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HomeMy WebLinkAboutC-20-130 HerbNJoy RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-130 Submitted On: Dec 17, 2020 Applicant Rajan Dave rdave@herbnjoy.com Applicant (Entity) Name: Fresno Erudite Ventures DBA: HerbNJoy Physical Address: 1900 S. Norfolk St. Suite 350 City: San Mateo State: CA Zip Code: 94403 Primary Contact Same as Above? Yes Primary Contact Name: Rajan Dave Primary Contact Title: Chief Executive Officer Primary Contact Phone: Primary Contact Email: rdave@herbnjoy.com HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: No Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Retail (Storefront) Business Formation Documentation: Corporation Property Owner Name: D&E Properties, Inc. Proposed Location Address: 210 Van Ness Avenue City: Fresno State: CA Zip Code: 93726 Property Owner Phone: 559-647-5838 Property Owner Email: bill@hdmdinc.com Assessor's Parcel Number (APN): 468-272-07 Proposed Location Square Footage: Supporting Information Application Certification Owner Information 2500 List all fictitious business names the applicant is operating under including the address where each business is located: HerbNJoy 3600 Haven Ave. Ste. 6 Redwood City, CA 94603; 2678 N. Main St. Ste. 2 Walnut Creek, CA 94597; 164 Aero Camino Goleta, CA 93117 Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? No I hereby certify, under penalty of perjury, on behalf of myself and all owners, managers and supervisors identified in this application that the statements and information furnished in this application and the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued. In addition, I understand that the filing of this application grants the City of Fresno permission to reproduce submitted materials for distribution to staff, Commission, Board and City Council Members, and other Agencies to process the application. Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits, and photographs for any purpose unrelated to the City's consideration of this application. Furthermore, by submitting this application, I understand and agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of Fresno Municipal Code and State law. Under penalty of perjury, I hereby declare that the information contained in within and submitted with the application is true, complete, and accurate. Iunderstand that a misrepresentation of the facts is cause for rejection of this application, denial of a permit or revocation of an issued permit. A denial or revocation on these grounds shall not be appealable (FMC 9-3319(d)). Name and Digital Signature true Title Chief Executive Officer Please note: the issuance of a permit will be determined based on the application you submit and any major changes to your business or proposal (i.e. ownership, location, etc.) after your application is submitted may result in a denial. All applications submitted are considered public documents for Public Records Act request purposes. For details about the information required as part of the application process, see the Application Procedures & Guidelines, City of Fresno Municipal Code Article 33 and any additional requirements to complete the application process. All documents can be found online via this link. For questions please contact the City Manager’s Office at 559.621.5555. Owner Name: Rajan Dave Owner Title: CEO DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION SELLER'S PERMIT December 1, 2020 ACCOUNT NUMBER 212377152 - 00001 Office of Control: San Francisco Office NOTICE TO PERMITTEE: You are required to obey all Federal and State laws that regulate or control your business. This permit does not allow you to do otherwise. FRESNO ERUDITE VENTURES 1900 S NORFOLK ST STE 350 SAN MATEO CA 94403-1171 IS HEREBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE PERSONAL PROPERTY AT THE ABOVE LOCATION. THIS PERMIT IS VALID ONLY AT THE ABOVE ADDRESS. THIS PERMIT IS VALID UNTIL REVOKED OR CANCELED AND IS NOT TRANSFERABLE. IF YOU SELL YOUR BUSINESS OR DROP OUT OF A PARTNERSHIP, NOTIFY US OR YOU COULD BE RESPONSIBLE FOR SALES AND USE TAXES OWED BY THE NEW OPERATOR OF THE BUSINESS. Not valid at any other address For general tax questions, please call our Customer Service Center at 1-800-400-7115 (TTY:711). For information on your rights, contact the Taxpayers' Rights Advocate Office at 1-888-324-2798 or 1-916-324-2798. CDTFA-442-R REV. 18 (5-18) A MESSAGE TO OUR NEW PERMIT HOLDER As a seller, you have rights and responsibilities under the Sales and Use Tax Law. In order to assist you in your endeavor and to better understand the law, we offer the following sources of help: • Visiting our website at www.cdtfa.ca.gov • Visiting an office • Attending a Basic Sales and Use Tax Law class offered at one of our offices • Sending your questions in writing to any one of our offices • Calling our toll-free Customer Service Center at 1-800-400-7115 (TTY:711) As a seller, you have the right to issue resale certificates for merchandise that you intend to resell. You also have the responsibility of not misusing resale certificates. While the sales tax is imposed upon the retailer, • You have the right to seek reimbursement of the tax from your customer • You are responsible for filing and paying your sales and use tax returns timely • You have the right to be treated in a fair and equitable manner by the employees of the California Department of Tax and Fee Administration (CDTFA) • You are responsible for following the regulations set forth by the CDTFA As a seller, you are expected to maintain the normal books and records of a prudent businessperson. You are required to maintain these books and records for no less than four years, and make them available for inspection by a CDTFA representative when requested. You are also required to know and charge the correct sales or use tax rate, including any local and district taxes. The tax rate applicable to your sales or use may not necessarily correspond to the tax rate of your business address displayed on this permit. You are also expected to notify us if you are buying, selling, adding a location, or discontinuing your business, adding or dropping a partner, officer, or member, or when you are moving any or all of your business locations. If it becomes necessary to surrender this permit, you should only do so by mailing it to a CDTFA office, or giving it to a CDTFA representative. If you would like to know more about your rights as a taxpayer, or if you are unable to resolve an issue with CDTFA, please contact the Taxpayers' Rights Advocate Office for help by calling toll-free, 1-888-324-2798 or 1-916-324-2798. Their fax number is 1-916-323-3319. Please post this permit at the address for which it was issued and at a location visible to your customers. California Department of Tax and Fee Administration Business Tax and Fee Division November 30, 2020 To Whom It May Concern: I am writing today to confirm that​ ​Fresno Erudite Ventures​ will be able to obtain General Liability Insurance to satisfy any and all municipal requirements, and to affirm that Erudite Ventures has a track record of being an exemplary client. Should they be fortunate enough to receive a license, Fresno Erudite Ventures will be able to obtain comprehensive General Liability insurance immediately given the exemplary track record of their operations in California. Without confirmation that a business will operate at the location, it is not possible to underwrite and produce commercial cannabis insurance for a company, as insurance companies require building information and business receipts to generate premium calculations. Thus, no reputable insurer can provide commercial cannabis insurance unless a commercial cannabis business is properly licensed by the local jurisdiction and the State of California. In my discussions with the Company, they have indicated they are prepared to obtain insurance immediately upon notification from the City of being selected to operate and/or receiving the right to apply for a permit. At that time, we are prepared to facilitate the company obtaining sufficient insurance coverage. Sincerely, Asher Styrsky, Owner / Agent www.insure420.com License #0G13465 1 LETTER OF INTENT TO LEASE This letter of intent to lease (“Letter”) entered into as of the last date written below (“Effective Date”) is intended to describe the mutual understanding between D & E Properties, Inc.(“Landlord”) and Fresno Erudite Ventures (“Tenant”) (each a “Party” and collectively, the “Parties”) regarding the lease of the commercial real estate and improvements located at 210 Van Ness Ave., Fresno, CA 93726 (“Premises”) subject to execution of a final lease agreement by the Parties (“Lease”). The Parties shall negotiate in good faith to execute a Lease, but absent execution of a Lease, the terms of this Letter shall control. This Letter shall not be binding on either Party until completely signed by both Parties. 1.Premises. Approximately 2,500 sq. ft. including 1,800 sq. ft. of commercial office space plus approximately 700 sq. ft. of commercial warehouse space. 2.Permitted Use. Tenant is authorized to use the Premises for a commercial cannabis retail business, consisting of one or more of the following activities: storefront and/or non-storefront retail sale, packaging, delivery, distribution, transportation, and/or storage of medicinal and adult-use cannabis and cannabis products, and associated business activities such as administrative office use, as allowed by and in compliance with applicable City of Fresno (“City”) and California (“State”) laws and regulations (the “Permitted Use”). Tenant may make its desired tenant improvements to the Premises, subject to Landlord’s reasonable consent. Tenant may sublet or assign its leasehold rights with Landlord’s reasonable consent. 3.Term. 5-year initial term with 2 options to renew for an additional 5 years each, with 3% annual increases during renewal terms. 4.Commencement. Lease Commencement Date December 1, 2020; Rent Commencement Date upon Tenant obtaining all required permits, licenses, and other government approvals applicable to the Permitted Use (“Entitlements”). 5.Rent. per month, beginning on the Rent Commencement Date, with 3% annual increases. This is a gross lease, with Rent being inclusive of all insurance, taxes, repairs/maintenance, and other operating expenses applicable to the Premises. 6.Security Deposit. , payable upon execution of Lease. 7.Early Termination. The tenancy will be subject to early termination by Tenant for certain specified events and occurrences beyond Tenant’s reasonable control, including without limitation: Changes in City or State law or permitting, or the existence of any recorded use restrictions, that prevent or unduly restrict or increase the cost of compliance for Tenant’s use of the Premises for the Permitted Use; or Tenant, after reasonable efforts, is unable to obtain all Entitlements. 8.Exclusivity. Landlord warrants that it is not negotiating with any other party for the lease of any or all of the Premises and has not entered into any other understanding or agreement regarding the same, whether binding or not, and, unless and until its negotiations with Tenant terminate, it will not negotiate for the lease or sublease of the Premises to any other party without Tenant’s prior written consent. 9.Brokers. Landlord is responsible for paying all leasing commissions due to Landlord’s listing broker and Tenant’s leasing agent. Doc ID: d8b831da6225bb710f8c3149929499871416d1b3 2 10.Benefit and Burden. The terms of this Letter shall be binding upon, and shall inure to the benefit of the respective Parties, their heirs, legal representatives, successors and assigns. 11.Mediation. If any dispute or claim of any kind whatsoever arising out of this Lettercannot be resolved through direct discussions, the Parties shall mediate such dispute or claim before resorting to arbitration or court action. 12.Attorneys’ Fees. If either Party commences an action arising out of or in connection with this Letter after complying with the mediation provisions herein, then the substantially prevailing Party shall be reimbursed by the other Party for all reasonable costs and expenses, including reasonable attorneys’ fees and expenses, incurred by the substantially prevailing Party in such action. 13.Ownership. Landlord warrants that it is the record owner of the Premises and has the legal authority to grant Tenant the rights specified hereunder. IN WITNESS WHEREOF, Landlord and Tenant have executed this Letter as of the Effective Date. LESSOR:LESSEE: D&E Properties, Inc.Fresno Erudite Ventures Signature Date Signature Date by William Matthews by Rajan Dave its CEO its CEO 12 / 01 / 2020 12 / 01 / 2020 Doc ID: d8b831da6225bb710f8c3149929499871416d1b3 PLANNING AND DEVELOPMENT DEPARTMENT 2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604 (559) 621-8277 FAX (559) 498-1026 November 19, 2020 Please reply to: Rob Holt (559) 621-8056 Rajan Dave Fresno Erudite Ventures 1900 S Norfolk St, Ste 350 San Mateo, CA 94403 Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04252 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 210 VAN NESS AVENUE (APN 468-272-07) Thank you for your inquiry regarding the allowance of new cannabis retail uses. The requested information about cannabis retail uses was analyzed using Article 27, Chapter 15 of the Fresno Municipal Code (FMC) of the City of Fresno. Please note, all research for this inquiry is based on existing land development of the subject property. If there are multiple buildings on the subject property, this research was based on the address provided in the request. This research does not take into effect of future development unless provided in your application request. With that, research of a proposed cannabis retail business on the subject property conveys the following: 1. All cannabis retail businesses must be located on property zoned DTN (Downtown Neighborhood), DTG (Downtown General), CMS (Commercial Main Street), CC (Commercial Community), CR (Commercial Regional), CG (Commercial General), CH (Commercial Highway), NMX (Neighborhood Mixed-Use), CMX (Corridor/Center Mixed- Use), RMX (Regional Mixed-Use), and must meet all of the requirements for development in these zones, including, but not limited to, parking, lighting, building materials, etc. The subject property is zoned DTN, which is one of the allowable zone districts for cannabis retail businesses. Development standards of the DTN zone district are available in Sections 15-1503, 15-1504, and 15-1505 of the FMC. The subject location meets the zone district requirement, per Section 15-2739.B.1.a of the FMC, for a cannabis retail business. 2. All building(s) in which a cannabis retail business is located shall be no closer than 800 feet from any property boundary containing the following: (1) A cannabis retail business; (2) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12); (3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted; and, (4) A youth center that is in existence at the time a complete commercial cannabis business permit is submitted. Zoning Inquiry P20-04252 210 Van Ness Avenue Page 2 November 19, 2020 The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business. 3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC. 4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District), they shall be dispersed evenly by Council District. The subject property is in Council District 3. There are currently no cannabis retail businesses located in Council District 3. This location requirement is satisfied for a cannabis retail business. Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8056 or at Robert.Holt@fresno.gov. Cordially, Rob Holt, Planner III Development Services Division Planning and Development Department C A N N A B I S R E T A I L E X C E L L E N C E Photography: @nahilnaseer Unsplash.com BUSINESS PLAN SECTION 1 SECTION 1 BUSINESS PLAN Overview To be successful the business must control product margins (COGS), manage labor and leverage G&A against revenue. The company expects to purchase products from licensed distributors that provide for first cost margins of slightly better than 50% to facilitate Gross Profit Margins slightly over 40% (net of discounting). Summarized on the following pages are the key elements of that plan expressed in both financial and operating terms. The total revenue from these operations is projected to be in year one and increase to by year four. Below are thumbnail summaries of the strategies, financial projections and operational thought that comprise the overall business plan. Financial budgets, cashflow projections and capital expenditures are included in our application documentation. Base Assumptions: •Market Value •Operating Results & Cash Flow •Capital Expenditures and Funding Fresno Erudite Ventures dba HerbNJoy plans to operate a cannabis retail store serving “Adult Use” and “Medicinal Use” consumers. Our Storefront and Delivery business plan is based upon a set of conservative market assumptions and operating modeling. Please describe the business plan which includes the following criteria, but is not limited to, experience of the owners, qualifications, budget, capitalization, pro forma, and daily operation procedures. SECTION 1 BUSINESS PLAN 1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner HerbNJoy is managed by a team of professionals who have successfully navigated the ever-changing landscape of cannabis regulation at the State and local levels.Understanding the regulations to achieve licensing is only the first step. Operating a compliant, tasteful and profitable business is the objective. It takes experience operating in both the cannabis industry and experience with best business practices from the non-cannabis industries. HerbNJoy ownership has both. The corporate officers/owners of HerbNJoy have over 30 combined years of cannabis industry experience bridging the conversion from medical regulations to the adult use regulatory environment.This has necessarily included challenges such as grappling with federal prohibition, including the limited access to banking services and the uncertainty regarding federal law enforcement priorities. Accordingly, the owners now find themselves privileged among a small group of highly informed applicants who are well-versed in compliance, including track and trace requirements, and experienced in operating in the regulated cannabis space. By staying rigorously focused on regulatory compliance, the owners have demonstrated a consistent track record of successfully navigating the complex array of challenges prevalent in the cannabis retail industry. Compliance is readily evident in all areas of the owners’prior and current operations in the following key ways: 1.Through their other cannabis businesses, the owners have applied for and hold licenses for nine separate cannabis operations.This demonstrates the owners’desire and ability to operate legally, withstand rigorousevaluation processes,and win the confidence of multiple licensing authorities. In addition, no applicant-owned cannabis business has ever faced regulatoryinvestigation norhave any licenses been suspended or revoked.Theapplicants are proud of their compliance record and have neverreceived a violation,indicative of the rigorous and responsible culturethat they will bring with them to the City of Fresno. 2.HerbNJoy’s infrastructure to support the business reflects the experience the applicants have operating in a regulated environment, the HerbNJoy team has fully implemented policies,standard operating procedures,highly publicized internal non-discrimination and health and safety measures, and a rigorous staff training program to ensure their expectations are communicated throughout all layers of their operation.The applicants know that running a successful cannabis business requires industry knowledge that goes beyond simply knowing about cannabis, and they are well-situated to implement strong ethical and practical infrastructure.The ownership team’s knowledge of the cannabis industry and willingness to engage with their regulatory responsibilities is demonstrated by their wider business practices.For example,the prompt and full payment of required taxes.All businesses owned collectively or independently by HerbNJoy ownership maintain all business liability insurances required by law. 3.As an employer, HerbNJoy has engaged Shunna McFarland,as the Director of Diversity &Equity initiatives.Her mandate will include prioritizing and promoting social equity and inclusion objectives. This is something that is important to all members of the ownership team,with a compensation package,including a salary above the living wage,health insurance, other insurance,a retirement plan, and paid leave already in place for those who work for HerbNJoy affiliated businesses. SECTION 1 BUSINESS PLAN 1.1 HerbNJoy has assembled a professional,diligent,and dedicated team.Drawing on their considerable experience,impeccable compliance record, and secure financial foundation which are fully evidenced herein,HerbNJoy is confident in its ability to compete on each and every component of the eligibility and selection criteria articulated by the City. The HerbNJoy ownership team has extensive experience in owning, directing, controlling, and managing cannabis business operations. Over the past several years, either collectively or independently this ownership team has earned cannabis retail licensing in cities with 4 currently in operation and the remaining 5 under construction. Our retail operations are upscale and profitable and compliant. Collectively the ownership team has over 100 years of business experience successfully operating businesses from front-line supervision to national C-Level strategy and organizational management. Included in HerbNJoy’s portfolio of operations is an our “Medicinal Only” delivery service in Walnut Creek. HerbNJoy is fortunate to have earned one of two available licenses in Walnut Creek servicing the medicinal needs of the community including Rossmoor. BUSINESS PLAN 1.1 Plan provides a resume, biography or Curriculum Vitae, which did not exceed two pages per owner, listing the owner’s qualifications to operate a cannabis retail establishment, and a minimum of two references. Dr. Rajan Dave M.D. Chief Executive Officer Rajan is an experienced physician and entrepreneur.He is a board-certified physician in Internal Medicine and founder of Foster City Medical Center. He synergized his passion for entrepreneurship with his creative vision of personalized healthcare by starting the innovative health care company. He served as CEO of Foster City Medical Center which operated clinics in Foster City and Daly City treating over 11,000 patients. Rajan completed his medical training in New Jersey where he attained the position of Chief Medical Resident.In that leadership role he supervised 40 physicians and assisted in the management of two hospitals. His experience in the medical field provided him with profound expertise in regulation compliance, protocol review, and quality measure performance through interaction with multiple public health agencies. Furthermore, Rajan possesses vast experience working with first responders including police officers, firefighters, and EMTs. Early in his tenure as Chief Medical Resident, Rajan commanded a leadership response in the public safety and health care response during the mass casualty event of Superstorm Sandy which made landfall in New Jersey and ended up being the 2nd costliest hurricane in U.S history. In addition to his medical business experience, Rajan possesses a background in the technology industry in Silicon Valley where he founded and served as CEO of XtraClear Networks; a pioneering computer network hardware company.Customers included Stanford University and other institutional organizations. Rajan earned a B.S. in Information Systems Management from the University of California, Santa Cruz. SECTION 1 SECTION 1 BUSINESS PLAN 1.1 Plan provides a resume, biography or Curriculum Vitae, which did not exceed two pages per owner, listing the owner’s qualifications to operate a cannabis retail establishment, and a minimum of two references. Dr. Rajan Dave M.D. Chief Executive Officer References Kevin O'Neill Cannabis Business Partner in Chula Vista (619) 843-9924 Daniel Dersham Business and Legal Associate in Cannabis Industry (510) 289-8235 While treating patients in his medical practice, he treated numerous military veterans returning from the wars in Iraq and Afghanistan. Many of these veterans had trouble with Post-Traumatic Stress Disorder (PTSD), insomnia, anxiety and chronic pain after their tour of duty. Raj saw firsthand the ravages of the opioid epidemic and it was especially disheartening to see our brave veterans who had risked their lives for their country to come home and become addicted to opioids and alcohol. Cannabis was a way out of their opioid and alcohol addiction. During the course of his research, Rajan discovered that cannabis was a much safer way of treating certain symptoms than traditional medicine such as opioids and benzodiazepines. Rajan took an oath as physician to “Do No Harm”. As a physician and entrepreneur,he wanted to go further and help people,thus he began his journey in the cannabis industry. First, for medical research, then to fulfill his lifelong goal of helping people by combining his business experience with his medical knowledge to navigate this inflection point in this country and this industry. As CEO of the Erudite Ventures Enterprises and the HerbNJoy brand,Dr.Dave operates three licensed cannabis retail establishments located in Redwood City,Goleta/Santa Barbara, and Walnut Creek. In addition, he has locally approved retail projects in San Francisco,Santa Rosa,Beverly Hills, Chula Vista, Mountain View, Hanford and Hayward.These projects have projected opening dates in 2021. With successful entrepreneurial ventures under his belt, the medical expertise to understand the products and their benefits, and the experience of operating in a highly regulated and licensed industry, Rajan is unequivocally equipped to thrive and lead in the cannabis industry. Chief Medical Resident -Atlanticare Regional Medical Center CEO, Founder -XtraClear Networks Professional History CEO, Founder -Erudite Ventures "HerbNJoy" CEO, Founder -Foster City Medical Center BUSINESS PLAN 1.1 Plan provides a resume, biography or Curriculum Vitae, which did not exceed two pages per owner, listing the owner’s qualifications to operate a cannabis retail establishment, and a minimum of two references. Jeff Linden Chief Operating Officer Mr. Linden has a 35-year career of accomplishment in retail busines and consumer products. This includes over 20 years at a senior management level and 6 years in the cannabis industry. Jeff’s accomplishments have been cited for excellence and innovation in industry publications ranging from retail design to warehouse management systems. Jeff has been named by the Gallup organization as one of the most effective managers in the United States. Jeff’s career began in the Macy’s San Francisco executive program in 1984 where he was promoted 9 times in 10 years learning all the disciplines of retailing; store operations, merchandising, buying, finance andlogistics. From Macy’s Jeff’s career progressed to a senior management position with Oakland based Cost Plus World Market where his responsibilities included new store expansion. His next upward move took him to Good Guys Consumer Electronics stores as part of a turnaround leadership team. Jeff served as the senior vice president of operations (including 79 stores) helping to turn the public $880 million company profitable. Mr. Linden next served as the President of Zoom Eyeworks, a national consumer products company featuring the “Dr. Dean Edell” brand and based in Berkeley. He then returned to retail as the CEO of Cabinets To Go, a national specialty retail chain with over 50 stores across the country. Jeff grew the company’s sales revenue from 28 million to 60 million in three years. SECTION 1 BUSINESS PLAN 1.1 Plan provides a resume, biography or Curriculum Vitae, which did not exceed two pages per owner, listing the owner’s qualifications to operate a cannabis retail establishment, and a minimum of two references. Jeff Linden Chief Operating Officer In 2015, he turned his sites on cannabis, rebranding, relaunching and operating one of the top-rated dispensaries in San Francisco,Medithrive. Jeff designed an aesthetic and operating environment so forward thinking that after being open for only two weeks it was named the top SF dispensary in multiple publications. It became the “go to” store for government officials to tour as the future of cannabis retail operations. It was also fortunate enough to earn the cover photo of the SF Chronicle Style Section in November 2016. Jeff joined our team in 2017 to found the HerbNJoy brand and retail concept in California. He is now a partner and operator for 4 operating cannabis retail projects across the state with 6 more approved and under construction with an additional 3 pending approval. COO/Owner Erudite Ventures “HerbNJoy” Multi-store Cannabis Retailer COO/Owner Merced Business Ventures “Manzanita” Cannabis Retailer CEO, President -Cabinets To Go, national retail company President, COO -Zoom Eyeworks, manufacturer and distributor of eyewear Sr.Vice President -“Good Guys Inc”public $800mm consumer electronics retailer Vice President of Store Operations & Logistics –“Cost Plus World Market” Store Manager, Buyer, Distribution Manager –“Macy’s Department Stores” Professional History References Scott McBride Director of Development Services (209) 385-6818 Parker Sever Chief of Police (559) 381-4003 SECTION 1 BUSINESS PLAN 1.1 Director of Community Relations SECTION 1 Tristan Matthews Law Offices of Philip M. Flanagan Legal Secretary 2005-2010 Professional History Walter Wilhelm Law Group Legal Secretary/Office Administrator 2010-2018 References David R. McNamara, Esq. Current Employer (559) 433-2133 Christina C. Tillman, Esq. Current Employer (559) 433-2358 Tristan Mattews is from Easton, a small town in the County of Fresno, and has lived there all her life. Her father still runs their family farm operation and builds farming equipment locally. Her mother works in the business office of the Fresno