be retained by the City regardless of the out- come of the application review. K. Background – Request for Live Scan Services I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California Form BCIA 8016, as determined by the City of San Luis Obispo, by a duly authorized business must be provided for the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and interested parties. L. Disqualification Application was received late Application is incomplete or inaccurate Facility does not meet City business licensing standards More than one application is received for the same cannabis business type on one property (stacking of applications) Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application E. Additional Responsible Party Information E. Additional Responsible Party Information Name: Josh Ginsberg Title: Chief Operating Officer DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email Name: Kimberly Moffatt Jones Title: Advisory Board Chair DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email Name: Eric Newton Title: Project Director DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application E. Additional Responsible Party Information Name: Rodessa Newton Title: Community Director DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email Name: Kelsi Bonzi Title: Sustainability Coordinator DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email Name: Jennifer Jacobsen Title: Account Manager DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application E. Additional Responsible Party Information Name: Lucy Matthews Title: Community Coordinator DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact: Email 3 oastal Delivery SLO, LLC 819 Reddick St, Santa Barbara, CA 93103 COMMERCIAL LEASE AGREEMENT C.A.R. Form CL, Revised 12/15) Date (For reference only): Landlord") and Tenant") agree as follows: 1. PROPERTY:Landlord rents to Tenant and Tenant rents from Landlord, the real property and improvements described as: Premises"), which Hayworth Group, 1187 Coast Village Rd. suite 1-410 Montecito CA 93108 805.886.8484 805.845.7723 747 Woodbridge Malante Hayworth DocuSign Envelope ID: 4EB15AB3-3EA5-47F1-93D7-7F96166B399B Premises: Date 747 Woodbridge DocuSign Envelope ID: 4EB15AB3-3EA5-47F1-93D7-7F96166B399B Premises: Date 747 Woodbridge DocuSign Envelope ID: 4EB15AB3-3EA5-47F1-93D7-7F96166B399B Premises: Date COMMERCIAL LEASE AGREEMENT (CL PAGE 4 OF 6) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 747 Woodbridge, San Luis Obispo Ca 93401 January 24, 2019 747 Woodbridge DocuSign Envelope ID: 4EB15AB3-3EA5-47F1-93D7-7F96166B399B Premises: Date 747 Woodbridge DocuSign Envelope ID: 4EB15AB3-3EA5-47F1-93D7-7F96166B399B Premises: Date 9 COMMERCIAL LEASE CONSTRUCTION ACCESSIBILITY ADDENDUM C.A.R. Form CLCA 11/16) This is an addendum to the Commercial Lease Agreement (lease) dated inwhich is referred to as "Landlord" and is referred to as "Tenant". Paragraph 34 of the lease is deleted in its entirety and replaced by the following: 9 Name Address Start Date Local License Local License End Date State License State License End Date Business Name and DBA Business Type Malante Hayworth 1019 Chapala Street, Santa Barbara, CA 93101 10/16/18 64962 10/16/18 C10-18- 0000148- TEMP 4/11/19 Coastal Dispensary, LLC Retail Malante Hayworth 819B Reddick Street, Santa Barbara, CA, 93103 10/22/18 64981 2/28/20 C11-18- 0000631- TEMP 4/19/19 Coastal Distribution, LLC Distribution Malante Hayworth 819C Reddick Street, Santa Barbara, CA 93103 10/22/18 64911 2/28/20 C9-18- 0000119- TEMP 4/11/19 Coastal Delivery Services, LLC Non-storefront Malante Hayworth 819A Reddick Street, Santa Barbara, CA 93103 10/22/18 64982 2/28/20 Coastal Manufacturing, LLC Manufacturing Julian Michalowski 1019 Chapala Street, Santa Barbara, CA 93101 10/16/18 64962 10/16/18 C10-18- 0000148- TEMP 4/11/19 Coastal Dispensary, LLC Retail Julian Michalowski 819B Reddick Street, Santa Barbara, CA, 93103 10/22/18 64981 2/28/20 C11-18- 0000631- TEMP 4/19/19 Coastal Distribution, LLC Distribution Julian Michalowski 819C Reddick Street, Santa Barbara, CA 93103 10/22/18 64911 2/28/20 C9-18- 0000119- TEMP 4/11/19 Coastal Delivery Services, LLC Non-storefront Julian Michalowski 819A Reddick Street, Santa Barbara, CA 93103 10/22/18 64982 2/28/20 Coastal Manufacturing, LLC Manufacturing Kimberly Moffatt Jones 1019 Chapala Street, Santa Barbara, CA 93101 10/16/18 64962 10/16/18 C10-18- 0000148- TEMP 4/11/19 Coastal Dispensary, LLC Retail Kimberly Moffatt Jones 819B Reddick Street, Santa Barbara, CA, 93103 10/22/18 64981 2/28/20 C11-18- 0000631- TEMP 4/19/19 Coastal Distribution, LLC Distribution Kimberly Moffatt Jones 819C Reddick Street, Santa Barbara, CA 93103 10/22/18 64911 2/28/20 C9-18- 0000119- TEMP 4/11/19 Coastal Delivery Services, LLC Non-storefront Kimberly Moffatt Jones 819A Reddick Street, Santa Barbara, CA 93103 10/22/18 64982 2/28/20 Coastal Manufacturing, LLC Manufacturing Josh Ginsberg 1019 Chapala Street, Santa Barbara, CA 93101 10/16/18 64962 10/16/18 C10-18- 0000148- TEMP 4/11/19 Coastal Dispensary, LLC Retail Josh Ginsberg 819B Reddick Street, Santa Barbara, CA, 93103 10/22/18 64981 2/28/20 C11-18- 0000631- TEMP 4/19/19 Coastal Distribution, LLC Distribution Josh Ginsberg 819C Reddick Street, Santa Barbara, CA 93103 10/22/18 64911 2/28/20 C9-18- 0000119- TEMP 4/11/19 Coastal Delivery Services, LLC Non-storefront Josh Ginsberg 819A Reddick Street, Santa Barbara, CA 93103 10/22/18 64982 2/28/20 Coastal Manufacturing, LLC Manufacturing Josh Ginsberg 910 16th Street, Ste 805, Denver, CO 80202 12/1/09 2010-BFN- 1045692 3/12/19 402-00913 3/12/19 Alternative Medicine on the Mall, LLC, DBA Native Roots Apothecary*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 12/1/09 2015-BFN- 0000957 5/27/19 403-01643 5/24/19 Alternative Medicine on the Mall, LLC, DBA Native Roots Apothecary*Cultivation Josh Ginsberg 910 16th Street, Ste 805, Denver, CO 80202 12/1/14 2013-BFN- 1069055 2/18/19 402R-00027 1/1/20 Alternative Medicine on the Mall, LLC, DBA Native Roots Apothecary*Retail Josh Ginsberg 1146 Pearl Street, Boulder, CO 80302 6/1/13 Recreational Marijuana Business License 10-0011 2/20/19 402R-00173 2/20/19 Boulder RX, LLC, DBA Native Roots Boulder Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 6/1/15 2017-BFN- 0000779 11/21/19 404-00601 5/17/19 Conscious Confections II, LLC, DBA Native Roots Extracts MIP 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application G. Related License Information Name Address Start Date Local License Local License End Date State License State License End Date Business Name and DBA Business Type Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 6/1/15 2015-BFN- 0008395 11/14/19 403-01856 8/30/19 Conscious Confections II, LLC, DBA Native Roots Extracts Cultivation Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 6/1/15 2017-BFN- 0002518 12/1/19 404R-00344 5/17/19 Conscious Confections II, LLC, DBA Native Roots Extracts MIP Josh Ginsberg 680 Lipan St., Denver, CO 80204 12/1/09 2013-BFN- 1068827 9/16/19 404-00172 8/27/19 Conscious Confections, LLC, DBA Native Roots Extracts MIP Josh Ginsberg 680 Lipan St., Denver, CO 80204 12/1/09 2012-BFN- 1061546 9/27/19 403-00460 1/7/20 Conscious Confections, LLC, DBA Native Roots Extracts Cultivation Josh Ginsberg 680 Lipan St., Denver, CO 80204 12/1/09 2014-BFN- 0004051 4/1/19 403R-00406 11/12/19 Conscious Confections, LLC, DBA Native Roots Extracts Cultivation Josh Ginsberg 680 Lipan St., Denver, CO 80204 12/1/09 2013-BFN- 1069061 9/16/19 404R-00006 1/1/20 Conscious Confections, LLC, DBA Native Roots Extracts MIP Josh Ginsberg 41290 Highway 6, Unit B5, Avon, CO 81620 8/1/14 Marijuana Business License MJM-4591 8/1/19 402-00893 12/12/19 J&R Partners, LLC, DBA Native Roots Vail*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 8/1/14 2014-BFN- 0004637 5/19/19 403-01599 1/29/20 J&R Partners, LLC, DBA Native Roots Vail*Cultivation Josh Ginsberg 41290 Highway 6, Unit B5, Avon, CO 81620 8/1/14 Marijuana Business License MJR-4775 8/1/19 402R-00221 5/16/19 J&R Partners, LLC, DBA Native Roots Vail*Retail Josh Ginsberg 1003 N. Academy Blvd,. Colorado Springs, CO 80909 11/1/15 Medical Marijuana Center Business License 723275 7/3/19 402-01084 7/3/19 RJJ Academy, LLC, DBA Native Roots Academy*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 11/1/15 2015-BFN- 0002519 9/18/19 403-01684 7/3/19 RJJ Academy, LLC, DBA Native Roots Academy*Cultivation Josh Ginsberg 620 E. 58th Ave., Denver, CO 80216 8/1/16 Marijuana Establishment License AC2018- 00005 10/4/19 402R-00493 7/30/19 RJJ Adams, LLC DBA Native Roots North Denver Retail Josh Ginsberg 308 S. Hunter Street, Aspen, CO 81611 1/1/15 Medical Marijuana Store License 2018- 006 5/30/19 402-01047 5/30/19 RJJ Aspen, LLC, DBA Native Roots Aspen Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 1/1/15 2015-BFN- 0000954 6/22/19 403-01642 5/30/19 RJJ Aspen, LLC, DBA Native Roots Aspen Cultivation Josh Ginsberg 308 S. Hunter Street, Aspen, CO 81611 1/1/15 Retail Marijuana Store License 2018- 004 1/20/19 402R-00379 12/23/19 RJJ Aspen, LLC, DBA Native Roots Aspen Retail Josh Ginsberg 1/1/15 City of Aspen Business License 13188 12/31/19 402R-00379 402-01047 RJJ Aspen, LLC, DBA Native Roots Aspen Retail Josh Ginsberg 3660 Austin Bluffs Pkwy, Colorado Springs, CO 80918 6/1/15 Medical Marijuana Center Business License 723101 5/21/19 402-01042 5/21/19 RJJ Colorado Springs, LLC, DBA Native Roots Colorado Springs Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 6/1/15 2015-BFN- 0000622 5/27/19 403-01633 5/21/19 RJJ Colorado Springs, LLC, DBA Native Roots Colorado Springs*Cultivation Josh Ginsberg 850 Little Beaver Tr., Dillon CO 80435 7/1/15 Dillon Retail Marijuana Store License 402R- 00434 7/16/19 402R-00434 3/26/19 RJJ Dillon, LLC, DBA Native Roots Dillon Retail Josh Ginsberg 7/1/15 Town of Dillon Business License 3610 12/31/19 402R-00434 RJJ Dillon, LLC, DBA Native Roots Dillon Retail Josh Ginsberg 5610 W. 20th Ave., Edgewater, CO 80214 3/1/15 Retail Marijuana Center 25911 10/26/19 402R-00335 10/1/19 RJJ Edgewater, LLC, DBA Native Roots Edgewater Retail 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application G. Related License Information Name Address Start Date Local License Local License End Date State License State License End Date Business Name and DBA Business Type Josh Ginsberg 3/1/15 Business License 25910 10/26/19 402R-00335 402-00972 RJJ Edgewater, LLC, DBA Native Roots Edgewater Retail Josh Ginsberg 5610 W. 20th Ave., Edgewater, CO 80214 3/1/15 Edgewater Medical Marijuana Center 25909 10/26/19 402-00972 10/24/19 RJJ Edgewater, LLC, DBA Native Roots Edgewater*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 3/1/15 2015-BFN- 0001792 6/16/19 403-01533 10/24/19 RJJ Edgewater, LLC, DBA Native Roots Edgewater*Cultivation Josh Ginsberg 861 North Summit Blvd, Frisco, CO 80443 12/1/14 Business / Sales Tax License 3352 12/31/19 402R-00363 11/17/19 RJJ Frisco, LLC, DBA Native Roots Frisco Retail Josh Ginsberg 861 North Summit Blvd, Frisco, CO 80443 12/1/14 Business / Sales Tax License 3352 12/31/19 402-00905 1/6/20 RJJ Frisco, LLC, DBA Native Roots Frisco*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 12/1/14 2013-BFN- 1069958 3/10/19 403-01432 1/6/20 RJJ Frisco, LLC, DBA Native Roots Frisco*Cultivation Josh Ginsberg 2209 W. 32nd Ave, Denver, CO 80211 2/1/17 2010-BFN- 1045914 9/11/19 402-00637 5/28/19 RJJ Highlands, LLC, DBA Native Roots Highlands Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 2/1/17 2015-BFN- 0007668 4/29/19 403-01801 4/15/19 RJJ Highlands, LLC, DBA Native Roots Highlands Cultivation Josh Ginsberg 2209 W. 32nd Ave, Denver, CO 80211 2/1/17 2014-BFN- 0004211 2/12/19 402R-00368 11/21/19 RJJ Highlands, LLC, DBA Native Roots Highlands Retail Josh Ginsberg 19 S. Sunset Street, Longmont, CO 80501 10/1/14 Medical Marijuana Business License MMB-14-0003 2/27/19 402-00961 10/10/19 RJJ Longmont, LLC, DBA Native Roots Longmont Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 10/1/14 2014-BFN- 1073490 9/16/19 403-01519 10/10/19 RJJ Longmont, LLC, DBA Native Roots Longmont Cultivation Josh Ginsberg 19 S. Sunset Street, Longmont, CO 80501 10/1/14 Retail Marijuana License RMB-15- 0002 2/27/19 402R-00416 2/25/20 RJJ Longmont, LLC, DBA Native Roots Longmont*Retail Josh Ginsberg 4000 Morrison Road, Denver CO 80219 11/1/16 2013-BFN- 1069081 1/15/20 402R-00049 1/1/20 RJJ Morrison II, LLC DBA Native Roots West Denver Retail Josh Ginsberg 2645 S. Santa Fe Dr., Units D&E, Denver, CO 80223 1/1/15 2010-BFN- 1045779 9/10/19 402-01070 8/17/19 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe Retail Josh Ginsberg 2645 S. Santa Fe Dr., Units D&E, Denver, CO 80223 1/1/15 2015-BFN- 0003803 8/19/19 402R-00484 7/31/19 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 1/1/15 2015-BFN- 0007669 4/29/19 403-01802 4/15/19 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe surplus)Cultivation Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 1/1/15 2015-BFN- 0007670 4/29/19 403-01803 4/15/19 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe surplus)Cultivation Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 1/1/15 2015-BFN- 0001521 9/2/19 403-01666 8/17/19 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe*Cultivation Josh Ginsberg 7870 W. Quincy Ave, Denver, CO 80123 8/1/15 2013-BFN- 1068512 10/3/19 402-00977 10/10/19 RJJ Sheridan, LLC, DBA Native Roots Littleton Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 8/1/15 2014-BFN- 0003159 4/21/19 403-01543 10/10/19 RJJ Sheridan, LLC, DBA Native Roots Littleton Cultivation Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 8/1/15 2014-BFN- 0004169 5/19/19 403R-00408 11/17/19 RJJ Sheridan, LLC, DBA Native Roots Littleton Cultivation Josh Ginsberg 7870 W. Quincy Ave, Denver, CO 80123 8/1/15 2014-BFN- 0003949 1/21/20 402R-00380 12/23/19 RJJ Sheridan, LLC, DBA Native Roots Littleton Retail Josh Ginsberg 1433 S. Tejon Street, Colorado Springs, CO 80905 5/1/16 1/7/19 402-01140 1/7/20 RJJ Tejon, LLC, DBA Native Roots Tejon*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 5/1/16 2015-BFN- 0006941 1/12/20 403-01747 1/7/20 RJJ Tejon, LLC, DBA Native Roots Tejon*Cultivation Josh Ginsberg 7050 Tower Road, Denver, CO 80249 4/1/17 2010-BFN- 1045701 3/5/19 402-00417 3/5/19 RJJ Tower, LLC, DBA Native Roots Denver Airport Retail Josh Ginsberg 7050 Tower Road, Denver, CO 80249 4/1/17 2017-BFN- 0005193 1/17/20 402R-00696 8/25/19 RJJ Tower, LLC, DBA Native Roots Denver Airport Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 4/1/17 2012-BFN- 1060536 2/26/19 403-00633 3/5/19 RJJ Tower, LLC, DBA Native Roots Denver Airport Cultivation 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application G. Related License Information Name Address Start Date Local License Local License End Date State License State License End Date Business Name and DBA Business Type Josh Ginsberg 3149 Santa Fe Trail, Trinidad, CO 81082 3/1/17 Retail Marijuana License 2018-014R 4/18/19 402R-00617 1/19/20 RJJ Trinidad, LLC, DBA Native Roots Trinidad Retail Josh Ginsberg 1705 W. Uintah St., Colorado Springs, CO 80904 11/1/15 Medical Marijuana Center Business License 723276 7/3/19 402-01083 7/3/19 RJJ Uintah, LLC, DBA Native Roots Uintah*Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 11/1/15 2015-BFN- 0002521 9/18/19 403-01683 7/3/19 RJJ Uintah, LLC, DBA Native Roots Uintah*Cultivation Josh Ginsberg 845 Walnut Street, Boulder, CO 80302 1/1/10 Medical Marijuana Business License 10-0004 11/15/19 402-00194 11/15/19 The Dandelion, LLC DBA The Dandelion Retail Josh Ginsberg 4990 Dahlia St., Denver, CO 80216 1/1/10 5/27/19 403-01641 5/24/19 The Dandelion, LLC DBA The Dandelion Cultivation Josh Ginsberg 656 Grandview Ave, Columbus, OH Pending Pending Pending Cannamed Therapeutics, LLC Retail Josh Ginsberg 1800 East State Street, Fremont, OH Pending Pending Pending Cannamed Therapeutics, LLC Retail Josh Ginsberg 10500 Antenucci Boulevard, Suite 200, Garfield Heights, OH Pending Pending Pending Cannamed Therapeutics, LLC Retail Josh Ginsberg 0 Raydo Circle, Springfield, OH Pending Pending Pending Cannamed Therapeutics, LLC Retail 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application G. Related License Information Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Business Plan Executive Summary Company:Coastal Delivery SLO, LLC Point of Contact:Malante Hayworth Phone: ( Scope of Business:Coastal will operate a cannabis non-storefront retail facility, delivering only the highest grade and quality-driven cannabis products to San Luis Obispo consumers. Use of Funds: Initial organization, structure, staffing, facility construction, equipment purchases, vendor contracts, operational expenses, testing, research & development, marketing, and community development. EXECUTIVE SUMMARY 29 January 2019 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Table of Contents About Coastal 5 Statement of Purpose 6 Mission Statement 7 Vision Statement 7 Corporate Values 7 Management/Organization 11 The Coastal Team 11 Capitalization Table 29 Organizational Chart 29 Business Plan 30 Delivery Policies and Procedures 31 Receipt of Delivery 31 Delivery Employee Requirements 32 Delivery Routes 32 Vehicle Requirements 33 Point of Sale System 34 Point of Sale Transactions 34 Online Point of Sale Transactions 35 Inventory/Storage 37 Inventory Control Procedures 38 Inventory Track & Trace System 38 METRC System Administration 39 Loss of Access 39 Inventory Reconciliation 40 Standard Operating Procedures 40 Opening Procedures 41 Shift Change Procedures 41 Identification Verification 42 Visitor Policy 44 Closing Procedures 44 Shipment Intake Procedures 45 Transport Manifests 47 Rejection of Shipments Procedures 48 Returns and Quality Assurance 49 Product Recall Procedures 50 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Adverse Record Tracking 51 Quality Control Procedures 52 Packaging & Labeling Criteria 55 Cash Management Protocols 55 Cash Transport 56 Deposit into Banking Institution 56 Cashing Handling Training 56 Counting & Reconciliation Procedures 56 Recordkeeping Procedures 57 Enterprise Resource Planning 57 Security Functions 57 Quality Assurance Functions 58 Audits 58 Records 59 Financial Records 60 Medical Cannabis Sales Records 60 Signage Plan 60 Posted Notices 61 Other Policies 62 Community Relations Plan 62 State Licenses 63 Coastal Licenses 63 Other Licenses 64 Tax Compliance 71 Payment of City Taxes & Fees 72 Insurance 72 Budget 73 Base Assumptions 73 The first year budget 75 Operating Expenditures 76 5 Year Income Statement 77 5 Year Revenues Charts 78 5 Year Net After-Tax Income Chart 78 Balance Sheet 79 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Financial Projections 80 Site Development (Construction & Tenant Improvements):82 Financial Capacity 83 Marketing Plan 83 Industry Research Overview 83 Marketing Research Overview 84 Positioning Statement 85 Target Market 85 Demographics 85 Advertising Policies 86 Competitive Analysis 86 Marketing Strategy 87 Traditional Media 87 Digital Media 87 Public Relations 88 Social Media 88 KPIs 89 Marketing Timeline 89 Products and Services 90 Types of Products Available 91 Online Order Service 95 Vertical Integration 97 Product Testing Criteria 100 Supply Chain Strategy 101 Other Distributors & Suppliers 102 Coastal Apparel 102 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Appendix 105 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan About Coastal Coastal’s vision is beyond becoming a leading vertically integrated cannabis business, it is about improving the lives of our customer base through education, healthy product choices and a convenient method to receive product through delivery. E-commerce sales are growing 5x faster than brick and mortar stores in traditional retail and that trend is following in cannabis. 1 California is one of the leading markets in the world allowing for statewide delivery of cannabis. Coastal recognizes this trend and understands that the future of cannabis is a place where the customer drives the purchasing experience, adapting our world-class retail experience to online is our utmost priority. Our aim is to be the go-to delivery service for the San Luis Obispo community initially and all of San Luis Obispo County long term. Coastal was formed by individuals with deep roots in the California coast. When we decided to create a vertically-integrated licensed cannabis operation, we did so with our customers in mind. We asked ourselves how we can offer affordable prices while maintaining an industry-leading brand selling best in class products. We wanted absolute control of our products from seed to sale to ensure that we can leverage our savings towards affordability for our customers. Cannabis is a new and very malleable industry, especially given its profitability. A number of individuals who see more of the green in the dollar versus the value of the plant are quickly taking over a large part of shaping this industry that we love. We have been awarded licenses over our competitors not just because of our operational competency, but also because of our understanding that we have a responsibility as cannabis operators beyond just profits. We want our customers to love our products and love our service. Coastal is all about California’s old surf culture: a time and place when the ties of friendship and unity were the driving principles shared by all Californians. Our strategy is to utilize multiple marketing channels—traditional media, digital media and co-brand/marketing partnerships to attract and retain a large customer base for our delivery service model. We understand how to market effectively within the guidelines set for this industry across all marketing platforms. Our stance is that cannabis is a product meant for responsible adults and patients in need. We will have high integrity when crafting our messaging for responsible cannabis consumption and use. What makes Coastal exceptional is our understanding of the regulated California market as well as our understanding of legal cannabis businesses in general through our collective years of direct experience in the evolving industry. 1 https://www.businessinsider.com/the-future-of-retail-delivery-fulfillment-2018-8 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan The Coastal team has a combined 40 years of experience in the legal cannabis businesses. Coastal’s principals have operated compliant cannabis businesses for over 10 years, including a local cannabis operation servicing San Luis Obispo County via delivery per Proposition 215. Our intimate understanding of the market from seed to sale gives us a strong foundation upon which we have constructed a scaling business, and we are quickly becoming market and industry leaders in one of the largest marijuana markets in the world. Our processes are designed to prioritize 100% compliance with local and state regulations while providing a safe and positive experience for our customers, employees, and the community. We strive to become a sustainable and profitable business and a responsible neighbor in San Luis Obispo. Statement of Purpose Coastal is a licenced cannabis business focused on the legal sale of compliant cannabis products to adults and patients in California. Coastal intends to bring a premier cannabis brand to the community and visitors of San Luis Obispo. Our proposed non-storefront retail facility will serve as a beacon facility, setting and maintaining the highest standards of professionalism while operating in full compliance with both local and state law and giving back to the community in myriad ways. Coastal will offer adult-use and medicinal cannabis for delivery to patrons. We are cannabis professionals, and more importantly, we are a family. We are passionate about providing safe access to cannabis products in a caring and compassionate manner that are consistent with our core values of education, unity, happiness, health, opportunity, and kinship through the community. Our business approach demands a focus to detail, customer education throughout the interaction, and quality assurance. Nothing is more important to us than giving every customer a sense of belonging. We will strive to ensure that there is a smile on each customer’s face the moment the pick up the phone to call our call center or enter the online portal, until the minute they have finished placing their delivery order. We chose this business for the purpose of becoming industry leaders. We intend to set the bar for our competitors and encourage the market to match our service, our education, our commitment, and our dedication. Coastal doesn’t just want to just be part of the cannabis industry—we want to lead it. Donating to the various local initiatives within our region is only a start to our community engagement efforts. Coastal will be hosting and participating in educational events and programs for the community to increase awareness of compliant cannabis use and its benefits. Our goal is to be recognized by our local community members as a good neighbor and a responsible service provider. We believe in adding value to our local community by supporting local non-profit organizations, having an active involvement in neighborhood initiatives, providing educational opportunities to our employees and citizens of San Luis Obispo, providing volunteers to the community, and advocating for social change. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 6 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan We have created our business plan to not only comply with all local San Luis Obispo and state rules and regulations, but also to serve as a realistic model of operations developed through a collaborative process that leverages the expertise of our seasoned executive team and industry experts. Our team brings some of the most extensive experience managing operational plans in the cannabis industry, and decades of combined expertise in business development, operations, and management. This collective experience uniquely equips our team to implement and launch our business plan, and to facilitate serving customers faster and more efficiently than other any other operator. Mission Statement Coastal’s mission is to provide premium cannabis products through a community focused approach, in a safe and responsible manner in order to promote a healthy, happy lifestyle. Vision Statement Coastal’s vision is to build a world-class retail cannabis experience that’s community-focused, forward-thinking, customer-centric, and has a team that strives and loves to educate and serve our customers. We envision an industry that allows economic opportunities for those who were denied access to a living wage versus a bare minimum. We envision the profitability of the emerging cannabis industry being accessible to all. Corporate Values Based off our success in other cannabis markets, we have built a recipe of success with the following 10 corporate values that represent our culture at Coastal: 1.Passion 2.Accountability 3.Education 4.Integrity 5.Dedication 6.Respect 7.Community 8.Fun 9.Quality 10.Innovation Passion We don’t just want to be in the cannabis business, we are driven to shape it. Whereas most operators only see profits, we want to also focus on helping a mother to provide for her children, a father to be able to come home and not worry about making ends meet, a recent college graduate to look into their future with optimism, not despair, and on building a sustainable 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 7 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan business in the community we operate in. We are driven to ensuring that a single plant can change the world for all. Accountability We are in the service industry. Accountability could very well be the deciding factor for optimal sales and year-round cutbacks. If customers have complaints, we want to understand and address them head on. The service we provide in-store will be translated to Coastal Delivery. The products our customers consume is a direct reflection of our company as a whole and we need to hold that bar high. We always take responsibility and ensure that our customers know we are actively listening to their concerns. Education Education in all respects cannot be undervalued. Every person has the right to be educated on the products they purchase, the decisions they make and the potential impacts of their actions. Education is a core value at Coastal that is imbedded in all of our business and community practices. We believe that an educated public is the best ingredient for a happy, healthy and successful community. Integrity Our word is our bond at Coastal. We want an honest relationship with our customers and partners and know just how fragile such a thing can be when integrity is not of the utmost importance in a business culture. As shown (or demonstrated) throughout this business plan, we cannot hope for sales if our local community does not trust Coastal. Ensuring that all our products are tested, safe, and accessible is one crucial way to maintain our integrity. Ensuring that we keep our commitment to the organizations we pledge to support also allows us to develop and build on the vision we hope for San Luis Obispo. Dedication The most difficult choices always lead to the best rewards. It can be tough for any operator to continuously analyze market trends, ensure all our methods and practices are up to date, and promote sustainable business practices all while creating a tailored service for each and every client. To most operators, these are goals. But for Coastal, they are our absolute requirements. We cannot hope to help shape the industry nor be the best at what we do if we become complacent. Dedication remains and will always remain a cornerstone of our business model. Respect We are a California company with a driven goal of being involved throughout our state. Each region has its own local customs, culture, and goals. San Luis Obispo is no exception. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 8 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Throughout this business plan, we will discuss our community benefits and just how we will ensure we remain sensitive and responsive to the needs of our community. From contracting with the local businesses to ensuring neighborhood compatibility and proper advertising, we will do everything in our power to ensure the locals of San Luis Obispo are both heard and understood. Community For Coastal, community engagement doesn’t simply end with the click of a donation button. We have to ensure that our community thrives, as a prospering community not only means optimal sales, but a higher standard of living for all. Throughout this business plan, we will be discussing our methods for community engagement. Through donations, educational seminars, local job opportunities, higher wages, and commitment of net profits, step by step we will work to create a symbiotic relationship between ourselves and our customers. Fun Kinship through communal ties is one of our forefront cornerstones. We built Coastal to resemble the good old days when surfers would bond at a beach campfire and share tear-jerking laughs and memorable stories. This is what we want at our delivery service—for the minute a customer calls our call center or visits our pre-order web portal, we want them to feel respected, understood, educated and have a smile on their face when the hang up the phone. If cannabis couldn’t help people bond, we wouldn’t be in this industry. We want our employees, our customers, and our community to look for similarities amongst one another versus differences. In the end, everyone wants to have fun; it’s up to us to achieve that with each and every one of our customers. Quality One of the biggest reasons we applied for vertically-integrated licenses was quality assurance. We wanted absolute control of our products from manufacturing, distribution, to retail sales and delivery. This decision not only led to us winning four licenses in Santa Barbara, but also resulted in us having the highest scores due to our attention to detail, foresight, and commitment to ensuring control of quality. We want our brand to expand beyond our retail service into bringing that service to someone's home. We are focused on our products and how we distribute them. This is why we will be featuring our own Coastal brands throughout our retail and delivery operations to ensure the quality of our product matches the quality of our service. Coastal brands will collaborate with local farmers in the San Luis Obispo County to highlight the amazing work the local industry provides. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 9 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Innovation We don’t just incorporate these base values into our business model for the sake of it. We have proven through our business practices how these values attribute to higher sales and improved customer satisfaction. Josh Ginsberg, one of our executive Coastal members, has built, operated, and managed nearly 700 team members in the legal Colorado cannabis market. His experience spans across 126 licenses in retail, cultivation, extraction, and product manufacturing—the most ever in the cannabis industry. He also has overseen over 3.5 million retail transactions since 2009 when he entered the industry across the 20 retail storefronts his company operates. Other members of our executive team own companies in the cannabis industry focused on point of sale and compliance. We have stood up operations and compliance programs in over five legal cannabis states and worked with international groups on cannabis retail development. Our team’s collective experience is unmatched and the efficacy of our core values is proven through our success. Our operations are based on industry-leading policies and procedures that are designed to ensure compliance, transparency, customer education, and most of all safety for our customers, employees, and community. We are motivated and passionate about bringing our business experience and commitment to community involvement to San Luis Obispo. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 10 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Management/Organization The Coastal Team Malante Hayworth, Co-founder & Co-Chief Executive Officer – As a co-founder of Coastal, Malante is responsible for building the team that successfully won four licenses—retail storefront, non-storefront retail, manufacturing and distribution—in the highly competitive market of Santa Barbara. He directly oversees the operations of the company as they work closely with the city and local partners to open all four operations in spring 2019. He has strategically solidified partnerships with industry leading individuals and companies to ensure Coastal has the experience and expertise to be a successful organization. As he leads the company to expand their retail and non-storefront retail operations to additional markets in the region, Malante is quickly becoming a leader in the emerging California cannabis market. Before entering the cannabis market in early 2018, Malante graduated with a degree in pre-law and business from Santa Barbara City College. His entrepreneurial mentality quickly lead him to become a prominent player in the Santa Barbara restaurant industry where he owned, operated and eventually sold a successful restaurant that held licences from the California Department of 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 11 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Alcoholic Beverage Control. During his ownership the restaurant saw over one thousand customers per day, without single violation from the regulatory agency. Operating a lucrative restaurant allowed him to hone his customer service, teamwork and management skills, which will be a valuable asset to Coastal’s retail and non-storefront retail operations. Malanet then transitioned into the real estate sector where he has been a licensed realtor 13 years and a licensed broker for six years. Malante’s focus on real estate sales and investing has allowed him to employ hundreds of people in the Santa Barbara community, and his real estate transactions have stimulated the Santa Barbara market. He is a member of the National Association of Realtors and the Santa Barbara Association of Realtors. Malante has sold over 150 homes and has generated a personal database of satisfied homeowners and buyers. Currently, Malante has over 60 happy tenants in the Santa Barbara area. He is proud to provide people with a place to live, as he understands that this is a very challenging market for renters. Malante took his real estate ventures a step further by tackling real estate rehabilitation. Malante has applied his skills in the field to work to revitalize neighborhoods and clean up dilapidated houses that others in his profession would not have even dared to touch. This endeavor has proved a success for himself and his community. Malante has rehabilitated over 50 properties in the Santa Barbara area and has helped maintain the beauty of the city he calls home. Malante’s passion for the area’s natural geography inspired him to be a monthly donator to the Heal the Ocean Foundation in Santa Barbara as well as the Santa Barbara County Park Foundation. He also has helped with these efforts firsthand by participating in beach cleanup days. Julian Michalowski, Co-founder & Co-Chief Executive Officer – Julian entered the cannabis space in early 2018 when the California market opened for legal recreational use under Proposition 64. He saw the emerging industry as an opportunity to build a retail oriented company that set the standard in quality products, customer service and community engagement. In the past year, Julian as become versed in many aspects of the industry as Coastal moves to open their flagship dispensary as well as a manufacturing, distribution and delivery location in Santa Barbara. Julian is also a Santa Barbara Real Estate investor and developer. He has been involved in over 200 real estate transactions and prides himself on contracts and negotiation. The first five years of Julian’s career were spent at Sotheby’s International Realty where he developed a real estate sales team. In only 2 years time, his team became one of the top teams at Sotheby’s. In 2015, Julian started Omega Real Estate and Investments, of which he is currently the broker. In 2017, 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 12 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Omega represented over $35,000,000 in sales. As a broker, Julian prides himself in the long-term relationships he holds with his clients. He is savvy with the upcoming trends in the real estate market and is dedicated to producing smooth transactions, which has been a tremendous benefit to Coastal’s growth. In 2014, Julian helped create West Bluff Capital, Inc in Santa Barbara. West Bluff Capital is a real estate investment company that focuses on Santa Barbara real estate acquisitions, development, and redevelopment. The company has been involved in over 50 projects ranging from $1 million to $100 million. Julian is the Vice President of West Bluff Capital, where he focuses on working with neighbors and government agencies to create win-win situations. Most of the deals Julian gets into are complicated and come with problems, so Julian works with the community to create a positive situation for all. For example, in 2017 West Bluff Capital built a low income senior housing project on the eastside of Santa Barbara to help give back to the community. This project was sitting for five years, unable to be completed, and then West Bluff Capital came in to finish the project. West Bluff Capital employees directly and indirectly dozens of people as well as provides housing to 45 families in Santa Barbara. Julian’s real estate experience translates perfectly into the California commercial cannabis industry. In an industry so heavily dependant on real estate, be it due to proper zoning or having adequate space for operations, Julian’s expertise in real estate has allowed him to become quickly acquainted with the nuances of legal cannabis businesses. Navigating the regulated cannabis industry requires an appropriate balance of due diligence and risk management. In Santa Barbara especially, Julian’s in depth knowledge of local properties and ordinances has given him an decisive edge over the competition. With his impressive résumé in real estate as proof of his capabilities, Julian has positioned himself and his group at Coastal to excel in this newly regulated industry. Josh Ginsberg, Chief Operating Officer – Josh Ginsberg, Co-Founder, Partner and Chairman of the Board for the Native Roots Dispensary Group, is a Colorado native and clear leader in the cannabis industry with a demonstrated history of rapid and strategic business growth from seed to sale. A lifelong entrepreneur with a decade of cannabis expertise, Ginsberg notably co-founded and built the Native Roots brand from the ground up to become one of the largest legal marijuana production and distribution companies in the world as well as holding the most government issued cannabis operator licenses totaling 126. Native Roots also has 1 of the 4 awarded recreational dispensary operator licenses in the entire Province of Manitoba, Canada. This 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 13 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan license allows them to open dispensaries across the entire Province. One of the first to enter the cannabis space, Ginsberg holds badge # 00054 out of more than 80,000 issued by the Marijuana Enforcement Division in Colorado. While CEO of Native Roots, Ginsberg overhauled the company and its strategic direction to create a widely known and renowned cannabis brand. He grew the company from 2 to 20 retail locations with nearly 700 employees. At the same time, Ginsberg oversaw operations of the largest state of the art indoor cultivation facility in existence at 200,000 s.f. With three other facilities, the total of Native Roots growing operations is 240,000 square feet, with an output of over 36,000 lbs. of cannabis per year. With a fully branded chain of dispensaries, identical from store to store, Native Roots clearly has very little competition in the Colorado marijuana industry. Both recreational and medical, the company offers a complete concierge experience that far surpasses many guest’s expectations the first time they come in. The focus on customer education and a comfortable experience is what Ginsberg and his team built the brand’s reputation on. The refreshing experience, the professionalism, the training, the look and feel of the stores, the enjoyment of the team, the sense of ease a customer is looking for is what makes Native Roots stand above the rest. All reason why the chain of medical and retail dispensaries performs approximately 140,000 transactions a month with a majority being returning customers. Native Roots has won numerous awards and has been praised for its community contributions and culture of social responsibility: Denver Post – Top Workplaces 2016, 2017, 2018 CannAwards – Best Dispensary in Colorado 2015, 2016 CannAwards – Best Marketing Initiative 2015 Boulder Weekly – Best of Boulder 2010, 2011, 2012, 2013, 2014, 2015, 2016 Best of Vail 2016 Best of Summit County 2016 Multiple “Best of” cannabis awards spanning across the High Times Cannabis Cup, The Rooster, 710 Cup, and The Cannabis Business awards Ginsberg was responsible for the team that built and established a complete Marijuana Infused Production facility (MIP) where Native Roots produces all styles of concentrates using every industry approved extraction method. They use butane, ethanol, CO2, propane and cold-water methods of extraction. Native Roots turns out approximately 130,000 grams a month of final product. They are also responsible for producing MarQaha products, Lord Jones edibles and 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 14 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan topical creams, Oil Stick vaporizers, and their own in-house line of Pax Era pods. All very recognizable and well-known edible, topical, and vape brands. Having achieved extraordinary success in the nation’s first regulated cannabis marketplace in Colorado, Ginsberg recently has entered new strategic markets in North America. Since the passing of Adult-use Cannabis, Ginsberg joined and co-founded The Coastal Holding Company of cannabis brands in undoubtedly the largest cannabis market in the world: California. Ginsberg is utilizing his unparalleled aptitude in operating in compliant, high volume, and large scale cannabis business to revolutionize the newly regulated California industry. There is no one more prepared or more qualified to lead such a market than Ginsberg and his team. By partnering with local entrepreneurs, industry experts, and upstanding members of the community, Ginsberg has help start a successful business with Coastal in Santa Barbara receiving the highest score and winning 1 of the 3 licenses to dispense cannabis in the city as well as a delivery, distribution, and manufacturing license. He and the Coastal team are poised to continue throughout the state and move forward into the California market. In the newly federally legal Canadian cannabis market,Ginsberg co-founded,The Higharchy Group.The Higharchy Group is an elite group of individuals with a deep past and understanding of the cannabis industry across retail,manufacturing,and cultivation.They will operate both retail store fronts as well as have a private exclusive agreement with a composed house of industry leading brands.The Higharchy group has over 24 agreements for retail locations on the West Coast of Canada and has plans to open a multi-store retail chain comparative to or larger in size to Ginsberg’s prior achievement as Co-founder &CEO of Native Roots.The goal is for all the stores to be open across British Columbia and Alberta by the end of 2020. When medical cannabis was passed in Ohio, Ginsberg joined and co-founded, The Cannamed Therapeutics company of cannabis brands. With Ginsberg’s past experiences, he helped win licenses throughout the state. His team has won 4 of the 56 dispensary licenses, and is in the application process for 1 of the 40 manufacturing licenses and 1 of the 13 licenses for large scale production. Both of these applications and licenses look very promising. Deciding to widen his scope of knowledge in this industry, Ginsberg stepped into the world of CBD in 2017 in the same leading fashion as he has done in all his other cannabis ventures. He was a co-founder of XYZ CBD Inc., a lab grade quality, large scale B-to-B production, extraction, and isolation company. He’s also involved with a company that is in the B-to-C business as well as being a hemp and isolate transaction broker. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 15 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan As a business owner, Ginsberg has encouraged and sponsored his employees to involve themselves in community efforts and contribute to local causes. Ginsberg and his staff members have supported many organization throughout Colorado, including: Rotary and Lions Clubs, Humane Society, Habitat for Humanity and Attentive Homes, Boulder Food Bank, Care & Share Food Bank, Camp Dawn’s Hope, Attention Homes, Aspen Center for Environmental Studies, Wildlands Restoration, Greenwood Wildlife Rehabilitation Center, Guardians of Palmer Park, Sloan’s Lakeshore Cleanup, Bear Valley Improvement Association , Harvey Park Improvement Association, Denver Public Works, Denver Parks & Recreation, and the City of Littleton, the Town of Frisco, and the Town of Avon. Skilled in Strategic Planning, Business Development, Competitive Market Analysis and Management, Ginsberg holds dual Bachelor degrees focused in Economics and Computer Science from Bucknell University. He participated in J.P. Morgan’s young executive program in New York City before venturing to Boulder, Colorado where he still resides with his wife and two young daughters. His family is now preparing to move to California to pursue his new venture with The Coastal Holding Company group. Kimberly Moffatt Jones, Advisory Board Chair – Kimberly is a licensed California cannabis business owner and operator. She provides strategic advice to the Coastal organization. Before entering into the cannabis industry, Kimberly was the lead of the training and installation team of a home-health care provider where her role was to develop a clear understanding of the federal and local regulations. Her ability to navigate an industry where the regulations are continuing to evolve has proven a major asset to Coastal’s growth in the California market. Most importantly, Kimberly has harnessed her energies and passion into being a mother and caring for her first born son, who was diagnosed in 2004 with severe autism and biomedical issues. This is where her true passion remains and where she has seen the direct benefits of cannabis as medicine. Kimberly’s devotion to her son's needs brought her to one of the most knowledgeable professionals in the realm of autism, Dr. JoQueta Handy. Dr. Handy developed an educational platform for autistic children that was the basis of S.T.A.R.S., the school Kimberly founded for her son and other autistic children in the community. It was through S.T.A.R.S that Kimberly’s foundation “Leap of Faith” was created to subsidize the expenses so that less fortunate children who also suffer from autism could also attend. Through working with Dr. Handy since her son was diagnosed, Kimberly has seen the positive effects of diet, stem cell treatment and CBD oil as some of the only solutions that seem to truly 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 16 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan aid the physical and developmental aspects of autism. One of Kimberly’s many goals is to work with Dr. Handy to find a way to motivate the medical community to recognize the benefits of CBD oil with autistic children as a more holistic form of treatment over Big Pharma. Eric Newton, Project Director – Eric is joining the Coastal team as a well-respected member of the San Luis Obispo community. He is the owner of Newton Construction, which does about $40 million in government contracts from Oxnard to San Jose. Eric started Newton Construction on his ownin 2000 and built the company to employ 50 to 70 people. The majority of his employees make over the median income in San Luis Obispo. Newton Construction performs projects from water treatment plants to school renovations. The company self-performs concrete, demolition, framing, electrical, steel, grading utilities, and other construction services. Newton Construction is a signatory to local electrical unions and cement masons. The company is considered one of the premier government contractor in the Central Coast, whose performance and quality is unmatched. Newton Construction has and has had contracts which are either competitively bid or negotiated locally with the City of SLO, City of Paso Robles, City of Atascadero, City of Pismo Beach, City of Arroyo Grande, Cal Poly, Cal Poly Corporation, Cuesta College, California State Parks, SLO RTA, Mindbody, County of SLO, UCSB, SLO Sheriff's Department, Camp Roberts - CA Military Department, Camp SLO - CA Military Department, Vandenberg Air Force Base, Department of the Army, Navy, Paso Robles Unified School District, SLO Office of Education, and the County of Santa Barbara. Notably, Newton Construction was contracted for the Santa Maria Airport to build a new TSA Security System and complete perimeter, which required special security clearances. Eric, along with his wife Rodessa, is also an owner of California Coastal Investments, LLC, which owns and manages several commercial and residential properties across the Central Coast. Currently, the company has 19 tenants. With his company, Eric has designed and developed many projects in San Luis Obispo and is familiar with the process of getting a new project through City Departments. With his local resources of architects, engineers, subcontractors, and employees, Eric will be able to fast-track Coastal’s project through entitlement and construction. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 17 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Additionally, Eric and his wife are partners in SLO Kind, LLC, a cannabis microbusiness that will concentrate on manufacturing of edible and beverage products. The company is almost through the approval process and will commence the building renovations soon. Eric also owns Libertine Brewing Company in San Luis Obispo. Started in 2014 in Morro Bay, the business since expanded to a manufacturing and packaging location in Santa Maria, a full-service brewery and restaurant in San Luis Obispo,, and a tasting room in Avila Beach. Libertine employs over 80 people across all locations. Eric holds multiple liquor licenses under these businesses and has never had any complaints or violations. Outside of his career, Eric is a private pilot, Certified Rescue Diver, and past Chapter Advisor for Delta Tau Delta fraternity. Rodessa Newton, Local Community Director Rodessa Newton is the Coastal’s Local Community Director. Rodessa Newton is the Broker/Owner of Triad Real Estate Group. She is a San Luis Obispo County Native and a graduate of Cal Poly University. Rodessa is a member of the Women's Council of Realtors, National and California Association of Realtors and the SLO Chamber of Commerce. She is a past Board of Director and Public Relations Chairperson for the San Luis Obispo Association of Realtors and is currently the Professional Standards and Ethics Chair. She provides the full spectrum of Real Estate services including Residential & Commercial Sales. Having grown up in San Luis Obispo County enables Rodessa to give her clients more local knowledge, as she is familiar with all of our Countywide real estate markets. Some of her Real Estate achievements include receiving her Brokers License, receiving her GRI (Graduate Real Estate Institute) which gives her a higher level of education in all aspects of the industry. She is also a Seniors Real Estate Specialist (S.R.E.S.), helping seniors understand capital gains & estate tax implications of selling. When Rodessa’s Children were in elementary school she was elected to the Los Ranchos Elementary School Site Council where she reviewed and evaluated school improvement programs and school budgets. Rodessa is currently the Board of Directors President for Downtown SLO which fosters economic vitality and beautification of our Downtown. Two committees she has served on for Downtown SLO is Food and Beverage where she co-chaired in working with Law enforcement and other bar and restaurant owners to promote safety and 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 18 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan address any concerns that arise in the industry. She is currently the Co-Chair of The Special Events Committee where you can find her planning the SLO Annual Christmas Parade, Santa’s House, Farmers Market, Concerts in the Plaza and many other community events and works closely with the City on these events. Rodessa and her husband own Libertine Brewing Company which is a restaurant and microbrewery in San Luis Obispo. Libertine volunteers and donates to environmental groups such as ECOSLO, Sea Shepherd, Morro Bay Estuary among others and enjoys organizing many beach cleanups throughout the year. Libertine uses sustainable practices as much as possible. Rodessa and her husband Eric currently employ over 125 people in the County with their Restaurant, Real Estate and Construction Company where they enjoy building small development projects. Rodessa was also on the American Perspective Bank Advisory Council as a Real Estate Professional discussing potential defaulting loans. Other local Banks who have employed her to represent them as a Trustee are First California Bank, Heritage Oaks Bank, Santa Barbara Bank and Trust, Mission Community Bank and Sesloc Credit Union. In addition to being a trusted advisor she is the exclusive Real Estate Broker for the University of California Santa Barbara working with the Housing Authority to develop and sell Affordable Faculty Housing to recruit and retain Professors given the high cost of living. Other community involvement includes contributing to the Performing Arts Center, Womenade, Women's shelter, friends of 40Prado , Jack’s Helping Hand, Special Olympics, Family Care Network, People’s Self Help Housing, SLO Children’s Museum and SLO YMCA. Rodessa was recently appointed to the Chamber of Commerce Business Council which identifies and discusses issues affecting local business success. Rodessa has been a guest speaker at Cal Poly for the Entrepreneur Club and is a lifetime member of the Cal Poly Alumni Association. She is an advocate for children and education including Being a Big Sister Mentor in the Big Brother and Sister organization while in College and fundraisers for this non-profit. Rodessa has 3 daughters who have through the years volunteered their time to many of these same organizations including Woods Humane Society. Two of her daughters are attending Cal Poly University and one entering San Luis Obispo High School. San Luis Obispo is her home and being involved and giving back to her Community is something she very much enjoys and encourages others to do. Rodessa prides herself in building strong, long term relationships with 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 19 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan the highest standards and personal commitment in every industry she is involved in as well as her dedication to her community. Kelsi Bonzi, Sustainability Coordinator – Kelsi is a local to San Luis Obispo. As a nature lover and environmentalist, Kelsi is joining Coastal to facilitate eco-conscious business practices. She is a current student at Cal Poly, where she is majoring in world languages. Kelsi is a world traveler, having taught English in Spain and the Dominican Republic, She has also worked as a Spanish and English teacher for English as a Second Language students. Kelsi has been a social entrepreneur from a young age, volunteering with the Woods Humane Society. While a student at San Luis Obispo High School, Kelsi served as President of the Gay-Straight Alliance to promote awareness and acceptance. Jennifer Jacobsen, Account Manager – Jennifer is a local to San Luis Obispo County, joining Coastal to keep our books accurate and organized. Currently, Jen works for Jacob Construction as an account manager. Previously, Jennifer worked as a school teacher. She is a reliable, hardworking, and exemplary employee who will serve as a model for all Coastal staff. Jennifer is a mother of two. Lucy Matthews, Community Coordinator – Lucy is a local to San Luis Obispo who is joining Coastal to coordinator community engagement efforts. She has worked as a preschool teacher for several years. Lucy is outdoors-oriented and an avid hiker. Lucy is a genuine and trustworthy individual, and she intends to go back to school to get her Master’s. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 20 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Virender Ahluwalia, Chief Financial Officer – Virender is a catalyst and builder with 20+ years of finance and operations oriented leadership success at high-growth organizations. He has a strong track record of building companies and managing strategy, financial, business/corporate development, IT, administrative and operations management in early stage, high growth, pre-IPO and Fortune 500 and turn-around business environments. Virender has worked as key management for fortune 100 public companies including Coca Cola and Seagram’s as well as upstart technology companies Shutterfly and Vertical. Virender is an innovator and change agent whose true value is the knowledge and experience to raise multi-millions in capital, establish and optimize new organizational infrastructure, build high performing teams, steer product development, drive business development, and capture revenue. He has a proven record of enabling executive teams to develop new markets and manage high growth. He has consistently delivered innovative and cost effective solutions while facilitating change and streamlining operations as a result of rapid growth, start-ups, mergers and acquisitions/LBOs, and he has demonstrated success in raising $300+ million of equity or other financing from venture capitalists, banks and related sources. Elisa Stewart, Stewart & Muessel, General Counsel – Elisa J. Stewart is a managing partner and founding member of Stewart & Musell, LLP, a law firm that specializes in cannabis law, employment law and criminal law. She is a seasoned litigator with twenty years of experience conducting criminal and civil trials. Her cannabis law practice ensures a keen and observant eye on all aspects of compliance with legal requirements for cannabis related businesses and business formation. Elisa brings her experience in regulatory compliance, employment and civil law to Coastal. She is a member of California Norml and the National Cannabis Industry Association. She has successfully represented numerous clients in navigating the local permitting and state licensing process. Her practice is now expanding to additional jurisdictions where the cannabis industry has been legalized. Ms. Stewart is licensed to practice law in California, Colorado, Massachusetts, New York, and New Jersey. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 21 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Lauren Ginsberg, Retail Operations & Human Capital Advisor – Lauren is an experienced and dedicated operations and organizational development professional with 8+ years experience in structuring, coaching and leading retail and HR teams in the cannabis space. Lauren has a proven track record of utilizing change management and operational skills to implement highly successful programs, retail location planning, logistics, staffing and standardized practices. She is highly systematic, innovative and collaborative individual, with a focus on empowering employees to achieve common goals with shared values. From it’s origination, Lauren worked as Chief Retail & People Officer with The Native Roots Dispensary Group in Colorado, the state’s leading and largest cannabis brand. Notably one of the most recognized brands in the cannabis industry. She directly managed Retail Operations, Human Resource and Training functions for entire company, which included 20 retail locations, 3 production facilities and 700 employees. She was also responsible for systematizing the processes consisting of branding, structured sourcing, interviewing, training and education, standardization of operating procedures, monthly performance reports, market analytics and internal hiring. At Native Roots, Lauren also served as Director of Retail Operations, where she developed the framework for sustainable and effective growth for Retail Operations and effectively managed the opening of the 20 locations by way of standardizing practices and streamlining organizational design through collaborative Human Resources support to optimize operational efficiency. Christian Nitu, Director of Operations – Christian Nitu was born and raised in Pasadena, CA and spent the last 10 years living in Colorado where he worked in the regulated cannabis industry. Christian is a graduate of the University of Colorado at Boulder with a degree in Marketing, Italian, and Entrepreneurship. Christian is a serial technology entrepreneur who started his first company, SnowGate in 2011 building the world’s first locker system that was controlled by a phone. SnowGate was acquired by the largest Locker manufacturer in North America, along with 2 published Utility patents: US20150356801A1 and US20150007619A1. He wrote and was awarded for the company’s technology. Christian began consulting on data analytics for the biggest licensed dispensary business in the country, Native Roots in 2013. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 22 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan In 2015 Christian founded a technology company, Weave, that built one of the country’s first Point of Sale systems that was integrated with METRC. Weave gained an investment and partnership with Google to provide a reliable, sophisticated and robust solution for dispensaries to manage their customers and inventory from seed to sale. Christian served on the board for the State of Colorado METRC group, including the Marijuana enforcement division, Department of Revenue and METRC for 2 1/1 years and was instrumental in crafting a lot of the trace and track system API’s for third party integrators. Weave is utilized by licensed retailers in over 75 locations across 5 states. Along with Weave, Christian has helped over 70 retailers across the country with data management, analytics and compliance. He joined Mar Vista Partners in 2018 as a consultant to help investment groups and business owners vet dispensary operations and acquisitions/mergers. In addition, Christian helped build the sales, product and compliance infrastructure for The Pottery/ Highline Distribution in Los Angeles, CA. In October 2019, Christian joined Coastal to head up business development and compliance operations due to his heavy experience with state regulations in California, METRC background and understanding of retail and non-storefront retail operations. He focuses on the development of Coastal’s compliance program for distribution, retail and non-storefront retail, delivery, and manufacturing operations. As the Director of Business Operations, Christian will assist Coastal in making key partnerships, strong contracts with vendors and expanding the Coastal brand through the cannabis industry. Myles Peck, Director of Business Development – Myles is committed to achieving Coastal's business objectives and developing a company culture with both style and integrity. As he explores and assesses new business opportunities, Myles works to ensure that each decision the growing business makes is responsible, a good fit for the community, and compliant with California cannabis regulations. With a background in producing large-scale concerts and events, Myles is comfortable building and fostering relationships with both respected community leaders and strategic partners who share Coastal's vision and values. In addition to managing the company's growth, Myles is involved in Coastal's marketing and promotional initiatives. His passion for creativity and design was cultivated during his previous work as an executive producer, and Myles enjoys applying this knowledge to the development of Coastal as a premier cannabis brand. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 23 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Devon Wardlow, Director of Public Affairs – Devon leads Coastal’s public affairs and political engagement strategy. A Santa Barbara native, Devon has recently returned to Santa Barbara after spending the last seven years working in politics in Washington, DC. Most recently, Devon spearheaded Lyft’s federal policy for infrastructure and transportation legislative priorities with Congress and the White House. Prior to Lyft, she managed Facebook’s Small Business Policy portofolio with Congress. Devon is an Obama Administration alum, serving as a political appointee at the US Dept of Labor as the Private Sector Engagement Advisor to Secretary Perez. Devon earned her BA at the University of CA Santa Barbara. Additionally, Devon is a White House Intern Alum, Dartmouth Bridge Alum, Hebrew University Graduate Alum. Benjamin Condron, Licensing and Compliance – Benjamin Condron oversees Coastal’s licensing and compliance as well as operational strategies. He has been instrumental in Coastal’s successful cannabis business license applications in California. Ben possesses an extraordinary understanding of regulatory and licensing processes as well as operational strategies of cannabis businesses. Prior to Coastal, Ben worked at The Cannary, a Pre-ICO medical cannabis dispensary in Los Angeles, California, where he took on multiple roles including lead cultivator, extractor, and sales associate. Ben also worked at In Good Health, a vertically-integrated Registered Marijuana Dispensary in Brockton, Massachusetts, as an assistant retail manager, packager, and trimmer. His experiences at these facilities provided exclusive, intimate opportunities to observe and participate in regulated cannabis businesses. Ryan Bishara, General Manager – Ryan Bishara is an experienced cannabis industry professional who has operated retail cannabis facilities in multiple recreational and medicinal markets. Ryan was previously a nuclear security contractor who specialized in the physical security of critical infrastructure in a federally regulated industry. First entering the industry in Colorado, Ryan managed several large dual-license dispensaries for LivWell, one of the largest vertically integrated cannabis businesses in the state. The company operates 14 dispensaries in Colorado and Oregon, holds 48 licenses and has 140,000 square feet 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 24 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan of grow space. The company also has a philanthropic arm, LivWell Cares, through which directs its charitable activities and community engagement efforts. In 2018 joined Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator. GTI has 10 manufacturing facilities and licenses for 70 retail locations across nine highly regulated U.S. markets. The company currently employs about 500 people and serves hundreds of thousands of patients and customers each year. The company is also listed on the Canadian Securities Exchange and has a Market Cap of $175 million. While with GTI, Ryan helped open and operate some of the very first dispensaries in Pennsylvania, one of East Coast’s expanding medical markets. To help better educate the community, Ryan held medical marijuana workshops, hosted public outreach events, and sponsored local charities. John Giammanco, Delivery Manager – John Giammanco oversees Coastal’s delivery operations. Before joining Coastal, John founded New Level Collective delivery service with his wife under Proposition 215 in 2015. New Level Collective served many communities along the Central Coast from Goleta to San Luis Obispo, having conducted 25% of his business in San Luis Obispo. John turned the company into a very profitable entity that paid taxes and remained legally compliant with zero violations or citations. He attended Long Beach State University and previously worked as a manager at multiple restaurants, including Irish Pub in Hermosa Beach, Strike in the Orange County, Watermark On Main in Ventura and Santa Barbara, Arch Rock Fish in Santa Barbara, and Benchmark in Santa Barbara, and Brophy Brothers in Santa Barbara. Tony Gallo, Director of Security – Tony has been the leading security authority in the cannabis industry since its infancy and has over 30 years’ experience providing security solutions to high-risk businesses across the US and Canada. Tony focuses on protecting companies handling large amounts of cash and high-value merchandise, and has managed security for a large publicly-traded pawn shop company operating 1,300 stores in three countries. As a well-respected expert in the field, he has been a speaker at numerous cannabis business conferences across the United States and is a published author on cannabis security. His expertise on mitigating security threats from armed robbery, burglary, and loss prevention led to a 2015 Southwest CannaAwards for the Most Influential Person in the Cannabis Industry. He has designed the security operations for over 50 cannabis businesses totaling 2,000,000 square feet in size. In 2018, his company was named one of the Top Cannabis Ancillary Businesses, one of only five security companies recognized on the list. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 25 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Tony strives to provide cost-effective security strategies that ensure the safety of clients, customers, and employees at cannabis facilities. In 2013, Tony launched Sapphire Risk Advisory Group in Ft. Worth, Texas, and has worked in over 20 states and Canada providing effective security solutions to new cannabis companies. Tony designed the highest scoring security sections for licensing applications in highly-competitive states such as Texas, Pennsylvania and Arkansas, and has testified before the legislature in Ohio regarding cannabis security. Tony’s expertise covers a wide range of businesses, and he has offered solutions to cultivation facilities as large as 400,000 square feet and dispensaries as small as 890 square feet. Tony also offers his security consulting services to the Ronald McDonald House charity in the Dallas-Ft. Worth area. Tony holds a BS in Criminal Justice from New Jersey City University and is a licensed Security Consultant. Lexie Hingsen, Marketing Associate – Lexie brings four years of cannabis industry experience to the Coastal team from her years living in Amsterdam, Netherlands. She provides support for the marketing team and structures the social media outlets. Her past experience of leading social media and marketing campaigns for large projects and events in the cannabis and fashion world is key to Coastal's growth. She also works to establish, build and maintain relationships with cultivators and community members throughout the region. Austin Jones, Marketing Associate – Austin is a Southern California native who grew up in Hemet, California. He has been a Santa Barbara resident for nine years, and has extensive knowledge of the area’s amazing attributes. His hobbies include paddle boarding, playing volleyball and hiking new trails. He received his double major in Sociology & Psychology from University of California Santa Barbara. Integrating his education into the real estate profession has allowed him dynamic insight into cross-cultural understanding of his clientele. With a strong emphasis on communication skills, research and analytics, Austin Jones prides himself on creating lasting relationships with his clients. He is diligent in studying upcoming trends in the real estate market and is dedicated to executing prompt transactions. Whether they 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 26 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan desire to sell an existing property, search for the perfect home, or invest in real estate, Austin meets each client’s unique interests with genuine insight by listening to specific needs and wants. Dale Zink, Coastal Manufacturing LLC – Dale oversees Coastal’s sister company, Coastal Manufacturing, LLC. Dale is the CEO of Xabis and has over 25 years’ experience in business, finance, and information technology. Dale’s focus is on business development, partnerships, finance, and overall operations. Prior to joining Xabis, Dale was COO for Immersive Partner Solutions, a high-tech firm specializing in management of IT products. Dale has held positions of CEO, COO, CFO, and CIO for various companies. He has partnered with some of the largest companies in their respective industries, including Honeywell and Cisco. Dale started his career with Arthur Anderson and received his BS in Accounting from Purdue University. Garret Nicodemus, Coastal Manufacturing, LLC – Garret is the COO of Xabis and leads both engineering and scientific development of the supercritical extraction processes, purification schemes, and product integrations, using his background in separations and process design and his proficiency with process simulation software (e.g. Aspen Plus, HYSYS). Since the founding of Xabis, Garret has designed and implemented ongoing operations in three different states. Garret was previously a lecturer and senior researcher for the Department of Chemical and Biological Engineering at the University of Colorado Boulder, securing over one million dollars in grants and company funds, and instructing classes on separation technologies. Garret holds a PhD and MS in Chemical and Biological Engineering from the University of Colorado in Boulder and a BS in Chemical Engineering from Lafayette College. Caitlin Czernik, Coastal Manufacturing, LLC – Caitlin is a process engineer who brings expertise in chemical process simulation, unit operations design, and economic and profitability analysis. Previously, she worked as a professional research assistant at the University of Colorado for four years. While there, she conducted research in solar thermal hydrogen production and atomic layer deposition. As an undergraduate, she assisted with research at the National Renewable Energy Laboratory and the Joint Institute for Laboratory Astrophysics. Caitlin holds a B.S. in chemical engineering from the University of Colorado. Donna Kuntzler, Coastal Manufacturing, LLC – Donna is our implementation manager and is a Chemical and Biological Engineer and Neuroscientist whose background includes hemp processing and stem cell research. Donna comes to Xabis from Enerhealth Botanicals, where she was the Chief Science Officer and Lab Manager where she was responsible for quality control, process optimization, and GMP and FDA compliance. While attending the University of Colorado she was selected to be an Undergraduate Researcher at the prestigious Anseth Lab. Donna volunteers her time to the Helix Institute for Health, an educational non-profit, teaching 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 27 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan classes on cannabinoid sciences to doctors and practitioners. Jason Hamilton, Coastal Manufacturing, LLC – Jason is the Director of QA and is skilled in Mass Spectrometry, High-Performance Liquid Chromatography (HPLC), Gas Chromatography, Lipid Extraction and Analysis, and Microbiology. Before joining Xabis, Jason spent the last year as a Postdoctoral Researcher at the University of Texas Southwestern Medical Center in Dallas where he developed methods for the extraction and analysis of non-sterol isoprenoids and fat-soluble vitamins using liquid chromatography coupled to mass spectrometry (LC-MS); while working within the lipidomics mass spectrometry core to develop new methods and protocols for lipid analysis. Prior to grad school, he spent six years working in both clinical and research labs in the fields of microbiology and molecular biology. Jason received a Bachelor of Science in Biology from Texas Tech and a Doctor of Philosophy (Ph.D.) in Analytical Chemistry focused on biological mass spectrometry with an emphasis on lipid analysis of individual cells from the University of North Texas. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 28 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Capitalization Table Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Business Plan The Coastal team is committed to operating a compliant, responsible, and transparent cannabis operation that exceeds industry-best practices for supplying cannabis products to customers and patients. Our policies and procedures relate to all aspects of our business and cover the handling, storage, selling, tracking and dispensing of cannabis products and cannabis waste. With respect to licensed delivery of cannabis, Coastal Delivery SLO, LLC, a California Corporation, is committed to lawful operations and strict adherence to standard operating procedure. Coastal Delivery is a privately funded business with the objective of delivering compliant, licensed and high quality cannabis goods to legal customers and patients. In accordance with governing law, Coastal Delivery shall provide convenient access of licensed cannabis goods that will be delivered in a timely manner to compliant locations where the consumer will be (CCR 16 § 5416 and BPC § 26013, 26070, 26090). With respect to the licensed delivery of cannabis, Coastal Delivery shall only conduct business with other licensees holding the same license types (whether Adult-Use or Medical) and shall prominently display its license at the premises (CCR 16 § 5406 and BPC § 26013, 26070) Coastal Delivery will maintain a record of clear and unbroken chain of custody of all retail products at all stages from receipt. Physical inventory counts and reconciliations will be done on a daily, weekly and monthly basis in addition to scheduled inventory checks that will be performed. All waste management logs, transportation manifests, purchasing invoices, testing log sheets will be stored on site in a secured storage area. The Coastal team is committed to operating a compliant, responsible and transparent cannabis operation that exceeds industry-best practices for delivering cannabis products to customers and patients. Our policies and procedures relate to all aspects of our business and cover the handling, storage, selling, tracking and dispensing of cannabis products and cannabis waste. To ensure the highest quality customer experience, we have a rigorous selection process for identifying quality employees and invest significant resources to provide them with a robust educational platform and training in all relevant areas of their positions. Our talented team members represents the diverse set of backgrounds and cultures that intersect in the cannabis industry. Upon securing a license, we will build a skilled team of individuals from the San Luis Obispo community including delivery staff, inventory specialist, and transportation specialists. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 30 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Delivery Policies and Procedures As defined by CCR §5415(d), the delivery process begins once the delivery team leaves the non-storefront retailer’s licensed premises in the secure vehicle that is loaded with cannabis goods per each transfer manifest. Delivery ends after goods are delivered and the vehicle returns to the licensed premises with completed transfer manifests. The following procedures will be implemented to protect the security and integrity of cannabis goods during delivery: During delivery, the delivery team will keep a copy of the following documents: The retailer's current state and local licenses and permits (CCR §5415(e)) Each employee’s identification badge that meets the requirements of CCR §5043 and CCR §5415(e) Each employee's government-issued identification (i.e. current California driver’s license) (CCR §5415(e)) Transfer manifests (CCR §5314(d)) A delivery employee will be present in the vehicle at all times unless the vehicle is securely locked with an activated alarm (CCR §5417(c)) Per CCR §5313(b), no individuals other than the licensee or authorized delivery employees may occupy the vehicle during delivery The delivery team will ensure that cannabis goods remain out of public view at all times (CCR §5417(b)) and that packages are not opened or tampered with per CCR §5311(i) For the safety of delivery personnel and to protect the security of cannabis goods or currency that are being transported, the following SOPs will be implemented prior to leaving the licensed premises: Receipt of Delivery Upon delivery, the delivery personnel will personally verify the identity of the delivery recipient per state-issued photo identification, and a valid physician’s recommendation if the recipient is a qualified patient, or a valid caregiver’s card if the recipient is a registered primary caregiver. For each delivery, a receipt will be prepared that the customer will sign to verify successful completion of the delivery. One copy will be provided for the customer, and a second copy will 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 31 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan be retained by the delivery employee (CCR §5420(b)). The receipts will be used to document and verify the account of gross receipts charged and received. The delivery receipt will contain the following information per CCR §5420(a): Retailer name and address Name of each employee involved with delivery and preparing the order First name and customer number of the delivery recipient Date and time of the delivery request Delivery address Invoice describing all cannabis goods requested for delivery, including amount by weight, volume, or other accurate measures, and the cost of goods sold including taxes, fees, and any other charges Date and time the delivery was made Signature of the delivery recipient Delivery Employee Requirements Delivery service will be provided by designated employees of the licensed facility; contractors will not be retained for delivery (CCR §5415(a)). The facility will maintain a database of all authorized delivery employees (CCR §5415(f)), which will include a copy of each employee’s valid California driver’s license, and verification that delivery employees are at least 21 years of age (CCR §5415(b)). Delivery employees will be prohibited from using or consuming cannabis goods while conducting delivery activities in accordance with CCR §5419. Delivery Routes Delivery routes will be established and documented in the transfer manifests, and tracked in real time using the delivery vehicle’s GPS device (CCR §5417(d)). Point-to-point locations along the delivery route may only include the licensed premises and the verified delivery addresses listed on the transfer manifests. Deviations from the planned routes are not permitted except for necessary rest, fuel, or vehicle repair stops (CCR §5311(j)), or because road conditions make continued use of the route unsafe, impossible, or impracticable (CCR §5421). Delivery vehicles may not leave the State of California while possessing cannabis goods (CCR §5416(b)). Cannabis goods may only be delivered to a physical address (CCR §5416(a)) within a California city or county. In accordance with CCR §5416(c), deliveries are prohibited to addresses located on public land, including 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. Deliveries are also prohibited to buildings owned or leased by a public agency. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 32 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Vehicle Requirements Coastal will maintain its own fleet of vehicles for secure delivery of cannabis goods or secure transport of currency or cash. An up-to-date list of vehicles used for delivery will be maintained in a database. Vehicles used for delivery are subject to inspection by the Bureau at any time per CCR 16 §5417(f). Vehicles used for these activities will meet the following security requirements in keeping with CCR 16 §5417: Vehicles will be equipped with high-security locks on all doors, a battery isolator switch, a reverse camera, an alarm system Vehicles will be properly insured, registered, and inspected, and will display all appropriate stickers and other proof of registration and insurance in compliance with California state law per CCR 16 §5312(a)(3) No vehicles used for delivery will display advertising or symbols that suggest its use for delivery or its affiliation with a cannabis retailer A database of authorized delivery vehicles will be maintained that records information such as make, model, color, license plate, Vehicle Identification Number (VIN), registration, and proof of ownership; the database will be made available to the Bureau on request per CCR 16 §5417(e) and written notification of any changes will be made within 30 days per CCR 16 §5312(c) A dedicated Global Positioning System (GPS) device will identify the real-time geographic location of the vehicle at all times during delivery; GPS logs shall be made available to the Bureau on request (CCR 16 §5417(d)) A stolen vehicle recovery system (i.e., LoJack or similar) with radio frequency tracking will be installed to assist law enforcement response to criminal theft or diversion An in-vehicle video surveillance system that meets the requirements specified by CCR 16 §5044 and including: high-definition video cameras; live streaming capability; wide-angle lens and other camera specifications to capture detailed images of all activities and individuals involved in transport; and a secure compartment for video recording equipment that is inaccessible to the driver and other transport personnel Authorized personnel will have access to the video recording equipment in order to retrieve and archive surveillance footage per CCR 16 §5044(i)-(j) Secure cargo area or lock box with keypad access to protect the physical security of cannabis or currency during transport Cargo areas will be temperature controlled to protect the quality of perishable cannabis goods Vehicles will be serviced on a regular schedule to ensure that critical mechanical and security systems are fully functional and not likely to fail mid-delivery 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 33 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Point of Sale System Coastal is currently testing point of sale platforms that are used to collect detailed and accurate records of each medical and adult-use cannabis sale in accordance with CCR 16 §5425(a). Coastal intends to use Weave, a cloud-based comprehensive point of sale solution that was2 designed specifically for the cannabis industry. The Weave platform is scalable, with legacy system designs that allow the software to evolve and keep pace with changing regulations, the latest industry best practices, and innovations in technology and digital security. Weave has already been tested in the marketplace through its 320 current users and the $960 million in retail cannabis sales across 5 different legal cannabis markets that have been processed to date. Our POS system is on the list of approved integrators of the state trace-and-track system METRC. The Weave point of sale platform includes an inventory management tool that is fully compatible with METRC, including data validation features that ensure records exported into METRC are complete, accurate, and free of errors to enable fast and efficient inventory tracking and reconciliation. The inventory management tool includes an extensive cannabis product catalog to streamline the process of maintaining descriptions of cannabis goods available for retail and delivery customers in keeping with the requirements of CCR 16 §5423. The Weave platform is also compatible with hardware commonly used in retail sales including label, receipt, and barcode printers, and wireless barcode scanners. Point of Sale Transactions Customer transactions will be conducted using integrated facility POS software. The POS software will include different levels of access; for example, retail staff will be able to conduct routine sales transactions, while only managers or other authorized employees will have pin code access to enable other functions such as voids, returns, discounts, and reading totals or other data. The POS system will electronically record all customer information, cash, credit card, and other transactions, including signature verifications, as well as provide printed receipts to customers. Transactions recorded by the POS system may not be altered, Weave has an immutable transactions database which allows extensive audit tracking. Within Weave, our sales staff are able to different cash reports and see daily cash balances. 2 https://www.weaveiq.com/ 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 34 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Online Point of Sale Transactions Online sales transactions will be completed using the Weave point of sale platform, which is fully integrated with METRC for real-time inventory tracking of all purchased items. Every sale will be documented as a detailed and accurate record in accordance with CCR 16 §5037, which will allow Coastal to collect all necessary gross receipts and revenue, sales, and tax data required by the regulation. Since all products will be properly labeled and marked with a Unique Identifier Number (UIN) barcode, the point of sale system will be able to automatically categorize each line item on a sales invoice as adult-use cannabis, medical cannabis, or non-cannabis product purchase for accurate reporting and collection of applicable state and local tax. Adult-use cannabis non-storefront retail purchases, including in-facility and delivery sales, are subject to the following daily limits per single adult-use customer in accordance with CCR 16 5409(a): No more than 28.5 grams of non-concentrated cannabis (e.g., flower) No more than eight (8) grams of concentrated cannabis, including concentrated cannabis contained in cannabis products; concentrated cannabis is defined by BPC §26001(h) as cannabis that has undergone a process to concentrate one or more active cannabinoids, 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 35 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan thereby increasing the product’s potency (resin is considered a concentrate by this definition) Medical cannabis non-storefront purchases, including in-facility and delivery sales, are subject to the following daily limits per single patient or primary caregiver in accordance with CCR 5409(b): No more than eight (8) ounces of medicinal cannabis, which is defined by HSC 11362.77(d) as the dried mature processed flowers of the female cannabis plant or the plant conversion A medical cannabis purchase may exceed these limits if specified by a valid physician’s recommendation per CCR 16 §5409(c) or in accordance with county or city medicinal cannabis guidelines that exceed the state limits per HSC §11362.77(c) Free medical cannabis goods provided under the provisions of CCR 16 §5411(b) will count toward the daily purchase limit and will be fully inventoried and tracked in METRC as a retail transaction per state-mandated cannabis tracking and monitoring protocols The inventory management capabilities of the point of sale system and METRC will be leveraged to ensure the daily purchase limits that are available for delivery to an individual for adult-use and medical cannabis are enforced. All purchased adult-use and medical cannabis goods that leave for delivery will be placed in an opaque exit package per CCR 16 §5413(c) before leaving the premises for delivery. Well before January 1, 2020, all of our product packages containing cannabis goods will be resealable, tamper-evident, and child resistant, per CCR 16 §5413(b). As shown below, Weave has built in the equivalency state rules automatically so our customer sales representatives can focus on servicing customers and not worry about conducting sales out of compliance. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 36 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Inventory/Storage 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 37 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Inventory Control Procedures Inventory Track & Trace System Coastal will implement an Enterprise Resource Planning (ERP) system, which is a process-oriented tool that unifies all documentation systems across the facility. The ERP system itself is described in more detail under the Record Keeping Procedures section below. This system will be integrated with METRC, the state-mandated track and trace (“seed-to-sale”) inventory management system, to ensure full batch traceability for regulatory compliance and inventory monitoring as required by CCR 16 §5048-5051 and SLOMC 9.10.130(C). METRC provides industry personnel with reporting capability for government mandated inventory data and information. All medical and adult-use cannabis products will be associated with a UIN and tracked in real-time through barcoding and RFID tags. METRC was developed by Franwell and includes the following features: Perpetual and real-time inventory tracking Audit capability, inspection reports, and anti-piracy safeguards for inspections Real-time digital transport manifests for transportation safety to prevent diversion Establishes trends and benchmarks for processing Tracks employee actions to document good process control and prevent diversion For commercial cannabis activities, such as sales, transfers, destruction, and disposal, the following information will be captured in METRC per the requirements of CCR 16 §5049(b) and SLOMC 9.10.130(E): Name and type of cannabis goods Testing lab results UIN of the cannabis goods Amount of cannabis goods by weight or count, and total wholesale cost of cannabis goods, as applicable Date and time of the activity or transaction Name and license number of other licensees involved in the activity or transaction Transport manifest data in keeping with CCR 16 §5049(b)(6) for retail delivery or transportation of goods between licensed facilities A description of any adjustments to METRC records, such as loss of goods due to spoilage, fouling, or other adulteration METRC provides a platform for creating a detailed record of all inventory and activities associated with a commercial cannabis license. In accordance with CCR 16 §5423, the following information will be entered into METRC for all cannabis goods in the non-storefront retail facility inventory: 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 38 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan An identifying description of each item An accurate measurement of the quantity of the item The date and time the cannabis goods were received from a licensed distributor The sell-by or expiration date provided on the package, if applicable The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis goods to Coastal The price the retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs METRC System Administration An active and functional METRC account will be put in place before any CCB activity takes place at the facility per CCR 16 §5048(a). In accordance with CCR 16 §5048(b), a designated individual owner will take responsibility as the METRC account manager, and will successfully complete all METRC training required by the Bureau of Cannabis Control (the Bureau). The METRC account manager will have the ability to authorize additional owners and employees as METRC system users. Additionally, the account manager and each user will be assigned a unique log-on, consisting of a username and password. The account manager or each user accessing the track and trace system will only do so under his or her assigned log-on, and will not use or access a log-on of any other individual, per CCR 16 §5048(c). No account manager or user shall share or transfer his or her log-on, username, or password, to be used by any other individual for any reason. To ensure compliance with all provisions of CCR 16 §5048, the account manager will: Maintain a complete, accurate, and up-to-date list of all METRC system users Ensure all METRC users have completed state-mandated training prior to accessing the system Assign each METRC user with a unique log-on username and password to access the system, which will not be shared, transferred, or used by any other individual Monitor and resolve all METRC compliance notifications, and maintain compliance records in the facility ERP system Loss of Access In the event that connectivity to METRC is lost for any reason, for example, due to server or software malfunction, the facility will notify the Bureau immediately and prepare comprehensive records to document activities during the period of lost access in accordance with CCR 16 5050. Activities that are prohibited when access to METRC is lost include the transfer of cannabis goods, transportation, or non-storefront retail delivery. Once access is restored, the facility will notify the Bureau and enter the information gathered through comprehensive records into METRC within three calendar days, per CCR 16 §5050(c). 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 39 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Inventory Reconciliation An inventory audit will be conducted at least once every 14 days to reconcile physical inventory of cannabis goods with the inventory recorded in METRC, and to ensure we are able to account for all of our inventory, per CCR 16 §5424(a). Inventory reconciliation records will be maintained and shared with the Bureau upon request. Reconciliation will enable Coastal to detect potential cannabis loss, theft, or diversion in a timely manner. Significant inventory discrepancies are defined by CCR 16 §5034(a) as a difference between actual and recorded inventory with a value of 3 percent of average monthly sales. Average monthly sales are calculated from the total sales during the previous six months from the date of the audit (CCR 16 5034(b)). If an inventory audit detects a significant inventory discrepancy, a report will be generated so the results can be shared with the Bureau, state police, and local law enforcement within 24 hours per CCR §5036(b) via the Notification and Request Form, BCC-LIC-027. The report will include the following information: The total quantity and type of cannabis missing from the inventory Review of video surveillance footage and alarm logs during the time of the loss, theft, or diversion Identification of employees, vendors, contractors, and visitors present at the facility at the time of the loss, theft, or diversion Any steps taken by management or other staff to verify or determine the cause of the loss, theft, or diversion Additional documents, reports, surveillance data, and other records applicable to the loss, theft, or diversion will be retained and provided to law enforcement upon request. Standard Operating Procedures These standard operating procedures are developed from years of operational experience in Colorado and other markets, focusing on increasing employee efficiency and maintaining compliance with local, state and federal regulations. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 40 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 41 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 42 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 43 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 44 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 45 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 46 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 47 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 48 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 49 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 50 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 51 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 52 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 53 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 54 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 55 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 56 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Recordkeeping Procedures Enterprise Resource Planning Our ERP system will function as a digital library for administrative and operational documents, including standard operating procedures (SOPs), training materials, vendor manuals, Safety Data Sheets (SDS), maintenance logs, employee records, compliance audits, records and correspondence, and more. The ERP system is also a digital bookkeeping tool that can track inventory, sales, transfer manifests, supply chain management, and vendor activity. This software is built on the cloud-based Salesforce platform and was designed to fulfill the following functional requirements: A unified system with easy-to-use applications and interfaces that work seamlessly across multiple departments with the necessary controlled access A common database accessible through different applications, including inventory tracking Applications and interfaces with suitable permission controls Electronic authorization and signature functions Search and reporting utilities to generate reports based on various parameters Integration modules for human resource management, project management, time tracking systems, and document management Workflow management across different departments and functions Resource-allocation and task-scheduling tools Record keeping capabilities Security Functions 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 57 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Quality Assurance Functions The data recording and analysis functions of the ERP system will enable statistical baselines for performance metrics, adjusting and refinement of operational controls, and other data-driven functions that will ensure the safety and quality of cannabis goods at the facility. The ERP system will archive quality assurance functions that are used to ensure that high-quality cannabis is consistently available from the facility. This includes parameters for environmental conditions in storage areas that are managed by programmable automatic control systems. Instructions for changing parameters, set points, and other functions of automatic control systems will be documented by applicable SOPs. The ERP system will also be used to document lots or batches of cannabis goods, release accepted materials to the delivery or point of sale areas, and track the quarantine and disposal of rejected materials. Audits Documentation and databases facility in the ERP system will be validated through regular audits and reviews. Daily, weekly, and annual audits will be conducted to ensure that inventory data and other information is accurate and up to date. Inventory audits will be conducted by authorized key employees and will include medical and adult-use cannabis goods for retail sale or delivery, cannabis that has been sold or transferred, facility cannabis, and waste cannabis designated for destruction and disposal. The inventory audits will compare the quantities logged in the ERP database with the physical real-time count. The data will be analyzed against specific metrics that account for acceptable statistical discrepancies, moisture loss, and incidental handling losses. Audit reports will be documented by the ERP system and will be made available to the Bureau upon request. The City Manager or his/her designee and any other City of San Luis Obispo official or inspector charged with enforcing any provisions of SLOMC 9.10.140(A), may enter Coastal delivery at any time during the hours of operation without notice for the purpose of inspecting our business for compliance, the terms and conditions of the Commercial Cannabis Operator Permit, or any other City permit or state license, including inspection of the recordings and records maintained per City regulations or the applicable provisions of State law. No Coastal employee or staff member will interfere with this inspection under any circumstances and nor can they refuse the city a review of our records, including video and audio recording (SLOMC 9.10.140(B)). Additionally, any official of the City may enter our retail facility front at any time during hours of operation and without notice to obtain samples of cannabis and cannabis products to test for safety, per SLOMC 9.10.140(C). 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 58 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Records The digital record keeping capabilities of the ERP system will be leveraged to comply with the recordkeeping requirements outlined by CCR 16 §5037. Records that will be maintained include: Financial records including, but not limited to, bank statements, sales invoices, receipts, and tax records Personnel records, including each employee's full name, social security or individual taxpayer identification number, date employment begins, and date of termination of employment if applicable; personnel include all officers, managers, employees, agents, and others currently employed or otherwise engaged by the commercial cannabis business Medical cannabis patron records such as a copy of a valid physician’s recommendation and/or a copy of the identification card for a medical cannabis patient or designated primary caregiver Training records including, but not limited to, the content of the training provided and the names of the employees that received the training Contracts with other licensees regarding commercial cannabis activity Permits, licenses, and other local authorizations required to conduct commercial cannabis activity Security records, such as visitor logs Records relating to the composting or destruction of cannabis goods Documentation for data or information entered into METRC, the inventory track and trace system Quality assurance data including complaints, returns, and recalls All other documents prepared or executed in connection with the licensed commercial cannabis business In accordance with CCR 16 §5037(b), all required records will be legible and stored in a secured area where the records are protected from debris; moisture; contamination; hazardous waste; fire; and theft. Per CCR 16 §5037(d), all records will be subject to review by the Bureau anytime Coastal is exercising the privileges of our license or at any other time as mutually agreed to by the Bureau and Coastal. The Bureau may review records outside of Coastal’s standard daily business hours. Records will be kept in a manner that allows the records to be produced for the Bureau immediately upon request in either hard copy or electronic form, whichever the Bureau requests (CCR 16 §5037(e)). All records will be retained for a minimum of seven years per CCR 16 §5037(a) and SLOMC 9.10.130(F), except for security video surveillance footage which will be kept for at least 90 days 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 59 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan per CCR 16 §5044(h). Records will be maintained electronically following industry best-in-class digital archive and backup procedures, with digital security ensured by the latest software and technology including limited access and authentication (e.g., password) protocols. Records will be made available to state and local regulatory authorities upon request per CCR §5037(a)-(e), except for medical records that are subject to the privacy protections granted by the Health Insurance Portability and Accountability Act (HIPAA). Records may be immediately accessed digitally or by hard copy, as requested per CCR 16 §5037(e). In accordance with SLOMC 9.10.130(A), Coastal will allow City of San Luis Obispo officials to have access to our books, records, accounts, and any and all data relevant to its permitted activities for the purpose of conducting an audit, examination or inspection. Books, records, accounts, and any and all relevant data will be produced no later than twenty-four (24) hours after receipt of the City's request or within a reasonable time as authorized in writing by the City. Financial Records All financial data will be retained in the facility’s record keeping system for a minimum of seven years per CCR 16 §5037(a). Financial records will include: a general ledger containing all transactions such as sales receipts and invoices, cash flow statements, and bank statements; purchasing invoices; shipping manifests, including cash deposits facilitated by an armored car service; tax records; and other documents. Medical Cannabis Sales Records The Weave point of sale platform will be used to facilitate safe and accurate collection of medical cannabis sale transaction data required per CCR 16 §5037, including employee name and number, customer first name and retailer-assigned customer number, list of goods purchased, and price and tax data. Weave protects sensitive patient, customer, and user information with an end to end data encryption through the latest Transport Layer Security (TLS) standards and login credentialing. The Weave ID scan feature will streamline the process of checking in medical cannabis patients and caregivers who repeat business at Coastal’s non-storefront retail delivery. Signage Plan Per SLOMC 17.99.050.D.3, Coastal’s proposed signage will comply with the City’s Sign Regulations for size, area and type of sign. Coastal will not utilize internally illuminated signs and no portion of the cannabis plant may be used in any sign visible from the public right-of-way SLOMC 17.99.050.D.3.b-c). Coastal will include a sign inside the premises that states: Smoking, ingesting, vaping, eating or consuming cannabis or cannabis products on this site or in a public place is prohibited” (SLOMC 17.99.050.D.3.e). 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 60 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Posted Notices The following notices will be clearly and conspicuously posted in accordance with local and state regulations: State licenses issued by the Bureau (CCR 16 §5039) and SLOMC 9.10.060(A) A copy of the cannabis delivery business license, which shall be displayed and visible at all times The City issued business tax certificate The following notices, will be posted on our portal to qualified patients, primary caregivers, and customers: The sale or diversion of cannabis or cannabis products without a permit issued by the City of San Luis Obispo is a violation of State law and the San Luis Obispo Municipal Code.” Secondary sale, barter, or distribution of cannabis or cannabis products purchased from Coastal delivery, LLC is a crime and can lead to arrest.” Employees must immediately leave the commercial cannabis business and not consume cannabis or cannabis products in public view or in any place not lawfully permitted. Staff shall monitor the location and vicinity to ensure compliance.” Commercial cannabis businesses shall post viewable, written warnings that the use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery.” Smoking, ingesting or consuming cannabis on this property or within 100 feet of the business is prohibited.” CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer.” ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO ID REQUIRED." (SLOMC 9.10.230(C)) Additionally, Coastal will post a 24-hour hotline number at the perimeter of the premises to provide citizens in the neighborhood a means to report any observations of potential safety concerns, theft, or other crimes in the vicinity of Coastal’s delivery facility. Even if the activity reported does not directly involve Coastal’s delivery facility, the security alarms, surveillance systems, and observations of on-site security offers may provide law enforcement officials with valuable information to maintain the peace and security of the neighborhood where Coastal conducts its business activities. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 61 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Per SLOMC 9.10.060(B), any owner of Coastal will produce for inspection and copying, upon request of a City inspector, code enforcement officer, or City police officer during normal operating hours, the original of the current and valid City of San Luis Obispo Commercial Cannabis Operator Permit and the appropriate, current and valid license(s) of the State of California for the Commercial Cannabis Activities or Commercial Cannabis Businesses being conducted. Other Policies In keeping with state and local regulations, the following operating procedures will be put in place at the Coastal delivery facility: Consumption of cannabis on the premises is prohibited A Manager will be on the premises at all times during operating hours All restroom facilities shall remain locked and under the control of Management Loitering will be prohibited All employees will be aged 21 or older (CCR 16 §5031) The City Administrator will be provided with the name and telephone number of an on-site manager or owner for 24-hour emergency notice All persons legally authorized to purchase adult-use or medical cannabis under the provisions of Medicinal and Adult-Use Cannabis Regulation and Safety Act MAUCRSA) and can produce valid identification and verified to be older than 21 years of age will be welcome to shop at Coastals online platform; Coastal will not discriminate or exclude any patron including disabled patrons in keeping with applicable local, state, and federal laws and regulations Community Relations Plan Coastal is committed to being a receptive and responsive partner to the San Luis Obispo community. Coastal’s community relations is currently being fulfilled by Rodessa Newton, Coastal’s San Luis Obispo Community Relations Manager with assistance from Devon Wardlow, Director of Public Affairs. Rodessa’s role as Community Relations Manager will ensure that all members of the business community, non-profit and general public have a direct line into Coastal to voice any concerns or highlight any opportunities. The responsibilities of the Community Relations Manager will include, though will not be limited to: 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 62 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Once Coastal’s non-storefront retail facility has been open for a month or more, we will hire an individual local to San Luis Obispo to fulfill this role. The responsibilities of this role will then expand with greater emphasis on deepening Coastal’s connections throughout the community and identifying opportunities for Coastal to become further involved. Contact Information: Community Relations Manager, Rodessa Newton, can be contacted via phone at or reached by email at State Licenses Coastal Licenses Coastal holds multiple commercial cannabis licenses in California. Coastal’s current active local and temporary state licenses are listed below and included in the appendix. Name: Coastal Delivery Services, LLC Address: 819C Reddick Street, Santa Barbara, CA Local License: 64911 Date Issued: 10/22/2018 Expiration: 02/28/2020 State License: C9-18-0000119-TEMP Date Issued: 12/12/2018 Expiration: 4/11/2019 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 63 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Name: Coastal Dispensary, LLC Address: 1019 Chapala Street, Santa Barbara, CA Local License: 64962 Date Issued: 10/16/2018 Expiration: 02/28/2020 State License: C10-18-0000148-TEMP Date Issued: 12/12/2018 Expiration: 04/11/2019 Name: Coastal Distribution, LLC Address: 819B Reddick Street, Santa Barbara, CA Local License: 64981 Date Issued: 10/22/2018 Expiration: 02/28/2020 State License: C11-18-0000631-TEMP Date Issued: 12/20/2018 Expiration: 4/19/2019 Name: Coastal Manufacturing, LLC Address: 819A Reddick Street, Santa Barbara, CA Local License: 64982 Date Issued: 10/22/2018 Expiration: 02/28/2020 Other Licenses Josh Ginsberg, Coastal’s COO and partner, holds multiple commercial cannabis licenses in addition to his licenses with Coastal. Josh’s licenses with Native Roots Dispensary Group in Colorado are listed below and included in the appendix. Josh also holds 4 of the 56 dispensary licenses awarded in the state of Ohio with Cannamed Therapeutics, LLC. The notice of award of these licenses are also included in the appendix. Entity Name and DBA Address State License State Expiration Date Local License Local Expiration Date Date Acquired Alternative Medicine on the Mall, LLC, DBA 910 16th Street, Ste 805, Denver, CO 80202 402-00913 3/12/19 2010-BFN- 1045692 3/12/19 12/1/09 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 64 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Native Roots Apothecary* Alternative Medicine on the Mall, LLC, DBA Native Roots Apothecary* 4990 Dahlia St., Denver, CO 80216 403-01643 5/24/19 2015-BFN- 0000957 5/27/19 12/1/09 Alternative Medicine on the Mall, LLC, DBA Native Roots Apothecary* 910 16th Street, Ste 805, Denver, CO 80202 402R-00027 1/1/20 2013-BFN- 1069055 2/18/19 12/1/14 Boulder RX, LLC, DBA Native Roots Boulder 1146 Pearl Street, Boulder, CO 80302 402R-00173 2/20/19 Recreationa l Marijuana Business License 10-0011 2/20/19 6/1/13 Conscious Confections II, LLC, DBA Native Roots Extracts 4990 Dahlia St., Denver, CO 80216 404-00601 5/17/19 2017-BFN- 0000779 11/21/19 6/1/15 Conscious Confections II, LLC, DBA Native Roots Extracts 4990 Dahlia St., Denver, CO 80216 403-01856 8/30/19 2015-BFN- 0008395 11/14/19 6/1/15 Conscious Confections II, LLC, DBA Native Roots Extracts 4990 Dahlia St., Denver, CO 80216 404R-00344 5/17/19 2017-BFN- 0002518 12/1/19 6/1/15 Conscious Confections, LLC, DBA Native Roots Extracts 680 Lipan St., Denver, CO 80204 404-00172 8/27/19 2013-BFN- 1068827 9/16/19 12/1/09 Conscious Confections, 680 Lipan St., Denver, CO 403-00460 1/7/20 2012-BFN- 1061546 9/27/19 12/1/09 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 65 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan LLC, DBA Native Roots Extracts 80204 Conscious Confections, LLC, DBA Native Roots Extracts 680 Lipan St., Denver, CO 80204 403R-00406 11/12/19 2014-BFN- 0004051 4/1/19 12/1/09 Conscious Confections, LLC, DBA Native Roots Extracts 680 Lipan St., Denver, CO 80204 404R-00006 1/1/20 2013-BFN- 1069061 9/16/19 12/1/09 J&R Partners, LLC, DBA Native Roots Vail* 41290 Highway 6, Unit B5, Avon, CO 81620 402-00893 12/12/19 Marijuana Business License MJM-4591 8/1/19 8/1/14 J&R Partners, LLC, DBA Native Roots Vail* 4990 Dahlia St., Denver, CO 80216 403-01599 1/29/20 2014-BFN- 0004637 5/19/19 8/1/14 J&R Partners, LLC, DBA Native Roots Vail* 41290 Highway 6, Unit B5, Avon, CO 81620 402R-00221 5/16/19 Marijuana Business License MJR-4775 8/1/19 8/1/14 RJJ Academy, LLC, DBA Native Roots Academy* 1003 N. Academy Blvd,. Colorado Springs, CO 80909 402-01084 7/3/19 Medical Marijuana Center Business License 723275 7/3/19 11/1/15 RJJ Academy, LLC, DBA Native Roots Academy* 4990 Dahlia St., Denver, CO 80216 403-01684 7/3/19 2015-BFN- 0002519 9/18/19 11/1/15 RJJ Adams, LLC DBA Native Roots North Denver 620 E. 58th Ave., Denver, CO 80216 402R-00493 7/30/19 Marijuana Establishm ent License AC2018-00 10/4/19 8/1/16 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 66 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 005 RJJ Aspen, LLC, DBA Native Roots Aspen 308 S. Hunter Street, Aspen, CO 81611 402-01047 5/30/19 Medical Marijuana Store License 2018-006 5/30/19 1/1/15 RJJ Aspen, LLC, DBA Native Roots Aspen 4990 Dahlia St., Denver, CO 80216 403-01642 5/30/19 2015-BFN- 0000954 6/22/19 1/1/15 RJJ Aspen, LLC, DBA Native Roots Aspen 308 S. Hunter Street, Aspen, CO 81611 402R-00379 12/23/19 Retail Marijuana Store License 2018-004 1/20/19 1/1/15 RJJ Aspen, LLC, DBA Native Roots Aspen 402R-00379 & 402-01047 City of Aspen Business License 13188 12/31/19 1/1/15 RJJ Colorado Springs, LLC, DBA Native Roots Colorado Springs 3660 Austin Bluffs Pkwy, Colorado Springs, CO 80918 402-01042 5/21/19 Medical Marijuana Center Business License 723101 5/21/19 6/1/15 RJJ Colorado Springs, LLC, DBA Native Roots Colorado Springs* 4990 Dahlia St., Denver, CO 80216 403-01633 5/21/19 2015-BFN- 0000622 5/27/19 6/1/15 RJJ Dillon, LLC, DBA Native Roots Dillon 850 Little Beaver Tr., Dillon CO 80435 402R-00434 3/26/19 Dillon Retail Marijuana Store License 402R-0043 4 7/16/19 7/1/15 RJJ Dillon, LLC, DBA Native 402R-00434 Town of Dillon 12/31/19 7/1/15 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 67 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Roots Dillon Business License 3610 RJJ Edgewater, LLC, DBA Native Roots Edgewater 5610 W. 20th Ave., Edgewater, CO 80214 402R-00335 10/1/19 Retail Marijuana Center 25911 10/26/19 3/1/15 RJJ Edgewater, LLC, DBA Native Roots Edgewater 402R-00335 & 402-00972 Business License 25910 10/26/19 3/1/15 RJJ Edgewater, LLC, DBA Native Roots Edgewater* 5610 W. 20th Ave., Edgewater, CO 80214 402-00972 10/24/19 Edgewater Medical Marijuana Center 25909 10/26/19 3/1/15 RJJ Edgewater, LLC, DBA Native Roots Edgewater* 4990 Dahlia St., Denver, CO 80216 403-01533 10/24/19 2015-BFN- 0001792 6/16/19 3/1/15 RJJ Frisco, LLC, DBA Native Roots Frisco 861 North Summit Blvd, Frisco, CO 80443 402R-00363 11/17/19 Business / Sales Tax License 3352 12/31/19 12/1/14 RJJ Frisco, LLC, DBA Native Roots Frisco* 861 North Summit Blvd, Frisco, CO 80443 402-00905 1/6/20 Business / Sales Tax License 3352 12/31/19 12/1/14 RJJ Frisco, LLC, DBA Native Roots Frisco* 4990 Dahlia St., Denver, CO 80216 403-01432 1/6/20 2013-BFN- 1069958 3/10/19 12/1/14 RJJ Highlands, LLC, DBA Native Roots Highlands 2209 W. 32nd Ave, Denver, CO 80211 402-00637 5/28/19 2010-BFN- 1045914 9/11/19 2/1/17 RJJ Highlands, LLC, DBA Native Roots 4990 Dahlia St., Denver, CO 80216 403-01801 4/15/19 2015-BFN- 0007668 4/29/19 2/1/17 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 68 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Highlands RJJ Highlands, LLC, DBA Native Roots Highlands 2209 W. 32nd Ave, Denver, CO 80211 402R-00368 11/21/19 2014-BFN- 0004211 2/12/19 2/1/17 RJJ Longmont, LLC, DBA Native Roots Longmont 19 S. Sunset Street, Longmont, CO 80501 402-00961 10/10/19 Medical Marijuana Business License MMB-14-0 003 2/27/19 10/1/14 RJJ Longmont, LLC, DBA Native Roots Longmont 4990 Dahlia St., Denver, CO 80216 403-01519 10/10/19 2014-BFN- 1073490 9/16/19 10/1/14 RJJ Longmont, LLC, DBA Native Roots Longmont* 19 S. Sunset Street, Longmont, CO 80501 402R-00416 2/25/20 Retail Marijuana License RMB-15-0 002 2/27/19 10/1/14 RJJ Morrison II, LLC DBA Native Roots West Denver 4000 Morrison Road, Denver CO 80219 402R-00049 1/1/20 2013-BFN- 1069081 1/15/20 11/1/16 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe 2645 S. Santa Fe Dr., Units D&E, Denver, CO 80223 402-01070 8/17/19 2010-BFN- 1045779 9/10/19 1/1/15 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe 2645 S. Santa Fe Dr., Units D&E, Denver, CO 80223 402R-00484 7/31/19 2015-BFN- 0003803 8/19/19 1/1/15 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe surplus) 4990 Dahlia St., Denver, CO 80216 403-01802 4/15/19 2015-BFN- 0007669 4/29/19 1/1/15 RJJ Santa Fe, 4990 Dahlia St., 403-01803 4/15/19 2015-BFN-4/29/19 1/1/15 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 69 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan LLC, DBA Native Roots Santa Fe surplus) Denver, CO 80216 0007670 RJJ Santa Fe, LLC, DBA Native Roots Santa Fe* 4990 Dahlia St., Denver, CO 80216 403-01666 8/17/19 2015-BFN- 0001521 9/2/19 1/1/15 RJJ Sheridan, LLC, DBA Native Roots Littleton 7870 W. Quincy Ave, Denver, CO 80123 402-00977 10/10/19 2013-BFN- 1068512 10/3/19 8/1/15 RJJ Sheridan, LLC, DBA Native Roots Littleton 4990 Dahlia St., Denver, CO 80216 403-01543 10/10/19 2014-BFN- 0003159 4/21/19 8/1/15 RJJ Sheridan, LLC, DBA Native Roots Littleton 4990 Dahlia St., Denver, CO 80216 403R-00408 11/17/19 2014-BFN- 0004169 5/19/19 8/1/15 RJJ Sheridan, LLC, DBA Native Roots Littleton 7870 W. Quincy Ave, Denver, CO 80123 402R-00380 12/23/19 2014-BFN- 0003949 1/21/20 8/1/15 RJJ Tejon, LLC, DBA Native Roots Tejon* 1433 S. Tejon Street, Colorado Springs, CO 80905 402-01140 1/7/20 ; 1/7/19 5/1/16 RJJ Tejon, LLC, DBA Native Roots Tejon* 4990 Dahlia St., Denver, CO 80216 403-01747 1/7/20 2015-BFN- 0006941 1/12/20 5/1/16 RJJ Tower, LLC, DBA Native Roots Denver Airport 7050 Tower Road, Denver, CO 80249 402-00417 3/5/19 2010-BFN- 1045701 3/5/19 4/1/17 RJJ Tower, LLC, DBA Native Roots Denver 7050 Tower Road, Denver, CO 80249 402R-00696 8/25/19 2017-BFN- 0005193 1/17/20 4/1/17 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 70 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Airport RJJ Tower, LLC, DBA Native Roots Denver Airport 4990 Dahlia St., Denver, CO 80216 403-00633 3/5/19 2012-BFN- 1060536 2/26/19 4/1/17 RJJ Trinidad, LLC, DBA Native Roots Trinidad 3149 Santa Fe Trail, Trinidad, CO 81082 402R-00617 1/19/20 Retail Marijuana License 2018-014R 4/18/19 3/1/17 RJJ Uintah, LLC, DBA Native Roots Uintah* 1705 W. Uintah St., Colorado Springs, CO 80904 402-01083 7/3/19 Medical Marijuana Center Business License 723276 7/3/19 11/1/15 RJJ Uintah, LLC, DBA Native Roots Uintah* 4990 Dahlia St., Denver, CO 80216 403-01683 7/3/19 2015-BFN- 0002521 9/18/19 11/1/15 The Dandelion, LLC DBA The Dandelion 845 Walnut Street, Boulder, CO 80302 402-00194 11/15/19 Medical Marijuana Business License 10-0004 11/15/19 1/1/10 The Dandelion, LLC DBA The Dandelion 4990 Dahlia St., Denver, CO 80216 403-01641 5/24/19 2015-BFN- 0000955 5/27/19 1/1/10 Tax Compliance Coastal will operate in full compliance with local and state tax laws. As a first time applicant, Coastal Delivery SLO, LLC’s business operations tax account will be set up in-house after the application has been submitted, per application instructions. We have attached a current copy of our state sales tax seller’s permit in the appendix, and the applicant’s most recent year’s financial statement and tax returns. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 71 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Payment of City Taxes & Fees Upon commencement of operations and until progressive banking reforms for the legal California cannabis industry can be put in place, Coastal anticipates making cash payments to the City of San Luis Obispo for taxes and fees associated with the operation of its cannabis delivery service. Transport of cash payments will be made in keeping with the safety and security provisions of the Shipment Receiving Plan described below. Specifically, some of the procedures for secure cash transfer include the following: Insurance Coastal Holding Company, LLC holds a Commercial General Liability policy with James River Insurance for recreational and medical marijuana retail shops, manufacturing, delivery and distribution. The policy covers all Coastal entities, operations and locations. Additionally, 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 72 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Coastal will cover workers compensation, commercial auto, D&O, excess/umbrella liability, crime, property (building, business personal property, stock/inventory, business interruption), cyber, and employment practices liability. Budget Base Assumptions Our financial model has been built from the bottom up based on the deep understanding of the Coastal team with 10+ years of managing a legal cannabis business and based on the expertise gained from having started and operated over 20+ cannabis dispensaries and related operations. Our financial model incorporates comprehensive analysis to forecast costs and expenditures related to: Capital expenditures for construction, tenant improvements and facility set-up Capital expenditures for equipment, furnitures and fixtures required to operate the business Revenue forecast from sale of Cannabis based products and/or gift/novelty items Cost of Goods sold Expected operating expense Expected G&A expenditures Taxes, etc. Capital needs to support the set-up and ongoing operations of the business We are using current, best practices for all of our assumptions. This includes product costing and pricing, capital expenditures for furniture, fixtures and equipment, market demand and adoption, customer acquisition and retention and more. All of our financial and business modeling is based on unit level assumptions so we start at the line-item level and then model from there. In addition to the experience of our founders with over a decade of legal cannabis experience, we have used 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 73 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan research from several sources including tools like Cannabis Benchmarks, Cannaregs, BDS Analytics, etc. to build our business and financial models. Our expected expenditures for construction, TI, furniture, fixtures and equipment is as outlined in Section labelled ‘Site Development.’ From a product perspective we plan to offer approximately 180 different branded products at launch. These products will be across the following categories: 1.Edibles 2.Vape Cartridges 3.Topicals 4.Internals 5.Flower 6.Novelties 7.Paraphernalia 8.Whole Plant Extracted Products Our operating expense is as outlined in the section labelled ‘Operating Expense.’ 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 74 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan In summary, we have included the following financial information in this application: 1 - Year (First Year) detailed Budget/Income Statement Operating Expense Detail Five year Proforma Income Statement Five Year Proforma Balance Sheet Five Year Proforma Cash Flow Statement 1-Year (First Year) Proforma Cash Flow Statement Site Development Expenditures (planned) The first year budget 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 75 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Operating Expenditures 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 76 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 5 Year Income Statement 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 77 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 5 Year Revenues Charts 5 Year Net After-Tax Income Chart 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 78 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Balance Sheet 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 79 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Financial Projections In addition to the cash flow projection form, we have added our year cash flow charts for the first year, then years 1 through 5. Though we expect to start construction/tenant improvements as soon as we have received all the city and state licenses and permits, the attached financials show us beginning operations as of January 2020, even though we will likely start operations earlier. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 80 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 81 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Site Development (Construction & Tenant Improvements): 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 82 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Financial Capacity Coastal is well capitalized and prepared to fund all aspects of establishing and operating its business in San Luis Obispo. Proof of funds and liquid assets are included in the appendix. Marketing Plan Coastal intends to invest significant resources into building a profitable business in San Luis Obispo, but marketing is an essential function that will help stabilize our brand and grow our profits. Therefore, our marketing strategy focuses on understanding industry forces and trends, focusing on local efforts and maintaining consistent responsible messaging across multiple marketing platforms and channels. It it vital to the success of Coastal to establish strong relationships with our marketing partners and develop a comprehensive list of Key Performance Indicators to measure our effectiveness with marketing tactics. Industry Research Overview Legal cannabis is one of the fastest growing markets in the world. In 2017, US legal recreational and medical sales generated $6.8 billion dollars in total sales. Each year more and more state authorities are choosing to legalize the cultivation, extraction, or retail sale of cannabis. As society changes, laws around the world progress to expand the legal cannabis market. Canada became the first North American country in the world to legalize cannabis sales. Pioneering a model that allowed cannabis to be sold and purchased online and delivered, consumers are also able to shop at a government owned dispensing center or a privately owned dispensary. As of early 2019, 33 states across the US have legalized medical sales. In a report issued by industry research firms BDS Analytics and Arcview Research, 4 https://arcviewgroup.com/ 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 83 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 5https://www.bcc.ca.gov/clear/license_search.html. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 84 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 85 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 86 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 87 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 88 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 89 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Products and Services Coastal dispenses cannabis products to adults over 21 years of age in a safe, educational, modern, and affordable method. Cannabis has been known to alleviate ailments such as PTSD, severe pain, insomnia, and anxiety. We pride ourselves in providing compliant and tested cannabis products that treat real ailments. Coastal will sell cannabis goods that are fully permitted by California and San Luis Obispo law, which includes but is not limited to dried cannabis flower, oils, tinctures, edibles, topical solutions, and a number of accessories to help customers utilize the above-mentioned products. Coastal’s online pre-order portal’s theme and design are made to reflect that of the bonds of kinship through community. Our sleek, modern website will be inviting and will serve all walks of life, carrying a wide range of cannabis products for all consumption methods. Our product menu pages will mirror our in store products and be comprised of high grade Coastal manufactured products and popular California/local products, and best in class products in the industry. Local brands from the San Luis Obispo County area that will be carried in store and delivery will conditionally include Flow Kana, Butter Brand, Utopia Cannabis, Care by Design , Lola Lola, Bloom Farms, and Royal Key Organics. Customers will step into our sales room only after verification and explore a wide array of products, which will also be sorted based on intention (health, wellness, or play), type, price, and use to make it much easier for the customers to browse. Beautiful and easily identifiable signage will be held in each of our displays that detail the Coastal product category types to further make this shopping experience both unique and efficient. Our Play category allows for customers seeking a recreational experience where they can use cannabis for its creative, fun, uplifting qualities in a variety of forms: Concentrates, Edibles, and Flower. Our Wellness category invites customers to utilize other cannabinoids for its therapeutic qualities such as CBN, which has been shown to help with sleeping issues and is a low THC dose product. We will present certain cannabinoid products like CBN, THC-V, CBC, CBG to 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 90 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan offer a line of products in the form of Flower, Edibles, Topicals, Concentrate to help with everyday issues. Our Health category focuses on treatment for customers with real medical issues and are looking for an alternative to prescription drugs. We specialize in products that are high in CBD and ratio products such as 2:1 CBD/THC, 30:1 CBD/THC or Rick Simpson Oil which has been shown to treat cancer patients. We believe that this simple educational structure will offer the easiest way for our customers in San Luis Obispo to shop and be educated about the products they consume. Our staff has years of experience selling licensed cannabis products, which enables us to educate our employees and subsequently our delivery customers effectively. Education is a vital piece of retail that is often missing in the cannabis industry, Coastal prides itself on providing a world-class cannabis curriculum for our staff and patrons. Coastal has built a proprietary educational platform that presents the different types of cannabis, consumption methods, dosing techniques, product information, and terminology of the industry. As a licensed delivery facility, our focus will be on supplying products from reputable, consistent, and compliant cultivation and extraction operators. We are fully equipped with a list of licensed vendors from the Bureau of Cannabis Control and further have industry-experts analyzing market trends to make inventory adjustments as needed. We utilize a platform called Leaflink to vet new prospective brands in the California market. Our non-storefront retail 6 management staff make active monthly trips to vendors’ facilities to review quality standards with our partners and to further educate our workforce. Communication with our vendor partners is critical to our customer success, allowing us to stock products in a timely manner meeting consumer demand will increase sales over time. We allow vendors to schedule Customer Appreciation days online or sales appointments. This allows our vendors to have a frequent presence in our stores with our future online customers so they can truly understand the needs of the San Luis Obispo customer base and help our service them better. Types of Products Available Pursuant to applicable local and state regulations, the following goods will be available from Coastal’s delivery service: Cannabis goods for adult-use and medical use Non-cannabis goods per CCR §5407, for example, Coastal brand apparel and accessories, with the exception of the following: Alcohol and alcohol products 6 www.leaflink.com 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 91 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Per SLOMC 9.10.220(A), Coastal will not dispense, serve, store, give away or consume, or cause or permit the sale, dispensing, serving, giving away or consumption of alcoholic beverages or tobacco in or on the premises of Coastal’s delivery facility. Additionally, Coastal will not conduct any commercial cannabis activity or delivery at any location where alcohol is sold or served, per SLOMC 9.10.220(B) Tobacco and tobacco products Cannabis can be ingested through a variety of methods, creating a myriad of effects that serve different purposes for both body and mind. Thus, it is essential that all clients have access to Customer Sales Representatives with extensive knowledge of dosage, effect, and ingestion methods. Moreover, it is our duty as retailers to ensure that all products follow all testing and packaging requirements set out in Medicinal and Adult-Use Cannabis Regulation and Safety Act MAUCRSA) as per the State of California. Per regulatory requirements CCR § 5409(a)(1–2), our customers will, of course, be limited to no more than 28.5 grams of non-concentrated cannabis in a single day and no more than 8 grams of cannabis concentrate in a single day, including cannabis concentrate contained in cannabis products. All sales and customer transactions are tracked and logged in our confidential database within the POS system. Our POS partner, Weave, actively monitors the purchased THC levels of every customer that shops within our online store, measuring the total mg of THC in conjunction with state equivalency rules set forth in the California Code of Regulations. The system will keep track and alert the fulfilment specialist at the delivery facility that the customer has tried to exceed their daily limit of THC products no matter how many times the customer comes in during a 24-hour period. This feature helps mitigate the risk of overselling THC products to customers within a 24-hour period keeping our license in compliance and encouraging responsible consumption of cannabis. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 92 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Having selected only legal products as per regulations, we also will have products based on our own experience with the market. These products are manufactured at our distribution and manufacturing facility in Santa Barbara, CA. We will test all of our products with one of the leading labs in the state, Belcosta Labs out of Long Beach, CA. All of our products are7 packaged, child-proof sealed, and labeled correctly for retail sales. By having solid distribution, extraction, and cultivation partners, we increase the likelihood of having products that pass analytical laboratory tests to avoid shortages and, inherently, loss of revenue. It is absolutely crucial that all our selected products are sufficiently vetted to maintain long-term competitiveness. determined the following product types have been rising significantly in 2018: 1.Cannabis Oils: Given its versatility and potential for low-THC, cannabis oils have been steadily increasing in sales along with the general industry. Manufacturers and extractors have been increasing as well given the fact that oils per gram are more profitable than flower per gram. Given the fact that operators can control the CBD/THC ratios much easier with extracts than one would through dried flower, its versatility also extends in ensuring regulatory compliance (given the differing ratios allowed per State and City). 2.Topicals: With the rise of the cannabis industry comes a higher demand for easy application and use of cannabis products. One such method is through the use of topical solutions. CBD’s anti-inflammatory properties due to cannabinoid receptors in the skin are becoming more prominent with cannabis research and development, as is knowledge regarding this development among the public. As such, we will ensure that we obtain topical solutions for sales that are both compliant and in demand, such as Papa & Barkley. 7 https://www.belcostalabs.com/ 8 Fiorillo, S. (2018). 5 Cannabis Products On the Rise in 2018. Retrieved December 30, 2018, from https://www.thestreet.com/lifestyle/health/5-cannabis-products-on-rise-14578907 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 93 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 3.Cannabis Edibles: Due to its potency and easy consumption, cannabis edibles are witnessing an equal rise in sales. In particular, cannabis chocolates are becoming increasingly popular among consumers, as this is essentially a combination of two products that have always been in demand: cannabis and chocolate. Popular brands that we will sell include Kiva and Défoncé. As stated before, we will ensure we only stock products that are fully compliant with California and San Luis Obispo laws and regulations regarding edibles. 4.Cannabis Flower: Regardless of the popularity of oils and extracts, cannabis flower still remains quite dominant in sales. This is the traditional means of consumptions and essentially a classic that no long-term consumer can go without. Cannabis flower is a much more affordable means of purchase for many customers compared to extracts and is more appealing to experienced consumers. Given that this type of product is essentially our bread and butter when it comes it cannabis sales, we will promote a variety of cultivars in our inventory and ensure only compliant brands, such as THC Design, will be made available through our deliver service. 5.Transdermal Patches: Another popular product in the medical and retail cannabis space is the transdermal patch. This product is known for its incredibly easy application and soothing effects, especially in its potency for reducing inflammation or chronic pain due to arthritis or injury. As with topical solutions, Papa & Barkley make incredible transdermal patches that we expect to have in our stock. This product, in particular, is especially appealing to those of senior age who might be against smoking as a consumption method. 6.Cannabis Concentrates: Known for their potency and incredible therapeutic potential, cannabis concentrates such as wax or shatter are becoming increasingly popular among experienced consumers. Shatter is one of the most recognized concentrates, is easy to manipulate, and is far less messy than other varieties of concentrates or extracts. Similarly, cannabis wax is highly 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 94 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan concentrated and has grown significant interest for experienced consumers in the past 5 years. 7.Pre-rolled Joints: Although cannabis extracts are increasing in popularity, many consumers still prefer flower, particularly if it’s already pre-rolled and packaged effectively. Customers who simply want to avoid rolling cannabis themselves still rely on pre-rolled joints to function as a quick-and-easy method of consumption. Our partners, such as Bloom Farms, offer compliant and effective pre-rolled joints. It is important to ensure that vape products stay away from underage users since this is a rising epidemic in America. Therefore ensuring that we verify the age of customers prior to purchase is an absolute priority. We will avoid purchasing products with packages that are particularly attractive to kids, as this goes against our goal of ensuring only qualified customers are provided for. Education on proper product use will also be an important step in not only offering customers knowledge but also in driving our sales. The more we educate our wide customer base on the applications, uses, and benefits of each product type, the more positive the sales. Online Order Service Our webportal is designed to appeal to experienced as well as newcomer cannabis customers. Experienced consumers will be familiar with the products and likely know what they plan to purchase, whereas new customers might stay and utilize our technology while engaging with our 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 95 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan call center representatives for a longer online experience. In order to best meet the needs of both customers, we will offer experienced consumers with a quick, easy, and efficient means of checking out and starting the delivery window. We will develop a mobile-optimized website at CoastalDispensary.com that allows verified consumers to pre-order their desired products. Such customers are held to the same standards of verification as in-store customers. Per regulatory requirements CCR 16 § 5409(a)(1–2), these customers would be limited to no more than 28.5 grams of non-concentrated cannabis a day and no more than 8 grams of cannabis concentrate a day, including cannabis concentrate contained in cannabis products. To be eligible to access pre-order service, customers will need to make an account following confirmation of age and qualifications. During the account creation, a user will be prompted to send a copy of their government ID which will be verified by facial recognition technology or alternative ID verification methods, with our partners at trueface.ai. After 9 an account is created, the user will be able to see a real-time menu of products carried at our store. On our website, a user will utilize our easy user experience to collect their items in a shopping cart and decide for in-store pickup (or delivery through our non-storefront facility we are also proposing for San Luis Obispo). Upon creating an order, the customer will receive a text message through our platform alerting them that one of our customer sales representatives are preparing their order for delivery. Next, a timestamp will be sent to the customer so they have an idea of when the delivery will be leaving the facility and when the delivery is expected to happen. We expect delivery orders to take anywhere from 20-30 minutes to prepare, and 20-30 more minutes before we deliver. We will shoot to offer our customers a one hour delivery timeframe. This is a dependent on what time of day and how many orders are in the queue. 9 www.trueface.ai 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 96 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Vertical Integration As mentioned before, we want to offer the best means of affordability for patients and consumers. Having solid partners is one step forward in that direction, however, it is not the optimal choice. In addition to a few other brands, Coastal will be selling our own cannabis goods via our licensed extraction facility in California, Coastal Manufacturing, LLC. These products are distributed through our own licensed distribution company, thus achieving full vertical integration ensuring optimal efficiency and affordability. Coastal’s manufacturing facility will produce a variety of high-quality cannabis goods for adult-use and medical consumers, including extracts and infused products, packaged and labeled under the Coastal brand. Coastal will process cannabis extracts using the highest quality cannabis available from local cultivators, employing technologically advanced CO2 extraction, lipids-based extraction, and mechanical extraction methods. All extraction processes will be conducted according to industry-leading safety, sanitation, and compliance standard operating procedures that are reinforced by job-specific training for manufacturing employees. Coastal will use a closed-loop supercritical CO 2 extraction machine to produce extracts without the use of toxic solvents. CO 2 has been selected as an extraction solvent because it is a low-temperature, low-toxicity, and relatively stable compound that will not denature cannabis plant material during extraction. CO2 extraction technology gives in-house extractors a higher degree of control over the solvent strength through pressure and temperature adjustments that will allow the facility to extract specific formulations to target effective treatments for a variety of medical conditions. Cannabis product manufacturing will take place in a commercial grade kitchen equipped with food- and pharmaceutical-safe appliances and surfaces such as stainless steel counters and humidity-controlled refrigerators and freezers. Coastal’s manufacturing team will also adopt Current Good Manufacturing Practices (cGMP) developed by the U.S. Food and Drug Administration (FDA) to ensure that all cannabis products meet or exceed standards for quality and consumer safety. The products manufactured at Coastal’s facility will be distributed and sold by Coastal retail and non-storefront retail facilities in San Luis Obispo, Santa Barbara, and so forth. This vertically integrated business structure will keep production and transportation costs down while ensuring the highest standards for manufacturing, product safety, quality control, and customer satisfaction. Below are examples of our product line we intend on selling: 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 97 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 98 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 99 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Product Testing Criteria Coastal will only receive shipments of cannabis goods from licensed cannabis distributors that operate in full compliance with CCR 16 §5300-5315 and other applicable regulations. Per CCR 16 §5304, distributors are responsible for making arrangements for laboratory testing from a licensed facility that is ISO/IEC 17025 accredited per CCR 16 §5701. The licensed testing 10 laboratory will conduct quality assurance testing in accordance with the protocols and specifications outlined by CCR 16 §5711-5725. Each batch sample will be tested for the following in accordance with CCR 16 §5714(a): cannabinoids; foreign material; heavy metals; microbial impurities; mycotoxins; moisture content and water activity; residual pesticides; residual solvents and processing chemicals; terpenoids (if applicable); and homogeneity applicable to certain edible products). When testing is complete, the laboratory will issue a certificate of analysis (COA) in accordance with CCR 16 §5726 that provides a “pass” or “fail” result for each analytical test. The laboratory will enter the batch testing results in METRC and provide a copy of the COA to the distributor per CCR 16 §5726(b). The COA associated with each batch of goods Coastal receives from a licensed distributor will be maintained in accordance with Coastal’s record-keeping protocols. Upon receipt, all goods will be quarantined for inspection by the Quality Assurance department, which will be responsible for ensuring products meet state testing requirements per the COA 10 International Organization for Standardization (ISO); ISO/IEC 17025 - General requirements for the competence of testing and calibration laboratories 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 100 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan associated with each batch or lot. Only products that are determined to be safe and that comply with all applicable regulatory requirements (i.e., CCR 16 §5406, CCR 16 §5412, BPC §26130, BPC §26120, and others) will be released from quarantine and made available for sale to Coastal customers. Supply Chain Strategy Our products will be brought to us by our partner licensed cannabis distributor, Coastal Distribution, LLC. Retail and non-storefront retail operators can face a number of issues when having bad distribution partners, which can include but aren’t limited to delayed shipments, failed product tests, roadside accidents, incorrect transportation manifests, pricing discrepancies, or quality issues. Additionally, working with outside distributors will be more costly than working with our own. By utilizing our vertically-integrated model, we would be able to pass on the savings from using our own licensed distribution company to our customers. Coastal Distribution will work with Coastal Manufacturing, LLC to receive all our manufactured cannabis goods, and they will also work with local and reputable licensed cultivators in the San Luis Obispo County area to obtain all our flower and other extracted and manufactured goods we will otherwise not be able to obtain through our own extraction facility. As 80% of our supply and equipment expense will be sourced from businesses within 90 miles, it is only natural that we work with local and reputable cultivators to ensure we keep profits within San Luis Obispo County. By collaborating with local farms we would be able to increase the overall profit for local businesses and at the same time control the quality of the products we sell to our customers. Coastal Distribution will be fully in compliance with CCR 16 §5300-5315 and other applicable regulations. Coastal Distribution is a fully licensed distribution operator and will meet the following requirements prior to being engaged in our non-storefront retail operations: hold valid state and local licenses; maintain an operating record that is free of serious compliance violations; arrange testing with licensed laboratories that are ISO/IEC 17025 accredited per CCR 16 §5701; and have a successful track record of performing all types of tests required by CCR 16 §5711-5725. By working with our own licensed companies and other reputable and licensed cultivators, we ensure that we maintain our track record for following all applicable regulations and industry best practices. Our distribution company, listed below, will be used to obtain cannabis goods for Coastal’s non-storefront retail operations in San Luis Obispo. NAME: Coastal Distribution, LLC Mailing Address: 819 Reddick St, Santa Barbara, CA, 93109 Location Address: 819B Reddick St, Santa Barbara, CA 93103 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 101 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan Phone No.: (805) 886-8484 State License #: C11-18-0000631 Other Distributors & Suppliers Today, most of the cannabis in California is grown primarily on a cottage, specialty, and small scale. We intend our strategies to favor small businesses and counter the advantages of large businesses. Coastal intends to build relationships with the below-mentioned collectives, many of whom also meet criteria for environmentally conscious production practices, economic inclusion, and social justice in their hiring practices. The high cost of licensing and starting an independent business within the regulated cannabis industry is a barrier to entry for many small cultivators. However, rather than continuing to operate in the gray market, many small producers have found legal ways to participate in the regulated market under the umbrella of a fully licensed collective. One example of a collective of small producers is Lowell Farms, LLC, based on the Central Coast near Santa Barbara. Lowell Farms is located within 90 miles of San Luis Obispo, which is ideal for promoting the economy within the immediate area. Coastal Apparel Coastal is a lifestyle brand and our aim is to be a part of a customer’s everyday life whether at the beach, riding bikes by San Luis Obispo Community Park, having a picnic at Marina Park park or being at home. Our apparel represents creative freedom, performance and craftsmanship. We focus on working with up and coming local visionary designers that have a forward thinking mind and that are creative and innovative. It is important to us to produce all American made apparel and we constantly strive to minimize our environmental impact. Our apparel is a Unisex focus line that is comfortable and functional. Our products include Hoodies, T-shirts , Hats, Beanies, socks. Additionally, we carry external merchandise such as recyclable water bottles and tote bags. Coastal prides itself on a unique design approach and will continue to elevate the happiness of coastal consumers. We have contacted several local print shops that will service our merchandise line including: Live Local Apparel (978 Monterey St, San Luis Obispo, CA 93401), Left Coast T-shirt CO (755 Fiero Ln, San Luis Obispo, CA 93401), J Carroll (113 Cross St, San Luis Obispo, CA 93401), Dolphin Shirt CO (757 Buckley Rd # C, San Luis Obispo, CA 93401). Customers can view our merchandise and apparel line online, where they can place an order11 and have those items shipped to their address. Our plan is to develop an exclusive series of apparel for San Luis Obispo that is representative of the community and can help spread the San Luis Obispo brand. 