County District Attorney’s Office and this is where Tristan began her legal career in 2002 working as an Account Clerk. From 2003 to 2005 Tristan dedicated herself to improving the lives of underprivileged children and families in Fresno as an Account Clerk for the Fresno County Child Support Services. For the past 15 years since then, she has worked tirelessly as a Legal Secretary helping individuals get justice in the Fresno Community. In addition to her career, she owns D&E Properties with her husband, Inc., which is a commercial real estate investment corporation. In her free time Tristan enjoys painting, traveling and spoiling her pets. McCormick, Barstow, Sheppard, Wayte & Carruth, LLP Paralegal/Legal Secretary 2018-Present BUSINESS PLAN 1.1 Plan provides a resume, biography or Curriculum Vitae, which did not exceed two pages per owner, listing the owner’s qualifications to operate a cannabis retail establishment, and a minimum of two references. Director of Local Diversity &Equity Shunna McFarland References Shunna McFarland, an East Bay resident, is co-owner and Chief Operating Officer of CORE Healthcare Solutions, Inc. Shunna founded CORE Healthcare in 2015 to increase education of high-risk populations about diseases such as hypertension, diabetes and to close the gap of healthdisparities. Prior to founding CORE Healthcare Solutions, Shunna has worked as a nurse in the roles of administration, education, charge nurse, care coordination, oncology, and cardiac medicine. She has spent countless hours volunteering in the community including feeding the homeless, setting up educational classes for the community in partnership with the San Jose library, partnering with Delta Sigma Theta sorority to setup a scholarship fund for Sickle Cell in the African American community, and assisting with the development of several clinical operations for low-income communities. Shunna is committed to utilizing her leadership position to assist underserved and disadvantaged communities to bridge the gap between opportunity and achievement. She leads HerbNJoy’s Social Equity department to implement our company’s core beliefs of enhancing diversity and inclusion and giving back to the community. She oversees our community benefits program which donates 4% of all our proceeds to the community. Shunna has been a leading voice in creating high quality, reliable systems of care and developing the next generation of health care professionals to lead in these ever-changing times and now she oversees the empowerment of individuals through directing our Social Equity division. Paula Cunningham Business Colleague (404) 788-9181 Trenna Davis Business Colleague (404) 405-1362 SECTION 1 BUSINESS PLAN 1.1 Director of Neighborhood Compatibility & Local Enterprise SECTION 1 William Matthews What started out as a small, single operator operation back in 2004 has grown into a 20-employee company with a fleet of trucks and roll off containers. Although he operates from Modesto down to Bakersfield, his projects are predominately in the County of Fresno. They specialize in commercial and residential demolition. M & M AG Services Co-Owner/Farmer 1998-2004 Farmed around 1,000 acres wine grapes for a local farmer in Fresno County. His responsibilities included cultivation practices, irrigation, and processing the harvest. During this time, he also assisted his family with their nursery business. William Matthews was born and raised in Fresno. He attended Central High School and he still lives with his wife Tristan in Fresno County. Mr. Matthews owns and operates Fresno based construction company, H.D. Matthews Demolition & Excavation, Inc., and has done so since 2004. Bill also owns and farms 40 acres,20 acres of almonds and 20 acres of cherries, along the San Joaquin River. Additionally, Bill and his wife are owners of D & E Properties, Inc., which is a commercial real estate investment corporation.In his spare time, he enjoys flying his Cessna, attending car shows, and spending time with his family. Professional History H.D. Matthews Demolition & Excavation, Inc. Owner/Operator 2004-Present References Darren Johnson, Insurance Agent with James G. Parker Insurance (559)978-3001 Shane Slaven, Owner/Operator of Slaven Ranch Services, Inc. (559) 706-0545 BUSINESS PLAN 1.1 Plan provides a resume, biography or Curriculum Vitae, which did not exceed two pages per owner, listing the owner’s qualifications to operate a cannabis retail establishment, and a minimum of two references. Director of Employee Investment Sao Pires References Sao has experience in General and Specialized Pediatric Nursing including Stem Cell Transplant/Oncology/Hematology, Nursing Education at a Collegiate level, field Case Management in Workers' Compensation, Medical Case Management in Chronic Illness, and Utilization Review nurse. Her special interests include International Health and Patient Advocacy. She co-owns and is the CEO of C.O.R.E Healthcare Solutions, Inc, a nurse consulting business. She was selected as a top 10 Nurse Hero Finalist for the Oakland Athletics' Nurse Hero presented by Nurse.org. She is one of the authors of "A Systematic Mixed-Studies Review of Hope Experiences in Parents of Children with Cancer" that was recently published by Cancer Nursing: An International Journal for Cancer Care. She was selected as a Future leader of Nursing by LinkedIn Community Activation team in 2019. Sao is currently pursuing a Masters Degree in Public Health Practice with a Global Health certificate. Sao leads our Neighborhood Integration plans in order to help ensure a seamless transition as we enter the local community. Her background as an educator guides her in devising a local educational program for our customers and neighbors which is specifically tailored to each local jurisdiction. Ildavina Da Silva Business Colleague (774) 929-5270 Iva Brito Business Colleague (508) 863-1018 SECTION 1 BUSINESS PLAN 1.1 Director of Women’s Entrepreneurship SECTION 1 Amanda Howard Atlanticare Regional Medical Center Medical Residency 2010-2013 Professional History Foster City Medical Center Co-Founder/Vice-President/Physician 2014-2020 References Marilin Enriquez Medical Business Associate (650) 830-1892 Alicia Sumner Social Equity Cannabis Business Associate (774) 381-9629 Amanda Howard is the Director of Women’s Entrepreneurship for Fresno Erudite Ventures. She is also Vice President and Lead Physician at Foster City Medical Center. Her experience as a co-founder of a medical business lends her immense experience in the nuances and challenges of navigating a highly regulated industry like cannabis. She relishes her role as mentor for women interested in starting their own business and will lead our Mentorship Initiative to empower local, female-owned business owners. She contributes to our ownership team through her years of medical experience and health education. She received her undergraduate education at Regis College and earned a BA in Biology in 2004. She continued her medical education and training in the Netherlands Antilles from 2005-2010 at the American University of the Caribbean. She returned to complete her residency in New Jersey in 2013 and has devoted herself to helping patients. She has worked for over ten years as a doctor of Internal Medicine and developed our Cannabis Education Program. In her spare time, Amanda enjoys reading, traveling, and spending time with her family. Erudite Ventures “HerbNJoy” Director of Women’s Entrepeneurship 2018-Present BUSINESS PLAN 1.1 Chief Technology Officer SECTION 1 Arjun Dave References Virna Zwingle Business Associate/Former Coworker (650) 892-6484 Jesse Nelson Tech Business Colleague (408) 806-9448 Arjun Dave has an extensive background in the technology sector and has been vital to our team. He is responsible for leading the company’s technology vision, strategies, and plans for growth. He has implemented digital media branding and marketing initiatives, including social media accounts and the company webpage. He supervises daily for quality assurance and system processes. Arjun evaluates technological resources needed for all levels of employees and partners, including information technology and systems operations. Since beginning with the company, Arjun has utilized business analytics to assist in corporate planning focusing on industry analysis, retail sales data, and consumer surveys. Arjun is a Salesforce Certified App Builder and a Salesforce Certified Administrator. After college he began his career at Reqroute, Inc. working as a Business Development Associate until 2016. He then led a team as Project Manager of the Salesforce platform for Back on Track Physical Therapy and Symantec. His excellent leadership in the technology industry provides our company with a great resource to meet our growing technology needs. SECTION 1 BUSINESS PLAN 1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs. Construction Inventory Marketing (Pre-Opening) Operating Deficit (Cash Flow Impact) Sources And Uses Flowers 175,000 Concentrates 48,000 Edibles 32,000 Apparel 15,000 Misc.7,500 Total Inventory 277,500 Demo & Haul Away 22,000 Interior Framing 27,000 Drywall 48,000 Paint -Interior 12,500 Paint -Exterior 18,000 Electrical w/ Fixtures 126,500 Security 77,000 Façade & Landscaping 265,000 Metalwork 19,000 Concrete (floor cuts and resurface)14,600 HVAC 46,000 Casework/Fixtures 67,000 Office Furniture 5,000 Ceiling (soffits)37,000 Plumbing (restroom)2,500 Flooring 10,000 Shelving, Carts, Misc. 5,700 IT/Computer 217,000 Architect Fees 42,000 City Permits/Fees 46,000 Contingency 32,000 Total Construction 1,139,800 Website 4,000 Social Media 4,500 Advertising 38,500 Grand Opening Event 17,000 Total Marketing 64,000 Months 1-5 351,312 Total forecasted use of Investment Funding $1,832,612 SECTION 1 BUSINESS PLAN 1.2 HerbNJoy will maintain all records and capture all transactions within an enterprise resource planning accounting system. All records will be maintained under United States Generally Accepted Accounting Principles (“US GAAP”) and internal policies and procedures. Internal accounting policies and procedures will govern the application of US GAAP for our records and internal controls of the business. Revenues -Revenues will be maintained and recorded on an accrual basis. All retail sales will be tracked within a cannabis-focused point-of-sale (“POS”) system (Treez) with built-in seed-to-sale and Metrc tracking capabilities and reconciled daily to cash receipts and the accounting records. Sales records will be systematically transferred to the accounting system. Expenses -Expenses will be maintained and recorded on an accrual basis. Internal processes to monitor expenses include monthly cash outflows reconciliations and review and classification of all invoices. Internal controls will be established over authorized account signatories, contract approval limits, and expense coding guidelines. Assets -Assets will be maintained and recorded on an accrual basis. An inventory management system with seed-to-sale and Metrc tracking capabilities will be used to maintain inventory records and will be updated daily with inventory counts. Inventory records will be systematically transferred to the accounting system.Internal controls will be established over independent inventory counts and inventory coding guidelines. Property,plant,and equipment will be maintained and recorded within the accounting system and adjusted for appropriate depreciationmethodology on a monthly basis. Asset receivables will be reconciled and aged each month to evaluate collectability and write-offs. Liabilities -Liabilities will be maintained and recorded on an accrual basis within the accounting system. Internal processes to monitor liabilities include monthly expense accrual classifications, invoice analysis, contract assessments,and reconciliation of outstandingdebt and repayments. Cash Management -Cash will be reconciled on a daily basis with all cash receipts and cash payments internally tracked. Cash will be maintained in both banking institutions that are open to working with locally licensed cannabis operators and secured cash vaults. Internal controls will be established over the cash management process,including independent cash counts and segregation of duties. Audits -HerbNJoy shall produce audit compliant financials annually. The company is in the process of engaging an independent auditor and an accredited public accounting firm as part of its annual audit process. HerbNJoy shall engage both a risk assessment and compliance review of its operating environment. The audit process will include a summary of significant operational,regulatory,and control findings and recommendations. Records,Methodology & Controls SECTION 1 BUSINESS PLAN 1.3 Proof of capitalization in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City.* SECTION 1 BUSINESS PLAN 1.4 HerbNJoy continually monitors and acquires data from multiple industry sources including BDS Analytics, Headset, MJ Biz Daily, State and local Government reporting and internal data from our operations throughout the state. As a company, we have established a set of high-level industry and local market assumptions upon which we build our financial projections and consumer behaviors: 1.The California cannabis market will exceed by 2022. 2.The legal market will continue to absorb the illicit market in “fits” and “starts” for the next 4 years due to increased and sustained enforcement as well as the evolution of market efficiencies and availability in the legal market. We expect the illicit market to decline by 70% over that time frame. 3.While incredibly important, the medicinal market represents less than 10% of the total sales at retail in California and this number will shrink further with the conversion of “medical only” dispensaries and delivery to include adult use. 4.The cannabis market in California and its associated consumer behaviors is divided into at least 4 geographic areas each with its own average purchase size, product preferences and purchase frequency (Northern Ca, Bay Area, Central Valley and Southern Ca). HerbNJoy tailors its financial projections and inventory assortment to be both area and city specific. We have done so for our Fresno proposal. We have forecasted category sales to roughly breakout as follows: a.65% Flower & Pre-Rolled Flower b.15% Edibles & Beverages c.10% Concentrates (dabs) d.8% Health & Wellness (tinctures, topicals) e.2% Non-Cannabis (hats, t-shirts, bags) 5.Industry studies place cannabis use above 25% in California. HerbNJoy uses a slightly more conservative view of 20% for adult use and 5% for medicinal (participating consumers over the age of 21). 6.The generally accepted number of retail doors as a percentage of population varies from 1 door per 15,000 to 1 door per 25,000. HerbNJoy does not use this data point in our market share calculation. Market Analysis & Trends Pro forma for at least three years of operation SECTION 1 BUSINESS PLAN 1.4 Market Analysis & Trends HerbNJoy builds its market value estimate calculating 25% of the adult population over 21 years of age (20% adult, 5% medical) and including the surrounding market cities as appropriate (detailed on the following page). We also consider the saturation of surrounding cities (current and pending initiatives) and the quality of those operations. This produces a reasonably accurate market value. We value the Fresno market at . HerbNJoy then determines its share of that market based upon its expected competition. In almost all cases, HerbNJoy feels and has proven its ability to garner a disproportionate share of the local markets in which it operates. We then discount this number roughly 10% -15% to create an achievable conservative financial forecast. Labor Market Cannabis industry jobs are highly desirable. At HerbNJoy, we find that we attract top- tier retail and cannabis candidates. On average our job postings receive over 300 applications within the first 5 days. We hire the entire team from local talent (staff and management) in every city in which we operate, and we get great people. Our hiring strategy starts with hiring for aptitude and talent over experience. Then we train them well. For this reason, we can invest in underrepresented groups and they find success in our company. We then pay an above market wage, above Fresno living wage and above competition wage (In & Out Burger is an everyday example of this strategy). We generally hire our managers from the “Brick &Mortar” retail channel because there is an abundance of great talent and they know how to operate the basics of retail operations and we teach them cannabis and cannabis regulatory compliance. In short, the labor market for HerbNJoy in Fresno is one in which we can thrive, and our outlook is that that market will prevail through 2022. Pro forma for at least three years of operation SECTION 1 BUSINESS PLAN 1.5 HerbNJoy will operate from 9:00 AM to 9:00 PM on Monday through Saturday, and 10:00 AM to 9:00 PM on Sunday. At closing time, the premises are closed, secured, and accessible only to authorized employees and contractors. During non-business hours: (i) the premises are securely locked with commercial-grade, non-residential locks; (ii) the premises are equipped with an active alarm system. Hours of Operation Manager Opening Store Opening Procedures are outlined below. Some details regarding work activities, specific checklists and toolsets were condensed in the interest of brevity but are available for review in HerbNJoy’s working operating manual. 1.The manager on duty (MOD) arrives 40 minutes prior to store opening a.A minimum of 2 additional staff associates or managers are scheduled to arrive 30 minutes prior to store opening b.The security guard is scheduled to arrive 30 minutes prior to store opening c.The MOD may not enter the store until this minimum staffing requirement is met 2.The MOD conducts a perimeter check of the premises with the security guard to check for security breaches, general condition and any loitering cars or persons. Should any unusual condition be observed, the MOD must call the General Manager to assess and determine appropriate next steps. If the perimeter is clear of unusual conditions, the MOD enters the store and deactivates the alarm. 3.The staff, guard and other managers are admitted to the store through the employee entrance and the store is relocked (lights are motion activated). Fully describe hours of operation and opening and closing procedures SECTION 1 BUSINESS PLAN 1.5 4.The MOD and security guard perform an interior walkthrough in the same manner as the perimeter check 5.The staff associates clock in and begin set up activities for the day 6.The MOD opens the inventory vault and supervises the relocation of selling floor inventory form the vault to the sales floor (relaced and secured in assigned locked counters and drawers) 7.The MOD closes and locks the inventory vault 8.The MOD opens the employee entrance to allow the security guard to exit and position themselves in the designated location at the store entrance. 9.The MOD uses the opening checklist to ensure the following are working properly a.All Security Cameras and recording equipment b.HVAC/Odor Mitigation c.POS Software (Treez) d.iPads are charged e.Internet connectivity is up 10.The staff associates perform general cleaning and straightening up as well as check inventory levels in their assigned areas/drawers and preparing a restock list for the MOD 11.The MOD prepares the work assignments list for the day 12.The MOD pulls the assigned cash drawers from the safe (set to from the closing manager) a.The number of drawers determined by schedule and volume 13.The opening sales staff is called individually to receive their assigned iPad and cash drawer in the counting office and secures them at the POS station on the sales floor 14.The MOD completes the assignment of staff associates cash drawers and iPads checking for placement, function and security 15.The MOD does a final check of the sales floor and review of all manual logbooks to ensure a fresh date is initiated. 16.A staff associate is assigned to check-in (foyer) and the MOD opens the store for business Note: Delivery Opening procedures are part of the delivery operations chapter Manager Opening Fully describe hours of operation and opening and closing procedures SECTION 1 BUSINESS PLAN 1.5 Manager Closing 1.Prior to close of business the closing manager shall walk the store to determine store condition and customer flow. Should customer flow exceed processing capacity, the closing manager shall advise the intake associate and security guard to restrict entry to a stated number of customers ensuring all customers are processed and exited prior to posted closing time (Social Distancing is marked on our selling floor and customer flow is managed to maintain social distancing guidelines for the duration of COVID-19) 2.The closing manager closes and locks the entry door 5 minutes prior to closing leaving the exit door available for customers to depart (exit door is directional) 3.At the close of business each day the closing manager shall secure the counting area and advise security personnel of the counting process 4.At the close of business each day the closing manager shall direct the removal of inventory from the sales floor to the inventory vault room 5.The manager shall run a daily reconciliation/activity report from the POS system 6.The manager shall count all drops, drawers and driver cash; verifying previous counts in the process 7.The manager documents a “total cash received” amount and compares that amount to the expected cash calculated by the POS system reporting recording any overages or shortages in the POS system 8.The manager shall research any overage or shortage and note findings to the extent possible within the time allowed prior to armored courier pick up. If further research is needed, it shall be done the following day 9.The manager shall prepare the bank deposit and armored courier documentation for all cash received for daily activity. 10.The cash and deposit slips are placed in the bank bags and then into the lockable courier bags and locked 11.The courier bag is then placed in the safe until the courier arrives 12.The closing manager and security walk the store prior to exiting to observe and report any physical points of exposure and ensure it is clear of all people 13.The closing manager then sets the alarm and exits the building The company’s operating processes, and customer flow management prevent lines from forming even during peak traffic periods. However, should the store find itself with customer demand exceeding capacity at 30 minutes prior to closing store management shall restrict entrance to the sales floor to only those customers that may be processed and exited prior to the scheduled and posted closing time (full procedures and checklists may be found in our Operations Manual). Fully describe hours of operation and opening and closing procedures SECTION 1 BUSINESS PLAN 1.5 Customer Flow Management Fully describe hours of operation and opening and closing procedures HerbNJoy is proposing a salesfloor plan for our Fresno project that provides two barrier points for both cash and inventory while maintaining an open floorplan look and feel. This is accomplished by the creation of retail “islands” with a perimeter made up of sophisticated, secured display cases with a restricted access gate/door surrounding a center island each containing two “POS” cash stations. Our floorplan creates three such islands for a total of eight cash stations (expandable to sixteen). This approach is traditionally found in Fine Jewelry retail and has proven effective in securing both inventory and cash. BUSINESS PLAN 1.6 Daily operations. With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in which you are applying for a permit. SECTION 1 The company’s standard operating procedure (SOP’s), policies, forms and systems are all integrated, aligned and redundant to ensure regulatory conformance. HerbNJoy created a compliance matrix delineating each state compliance requirement then assigns and cites the specific company procedure or policy that addresses each requirement. This process is repeated for each city in which we operate or intend to operate breaking down the local ordinance to the item level then applying or adjusting our SOP’s to conform with the local ordinance. This process was applied to the City of Fresno ordinance and the submitted SOP’s reflect this. Overview HerbNJoy executes standardized company policies and procedures in the operations of its cannabis retail stores to ensure quality standards are implemented and consistently attained. HerbNJoy operates under a documented system of standard operating procedures (“SOPs”). There are written SOPs to govern the major processes and of all aspects of HerbNJoy’s business, including but not limited to transportation, inventory, non-laboratory quality control, security, and delivery operations. These SOPs are designed to ensure compliance with all applicable government regulations and exceed industry best practices. HerbNJoy Ownership does its best to streamline its operations across all owned locations, including Manzanita Merced, HerbNJoy Santa Barbara, HerbNJoy Redwood City and HerbNJoy Walnut Creek. To the extent possible, each of these locations employs the same compliant operations, operator and industry best practices.More importantly,none of these existing locationshas ever failed a regulatorycompliance audit or been disciplined by a regulatory agency. This history of compliance and clean track record evince the successful implementation of the above policies and procedures. Examples of Where Our Practices Have Proven Effective &Compliant BUSINESS PLAN 1.6 SECTION 1 Should the customer choose to participate in a fully immersive and educational experience they will be welcomed to a retail environment with concierge service, augmented reality “AR” and a multimedia theater sharing the history, origins and specifications of their considered purchase (the farm to table story “cannabis style”) told using multiple “4K” screens, live video microscopes, and cannabis experts as their guide. Selling Floor -Operations Overview The selling floor section of this document is a summary of processes, tools,staffing, and organizational behaviors concerning the sale of cannabis products within the store and the in-store experience that may be expected by all customers.These elements are broken into the following subsections: •Customer Experience •Physical Plant (merchandise presentation, experiential and floor plan) •Sales Process and Order Fulfillment •The POS system and Cash Controls •Opening and Closing. HerbNJoy is open to the public from 9 AM – 9 PM Monday-Saturday and 10 AM – 9 PM Sunday. HerbNJoy is open for operations from 8:30 AM - 9:30 PM daily. Cannabis goods for inspection or sale may only be displayed in the retail area. Customer Experience Daily Operations The customer experience in our retail stores is differentiated from any other in the cannabis retail channel. HerbNJoy’s layout has been planned to facilitate careful oversight and management of all employees, contractors, customers, and other visitors during their time on-site. Visitor information is retained in a log, which is accessible for security and regulatory compliance purposes. If the customer chooses to make an expedited convenience purchase, we support that experience with an express purchase process that completes the customer transaction and has the customer in and out (with full regulatory compliance) in less than 5 minutes. BUSINESS PLAN 1.6 SECTION 1 The Customer and Visitor Check-in process is detailed in section 1.6.1.i. Customer Experience (continued) Daily Operations The customer is also free to browse on their own as our stores should provide a cannabis shopping experience that rivals conventional retail leaders such as Apple or Bass Pro. These customer experiences are open to all our customers at all times (business hours only). We feel strongly that providing the customer with an exceptional and fun experience when they spend their hard-earned money is not exclusively for the affluent. Further, the customer will not be asked to pay higher product prices for a great place to shop. All sales take place in the retail area only (except for cannabis goods sold through delivery). All cannabis goods purchased by the customer will be placed in opaque exit packaging prior to leaving the premises. At no time are non-employees left unsupervised in the retail area; HerbNJoy’s employees will be physically present in the retail area at all times when there are individuals who are not employees of HerbNJoy in the retail area. The Sales Process Upon Completion of the “Check-in Process” the customer is then allowed to pass through the podiums into the selling floor area of the store. Browsing and Shopping –Upon entry to the selling floor the customer will be met by the first available salesperson.The sales associate shall greet the customer and ascertain the customer’s preference: •Be guided through the store and its experiences (choosing what interests them) •Be guided directly to their desired purchases (with or without viewing samples) •Be allowed to browse, experience displays and make purchase decisions un-aided If browsing un-aided,the customer is advised that they may engage any free sales associate for a question, sample viewing,or order placement.Our POS system facilitates the seamless assistance of any queued customer by any sales associate or manager. Further,the customer is advised that the purchase process will require the assistance of a sales associate to both fulfill their order and complete the payment transaction. Cannabis goods are only displayed in the retail area. HerbNJoy has carefully considered how best to present its cannabis goods in a manner that is consistent with a professional, hygienic, and security- conscious design. Accordingly, HerbNJoy displays empty “dummy” packaging to show customers which cannabis goods are available for sale. The selling floor is configured and proportioned into boutique style shopping islands (each island secures product and cash with two barrier points)based upon general cannabis lifestyle categories: •Flowers •Edibles •Concentrates,Extracts,Vape •Health &Homeopathic •Accessories &Equipment SECTION 1 Daily Operations BUSINESS PLAN 1.6 Sales Floor -Layout Overview of Physical Plant This is the largest category in cannabis. As such, most of our experiential displays are housed in this boutique. This includes domed displays of available flower strains and three interactive stations where the customer may learn the genetics of strains, their characteristics and effects, the cultivation story of their selection, and see a live sample both at a viewing podium and via 200x live video microscope in “HD” on a 60 square foot screen. Saleable inventory shall be held in locked drawers on the selling floor. Flowers SECTION 1 Daily Operations BUSINESS PLAN 1.6 Sales Floor -Layout Overview of Physical Plant Edibles The edible category is the most controversial and requires added expertise and merchandising care. We display our baked goods and snacks “Patisserie” style with locked samples merchandised in abundance to create a shopping environment that invites education through dialogue with our highly trained staff. Beverages and other refrigerated edibles are stored in a locked 8ft glass refrigeration display. Customers may view all edibles through glass displays but access requires authorized assistance. Saleable inventory shall be held in locked drawers on the selling floor. Concentrates, Extracts, Vape This is the second most popular cannabis category at the time of this writing (behind flowers).We have created a boutique department similar to flowers with a single interactive display with a blend of floor and shelf displays. Currently most packaging does not facilitate sample viewing by the customer. This is the most potent THC category and is treated as such in our displays and inventory management.The individual package displays on the selling floor shall not contain product unless the packaging is transparent and product visible to the customer.Saleable inventory shall be held in locked drawers on the selling floor. SECTION 1 Daily Operations BUSINESS PLAN 1.6 Sales Floor -Layout Overview of Physical Plant HerbNJoy does not sell bongs, pipes or volcanoes. For the convenience of our customers,we do stock papers, trays, lighters, etc. They shall be merchandised in this area. In addition, logo items such as t-shirts and hats may also be found in this boutique shop. Inventory in this area is not locked and sold directly from the display. No tobacco or alcohol may be advertised or sold. Note:HerbNJoy does not stock or sell live cannabis plants or seeds. Health & Homeopathic This category includes balms,salves,CBD specialty items,topicals and any items designed for external application.The display configuration features tables and shelving merchandised in the style of a farmer’s market.All packaging on display shall be empty of product.Saleable inventory shall be held in locked drawers on the selling floor. Accessories & Equipment As the customer selects their items for purchase the sales associate is recording the selections in the POS order and retrieving the stock from secured/locked drawers.If the customer is selecting multiple items,the sales associate may collect the purchase selections in an “exit”bag (state compliant material with an opaque level of visibility). When the customer selection process is complete,and the customer is ready to submit payment, the sales associate shall proceed to her/his assigned cash drawer and complete the transaction by accepting payment. SECTION 1 Daily Operations BUSINESS PLAN 1.6 Special –Sample Handling and Customer Inspection Overview The company shall display cannabis products in such ways as to provide education specification and differentiation for the customer.To accomplish this,the following display methods shall be utilized: •Brand -Displays of brand packaging that do not contain cannabis product •Closed -Displays of cannabis products that are not accessible by the customer at any time or sales associates during business hours (i.e. flowers in display domes) •Sample -Displays available for customer inspection (aroma,microscope,etc.) A select collection of products shall be made available for customer inspection outside of their manufacturer packaging.These include flowers,select edibles,and select concentrates. •These sample items shall remain secured until inspection is requested by the customer •At that time,the sales associate may retrieve the item and allow inspection by the customer (at no time may the customer physically touch the product –container is okay) •The customer may smell and visually examine the item with the assistance of the sales associate •The customer may also request to have the item displayed via the video microscope and the sales associate shall conduct that process •Upon competition of the inspection,the items are returned to their secured location Customers are unable to access any of HerbNJoy’s cannabis goods without the assistance of an authorized HerbNJoy employee. This system prevents loss and diversion, while allowing customers the opportunity to verify the quality of HerbNJoy’s cannabis goods. No item may be left with the customer unattended.The maximum number of items out simultaneously for a customer is three. Sample Handling No unattended items Check-Out . •The customer presents ID per regular store intake and advises the customer service person at the intake podium that they would like to place an express order from the menu projected on the wall. •The customer service person creates an “express” order within the POS system.This order type will generate a “pick ticket”(similar to delivery) printed in the back office. •The “pick ticket”is fulfilled and placed in compliant “exit”packaging. Back office personnel shall bring the order to the “express”pick up station on the selling floor (located near the exit in a locked drawer). •The customer enters the store and may browse or proceed directly to the express pick-up station. •The customer confirms the order completes the transaction and exits the store.Any sales associate may queue up the customer’s order and complete the transaction at the express pick-up station. Check-Out (continued) SECTION 1 Daily Operations BUSINESS PLAN 1.6 Prior to releasing the product to the customer,the sales associate shall execute the following: •Verify the expiration date on all items •Verify products are marked correctly as “A”or “M” •Verify products are properly pre-packaged and pre-labeled for final sale •Insert a cannabis education sheet into the “exit”bag Note:Prior to accepting payment the POS system is set to alert sales associate of potential purchases that exceed the daily personal limits of 28.5 grams of flowers,8 grams of concentrate for adult use or 8 ounces of flower for medical. Express Ordering Overview Order Intake The customer has the option to place an express order at time of intake,digitally or over the phone.Below are the process steps for each express order method: Phone orders •A customer may place a phone order for express pick up.For phone orders,the customer service person shall create the order in the POS system and designate an “express” order type. •From this point the process is common with the intake express order previously outlined. Digital •The customer may place an “express order”via our digital platform.This order will queue in the POS system for the customer service person. At HerbNJoy we believe that every customer should be thrilled with their purchase and that belief is on display in our return policy. SECTION 1 Daily Operations BUSINESS PLAN 1.6 Customer Product Returns Overview Policy Return Handling Any sales associate or manager may accept a customer return through the POS system following these steps: 1.Escort the customer to the designated return area on the selling floor 2.Verify the purchase a.Customer name b.Receipt in possession c.Date purchased d.Product being returned 3.Open a transaction in the POS system 4.Determine the reason for return and the customer’s preferred resolution 5.Inspect the returned product a.Note the reason in POS b.Record the line-item credit in POS c.Place the returned product in the “secured”unsaleable container in the return area d.Record the drop of product manually in the unsaleable log 6.If an exchange: a.Assist the customer with their new purchase b.complete the transaction in POS 7.If a refund –complete the transaction in POS 8.Wish the customer an extraordinary day Should a customer be unhappy with a HerbNJoy purchase for any reason, HerbNJoy will accept the unused portion of the purchase for the choice of exchange,credit toward a new purchase, or a full refund. The original receipt is required for any return,with these additional restrictions: •Multiple returns against the same original purchase are at manager’s discretion •The returned product may not be expired •The original purchaser must be the person returning the product •Immediately Keep Hard Copies In the event of a loss of connection or a system failure, HerbNJoy shall keep a hard copy of all records produced during the outage. These hard copies shall be saved and not destroyed. •Determine the reason for the loss of access 1.Possible reasons to investigate 1.Technical difficulty at METRC 2.Loss of internet connection 3.Suspension of State License 4.Technical difficulty with company POS 2.If unable to determine the cause after one hour move on to step 2 •Record the date and time of the lost access •Immediately Notify the Bureau of Cannabis Control 1.After the completion of steps 1 & 2. You must obtain confirmation of the notification or the company may be at risk for fine or suspension 2.Bureau of Cannabis Control contact information Phone: 833 768 5880 E-mail: bcc@dca.ca.gov •Cease all receiving operations until access is restored •Contact the company General Manager and POS company technical support •Work to restore access quickly based upon determination of root cause 1.Three days is the maximum allowed outage 2.If the problem cannot be fixed within three days notify the Bureau of Cannabis Control •Notify Bureau immediately after access restored (see Step 4.b) SECTION 1 Daily Operations BUSINESS PLAN 1.6 Emergency Procedure: Loss of (METRC) Track & Trace Access In the event that the company loses its connection to METRC (this includes a lost connection from the company’s POS system) the following procedure must be followed: •If a disaster renders HerbNJoy unable to comply with any licensing requirements, HerbNJoy will notify the state and local regulators of this inability to comply and request relief from the specific licensing requirement. •HerbNJoy will discontinue operations until the BCC grants temporary relief from the licensing requirement or HerbNJoy achieves compliance. •If a disaster creates a risk of loss, theft, or degradation of cannabis goods, HerbNJoy will immediately move its inventory to an alternate secure location where access to the cannabis goods is restricted to HerbNJoy’s owners, employees, contractors, and regulators. •HerbNJoy will notify the BCC in writing, by submitting the Notification and Request Form that the cannabis goods have been moved and that HerbNJoy is requesting relief from complying with specific licensing requirements. •Within 14 calendar days, HerbNJoy will submit a written request for temporary relief to the BCC using the Notification and Request Form, clearly indicating which statutory and regulatory sections relief is requested from. Emergency Procedure: Loss of (METRC) Track & Trace Access (continued) SECTION 1 Daily Operations BUSINESS PLAN 1.6 •Restore receiving operations •Upon restoration of the access connection the following steps must occur: 1.Confirm with the POS company and METRC that all transaction data held in the POS system during the time of the outage is now transferred to METRC 2.If for any reason the “outage data”cannot be sent via the POS system,then all transaction records for the outage period must be printed and manually keyed into METRC a.Confirm receipt with METRC and the Bureau of Cannabis Control b.Keep the transaction printouts for our records c.Work with the POS company to restore normal electronic data transfer d.All hard copy records produced in conformance with Step #2 must be entered into the track and trace system within 24 hours of the system being available •Perform testing to ensure all systems are functioning properly Packaging, Labeling, and Testing •HerbNJoy does not package or label the cannabis goods it sells. •HerbNJoy will not accept cannabis goods from distributors that are not already packaged for final sale in accordance with the requirements of the State of California. •Any cannabis goods in HerbNJoy’s possession that do not meet packaging and labeling requirements will be destroyed (see unsaleable). •HerbNJoy will ensure that all cannabis goods have been tested and labeled in accordance with California regulations. •HerbNJoy will only sell cannabis goods that have been tested by a licensed testing laboratory and have passed all statutory and regulatory testing requirements. Disaster Relief Product inventory is examined in terms of both financial value and piece count.Reconciliation compares the book stock of a company in dollars and pieces (what it thinks it has)to a physical count of pieces and extrapolated dollars (what the company has) for the following purpose: •Identify discrepancies •Identify the sources of discrepancies •“True”the inventory (synchronize the book stock to the physical count) •Make operating adjustments to reduce the discrepancies The key to identifying the source of any discrepancy and fixing the root cause lies in the documentation and transparency of all transactions that affect inventory.This tell the company the “Who, What and Why”of the transaction. The company uses multiple tools to accomplish this effectively: •Inventory Management Software •Point of Sale Software •Manual Documentation Processes •Management and Staff Accountability Together these tools provide the company with a transaction level audit trail that is transparent.To execute the actual process of reconciliation the company utilizes two methodologies: •Daily Cycle Counting •Weekly Physical “Wall to Wall”Inventory SECTION 1 Daily Operations BUSINESS PLAN 1.6 Inventory Reconciliation Overview Daily Cycle Counts Each day a designated number of SKU’s are physically counted. The SKU’s are determined by a pre-prepared schedule which ensures that all SKU’s are counted, and that potential high-risk SKU’s are given increased frequency and priority in the cycle count schedule. The process of cycle counting consists of the following steps: 1.All inventory activity must be “frozen”in both the system and physically.Inventory transactions may not occur while cycle counting is conducted.Therefore,the counting process is conducted prior to opening or after close of business. 2.A “Cycle Count Sheet”is created listing the SKU, SKU description and expected quantity for each item to be counted.This manual count sheet is provided to the counter(s). 3.The counters count and record their counts to the count sheet.If there is a discrepancy,it is noted, and a manager is called to verify the count. 4.If the discrepancy is confirmed and determined to be material,the manager will initiate research by reviewing all transactions that have impacted the item in question from the time of its last count (daily or weekly). SECTION 1 Daily Operations BUSINESS PLAN 1.6 Inventory Reconciliation (continued) 5.Upon completion of the investigation,the manager will perform the following: •Adjust the book stock (system)quantity to match the physical count •Record the reason discovered for the discrepancy into the inventory management system. •In concert with the General Manager make any operational or personnel adjustments deemed appropriate. Weekly Physical Inventory The company shall conduct full physical inventory of all SKU’s weekly.This is a “blind”count in which the expected quantity of a given item is not provided to the counter on the count sheet.This physical count result is reconciled to both the current book stock and the previous week’s reconciled count using the following calculation example: Reconciled Count (Previous week)100 Product Received (+)10 Product Sales (-)20 Defects,Damaged, Destroyed (-)2 Cycle CountAdjustment (+or -)+1 Expected Count 89 Physical Count 88 Variance -1 In this example the weekly reconciliation revealed a negative variance of one piece. The State requirement is full inventory reconciliation every two weeks plus the expectation that the State will perform spot audits of the process for compliance.We shall execute the reconciliation process weekly with the ability to provide clear and accurate inventory audit trail documentation for any interested party at any time and in real time. 1.All inventory activity must be “frozen”in both the system and physically.Inventory transactions may not occur while cycle counting is conducted.Therefore,the counting process is conducted prior to opening or after close of business. 2.A “Physical Count Sheet”is created listing the SKU’s,SKU’s description and physical location to be counted with a blank line for entry of the item counted making the count “blind”.This manual count sheet is provided to the counter(s). 3.The counters are sent to a predetermined location with the count sheet in place and record their counts to the count sheet.The count sheet remains in its original location. 4.Upon completion of the count for all inventory locations the manager in charge of the weekly inventory shall collect and collate all the completed count sheets. 5.The item counts for each location are reconciled with the inventory system counts for the same location. 6.If a material discrepancy is discovered through this stage of reconciliation,the manager will initiate “blind”recount to confirm the original count.Based upon that result the count is either recorded or the manger becomes the third counter to obtain a correct count. SECTION 1 Daily Operations BUSINESS PLAN 1.6 Inventory Reconciliation (continued) Variance Management The process of counting consists of the following steps: Weekly Physical Inventory 1.Upon completion and recording of the entire physical count the manager of the inventory shall create a physical count and variance report of all discrepancies. 2.The physical count and variance report shall serve as the basis for further reconciliation steps.If the discrepancy is determined to be material,the inventory manager will initiate research by reviewing all transactions that have impacted the item in question from the time of the previous week’s inventory. 3.The physical count and variance report shall also include the inventory transactions (quantity and type)cited previously in the calculation example and the financial extrapolation of piece count results and variances. Any discrepancy or combination of discrepancies must rise to a threshold of materiality before investigative work is performed.In short,the company will not expend resources on the loss of a single item.However,we would investigate the loss of 20 items or a single item of . Variance Management SECTION 1 Daily Operations BUSINESS PLAN 1.6 Inventory Reconciliation (continued) 4.From the physical count and variance report the following actions shall be derived: •Adjustments to the book stock (system)quantity to match the physical count •A “roll-up”summary report of company of inventory variance expressed in the following views: i.Gross Piece Variance ii.Net Piece Variance iii.Gross Financial Variance iv.Net Financial Variance v.Value of FinancialAdjustments made •The “roll-up”summary and the physical count and variance report shall be kept in hard copy form for a rolling one-year period to facilitate audit by any interested party. 5.In addition to the manual records of weekly inventory reconciliation,the inventory system retains an audit trial of all transactions (including adjustments) and a financial record of reconciled inventory value for company financial reporting as well as outside audit by any interested party. California regulations include the technical threshold entitled, “Significant Discrepancy in Inventory”(SDI).This means a difference in actual inventory compared to records pertaining to inventory of: •At least ,or; •2%of the average monthly sale of the license, whichever is less. Our internal inventory management and reconciliation procedures make an SDI exceptionally unlikely.In the event an SDI does occur,please refer to the Critical Official Notifications. Significant Discrepancy in Inventory Note: Materiality Inventory Access All regulated products on HerbNJoy property will be protected behind multiple layers of security. Access to cannabis products for sale to the customers will be restricted to authorized personnel designated by HerbNJoy management.Employee badges will be used to manage which personnel are allowed into the restricted areas through programmed access levels within the electronic access control software. Selling Floor •All cannabis selling inventory stocked in locked drawers on the selling floor •Inventory drawers on the selling floor are discreet and locked at all times • Accessible only by authorized and audited personnel •Cycle counts are performed to the “drawer”level on the selling floor daily System Audits •Targeted items traced through all system transactions and matched to physical movement/activity (item,date,time,person,transaction type)to verify system and staff integrity (one item per week) Inventory Control System HerbNJoy utilizes Treez as its inventory control platform. This software tracks all products from the time they enter our inventory and integrates in “real time” with METRC, the State of California Track -and-Trace system. This solution is cloud-based (hosted) and provides real-time intelligence and analytics as well as historical data for internal and external audit purposes. Physical Inventory •A full physical “blind wall to wall”inventory is taken weekly and annually in all our stores.While several employees will be involved in this process,the General Manager willoverseetheeffort.The audit will be tracked using the POS/Inventory software “Treez”. •Management approval and documentation on all inventory adjustments •Cycle counts performed daily Waste Security and Inventory •See Unsaleable/Waste Handling in inventory Section of our SOP’s •The process is covered by a dedicated security camera •Waste is processed in a 50:1 clean soil/cannabis waste ratio SECTION 1 Daily Operations BUSINESS PLAN 1.6 Inventory Reconciliation (continued) The process of inventory reconciliation and the execution of physical inventories work together to ensure: •Inventory accuracy •Prevention of identified theft or other operational impropriety •Discovery of areas of improvement for operating procedures •Compliance with all state and local laws and regulations •A high-quality customer experience Samples of the manual inventory count sheets and reporting cited above are attached for review. The employee and environment specific tasks and responsibilities shall follow the processes and standards stated above.However,it is a best practice to observe the physical work environment upon completion and involve the management and key associates in crafting the SOP’s as this creates a level of engagement,ownership and tailored outcome that ensures success.This process shall occur in the 30 days prior to open and we welcome the observation and participation of the city at any time. Summary SECTION 1 Daily Operations BUSINESS PLAN 1.6 Inventory Reconciliation (continued) As of this writing, HerbNJoy ownership has four cannabis retail businesses operating under METRC in California, executing daily cycle counting procedures and weekly blind physical counts consistent with best inventory practices for Lot/batch-controlled inventory. To date, the company’s gross shrinkage variance is below 0.1% (one tenth of one percent). The company welcomes any auditing body at any time and would be pleased to demonstrate its inventory processes and compliance to all interested parties. Good inventory control is an integrated process with redundancies and behavioral accountability. HerbNJoy uses both. The company utilizes software (Treez) to track and record all transactional activity at the transaction level with date/time stamped audit trail including the individual and device used. We also back up the system with manual recording and documentation of all key exposure points including signatures and manager approval signatures. Our software system Treez, is integrated directly into METRC and reports at the transaction level which reduces error and manipulation. The software also facilitates access control of system functions and company processes by function type (an employee may only perform the inventory functions for which they are trained and approved). Generally, employees must maintain a clean and neat appearance and must refrain from wearing stained,wrinkled,frayed, or revealing clothing to the workplace.Employees are urged to use their discretion when determining what is appropriate to wear to work.Employees who wear inappropriate attire to work may be sent home to change their clothing. The company understands that in certain situations, the company may need to make exceptions to this policy based on an employee’s religion,disability,or other characteristic protected under federal, state, or local law.In accordance with all applicable laws,the company will make every effort to provide reasonable accommodation as necessary unless doing so would cause an undue hardship on the company.Questions regarding appropriate workplace attire should be directed to your supervisor or the General Manager. The company reserves the right to apply a uniform dress requirement at its discretion.Should the company choose to apply a specific uniform requirement,it shall provide such uniforms (or allowance equivalent) and provide for the cleaning and maintenance of said uniforms. SECTION 1 Daily Operations BUSINESS PLAN 1.6 Miscellaneous Dress Code The purpose of the company's personal appearance policy is to ensure a safe and sanitary workplace for all employees.Our company strives to maintain a professional working environment that promotes efficiency,positive employee morale and promotes a professional image.During business hours or when representing the company,employees are expected to use commonsense and good judgment in order to meet the goals of this policy. Overview Each employee shall be issued an employee badge with their photo and a unique identifier which includes their employee number.This badge must be worn and clearly visible at all times while the employee is on the premises.The employee shall not be allowed entry to the restricted access areas of the store or be allowed to work without their badge.If lost or stolen the employee must immediately report the loss to the manager on duty.Failure to do so will result in termination. Required Employee Badge General Employees should wear appropriate clothing,observe high standards of personal hygiene,and dress and groom themselves according to the requirements of their positions.While not intended to be an all-inclusive list,the examples below are considered appropriate workplace attire: •No-Slip Shoes •Hair Clean and Pulled back •Clean Appearance If management designates "casual days,"an employee's casual dress must still be clean,neat and project a professional image. SECTION 1 BUSINESS PLAN 1.6.1 Daily Operations. With as much detail as possible, the Business Plan should describe the day- to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in which you are applying for a permit. i.Describe customer check-in procedures. ii.Identify location and procedures for receiving deliveries during business hours. iii.Identify the name of the Point-of-sale system to be used and the number of Point-of- Sale locations. iv.The estimated number of customers to be served per hour/day. v.Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. vi.If proposed, describe delivery service procedures, number of vehicles and product security during transportation. BUSINESS PLAN 1.6.1 i. Describe customer check-in procedures To ensure that all individuals on-site are properly identified and accounted for, all customers are welcomed into a secured segregated foyer where the Intake Specialist electronically checks state-issued identification cards (or other acceptable forms of identification) to verify visitor age and identity. The welcome foyer contains two podium stations for ID confirmation and express ordering if the customer chooses (no product is in this area). Security personnel are stationed at the front of the store just outside the foyer during all business hours. Customer Check-in HerbNJoy’s verification protocol ensures that all individuals granted access to the retail area are at least 21 years old with valid proof of identification or are at least 18 years old with valid proof of identification and a valid physician’s recommendation for cannabis for themselves or for an individual for whom he or she is a primary caregiver. For medical cannabis patients and primary caregivers, HerbNJoy’s protocol requires that medical status and age be verified immediately upon entry. Medical patients must present a valid physician’s recommendation and a California government-issued photo identification (or other acceptable form of identification). HerbNJoy will verify the validity of both. For medical cannabis patients with primary caregivers, HerbNJoy requires that the patient accompany the primary caregiver on his or her initial visit. Once the legitimacy of a primary caregiver status has been confirmed, a primary caregiver will be able to purchase cannabis goods on a patient’s behalf. Identification Verification SECTION 1 BUSINESS PLAN 1.6.1 i. Describe customer check-in procedures Within the foyer the customer service podiums are flanked by product menus and pricing projected onto both walls in real time and in high-definition.These menus are roughly 10ft by 10ft in size each.Behind the podiums is the electronically controlled access door to the store.The door may be opened at the podium or remotely by security personnel.The projected menu walls serve three functions: •Facilitate express ordering •Keep the staff in the foyer current on the menu in real time •Demonstrate to the customer that they are in for an awesome experience The customer service person(s) at the check-in podium performs the following functions: •Electronically checks state-issued identification cards (or other acceptable forms of identification)to verify visitor age and identity including CA medical cannabis card (if applicable) •Queues the customer in the POS system for assistance with their purchase •Takes the customer’s express order if customer chooses •Visitor information is retained in a log, which is accessible for security and regulatory compliance purposes. The Visitor Log will be retained for at least seven years. The customer service person shall collect as much personal data as the customer is willing to offer (i.e.address, phone,email).The company shall never pressure or require the customer to provide any personal data beyond that required by law. The customer is then allowed to pass through the podiums into the selling floor area of the store. Employee Steps Once in the retail area, supervised customers can discuss their medical or adult use requirements with HerbNJoy’s knowledgeable staff and peruse HerbNJoy’s cannabis goods selection in secure product displays. SECTION 1 BUSINESS PLAN 1.6.1 •ASN –Advance Shipment Notification •Mandatory appointments for receiving •Receiving appointment hours are 8:30 AM to 5 PM Monday through Saturday •State licensed carriers and distributors only •A segregated and secure indoor receiving facility •Internally certified receiving clerks (deeper background checks) •Two -man receiving rules plus manager approval •Use of Purchase Orders with reconciliation against receipts •Delivery employee/carrier sign-off on receipt discrepancies •Integrated system and manual redundancies •Receiving Clerk verifies “A”and “M”designations on all products •Receiving Clerk verifies goods are not expired •Receiving Clerk receives documentation that all edibles comply with state manufacturing laws •Receiving Clerk receives documentation that all products have state testing results •Receiving Clerk verifies goods are packaged as they will be sold at final sale •Before allowing the distributor to bring the shipment into a HerbNJoy facility, management ensures that the surveillance cameras monitoring the receiving areas are functioning and unobstructed Overview Receipt of inventory/products for sale to adult use and medical cannabis consumers shall be executed through the designated man door at the rear of the facility (as marked on the premise diagram). Receiving functions may occur during daylight hours only and require an appointment to ensure all protocols are followed. HerbNJoy’s receiving procedures exceed state regulations and utilize industry best practices including the following: ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 1.All carriers/distributors must schedule an appointment to deliver a minimum of 24 hours prior to delivery.At the time a delivery appointment is requested,the carrier must provide our purchase order number and an electronic copy of the distributor COA/bill of lading and an electronic copy of the vendor/distributor’s shipping manifest when the cannabis goods for each shipment to be delivered.Shipments may not be received without these documents and a valid company purchase order containing the following information: a.Name and type of the cannabis goods b.UID of the cannabis goods c.Quantity of the cannabis goods by count d.Wholesale cost of the cannabis goods e.Name,license number, and premises address of the originating licensee f.Name, license number, and address of the transporting distributor g.HerbNJoy’s name,license number and address h.Date and time of departure from the distributor’s premises i.Arrival date and estimated time of arrival at HerbNJoy’s premises j.Driver license number of the distributor’s employee transporting the cannabis goods k.The make, model, and license plate number of the transport vehicle Process Steps ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 2.All appointments shall be recorded on the “Receiving Appointment Log”(sample provided). The log shall include:Purchase Order Number(s),Vendor(s)License Number(s), Carrier License Number,Date and Time of appointment,Numbers of Cartons and Delivery Employee name. 3.The carrier must arrive for their appointment within 30 minutes of their appointment window or the carrier must reschedule the appointment. 4.Only one appointment/delivery may be conducted at one time.The receiving dock must remain locked and secured while the receiving process is executed. 5.The transporting distributor shall check in with security upon arrival and present a printed copy of the corresponding COA from a licensed testing laboratory for the cannabis goods received.HerbNJoy will not accept the shipment unless it is accompanied by a printed copy of the COA. 6.The security person shall call the manager on duty to confirm the appointment and paperwork (including COA and ASN compliance). 7.The receiving Manager verifies that the COA received from the distributor is the COA that corresponds to the goods. a. Identical to the corresponding COA recorded in Track -and-Trace b.Is less than 12 months old c.Confirms that the cannabis goods are labeled with the batch number that matches the batch number on the corresponding COA and that the label on the cannabis goods is consistent with the COA regarding cannabinoid content and contaminants required to be listed by law 8.Upon verification,the security person shall direct the carrier to the receiving dock at the rear of the facility.Company personnel shall preview the carrier via security camera and if all is in order the receiving personnel shall open the dock door and the carrier shall drive into the receiving dock.The receiving personnel shall then close and lock the dock door to secure the delivery (Note:the manager is responsible to ensure the vault doors are secure prior to accepting a carrier into the receiving dock). 9.The Delivery Employee for the carrier is responsible to unload and segregate the shipment by purchase order to a designated receiving work area. Process Steps ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 10.Receiving personnel shall re-inspect the shipment for the following: a.Identical to the corresponding COA recorded in Track -and-Trace b.Is less than 12 months old c.Confirms that the cannabis goods are labeled with the batch number that matches the batch number on the corresponding COA and that the label on the cannabis goods is consistent with the COA regarding cannabinoid content and contaminants required to be listed by law d.State packaging compliance e.Track-and-Trace registration and labeling compliance f.Vendor information is in order and matches the ASN g.Expired product h.“A”and “M”classification markings on the products Process Steps ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 11.COA Verification -management confirms that the COA contains, at a minimum,the following information: a.The term “Regulatory Compliance Testing”in at least 14-point font in the upper-right corner of each page of the COA,with no text or images appearing above the term on any page of the COA b.Laboratory’s name, premises address, and license number c.Distributor’s name, premises address, and license number d.Cultivator’s or manufacturer’s name, premises address, and license number e.Batch number of the batch from which the sample was obtained f.Sample identifying information,matrix type and unique sample identifiers g.Sample history,including the date collected,date received by the laboratory,and date(s) of sample analyses and testing results h.A picture of the sample of cannabis goods i.For dried flower samples,the total weight of the batch,in grams or pounds,and the total weight of the representative sample in grams j.For cannabis product or pre-roll samples,the total unit count of both the representative sample and the total batch size k.Measured density of the cannabis goods l.Analytical methods, analytical instrumentation used,and corresponding Limited of Detection (LOD)and Limits of Quantitation (LOQ) m.An attestation on the COA from the laboratory supervisory or management employee that all required LQC samples were performed and met the acceptance criteria n.Anything detected during the analyses of the sample that is unknown,unidentified, or injurious to human health if consumed,if any Should any COA/Purchase order fail this inspection the shipment for that purchase order shall be rejected and the responsibility of the carrier and distributor/vendor.(FOB point is receipt –until received,the shipment ownership remains with the vendor/distributor). Process Steps ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 16.Discrepancies between the purchase order and the packing list/invoice require verification, signature on the vendor paperwork and notation on the receipt in the inventory system by the manager on duty. The manager on duty is required to notify the vendor or distributor of the discrepancy within four hours of receipt. 17.The receiver shall scan the packing list/invoice and place the original in a hard file by vendor and place the scanned copy in the designated shared digital folder for review and payment. 12.Receiving personnel shall verify the shipment against the Bill of Lading and COA.Should a discrepancy arise,the receiver shall ask the Delivery Employee to verify the discrepancy and note it on the Bill of Lading/COA with both receiver and Delivery Employee signatures.If the shipment is short, the notation of the Bill of Lading/COA is sufficient.If the shipment is over or contains substitutions not referenced on the company’s purchase order,the Bill of Lading/COA notation shall by accompanied by a refusal of the goods recorded in the discrepancy. 13.When the reconciliation of the Bill of Lading is complete,the receiver shall insert the signed bill into an automated date/time stamp device that shall stamp the Bill of Lading/COA with the correct date and time of the receipt.The inventory system also provides an internal date/time record of all transactions it processes.In this way,state compliance is fulfilled via redundant systems. 14.Upon completion and reconciliation of the Bill of Lading/COA and the unloading of the shipment,the receiver may release the Delivery Employee by opening the dock door and subsequently closing and relocking it directly after the carrier’s departure.(Please reference individual section covering COD shipments). 15.The receivers shall check in (receive)the shipment by purchase order and SKU.Each purchase order shipment shall be checked against the company purchase order (what the company ordered)and the vendor packing slip/invoice (what the vendor said they shipped). This is both a system driven process utilizing barcodes and scanners to verify against the company’s inventory systems and a manual process as notes are recorded by the receiver on the physical packing list/invoice. Process Steps ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6 18.Upon completion of the receiving process, the put away process may commence. •The manager on duty verifies the vault door on the retail side of the vault is secure •The manager on duty opens the receiving side of the vault to allow the stock to be placed into active inventory •The receivers move the received shipment into their designated stack locations within the vault Note:The movement of received product into the vault occurs after receipt and departure of the Delivery Employee to minimize exposure to theft and/or collusion to a maximum risk of the received shipment. The receivers record the receipt of shipment on the “Receiving Appointment Log” including their signatures and any discrepancies with the shipment. They shall also close the receipt in the inventory system which shall transfer the inventory into available stock. Process Steps COD Receipts 1.COD shipments must be stated at the time a receiving appointment is requested.The carrier must provide written authorization from the distributor or vendor prior to company acceptance of any COD shipment. 2.Standard receiving processes as detailed above with the following exceptions: •The Delivery Employee must remain until the entire receiving process is completed including reconciliation to the purchase order, quantity, and SKU level. •The Delivery Employee must sign for any discrepancies that are noted and agreed upon with the receiver.The amount due on the COD shall be adjusted to reflect only those items received by the company at the item costs listed in the purchase order. •The manager on duty is authorized to pay only the amount indicated on the invoice or an agreed upon reduced amount based upon noted discrepancies.The manager is not authorized to make payment above that indicated on the invoice.This includes any outstanding balances indicated or requested by the vendor or distributor.This must be managed through regular accounting channels. •Payment shall be prepared and exchanged in the manager’s office with the Delivery Employee, manager and a company witness present. • A receipt signed and dated by all parties present shall be executed and attached to the invoice and scanned to the designated digital file. ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6 3.The Delivery Employee may then depart as indicated in the standard receiving process COD Receipts •Receiving Appointment Log –This serves to manage the appointment process and manually document the completion of the receiving process steps as they are executed (sample provided). •Purchase Orders –All company product purchases require a system generated purchase order.This facilitates the control of inventory flow,spending,usage forecasting and shipment reconciliation. •Inventory Management System –This is software that manages all inventory transactions and movement at the SKU level including purchase orders,receipts,track-and-trace,lot control, and stock adjustment for expiration or other reasons.It is this software that will serve as the baseline book stack value against which we will reconcile our physical inventory and cycle counts.It provides a date/time audit trail for all transactions types and the user creating the transaction. •Bill of Lading (now termed the COA or Certificate of Authenticity)–This is the transit document prepared by the carrier to record the shipment at the level to which they took possession and are responsible (i.e.cartons, container). •FOB (Freight on Board)–The term used to identify which party owns the product in the shipment and when possession changes hands.Most common is destination which means the vendor owns the shipment/product and responsibility for that shipment/product until acknowledged receipt by the receiving company. •Packing List –This is the document sent by the vendor/distributor stating what they shipped referencing the purchase order that is being fulfilled and the quantities shipped to the SKU level. Best practice operators do not issue payment from a packing list or statement only from invoice. •Invoice –Noted here only to state that some vendors choose to use their invoice as a packing list.Invoices are distinguishable because they contain pricing and packing lists do not. •ASN (Advance Shipment Notification)–This is a receiving best practice and when applied to the cannabis industry it provides an additional layer of security and control as well as improving the efficiency of receiving operations. Documents & Systems ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 ii. Identify location and procedures for receiving deliveries during business hours. The employee and environment specific tasks and responsibilities shall follow the processes and standards stated above. However, it is a best practice to observe the physical work environment upon completion and involve the management and key associates in crafting the SOP’s as this creates a level of engagement, ownership and tailored outcome that ensures success. This process shall occur in the 30 days prior to open and we welcome the observation and participation of the city at any time. Standards and Requirements •All deliveries require an appointment •Receiving must take place in the secure indoor receiving dock segregated from other operations •Delivery Employee must unload and segregate shipment by purchase order •Two certified company employees are required to receive shipments •The vault must remain closed during the receiving process •Discrepancies against the Bill of Lading/COA must be noted and signed by the receiver and Delivery Employee •Discrepancies against the Packing list/invoice must be noted and signed by the receiver and the manager on duty •Overages,substitutions,expired product,damages,packaging violations or improperly registered products against track-and-trace standards will not be accepted •Manager must notify the vendor of discrepancies within four hours of delivery •Upon reconciliation of the Bill of Lading/COA,the signed Bill must be time and date/stamped via the automated time/date stamp machine on the receiving dock •COD shipments must be pre-authorized,and payment is strictly limited to the shipment being received Standard Operating Procedures SECTION 1 BUSINESS PLAN 1.6 Shipment Quality Control Management inspects the shipment to ensure that the cannabis goods have not been damaged during transportation, have not exceeded their provided best-by, sell- by, or expiration date, are packaged and labeled for final retail sale, have been tested by a licensed testing laboratory, and are labeled with the batch number that matches the batch number on the corresponding certificate of analysis. Management rejects any portion of the shipment that is damaged, non-compliant with labeling requirements, or expired. For details regarding HerbNJoy’s procedures for ensuring cannabis goods have been tested by a licensed testing laboratory, see the State Testing Requirements section of this application. ii. Identify location and procedures for receiving deliveries during business hours. SECTION 1 BUSINESS PLAN 1.6.1 iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations. The company has selected “Treez” as its POS software solution. “Treez” is METRC compliant and integrated via API. “Treez” will automate our compliance reporting as well as provide the transaction level audit trail we require for operating. This software is currently used by more than 1,000 cannabis retailers where METRC is the state approved Track and Trace system including all of HerbNJoy’s existing operations. It is a cloud-based system thereby supporting remote devices for delivery transactions. Point of Sale System (POS) Point-of-Sale locations HerbNJoy operates its POS system via tablet functionality. This creates a superior customer experience within our stores. The tablets are assigned to each sales consultant prior to the start of each shift. The tablet/sales consultant tandem are then assigned to a specific cash drawer located in a fixed location within the selling floor. The exception is the intake tablet(s) which are fixed in position in the entry foyer of the store and do not have a cash drawer assignment. The cash drawers are physically positioned within retail islands similar to Fine Jewelry stores. This approach creates two physical barriers of security between the public and the staff whenever a transaction is conducted. For our Fresno store, HerbNJoy is proposing eight cash drawer/POS stations with built in capacity to expand to a maximum of sixteen stations. These stations and the islands in which they are located are marked on our proposed premise diagram. Sixteen POS stations provide enough customer throughput capacity to process over 1,400 customers daily without queuing. SECTION 1 BUSINESS PLAN 1.6.1 iv. The estimated number of customers to be served per hour/day. Overview HerbNJoy designs its stores and processes specifically to provide a superior customer experience. This experience includes the prevention of customer queuing. To accomplish this, we calculate anticipated customer flow based upon our financial plan projections for both average daily sales volume and traffic but more importantly peak volume and traffic. SECTION 1 BUSINESS PLAN 1.6.1 v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. HerbNJoy tailors its financial projections and inventory assortment to be both area and city specific. We have done so for our Fresno proposal. We have forecasted category sales to roughly breakout as follows: 64% Flower & Pre-rolled Flower 15% Vaporizing Products 9% Edibles & Beverages 6% Concentrates (dabs) 4% Health & Wellness (tinctures, topicals) 2% Non-Cannabis (hats, t-shirts, bags) Product Categories The products that we select for our stores are chosen for quality and consistency. Not only must they pass rigorous state required testing but HerbNJoy’s internal process which includes customer feedback and quality inspection. Before we ask the customer to trust us to educate them –we have to trust the products we sell. Quality Control All cannabis goods sold by HerbNJoy will be cultivated, manufactured, and transported by state licensed facilities that maintain operations in full compliance with state and local regulations, including regulatory compliance testing regulations. HerbNJoy will implement the following plans and procedures to ensure that all cannabis SECTION 1 goods it offers for retail sale have been tested and labeled in accordance with the requirements of the State of California. At HerbNJoy we specialize in cannabis retail, therefore we are not vertically integrated. This ensures integrity in our supply chain as we cannot hide poor quality or shortcut compliance as too often happens in vertical supply chains. BUSINESS PLAN 1.6.1 v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. Sample Menu Pages (existing operations) SECTION 1 BUSINESS PLAN 1.6.1 v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. Quality Control Upon arrival of a shipment of cannabis goods at HerbNJoy’s premises, the transporting distributor provides HerbNJoy with a printed copy of the corresponding Certificate of Analysis (“COA”) from a licensed testing laboratory for the cannabis goods received. HerbNJoy will not accept the shipment unless it is accompanied by a printed copy of the COA indicating the cannabis goods are in compliance with testing standards and have passed all required testing. HerbNJoy staff verifies that the COA: (i) corresponds to the goods being received; (ii) is identical to the corresponding COA recorded in Track-and-Trace; and (iii) is less than 12 months old. HerbNJoy staff then confirms that the cannabis goods are labeled with the batch number that matches the batch number on the corresponding COA and that the label on the cannabis goods is consistent with the COA regarding cannabinoid content and contaminants required to be listed by law. Certificate of Analysis HerbNJoy staff utilizes checklists to confirm that the COA conforms with state and local regulations and contains, at a minimum, the following information: (i) the term “Regulatory Compliance Testing” in at least 14-point font in the upper-right corner of each page of the COA, with no text or images appearing above the term on any page of the COA; (ii) laboratory’s name, premises address, and license number; (iii) distributor’s name, premises address, and license number; (iv) cultivator or manufacturer’s name, premises address, and license number; (v) batch number of the batch from which the sample was obtained; (vi) sample identifying information, including matrix type and unique sample identifiers; (vii) sample history, including the date collected, the date received by the laboratory, and the date(s) of sample analyses and corresponding testing results; (viii) a picture of the sample of cannabis goods; (ix) for dried flower samples, the total weight of the batch, in grams or pounds, and the total weight of the representative sample in grams; (x) for cannabis product or pre-roll samples, the total unit count of both the representative sample and the total batch size; (xi) measured density of the cannabis goods; (xii) analytical methods, analytical instrumentation used, and corresponding Limits of Detection (LOD) and Limits of Quantitation (LOQ); (xiii) an attestation on the COA from the laboratory supervisory or management employee that all required LQC samples were performed and met the acceptance criteria; and (xiv) analytes detected during the analyses of the sample that are unknown, unidentified, or injurious to human health if consumed, if any. If management discovers any issue with the COA, the issue is addressed with the transporting distributor, and the shipment is rejected if the issue cannot be resolved. HerbNJoy will keep all COAs on file for at least seven years. Certificate of Analysis Compliance SECTION 1 BUSINESS PLAN 1.6.1 v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. HerbNJoy emphasizes supporting local, small-scale suppliers wherever possible. We aim to source product from suppliers “as locally as possible” given the current legal landscape. We work with 36 North / Greenbrier Holdings who is located in Parlier, CA in Fresno County. We work with Cali Kosher out of Patterson, CA in Stanislaus County. HerbNJoy also works with many suppliers in Sacramento County including Flow Kana Distro, Phoenix Logistics Distro, Secure Hauling Distro and WCC Management. HerbNJoy commits to preferential support of local cannabis providers (licensed and of good reputation). This includes devoting guaranteed shelf space, featured marketing in harmony with the HerbNJoy brand and access to company support resources to assist in their success. HerbNJoy will also use our retail platform to encourage customers to “Buy Local” in support of Fresno County producers. As more legal and compliant vendors within Fresno become operational, HerbNJoy will seek to onboard them and place their products on store shelves immediately. Local Products Proven Brands SECTION 1 SECTION 1 BUSINESS PLAN 1.6.1 The company’s delivery of both “adult use”and “medicinal” cannabis products to the City of Fresno shall utilize a common set of operating processes,systems,and resources.All general aspects of delivery operations are described below except inventory control which is described in the specific section “inventory control”section of this document.All delivery controls,processes and systems are “METRC”compliant and represent best practices from other industries applied to cannabis.The delivery vehicle loading area is under 24-hour video surveillance.The company initially plans to equip and operate four hybrid delivery vehicles as described in the following procedures: The following is a listing of those processes and best practices covered in this section: •Delivery Area and Operating Hours •Delivery Order Placement (Including New Customers) •Order Fulfillment and Staging •Dispatch and Routing •Route Execution •Security and Safety •Record Keeping •Vehicles and Safety (Delivery Employee Requirements) •Systems and Tools Delivery Overview Special Note:METRC and Track-and-Trace Delivery transactions shall be reported to CA “METRC” track-and-trace software in real time using the company’s POS system.Currently “METRC”does not support the manifest process for consumer delivery.However,our company software shall generate transaction documents and formats consistent with “METRC”requirements for distribution transport and delivery.This will ensure that delivery records are both in compliance and provide a transparent audit trail should state or law enforcement require it. vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation SECTION 1 BUSINESS PLAN 1.6.1 In-Vehicle Lockbox A compartmented metal box will be secured to the frame of the delivery vehicle.The lockbox is designed to limit the Delivery Employee’s access to cash and secure product en route with the goal of Delivery Employee safety and theft deterrence.It contains the following features: •Locked storage compartment for orders to be delivered with Delivery Employee access to this compartment. •Locked compartment for collected payments with restricted access to managers only. •A drop slot to the collected payment compartment designed for the deposit of payments and payment documents without providing retrieval access to the Delivery Employee. Delivery Area and Operating Hours Delivery Area The company delivery area shall include the city of Fresno and a 50-mile radius from the retail store to all areas except those expressly prohibiting the delivery of cannabis.The company may exclude delivery to areas it deems unsafe based upon gained experience.The company shall advise the city and law enforcement if it feels a delivery area has become unsafe. Delivery Hours The company shall schedule its initial daily delivery routes to begin at 8:30 AM with the final order delivered prior to 5 PM. Orders will be accepted during non-delivery hours for delivery during scheduled delivery operating hours (i.e.an overnight on- line order may be submitted, and it shall be scheduled for delivery on the 8:30 AM route.)No delivery route may be dispatched later than 1 hour prior to closing Should consumer demand prove to be material for an 8:00 AM route,the company shall adjust accordingly. vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation BUSINESS PLAN 1.6.1 Digitally Tracking the Delivery Request Receipt The State of California requires a Delivery Request Receipt be prepared for each delivery of cannabis goods.This will be done in the Treez POS platform.This will capture and record all fields of data,time stamp the appropriate sections, collect the signature from the customer digitally,and automatically email the customer their receipt with all required information.This simultaneously generates delivery vehicle manifests. Delivery Order Placement (Including New Customers) Overview A customer may place an order for delivery by telephone or digitally using the company’s mobile app,website or through a third-party provider.Digital orders shall be accepted only upon completion of customer registration and identification requirements prior to their initial delivery.Delivery orders may only be accepted for a physical address. Phone Orders Telephone orders shall be accepted,entered and confirmed through an in-house customer service associate.The order is entered into the company’s “Point of Sale”system (POS) manually,customer identification confirmed,and delivery ETA established to complete the telephone order placement process. In-House Digital Orders