11 www.coastaldispensary.com/apparel 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 102 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 103 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 104 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Business Operations Plan - Appendix Business Operations Plan - Appendix Coastal Delivery SLO, LLC Personnel LOIs 106 Local and State Licenses 111 Coastal California Local and State Licenses 111 Native Roots Colorado Local and State Licenses 118 Cannamed Therapeutics Ohio Licenses 257 Coastal Delivery SLO, LLC State Sales Tax Seller’s Permit 265 Coastal Holdings Company, LLC Statement of Cash Flow 266 Coastal Holdings Company, LLC Balance Sheet 267 Coastal Holdings Company, LLC Profit and Loss 269 Malante Hayworth Financial Statement 271 Malante Hayworth Tax Return 276 James River Insurance, General Liability Insurance 278 Empyreal Logistics Cash Pickup Liability Insurance 279 Kimberly Moffatt Jones Verification of Net Worth 280 Julian Michalowski Proof of Funds 281 JAMABA Properties, LLC Proof of Funds and Affidavit 282 New Level Collective Articles of Association 284 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 105 06 07 08 09 10 111 Bureau of Cannabis Control 833)768-5880 Adult-Use and Medicinal - Distributor Temporary License LICENSE NO: C11-18-0000631-TEMP LEGAL BUSINESS NAME: Coastal Distribution, LLC PREMISE: 819 REDDICK ST, UNIT B SANTA BARBARA, CA 93103-3124 VALID: 12/20/2018 EXPIRES: 4/19/2019 Non-Transferable Prominently display this license as required by Title 16 CCR 5039 112 113 Bureau of Cannabis Control 833)768-5880 Adult-Use and Medicinal - Retailer Temporary License LICENSE NO: C10-18-0000148-TEMP LEGAL BUSINESS NAME: Coastal Dispensary LLC PREMISE: 1019 CHAPALA ST SANTA BARBARA, CA 93101-3218 VALID: 12/12/2018 EXPIRES: 4/11/2019 Non-Transferable Prominently display this license as required by Title 16 CCR 5039 114 115 Bureau of Cannabis Control 833) 768-5880 Adult-Use and Medicinal - Retailer Nonstorefront Temporary License LICENSE NO: C9-18-0000119-TEMP LEGAL BUSINESS NAME: COASTAL DELIVERY LLC PREMISE: 819 REDDICK ST, SUITE C SANTA BARBARA, CA 93103-3124 VALID: 12/12/2018 EXPIRES: 4/11/2019 Non-Transferable Prominently display this license as required by Title 16 CCR 5039 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 1707 Cole Blvd., Suite 300 Lakewood, CO 80401 May 14, 2018 RJJ UINTAH LLC NATIVE ROOTS UINTAH License Type:Center - Type 1 License #: 402-01083 Expiration date of license: 07/03/2017 1705 West Uintah Street Colorado Springs, CO 80904 To whom it may concern: The purpose of this correspondence is to inform you that should the renewal license investigation for RJJ UINTAH LLC continue past the date of expiration for the current license, the license will be administratively continued by the State Licensing Authority pursuant to 12-43.3-311(1) until the completion of the renewal license investigation. At the completion of the renewal licens e investigation, the Marijuana Enforcement Division will notify you of the outcome of the investigation. Sincerely, James Burack Division Director DR 9012 (10/26/04) 246 247 248 249 250 251 252 253 254 255 256 Steven W. Schierholt, Esq. John R. Kasich Executive Director Governor 77 South High Street, 17th Floor, Columbus, Ohio 43215 T: (614) 466.4143 | F: (614) 752.4836 | contact@pharmacy.ohio.gov | www.pharmacy.ohio.gov June 7, 2018 TODD YAROSS CANNAMED THERAPEUTICS LLC 100 S. FOURTH STREET, SUITE 100 COLUMBUS, OH 43215 RE: CANNAMED THERAPEUTICS LLC, Application ID 736 SOUTHWEST-8 0 RAYDO CIRCLE SPRINGFIELD, OH NOTICE OF AWARD OF PROVISIONAL DISPENSARY LICENSE Dear TODD YAROSS, The State of Ohio Board of Pharmacy (Board) is pleased to announce that CANNAMED THERAPEUTICS LLC, Application ID 736 with a proposed facility located at 0 RAYDO CIRCLE, SPRINGFIELD, OH in District SOUTHWEST- 8 was awarded a Provisional Medical Marijuana Dispensary License. The Board is dedicated to collaborating with provisional licensees as they work toward obtaining a certificate of operation. To that end, please be mindful of the following: 1. Pursuant to Rule 3796:6-2-02(A) of the Administrative Code, “[o]nly a dispensary that has obtained a certificate of operation from the state board of pharmacy may sell or dispense medical marijuana to qualifying patients and designated caregivers who are registered with the board.” A provisional license serves as authorization from the Board for CANNAMED THERAPEUTICS LLC, Application ID 736 to begin the construction or modification of your facility and to secure any other applicable permits you may need from your local jurisdiction in order to receive a certificate of operation. 2. Pursuant to O.A.C. 3796:2-1-06(B), as of the date reflected in this letter, you have six (6) months to obtain a certificate of operation which requires at a minimum, but is not limited to, a demonstration that: a. All of the specifications listed in your application have been met; b. All requirements imposed under O.R.C./O.A.C. 3796 have been met; c. All applicable inspections under O.A.C. 3796:6-2-06 have been conducted and passed; and d. A Certificate of Occupancy issued by the building department having jurisdiction has been obtained. 3. Pursuant to division (A) of Section 4729.36 of the Revised Code: no place except a pharmacy licensed as a terminal distributor of dangerous drugs and no person except a licensed pharmacist shall display any sign or advertise in any fashion, using the words "pharmacy," "drugs," "drug store," "drug store supplies," "pharmacist," "druggist," "pharmaceutical chemist," "apothecary," "drug sundries," medicine," or any of these words or their equivalent, in any manner. Any violation of this provision 257 is a misdemeanor of the third degree. Each day’s violation constitutes a separate offense. If your current company name, or DBA, or proposed business name uses any of these words, they must be removed to be in compliance with this code section and in order to receive a certificate of operation. 4.As Board staff receive additional information related to your provisional license employees, pursuant to Ohio Adm. Code 3796:6-2-03, the Board may, in its discretion, require – in addition to an owner – person(s) with substantial control over a prospective or licensed dispensary to comply with any of the provisions of Division 3796:6 of the OAC. This may include background checks and proof of compliance with tax laws, among other items. All requested information must be received promptly by the Board so as to enable you to meet the six-month timeframe. Should any outstanding matters become known to the Board, such as tax liens or traffic or other minor infractions that have not yet been addressed, the affected person will be required to immediately remedy all outstanding issues for a certificate of operation to be awarded. 5. All provisional medical marijuana dispensary license awardees should be prepared to attend a MMCP Dispensary Provisional Licensee Informational Session. Additional information for Provisional Licensees will be provided to the email address of the primary contact. The Board will continue to provide additional information in the upcoming weeks regarding the next steps towards operating as a dispensary in the State of Ohio. If you have questions or need to contact the Board, please call 614)466-4143 and ask to speak with a member of the Medical Marijuana Control Program. We look forward to working with you. BY ORDER OF THE STATE BOARD OF PHARMACY Steven W. Schierholt, Esq., Executive Director SWS/jak/ts CMRRR: 70171070000049915018 Encl.: Applicant Scorecard, Attachment 1 Overall Scorecard, Attachment 2 258 Steven W. Schierholt, Esq. John R. Kasich Executive Director Governor 77 South High Street, 17th Floor, Columbus, Ohio 43215 T: (614) 466.4143 | F: (614) 752.4836 | contact@pharmacy.ohio.gov | www.pharmacy.ohio.gov June 7, 2018 TODD YAROSS CANNAMED THERAPEUTICS LLC 100 S. FOURTH STREET, SUITE 100 COLUMBUS, OH 43215 RE: CANNAMED THERAPEUTICS LLC, Application ID 742 NORTHEAST-2 10500 ANTENUCCI BOULEVARD, SUITE 200 GARFIELD HEIGHTS, OH NOTICE OF AWARD OF PROVISIONAL DISPENSARY LICENSE Dear TODD YAROSS, The State of Ohio Board of Pharmacy (Board) is pleased to announce that CANNAMED THERAPEUTICS LLC, Application ID 742 with a proposed facility located at 10500 ANTENUCCI BOULEVARD, SUITE 200, GARFIELD HEIGHTS, OH in District NORTHEAST-2 was awarded a Provisional Medical Marijuana Dispensary License. The Board is dedicated to collaborating with provisional licensees as they work toward obtaining a certificate of operation. To that end, please be mindful of the following: 1. Pursuant to Rule 3796:6-2-02(A) of the Administrative Code, “[o]nly a dispensary that has obtained a certificate of operation from the state board of pharmacy may sell or dispense medical marijuana to qualifying patients and designated caregivers who are registered with the board.” A provisional license serves as authorization from the Board for CANNAMED THERAPEUTICS LLC, Application ID 742 to begin the construction or modification of your facility and to secure any other applicable permits you may need from your local jurisdiction in order to receive a certificate of operation. 2. Pursuant to O.A.C. 3796:2-1-06(B), as of the date reflected in this letter, you have six (6) months to obtain a certificate of operation which requires at a minimum, but is not limited to, a demonstration that: a. All of the specifications listed in your application have been met; b. All requirements imposed under O.R.C./O.A.C. 3796 have been met; c. All applicable inspections under O.A.C. 3796:6-2-06 have been conducted and passed; and d. A Certificate of Occupancy issued by the building department having jurisdiction has been obtained. 3. Pursuant to division (A) of Section 4729.36 of the Revised Code: no place except a pharmacy licensed as a terminal distributor of dangerous drugs and no person except a licensed pharmacist shall display any sign or advertise in any fashion, using the words "pharmacy," "drugs," "drug store," "drug store supplies," "pharmacist," "druggist," "pharmaceutical chemist," "apothecary," "drug sundries," medicine," or any of these words or their equivalent, in any manner. Any violation of this provision 259 is a misdemeanor of the third degree. Each day’s violation constitutes a separate offense. If your current company name, or DBA, or proposed business name uses any of these words, they must be removed to be in compliance with this code section and in order to receive a certificate of operation. 4. As Board staff receive additional information related to your provisional license employees, pursuant to Ohio Adm. Code 3796:6-2-03, the Board may, in its discretion, require – in addition to an owner – person(s) with substantial control over a prospective or licensed dispensary to comply with any of the provisions of Division 3796:6 of the OAC. This may include background checks and proof of compliance with tax laws, among other items. All requested information must be received promptly by the Board so as to enable you to meet the six-month timeframe. Should any outstanding matters become known to the Board, such as tax liens or traffic or other minor infractions that have not yet been addressed, the affected person will be required to immediately remedy all outstanding issues for a certificate of operation to be awarded. 5. All provisional medical marijuana dispensary license awardees should be prepared to attend a MMCP Dispensary Provisional Licensee Informational Session. Additional information for Provisional Licensees will be provided to the email address of the primary contact. The Board will continue to provide additional information in the upcoming weeks regarding the next steps towards operating as a dispensary in the State of Ohio. If you have questions or need to contact the Board, please call 614)466-4143 and ask to speak with a member of the Medical Marijuana Control Program. We look forward to working with you. BY ORDER OF THE STATE BOARD OF PHARMACY Steven W. Schierholt, Esq., Executive Director SWS/jak/ts CMRRR: 70171070000049915025 Encl.: Applicant Scorecard, Attachment 1 Overall Scorecard, Attachment 2 260 Steven W. Schierholt, Esq. John R. Kasich Executive Director Governor 77 South High Street, 17th Floor, Columbus, Ohio 43215 T: (614) 466.4143 | F: (614) 752.4836 | contact@pharmacy.ohio.gov | www.pharmacy.ohio.gov June 7, 2018 TODD YAROSS CANNAMED THERAPEUTICS LLC 100 S. FOURTH STREET, SUITE 100 COLUMBUS, OH 43215 RE: CANNAMED THERAPEUTICS LLC, Application ID 740 NORTHWEST-7 1800 EAST STATE STREET FREMONT, OH NOTICE OF AWARD OF PROVISIONAL DISPENSARY LICENSE Dear TODD YAROSS, The State of Ohio Board of Pharmacy (Board) is pleased to announce that CANNAMED THERAPEUTICS LLC, Application ID 740 with a proposed facility located at 1800 EAST STATE STREET, FREMONT, OH in District NORTHWEST-7 was awarded a Provisional Medical Marijuana Dispensary License. The Board is dedicated to collaborating with provisional licensees as they work toward obtaining a certificate of operation. To that end, please be mindful of the following: 1. Pursuant to Rule 3796:6-2-02(A) of the Administrative Code, “[o]nly a dispensary that has obtained a certificate of operation from the state board of pharmacy may sell or dispense medical marijuana to qualifying patients and designated caregivers who are registered with the board.” A provisional license serves as authorization from the Board for CANNAMED THERAPEUTICS LLC, Application ID 740 to begin the construction or modification of your facility and to secure any other applicable permits you may need from your local jurisdiction in order to receive a certificate of operation. 2. Pursuant to O.A.C. 3796:2-1-06(B), as of the date reflected in this letter, you have six (6) months to obtain a certificate of operation which requires at a minimum, but is not limited to, a demonstration that: a. All of the specifications listed in your application have been met; b. All requirements imposed under O.R.C./O.A.C. 3796 have been met; c. All applicable inspections under O.A.C. 3796:6-2-06 have been conducted and passed; and d. A Certificate of Occupancy issued by the building department having jurisdiction has been obtained. 3. Pursuant to division (A) of Section 4729.36 of the Revised Code: no place except a pharmacy licensed as a terminal distributor of dangerous drugs and no person except a licensed pharmacist shall display any sign or advertise in any fashion, using the words "pharmacy," "drugs," "drug store," "drug store supplies," "pharmacist," "druggist," "pharmaceutical chemist," "apothecary," "drug sundries," medicine," or any of these words or their equivalent, in any manner. Any violation of this provision 261 is a misdemeanor of the third degree. Each day’s violation constitutes a separate offense. If your current company name, or DBA, or proposed business name uses any of these words, they must be removed to be in compliance with this code section and in order to receive a certificate of operation. 4. As Board staff receive additional information related to your provisional license employees, pursuant to Ohio Adm. Code 3796:6-2-03, the Board may, in its discretion, require – in addition to an owner – person(s) with substantial control over a prospective or licensed dispensary to comply with any of the provisions of Division 3796:6 of the OAC. This may include background checks and proof of compliance with tax laws, among other items. All requested information must be received promptly by the Board so as to enable you to meet the six-month timeframe. Should any outstanding matters become known to the Board, such as tax liens or traffic or other minor infractions that have not yet been addressed, the affected person will be required to immediately remedy all outstanding issues for a certificate of operation to be awarded. 5. All provisional medical marijuana dispensary license awardees should be prepared to attend a MMCP Dispensary Provisional Licensee Informational Session. Additional information for Provisional Licensees will be provided to the email address of the primary contact. The Board will continue to provide additional information in the upcoming weeks regarding the next steps towards operating as a dispensary in the State of Ohio. If you have questions or need to contact the Board, please call 614)466-4143 and ask to speak with a member of the Medical Marijuana Control Program. We look forward to working with you. BY ORDER OF THE STATE BOARD OF PHARMACY Steven W. Schierholt, Esq., Executive Director SWS/jak/ts CMRRR: 70163010000084175456 Encl.: Applicant Scorecard, Attachment 1 Overall Scorecard, Attachment 2 262 Steven W. Schierholt, Esq. John R. Kasich Executive Director Governor 77 South High Street, 17th Floor, Columbus, Ohio 43215 T: (614) 466.4143 | F: (614) 752.4836 | contact@pharmacy.ohio.gov | www.pharmacy.ohio.gov June 7, 2018 TODD YAROSS CANNAMED THERAPEUTICS LLC 100 S. FOURTH STREET, SUITE 100 COLUMBUS, OH 43215 RE: CANNAMED THERAPEUTICS LLC, Application ID 345 SOUTHEAST-3 656 GRANDVIEW AVE COLUMBUS, OH NOTICE OF AWARD OF PROVISIONAL DISPENSARY LICENSE Dear TODD YAROSS, The State of Ohio Board of Pharmacy (Board) is pleased to announce that CANNAMED THERAPEUTICS LLC, Application ID 345 with a proposed facility located at 656 GRANDVIEW AVE, COLUMBUS, OH in District SOUTHEAST-3 was awarded a Provisional Medical Marijuana Dispensary License. The Board is dedicated to collaborating with provisional licensees as they work toward obtaining a certificate of operation. To that end, please be mindful of the following: 1. Pursuant to Rule 3796:6-2-02(A) of the Administrative Code, “[o]nly a dispensary that has obtained a certificate of operation from the state board of pharmacy may sell or dispense medical marijuana to qualifying patients and designated caregivers who are registered with the board.” A provisional license serves as authorization from the Board for CANNAMED THERAPEUTICS LLC, Application ID 345 to begin the construction or modification of your facility and to secure any other applicable permits you may need from your local jurisdiction in order to receive a certificate of operation. 2. Pursuant to O.A.C. 3796:2-1-06(B), as of the date reflected in this letter, you have six (6) months to obtain a certificate of operation which requires at a minimum, but is not limited to, a demonstration that: a. All of the specifications listed in your application have been met; b. All requirements imposed under O.R.C./O.A.C. 3796 have been met; c. All applicable inspections under O.A.C. 3796:6-2-06 have been conducted and passed; and d. A Certificate of Occupancy issued by the building department having jurisdiction has been obtained. 3. Pursuant to division (A) of Section 4729.36 of the Revised Code: no place except a pharmacy licensed as a terminal distributor of dangerous drugs and no person except a licensed pharmacist shall display any sign or advertise in any fashion, using the words "pharmacy," "drugs," "drug store," "drug store supplies," "pharmacist," "druggist," "pharmaceutical chemist," "apothecary," "drug sundries," medicine," or any of these words or their equivalent, in any manner. Any violation of this provision 263 is a misdemeanor of the third degree. Each day’s violation constitutes a separate offense. If your current company name, or DBA, or proposed business name uses any of these words, they must be removed to be in compliance with this code section and in order to receive a certificate of operation. 4.As Board staff receive additional information related to your provisional license employees, pursuant to Ohio Adm. Code 3796:6-2-03, the Board may, in its discretion, require – in addition to an owner – person(s) with substantial control over a prospective or licensed dispensary to comply with any of the provisions of Division 3796:6 of the OAC. This may include background checks and proof of compliance with tax laws, among other items. All requested information must be received promptly by the Board so as to enable you to meet the six-month timeframe. Should any outstanding matters become known to the Board, such as tax liens or traffic or other minor infractions that have not yet been addressed, the affected person will be required to immediately remedy all outstanding issues for a certificate of operation to be awarded. 5. All provisional medical marijuana dispensary license awardees should be prepared to attend a MMCP Dispensary Provisional Licensee Informational Session. Additional information for Provisional Licensees will be provided to the email address of the primary contact. The Board will continue to provide additional information in the upcoming weeks regarding the next steps towards operating as a dispensary in the State of Ohio. If you have questions or need to contact the Board, please call 614)466-4143 and ask to speak with a member of the Medical Marijuana Control Program. We look forward to working with you. BY ORDER OF THE STATE BOARD OF PHARMACY Steven W. Schierholt, Esq., Executive Director SWS/jak/ts CMRRR: 70171070000049915001 Encl.: Applicant Scorecard, Attachment 1 Overall Scorecard, Attachment 2 264 265 6:04 PM 01/28/19 Coastal Holdings, LLC Statement of Cash Flows Preliminary Unaudited) January through December 2018 Jan - Dec 18 OPERATING ACTIVITIES Net Income - Page 1 of 1 266 6:01 PM 01/28/19 Accrual Basis Coastal Holdings, LLC Balance Sheet Preliminary Unaudited) As of January 28, 2019 Dec 31, 18 ASSETS Current Assets Checking/Savings BofA Checking 0872 JULIAN MICHALOWSKI Page 1 of 2 267 6:01 PM 01/28/19 Accrual Basis Coastal Holdings, LLC Balance Sheet Preliminary Unaudited) As of January 28, 2019 Dec 31, 18 Michalowski - Contributions Page 2 of 2 268 5:57 PM 01/28/19 Accrual Basis Coastal Holdings, LLC Profit & Loss Preliminary Unaudited) January through December 2018 Jan - Dec 18 Ordinary Income/Expense Income Rental Income Page 1 of 2 269 5:57 PM 01/28/19 Accrual Basis Coastal Holdings, LLC Profit & Loss Preliminary Unaudited) January through December 2018 Jan - Dec 18 Success Fees Page 2 of 2 270 71 272 73 74 75 CLIENT COPY1040 Department of the Treasury—Internal Revenue Service ( 99)U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.For the year Jan. 1–Dec. 31, 2017, or other tax year beginning , ending See separate instructions.Your first name M.I. Last name 691 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.Form 1040 ( 2017)HTA CLIENT COPYForm 1040 (2017)MALANTE 8562 Page no.Form 1040 (2017) 1/28/2019 John A. Neu Insurance Services Inc. DBA Arroyo Insurance Services Inc. 4040 Palos Verdes Drive North Suite 107 Rolling Hills Estates CA 90274- 310)515-0382 James River Insurance Company Coastal Holding Company LLC 819 Reddick St Santa Barbara CA 93101- Twyla Sauro, CRIS, CLCS twyla@neu4ins.com 1 310)802-6565 X X X Deductible $5,000/Oc X X2349175A 01/28/2019 01/28/2020 1,000,000 50,000 EXCLUDED 1,000,000 2,000,000 2,000,000 NAMED INSUREDS INCLUDED: Coastal Holding Company LLC; Coastal Distribution LLC; Coastal Manufacturing LLC; Coastal Dispensary LLC; Coastal Delivery Service LLC; Jamaba Properties LLC; 1019 Chapala Street LLC; 819 Reddick Street LLC; Coastal Retail SLO, LLC; Coastal Delivery SLO, LLC; Coastal Dispensary Chula Vista, LLC LOCATIONS INSURED: 819 Reddick St., Santa Barbara, CA 93103 & 1019 Chapala, Santa Barbara, CA 93101 AI 001580 Evidence of Insurance ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? INSR ADDL SUBR LTR INSD WVD DATE (MM/DD/YYYY) PRODUCER CONTACT NAME: FAXPHONE A/C, No):(A/C, No, Ext): E-MAIL ADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICYEXPTYPEOFINSURANCE LIMITS(MM/DD/YYYY) (MM/DD/YYYY) AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE EACH OCCURRENCE $ DAMAGE TORENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER:GENERAL AGGREGATE $ PRO- POLICY LOC PRODUCTS - COMP/OP AGG $JECT OTHER:$ COMBINED SINGLE LIMIT $( Ea accident) ANY AUTO BODILY INJURY (Per person)$ OWNED SCHEDULED BODILY INJURY (Per accident)$AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) OCCUR EACH OCCURRENCE $ CLAIMS-MADE AGGREGATE $ DED RETENTION $ PER OTH- STATUTE ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC # COMMERCIAL GENERAL LIABILITY Y / N N / A Mandatory in NH) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks ofACORDACORD25 (2016/03) CERTIFICATE OF LIABILITY INSURANCE 278 INSR ADDLSUBR LTR INSR WVD DATE (MM/DD/YYYY) PRODUCER CONTACT NAME: FAXPHONE A/C, No):(A/C, No, Ext): E-MAIL ADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICYEXPTYPEOFINSURANCE LIMITS(MM/DD/YYYY) (MM/DD/YYYY) COMMERCIAL GENERAL LIABILITY AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE INSURER(S) AFFORDING COVERAGE NAIC # Y / N N / A Mandatory in NH) ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? EACH OCCURRENCE $ DAMAGE TO RENTED $ PREMISES (Ea occurrence)CLAIMS-MADE OCCUR MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ PRO- OTHER: LOCJECT COMBINED SINGLE LIMIT Ea accident) BODILY INJURY (Per person) $ANY AUTO ALL OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS AUTOS HIRED AUTOS NON-OWNED PROPERTY DAMAGE $ AUTOS (Per accident) OCCUR EACH OCCURRENCE $ CLAIMS-MADE AGGREGATE $ DED RETENTION $$ PER OTH- STATUTE ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below POLICY SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks ofACORDACORD25 (2014/01) ACORDTM CERTIFICATE OF LIABILITY INSURANCE 5/29/2018 Moreton & Company - Colorado 4600 S. Ulster St., Suite 610 Denver, CO 80237 303 385-2100 Kimberly Schissler 303 385-2136 303-385-2199 kschissler@moreton.com Empyreal Enterprises, LLC 2925 S Umatilla St Englewood, CO 80110 Lloyds of London Pinnacol Assurance AXIS INSURANCE COMPANY Artisan and Truckers Casualty C 15792 41190 37273 10194 A X X X X 05/29/2018 05/29/2018 05/29/2019 05/29/2019 5,000,000 1,000,000 PROOF OF INSURANCE PURPOSES ONLY 1 of 1 S1048576/M1048574 EMPYREAENTClient#: 27779 KIMSC 1 of 1 S1048576/M1048574 279 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Community Benefits Plan Coastal is a business that has and will continue to invest in the communities in which we operate. We are truly committed to being more than a company, but rather a partner to the community. Though all other portions of our application are suffused with our commitment to partnership, our Community Benefits Plan fully articulates and displays our dedication to the importance of providing positive benefits for the community in which we serve. Coastal has always taken two tracks in offering benefits to the community, and resultantly, our Plan has been bifurcated to reflect them: Part A: Community Engagement Part B: Equity and Labor Splitting the benefits along these lines better allows us to accurately and concisely describe the avenues for which we will provide positive benefits to the San Luis Obispo community. Part A: Community Engagement - Community Benefits Plan Coastal is committed to being an engaged member of the San Luis Obispo community. Community engagement is core to Coastal’s values. It is what makes our brand resonate with our customers and ensures that we are providing the best experience and product to the community in which we call home. Our Community Benefit Plan is comprised of three primary goals: ensuring optimal hiring practices that benefit the residents of San Luis Obispo, establishing community-focused policies, and promoting non-profit organizations through Coastal’s and our employees’ work. Coastal has established numerous avenues to receive feedback, provide benefits and establish long term partnerships in the effort of bettering the San Luis Obispo community. Our community engagement plan is multifaceted, acknowledging that San Luis Obispo is home to a variety of diverse interests, needs, and opportunities for growth. The following describes our collaborative plan for ensuring that Coastal is a committed and active participant in San Luis Obispo’s community. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Coastal Advisory Council Coastal has created an Advisory Council comprised of established members of the San Luis Obispo community. The Advisory Council will provide insight and feedback to Coastal on how best to advance and adhere to issues impacting the local community. The Advisory Council will meet bi-annually for a two-hour meeting to discuss relevant topics. Members will have direct and frequent communication with our Director of Public Affairs, Devon Wardlow. The advisory members represent only themselves as individuals, not their employer or organization. Coastal is committed to being an active and receptive participant in the local communities in which we serve. The Advisory Council will help ensure Coastal has an accurate pulse on needs of the community. Advisory Council Members Garret Olson A second-generation Firefighter and retired Fire Chief, Garret Olson's fire service career began in 1988 as a paid-call firefighter with the Orange County (CA) Fire Department. Then in 1990, Olson was hired as a 9-1-1 dispatcher for the Long Beach (CA) Fire Department. He joined the Mesa Fire Department later that same year and held the positions of firefighter, fire engineer, fire captain, battalion chief, and deputy fire chief. In 2004, Olson was recruited to join the City of Scottsdale in building its new municipal fire department. Olson served as Deputy Chief of Training & Special Operations and the Deputy Chief of Field Operations before being promoted to Fire Chief in 2011. During his tenure as Fire Chief, Olson was proud to lead efforts to initiate changes in department staffing and deployment, strategic planning, organizational culture, and the department’s community-focused mission. In 2012, Chief Olson returned to his home state of California and moved to San Luis Obispo to become the first ever Deputy Chief in the long-established San Luis Obispo City Fire Department. For the previous 138 years, San Luis Obispo City Fire did not have a second-in-command to the Fire Chief. Bringing this new position to life in a department steeped with tradition was an exciting opportunity. In 2013, Olson was then selected to lead the San Luis Obispo City Fire Department as its Fire Chief. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Mary Ciesinki Mary is the Executive Director of ECOSLO. Mary Alina Ciesinski grew up in San Jose, CA and holds a degree in Business Management and Marketing degree. She started her career at small tech companies in San Luis Obispo then transitioned to the non-profit sector when she moved back to the Bay Area. Since 2015, Mary has served as the Executive Director for ECOSLO, the Environmental Center of San Luis Obispo which is also the year she moved back to this beautiful area she now calls home. At the core of her career, Mary has worked to fine-tune organizational operations, facilitate community engagement, and dabble in marketing efforts. Mary lives in San Luis Obispo with her husband Dale Stoker. Together they enjoy cooking, camping, and their new home. Mary also enjoys spending time outdoors, in her garden, on a nearby hiking or coastal trail, and days spent at the beach. Darren Smith Darren Smith is the CEO of Compass Health, Inc. From independent and assisted living to skilled nursing and rehabilitation services, Compass Health provides programs that help their residents and neighbors live the highest quality of life possible. Darren is also the Director of The Education Foundation and a board member of The Education Foundation. He serves on the Economic Vitality Corporation Board of Directors. Amy Kardel Amy Kardel is the President of Clever Ducks, a local IT firm that provides business solutions 24/7. Amy is well-versed in the founder and tech entrepreneur mindset after starting her first business in a UC Berkeley dorm room. A fourth-generation California native, she loves that her hometown is San Luis Obispo. Amy has served as Chairwoman of the Board for CompTIA since 2016, the trade association for the global IT industry, advancing issues of workforce, cybersecurity, and government policy to support the technology ecosystem. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit In addition to Amy’s experience in business, she has a strong commitment to service, helping to grow those around her, and encouraging them to reach their potential. She brings these talents to bear nationally as a facilitator for the CEO peer groups in the IT solution provider space, and as an advisory board member for Tampa-based software as a service company ConnectWise. She is a Leadership Fellow with the National Association of Corporate Directors, a certification for board members of publicly traded companies. She also leads her family’s commercial real estate investment office. Amy volunteers her time close to home in San Luis Obispo, which was recently named the happiest city in America, for community advocacy with a focus on economic and youth development. She is a founding member of the Central California Angel Investment Conference. She is a leader in her local business community, serving on with the Computer Science Industry Advisory Board at Cal Poly San Luis Obispo, Rotary and the San Luis Obispo Chamber of Commerce. In addition, she is a graduate of Leadership San Luis Obispo and member of the 2018 Class of Leadership California. Brian Ball Brian is the President of Ernie Ball Music Man, the world’s premier manufacturer of strings, guitars, and amplifiers and a third-generation family business whose primary focus is making tools for musicians. Brian’s grandfather Ernie Ball started the company in 1962 when he created Slinky electric guitar strings. Today, Slinkys are the world’s number one selling electric string line, and are played by the likes of Eric Clapton, Paul McCartney, Buddy Guy, Jimmy Page, Pete Townsend, Angus Young, Joe Perry, Slash, Billie Joe Armstrong, Metallica, John Petrucci, Steve Vai, John Mayer, and Avenged Sevenfold. Since 1974, Brian’s family business has its Ernie Ball Music Man guitars and basses alongside their stings, right here in California. Jeff Buckingham Jeff was most recently awarded the Citizen of the Year Award. Jeff moved to California to attend Cal Poly in 1979 and graduated in 1981 with a degree in Dairy Science. Jeff started his career at Contractor’s Glass and then in 1983 joined the startup team at Call America where he eventually became President. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Jeff co-founded Call America in 2001 and then Blue Rooster Telecom in 2009. Blue Rooster merged with Norcast Telecom Networks in 2014 to become one of the county’s largest local telecom companies; in 2017, the company grew even bigger merging with Digital West to provide a fiber optic network as well as telephone and cloud services to business customers. Jeff lives his commitment to the community and the industry through involvement with The Rotary Club of San Luis Obispo de Tolosa, The Community Foundation Board, The Farm Supply Company Board, The Farm Bureau Board, The Softec Board, and The Caltel Board. Coastal Community Events On a monthly basis, Coastal will host educational events on a preselected time and day to promote cannabis education and awareness, especially among communities who are not fully knowledgeable regarding its uses, economic potential, and especially its therapeutic qualities. These events will be organized by our Community Relations Manager. Members of the community are welcome to submit topics of interest to the Community Relations Manager in advance and we will use our extensive network and resources to provide high-level speakers to address the issues of the community. All events will be open to the public for adults 21 and over. Awareness Event - Cannabis Health Coastal will host experts in the cannabis field to educate the public on the various strains of cannabis, the therapeutic benefits and the numerous manners of ingestion. We will host guest speakers ranging from our own esteemed scientists from our laboratory to discuss Coastal specific products to professors studying the long term benefits of cannabis. Coastal will be partnering with C.A.R.E (Cannabis Awareness Research Economics) to help educate consumers on the impacts of cannabis. C.A.R.E has had nationwide recognition with featured publications in the Los Angeles Times, Rolling Stones and Entrepreneur Magazine. By partnering with C.A.R.E we will be bringing known experts to the San Luis Obispo community. Our cannabis education programming will focus on: The rapidly expanding science of cannabis The need for quantitative studies demonstrating medical outcomes The lack of training for doctors and healthcare professionals in cannabis The potential misuse of certain forms of cannabis for recreational purposes The benefits and proper use of cannabis The ability of research institutions to access consistent, pharmacological grade cannabis products for testing 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Awareness Event - Prop 64 Petition With the passage of Prop 64, recreational cannabis is legal for adult-use in the state of California. This is a great step forward for society, and as we move forward we must remember to help those that have fallen behind. Proposition 64 allows for individuals who previously faced criminal charges for cannabis-related infractions to petition to have their records expunged. Coastal will work with a local San Luis Obispo law firm, Fisher Law Office, to advise our customers about best practices for expunging a record under Prop 64 petition. Awareness Event - Elevate the Community Coastal will be hosting farmers’ market-inspired pop-up events which will feature local vendors from all walks of life including, creative artists, local restaurants and stores and community charities that will educate and entertain the community about their products and services. We will reach out to our nine selected charities to participate in collaborating with Coastal to generate buzz and conversation around the services they provide to the SLO community. Awareness Event - Seniors & Cannabis Senior citizens are a growing market in cannabis and a segment of the population that is often overlooked, despite the fact that they are one of the groups that stand to benefit the most from legalization and informed use. The expanding legalization of cannabis has led to a rapid increase in the availability of a wide range of cannabis products, the many benefits of which, are unfamiliar to older consumers. Coastal intends to host awareness events in conjunction with medical professionals to inform seniors about not only the medicinal benefits of different cannabinoids, but also the wide range of products and various methods of consumption currently available. The format for these events will be uniquely tailored to this population in an effort to create an environment that is comfortable and facilitates a discussion where all questions are welcome. Supporting Our Veterans Coastal is an avid supporter of our nation’s veteran community. The men and women that have served and are in active duty are a critical component to the fabric of our society. Coastal believes that it is our duty to ensure that all veterans have affordable access to the benefits that cannabis can offer this important constituency that has risked their lives for the betterment of ours. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 6 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Coastal will offer a discount of 20% off our wide range of cannabis products to all veteran and active-duty service men and women. We will also hold educational workshops to specifically address the benefits of cannabis for ailments, such as PTSD, from which our veteran community suffers. Protecting Our Youth Coastal is committed to promoting responsible cannabis use to adults 21 years of age and older. With this commitment, comes responsibility. As Coastal provides safe, legally compliant cannabis to adults, we share concerns that accompany any use of mind-altering substances getting into the hands of our youth. Therefore, we believe it is our collective obligation to ensure that our youth is educated, protected, and provided support when it comes to the dangers of addiction. Coastal commits to providing $10,000 annually in funding to the San Luis Coastal Unified School District to fund an addiction awareness curriculum. Coastal challenges all other cannabis permit recipients in the city to the same, collectively raising upwards of $30,000 annually for youth education. We understand the sensitivities that the school district must take into account when creating a program of this nature and therefore are deferential to the school board and industry experts on how best to appropriate such funding. Coastal is aware of the complex nature of the public education system and hopes that our proposal can be a positive first step on behalf of this emerging industry. We will continue to engage the school district and seek counsel from industry and public leaders on how best to thoughtfully fulfill our goal of contributing to the education and protection of San Luis Obispo’s youth. Annual Report: Transparency & Feedback Coastal is committed to being a transparent partner to the city, local businesses and the general public about the benefits that the cannabis industry provides to the community. We want to share our experiences and lessons learned with the community and elected officials in order to facilitate a more educated public about the cannabis industry as well as help address any questions. Coastal will provide an annual public report demonstrating topline findings regarding the sale of cannabis in the San Luis Obispo community. This information is intended to educate the public and policymakers on the economic and societal impacts that this evolving industry has on the community. Coastal is open to feedback and questions that the public would like to see 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 7 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit addressed in the annual report. The public will be able to submit questions to the Community Relations Manager. Charitable Donations and Community Service Giving back to the public in a thoughtful and consistent manner is a crucial component of Coastal’s responsibility in being an engaged member of San Luis Obispo’s community. Coastal will donate 2% of net profits to local nonprofits and charities on an annual basis to ensure we are giving back to in an impactful way. Coastal has developed an employee community service program, Coastal Cares, through which Coastal will donate upwards of $2,000 per month for community support and over 50 hours of community service per month. As a jumping off point, Coastal has recently donated over $8,000 to a select group of local charities (listed below) that provide important benefits to the San Luis Obispo community. The organizations were carefully selected to represent where Coastal feels we can make the most impact. Coastal Cares – Employee Community Service Program As part of employment at Coastal, all employees in our “Coastal Cares” employee community service program. Coastal has committed each employee to participate in 8 hours of community service per quarter, averaging to over 50 hours per month of community service (when accounting for a staff of roughly 20 employees), never less than 25 hours a month. Coastal will compensate our employees the same as if they worked a normal day. Coastal has and will continue to establish relationships with local charities to arrange for an ongoing schedule for employees to donate their time at the charities of their choosing. In order to make the process as seamless as possible, Coastal’s Community Relations Manager will work with local charities to identify the best opportunities and provide updates at our monthly Coastal Cares meeting. We believe that providing our employees with the opportunity to give back to the community fosters a sense of loyalty and responsibility to the community in which we live and serve. Targeted Community Service – Creating Dependable Engagement In addition to the broad community service engagement and financial support noted, Coastal has created a specialized program for ongoing volunteer opportunities and monthly donations with ECOSLO. Coastal has met with ECOSLO representatives and created an agreement for ongoing 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 8 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit monetary and volunteer contributions, pending successfully obtaining a cannabis retail business permit in San Luis Obispo. ECOSLO Coastal has established an ongoing volunteer and donation support program with ECOSLO, as the primary sponsor of ECOSLO’s 2019 Beach Keeper’s Program. To show evidence of our initial and continued support, we have donated $1,500 to jumpstart this year’s program. As a sponsor, we have committed to providing 8 of our staff members as volunteers per month, equating to 24 hours of community service. Additionally, we have committed to a donation of $1,000 per month to help facilitate all the necessary resources and equipment required for the Beach Keeper’s monthly clean up program and data processing. In 2018, ECOSLO’s Beach Keepers program had over 1,100 participants across 17 cleanups. This equated to 1,300 volunteer hours and nearly 1,400 lbs. of trash picked up. This was ECOSLO's first year of Beach Keeper's program and it was a great success. ECOSLO’s cleanups are education-focused and community data-driven. From tracking the numbers of the trash collected ECOSLO was able to understand and advocate for change concerning single-use items at various cities throughout San Luis Obispo County. As a result, they successfully advocated in 2017 and 2018 for the City of San Luis Obispo to pass the “Straws Upon Request” initiative and ban against single-use bottles and cups on city property and events. With the successful passing of these ordinances, ECOSLO supported the City of San Luis Obispo and Downtown SLO in rolling out these new ordinances that are helping the effort to reduce single-use trash. ECOSLO’s 2019 Beach Keeper's program, stimulated by Coastal’s initial kick-off funding donation, will include monthly beach cleanups, environmental education, and data tracking that take place on the first Saturday of the month, starting in April and going through October. ECOSLO will continue with cleanups at locations in SLO County deemed as the top 10 most impacted sites by trash poundage. The locations include Morro Strand, Morro Rock, Pirate’s Cove, and Estero Bluffs sites. Coastal is thrilled to partner with ECOSLO and looks forward to working together to ensure a cleaner, safer environment for the San Luis Obispo community and beyond. Please see attached letter from ECOSLO’s Executive Director describing Coastal’s financial contribution and ongoing volunteer engagement with ECOSLO’s Beach Keeper’s Program. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 9 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit ECOSLO´s mission is to educate, advocate and act to protect and enhance San Luis Obispo County natural resources They promote resilient ecosystems and healthy lifestyles in San Luis Obispo. They envision a conscious community that understands and values the essential inter-dependencies of natural systems, human health, and the local community which actively takes responsibility for a healthy environment on quality of all life in San Luis Obispo County. Coastal Supports the Following Charities CAPSLO Community Action Partnership of San Luis Obispo County addresses the causes of poverty, empowering low-income people to achieve self-sufficiency through community-based collaborations and programs. Coastal donated to the 40 Prado project specifically and is in discussions with staff to develop an ongoing employee volunteer program- similar to the partnership that we have with ECOSLO. Economic Vitality Corporation The EVC mission is to stimulate the economic vitality of San Luis Obispo County, generate jobs, increase investment in the community and promote the start-up, growth, and attraction of businesses. Please see attachment for letter of support. Stand Strong Stand Strong aims to support survivors and end domestic violence in San Luis Obispo County. Stand Strong supports spouses and children that are victims of or have witnessed domestic abuse. Stand Strong envisions a society where intimate partners and family members treat each other with dignity, respect, and compassion; where oppression is replaced with equality; where the expression of conflict and 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 10 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit anger is non-violent; where children grow up with their esteem intact and are nurtured in such a manner they recognize the value of speaking the truth, welcoming diversity and practicing cooperation. Please see attachment for letter of support. Habitat for Humanity Habitat for Humanity for San Luis Obispo County brings people together to build homes, communities, and hope. YMCA YMCA’s mission is to develop the total person, spirit, mind, and body through values-based programs that build strong kids, strong families, and strong communities. Please see attachment for letter of support. Special Olympics Southern California San Luis Obispo County The mission of Special Olympics Southern California San Luis Obispo County is to provide year-round sports training and athletic competition in a variety of Olympic-type sports for children and adults with intellectual disabilities, giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy and participate in a sharing of gifts, skills and friendship with their families, other Special Olympics athletes and the community. Please see attached acknowledgment letter. Queer Slo Queer Slo is a prominent advocate of the LGBTQ community in San Luis Obispo County, providing support ensuring a healthy and vibrant network of social gathering groups, events, business resources, and educational services for its constituents. Coastal has donated to the Gay and Lesbian Alliance of the Central Coast Gala, supported by Queer SLO. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 11 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit History of Demonstrated Community Support Eric and Rodessa Newton, owners of Coastal San Luis Obispo, are established and engaged members of the San Luis Obispo charitable and business community. They have raised their three children in San Luis Obispo and own four successful local businesses. Over the past 20 years, Eric and Rodessas’ family have been active members of the philanthropic community volunteering many hours and providing charitable donations to San Luis Obispo’s non-profits. The Newton family has contributed thousands of dollars and hundreds of hours to impactful charities such as, Prado Day Center, The Performing Arts Center, Big Brothers Big Sisters, San Luis Obispo Association of Realtors, Habitat for Humanity, Tip a Cop, Woods Humane Society, Family Care Network, Stand Strong, Jack’s Helping Hand, Mission Thrift, San Luis Obispo Civic Ballet, San Luis Obispo YMCA, United Way and the San Luis Obispo Fire Dept. They have not only donated as individuals but have also encouraged their local businesses and employees from, Libertine Brewing Company, Newton Construction, Pac West General and Triad Real Estate, to participate in supporting local philanthropic ventures. They have hosted fundraisers and collected food and clothing donations at their at their businesses to support the Food Bank, Butte County Fire Relief efforts, partnered with ECOSLO on beach cleanups, created a beer specifically for the conservation efforts of Sea Shepherd Conservation Society and donated the majority of profits to them. The Newton family has been engaged parents, donating towards the betterment of local San Luis Obispo educational institutions such as; Bishop’s Peak Elementary, Branch Elementary School, Los Ranchos Elementary School, Laguna Middle School, and Mission College Prep and San Luis Obispo High School. They have also supported extracurricular activities such as the Arroyo Grande Little League and Blues Baseball. Rodessa, as a lifelong San Luis Obispo resident, has held many positions in the business community. Her current roles include though are not limited to; Downtown SLO Board President, Downtown SLO Co-Chair of Special Events Committee and Professional Standards and Ethics Chair of the San Luis Obispo Association of Realtors. Rodessa was also appointed by the Board of Directors of the San Luis Obispo Chamber of Commerce to serve on the Chamber of Commerce Business Council. Coastal has made it a mission to give back to the communities we serve by supporting local nonprofit and charitable organizations in every city we operate: 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 12 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Santa Barbara Unity Shoppe Explore Ecology Santa Barbara Police Foundation Foodbank Of Santa Barbara Cancer Foundation of Santa Barbara Pierre Claeyssens Veterans Foundation Santa Barbara Wildlife Care Network Santa Barbara Festival Ballet Latino Coalition for Community Leadership Santa Barbara Bicycle Coalition La Casa De la Raza Santa Barbara Beautiful AmpSurf Santa Barbara Zoo Growing Solutions Restoration Education Institute New Directions Calm4Kids Girls, Inc Santa Barbara Audubon Society Santa Barbara Beekeeper Association Immigrant Hope Santa Barbara Heal the Ocean Community Environmental Council Channel Islands Restoration Santa Barbara Veterans Foundation West Hollywood Friends of the WeHo Library L.A. Cleantech incubator UCLA UNICEF Ishan Foundation Ace of Hearts LAPD Foundation Red Cross DTLA Homeless Shelter AIDS Project Los Angeles Last Chance for Animals Elton John AIDS Foundation Next Gen L.A. LBGTQ Foundation Assisted Living for the Aging Planned Parenthood Police Foundation Christopher Street West Chula Vista Boys and Girls Club Chula Vista The Chula Vista Charitable Foundation Community Through Hope Environmental Health Coalition San Ysidro Health Center South Bay Community Services South Bay YMCA South County Economic Development Council South Bay Pioneers Metropolitan Area Advisory Committee on Anti-Poverty UC San Diego’s Center for Medicinal Cannabis Research 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 13 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Business Outreach and Co-Marketing Opportunities As Coastal seeks to establish itself as a prominent influence in the San Luis Obispo business community, we are excited to enter into co-marketing agreements with established local businesses. We will offer joint discounts at local enterprises to facilitate stronger business relationships throughout the community. In order to ensure that Coastal’s vision is heard within the San Luis Obispo business community, Coastal has joined the Economic Vitality Corporation and will join the SLO Chamber. We believe it is important for the emerging cannabis industry to be an active and vocal participant in all aspects of community outreach and advocacy. The local organized business associations provide an excellent avenue to do just that. Part B: Equity and Labor - Community Benefits Plan Coastal is committed to employing a local, diverse, knowledgeable workforce. Coastal will hire 91% to 100% of our workforce local to San Luis Obispo County residents. We understand that our employees, the communities within which we serve, and the products we provide are all equally important ingredients to our success. In order to ensure that all aspects of our business are thriving, Coastal will adhere to the below employment best practices. Employment Best Practices Coastal is committed to creating high-paying jobs, an inclusive workforce, and paths to greater success for our employees and the community in which we serve. Paying Competitive Wages: Pay employees well above minimum wage with opportunities for promotion. Providing Family-friendly Benefits: Offer paid family and medical leave programs, health insurance, paid time off, and other benefits. Investing in Employee Growth and Development: Help employees expand their leadership and responsibilities through widely accessible education and training opportunities. Cultivating Inclusion: Foster a diverse workforce, acknowledge and embrace race, gender, age, sexual orientation, gender identity, religious, ethnic and physical ability differences. Governing Fairly and Transparently: 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 14 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Adopt policies that allow for employee input, prevent conflicts of interest, and have clear ethical standards in place. Engaging with Communities: Foster direct involvement in community-related issues and programs that benefit diverse stakeholders and improve the quality of life in communities Driving Environmental Sustainability: Demonstrate a comprehensive commitment to environmental sustainability in all company operations. Promoting Health and Safety: Comply with and seek to exceed federal, state, and local health and safety standards that are conducive to employee well being. One of our key priorities is in keeping with the City’s Economic Development Strategic Plan EDSP) that was adopted in October 2012 and Revised in March of 2015. We want to help create Head of Household jobs, by which: The position’s salary/wage would enable our employees to support dependents with a moderate level of disposable income. As we progress to the future, the cost of living is only getting higher. We at Coastal want to ensure that we’re ahead of the curve when it comes to employee wages and compensations; Employer-sponsored benefits would be offered to employees, such as healthcare; A strong sense of stability would be offered to employees, by which we will offer stable sources of income and provide permanent positions that can increase in salary in time; A chance to climb up the career ladder would be made possible at Coastal as we expand and become key operators in the legal cannabis space; and A chance to develop one’s technical skills and educational level to improve their quality of life. This is why we are partnering up with the Americans for Safe Access (ASA) Patient-Focused Certification (PFC) Program to ensure that both our staff members are knowledgable and that our customers and patients are adequately served. Hiring Strategy 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 15 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 16 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Compensation Package Coastal’s average pay rate for entry and mid-level positions will be at least 40% more than the median local income for similar positions in other mainstream businesses. The cannabis industry is becoming not only a resource for expanding City revenue but also for job growth and job creation. Over 91% and up to 100% of our workforce at our facility will be local to San Luis Obispo, including the contractors we hire for construction. Hourly wages at Coastal start in excess of the minimum wage by more than $3/hr. Coastal’s wages for entry-level positions will always exceed the minimum wage of San Luis Obispo by at least $3.00 per hour. In keeping with the City’s plan of allowing for disposable income for our employees, we will move to continue to ensure that we offer our employees well-beyond the living wage to expand their opportunities and future. A social equity-focused company understands that socioeconomic barriers to entry in the workforce can be addressed by offering competitive entry-level compensation, sufficient health and other employee benefits and generous paid leave programs. Coastal will abide by the provisions of the San Luis Obispo Wage Ordinance and shall keep on file sufficient evidence of its employee compensation. Coastal also will abide by the provisions of the San Luis Obispo Equal Benefits Ordinance and shall keep on file sufficient evidence of its employee benefits packages, as those benefits relate to the coverage of the domestic partners. Coastal also recognizes the collective bargaining rights of employees according to the National Labor Relations Act, which explicitly grants employees the right to collectively bargain and join trade unions; and prohibits employers from interfering with labor organizing efforts. Coastal is willing to enter into and abide by agreed-upon labor peace agreements. Supporting Local Supply Chain Coastal is committed to working with local suppliers to source all non-labor expenses that are required to successfully operate our non-storefront retail business. The below list notes the 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 17 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit required equipment to get our business up and running, accounting for well over 80% of our supply and equipment being sourced from businesses within 90 miles of our facility. Coastal will look to utilize other members of the cannabis industry local to SLO, as the city allocates its Cultivation, Manufacturing and Distribution permits, Coastal will engage local entities for our cannabis needs. Employee Benefits Coastal believes a strong benefits package is crucial to a healthy and happy workforce. Coastal will offer its full-time employees higher salaries to attract talented applicants, enhance retention and ensure that employees have the income levels necessary to live happily in the San Luis Obispo community. In addition to higher salaries, our company provides an extensive benefits 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 18 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit package, consisting of covered insurance expenses (including health insurance, long and short term disability insurance, life insurance, dental insurance, and vision insurance), and an optional 401(k) plan as well. Coastal believes in work-life balance and the importance of spending quality time with one’s family. To help our employees with this balance, we will offer paid vacation and holidays of up to 12 holidays days, annually, and vacation derived from years of employment. Paid sick days are included in our benefits package as well. Equity in Leadership Coastal is committed to ensuring that all members of the community have the opportunity to have an active role in the emerging cannabis industry. Given the high financial barriers to entry into the retail cannabis industry, Coastal believes in providing those with less economic means the opportunity to get involved at a principal level in the cannabis industry. Coastal has designated 2% each to three locals in the San Luis Obispo community of the Coastal San Luis Obispo Delivery business. All three local equity owners have pledged that their income levels are median household income of San Luis Obispo. Kelsi Bonzi serves as Coastal’s Sustainability Coordinator and is local to San Luis Obispo. As a nature lover and environmentalist, Kelsi is joining Coastal to facilitate eco-conscious business practices. She is a current student at Cal Poly, where she is majoring in world languages. Kelsi is a world traveler, having taught English in Spain and the Dominican Republic, She has also worked as a Spanish and English teacher for ESL students. Kelsi has been a social entrepreneur from a young age, volunteering with the Woods Humane Society. While a student at San Luis Obispo High School, Kelsi served as President of the Gay-Straight Alliance to promote awareness and acceptance. Jennifer Jacobsen serves as Coastal’s Account Manager and is local to San Luis Obispo County. Jennifer is joining Coastal to keep our books accurate and organized. Currently, Jen works for Libertine Brewing Company as a bookkeeper. She also works for Newton Construction as an account manager. Previously, Jennifer worked as a school teacher. She is a reliable, hardworking, exemplary employee who will serve as a model for all Coastal staff. Jennifer is a mother of two. Lucy Matthews serves as Coastal’s Community Coordinator is a local to San Luis Obispo who is joining Coastal to coordinator community engagement efforts. She currently works as a local nanny and has worked as a preschool teacher for several. She also works at Seeds in downtown 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 19 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit San Luis Obispo. Lucy is outdoors-oriented and an avid hiker. Lucy is a genuine and trustworthy individual, and she intends to go back to school to get her Master's. Coastal believes in the benefits that this emerging cannabis industry can bring not only to consumers but more broadly through the greater socio-economic impacts that it can bring to the city at large. Labor Peace Agreement Coastal recognizes the collective bargaining rights of employees according to the National Labor Relations Act, which explicitly grants employees the right to collectively bargain and join trade unions; and prohibits employers from interfering with labor organizing efforts. Coastal is currently in conversation with multiple labor unions organizations to enter into ‘Labor Peace Agreements’ and will do so when Coastal has matured into an organization with 20 or more non-management employees. Educated Employees Employees will be well-trained and knowledgeable about all of Coastal’s product offerings to help customers make informed choices on purchases and safe, responsible consumption of cannabis. Coastal’s robust employee training program will include modules that cover information on adult-use products, including cultivars of cannabis flower; edibles and infused products; oils; topicals; the variety of effects from different cannabinoids (i.e., THC and CBD); expected physical and psychological effects; the variation in duration and intensity of effects due to strain, concentration or potency, consumption method, rate of absorption, and other factors; therapeutic benefits; potential adverse reactions; and other information. Product training will also include information on medical conditions or symptoms that can be treated with cannabis, and the types of products and recommended doses that are typically used to treat various conditions. Training for cannabis products will also include other information important to serving the specialized needs of cannabis customers such as protecting customer privacy, facilitating access, and filling physician recommendations. Employee Training Program Coastal’s staff training and education program provides the foundation for all Coastal employees. The employee training program starts with a three-day intensive training course, followed by at least one day of job shadowing before employees can begin working with Coastal customers. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 20 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Employees who have not completed required training will not be eligible to sell or dispense cannabis products until the curriculum is successfully completed. Each employee will be trained in standard operating procedures (SOPs) related to receipt, storage, dispensing, and disposal of products. Written training manuals and workbooks will be provided for each module of training to supplement the online delivery of each training course. The employee training curriculum will include: Regulations & Compliance, including applicable federal, state, and local cannabis regulations Retail Operations, including limited access areas, storage, product handling, customer service, sales procedures, and daily limits Identification Verification Consumer Education (comprehensive product care/education) Medical Conditions and Cannabinoids Responsible Use (recognizing signs of abuse) Product Knowledge, including serving sizes/doses, strains, effects, and consumption methods Security, including diversion prevention and law enforcement interactions Inventory & Recordkeeping California Track and Trace (METRC) Employee Responsibilities, including safety, sanitation, and diversion prevention Given our business will be Patient-Focused Certified (PFC) by Americans for Safe Access ASA), we will utilize members from this association to train our employees on how to best care for any customers seeking access to cannabis. Our Delivery Manager will have Vendor Certification Training—both to ensure that he or she is equipped with handling our distribution partners and all other vendors we come into contact with throughout operations, and to ensure we remain compliant throughout operations (e.g., understanding limited access areas, loading and unloading product procedures). Impaired Customer Training Coastal’s employee training curriculum includes policies and procedures for recognizing and responding to signs of intoxication, impairment, and/or abuse of cannabis, alcohol, and other substances. The training will incorporate the latest scientific and public health information on substance use available from the National Institute on Drug Abuse, the County of Los Angeles Department of Public Health, the California Department of Health Care Services, and other 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 21 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit organizations and agencies. This will empower employees to develop the observational skills and judgment needed to establish reasonable suspicion that a customer is intoxicated or impaired. Coastal will implement and enforce strict policies that prohibit employees from selling cannabis to customers who show signs of intoxication or impairment according to the reasonable suspicion guidelines outlined by training and Coastal policies. If a Coastal customer shows signs of intoxication or impairment, Coastal employees will implement appropriate strategies based on risk assessment and customer behavior to mitigate the situation without unnecessary escalation. This is in keeping with Coastal’s responsibilities under CCR 16 §5808 to take reasonable steps to prevent objectionable conditions that constitute a nuisance (i.e. disturbance of the peace, public intoxication, loitering, lewd conduct, etc.). These strategies include: Verbally informing the customer of Coastal’s policies Guiding the customer to review customer education literature provided by Coastal, which will include resources available for substance abuse treatment Involving a manager as necessary to enforce and inform the customer of Coastal policies Calling law enforcement if necessary to protect persons, property, and public safety Sexual Harassment Training Coastal is committed to fostering a work environment free from prohibited harassment. Anti-sexual harassment training is part of the employee onboarding process in order to ensure that all employees are knowledgeable and comfortable in their workspace. Safety Training Employees will receive training in general facility health and safety policies and standard operating procedures (SOPs) including: Employees will be provided with adequate hygiene stations, toilets, and break rooms Food and drink will not be allowed except in break rooms and other designated areas Smoking will not be allowed within the facility, including outdoor areas, and all forms of cannabis consumption will be prohibited by employees while on the premises Employees will use appropriate personal protective equipment (PPE), such as gloves and safety glasses, for specific tasks such as cleaning, waste disposal, equipment maintenance, or other tasks that may expose employees to job hazards Facility cleanliness and sanitation will be maintained through regular sweeping and mopping, waste removal, removal of misplaced materials, inspecting storage areas for signs of mold and contamination, and other tasks 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 22 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Equipment used to clean and sanitize will be kept in good working condition and will be kept in an area that prevents contamination Waste will be collected in authorized sanitary receptacles and will be regularly collected and disposed of to prevent contamination and odors Material Safety Data Sheets (MSDS) and Safety Data Sheets (SDS) will be maintained for potentially hazardous materials, including cannabis goods if applicable Potentially hazardous materials, for example cleaning products or motor oil for vehicle maintenance, will be properly labeled and stored Employee Safety Education Coastal will establish policies to maintain a safe and healthy workplace environment at its non-storefront retail facility in keeping with the recommendations of the California Department of Public Health Occupational Health Branch, and regulations provided by the California Occupational Safety and Health Act of 1973 (Cal/OSHA) and Title 8 of the California Code of Regulations. Key policies include: Establish, implement, and maintain an Injury and Illness Prevention Program and update it periodically to keep employees safe Develop an Ergonomics Program to prevent repetitive motion injuries (RMIs) as described by the Cal/OSHA Ergonomics Standard Inspect workplace(s) to identify and correct unsafe and hazardous conditions Make sure employees have and use safe tools and equipment and properly maintain this equipment Provide and pay for personal protective equipment (PPE) Keep records of work-related injuries and illnesses Post, at a prominent location within the workplace, the Cal/OSHA poster informing employees of their rights and responsibilities Training Documentation The ERP system will document training attendance and completion, as well as monitor staff metrics to allow for continuous improvement of the process. This system will help management monitor and control individual employee development, assess compliance with protocols, and identify any areas needing improvement, so appropriate training modules can be implemented and further assessment can be performed. Employee Education Benefits In the modern competitive environment, employees need to replenish their knowledge and acquire new skills to do their jobs better. This will benefit both them and the company. We want 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 23 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit them to feel confident about improving efficiency and productivity, as well as finding new ways towards personal development and success. The Benefits of Higher Education Coastal believes that education is equally as fundamental to a prosperous and successful society as it is to the success of our company. Coastal will provide all full-time employees with the opportunity to prioritize their educational goals by fully reimbursing up to 12 credits earned per year with a passing grade of B or higher at Cuesta Community College. We want Coastal employees to pursue their dreams of higher education and facilitate an environment that appreciates and commends their work ethic. Professional Development Employees, managers, and Human Resources (HR) will collaborate to build a continuous professional development (CPD) culture. It’s an employee’s responsibility to seek new learning opportunities. It’s a manager’s responsibility to coach their teams and identify employee development needs. And it’s HR’s responsibility to facilitate any staff development activities and processes. In general, we approve and encourage the following training and continuing education opportunities: Formal training sessions (individual or corporate) Employee coaching and mentoring Participating in conferences On-the-job training Job shadowing Job rotation Hiring Policies Coastal’s hiring process requires that all prospective candidates pass a background check prior to employment initiation. Coastal will also conduct reference checks and work eligibility requirements prior to making hiring decisions. More rigorous screening criteria will be applied for key staff and managers with higher levels of responsibility in managing Coastal’s business and operations. These measures will ensure that all Coastal staff who interact with customers, who handle cash, currency, and cannabis, and who may have access to proprietary or protected business information can be sufficiently entrusted with the responsibility of keeping a safe, secure, and enjoyable environment for Coastal employees and customers. Criteria that will exclude an employee from being hired includes: Conviction of a felony or misdemeanor offense for a violent crime 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 24 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Conviction of any felony offense related to fraud, embezzlement, other financial crime or any non-violent crime Conviction of felony drug trafficking or similar major drug-related offenses; prospective employees with past convictions for certain minor drug-related crimes (for example misdemeanor cannabis possession) may be given consideration per the hiring practices outlined below Non-citizens without authorization, or the ability to obtain authorization, to legally work in the United States Individuals who are not at least 21 years of age by the time of hire (CCR 16 §5031) Accountability and transparency is a key value at Coastal. In accordance with SLOMC 9.10.060(D), Coastal will maintain a current register of the names and the contact information including the name, address, and telephone number) of all employees currently employed and will disclose such register to any City of San Luis Obispo official upon request. Non-Discrimination Policy Coastal is committed to providing equal employment opportunities to all employees and applicants without regard to age, ancestry, color, religious creed (including religious dress and grooming practices), disability (mental and physical), including HIV/AIDS, marital status, medical condition (cancer and genetic characteristics), genetic information, military and veteran status, national origin (including language use restrictions), race, sex (including pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), gender, gender identity and gender expression, sexual orientation, or any other protected status in accordance with all applicable federal, state and local laws. Similarly, the company is committed to complying with all laws protecting qualified individuals with disabilities, as well as employees' religious beliefs and observances. This policy extends to all aspects of the company's employment practices, including recruiting, hiring, discipline, termination, promotions, transfers, compensation, benefits, training, leaves of absence, and other terms and conditions of employment. Coastal will provide a reasonable accommodation for any known physical or mental disability of a qualified individual or for employees' religious beliefs and observances, provided the requested accommodation does not create an undue hardship for the company and does not pose a direct threat to the health or safety of others in the workplace or to the individual. The company will not retaliate or discriminate against a person for requesting accommodation for his or her disability, regardless of whether the accommodation was granted. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 25 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit This policy prohibits unlawful discrimination and harassment in the workplace and applies to applicants and employees of the company, including supervisors and managers. The company prohibits managers, supervisors, and employees from discriminating against or harassing co-workers as well as customers, vendors, suppliers, independent contractors and others doing business with the company. In addition, the company prohibits customers, vendors, suppliers, independent contractors and others doing business with the company from discriminating against or harassing the company's employees. Employees' notification to the company is essential to enforcing this policy. Employees may be assured that they will not be penalized in any way for reporting a harassment or discrimination problem. It is unlawful for an employer to retaliate against employees who oppose the practices prohibited by the California Fair Employment and Housing Act (FEHA), or who file complaints or otherwise participate in an investigation, proceeding or hearing conducted by the California Department of Fair Employment and Housing (DFEH) or the Fair Employment and Housing Commission (FEHC). Similarly, the company prohibits employees from hindering its internal investigations or its internal complaint procedure. Violation of this policy will subject an employee to disciplinary action, up to and including immediate termination. Our employees will be recent local graduates, adults both young and elderly, specialized in cannabis retail operations, security operators with solid track records, and more importantly, passionate individuals who feel a genuine need to help those around them. We want our employees to exemplify our core tenets. We want diversity not only when it comes to race but also gender and affiliation. We want to ensure that our employees will be as diverse as our consumer base, therefore having these types of individuals lead us by example is what we will strive for throughout our operations. Conclusion - Community Benefits Plan - Part A & B Through a combined effort of hiring locally, creating high paying jobs and being an engaged and active member of the charitable community, Coastal is committed to spurring economic growth and being a proactive member of the San Luis Obispo community. To summarize our above two-part Community Benefits Plan: Charity & Volunteer: Coastal has established Coastal Cares- Employee Community Service Program ensuring Coastal donates upwards of $2,000 per month to local charities and provides over 50 hours per month in community service hours. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 26 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit Labor: Coastal will hire 91%-100% of our workforce locally, and are off to a great start with 100% of our signed Letters of Intent of prospective employees, all being local to San Luis Obispo. Buying Local: As demonstrated through our equipment chart, all aspects of the required equipment necessary to have our non-storefront retail facility up and running will be purchased at local San Luis Obispo businesses accounting for well over 81% of equipment. Wages: All employees at Coastal will have an average pay rate of at least 41% more than the median local income for similar positions in other mainstream businesses. The base wage of all employees will exceed the minimum wage by well over $3.00 per hour. Coastal looks forward to continuing to engage and support the San Luis Obispo community. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 27 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Community Benefit - Appendix Community Benefit - Appendix ECOSLO Letter of Support 29 Stand Strong Letter of Support 30 Economic Vitality Corporation Letter 31 Special Olympics Acknowledgement Letter 32 YMCA Acknowledgement Letter 33 40 Prado Acknowledgement Letter 34 Habitat for Humanity Donation Receipt 35 Gay and Lesbian Alliance of Central Coast Donation Receipt 37 70 Million Jobs Press Release 38 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 28 Mail: P.O. Box 1014 Phone: (805) 544-1777 San Luis Obispo, CA 93406 Email: info@ecoslo.org Office: 1124 Nipomo St., Ste A, SLO Online: ecoslo.org Environmental education, advocacy and action in San Luis Obispo County since 1971 January 26, 2019 Coastal Dispensary 1019 Chapala St. Santa Barbara, CA 93101 Dear Ms. Wardlow: Thank you for Coastal Dispensary’s donation of $1,500 to ECOSLO, received on January 25, 2019. No goods or services were received in return for this gift. Additionally, no goods or services were provided by our organization in consideration of your donation. We are so grateful for your interest and excitement in being a key partner to ensuring our year-long Beach Keepers program continues in SLO County. As you know, we have been the lead organizer for Coastal Cleanup Day in our community for nearly 15 years. We have wanted to develop a program that ensures trash data collecting and community driven cleanups happen all year long, not just one day a year. We saw great success with this new program in 2018 thanks to initial grant funding, and we have been looking for local businesses to partner with in 2019. Your enthusiasm to financially support this program paired with providing paid volunteer time off to your future staff will truly help make this program success for our community and our natural environment. As you have shared, you are interested in supporting monthly cleanups for $1,000 each month. With your monthly contribution we will be able to successfully market and outreach to our community for these monthly cleanups using social media, flyers, and email correspondence. At each cleanup, your dollars will ensure that a dedicated ECOSLO staff member is present to coordinate each cleanup including site setup, trash education information, safety talks, and group data collection. We’ll also be able to provide all volunteers with the supplies they need for a successful cleanup including: data cards, sifters, trash grabbers, sunscreen, water, and reusable trash buckets and gloves. Overall, your support will ensure that cleanups are held regularly, trash is collected, the community is made aware of local trash issues, and we’ll be able to use the data so we can focus on trash prevention policy. My sincere thanks for your support. I am looking forward to our partnership this year. Sincerely, Mary A. Ciesinski Executive Director, ECOSLO ECOSLO is a 501(c)(3) not-for-profit, and our Federal Tax ID number is 23-7213237 30 Coastal Dispensary 819 Reddick Street, Santa Barbara CA. 93103 January 28th, 2019 Dear Devon, Thank you for Coastal Dispensary’s engaged outreach to Stand Strong with your interest In creating a monthly donation and volunteer program. I appreciate your proposal of partnering with Stand Strong as part of your Coastal Cares Community Service Program We are discussing with our Board of Directors your offer of providing an initial $2,000 donation to kick off our partnership with the commitment of donating $1,000 per month and 24 hours of community service through your Coastal Cares Community Service Program, per month. This is a generous and thoughtful offer that I feel would benefit the San Luis Obispo community and efforts here at Stand Strong. I appreciate your proactive approach to being an engaged member in the non-profit community in San Luis Obispo. Thank you for your engagement and I look forward to staying in touch. Karen Borges Director of Development and Communications Stand Strong (formerly The Women's Shelter Program of San Luis Obispo County) P.O. Box 125, San Luis Obispo, CA 93406 31 Rodessa Newton, Principal Devon Wardlow, Dir. of Public Affairs, Coastal Dispensary Coastal Holdings, Inc. / Coastal Dispensary, Inc. Santa Barbara Dear Rodessa, Devon, Thank you for your support and new sponsorship to the EVC. As a San Luis Obispo native, resident and business owner of Triad Real Estate Group, your enthusiastic support of the EVC through Coastal is most welcomed. Please find attached the confirmation letter that you requested. Thank you and welcome aboard. Mike Cc: Darren Smith, EVC Board member EVC Board Executive Committee Karilyn Taylor, EVC Keeping SLO County Business Vital Economic Vitality Corporation of San Luis Obispo County 735 Tank Farm Road, Suite 264 San Luis Obispo, CA 93401 Tel (805) 788-2012 Fax (805) 781-6293 www.sloevc.org Non-profit 501(c)(3) 32 Dear MALANTE R, Thank you for your generous donation of $519.10 to Special Olympics Southern California. Because of your support, Special Olympics will be able to grow the number of athletes we support from 5 million to many, many more. Your gift allows more athletes to step off the sidelines and into the game, giving them a chance to experience the power of sport. Your support assures me that together, we're able to make progress. So on behalf of all of us here at Special Olympics Southern California and all our athletes around the world, thank you for your partnership. Rafer Johnson Founder Special Olympics Southern California 33 The San Luis Obispo County YMCA is a 501(c)3 not-for-profit organization; Federal Tax ID 95-2147727. Your gift is tax-deductible. No gift or services were given in exchange of this gift. January 28, 2019 Coastal Dispensary C/O Malante R. Hayworth 1187 Coast Village Rd Suite 1-410 Santa Barbara, Ca 93108 Dear Malante, It’s people like you who make our work possible. We work hard to provide much needed financial assistance to less fortunate families throughout the San Luis Obispo County and without donations, we couldn’t do it. Through your gift of $500.00 you are showing your commitment to our Y and the families and children we serve and we can’t thank you enough! Our Y is there for families every day to help them lead healthier lives, keep their children in a safe and enriching program during out of school times, and to teach them valuable lessons through sports and programming. We don’t turn away families in need due to inability to pay and you help to make that possible. As, Jody, a parent of one of our program participants says, “My biggest thanks go to the donors, to anyone who can afford to give. They might not know how much they’re being appreciated but they are, incredibly appreciated, and our family will never forget this.” Malante, we simply couldn’t do it without you. Sincerely, Monica Grant, CFRE Chief Executive Officer 34 Dear Devon, On behalf of the clients, Board and staff of the Community Action Partnership of San Luis Obispo County, Inc., we would like to extend our appreciation of your generous donation of 1,000 to 40 Prado. It is through the support such as yours that we are able to continue providing our services to so many. Community Action Partnership of SLO Co. Inc. is a 501(c)(3) organization, Tax ID # 95-2410253. No goods or services were received in connection with your contribution. Please retain this letter for your tax records and consult with your tax adviser regarding the deductibility of your contribution. Community Action Partnership of San Luis Obispo County is a nonprofit agency that focuses on helping people and changing lives through serving nearly 30,000 persons across Central and Southern California. Community Action Partnership is committed to eliminating poverty by empowering individuals and families to achieve economic self-sufficiency through a comprehensive array of community-based programs. Marci Sperlo – Executive Administrator P: (805) 544-4355 x102 | C: (805) 295-1311 | F: (805) 549-8388 www.capslo.org | facebook.com/capslo 35 36 37 38 Coastal Dispensary Partners with 70 Million Jobs giving the Formerly Incarcerated a Second Chance Santa Barbara, CALIF. (January 24, 2019) - Coastal Dispensary announced today that it will be partnering with 70 Million Jobs, the first national, for-profit employment platform for people with criminal records. With marijuana arrests accounting for over half of all drug arrests in the United States - Coastal believes in giving individuals that have served their time, the opportunity to make a living wage in the legal cannabis retail industry. Coastal is the first cannabis group to officially partner with 70 Million Jobs, committing to posting 20% of their cannabis retail jobs through the partnership. With the passage of Prop 64, recreational cannabis is legal for adult sale and consumption in the state of California, providing both great business opportunities as well as additional tax revenue for local and state government. This is a strong step forward for society, but as we move forward, we must remember to help those that have fallen behind,” explains Devon Wardlow, Director of Public Affairs at Coastal. The cannabis industry should lead by example through providing those who were previously incarcerated from past cannabis laws, the opportunity to seek gainful employment through good paying jobs within this emerging industry.” 70 Million Jobs works with employers representing a wide variety of industries including; Uber, Denny’s, Perdue Farms, ADP, BNSF Railway etc. Coastal is taking a stance as an industry leader by doing their part in addressing an issue that the nation is going to continue to face as more states legalize cannabis while people are still incarcerated for cannabis offenses,” explains 70 Million Jobs, CEO Richard Bronson. “I commend Coastal’s decision to be among the first cannabis group with the foresight and compassion to understand that it is both our nation’s policy makers, as well as business leaders’, responsibility to take the necessary steps to address the issue of incarceration and reentry when it comes to the evolution of cannabis law.” Coastal Dispensary is an emerging chain of cannabis stores in central and southern California. Coastal holds retail, delivery, manufacturing, and distribution licenses and are quickly becoming a trusted and leading organization in the growing cannabis industry. 39 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Education Plan Education Plan Education cannot be undervalued. Every person has the right to be educated on the products they purchase and consume, the decisions they make, and the potential impacts of their actions. As the adult-use cannabis market continues to grow, it is Coastal’s responsibility to ensure that we are doing all that is in our power to educate to the public. Education is a core value at Coastal that is embedded in all of our business and community practices. We believe that an educated public is the key for a healthy, happy and successful community. The following details the various avenues Coastal will utilize to achieve our goal in providing valuable and accessible education to our consumers as well as the greater San Luis Obispo community. Responsible Cannabis Use Education Coastal will leverage its position as a member of the community to spread awareness safe and responsible cannabis use. Coastal’s comprehensive consumer education program will be delivered through knowledgeable employees, printed materials, website pages, and free information seminars. In addition to product information, Coastal’s consumer education program will also include but not be limited to the following: Secure storage of cannabis for personal use Preventing access to cannabis by children or minors Local and state laws pertaining to legally possessing, growing, and using cannabis, Resources on substance abuse awareness and how to access treatment programs Education Manager Responsible cannabis use is imperative to the safety of the community and the continued success of the industry. Coastal recognizes this symbiotic relationship and has invested in creating a designated position that is solely responsible for ensuring that our customers have access to the most up to date research and education available. The Education Manager will provide a level of privacy for consumers as well as encourage a more free-flowing informative conversation. Responsibilities include: Demonstrated knowledge of cannabis products as well as substance abuse Provide weekly free educational workshops at the facility 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Education Plan Ongoing communication with the California Department of Public Health, Cannabis Education Initiative Serve as point person to our lab scientist to ensure facilities have the most up to date knowledge of products Engage and be available to local educators and concerned citizens on the benefits of cannabis as well as the dangers of addiction Designated Cannabis Consumption Response Coastal has established an email account where all customers can submit questions in relation to cannabis use ranging from strain potency to substance abuse resources in the area. This email account will be administered by the Education Manager where customers will receive a reply within 24 hours. Cannabis Educational Material Our business will offer up-to-date fact sheets that describe the strain, cultivation method, cannabinoid content, intended use and dosage, and all other relevant information for each of our products. We will offer safety brochures highlighting important regulations and warnings related to the consumption of cannabis or cannabis products. Additionally, our website will contain a database of the most recent medical research on the effect of cannabis. Coastal will utilize the resources provided by the California Department of Public Health Cannabis Health Initiative. The Dangers of Addiction and Underage Use Coastal is committed to ensuring that all members of our community understand the dangers of addiction and the potential damages that underage use can cause. Coastal will work with the California Department of Public Health and the National Institute on Drug Abuse for Teens to ensure that we have the most up to date information on cannabis use disorders as well as the proper cautions regarding the potential for developmental problems of the adolescent brain as a result of underage use. As noted briefly below and elaborated on fully in our Community Benefits Plan, Coastal will be actively engaging with the San Luis Coastal Unified School District to fund and address education related to the dangers of addiction. Our Education Manager will serve as the liaison to the schools to help address any questions, assist in providing resources requested and participate in any informational sessions. Coastal will have posted signs warning about the dangers of adolescent use and its potential developmental impacts. As well as Coastal will provide local resources for addiction recovery 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Education Plan programs in the San Luis Obispo area such as the San Luis Obispo Addiction Recovery Center, Central Coast Treatment Center and The Haven. Community Events Coastal will host educational events on a monthly basis. The purpose of these events will be to promote cannabis education and awareness. We feel it is important to reach out especially to communities who are not fully knowledgeable about the uses, economic potential, and therapeutic qualities of cannabis. These events will be open to the public for adults 21 years of age and older. We hope the public will present ideas of potential topics through our Community Relations Manager that are of interest to the community. A couple of examples include our awareness events such as Cannabis Health, Prop 64 Petitions, Elevating Our Community and the Seniors & Cannabis. These will all serve to educate the community. The Cannabis Health event will seek experts in the cannabis field as speakers on topics such as the science of cannabis, how the medical field can incorporate cannabis, misuse and proper uses of cannabis, and testing. The Prop 64 Petition event will seek to educate individuals who previously faced cannabis-related criminal charges on their options to petition to have these records expunged. The Elevate Our Community event will seek to feature local vendors in a “pop-up” type event to strengthen ties within the community. All of these events are also described in more detail in our Community Benefits Plan. Protecting Our Youth While we will seek to educate the community on the many benefits, safe uses, and scientific advances in the field of cannabis, we understand that these efforts bring a responsibility. We share concerns about any mind-altering substances getting into the hands of the youth of our community. We see it as our collective obligation to also see that our youth is educated about the dangers of addiction and are given the education and tools to be protected and supported against improper use. As we detail in our community benefits plan, we commit to providing funding to help the San Luis Coastal Unified School District with an addiction awareness curriculum. We are aware that the public education system is a complex and sensitive area and offer this funding as a way of deferring to the school board and child education experts on how to best educate and support the youth of our community. Educating Families and K-12 Schools Parents and schools face particular challenges educating youth on the facts about adult cannabis use. Adolescents may misinterpret the legalization of cannabis for adults. Coastal believes in reaching out to families, schools, educators, and the community to build goodwill and allay fears 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Education Plan by offering ongoing educational programs focused on the importance of protecting children as well as by providing a direct line to our Education Manager. Responsible Advertising Responsible advertising is crucial to ensuring that cannabis businesses provide benefits, not detriments, to the community in which we served. Below we outline the important safeguards that Coastal will fully adhere to in respect to all local and state advertising requirements, including, but not limited to the following: Advertising and marketing will be designed specifically to not appeal to children in accordance with BPC §26152(f) No advertising signs will be displayed within 1,000 feet of daycares, k-12 schools, playgrounds, or youth centers, per BPC §26152(f) Coastal will not provide free cannabis goods to any person or allow others to provide access to free cannabis to any person on the licensed premises, notwithstanding the provision allowing donations of free cannabis goods to medical cannabis patients in accordance with CCR §5411 Prior to any advertising or marketing involving direct, individualized communication or dialogue, Coastal shall use age affirmation to verify that the recipient is 21 years of age or older, per CCR §5041. All advertising and marketing (including web marketing) will accurately and legibly identify Coastal, and our license number, per BPC §2615 No broadcast or print media will be displayed where less than 71.6 percent of the audience is reasonably expected to be under age 21, per BPC §2615 Facility signage will comply with the City’s Sign Regulations for size, area, and type of sign per SLOMC 17.99.050(D)(3)(a). No portion of the cannabis plant will be used in any signage visible from the public right-of-way per SLOMC 17.99.050(D)(3)(c) Discrete and Complementary to the Neighborhood Coastal’s facility and logo do not in any way emulate or promote traditional symbols associated with cannabis or smoking. The presence of our brand and our facility decor alone, will in no way signal to the public the promotion of cannabis simply by observing the business or our logo. We believe that our discrete and universally accepted logo is an important attribute to who we are as a company and what we stand for - a healthy, happy active lifestyle. We understand that families do not want their children to be subject to a visual bombardment of legal cannabis 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Education Plan businesses as they drive through the community. The Coastal name and logo looks exactly what they sound like—a simple visualization of a wave, emulating the best aspects of what the California lifestyle has to offer. Working with Law Enforcement Coastal is committed to working hand in hand with San Luis Obispo’s law enforcement officials. We believe that an open door policy with law enforcement benefits Coastal, law enforcement and the community overall. Cannabis businesses play a critical role in assisting law enforcement with minimizing illegal activities while respecting the rights of medical patients and adult consumers. We are fully committed to operating strictly within California and San Luis Obispo laws, including partnering with local law enforcement to minimize the risk of illegal diversion of cannabis, impaired driving, and youth access. Law Enforcement Community Outreach Coastal will engage local law enforcement with regular meetings to discuss issues of mutual concern, provide site tours, and address questions and concerns regarding Coastal’s business. We will maintain an open-door policy with law enforcement officials, addressing anti-diversion tactics and encouraging transparency throughout our entire operational chain of custody. Officer Training Sessions We will partner with the San Luis Obispo Police Department to provide education and training for law enforcement personnel regarding cannabis and its legal use to maximize collaboration and the exchange of ideas on how we can be doing the best job we can in protecting the interests’ of the public in which we serve. Impaired Driving Research and Education Coastal will collaborate with institutions conducting studies on how cannabis affects consumers while operating a motor vehicle, such as by measuring response time, eye-hand coordination, and 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Education Plan cognitive function. This research will help to establish baselines for acceptable levels of THC in the bloodstream for drivers and will be shared and used in partnership with local and state law enforcement. Conclusion Coastal is committed to ensuring that the San Luis Obispo community has access to the most up-to-date cannabis education possible. As described, we are taking concrete steps to ensure that our advertising is geared only towards adults for responsible use. With our Education Manager, our education plan is not only focused on providing knowledge about responsible cannabis use, but also provides the opportunity for in-person discussions on cannabis as well as the potential signs and problems surrounding addiction. Coastal believes that education is the key to a healthy, happy society. Through our extensive education plan and community benefits plan, we will create an environment at Coastal that thrives on knowledge. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 6 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan Security Diagram 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan Alarm Diagram 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 6 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 7 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 8 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 9 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 10 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 11 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 12 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 13 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 14 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 15 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 16 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 17 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan Access Diagram 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 18 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 19 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 20 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 21 oastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan Camera Diagram 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 22 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 23 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Security Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 24 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Lighting Plan Lighting Plan Coastal will employ a professionally designed and energy efficient lighting system that will integrate with our state-of-the-art security system to not only protect Coastal’s assets while conserving energy, but to also improve the peace, safety, and security arrangements at all locations where activities related to the license will be undertaken in keeping with SLOMC 17.99.050(D)(2)(d). Compact fluorescent or LED lighting will be utilized with dimmable ballasts and occupancy sensors to ensure energy efficiency Emergency interior lighting will turn on in the event of power failure to ensure safety and security Uninterrupted power supply units will provide continuous power to all electronic equipment and will be backed up by diesel or natural gas generator to provide over 48 hours of continuous operation in the event of a power outage. Lighting will be sufficient to enable continuous 24-hour passive video surveillance to three yards around the entire perimeter of the facility Exterior lighting will be automatically engaged by a photosensor to facilitate surveillance and discourage loitering or trespassing 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Lighting Plan Lighting Diagram 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Site and Floor Plans Site and Floor Plans Per SLOMC 17.99.050(D)(1), Coastal has provided the following site and floor plans of our proposed facility on 747 Woodbridge St, San Luis Obispo, CA 93401. The property is located in the C-S zone. Coastal Delivery SLO, LLC, through Eric and Rodessa Newton, own this property. For tax purposes, Eric and Rodessa have also given Coastal Delivery SLO, LLC a 15-year lease. In summary, Coastal has a majority ownership interest in site property. Coastal and our partners are building a structure that complies with SLO’s 2018 Standard Specifications and Engineering Standards and all current local and state codes. In doing so, Coastal will be effectively increasing property taxes. We will be working exclusively with local contractors and local architects to make sure we are fitting in with the larger vision for San Luis Obispo. Furthermore, we will work with the City directly to build whatever they see fit for the design and the security of the building. Coastal’s non-storefront retail development will abide by all C-S Development Uses per SLOMC 17.36.020 as well as all Commercial Cannabis Development Standard per SLOMC 17.99.050.E, including: Submittal of and qualification for a use permit application to conduct the commercial cannabis business within a zone specified for commercial activity Locating in area demarcated with CAN overlay zoning and as allowed in the underlying zone for commercial cannabis activity Being sited and/or operated in a manner that prevents cannabis odors from being detected offsite. Commercial cannabis activities shall not create offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the commercial facility Being concealed from public view at all times and no exterior evidence of cannabis or cannabis products occurring at the property, visible with normal unaided vision from any public place, or the public right-of-way Including adequate measures that address enforcement priorities for commercial cannabis activities including restricting access to the public and to minors and ensuring that cannabis and cannabis products are only obtained from and supplied to other permitted licensed sources within the State and not distributed out of State The use permit to be issued shall include, but is not limited to, the following conditions: The obtaining and maintaining of the Commercial Cannabis Operator Permit and appropriate state license 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Site and Floor Plans Payment of all applicable current and future state and local taxes and all applicable commercial cannabis fees and related penalties established by the City Council, including but not limited to application, administrative review, inspection, etc The Commercial Cannabis Operator permit or a controlling interest in the permit may not be assigned, transferred or bequeathed, by operation of law or otherwise, unless permitted as described in Chapter 9.10, and the permit shall terminate automatically on such event Expiration of a Commercial Cannabis Operator permit after one year, unless renewed Prohibition of on-site consumption of cannabis Prohibition of the possession, storage, sale, distribution or consumption of alcoholic beverages on the premises, or the holding of license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages, or operating a business that sells alcoholic beverages, on or adjacent to the commercial cannabis activity site No cannabis products or cannabis accessories may be displayed in windows or visible from the public right-of-way or from places accessible to the general public Prohibition of minors and persons under the age of 21 on the premises, even if accompanied by a parent or guardian Outdoor storage of cannabis or cannabis products is prohibited Parking Given that our proposed facility is 1,900 square feet, we will be required to have at least 2 parking spaces. Coastal’s non-storefront retail facility will have a total of 4 parking spots. Our parking will be more than necessary to accommodate for safe and convenient access for Coastal employees. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Site and Floor Plans Proposed Site Vicinity Map 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Site and Floor Plans Site Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Site and Floor Plans Floor Plan 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Water Efficiency Plan Water Efficiency Plan In keeping with SLOMC 17.99.050(D)(2)(f), Coastal has developed this Water Efficiency Plan to ensure that we do our part in optimizing our resources. The Board of Supervisors for San Luis Obispo County adopted Resolution 2015-288 on October 27, 2015, which established the Countywide Water Conservation Program (CWWCP) in response to the declining water levels in the Nipomo Mesa Water Conservation Area part of Santa Maria Groundwater Basin, Los Osos Groundwater Basin, and the Paso Robles Groundwater Basin. Given that our proposed location is within the San Luis Obispo Valley Groundwater Basin area, we are not eligible for CWWCP’s services; however, we will refer to the program’s resources and methods to effectively ensure that we conserve water as much as possible. Water Costs/Use Data Collection The first step involved in ensuring we optimize our water efficiency is calculating our estimated water usage. Following this step, Coastal will compare our water usage it to the City’s plan, implement internal policies to make adjustments to our water usage (if needed), and commit to subscribing to water offset credits should we be utilizing more water than our target goal. Coastal will collect water/cost data to determine the effective baseline, which will be used to calculate cost savings and determine how much water we could potentially save. This step involves: 1.Determining the marginal per-unit cost of water and sewer service 2.Verifying the appropriate rate structure is applied 3.Identifying services the utility might provide to help manage water efficiently Following collection of this data, Coastal will determine a baseline annual water use for a specific year, determine monthly water use over time, and determine certain trends based on the data provided, such as if sudden increases in water use are seasonal based, hourly based, etc. Typically, water use is always increased during the summertime, therefore Coastal will ensure that we utilize water efficiently during this time period by reminding employees of our water efficiency policies. Coastal will also contract a third-party specialist local to San Luis Obispo City to calculate water costs and determine efficiency plans if we, by chance, are not meeting our set goals. Determining Water Use Levels Coastal will perform a walk-through audit of the facility to identify all significant water-using processes and associated operating characteristics. We will inspect all our equipment and 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Water Efficiency Plan operations during this audit to determine flow rates, the model number of the particular equipment (e.g., urinal, toilet, faucet). The next step involves tracing our information back to the originating equipment to make sure they are accounted for in the water balance. For all water uses in Coastal’s inventory, we will obtain any available submetered data to help quantify the equipment’s particular uses. Following the identification of all the information we need, Coastal will implement an action plan to ensure we properly adjust our equipment, policies, or practices to maintain water efficiency. Coastal will inform the Delivery Manager of our plans for water efficiency and will delegate tasks accordingly. We will project a date and time when these measures are expected to be fulfilled and ensure that we have the proper means of addressing the issues, such as installing more efficient equipment that utilizes less water or contacting a third-party specialist to calculate our water balance. Once we have effectively fixed the issue and met our primary goals, we will actively monitor our progress to ensure we maintain our standards. Leak Detection Devices & Methods Coastal will utilize a local and third-party repair company that uses leak detection devices such as sound-based or acoustic technology that properly and effectively identify leaks in our facility prior to substantial damage or water loss. Action Plan & Equipment Use One of the main methods for water efficiency is ensuring all our equipment is both eco-friendly and efficient. Coastal’s interior design elements will include plumbing that conserves water and energy, including water-efficient faucets and fountains, dual-flush toilets, waterless urinals, and other fixtures. Additionally, we will only utilize tankless water heaters and have insulated hot water piping. Waterless urinals do not flush water but have a cartridge in the bottom that contains a sealant, in which waste flows through the cartridge and into the drain line. Custodial staff will ensure that we clean and replace the sealant, cartridges, and material according to the manufacturer’s recommendations, as to ensure this unit is optimally working. Coastal will install ENERGY STAR and WaterSense products, which are at least 20% more efficient than conventional models and products and are less prone to maintenance issues. Tankless water heaters will be installed in areas where water is less frequently used and all our faucets will have controls to ensure an effective shut-off time, should a person mistakenly forget to turn off faucets after use. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Water Efficiency Plan Faucets: WaterSense labeled bathroom sink faucets use a maximum of 1.5 gallons per minute and can reduce a sink's water flow by at least 30% from the standard flow of 2.2 gallons per minute. These type of faucets are recommended by the United States Environmental Protection Agency. Toilets: Our toilets will be commercial-grade and also labeled as a WaterSense product. Standard commercial toilets flush volumes as high as 3.0 to 7.0 gallons per flush, which is far above the federal standard of 1.6 gallons per flush. WaterSense labeled flushometer-valve toilets, whether single- or dual-flush, use no more than 1.28 gallons per flush, which is exceptionally ideal to not only meeting but surpassing the federal standard goal. These units also have the capacity to reach 1 gallon per flush, which we will effectively use during the summertime. Urinals: Commercial-grade and WaterSense no-flush urinals will be used to significantly reduce our water usage, which will save us as much as 4.5 gallons per flush. Wastewater Coastal’s non-storefront retail facility will not include any manufacturing or cultivation activities, therefore specific procedures for process wash water disposal are not being developed. Wastewater from hand washing stations, the employee kitchen, restrooms, and other sources will be drained to the municipal sanitary sewer via the facility plumbing drains. These procedures are intended to be sufficient for preventing potential pollutants or other material from being discharged into the street, gutter, or storm drain inlet. If additional measures are required due to changes in operations or upon request by the City, Coastal will work with City officials to design enhanced wastewater disposal infrastructure or procedures in order to ensure that no operations-related pollutants escape from the facility into the storm sewer system. Restroom Policies & Other Equipment Signs will be placed in the restroom that directs all users to ensure that faucets are effectively turned off prior to leaving the restroom. Employees will be directed to report any leaks in the faucets, urinals, or toilets immediately to the Delivery Manager. Employees will be strictly prohibited from throwing non-toilet paper material in the toilets (e.g., wipes, paper towels) as to avoid City expenses on sewage clean up. Coastal will not include any paper towels in the bathroom and instead use hand dryers that utilize minimal power, which will also ease the burden on our custodial staff. These systems, as shown in the image to the right, will be equipped with motion detectors that control when these units are turned on and off. All employees will be trained on water-efficiency 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Water Efficiency Plan practices and of our own internal policies to ensure they also do their part in securing optimal water usage. Any employee that deliberately violates our restroom policies will be subjected to disciplinary action. Water-Friendly Landscaping In addition to our operating policies, Coastal’s exterior site plan will incorporate water-friendly, drought-resistant plants. Coastal will implement “Mediterranean-zone” plants which are plants that are acclimated to long dry summers and short wet winters. Coastal has looked into the native agriculture in San Luis Obispo County which include Succulents, Candelabra Aloe, California Buckwheat and Deer Grass. All of these plants attract beneficial insects and require little water. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Odor Control Plan Odor Control Plan Coastal will operate at the highest levels of respect and courtesy in our interactions with neighbors and the community. Our Odor Control Plan includes odor control devices and techniques to prevent odors from being detectable off our property and meet the requirements of SLOMC 17.99.050(E)(3). Our state-of-the-art odor abatement equipment will be regularly assessed, maintained, and serviced by trained staff members. We will proactively address concerns from the community, and we have developed a robust complaint process as well as a comprehensive contingency plan in the unlikely event of an ongoing odor nuisance issue. Sources of Odor Cannabis facilities have the potential to produce nuisance odors in the surrounding community. The odor is primarily due to an essential component of cannabis called terpenoids which are responsible for its pungent fragrance. The presence of cannabis products can result in the release of this fragrance within its immediate vicinity, which can be significantly mitigated through the use of contained spaces and a proper ventilation system. Odor Control Devices and Techniques to Prevent Odors from Being Detectable Off-Site The property’s ventilation and exhaust systems are designed to control odors in such a way as to not materially disrupt the ability of any reasonable person to enjoy the reasonable use of that person’s residence or areas open to the public. In addition, the use of the systems described below will prevent fumes and odors from exceeding the boundary line of the lot. The ventilation systems will use of the most effective odor control technology available, including: An exhaust air filtration system with odor controls, such as carbon filters or vapor barriers, as appropriate, to mitigate odors An air system that creates negative air pressure between the building interior and exterior to ensure that odors generated by cannabis are not detectable offsite or outside of the building Doors will installed with liners to help seal odor in and minimizes air escaping through gaps Of particular importance is the vault for cannabis products. Coastal will install an effective ventilation system to control any odors emitted from the secured storage space. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Odor Control Plan HVAC System The HVAC system is important for providing the ventilation, humidity, and temperature control necessary to maintain the quality of cannabis goods stored or displayed for sale at the facility. The ventilation system designs will include automated and manual controls as well a failure detection system with alarms to ensure that potential facility ventilation and air quality problems are promptly addressed. The HVAC system will be installed and maintained to provide a safe, comfortable, and hygienic environment for employees. Per CCR 31 §5.410.4, procedures for testing and adjusting HVAC systems and controls will be established in accordance with the manufacturer’s specifications and applicable standards. The HVAC system will be balanced in accordance with the latest edition of standards published by the Associated Air Balance Council, the National Environmental Balancing Bureau, or the Testing, Adjusting and Balancing Bureau (CCR 23 407.3). Air Filtration To provide a source of clean air, outdoor air intakes will be located at least 25 feet from exhaust outlets, cooling towers, and sources of vehicular exhaust or other noxious fumes (CCR 23 407.2). All air intakes will be equipped with high-efficiency particulate absorber (HEPA) filters to remove dust, pollen, and small particulates, and activated charcoal filters to remove or neutralize pollutants and microbial contaminants. Filters will be changed regularly based on the manufacturer’s recommendations. Air Quality Policies In addition to ensuring that the HVAC system provides appropriate environmental controls, Coastal will implement certain company policies to promote clean air quality in the facility, which includes the following measures: Signage inside and around the property will alert staff that cigarette smoking, and smoking, ingesting, or consuming cannabis on the premises or in adjacent areas, is prohibited Volatile Organic Compounds (VOCs) are organic chemical compounds that can off-gas from certain products and can adversely affect the environment and human health. Whenever possible, low VOC-emitting building supplies, furnishings, wall coverings, and office equipment will be used in the facility. Non-toxic, low VOC-emitting cleaning supplies (preferably organic) will be used to clean the facility 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Odor Control Plan Non-toxic (preferably organic biocides) will be used for pest control, if necessary, as a component of Integrated Pest Management Radon, carbon monoxide, and smoke detectors will be installed in the facility. The detectors will be tested regularly according to the manufacturers’ recommendations and, if applicable, their batteries will be changed on a regular basis If possible, the company will purchase low-emission vehicles that will park away from air intakes to prevent vehicle exhaust from entering the building The property’s ventilation and exhaust systems are designed to control odors in such a way as to not disrupt the ability of any reasonable person to enjoy the reasonable use of that person’s residence or areas open to the public. In addition, the use of the systems described below will prevent fumes and odors from exceeding the boundary line of the lot. The ventilation systems will use the most effective odor control technology available, including: An exhaust air filtration system with odor controls, such as carbon filters, or vapor barriers, as appropriate, to mitigate odors. Air filtration is the industry best method and nearly totally eliminates cannabis odors An air system that creates negative air pressure between the building interior and exterior to ensure that odors generated by cannabis are not detectable offsite or outside of the building Coastal Policy Regarding Personal Use of Cannabis Coastal prohibits the consumption of cannabis (including smoking) within the vicinity of our property boundaries. Internal and external signage will include the following statements SLOMC 9.10.210 prohibits any smoking activity of cannabis by all persons within the following areas: in, on, or about the premises of any Commercial Cannabis Business; in, on or about any publicly owned or operated property; any place open to, or accessible by the public; any place smoking is prohibited; or any place visible from any public place with normal unaided vision; in on or about any other business, club, cooperative or commercial event, regardless if open to the public or only to members, ticket holders or event invitees; any location where an entry or other fee is charged to attendees or to the host or where a thing of value or consideration is received or exchanged, directly or indirectly, for or related to the provision of cannabis. No person shall smoke cannabis, without controlling odors emanated from that smoking, which are disturbing to people residing or present on adjacent or nearby property or areas open to the public.” Consumption and smoking policies for employees are reviewed regularly, and failure to adhere to the policy may result in employment termination. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Odor Control Plan Odor Control Complaint Policy Complaints may be made in person to Coastal staff, via our website, or by contacting Malante Hayworth directly at (Malante is the senior leader responsible for managing, resolving and reporting odor complaints. Complaint Process Upon receiving a complaint regarding odor, the complaint will be logged into our system, and management and staff members will provide details on the event. An investigation will be conducted to identify the source of the odor. If the source of the odor is due to a malfunction of an odor control or air quality management system, a maintenance team will be immediately deployed to address the issue. Following repair, the site manager, maintenance specialist, and facility team will further test the system to verify if the problem has been resolved prior to continuing operations If the source of the odor is found to be due to a client violating the non-smoking policy, the client will be reminded of smoking restriction within the lot vicinity and will be asked to leave by security personnel or by the site manager; first or repeated offenses can/will result in a prohibition from future product purchases and site visits If the source of the odor is due to an employee violating the non-smoking policy within the lot vicinity, they will be subjected to disciplinary action that can lead to termination Coastal will also work with the California Bureau of Cannabis Control (the Bureau) if a formal complaint regarding odor has been filed through its website and will update the Bureau regularly regarding the status of the resolution, as appropriate. After addressing the problem, Coastal will initiate a staff meeting to discuss the resolved issue and how to prevent future episodes of the incident from reoccurring. The topics explored in this discussion will be included in all future training programs for new hires in addition to scheduled staff meetings. Overall, Coastal’s policy will focus on preventative than reactive strategies to inhibit all odor-related incidents from occurring. All staff members will be thoroughly trained on how to respond to public complaints regarding odor in addition to effectively resolving the issue within policy and regulation guidelines. Complaints records will be retained for a minimum of seven years per BPC §26160(b) and will include the following information: Detailed information about complainant's odor nuisance experience 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Odor Control Plan Date the complaint was received and the name, address, or telephone number of the complainant, if available Identification of personnel involved with documenting, reviewing, and investigating complaints, in addition to management personnel involved with making decisions about a follow-up action Findings of the investigation and follow-up action taken when an investigation is performed Response to the complainant, if applicable Contingency Measures for Continuous Public Nuisances In addition to Coastal’s preventative measures for inhibiting odor nuisance issues, a contingency plan will be deployed following an unresolved dispute regarding odor. The contingency plan is individualized for each unique circumstance, according to the following plan: If the odor is unable to be effectively abated with the use of the HVAC system, Coastal will replace all filters with activated carbon filters (e.g., polarized media filters with activated carbon insert pads), which utilize electromagnetic polarization to fully optimize odor filtration. This measure will ensure that air quality is thoroughly maintained throughout facility operations and will be continued to be replaced, as needed If the odor is unable to be effectively abated due to repeated violations of the non-smoking policy by clients, a security team will identify the offenders prior to entry and will prohibit entry into the facility. In addition, violations from staff members will result in immediate termination and a staff meeting will take place to review policy If the odor is unable to be effectively abated due to repeated malfunctions of the HVAC system, a new unit will entirely replace the old system to ensure management of air quality—which will be followed by multiple retests to ensure quality and functionality. This plan will be coordinated between Coastal team leaders and site managers to ensure the new system is promptly installed prior to resuming operation 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Hazardous Materials Plan Hazardous Material Plan In keeping with SLOMC 17.99.050(D)(2)(g), Coastal has developed this comprehensive Hazardous Materials Plan to effectively ensure our workers remain safe throughout operations. Given that we will be running a non-storefront retail business Coastal does not anticipate we will be producing a substantial amount of hazardous waste or materials. Regardless, it is still imperative that we develop this plan to ensure optimal compliance with safety and health codes. All chemical materials will be disposed of in such a way as to not cause harm to wastewater system workers. In the unlikely event that we do produce hazardous waste, we are fully prepared to manage and safely dispose of it in accordance with federal and state laws, specifically according to the procedures set out by the State. Hazardous Waste Coastal will utilize San Luis Obispo County Integrated Waste Management Authority (IWMA) programs for handling hazardous wastes. Coastal expects to qualify for the County’s Conditionally Exempt Small Quantity Generator (CESQG) Program, as we intend to produce less than 27 gallons or 220 pounds of hazardous waste to dispose of per calendar month. As such, in the event that we do need to dispose of hazardous waste, we will fill out the CESQG Waste Inventory and Certification Form provided by the County to ensure we follow proper protocol. Coastal will maintain a secure, sealed hazardous waste container on site to collect hazardous wastes for periodic disposal. The separate hazardous waste container will be located away from storage areas for cannabis products to prevent contamination. Standard Operating Procedures (SOPs) will be developed, continuously updated, and consistently implemented to ensure a safe and hygienic workplace. General facility health and safety SOPs include: Employees will be provided with adequate hygiene stations, toilets, and break rooms Food and drink will not be allowed except in break rooms and other designated areas Smoking will not be allowed within the facility, including outdoor areas Cannabis consumption will be prohibited on the premises Employees will use appropriate PPE, such as gloves and safety glasses, for specific tasks such as cleaning, waste disposal, equipment maintenance, or other tasks that may expose employees to hazards Facility cleanliness and sanitation will be maintained through regular sweeping and mopping, waste removal, removal of misplaced materials, inspecting storage areas for signs of mold and contamination, and other tasks 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Hazardous Materials Plan Equipment used to clean and sanitize will be kept in good working condition and will be kept in an area that prevents contamination Waste will be collected in authorized sanitary receptacles and will be regularly collected and disposed of to prevent contamination and odors Material Safety Data Sheets (MSDS) and Safety Data Sheets (SDS) will be maintained for potentially hazardous materials, including cannabis goods if applicable Potentially hazardous materials, for example cleaning products or motor oil for vehicle maintenance, will be properly labeled and stored Chemical, Hazardous, or Contaminated Waste Disposal of seeds and hazardous or contaminated waste will be handled with special procedures, prioritizing its immediate removal and disposal and taking extra care to keep prevent the contamination or seeding of any areas outside the facility. All procedures will be in keeping with local and federal laws, regulations, and rules for chemical waste disposal. Sharp Objects Disposal of sharp utensils such as blades or shears will be eliminated by putting the waste material into a commercially available container designed for sharps disposal. This container will feature a puncture resistant plastic housing. The sharps will be disinfected in 10% bleach. The container will be labeled “SHARPS.” The container will be sealed with heavy-duty tape, double bagged and thrown in normal greenhouse trash. Cleaning Supplies All of Coastal’s cleaning supplies will be non-hazardous and eco-friendly. We typically look for products that utilize biodegradable formulas, are manufactured through LEED-certified facilities, and are ethically sourced (i.e., not from companies that destroy ecosystems for profits). For all-purpose cleaning supplies that will be utilized to clean counters, floors, restrooms, and walls, we intend to utilize products such as Ecover. The company’s products come in plant-based packaging, are biodegradable, and have recyclable packaging. Ecover’s all-purpose cleaner and toilet cleaner will be used by our custodial staff, who at all times will be wearing proper gloves, masks, and other relevant personal protective equipment (PPE) while performing tasks. We aim to ensure that all our employees are effectively protected against hazardous materials, therefore cheap cleaning supplies that have hazardous agents will not be purchased or used at our facility. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Hazardous Materials Plan Waste Disposal Coastal intends to dispose of general solid waste for collection by the municipal refuse collection service provided by San Luis Garbage Co., which is a franchised company utilized by the City1 of San Luis Obispo to collect solid waste. Coastal will sign up for the garbage and recycling services with San Luis Garbage Co. and will work with their officials to ensure we follow through with the correct procedures. San Luis Garbage Co. or the City will provide a commercial bin or container that will be located on the premises in a City-approved trash enclosure without gates. Non-recyclable cannabis packaging and labels will be shredded to render them unrecognizable and unusable before they are discarded into the general solid waste bin as a measure to prevent the risk of diversion or misuse. The lid to the general solid waste bin will remain closed at all times to prevent flies, insects, escaped waste, and nuisance odors. General waste collected in smaller bins inside the facility will be regularly emptied into the City-provided commercial bin in order to minimize the potential for the trash to attract, harbor, or become a breeding ground for pests, which will promote a safe, hygienic, and pleasant environment for all clients, employees, and community members. Recycling Coastal will establish internal policies to encourage its employees to discard recyclable material into the commingled recycling bin, including paper and cardboard, plastic containers (coded 1 through 7), metal and cans, and glass bottles and jars. Coastal will also take advantage of the recycling services provided by Cold Canyon Landfill, which collects electronics and computers, 2 small appliances, batteries, lights, and other materials that can be recycled separately from comingled recyclables. Beyond recycling, Coastal will implement standard business practices that reduce the overall quantity of waste that ends up in landfills. Coastal will purchase products made of recycled materials whenever possible, such as office paper products (printer paper, envelopes, business cards, etc) made of at least 50% post-consumer recycled materials, paper towels and toilet tissue made of recycled content, and interior furniture and finishes made of recycled material to the extent possible. The IT department will implement office printer default settings to double-sided printing to reduce the use of paper. Employee break rooms will provide reusable dishes and utensils to reduce the use of disposable products. 1 https://www.slocity.org/government/department-directory/utilities-department/garbage-recycling/solid-waste 2 http://www.coldcanyonlandfill.com/ 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Hazardous Materials Plan Cannabis Waste The Quality Assurance department will be responsible for periodically inspecting all cannabis goods to ensure that quality control criteria are met, as described in our Business Operations Plan. The Quality Assurance department will quarantine all cannabis goods that do not meet quality control criteria, returned cannabis goods, cannabis goods that are subject to a voluntary or mandatory recall action, and other cannabis goods that may be contaminated, adulterated, deteriorated, or otherwise not suitable for consumption or retail sale. Coastal aims to minimize incidents involving product deterioration by implementing preventative rather than reactive measures alone. To maintain the consistency of our quality-driven products, routine inspections will be incorporated within daily operations. Further, information modules regarding assessing product quality will be made readily available and easily accessible for all Coastal employees. Destruction of Cannabis Waste To destroy cannabis waste, cannabis product will be removed from its packaging, weighed, and destroyed in a manner that renders the cannabis waste unusable and unrecognizable per CCR 16 5054. In accordance with CCR 16 §5054(d), all cannabis goods intended as waste will be removed and separated from the packaging and mixed with either general landfill waste or compostable material at a 1:1 ratio by volume. The cannabis waste and non-cannabis materials are typically mixed together using a grinder or shredder so that the cannabis waste becomes unusable and unrecognizable. Handling Cannabis Waste In keeping with CCR 16 §5054(b), cannabis waste shall be stored, managed, and disposed of in accordance with all applicable waste management laws, including, but not limited to, Division 30 of the Public Resources Code. Cannabis waste, such as expired or adulterated products, will be collected into a separate, secure (i.e., locked), and properly labeled disposal container located in a limited access area, per CCR 16 §5054(c)(1). Any product intended for cannabis waste will be tracked through our system and separated from cannabis goods not intended for waste, per CCR 16 §5054(c)(2). The disposal container will be kept securely closed and located in a well-ventilated area to minimize the development of odors, which will subsequently allow for easier handling of odor abatement efforts and systems. All cannabis waste will be tracked in METRC in keeping with inventory control procedures (Business Operating Plan) and with CCR 16 §5054(f). No member of the Coastal Team will be involved in the sale of cannabis waste defined under CCR §5000(d). In keeping with Coastal’s security plan, employees will be monitored by the video surveillance system while handling cannabis waste to ensure compliance 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Hazardous Materials Plan to company policy and legal regulations. Evidence of an employee-driven sale of cannabis waste or otherwise deteriorated product will lead to immediate termination and possible criminal prosecution. Cannabis waste shall remain in the premises until it is properly handled, prepared, and secured in a restricted area to be collected by the City’s permitted waste hauling service, per CCR 16 §5054(c) and CCR 16 §5054(c)(2). Waste Tracking All cannabis waste will be tracked in METRC in keeping with inventory control procedures, including the weight of the cannabis waste, the weight of the general or compostable waste, and the weight of the and resulting mixed waste. The data entered into METRC will also include the names of the employees performing the destruction or disposal and the reason for destruction or disposal per CCR 16 §5049(b)(7). Per CCR 16 §5037(a)(7), a record of all information entered into the METRC system will be retained for at least 7 years. Surveillance footage for the limited access area where the cannabis waste is stored and collected for disposal will provide further verification of proper waste disposal practices. Once cannabis waste has been destroyed by mixing it with other waste, it will be handled in accordance with the provisions of CCR 16 §5054 for proper disposal. The mixed cannabis waste will remain in a secure container located in a limited access area until scheduled pickup. As mentioned before, Coastal will utilize San Luis Garbage Co to bring the cannabis waste to the appropriate manned, fully permitted waste facility. The following procedures will be implemented to document and verify the proper disposal of cannabis waste: Notify the Bureau of the name, address, and primary contact information for the local agency or permitted waste hauler that picks up the cannabis waste Obtain documentation of the date and time of waste collection from the local agency or permitted waste hauler Obtain a copy of the certified weight ticket or other documentation confirming receipt of the cannabis waste at the designated waste facility Provide the Bureau with the name, address, and primary contact information for the designated waste facility (CCR §5049(b)(7)(C)) Other Waste Other wastes that will be rendered unusable and unrecognizable prior to disposal include labels, containers, packaging, and any other item that could be misused by an outside party for illegal and unauthorized purposes. These materials will be destroyed by shredding them, and may subsequently be used as part of the 50% by volume of non-cannabis material that will be used to render cannabis waste unusable and unrecognizable per LR 6147(17) §8(N). Although the 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Hazardous Materials Plan destruction of packages and labels is not required under current state or local regulations, Coastal is committed to taking all practicable measures to prevent the facilitation of unregulated, illegal cannabis activity as a good corporate citizen and responsible industry ambassador. Conclusion Coastal’s goal is to establish an environmentally safe and efficient business model that takes into consideration the health and well-being of its community and employees. As such, complying with a comprehensive cannabis disposal procedure aligns with Coastal’s core values for promoting quality-driven products. Coastal’s cannabis disposal procedures will be subjected to continuous updates, rigorous reviews, and active monitoring to prevent issues rather than to solely react to them. Overall, Coastal is dedicated to highlighting the capacity for phenomenal success when adhering to best standards of practice as well as regulatory policy. 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 6 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan Energy Efficiency Plan In keeping with SLOMC 17.99.050(D)(2)(e), we have developed this Energy Efficiency Plan to ensure that we help the City’s efforts in minimizing our carbon footprint during operations. The Monterey Bay Community Power’s community choice energy (CCE) program, now working in conjunction with San Luis Obispo, was essentially established for one purpose: our future. We cannot go about discussing community benefits and how we can help the individual without addressing a Climate Action Plan of our own, as ensuring we do our part will ensure that our competitors and fellow business operators will incorporate the same dedication to climate justice as Coastal. There are essentially three primary factors involved in ensuring we accomplish all this: facility structure, internal policy, and community advocacy. Facility Design In order to keep with the City’s CCE program, we have to start with the design of our facility. There are three primary components when it comes to facility design and operations and essentially all of them deal with creating the foundations for conservative use of supplies. The first component is involved in the construction of our facility. Some operators might only start considering environmentally-friendly policies after construction, but we are considering them well before—down to the types of materials we will use. By buying recycled and reclaimed local building materials, gently-used office furniture and fixtures as opposed to purchasing new ones, and the other items mentioned more in detail below, we effectively reduce our energy and materials consumption. Low VOC Building Materials First and foremost, we’re going to be keeping with our policy of promoting economic expansion in San Luis Obispo by contracting local construction workers and project managers. In regards to how we’re going to build a facility worthy of consideration in the city’s Climate Action Plan, the very first thing we’re going to consider is something as seemingly trivial as paint. Low-volatile organic compound (VOC) emitting building materials will be used to create the foundation of the structure in addition to low VOC paint material for the walls. In this way, we are promoting the sale of materials that are not harmful to the environment and our community. FSC-Certified Wood The next step involves ensuring our building materials are also eco-friendly. The lumber we use for construction, for instance, will be Forest Stewardship Council (FSC) certified. What this would mean is that we would do our part in helping protect fragile ecosystems, preventing illegal 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 1 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan logging, restriction of clear-cutting (i.e., removing all trees in a tract), and more importantly, respecting native culture and economies that these logs are sourced from. It may be a more expensive option to seek out FSC-certified building materials, but the last thing we want to do is contribute to companies who destroy entire ecosystems for the sole purpose of profitability. It’s not something we as a company stand by and support. Cradle to Cradle Certified Products Moving past the building materials, we’ve also mentioned we will ensure our furnishings are also eco-friendly. Cradle to Cradle certified products are the furnishing equivalents of FSC certification for lumber and building materials. These products are essentially recycled and repurposed to be used again, which effectively helps us keeping the city’s Climate Action Plan regarding promoting zero waste policies. Each of our EcoWorx carpet tile products, for instance, list the number to call for five-hundred yards or more of carpet to be picked up and recycled at no charge. This step ensures both cost efficiency and waste efficiency. Additionally, we will use as many biodegradable products as possible to reduce waste from plastics and other harmful material. Parking Design 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 2 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan Another vital design element is parking. Something as cheap and affordable as having bike racks can be an effective means of promoting employees to come to work via cycling versus driving. Additionally, we will offer discounts to those who use public transit. Our facility will also have spare locks to temporarily give out to employees should they, by chance, forget their own. Aside from installing bike racks, we will also have a parking spot dedicated to electric vehicles readily available with a charging station, as well as additional spots for hybrid vehicles. As time progresses and individuals become more eco-friendly, we will expand the number of these charging stations at our parking lot to further help promote fewer carbon emissions. These charging stations can be bought for as low as $65 per unit. Considering the impact something as affordable as a charging station can have, it’s well worth the price and the effort. Carbon Offsets Coastal is fully aware that San Luis Obispo is aiming to be carbon neutral 10 years ahead of the rest of California. In keeping with this, Coastal will be subscribed to purchasing monthly carbon1 offsets to balance out any carbon dioxide we produce, despite the fact that we anticipate the amount will be minimal. U.S. Carbon Offsets represent projects that reduce greenhouse gas emissions across the United States. These projects capture, destroy, or reduce harmful greenhouse gases emitted from sources such as animal waste, landfills, fossil fuel use, or refrigerants. By choosing U.S. Carbon Offset option, Coastal directly supports a wide range of innovative carbon reduction projects throughout the United States at an affordable price. 1 Nick Wilson, “SLO wants to be carbon-neutral 10 years faster than the rest of California,” The Tribune, https://www.sanluisobispo.com/news/local/environment/article218938825.html, (Sept 24, 2018) 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 3 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan The first step prior to purchasing carbon offsets is calculating how much carbon emission we are actually releasing due to our operations. Essentially, One Carbon Offset represents the reduction of greenhouse gases equal to one metric ton of carbon dioxide equivalent (CO e). We will be purchasing carbon offsets via a monthly subscription service to ensure that we are fully balancing our CO emissions with an equivalent number of carbon offsets to maintain balance. Environmental Internal Policies Coastal will implement various environmental policies to reduce its environmental footprint and promote good corporate citizenship. Coastal will work closely together with the County’s Climate and Energy Plan. The program certifies businesses that operate in an environmentally responsible manner. As stated before, the build-out of the facility will provide an excellent opportunity to use green building materials and techniques. CALGreen will be used as guidance during construction. Green, low-volatile organic compound (VOC) emitting building materials, furnishings, and wall coverings will be used whenever possible. Aerator faucets and ultra-low-flush or high-efficiency toilets will be installed in the facility to conserve water. The building’s heating, ventilation, and air conditioning (HVAC) system will comply with City regulations. It will also be designed to prevent and filter any potential cannabis odors from escaping the building and being detected by the surrounding neighborhood. This risk of odor is quite rare as all products are in airtight-sealed containers prior to arriving on-site. The air system will generate negative pressure between the building interior and exterior to prevent odors from escaping the building. The exhaust system will utilize an air filtration system with carbon filters, ozone generators, or vapor barriers to mitigate odors. Coastal will reduce energy consumption in several different ways. The building will be properly insulated and window film will be applied to the windows. Programmable digital controls will be installed for the HVAC system of 55 at night and 68 in the day. The company will purchase energy-efficient equipment and appliances (e.g., Energy Star or EPEAT certified). Compact fluorescent or light emitting diode (LED) lighting with dimmable ballasts and occupancy sensors will be used. Computers and monitors will be set to hibernate when not in use. Lighting, computers, and other electrical devices will be turned off during non-business hours. All of our systems will be equipped with smart-software capabilities, in that they will shut off when not active during non-operational hours, as to help in keeping with the City’s Smart City Strategic Action Plan. We will work to reduce phantom loads and will utilize solar-hot water as much as possible to reduce energy usage. We will install solar panels that could help offload some of the energy and create local clean power. We will install no-flush urinals in the men’s 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 4 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan bathroom, which will also be equipped with towelless drying equipment that is certified as eco-friendly. Coastal is committed to establishing a recycling program and purchasing products that contain recycled materials, whenever possible. Paper, letterhead, envelopes, business cards, and marketing materials will all have a content of at least 50% post-consumer waste (PCW). Toilet tissue will contain a minimum of 20% PCW and paper towels will contain a minimum of 40% PCW. The default for printers will be set to print double-sided. Paper, plastic containers, and aluminum cans will be recycled. Old office equipment will be taken to an electronics recycling company. Coastal will also make every effort to compost cannabis waste, either onsite or through a waste management company, rather than sending the waste to a landfill. Food waste will also be composted. Finally, all natural, preferably organic cleaners will be used to clean the building. Non-toxic, preferably organic biocides will be used for pest control, if necessary, as a component of Integrated Pest Management. Environmental Activism Coastal has established an ongoing volunteer and donation support program with ECOSLO, as the primary sponsor of ECOSLO’s 2019 Beach Keeper’s Program. To show evidence of our initial and continued support, we have donated $1,500 to jump start this year’s program. As a sponsor, we have committed to providing 8 of our staff members as volunteers per month, equating to 24 hours of community service. Additionally, we have committed to a donation of $1,000 per month to help facilitate all the necessary resources and equipment required for the Beach Keeper’s monthly clean up program and data processing. Environmentally Conscious Business 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 5 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan Green Building Standards Coastal will design and build its facility to meet and exceed the requirements of the California Green Building Standards Code (CALGreen) and the California Energy Code . Coastal’s23 interior and exterior design team will incorporate a comprehensive suite of green design elements in the remodel of its facility, including significant improvements to the existing building infrastructure. Coastal will strive to incorporate as many criteria as possible from the City’s CCE program to maximize the environmental sustainability of its facility build-out. The design team will also be guided by LEED green building criteria, and Coastal intends to seek LEED certification for its non-storefront facility if feasible based on retrofit options for the existing building. Coastal will hire a LEED auditor to fully capture all possible retrofits and reductions. Coastal facility interior design elements will include: Plumbing that conserves water and energy, including water-efficient faucets and fountains, dual-flush toilets, and other fixtures; tankless water heaters; and insulated hot water piping Insulation that exceeds California Energy Code requirements, including energy-efficient and noise-reducing cellulose or cotton batt insulation in walls and ceilings HVAC systems with programmable thermostats and Energy Star certified4 heating/cooling equipment that exceeds California Energy Code requirements by at least 10% Energy-efficient lighting systems fitted with Energy Star certified fixtures with dimmable ballasts, compact fluorescent or LED bulbs, occupancy and photosensors, and timers Skylights to improve the availability of natural light Indoor air quality enhancements including high-efficiency HVAC filters, hard surface flooring with no or minimal use of carpeting, no-VOC paints, low-VOC sealants and adhesives, and furniture and finishes made from composite wood that is free of urea formaldehyde Furniture, countertops, and other finishes made from as much recycled content as possible Coastal facility exterior design elements will include: 2 California Code of Regulations, Title 24 Building Standards Code, Section 11 California Green Building Standards Code; https://codes.iccsafe.org/public/document/details/toc/658 3 California Code of Regulations, Title 24 Building Standards Code, Section 6 California Energy Code; https://codes.iccsafe.org/public/document/details/toc/659 4 https://www.energystar.gov/ 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 6 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan Durable, low-maintenance exterior finishes made of recycled material Exterior shading devices on south-and west-facing windows Weather protection and moisture control for building exterior walls, foundations, exterior doors, and entryways Employee parking that includes designated parking for alternative fuel vehicles, EV charging spaces, and secure bicycle parking Landscaping that uses drought-tolerant plants and water-efficient irrigation Outdoor lighting with light pollution reduction controls A waste collection area that includes space for storage of recyclables and compostable material Installation of a rooftop photovoltaic (PV) system, or electrical conduit for a future PV system In addition, Coastal will select a local contractor for facility build-out who is committed to following the mandatory and voluntary green construction practices outlined in CALGreen, including stormwater pollution prevention and erosion control best management practices BMPs); construction waste reduction and recycling (minimum 80% diversion from landfills); implementing a construction air quality plan; using low-impact development (LID) strategies to improve rainwater infiltration; employing construction techniques to maximize material conservation and resource efficiency; choosing durable and low-maintenance construction materials; and other green construction practices as applicable. Sustainable Business Practices Coastal will implement various environmental policies and practices to reduce its environmental footprint and promote good corporate citizenship. From procurement policies that favor purchasing recycled or sustainable materials to systems controls that favor energy efficiency, and encouraging employees to follow behavior based practices that reduce environmental impact, it is Coastal’s goal to operate in the most sustainable manner possible. Coastal sustainable business practices will include the following: The IT department will manage network resources for reduced energy consumption, including setting printer defaults to double-sided printing and managing computers and monitors to enter low energy states (i.e., “hibernate” or “sleep”) when idle or not in use Lighting and electrical system timers will ensure that power is turned off or minimized during non-business hours Employee break rooms will include composting and recycling reusable dishes and utensils, and provide refrigerators and cooking appliances that encourage employees to prepare their own meals rather than depending on take-out services 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 7 Coastal Delivery SLO, LLC San Luis Obispo Cannabis Commercial Business Operator Permit Application Energy Efficiency Plan Sustainable office and breakroom supplies will be provided, including paper products printer paper, envelopes, notebooks, paper towels, toilet tissue, etc) that are made out of a minimum 50% recycled content, soy or plant-based printer inks, and cleaning supplies that are non-toxic, organic, and biodegradable The facility waste management program will include recycling and composting, and Coastal will work with the San Luis Obispo County Department of Public Works to recycle electronics, batteries, ink cartridges, and hazardous materials An employee incentive program will be implemented to encourage employees to adopt sustainable behaviors, including eco-friendly transportation (i.e., walking, biking, public transportation, or rideshare), practicing reduce, reuse, and recycling habits, limiting office printing, and participating in environmental volunteer programs Managers and employees will form a voluntary sustainability committee to continuously educate staff on Coastal’s environmental policies, as well as look for new and creative ways to continuously improve on Coastal’s sustainable business practices 2019 Coastal Delivery SLO, LLC. All Rights Reserved. Confidential. 8