Delivery orders placed digitally through the company’s platforms (mobile app or website)are accepted directly into the company’s POS system providing an alert to the delivery customer service associate to confirm and review as well as queuing the order for routing. Third Party Digital Orders Delivery orders placed through third party digital platforms such as “Weedmaps”shall be manually transcribed from the third-party platform into the company POS.Third party orders require the same company verification and registration as direct orders prior to acceptance. Customers requesting delivery service for the first time must provide the company with the following information and documentation prior to placing and executing a delivery order: •Government-issued Photo ID (scanned and kept on file digitally) •Full Name •Physical Address •Contact Phone Number •E-mail (optional) •CA Cannabis Medical Card –if medical patient or caregiver (scanned and kept on file digitally) vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation New Delivery Customers SECTION 1 BUSINESS PLAN 1.6.1 Order Fulfillment Order Preparation Upon completion of order entry to the POS system (manual or integrated)the order is designated as a delivery order. Note:Prior to accepting payment,the POS system is set to alert the sales associate of potential purchases that exceed the daily personal limits of 28.5 grams of flowers,8 grams of concentrate for adult use or 8 ounces of flower for medical.HerbNJoy tracks and records all sales of cannabis goods, and all staff are trained to comply with the regulations regarding daily limits.HerbNJoy’s POS system,Treez,automatically prohibits sales to customers beyond daily sales limits. Once a customer’s daily purchasing limit has been met,the software will not allow that customer to “check out”or make any further purchases. This initiates the following steps: •The order is confirmed with the customer via voice or text and a delivery eta is provided. •Payment Method is confirmed. •A “Pick Ticket”is generated, and order fulfillment is initiated. •The order is filled from available inventory within delivery stock first and the greater store if needed.The MOD visually inspects each good,ensuring that:(i)the good is not expired; (ii)the packaging is intact and unopened;and (iii)the labeling is intact and legible.MOD’s ensure that the appropriate employees enter data regarding the cannabis goods ordered into the POS system and Track -and-Trace .The POS system prints a Delivery Inventory record including the following information for each cannabis good:(i)type of good;(ii) brand;retail value;UID;and weight or volume. •All cannabis goods are placed into opaque exit packaging. •All product expiration dates are checked on items being “picked.” •A flyer is inserted into each delivery container that spells out the “Prohibited Conduct Involving Marijuana and Marijuana Products”contained in Health and Safety Code Section 11362.3.This will follow the standard format and content developed by the City for such flyers. •Order is transmitted to be routed utilizing “Onfleet”software. •Delivery routes are structured to be executed in under 1 hour or less than 5 deliveries whichever is less. At the time the fulfillment process is complete,“Filled”orders are placed in a delivery staging area with the corresponding “Pick Ticket”containing all the required order information: Item Listing and Pricing Total Payment Due Payment Method Order Notes Customer Name &Number Delivery Address and Contact Phone Number Order Number vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation SECTION 1 BUSINESS PLAN 1.6.1 Orders are batched and routed by designated delivery staff.At this time,a METRC manifest is created for each delivery. •Prior to loading the delivery vehicle, management verifies that the Delivery Inventory Ledger contains less than of cannabis goods. •Delivery Employee loads are configured not to exceed in retail value and routes are scheduled not to exceed two hours in total trip time. •Delivery Employee confirms accuracy of all orders and routes prior to leaving the store to execute that route. •Delivery Employee loads routed orders into the vehicle’s lockbox. •Delivery Employee logs his/her mobile device into “Onfleet” software and accepts the assigned route. . Dispatch and Routing Delivery Execution Upon arrival of the Delivery Employee at a routed delivery stop the following process shall be executed: •While making deliveries of cannabis goods,a retailer’s delivery employee shall only travel from the retailer’s licensed premises to the delivery address;from one delivery address to another delivery address;or from a delivery address back to the retailer’s licensed premise. •Deliveries may only go to physical addresses within the state of California,and cannot go to publicly owned land, public agency buildings,or a tribal location. •Park safely and check surroundings prior to exiting the vehicle. •Remove the single order that corresponds with the stop from the vehicle lockbox. •Verify correctness and relock the lockbox. •Open the correct order in the mobile POS device. •Exit and lock the vehicle. •Proceed to the customer’s door with both the order and POS mobile device. •The Delivery Employee attempts to contact the customer by knocking on the door or ringing the doorbell.If there is no response after a reasonable time,the Delivery Employee returns to the delivery vehicle and contacts the customer by telephone. •If there is no response within 10 minutes,the Delivery Employee returns to HerbNJoy’s facility. •Meet and greet the customer,verify ID via scan,verify correctness of the order with the customer. •Collect payment and complete the order in the POS system. •Collect customer signatures on payment, order and METRC manifest document. •Provide receipt to the customer. vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation SECTION 1 BUSINESS PLAN 1.6.1 The Delivery Employee shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency. If, when arriving at the location, the Delivery Employee discovers the address is on publicly owned land, or is on land or in a building leased by a public agency, the Delivery Employee will cancel the delivery order and notify management. Delivery Completion Order Completion Upon returning to the vehicle,the Delivery Employee performs the following functions: •Drop payment and payment documents into the payment slot on the lockbox. •Indicate completion of the delivery in the “Onfleet”software. •Notify store of delivery completion. Delivery Employee proceeds to the next routed delivery stop indicated by the software. vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation End of Shift At the completion of a Delivery Employee’s shift,she/he is required to reconcile all their deliveries,routes and payments for that shift.This is accomplished by comparing the manual documents,cash and card payments to those expected by the POS system and the routing software.This includes completing an “end of shift” report recording any discrepancies and reviewed by the shift manager.The Delivery Employee also performs a physical safety inspection of his/her assigned delivery vehicle. Upon completion of all routed stops,the Delivery Employee returns directly to the store. •Delivery Employee notifies security of return and security opens warehouse door to allow entry of the delivery vehicle. •The POS system and OnFleet routing software create redundant records of the delivery transaction including time,date, driver, order details, customer details and process steps followed. •The Delivery Employee parks in the designated secured indoor space and notifies the shift manager of the need to “check in”. •Shift manager pulls all payments and payment documents (including METRC manifest) from the vehicle lockbox for secured storage until end of the Delivery Employee’s delivery shift. •The Delivery Employee awaits the next staged route and assignment then subsequently repeats the delivery process. •No delivery route may be dispatched later than 1 hour prior to closing. Route Completion SECTION 1 BUSINESS PLAN 1.6.1 Miscellaneous Delivery Software The company shall employ a routing software solution to assist delivery operations in the following aspects: •Efficient routing of deliveries •Customer notifications in real time •GPS tracking of Delivery Employee activity in real time (including time on stops) •Documentation of delivery transactions and performance metrics •Law enforcement portal to activity in real time Payments Customers shall be asked in advance for the form of payment they intend to use for their order. Cash payments shall be approved in advance to provide the Delivery Employee with the minimum level of change bank required to execute the route. At no time shall the Delivery Employee’s change bank exceed the standard or . Documents Delivery Employees shall carry a copy of the following documents in the delivery vehicle at all times: •Vehicle insurance •Business liability insurance •Valid Personal Delivery Employee’s license (CDL) •Current Vehicle registration •METRC manifests for the current route •State and local business permits •Emergency contact list •Current completed vehicle safety checklist GPS Tracking The company shall utilize three concurrent methods of GPS tracking to support customer service, safety and security throughout delivery operations: •The Vehicle –A nonremovable GPS device shall be affixed to each delivery vehicle. This may be accessed via a web address by authorized personnel only. •The mobile POS device –This device is GPS enabled and trackable by both the device and the “Onfleet” routing software application running on the device. This will also serve as a dedicated cell phone line for communication between Delivery Employee and HerbNJoy. •The Lockbox –A GPS locator is affixed to the secured payment department of the lockbox. These redundant tracking systems ensure visibility and tracking in the case of a hardware failure or should one element become separated from the others. vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation SECTION 1 BUSINESS PLAN 1.6.1 The company plans to lease and place into service three delivery vehicles initially.This delivery fleet has capacity to serve 150%of initial delivery projections (projections and delivery schedule attached). The company shall purchase the delivery vehicles locally.It is the company’s intent to utilize fuel efficient hybrid vehicles versus 100%electric vehicles to ensure the fewest failure points thereby maximizing safety and security. Note:No passengers or unauthorized personnel may accompany the Delivery Employee during the execution of her/his delivery route.Authorized personnel may include management, trainer, law enforcement, or regulatory personnel. Vehicle Maintenance &Safety Overview All company vehicles shall adhere to manufacturers recommended maintenance.Oil changes and tires may be performed by local providers.All other maintenance and repairs are to be performed by the local dealer. Prior to the Delivery Employee’s first route each day,a safety check must be performed, and a vehicle safety checklist completed and signed (checklist attached).Should any unsafe condition be discovered the shift manager shall be immediately notified and the vehicle pulled from service until the condition is cured. Vehicle inspection checklists must remain on file and available for review for a rolling 8-month period. Delivery Employee Qualifications •21 Years Old or Older •Company Employee •Insured (personally)- current •Clean Driving Record -current o DUI,Exhibition, Points o Pulled Quarterly Customer Data •Govt-issued Picture ID •Name •Address (physical) •Contact Phone •Scan /Digitally Hold ID •CA Medical Card Delivery Vehicles vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation SECTION 1 BUSINESS PLAN 1.7 BUSINESS PLAN 1.8 Fully describe the day-to-day operations if you are applying for a DISTRIBUTION permit: BUSINESS PLAN 1.9 BUSINESS PLAN 1.10 Fully describe the day-to-day operations if you are applying for a CULTIVATION permit: Fully describe the day-to-day operations if you are applying for a MANUFACTURING permit: Fully describe the day-to-day operations if you are applying for a TESTING permit: Fresno Erudite Ventures (HerbNJoy) is not applying for a Distribution permit. Fresno Erudite Ventures (HerbNJoy) is not applying for a Manufacturing permit. Fresno Erudite Ventures (HerbNJoy) is not applying for a Cultivation permit. Fresno Erudite Ventures (HerbNJoy) is not applying for a Testing permit. SECTION 1 SOCIAL POLICY & LOCAL ENTERPRISE PLAN SECTION 2 SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE For HerbNJoy and its owners being local is more than shares of ownership of a stock ledger. It includes partners that support HerbNJoy values and the greater goals of the community in its actions every day. That means that each decision we make as a Fresno business owner maximizes economic and social health of Fresno. This is a way of operating that we have executed in each city in which we do business. This approach is on display in our other operations where it earns us neighborhood trust, city respect and loyal customers. We believe the best advocates for our business are those that live in the community and we shall locally hire 100% of our Management Team and Staff positions (as we have done in all our current operations) estimated to be 38 non-exempt and 5 exempt employees. There is an abundance of great retail industry talent in Fresno and HerbNJoy intends to draw from that talent. Management & Staff In order to facilitate local hiring and utilization of local business, HerbNJoy will work with the Fresno Chamber of Commerce and the City of Fresno Economic Development Department to identify and register local businesses and local residents for job referrals. Overview As demonstrated in the diversity of our current company population (in Section2.2), HerbNJoy is committed to making the following underrepresented groups a focal point of our local hiring efforts: •Veterans •African Americans •Women of Color •Seniors •Homeless Transition Program (Details in Community Benefit Section) •Apprenticeship Program (in Section 2.2) As a minority-owned company, HerbNJoy appreciates that Fresno is a vibrant heterogeneous community made up of many disparate neighborhoods. Accordingly, the HerbNJoy ownership team is as diverse as any other that will come before the adjudication panel. Our company's inclusive culture is reflected in a leadership consisting of multiple individuals who are ethnic minorities, as well as women and seniors. The varied backgrounds of its leadership testify to an organizational philosophy of ensuring opportunities for all, providing assurance that HerbNJoy will be a beacon of social equity and cultural inclusion. These principles, shared by all members of the ownership team, are a perfect match for the City of Fresno’s values and identity. We believe the best advocates for our business are those that live in the community and we shall locally hire 100% of our Management Team and Staff positions (as we have done in all our current operations) estimated to be 38 non-exempt and 5 exempt employees. There is an abundance of great retail industry talent in Fresno and HerbNJoy intends to draw from that talent. Management & Staff Overview We feel that if we can provide our employees with support that advances their careers and improves their quality of life, we get great employees. Wages HerbNJoy has a starting hourly rate of and management compensation starts at r. HerbNJoy’s compensation philosophy is to ensure that its employees can live in the community in which they work. This means compensating employees fairly for the work they do. HerbNJoy has found that following this philosophy ensures an equitable work environment. SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. •PTO -7 days/year (paid if unused) •Vacation -1 week per year of service (max 4 weeks) •Paid medical, dental,vision •Volunteer match –every hour volunteered in the community is financially matched •Annual compensation increases (average 5%) •Tuition assistance •Childcare assistance and flexible parental time scheduling •Career path opportunities and guidance •Life management support Benefits (offered to all employees) The company provides an internal resource person to assist scheduling, advocacy and what we call life G&A SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.2 Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. HerbNJoy provides skills training that we (3rd party) certify to be transferable to other industries in the following areas: •Retail Management •Inventory Control •Receiving/Fulfilment/Shipping Training & Career Opportunities We customize a development plan and match the employee’s current skills and aspirations including tuition assistance. It is company policy to promote from within. Anticipated positions include: •Inventory/Compliance Specialist •Buyer •Retail Manager •Community Relations Officer •ResourceSupport Specialist HerbNJoy also offers its employees numerous opportunities for professional development in areas that overlap with our areas of expertise. HerbNJoy provides skills training programs in Retail Management, Inventory Control, and Receiving/Fulfillment/Shipping. These programs are 3rd party certified and are intended to both assist employees achieve career growth within the company and are transferrable to other industries. SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.3 Describe compensation to and opportunities for continuing education and employee training. $175,00 per year to underwrite local apprenticeships for minority students At HerbNJoy, this is not our first application; nor is it our first operating unit. When it comes to providing opportunity, training and support for those underrepresented in the communities we serve, HerbNJoy delivers on its stated commitments and it makes us a stronger company. The following is a breakdown of our staff, management and ownership in our current operations: General Managers (average annual salary exceeds •3 of 4 Women •2 Latinx •1 Native American •1 Asian Assistant Managers (average annual salary exceeds •4 of 7 Women •4 Latinx •1 African American •1 Asian Ownership •4 Women •2 Seniors •2 African American •2 Asian Company wide, 87% of HerbNJoy’s employees are non-white. However, having a racially and ethnically diverse workforce is just one way to create meaningful social change in a community. Under the direction of Shunna McFarland, we have several planned further initiatives that will be aided and energized by the presence of HerbNJoy. SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. Being Local For HerbNJoy and its owners being local is more than shares of ownership of a stock ledger. It involves including partners that support HerbNJoy values and the greater goals of the community in its actions every day. That means that each decision we make as a Fresno business owner maximizes economic and social health of Fresno. This is a way of operating that we have executed in each city in which we do business. This approach is on display in our other operations where it earns us neighborhood trust, city respect and loyal customers. The City of Fresno has a longstanding tradition of supporting local hires. The City Council recognized that cannabis can be beneficial to local Fresno residents and that the legalization of this burgeoning industry is in line with City’s economic development strategy. HerbNJoy will create high quality job opportunities for Fresno residents. The following is a list of HerbNJoy commitments to be local: We believe the best advocates for our business are those that live in the community and we shall locally hire 100% of our Management Team and Staff positions estimated to be 38 non- exempt and 5 exempt employees. There is an abundance of great retail industry talent in Fresno and HerbNJoy intends to draw from that talent. All of our positions are benefitted, and all employees receive PTO, paid vacation and a company match for every hour that they perform volunteer work in the community. We feel that if we can provide our employees with support that advances their careers and improves their quality of life, we get great employees. In order to facilitate local hiring and utilization of local business, HerbNJoy will work with the Fresno Chamber of Commerce and the City of Fresno Economic Development Department to identify and register local businesses and local residents for job referrals. SECTION 2 LABOR & LOCAL DIVERSITY 2 . 5 Sales Consultant –(to behired locally) Delivery Driver –(to behired locally) The Sales Consultant position’s primary responsibility is to educate, guide and advise the consumer regarding the most appropriate cannabis products to meet their expressed and unexpressed needs. The Sales Consultant shall be proficient in the company’s digital toolset and in-store technology to provide the consumer with an unparalleled store experience. The Sales Consultant must keep abreast of new cannabis products on the market as well as the latest industry trends through trade shows and research. This role must be proficient in processing customers' payments using the dispensary's Point of Sale (POS) system, Treez. A critical expectation of this role is to execute the company’s policies and procedures regarding security and regulatory compliance and consumer safety. Ensure that the store is clean and well-organized at all times, including checking inventory for correct packaging and labeling of cannabis products as required. Checking customers' identification documents to verify that they are of legal age. Customer Service –(to behired locally) The Customer Service Position serves as support for delivery operations and the sales floor. This position is responsible for dispatching drivers, organizing routes, accepting consumer phone calls into the store, managing the consumer interaction for both the delivery customer and the customers calling for inquiries and advice. This role carries the same obligation to compliance. A critical expectation of this role is to execute the company’s policies and procedures regarding security and regulatory compliance and consumer safety. The Delivery Driver at HerbNJoy is a company employee driving a company car. We believe this is the best way to provide an exceptional consumer experience. The driver position is responsible for executing the delivery of cannabis products in a safe, secure and expeditious manner. The driver is responsible for the integrity of the order, the proper exchange of payment and the customer experience at the door (with COVID-19 protocols). The driver is responsible for daily vehicle safety inspections, safe driving, and compliance with all state and local regulations. More detail for delivery driver responsibilities may be found in the delivery procedures cited in Section 1.6 of this RFP. Assistant Manager/Buyer –(to behired locally) This Assistant Manager position has responsibility for shift operations as part of the management team. However, the primary role for this position is selecting, analyzing and managing the purchasing of inventory. This position shall identify consumer demand through analytic tools, discover trends, manage inventory levels and turn, negotiate pricing and manage “open to buy”. This includes market research, competitor analysis, product evaluations and testing, monitoring purchase orders and creating reports for the management team. Describe the number of employees, title/position and their respected responsibilities. SECTION B LABOR & LOCAL DIVERSITY 2 . 5 General Manager –(to behired locally) In addition, the Assistant Manager is the designated Security Liaison from the management team. Their additional responsibilities include overseeing that security system maintenance is performed on schedule and is operating at nominal levels daily, checking to ensure manual logs are being completed and up to date, and enforcing security performance and uniform standards. This position, along with one of the principals, shall be available to meet with the Police Chief or designee at any time (we encourage this to be a regularly scheduled meeting for the first year). This Assistant Manager position has responsibility for store operations at the “shift” level including executing all store functions and store standards with regard to inventory, cash management security, METRC compliance and customer experience. As Community Relations Officer this position carries the added responsibility of maintaining a log of all comments, complaints and concerns expressed by the neighborhood. The log is open to public inspection during all business hours and a documented response to input is required within 1 business day (immediate if urgency requires) and serving as the primary point of contact between the neighborhood and the store. They must also establish and maintain the company’s nuisance hotline number for accepting and recording feedback of any kind. This role is also responsible for hosting quarterly public outreach meetings specifically for the public at large. These will be well advertised and noticed. Pending the city providing a preference, they will either be held at local food and coffee establishments, or at the company. Through these meetings, the company will present a quarterly report to the neighborhood and solicit feedback for improvement or civic need. We truly believe that communication is key and quarterly meetings will help us address and act on any concerns/ideas more quickly. The General Manager position is responsible for leading and directing retail store operations and growing the business through people, quality products and superior service. The position is responsible for delivering the stores P&L through driving retail sales, leading store operations, and optimizing the customer experience. The General Manager has responsibility for customer safety, exemplary regulatory compliance (including METRC) and enforcement of company security processes and protocols. The General Manager will ensure a world class consumer experience exists for the customer through effective execution of a selling and service culture and by continually staying connected to customer needs, anticipating changes, and preparing teams to meet consumer challenges. Assistant Manager/Security Liaison –(to behired locally) Assistant Manager/Community Relations Officer –(to behired locally) The Assistant General Manager position carries with it all of the responsibilities of the General Manager cited above and acts as the ranking manager in the absence of the General Manager. This Assistant Manager position has responsibility for store operations at the “shift” level including executing all store functions and store standards with regard to inventory, cash management security, METRC compliance and customer experience. Assistant General Manager –(to behired locally) Describe the number of employees, title/position and their respected responsibilities. Organizat ional Chart (Store) Fresno Erudite Ventures Assistant General Mgr. Neighborhood Liaison ProGuard Security Services Contracted Security Sales Consultant (26) Assistant Manager Delivery Driver (9) SECTION 2 General Manager Assistant Manager Assistant Manager Buyer Customer Service (3) SOCIAL POLICY & LOCAL ENTERPRISE 2.6 Describe the number of employees, title/position and their respected responsibilities. Assistant Manager Security Liaison The company’s second Community Relations role is filled from our local ownership partner Tristan Mathews. She will guide our charitable contributions in the community and serve as an objective sounding board to ensure that as a business in Fresno and especially a cannabis business in Fresno we put the interests of the greater community first in all our dealings and operations. She will also implement our free, local Expungement Program with our Clark Howell legal team. Tristan’s title will be Community Relations Director. Arjun Dave -Chief Technology Officer Tristan Matthews -Director of Community Relations Sao Pires -Director of EmployeeInvestment Conceicao’s job is to manage our employee resources and implement healthcare and other benefit packages. She will utilize her experience with the Nurse’s Labor Union and focus on hiring practices that reach disadvantaged groups in the local community. Conceicao will assure we provide a Living Wage in Fresno County to all our staff and work with Amanda and Shunna to foster employee growth through education and training programs. She will additionally be in charge of employee enhancement initiatives such as monthly volunteer efforts with local non- profits and community-based organizations. Arjun is responsible for HerbNJoy’s technology which is extensive and leading edge in the cannabis industry. His contributions range from internet connectivity to web development. Arjun makes sure the rest of the company does not have to worry about anything digital going down. Arjun utilizes business analytics to assist in corporate planning focusing on industry analysis, retail sales data, and consumer surveys. Shunna McFarland -Director of Local Diversity &Equity Shunna will oversee all aspects of diversity strategy and implementation.Shunna will take the lead in representing the company in marketing,PR,and community relations.Shunna will locally implement the company’s diversity plan and measure results.She will assist the general manager in managing HerbNJoy’s local hiring of staff and assistant managers.Shunna will be working with Bill Matthews to develop and implement the training program for underrepresented qualified workers. Shunna and Larry will continue to develop relationships with community non-profits and private businesses. William Matthews -Director of Neighborhood Compatibility &Local Enterprise Bill will be in charge of compliance monitoring with regard to odor mitigation,noise, and lighting on premises.Bill will work with Tristan to ensure that we are a great neighbor in the community. He is a lifetime resident of Fresno and will make sure our company’s operations support local businesses.He will work with Amanda Howard to host our community events for public outreach and cannabis education. Amanda Howard–Director of Women’s Entrepreneurship Amanda will lead our Mentorship Program to empower local,female business owners and help them gain the tools they need to succeed in the cannabis industry.She developed and administers our Cannabis Education Program focusing on staff training and educating the public about the health benefits and risks associated with cannabis use. SECTION 2 Describe the number of employees, title/position and their respected responsibilities. SOCIAL POLICY & LOCAL ENTERPRISE 2.6 Rajan Dave –Chairman and CEO At HerbNJoy,Raj Dave will be responsible for locating and securing real estate for the HerbNJoy project. He will negotiate a lease or purchase of a building for the licensed premises. Raj has already arranged for financing of the project and sufficient capital exists to begin work immediately. In addition, Raj has assembled the management (Jeff Linden), diversity (Shunna McFarland), and Community Relations Director (Tristan Matthews) for the project. Raj will continue to be involved in the local entitlement process. Once the business is operational, he will participate in monthly meetings to track the business’ operations and success.Raj will provide strategy support to all aspects of the business as needed. Jeff Linden –Chief Operating Officer At HerbNJoy,Jeff will oversee all aspects of project development, from strategy and planning to retail launch, and provide ongoing support in market strategy,brand development, and ongoing operational oversight.Jeff will be responsible for implementation of the accounting/enterprise resource planning system,as well as point-of-sale systems,inventory tracking,and the Track ‐and- Trace system.Jeff will establish banking relationships to provide full banking and merchants banking services.Jeff will also take responsibility for overseeing all administration related items and construction and will ensure all licenses and required paperwork is filed in an accurate and timely fashion.Jeff will select a local general contractor and oversee construction of the retail facility.Jeff will also work with our HerbNJoy team of legal and licensing professionals to ensure all licensing-related paperwork is filed with the city and state.Once operational,Jeff will ensure that taxes are paid on time to local,state,and federalauthorities. SECTION 2 Describe the number of employees, title/position and their respected responsibilities. SOCIAL POLICY & LOCAL ENTERPRISE 2.6 Organizat ional Chart (Company) Fresno Erudite VenturesRajan Dave CEO Jeff Linden COO To be hired local GeneralManager ProGuard Security Services Contracted Security Shunna McFarland Director of Local Diversity & Equity Arjun Dave CTO Sao Pires Director of Employee Investment Tristan Matthews Director of Community Relations To be hired local Assistant General Mgr. Neighborhood Liaison To be hired local Assistant Manager Security Liaison SECTION 2 Describe the number of employees, title/position and their respected responsibilities. SOCIAL POLICY & LOCAL ENTERPRISE 2.6 Labor Peace Agreement HerbNJoy (Fresno Erudite Ventures) believes in and supports our employees right to engage as a collective bargaining unit should they choose to do so. Please find our executed Labor Peace Agreement below: Full Document is Attached SECTION 2 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. SOCIAL POLICY & LOCAL ENTERPRISE 2.7 Labor Peace Agreement HerbNJoy (Fresno Erudite Ventures) believes in and supports our employees right to engage as a collective bargaining unit should they choose to do so. Please find our executed Labor Peace Agreement below: Full Document is Attached SECTION 2 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. SOCIAL POLICY & LOCAL ENTERPRISE 2.7 Commitment to pay a living wage to its employees. Provide a workforce plan that includes at a minimum the following provisions: SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.8 SOCIAL POLICY & LOCAL ENTERPRISE 2.8.1 SOCIAL POLICY & LOCAL ENTERPRISE 2.8.2 SOCIAL POLICY & LOCAL ENTERPRISE 2.8.3 Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an application for employment with the applicant/permittee. All companies under the “HerbNJoy” and “Manzanita” brands have demonstrated and documented 100% local hiring in every city in which they operate. HerbNJoy Fresno unequivocally commits to 100% local hiring of its staff and management as well as local ownership inclusion Commitment to offer apprenticeships and/or compensation for continuing education in the field As cited and detailed in this application, HerbNJoy commits to tuition assistance for continuing education, certification of transferable skills training for all employees and an apprenticeship program for three “high skill” management roles. Please see following page for Apprenticeship Program outline. Our research indicates that the calculated living wage in Fresno is and the overall average in the city of Fresno is . HerbNJoy has a starting wage of $18.00 for hourly positions and starting annual salaries are for managers (local hires). Apprenticeship Program As a company we see an opportunity to serve the underrepresented population of Fresno and Fresno County by providing real-world preparation in areas that overlap with our areas of expertise and growth. We feel one effective way to do this is to establish a portfolio of paid apprenticeships for the fastest growing industry in the country, fostering transferable skills and knowledge in three key areas: Business Management Cannabis is a highly regulated industry that demands strict compliance. To succeed, managers need to learn about cannabis but more importantly they need the management “best practice” tool kit. This is an apprenticeship where we help them build it. Customer Experience in a Digital World We combine technology with visual merchandising to educate and entertain the consumer. This is a leading-edge growth requiring its own experts. This apprenticeship teaches the student to bring creative concepts to commercial viability in experiential retail. The cannabis industry carries public perceptions and obligations. The focus of this apprenticeship is to serve as the bridge between the local cannabis operators and the community from the point of view of the community. Public Affairs SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.8.2 Commitment to offer apprenticeships and/or compensation for continuing education in the field SECTION 2 SOCIAL POLICY & LOCAL ENTERPRISE 2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support. HerbNJoy is a minority owned business that has demonstrated its willingness and enthusiasm to grow and mentor Social Equity entrepreneurs. We have done so in the cities of Los Angeles and San Francisco. In these cities we have created opportunity then contributed both capital and mentorship to the start-up companies. Overview Mentorship & Training At HerbNJoy we believe in the phrase “a rising tide lifts all boats”. In our view, it is healthier for the industry to foster competition from local entrepreneurs and help them to achieve a high standard of regulatory compliance as part of the larger goal of mainstreaming the industry. To that end, HerbNJoy commits to specifically adopt and mentor two local, Fresno social- equity cannabis start-ups within the first year of commencing HerbNJoy operations. Amanda Howard, our Director of Women’s Entrepreneurship, will direct this initiative with a focus on female-owned businesses to promote gender equality for women in business. We also commit to sponsor a Fresno cannabis working group in which all operators and/or prospective operators can find support, gain insight, share resources (legal, technical, etc.) and discuss best practices in a roundtable format with the expectation of meeting monthly. Shelf Space HerbNJoy provides featured shelf space and marketing assistance for the local brands in all of its stores and will do so in Fresno. Additionally, HerbNJoy will commit to providing shelf space for Fresno brands of good reputation in its other retail locations across California. NEIGHBORHOOD COMPATIBILITY PLAN SECTION 3 SECTION 3 NEIGHBORHOOD COMPATIBILITY Overview Preventing nuisances and being a great neighbor starts with being local and getting involved with your neighbors. If they know you, they are exponentially more likely to share their observation and opinions which help make a stronger compliant business and a better neighbor. HerbNJoy hires its entire management and staff locally to jumpstart this process. We earn the respect and endorsement of every neighborhood and community in which we operate because we do what we say we will do. We make neighborhoods safer! We create an aesthetic that is sophisticated and appealing, we volunteer, and we manage diligently to our high standard. Below is a letter from the city manager of Merced supporting those statements. Also included are pictures from our team’s volunteer efforts to pick-up trash in a local park. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.1 We will have a designated Community Relations Officer from among our managers, who is also a City of Fresno resident. This person will be selected following the first Neighborhood Outreach and Feedback Meeting roughly 30 days after the company has received our operating permit, allowing all the neighborhood to meet all our managers. The selection will be based on meeting attendee recommendations, ensuring the person is the best fit for the neighborhood. This position reports to the Community Relations Director and the General Manager. Responsibilities of the Community Relations Officer include: •Maintaining a log of all comments, complaints and concerns expressed by the neighborhood. The log is open to public inspection during business hours and a documented response to input is required within 1 business day (immediate if urgency requires). Community Relations Officer •Hosting quarterly public outreach meetings specifically for the public at large. These will be well advertised and noticed. Pending the city providing a preference, they will either be held at local food and coffee establishments, or at the company. Through these meetings, the company will present a quarterly report to the neighborhood and solicit feedback for improvement or civic need. We truly believe that communication is key and quarterly meetings will help us address and act on any concerns/ideas more quickly. •Establish and maintain the company’s nuisance hotline number for accepting and recording feedback of any kind. Community Relations Director The company’s second Community Relations role is filled from our local ownership partner Tristan Matthews. She will also guide our charitable contributions in the community and serve as an objective sounding board to ensure that as a business in Fresno and especially a cannabis busines in Fresno we put the interests of the greater community first in all our dealings and operations. Tristan’s title will be Community Relations Director. In addition to the designated Community Relations Officer, the company shall name a Security Liaison from the management team and that person, along with one of the principals, shall be available to meet with the Police Chief or designee at any time (we encourage this to be a regularly scheduled meeting for the first year). Security Liaison Position Quarterly Meetings Principals and Management of the company (including our three Community Relations Officer positions) shall make themselves available to meet with the City Manager and/or designees quarterly to review the operational performance and community interaction of the business with an eye toward continuous improvement. Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.1 Mitigation Process Outline 1.Tools –Dedicated Community Input Phone Line, Quarterly Community Meetings, Outreach from Community Relations Officer and Community Relations Director, Logbook with documented responses and actions. 2.Sources of Input –Company Observation, Phone Line Feedback, Community Feedback from meetings, Community Feedback direct, City and Law Enforcement Feedback, Surveillance Camera recording and input from Community Relations Positions. 3.Response timing and methodology –All input logged as received (voicemail from phone line reviewed daily). Respond to individual providing input within 24 hours (response documented in the logbook). Action formulated by the General Manager or Manager on Duty and documented in the logbook. Should the input require immediate or escalated response, the Community Relations Director and COO are immediately notified and together they will formulate both actions and a response in concert with the General Manager and any local government resources that may be needed Note: In over 5 years of operating in multiple stores this level of emergency has occurred only twice a) a shoplifter incident, b) a fight between husband and wife in one of our parking lots. 4.Prevention –In addition to the outreach and meetings previously cited, the management team and security guard execute hourly perimeter walks of the site and facility for behavior and cleanliness. 5.Communication and Outcomes –The logbook and its entries are reviewed quarterly with the community via meetings, a review is also conducted with Law Enforcement. The logbook is kept available for viewing by any individual during business hours to establish full transparency and accountability. Note: HerbNJoy shall employ safe and prudent practices during the COVID-19 pandemic and all meetings shall be virtual or follow State and Local Heath guidelines until restrictions are lifted. Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 HerbNJoy maintains a robust Clean Street & Nuisance Mitigation plan. A friendly and polite attitude is essential while patrolling, inspecting, cleaning, and picking up trash. Neighbors and those in the immediate vicinity will be provided with our 24-hour emergency contact information and asked to please report any nuisances immediately so they may be immediately addressed. Clean Street Policy •The commercial cannabis business shall minimize nuisances such as trash, litter, and graffiti. •The security guard and cannabis dispensary personnel shall monitor the site and the immediate vicinity of the site to ensure that patrons immediately leave the site and do not consume cannabis in the vicinity of the dispensary or on the property or in the parking lot. •No cannabis product shall be visible from the exterior of the business. •The commercial cannabis business shall not engage the use of any external sound systems. •Internal audio sources shall by kept at volume levels that are not discernable from outside the business with an open entrance or receiving door. •Dispensary management shall monitor the internal audio volume to ensure compliance. •The security guard and dispensary management shall monitor the site and the immediate vicinity of the site to ensure that customers do not engage in any activity (i.e. car audio volume) that produces noise on the premise. Violation of this policy by any customer shall result in the revocation of store privileges for the offending customer. Noise Policy Surveillance observation from HerbNJoy’s 35+ cameras is available to law enforcement and the city in real time and may be available through the neighborhood liaison to the neighbors upon request. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 Lighting The company has included a site lighting plan and shall also develop and utilize a licensed lighting engineer to create a photometric based lighting plan for our Fresno project. The plan includes both downward and focused illumination on all entrances, exits and security sensitive areas. This approach facilitates a community friendly “dark skies” environment while providing lighting of all security sensitive areas with a minimum lighting foot candle value above 7.5. Perimeter lighting is sufficient to support CCTV visibility at all hours, at least within twenty (20) feet of a building ingress or egress point. Lights have been angled down to provide adequate coverage,but not impact neighbors or adjacent City property. HerbNJoy will only sell cannabis goods, cannabis accessories,and licensee’s branded merchandise.HerbNJoy will not sell alcohol or tobacco.Further,HerbNJoy will not sell cannabis goods that are labeled with terms that would create a misleading impression that the product is an alcoholic beverage.All cannabis goods sold by HerbNJoy are tracked from seed to sale using Treez.HerbNJoy will only sell adult use cannabis goods to individuals who are at least 21 years old after confirming the customer’s age and identity by inspecting a valid form of identification provided by the customer.HerbNJoy will not sell “Vape”productsor accessories in its Hanfordor Fresno locations. Retail Sales HerbNJoy tracks and records all sales of cannabis goods, and all staff are trained to comply with the regulations regarding daily limits.HerbNJoy’s POS system,Treez,automatically prohibits sales to customers beyond daily sales limits.Once a customer’s daily purchasing limit has been met,the software will not allow that customer to “check out” or make any further purchases.HerbNJoy will not sell more than 28.5 grams of non-concentrated cannabis or 8 grams of cannabis concentrate to an individual adult-use customer in a single day. HerbNJoy will not sell more than eight ounces of medical cannabis to an individual medical cannabis patient (or authorized primary caregiver for each patient they are authorized to make purchases for) in a single day. HerbNJoy will not allow customers to combine the adult use and medical purchases to circumvent limits. HerbNJoy policy prohibits the sale of any edible cannabis product exceeding 10 milligrams of tetrahydrocannabinol (“THC”) per serving or 100 milligrams of THC per package (except for orally-dissolving medical products, which may contain up to 500 milligrams of THC per package). Further, company policy prohibits the sale of any non-edible cannabis product exceeding 1,000 milligrams of THC perpackage for adult use products and 2,000 milligrams of THC perpackage for medical products. To ensure compliance with the THC limits, HerbNJoy will only sell products designated as “For Medical Use Only,” to verified medicinal customers. Daily Limits Tetrahydrocannabinol Limits (THC) Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION C NEIGHBORHOOD COMPATIBILITY 3.2 Prevention of Youth Access Pedestrian Traffic Pedestrian traffic shall never be impeded. The company executes a customer flow system that anticipates peak traffic volume and manages throughout without customer lines impeding pedestrian foot traffic. Product nor the store interior shall be visible to the street even if the foyer door is open. HerbNJoy has a verification protocol to ensure that all individuals granted access to the retail area are at least 21 years old with valid proof of identification or are at least 18 years old with valid proof of identification and a valid physician’s recommendation for cannabis for themselves or for an individual for whom he or she is a primary caregiver. For medical cannabis patients and primary caregivers, HerbNJoy’s protocol requires that medical status and age be verified immediately upon entry.Medical patients must present a valid physician’s recommendation and a California government- issued photo identification (or other acceptable form of identification).HerbNJoy will verify the validity of both. For medical cannabis patients with primary caregivers, HerbNJoy requires that the patient accompany the primary caregiver on his or her initial visit. Once the legitimacy of a primary caregiver status has been confirmed,a primary caregiver will be able to purchase cannabis goods on a patient’s behalf. Parking The proposed location has twenty-two (22) off street and on-street parking stalls for use to HerbNJoy. Based upon our customer flow management plan and current operating experience allowing an average of 9 minutes in-store time (12 minutes average arrival to departure) our selected location provides ample off- street dedicated parking to prevent overflow. It also achieves the local code parking stall requirement for retail businesses. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION C NEIGHBORHOOD COMPATIBILITY 3.2 •No check cashing activities at any time •On-site consumption of cannabis or cannabis products is specifically prohibited on the premises at all times •No recommendations from a doctor for medical cannabis shall be issued on- site. •There shall be no on-site sales of alcohol or tobacco products, and no on-site consumption of food, alcohol or tobacco by patrons •The use of vending machines (i.e. a machine that dispenses articles when a coin,bill,or token is inserted)to dispense cannabis is strictly prohibited •No drive-through facilities shall be allowed,and no cannabis shall be sold through a drive‐through facility •No packaging or labeling of cannabis goods •Delivery employees shall not consume cannabis goods while delivering cannabis goods to customers •The company policy decrees no free samples of any cannabis or cannabis products may be distributed at any time •HerbNJoy will not provide free samples of any type,including cannabis goods, to any person.Further, HerbNJoy will not allow any non-employees to provide free samples of any type, including cannabis goods,to any person on its premises Prohibited Activities The following list of prohibited activities is integrated into the company operating manual and in force at all the company’s operations. Enforcement is executed by a combination of contracted security (ProGuard) and HerbNJoy’s management team utilizing hourly patrols, surveillance technology and neighborhood feedback through our dedicated “neighborhood response line”. Any action of an employee, manager or owner of a prohibited activity or failure to stop or report a prohibited activity is subject to termination of employment or forfeiture of ownership. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 Employee Training The best foundation for educating customers is a highly educated sales staff. HerbNJoy spends 4 weeks training every employee on every product prior to allowing the employee to interact with a customer. This training includes the following and much more: •Vendor training on the effects, differences and customer profile for their products. •Personal experience with all products we sell in an at home, controlled environment (*some exceptions apply). Group discussions regarding effects to create a knowledge base. •Understanding of terms and techniques such as nano- absorption, micro-dosing, CBD, THC, extraction methods, terpenes, entourage effect, pain management and much more. •How to listen actively to a customer to identify the purpose of their purchase and their comfort/experience level with cannabis products. •Specific information includes customer service,quality control,security,workplace safety,age-verification devices, daily limits, recordkeeping, and regulatory responsibilities. Employees are trained to follow HerbNJoy’s standardoperating procedures to ensure familiarity with industry best practices that enhance the customer retail and delivery experiences. Beyond cannabis education and expertise, HerbNJoy training will address compliance with California and Fresno regulations, workplace etiquette, defining sexual harassment, reporting sexual harassment, and creating a positive work environment.In addition,HerbNJoy will provide cultural competency training so that HerbNJoy employees are equipped to interact with Fresno’s diversepopulation. Non‐Cannabis Training Curriculum Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 Employee Training –Public Safety HerbNJoy recognizes that cannabis users who consume cannabis irresponsibly can adversely impact public health. HerbNJoy believes that customer education is the most effective harm reduction strategy to minimize impacts on public health. HerbNJoy’s customer and community education initiatives relating to public health and safety issues will include: •THC’s potential impairment of driving skills,e.g.,the latest scientific review recommends waiting up to 8 hours after maximal effects of cannabis dose before driving. •THC exposure impact on neurodevelopment in minors. Staff will educate adult customers on the importance of maintaining the child safety features of the products and the risks posed to minors by early cannabis exposure. The intent of this specialized educational information is to provide HerbNJoy employees with a detailed knowledge of cannabis and cannabis products that extends beyond the common sativa versus indica simplifications and accounts for current cannabis compound pharmacology to better assist customers in determining their dosage,preferences,and desired effects. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 Employee Training –Public Safety •The use of CBD and other non- intoxicating cannabinoids to eliminate or reduceany side effects that might be associated with THC. •Cannabis Use Disorder. In January 2019, the first scientific compendium on CUD was published, edited by the National Institutes of Health scientists. HerbNJoy will incorporate all of this guidance into its educational initiatives to help reduce the small likelihood of cannabis dependence and withdrawal symptomsamong the vulnerable subset of its customers. •Safe pulmonary administration (vaporizers). The risks presented by cannabis vaping remain unknown. To offset this uncertainty, as an alternative to smoking, HerbNJoy will not carry or sell Cannabis Extract Vaporizers in its Fresno or Hanford stores. Whole flower vaporizers,such as those produced by Storz &Bickel,the German medical instrument manufacturers provide customers with a safe alternative based upon guidance derived from United States and European clinical studies conducted with these devices. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 Ongoing Training HerbNJoy recognizes that not all employees learn the same way or at the same speed. Thus, management speaks with each employee individually to assess the employee’s experience and learning style and adapts training accordingly. Moreover, in addition to in-person, hands-on training, HerbNJoy offers computer modules and other reading materials so that employees can conveniently access training information in written form (to accommodate visual learners) and on an ongoing basis.At a minimum,HerbNJoy’s current SOPs are made available to all employees. HerbNJoy continues to train on an ongoing and on-the-job basis to ensure that employees are familiar and comfortable with our policies and procedures and are able to meet company standards in the execution of their duties. To identify any deficiencies, we review the effectiveness of training both informallyandat employee reviewmeetings. All training is documented,and training records are retained in personnel files. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.2 HerbNJoy shall not utilize any exterior signage depicting product, its likeness our any language or symbols representing cannabis in any form. HerbNJoy deploys a single tasteful logo sign on each exterior wall and complies with all local signage requirements. Signage Policy HerbNJoy does not package or label the cannabis goods it sells.HerbNJoy will not accept cannabisgoods from distributors that are notalready packaged for final sale in accordance with the requirements of the State of California. Any cannabis goods in HerbNJoy’s possession that do not meet packaging and labeling requirements will be destroyed. HerbNJoy will ensure that all cannabis goods have been tested and labeled in accordance with California regulations. HerbNJoy will only sell cannabis goods that have been tested by a licensed testing laboratory and have passed all statutory and regulatory testing requirements. Packaging,Labeling, andTesting Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. SECTION 3 It is HerbNJoy’s desire to be a good neighbor including providing an environment free of cannabis odor both emanating from the operation and within the operation itself. HerbNJoy will implement and maintain building systems to effectively minimize transmission of odor between building and surrounding areas. It should be noted that this is a cannabis storefront retail environment and regulatory compliance requires all products to be received and stored as individual selling units sealed and labeled from the supplier. Only selling floor samples or inventory designated for destruction may be in an unsealed package. To prevent odors from escaping the structure and provide an odor free shopping environment, the company has designed the following Odor Control Plan with its HVAC Vendor and certified by RHC an air quality engineering company. Odor Overview NEIGHBORHOOD COMPATIBILITY 3.3 Describe odor mitigation practices. If a complaint is received, the site supervisor will: 1.Obtain date and time, location, name and phone number of the complainant,and nature or characteristics of the odor and record that information along with the business responder’s name in the Odor Logbook. 2.Proceed to the location of the complaint to verify that the business is indeed responsible for the odor. 3.If it is determined that the business is responsible for the odor complaint, implement operational changes to minimize/eliminate the odors. 4.Modify daily operations as necessary based upon conclusions of the odor complaints. This includes modification of the Operation Processes and Maintenance Plan. 5.This mitigation plan and all associated records will be made available to the public for review and documents can be requested at our facility. All requests for documentation shall occur via written request only (email is acceptable). Complaint Response Protocol The General Manager will supervise installment and maintenance of the air treatment system to ensure there is no off-site odor of cannabis detectable from adjacent properties or the community.Air treatment systems consist of carbon filtration on the exhaust side of the ventilation system and negatively pressurizing the facility in relation to the exterior ambient condition. Staff members will immediatelyreport odorproblems to the General Manager,who will take corrective action, implement upgrades to the system,upgrades to the facility or to the internal handling process of product within the facility to further deter odors. SECTION 3 Odor Mitigation Retail Area –Most products in this area will be individually packaged in airtight and child-proof containers.Some flower product may be opened for inspection, and then resealed.Odor from this activity will be monitored to assure it is not an odor impact.Odor from this activity would be exhausted through the Air Scrubber. •Expired -Item(s) that have exceeded the expiration date printed upon the item by the vendor or item(s) aged to the maximum date allowed by the state schedule. •Defective -Item(s) determined to be unsuitable for sale due to poor quality, open/torn packaging, or any other noticeable defect. •Miscellaneous -Item(s) that require destruction for any reason other than those listed. Odor Control: •A designated and locked storage area and lot specific container shall be maintained and secured for the collection of unsaleable item(s). •The Unsalable Product storage area in the vault will be checked during the daily odor survey to assure it is not the source of any odors. •The vault area will be maintained under negative building pressure so that air leaves the vault through the Air Scrubber. •The “Cannabis Waste” processing will include procedures to minimize odors. On-site or Off-site Odors Employees are the first line of defense in identifying potential odor impacts. Employees must be alert to any odors at all times. If questionable or objectionable on-site or off-site odors are detected by site personnel, the site supervisor will implement the following protocol: 1.Investigate and determine the likely source of the odor. 2.Assess the effectiveness of available on-site management practices to resolve the odor event and immediately take steps to reduce the odor-generating capacity of on-site product. 3.Determine if the odor traveled off-site by surveying the site perimeter and noting existing wind patterns. 4.Record the event for further operational review. Unsalable Product Unsaleable inventory consists of any product(s) that is unsuitable for retail or medicinal sale. All unsaleable inventory will be destroyed in accordance with State and local regulation. The sources of unsaleable inventory are as follows: NEIGHBORHOOD COMPATIBILITY 3.3 Describe odor mitigation practices. SECTION 3 Identify potential sources of odor a.Inventory Vault Room –this is the highest concentration of inventory and, although products are in sealed individual selling units, there is moderate odor generated from this concentration of inventory. b.Selling floor samples (flower only) –this is a minor but discernible emanation of odor from flower samples on the selling floor for consumers to view and smell (they cannot touch) under control of the sales associate. c.Cash –this is a minor but discernible emanation of odor from cash used for purchases made by consumers. The odor does not originate from within the store but from the consumers themselves. It only becomes noticeable upon a material accumulation of cash notes (usually in the course of reconciling and counting cash receipts). Odor Sources The recognized potential sources of odor are as follows in order of emanation risk: NEIGHBORHOOD COMPATIBILITY 3.4 SECTION 3 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the licensed premises. HerbNJoy shall only stock and sell pre- packaged products purchased from a distributor. Activated carbon is an extremely effective absorptive odor control substance. An air scrubber will be placed upstream of the carbon filters as part of the return air to the HVAC unit to control outgoing airstream odor. Planned, scheduled monitoring on a daily walk-about visit around the exterior of the site, near the exhaust system. Data to be compiled and compared to established norms. Using a 5-point OIRS (Odor Intensity Reference Scale), compare daily readings. If values equal 3 on the 5- point scale, carbon-filtration exhaust system will be evaluated and repaired, as required. Evaluation shall include, but not be limited to, fan operation, distribution system integrity, and filter media effectiveness. When operating, systems shall be air balanced to ensure design air flows for supply, fresh air, and exhaust air base values have been met. Once completed, a differential pressure gauge shall be used to ensure that a negative building static of no less than 0.05” of negative building static has been achieved for the inventory vault. Sales floor areas shall remain at neutral pressure for customer comfort. NEIGHBORHOOD COMPATIBILITY 3.5 HerbNJoy uses odor-neutralizing materials such as enzymatic catalysts which can degrade odorous compounds. These materials will be applied to surface areas throughout the store to reduce the risk of any odors. SECTION 3 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the licensed premises. The space will be conditioned using three (3) 7-ton HVAC units Each HVAC system utilizes the following “best in class” air quality components: a.A “clean room” industrial air scrubber (specifications attached) b.Two 100lb activated carbon charcoal filters c.Computer controlled air balancing, odor sensors and climate zones NEIGHBORHOOD COMPATIBILITY 3.5 We believe that the best air quality and odor control technology for cannabis retail facilities is carbon filtration. The inventory and retail areas in our facility will be separated from other areas, allowing for odor control methods to be specific to the activity being performed. The vault room and the retail area will be negatively pressurized and have carbon-filtered ventilation which is used in cigar lounges, airport facilities, chemical plants and other businesses requiring industrial level air filtration. SECTION 3 NEIGHBORHOOD COMPATIBILITY 3.6 The inventory team and the sales associates will regularly ensure that all jars that the flower is sold in are property sealed so as not to emanate any smell. Describe all proposed staff odor training and system maintenance. Most products in this area will be individually packaged in airtight and child-proof containers.Some flower product may be opened for inspection,and then resealed. Odor from this activity will be monitored to assure it is not an odor impact.Odor from this activity would be exhausted through the Air Scrubber. Operation Processes and Maintenance Plan In order to minimize the development of conditions that could lead to odor problems, the business will include the following Operational Processes and Maintenance Plan: Operation Processes Daily Survey Each day the site supervisor will evaluate any on-site odors and record the results in an Odor Logbook. This will include a walk-about visit of the perimeter of the exterior of the building near the exhaust system. Data compiled during the daily odor survey will be compiled and compared to established norms. Using a 5 point OIRS (Odor Intensity Reference Scale), daily readings will be compared. If values equal 3 on the 5-point scale, the carbon-filtration exhaust system will be evaluated and repaired, as required. Evaluation shall include, but not be limited to, fan operation, distribution system integrity, and filter media effectiveness. The daily survey will also include a review of the negative pressure system (checking to ensure that negative building pressure is being maintained in the negative pressure areas [high odor potential areas]). If objectionable on-site odors are detected, or odor control equipment is not functioning properly, the site supervisor will take appropriate actions. Product Handling The facility will handle stocked inventory. Operations with high odor potential shall only occur in rooms designated for high odor potential that have appropriate systems in place to mitigate odors (negative pressure). Stocked inventory –Cannabis products will be individually packaged in airtight and child-proof containers (may not be opened or tampered with by law). To control odors, the Inventory Vault will be maintained under negative building pressure and exhaust air will be pulled through the Air Scrubber. Retail Area SECTION 3 Maintenance Plan Routine Maintenance of Engineering Controls The facility will keep a Maintenance Log with all equipment maintenance recommendations and requirements. The site supervisor will be responsible for assuring that the maintenance is up to date. Maintenance will include such regular items as the periodic changing of the carbon filter media or the necessary maintenance for the Air Scrubbers. The Maintenance Log will have contact information for each of the engineering controls that make up the Odor Mitigation and HVAC system. The contact information will be office number, cell number and email contact for the technicians that can maintain or repair each of the engineering controls. Personnel Odor Control Training Personnel will be trained to know the facility odor operational processes and maintenance plan, product handling procedures and contingency actions. Handling procedures to minimize the production of odors will be stressed. The Odor Mitigation Plan will be kept onsite, available to all company staff. Annual review and training will ensure continued safe operations of the facility and compliance with regulations. Both initial employee training and annual review will cover the following topics. •Handling of the products •Maintaining negative pressure in designated areas •Exhausting air through the Air Scrubber •Complaint Response NEIGHBORHOOD COMPATIBILITY 3.6 Describe all proposed staff odor training and system maintenance. SECTION 3 Waste Management Training & Monitoring HerbNJoy has a robust cannabis waste management process and set of controls. The process is managed through management level personnel who are all METRC certified. The process training is conducted as part of our four-week pre-opening training program. Monitoring is conducted by a weekly view of the Cannabis Waste Logbook for signatures and activity. This is conducted by the General Manager or Assistant General Manager. Maintenance consists of a weekly check for fullness of the locked container. The activity for this process is very infrequent. HerbNJoy’s current retail operations generate average monthly waste of less than .25 ounces (one quarter of one ounce) of waste per store. Waste Processing Overview Unsaleable inventory consists of any product(s)that is unsuitable for retail or medicinal sale. All unsaleable inventory will be destroyed in accordance with State and local regulation.The sources of unsaleable inventory are as follows: •Expired -Item(s)that have exceeded the expiration date printed upon the item by the vendor or item(s)aged to the maximum date allowed by state schedule. •Defective -Item(s)determined to be unsuitable for sale due to poor quality,open/torn packaging or any other noticeable defect.This includes any items that have lost required state labeling. •Returns -Item(s)returned by the customer for any reason. •Display -Item(s)utilized for display,demonstration or other open package products resulting from in-store usage (not consumption). •Abandoned –Item(s)left on the selling floor unattended by the customer during the course of business. •Any cannabis goods removed from packaging for display purposes will not be sold or consumed and will be disposed of pursuant to HerbNJoy’s Cannabis Waste Disposal Policy. Describe the waste management plan NEIGHBORHOOD COMPATIBILITY 3.7 Note:HerbNJoy maintains accurate and complete records to account for,reconcile,and evidence disposal of cannabis waste.HerbNJoy will report all cannabis waste activities,up to and including disposal,into Track -and-Trace .Cannabis waste disposal records will be entered into Track -and-Trace,maintained electronically for at least seven years,and made available to regulators in electronic or hard-copy form immediately upon request.Specifically,the following information is entered into Track -and-Trace for each cannabis waste destruction and disposal:(i) name and type of the cannabis goods;(ii)UID of the cannabis goods;amount of the cannabis goods, by weight or count,and total wholesale cost of the cannabis goods,as applicable;(iv)date and time of the destruction and disposal. SECTION 3 The determination of an unsaleable item must always be made by a manager. •A designated and locked container shall be maintained and secured on the selling floor for the collection of unsaleable item(s). •The container includes a manual daily activity log to document the collection and disposition of unsaleable inventory (sample attached).This log documents the following information: o Date/Time o Item SKU and Description o Quantity and Value (retail) o Reason it is Unsaleable (Expired, Defective, Returned,Display) o Return Receipt (if applicable) o Inventory Adjustment Copy (if applicable) o Manager and W itness Signatures •As part of the shift manager’s closing responsibilities,she/he transfers the contents of the selling floor container to a locked holding container within the vault.The daily log page(s)are placed in the “Unsaleable Activity”binder within the vault.The empty selling floor container is returned to its location on the selling floor. •One time per week (day to be determined)the unsaleable holding container is removed from the vault by two managers and its contents verified against the “Unsaleable Activity”binder entries.If contents and activity match,the managers sign and date the binder.If there is a discrepancy,the managers must investigate and resolve prior to proceeding. •In accordance with State regulation the “Unsaleable Activity”binder shall be retained for review and inspection by State or local inspectors. •Once reconciliation is achieved,the managers shall process the unsalable product now deemed “Cannabis Waste”. Note:“Cannabis Waste”may not be sold under any circumstance Cannabis Waste Management Protocols NEIGHBORHOOD COMPATIBILITY 3.7 Describe the waste management plan SECTION 3 The company shall provide the following documentation regarding the waste hauler to the Bureau of Cannabis Control: a.Name of local agency providing waste hauling services b.Company name of the local agency franchised or contracted or permitted waste hauler c.Company business address d.Name of the primary contact person and contact phone number e.Documentation from the entity hauling the waste that indicating the date and time of each collection of cannabis waste at the licensed premises f.A copy of the certified weight ticket or other documentation prepared by the entity hauling the waste confirming receipt of the cannabis waste at the solid waste facility Cannabis Waste Processing The “Cannabis Waste” shall be processed by following the following steps: •The cannabis waste goods shall be removed from their packaging and rendered unrecognizable and unusable. •The Cannabis waste shall then be placed in a compostable container and remain secured in the vault. •The Cannabis waste shall be mixed with clean soil in a ration of 50:1 (dirt/waste). •The designated manager shall contact the local waste hauler (permitted and licensed for cannabis). Cannabis Waste Hauling NEIGHBORHOOD COMPATIBILITY 3.7 Describe the waste management plan Photography: @nahilnaseer Unsplash.com SECTION 4 SAFETY PLAN SECTION 4 SAFETY PLAN Overview HerbNJoy takes the safety and security of our customers, employees and neighbors very seriously. We currently operate four retail locations in California and have done so without a safety or security issue. HerbNJoy has partnered with SCM for fire and employee safety, Veo Verde Security, Protech Security, SCM for fire suppression and ProGuard Security for all of our stores. These high quality and stable partnerships produce high standards and consistency of operation throughout the HerbNJoy brand. In addition to our expert partners, our COO has operated retail businesses in California at the executive level for over 20 years. His companies operated with as many as 2,900 employees and he has accumulated an unblemished safety record. This includes the last five (5) years in cannabis retail. Within one year of receiving its license,HerbNJoy will ensure that at least one supervisor and one employee successfully complete a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. Cal-OSHATraining Describe accident and incident reporting procedures. SECTION 4 Safety Plan & Safety Training HerbNJoy management in conjunction with our Safety consultant Paul Gantt at Safety Compliance Management “SCM” trains our opening staff and conducts annual refresher training to accommodate new employees and audit compliance.Training topics include,but are not limited to: •Security Awareness •Preventing W orkplace Violence •Armed Offender Response •Incident Response •Handling a Violent Visitor •Internal Larceny •Emergency and Fire Safety •First Aid •Emergency Action Plan •Natural Disaster Response •Crowd Control •Loss Prevention •Product Handling •Security Guard Responsibilities •Acceptable Forms of Identification •Maintaining Secure Exits &Entrances •Video Surveillance •Armored Cash Pickups •Cash Handling Procedures •Securing Product Deliveries •WorkplaceSafety •Hazard Identification &Minimizing Exposure •Bomb Threat •Suspicious Package •Gas Leak •Burglary &Robbery Paul Gantt is the President and Founder of Safety Compliance Management, Inc. (SCM), a safety and health consultation firm headquartered in San Ramon, California. Prior to founding SCM, Dr. Gantt served in four California fire departments where he advanced through the ranks holding positions that include Firefighter/Paramedic, Fire Captain, Fire Battalion Chief, Fire Marshal, Fire Training Officer, Fire Division Chief, and Deputy Fire Chief. Dr. Gantt is a Safety Engineer with a Master of Engineering degree in Advanced Safety Engineering, a Doctorate in Health and Human Services, and is a Board-Certified Safety Professional (CSP). He is also certified by the Office of the California State Fire Marshal as a Certified Fire Officer, Certified Fire Prevention Officer, Certified Public Education Officer, Certified Fire Training Officer, and additionally is certified to teach courses in many of these disciplines for the Office of the State Fire Marshal. Additionally, Dr. Gantt is a qualified Expert Witness and has testified in deposition and court on matters of the California Fire Code and fire safety matters. The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. SAFETY PLAN 4.1 SECTION 4 SAFETY PLAN 4.1 HerbNJoy does not utilize the same firm to design the three elements of our Safety and Security Plan.We use specialists in their field;Veo Verde for Security,SCM for our Employee Safety &Fire Safety Plans and with RCM for Fire Suppression/Protection.We have engaged with RCM to develop our fire suppression plan in conjunction with our building plans submission. Dr. Gantt is an experienced Safety Engineer and Board-Certified Safety Professional (CSP) with an extensive background as both a regulator and in private practice encompassing over 40 years. He is experienced in many areas of occupational and construction safety, safety systems and programs, multi-employer worksites, fire and life safety, workplace and premises evaluation and liability, general safety practices, OSHA and Cal-OSHA health and safety regulations, fire and life safety, and Fire and Building Code safety and health requirements. He has considerable experience inspecting and evaluating construction sites, occupational settings, and conducting safety assessments in a broad range of public and private facilities. Additionally, his expertise includes the delivery of training programs with the ability to explain complex regulations, hazards, and practices in an easy-to-understand manner that can be essential in testimony and reports. He is a nationally recognized speaker in many areas related to occupational health and safety, fire safety, premises safety, and regulatory compliance. SCM Professional Fire Prevention/Suppression/Safety consultant(s) The Fresno Fire and Life Safety report has been completed on our Fresno project and is available for full review The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. HerbNJoy does not utilize the same firm to design the three elements of our Safety and security plan.We use specialists in their field;Veo Verde for Security,SCM for our Employee Safety &Fire Safety Plans and with RCM for Fire Suppression/Protection.We have engaged with RCM to develop our fire suppression plan in conjunction with our building plans submission. RCM Professional Fire Prevention/Suppression/Safety consultant(s) RCM Fire Protection Inc is a full- service Tracy based fire protection company that specializes in design, installation, service and maintenance of fire suppression systems. Established in 2001, RCM Fire quickly grew into one of the most diversified Fire Protection contractors in California. RCM has the ability to bond single projects to $8M. Their strength is their years of experience. Experience equals diversification. Their project experience and customer base cover a broad spectrum of specialties, including healthcare, technology, automotive manufacturing, government, high rise luxury condominiums, and large retail malls. SAFETY PLAN 4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. SECTION 4 SECTION 4 Describe the proposed accident and incident reporting procedures. Overview HerbNJoy incorporates structured and accountable protocols for managing and reporting various workplace accidents, incidents and other events. These protocols and procedures are the basis for HerbNJoy’s Company Emergency Action Plan (EAP). In the event of Fire or other emergency the company shall employ the following processes, protocols and tools to maximize the safety of its employees and the community. Each employee shall receive EAP orientation as a component of the new hire process and complete an acknowledgement form demonstrating that they understand and have a copy of the plan. The company’s EAP (as outlined by OSHA) includes the following components: •Procedures for reporting a fire or other emergency •Procedures for emergency evacuation •Employee assignments, responsibilities and training Emergency Types The following are the emergency scenarios deemed most likely to be experienced by the company considering geographic and business conditions: •Fire •Earthquake •Robbery •Employee Injury Copies of this EAP document shall be kept in both the customer service area and the manager’s office (same binder as the IPP) conspicuously available to all employees and for inspection. It shall be reviewed and updated quarterly. Maps and escape route information shall be posted at every premise door. There are a number of incidents that can take place while on the job. The following details the procedures and protocols that should be followed when encountering an emergency situation. Incident Protocols SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. In the event that an employee injury occurs while on the job site or during the execution of a delivery, the following actions will be taken by the Manager On Duty to ensure both employee safety and a quick resolution to workers’ compensation claims. ●The manager will first check on the well being of the employee ●The manager will then determine the severity of the injury ○If minor (i.e. scrape, superficial cut, strain, bruise, etc.), the manager will fill out an incident report, a workers’ compensation report, and send the employee to the doctor following all protocols dictated by our workers compensation provider. ○If major (i.e. ANY HEAD INJURY, major sprain, broken bone, deep cut, etc.), the manager will call 911, stay with the employee until emergency services arrive (if on location), and contact the injured employee’s emergency contact. The manager will then fill out an incident report, a workers’ compensation report, and follow all protocols dictated by our workers’ compensation provider. ●The manager will then investigate the cause of the injury thoroughly: observation of accident scene, auditing of camera footage, and identification of any witnesses. If there are witnesses, they will be asked to include their account of events in the Incident Report Employee Slip & Fall Or Other Injuries SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. Robbery Protocol In the event of a robbery, whether at the delivery hub or during the execution of a delivery, the employees and managers have been directed to follow the Robbery Protocol. This is designed to keep them safe and minimize risk to the employees. Robbery While At Delivery Base ●Follow the instructions of the assailants without question or hesitation. Cooperate in every way and do not try to prevent their actions or apprehend them. ●Upon the departure of the Assailant, the MOD and employees will take the following actions: ○The MOD will first assess the safety and well-being of the employees ○The MOD will then call 911 and report the robbery to the police ○The MOD is not the GM, they will call the General Manager and inform them of the incident. The GM will then contact all appropriate parties (Ownership & HR) ○When the police arrive, ALL employees are to cooperate and assist the police with their investigation ○The MOD will take inventory to assess what was taken and share that information with the police department, GM, & Ownership ○The MOD will allow access to any and all security footage of the incident ●MOD will fill out a detailed Incident Form. Robbery While Executing A Delivery ●Follow the instructions of the assailants without question or hesitation. Cooperate in every way and do not try to prevent their actions or apprehend them. ●Upon the departure of the Assailant, the employee/driver will take the following actions: ○The employee/driver will call 911 and report the robbery to the police immediately ○The employee/driver will call dispatch and/or the MOD to inform them of the incident. The MOD will check on the employees’ well-being first and then meet them at the scene to assist ■When the police arrive the driver/employee will fully cooperate and assist the police with their investigation ■The MOD will take inventory to assess what was taken and share that information with the police department, GM, & Ownership ■The MOD will allow access to any and all security footage of the incident ○MOD will fill out a detailed Incident Form. SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. Emergency Fire Protocol In the event of a fire, whether in the company’s unit, on the shared property, or approaching eminent threat (fire advancing toward the premises), the employees and managers have been directed to follow the Emergency Fire Protocol. This is designed to keep them safe and minimize risk to the employees. ●Smoke detector alarm is engaged and/or the manual fire alarm is pulled ●MOD quickly assess fire: ○If small, MOD will attempt to put out the fire with the fire extinguisher ○If too big to extinguish, the MOD will evacuate all employees from the building ●MOD or anyone available calls 911, reports the fire, and gives all known information to the dispatcher ●When emergency services arrives, direct them to the location of the fire and wait outside Fire On The Premises ●Manual fire alarm is pulled ●MOD evacuates all employees from the building ●MOD or anyone available calls 911, reports the fire, and gives all known information to the dispatcher ●When emergency services arrives, direct them to the location of the fire and wait outside ●Follow all instructions given by emergency workers Fire On The Property Or Approaching Fire Threat SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. In the event of an Earthquake, the employees and managers have been directed to follow the Emergency Earthquake Protocol. This is designed to keep them safe and minimize risk to the employees. ●Employees will immediately shelter in place (i.e. under a desk, in a door frame, or in the Inventory Vault) ●When the earthquake has subsided, MOD will take the following actions: ○The MOD will first check on the safety and wellbeing of the employees ○If there are any injuries MOD will call 911 and request emergency assistance ○MOD will assess the safety of the structure. If there are any structural weaknesses or potential hazards observed, the MOD will evacuate all employees from the building ○MOD will contact all employees off site (drivers) to assess their safety, and communicate appropriate actions to ensure safety or gain assistance ○MOD will check with emergency broadcasting or other means to assess the situation in the larger community ○MOD will then communicate the incident to the appropriate parties (Ownership & HR) ○MOD will then determine if business closure is necessary Emergency Earthquake Protocol Automobile Accident Protocol In the event of an accident, unless they are injured, the employee/driver will be required to fill out an Incident Form immediately following the accident. Blank forms are found within the Vehicle Binder. The following protocol is designed to help reduce injuries and ensure quick settlement of car insurance claims. Immediately after an accident: The employee/driver will perform these actions immediately following an auto accident: ■Contact 911 ■Contact dispatch and/or MOD ■Turn on the hazards and move the car to the shoulder ■Wait for emergency assistance ■Provide police with their Drivers License and Vehicle Binder ●Stay safe! Assess the situation for safety and only exit the vehicle if they are in immediate danger or have determined that it is safe to exit ●If possible and if necessary, move the vehicle to a safe location They are not to leave the scene of the accident! ●Once in a safe location, the employee/driver will determine if there are any injuries ○If the employee/driver is injured, they will focus on their own safety. If the injury is minor, and they are able, they will attempt to complete the following steps: SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. Automobile Accident Protocol (continued) ○If the employee/driver is NOT injured and the other party IS injured and/or there is significant damage the employee/driver will complete the following steps: ■Contact 911 and stay with the injured party until emergency assistance arrives unless it compromises the safety of the employee/driver ■Contact dispatch and/or MOD ■Turn on the hazard lights and move the car to the shoulder ■Check that the product and money are secured in the lock box ■Wait for emergency assistance ■Provide police with their Drivers License and Vehicle Binder which contains all necessary vehicle information ●If the car is Operational the employee/driver will: ○Wait for police to release them from the scene ○Check in with dispatch/MOD for further instruction ●If the car is NOT Operational the employee/driver will: ○Check in with dispatch/MOD so they can send assistance. The MOD will call roadside assistance and dispatch a back up driver to assist ○Wait for a backup driver to arrive. When they arrive, the employees will secure the product and money in the lockbox in the backup driver’s vehicle ○Remove all other valuables from the car, including personal items, phone, cradle, power cords, and Vehicle Binder ○Wait for police to release them from the scene ○Wait for requested Roadside Assistance ■Fill out an Incident Form. Blank forms are found in the Vehicle Binder SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. Automobile Accident Protocol (continued) ○If there are no injuries and only minor damage the employee/driver will complete the following steps: ■Call dispatch/MOD to inform them of the accident ■Turn on the hazards and move the car to the shoulder, if possible ■Check that the product and money are secured in the lock box ■Provide the other party with the company insurance policy number. This can be found in the Vehicle Binder ●If the car is Operational: ○If the other party called the police, wait for the police to release you from the scene ○Check in with dispatch/MOD for further instruction ●If the car is not Operational: ○Check in with dispatch/MOD so they can send assistance. The MOD will call roadside assistance and dispatch a back up driver to assist ○Wait for a backup driver to arrive, when they arrive the employees will secure the product and money in the lockbox in the backup driver’s vehicle ○Remove all other valuables from the car, including personal items, phone, cradle, power cords, and Vehicle Binder ○If necessary, wait for police to release you from the scene ○Wait for requested Roadside Assistance ■Fill out an Incident Form. Blank forms are found in the Vehicle Binder SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. When asked about your activities If the officer inquires about the inventory box in the car or asks you what you are doing, tell them that you are delivering retail orders for a licensed cannabis delivery service. Let them know that you are in route to or from a delivery. If asked, give them your Drivers License and offer them access to the documents contained in the car’s binder. If they ask to see the product If the officer asks to view the product, then comply and open up the traveling inventory box. Let them officer know that you only have the key to the product compartment and you will need to call a manager to meet you if they need access to the money compartment. Offer to show the officer the manifest/delivery details in both OnFleet and Treez. If they ask to confiscate the product If the officer wishes to confiscate the product, politely tell the officer that you are within your rights take a photo of the products in question before they are confiscated. Unlock and open the product side of the inventory box, take photos of the product inside and allow the officer to take the product. Call your manager immediately, they will advise you to go back to base to fill out an incident report. Traffic Stop Protocol In the event you are pulled over while driving, exhibit extreme politeness, address the officer as ‘Sir’ or ‘Ma’am’, and adhere to the following communications: SAFETY PLAN 4.2 SECTION 4 Describe the proposed accident and incident reporting procedures. Additional Reporting Requirements HerbNJoy operating procedures and policies require the following additional reporting to take place as expressed in terms of notified party, timing and content: Mandatory Notifications Overview a.The current emergency regulations require the licensee notify the Bureau for a wide variety of reasons, from the mundane (temporary loss of internet connectivity)to natural disasters.Premise Modification requires pre-approval.These are compiled here into a single list,to assist the General Manager in continuing compliance monitoring.The General Manager will remain familiar with these, and immediately notify the Bureau when appropriate. Critical Official Notifications •The following events shall trigger mandatory notification of the Bureau, pursuant to their unique particular reporting requirements: o Any change to any item listed on the application (except changes to standard operating procedures). o The licensee employs 20 or more employees. o Any ownership change outside certain conditions. o Any change in persons with financial interest(s) o In advance of any change of premises. •In the event that the corporation has a successor in interest,the Bureau shall be notified. •Business Modifications -When any of the following changes occur, HerbNJoy will notify the BCC within 14 calendar days of the change:(i) contact information;(ii)any change in HerbNJoy’s legal name;(iii)any change in business trade name (DBA)or fictitious business names;(iv) any change to financial information;and •Any change in the surety bond.HerbNJoy will notify the BCC of any such changes by submitting the Notification and Request Form. SAFETY PLAN 4.2 SECTION 4 Describe the proposed evacuation procedures. This emergency evacuation plan is extracted from HerbNJoy’s operations and policy manual. In the event of a fire within the company’s premises, on the shared property or approaching imminent threat (fire advancing toward the company), the following steps and responsibilities must be executed: •On-duty EAP Warden is notified -All/Anyone •Manual fire alarm is pulled -Warden/ If unavailable Anyone •911 is called -Warden/ If unavailable Anyone •Evacuate the premises -Execute the Evacuation Plan -Warden/Manager Overview The proposed location in Fresno consists of approximately 2,500 square feet consisting of 1 inventory storage vault room, a retail sales floor, administrative work area, single bathroom and a receiving/unloading area. Ingress and egress are facilitated by a single man door at the rear of the building and a public entrance at the front of the building. The evacuation plan is designed to utilize the single man door at the rear of the building equipped with panic hardware and an outward swing. The evacuation plan encompasses the following elements: Route Map (Attached) •Evacuation Route maps color coded to clearly designate the path of evacuation quickly and easily. Maps posted at all doors, including the designated assembly area •Evacuation roles and responsibilities (EAP Wardens) •Evacuee role call •Training schedule •Unannounced evacuation drills monthly (logged) •An employee alarm system SAFETY PLAN 4.3 SECTION 4 Describe the proposed accident and incident reporting procedures. Additional Reporting Requirements •Any material or substantial changes to the premise require writing pre-approval from the Bureau (Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway, or passage alters or changes limited- access areas within the licensed premises). •Any change to the business location, organizational structure, or ownership structures requires the pre-approval of the Fresno Director of Development Services. •No physical modification of the permitted premises is allowed without written prior permission by the City of Fresno and payment of any additional fees required by the City. Pre-Approval Notifications Emergency and Community Relations Contacts HerbNJoy’s Emergency Contact, Jeff Linden, is an on-site owner to whom emergency notice can be provided 24 hours per day via mobile telephone at (209) 623-8937.HerbNJoy’s Community Relations Contact,Tristan Matthews,can be notified of problemsassociated with HerbNJoy via telephone at (559) 779-3938 or via email at Fresno@HerbNJoy.com.HerbNJoy will provide its Community Relations contact information to all businesses and residences located within 100 feet of HerbNJoy.We will also provide information on educational institutions that outline the risks of youth use and addiction to cannabis and identify all resources available. SECTION 4 Describe the proposed accident and incident reporting procedures. Additional Reporting Requirements •The following events shall trigger mandatory notification of the Bureau (within 48 hours): o A criminal conviction of any owner o A civil penalty or judgment rendered against the licensee or any owner o Revocation of a local license, permit or other authorization •The following events shall trigger mandatory notification of the Bureau and local law enforcement (within 24 hours): o Discovery of a significant discrepancy in inventory, diversion,theft,loss, or any other criminal activity either pertaining to the operations of the licensee, or by an agent or employee o Loss or unauthorized alteration of records related to cannabis goods, customers,or the licensee’s employees or agents,or any other breach of security •In the event of a disaster: o If it prevents the licensee from complying with any licensing requires,the licensee shall immediately notify the Bureau and request relief o If the licensee needs to move cannabis goods in an emergency fashion, the licensee shall first contact local law enforcement before moving goods, and then immediately contact the Bureau after moving the goods •If a licensee is unable to resolve a compliance notification within three business days of receiving the notification,the licensee shall notify the Bureau immediately. •The following events shall trigger mandatory notification of the Police Chief: o A discrepancy of more than $1,000 in inventory over a period of 24 hours or $3,000 over period of 7 days o A reason to suspect diversion,loss,theft or any other criminal activity pertaining to the operation of the commercial cannabis business o The loss or alteration of records related to cannabis goods, registered medical cannabis patients, caregivers or dispensary employees or agents o Any other reason to suspect any other breach of security SECTION 4 Describe the proposed evacuation procedures. Company Emergency Action Plan (EAP) continued Emergency Evacuation Procedures (as posted in our stores) Evacuation Procedure Step One Cease all work immediately Step Two Visually check to ensure the evacuation path is clear and safe Step Three Proceed directly quickly and calmly (walk not run) to the designated assembly area. Use the evacuation map at each door to guide you if needed Step Four Notify your EAP Warden that you have assembled safely and correctly Step Four Return to your work area only after the Warden has given the “All Clear” notification SAFETY PLAN 4.3 SECTION 4 Describe the proposed evacuation procedures. Emergency Evacuation Plan (Map/Route) SAFETY PLAN 4.3 SECTION 4 Extinguisher & Suppression Plan (Map) SAFETY PLAN 4.4 Location of fire extinguishers and other fire suppression equipment. The proposed location at 210 Van Ness Avenue is not sprinklered. Based upon our initial review of the proposed site, size and proposed use, it does not require a sprinkler system SECTION 4 SAFETY PLAN 4.5 Describe procedures and training for all fire and medical emergencies. Safety Plan & Safety Training HerbNJoy management in conjunction with our Safety consultant Paul Gantt at Safety Compliance Management “SCM” trains our opening staff for fire and medical emergencies and conducts annual refresher training to accommodate new employees and audit compliance. Training topics include,but are not limited to: •Security Awareness •Preventing W orkplace Violence •Armed Offender Response •Incident Response •Handling a Violent Visitor •Internal Larceny •Emergency and Fire Safety •First Aid •Emergency Action Plan •Natural Disaster Response •Crowd Control •Loss Prevention •Product Handling •Security Guard Responsibilities •Acceptable Forms of Identification •Maintaining Secure Exits &Entrances •Video Surveillance •Cash Handling Procedures •Armored Cash Pickup •Securing Product Deliveries •WorkplaceSafety •Hazard Identification &Minimizing Exposure •Bomb Threat •Suspicious Package •Gas Leak •Burglary &Robbery In the event of a medical emergency, the employee or manager on duty (MOD) will call 911 and wait with the injured party for police or emergency assistance to arrive. We have a First Aid Kit on-site at all times where staff can access it. Sao Pires is an owner, nurse, and CPR Training Instructor and she will make sure the managers of our Fresno store are CPR certified as well have done at our other locations. This will at least allow the MOD to attempt to save/stabilize an individual who experiences a medical emergency and needs immediate assistance on our premises until an EMT arrives. SECTION 4 Describe procedures and training for all fire and medical emergencies. Emergency Fire Protocol As previously outlined in Sec. 4.1, in the event of a fire, whether in the company’s unit, on the shared property, or approaching eminent threat (fire advancing toward the premises), the employees and managers have been directed to follow the Emergency Fire Protocol. This is designed to keep them safe and minimize risk to the employees. ●Smoke detector alarm is engaged and/or the manual fire alarm is pulled ●MOD quickly assess fire: ○If small, MOD will attempt to put out the fire with the fire extinguisher ○If too big to extinguish, the MOD will evacuate all employees from the building ●MOD or anyone available calls 911, reports the fire, and gives all known information to the dispatcher ●When emergency services arrives, direct them to the location of the fire and wait outside Fire On The Premises ●Manual fire alarm is pulled ●MOD evacuates all employees from the building ●MOD or anyone available calls 911, reports the fire, and gives all known information to the dispatcher ●When emergency services arrives, direct them to the location of the fire and wait outside ●Follow all instructions given by emergency workers Fire On The Property Or Approaching Fire Threat SAFETY PLAN 4.5 33'-0" 7'-8" 9'-6" 13'-2" VAULT 0 z (j STEEL PLATE <( z CLADDING OVER 9 <-'> TRACK/ METAL STUD WALL -0 Zw TRACE ASSEMBLY AND DOOR a.. u a.. w :r:G:: � SECURITY MGR. 9 0 OFFICE b 0 � !::: i' N""<" _Jo ** <I (/) (/) 00 �-a.. a.. 81 �C') ** o. (/) (/) �I oo a.. a.. '() 0 0 "_J I< -�0 0 18 FLOWERS 9 ·O 0 0I� N . '() 0 0 POS #5 POS #6 SECURITY CHECK/ EXPRESS ORDER '-0" 9'-2" 33'-0" PROPOSED EVACUATION PLAN SCALE: 3/32" 1 ' Q" 9 b b 6 i' LC) ""<" PROPOSED TENANT IMPROVEMENT: FRESNO ERUDITE VENTURES � 210 VAN NESS AVE � FRESNO, CA 93721 ; PLANNING ■■■ ! ARCHITECTURE ■■■ �■ ■ap1 ARCHITECTURE PLUS INC. 4335-B NORTH STAR WAY g MODESTO, CA 95354 ! NORTH ph. 209.577.4661 : Ix. 209.577.0213 i www.apiarc.com api COPYRIGHT 2020 Evacuation Route Assembly Area 50ft clear of Bldg 33'-0" 7'-8" 9'-6" 13'-2" VAULT 0 z (j <( z 9 <-'> TRACK/ -0 Zw TRACE a.. u a.. w :r:G:: � SECURITY MGR. 9 0 OFFICE b 0 � !::: i' N""<" _Jo ** <I (/) (/) 00 �-a.. a.. 81 �C') ** o. (/) (/) �I oo a.. a.. '() 0 0 "_J I< -�0 0 18 FLOWERS 9 ·O 0 0I� N . '() 0 0 POS #5 POS #6 SECURITY CHECK/ EXPRESS ORDER '-0" 9'-2" 33'-0" FIRE EXTINGUISHER PLACEMENT SCALE: 3/32" 1 ' Q" 9 b b 6 i' LC) ""<" PROPOSED TENANT IMPROVEMENT: FRESNO ERUDITE VENTURES � 210 VAN NESS AVE � FRESNO, CA 93721 ; PLANNING ■■■ ! ARCHITECTURE ■■■ �■ ■ap1 ARCHITECTURE PLUS INC. 4335-B NORTH STAR WAY g MODESTO, CA 95354 ! NORTH ph. 209.577.4661 : Ix. 209.577.0213 i www.apiarc.com api COPYRIGHT 2020 Fire Extinguisher Placement SECTION 5 SECURITY PLAN LOCATION SECTION 6 SECTION 6 LOCATION 6.1 In addition to the location-related details provided in the Commercial Cannabis Business (CCB) Application (pages 1-7), the application shall include a thorough description of the proposed location, including but not limited to the overall property, building, and floor plan. The Proposed location for HerbNJoy’s retail storefront is 210 Van Ness Ave. The building is approximately 7,500 square feet in size and HerbNJoy is proposing to occupy 2,500 square feet on the north side of the parcel. The entire building is currently vacant. However, it is our understanding that a wholesale electrical supply company is planning to occupy the remaining 5,000 square feet on the south end. The proposed HerbNJoy space currently has a storefront (double doors) and a single man door in the rear. The man door will remain to serve as employee entrance and securely receive shipments. The storefront door and window assembly will be upgraded aesthetically and converted to a single door into a secured foyer. The parcel size is .33 acres with paved access surrounding the entire perimeter and a total of 22 parking stalls are planned (this includes adjacent on-street parking). In addition to the interior tenant improvements, HerbNJoy shall work with the landlord (and business partner) to upgrade the façade of the entire building in including façade, landscaping, lighting and exterior amenities. HerbNJoy utilizes Fresno based, Facility Designs, for all of its California locations (including Beverly Hills and San Francisco). They are designing our Fresno project. LOCATION 6.2 SECTION 6 The application shall include at least one (1) photograph of the front (street side) of the building or street view of the vacant parcel. LOCATION 6.2 SECTION 6 The application shall include at least one (1) photograph of the front (street side) of the building or street view of the vacant parcel. SECTION 7 COMMUNITY BENEFITS & INVESTMENTS PLAN SECTION 7 COMMUNITY BENEFITS &INVESTMENTS 7.1 The CCB Application should describe the social responsibility plan. This should include all benefits the CCB has provided or plans to provide to the local community, for example by directly aiding, participating in, or funding the work of local non-profits, community-based organizations, civic organizations, or social services organizations. Benefits may be in the form of volunteer services, monetary donations, financial support of City-sponsored activities or organizations, in- kind donations to the City or other charitable organizations and/or any other economic incentives to the City. It may also include, but is not limited to: HerbNJoy has a company match policy in place for all the communities in which we operate, and we encourage our employees, managers and owners to volunteer to the communities in which they live. To date, our teams have given hundreds of hours of effort to their local non- profit or cause of choice. Therefore, we commit with enthusiasm to four (4) hours of volunteer time per employee/owner per month. This effort will be coordinated and documented by our Community Relations Director, Tristan Matthews. Local government budgets and city-sponsored agencies and non-profits are encountering financial struggles since the pandemic began earlier this year and we will provide financial support to organizations through monetary donations when volunteering is simply not enough. HerbNJoy welcomes the opportunity to strategize with the County of Fresno on implementing progressive environmental action plans to positively benefit the City. As part of our Corporate Social Responsibility Pledge, we promote sustainability initiatives in three key ways: our local commitment, measures to avoid emissions and energy conservation. HerbNJoy will be an ambassador of the County of Fresno’s environmental programs. We are committed and fully support the County of Fresno’s plan to construct the Environmental Compliance Center facility to assist residents in our community with the disposal, reuse, and recycling of common household waste that requires special handling. We hope to grow a meaningful partnership with the City’s Resource Division to support its environmental programs including the Used Oil Recycling Program on our hybrid, energy-efficient vehicles, Turning it Around 2020 Recycling Program at our store, and being a part of the County of Fresno’s Green Business Program. Since HerbNJoy is not a manufacturing or cultivation facility, we do not generate an excessive amount of waste. Our environmental measures are outlined on the following page and include, but are not limited to, the following categories: Structural, Policy, and Daily Initiatives. SECTION 7 Incorporating an environmentally sustainable business model including energy efficient buildings and vehicles. Recycle -as listed above shall be part of the daily culture in accordance with the City’s Turning it Around 2020 Recycling Program Alternative Transportation –we will install bike racks and offer a “Green Commute” incentive program for employees and customers Energy Use Controls -Thermostat and lighting controls shall be set to minimum viable levels dependent upon weather, time of day and business conditions. These controls shall be both automated and manual. Tablets and computers will be powered down each night. Other Employee Incentives -HerbNJoy shall elect an environmental monitor from its staff to watchdog our green efforts and bring forth new ideas. Employees will receive a $50.00 reward for any energy-saving or green idea that is put into practice by the company or the community. Overview LEEDS Certification -HerbNJoy shall construct its tenant improvements (and overall building) in an environmentally focused manner to earn a minimum LEEDS Silver certification. We promote the use of “high efficiency mechanical systems” and energy star rated equipment. Fuel-Efficient Hybrids -Delivery Vehicles (3) shall all be plug-in hybrid models classified by the state as “low-emission”. Pure electric vehicles for cannabis delivery pose additional risk therefore we opted for the hybrid. These will be purchased from local car dealerships. LED Lighting -Wherever possible Fresno shall utilize LED technology for lighting and OLED for video display. Water Conservation -Toilets and Faucets shall be “low-flow” and water conserving above the state standard. We will monitor for leaks routinely and repair any immediately. The only wastewater that will be generated is from handwashing and sewage. Structural HerbNJoy shall conduct its business in an environmentally responsible manner. This includes both strategic initiatives and daily actions. The following is a list of structural initiatives, policy items, and daily actions that are currently planned for our project in Fresno. To the extent allowable by site, local code and feasibility, the HerbNJoy brand has incorporated all of the policies and initiatives cited below into their current operations. Recycle -HerbNJoy will recycle to the maximum sortation level available in Fresno with appropriate signage, bins and supervision. Partners -HerbNJoy shall choose business partners that are environmentally responsible. Decision Making -Company decisions shall be passed through a “green” filter with a member of the staff serving as HerbNJoy’s environmental monitor. Policy Daily COMMUNITY BENEFITS &INVESTMENTS 7.1 SECTION 7 Utilizing vacant buildings, brownfields land, or blighted areas of the city for the business. Overview HerbNJoy has selected the vacant building at 210 Van Ness Ave as its proposed site for its Cannabis Retail Store. HerbNJoy is proposing to spend over 1 million dollars on site and tenant improvements. These include bringing the site up to current code, creation of a modern understated façade for the entire building and introducing a landscape and lighting plan that is consistent with city of Fresno aesthetic objectives. COMMUNITY BENEFITS &INVESTMENTS 7.1 SECTION 7 Providing funding for or hosting expungement clinics or outreach services. Four (4) times per year, HerbNJoy will host public outreach meetings specifically for the public at large. These will be well advertised and noticed. Pending the city providing a preference, they will either be held at local food and coffee establishments, or at HerbNJoy. Through these meetings, Bill Matthews and Shunna McFarland will help HerbNJoy present a quarterly report to the community and solicit feedback for improvement or civic need. We truly believe that communication is key and quarterly meetings will help us address at act on any concerns/ideas more quickly. Ongoing Educational Programming (Quarterly) Four (4) times per year,under the direction of Amanda Howard and Sao Pires, HerbNJoy will host a public information program to inform City residents of cannabis issues and the proper, safe, and legal use of cannabis products. We are proposing to roll out this program to Fresno regardless of selection as we are operating in nearby Hanford and we believe it is a valuable public service. This programming will feature fact-based material from reputable subject matter experts. This will be expressly educational, and non-partisan or biased. These will begin after the commencement of operations. Locations will move throughout the city, to different locations as appropriate (e.g., educational matters for Seniors may occur at a Senior Center). The first four presentations will be: •CBD and Childhood Seizures (Summer 2021) •Seniors and Fresh Cannabis Juicing (Fall 2021) •Combating the Black Market (Winter 2021) •Industrial Hemp (Spring 2021) Quarterly Public Outreach Meetings HerbNJoy has partnered with the cannabis law firm Clark Howell to underwrite and execute an expungement clinic on-site at our proposed location. This would be a free service and open to the public. Clark Howell will operate the program and HerbNJoy will underwrite the cost without qualification. Tristan Matthews will utilize her legal experience to oversee this important program. Expungement Clinics & Services COMMUNITY BENEFITS &INVESTMENTS 7.1 SECTION 7 Social Justice is just one component of our planned Community Benefits Plan. HerbNJoy has also identified several other charitable organizations doing great work in Fresno that it intends to support including: Boys & Girls Club Since 1989, Boys & Girls Club of Fresno has been a cornerstone of the Fresno community, providing a safe, structured and positive environment for young people after school. Today, Boys & Girls Club serves approximately 2,500 youth annually, inspiring and enabling them to reach their full potential as productive, responsible, and caring citizens. D.A.R.E.’s purpose is help children lead safe and healthy lives free from violence, substance use, and other dangerous behaviors. This highly acclaimed program reaches millions of school children around the world, teaching students the decision-making skills they need to avoid involvement in drugs, gangs, and violence. Steve Abercrombie of the Tracy Police Department is the Northern California Coordinator for DA.R.E. HerbNJoy works with Mr. Abercrombie to provide financial support for his efforts, particularly for its San Joaquin County chapter which is managed through the Ripon Police Department. D.A.R.E. Describe the Commercial Cannabis Business plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction. COMMUNITY BENEFITS &INVESTMENTS 7.2 SECTION 7 Describe the Commercial Cannabis Business plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction. Advance Peace is dedicated to ending cyclical and retaliatory gun violence in American urban neighborhoods by providing high-touch, personalized fellowships to young men involved in lethal firearm offenses. Working with both public and community-based stakeholders to establish responsive community- driven strategies, Advance Peace helps bridge the gap between anti-violence programs and the hard- to-reach population at the center of violence in urban areas. Advance Peace is able to break the cycle of gun hostilities, thus altering the trajectory of the lives of these men and their families. Advance Peace has been incredibly successful at reducing gun violence, improving the general health and wellbeing of its Fellows, and increasing public safety in the cities/neighborhoods where it has been instituted.As a result of their efforts, Richmond, California,experienced a 66% reduction in firearm assaults causing injury or death between 2010 and 2017. In recent years, Advance Peace has expanded to San Joaquin Valley cities such as Fresno, Stockton and Sacramento. HerbNJoy intends to financially support Advance Peace. Furthermore, if police, civic and community leaders believe that Advance Peace can works well in the City of Fresno, HerbNJoy would be proud to invest time and financial resources to such an impactful program. Advance Peace was founded by Devone Boggan in Richmond, California, which at the time, was considered one of the 12 most Advance Peace dangerous cities in America. In 2009, the police department of Richmond informed Mr. Boggan, then the director of the city’s Office of Neighborhood Safety, that less than 30 men were responsible for 70% of the city’s gun crime. The following year, Boggan responded by creating and launching the Peacemaker Fellowship™model, which would become the core of Advance Peace. COMMUNITY BENEFITS &INVESTMENTS 7.2 SECTION 7 Describe whether the Business plans to contribute to the Fresno Community Reinvestment Fund, established to support local cannabis equity businesses. HerbNJoy (Fresno Erudite Ventures) commits 4% of its gross revenue to benefit the community of Fresno. As such this creates an estimated annual contribution exceeding in year two of operation. HerbNJoy will make all or a portion of this committed contribution to the Fresno Community Reinvestment Fund. Our local community liaison will work with the city to determine the appropriate allocation of our annual contribution This commitment is included in our stated financial plan. Annual Summary COMMUNITY BENEFITS &INVESTMENTS 7.3 SUMMARY In summary, HerbNJoy respectfully affirms that it merits the opportunity to apply for a cannabis retailer permit in the City of Fresno. First, the proposed business is modeled on a proven, trustworthy, and popular formula, HerbNJoy in Santa Barbara, Walnut Creek and Redwood City. By bearing the same established brand name, HerbNJoy would generate excitement and momentum in the marketplace as consumers respond to the positive brand identity in learning that HerbNJoy is coming to Fresno. Second, HerbNJoy’s team of seasoned and diverse experts provide the experience needed to ensure the project will be a success.Unlike other applications which may require a gamble on an unproven team, HerbNJoy’s projects draw together some of the most proven and talented names in the industry,providing a firm foundation and a genuinely knowledgeable and reliable team. Third,the HerbNJoy ownership team is as diverse as any other that will come before the adjudication panel, with, among other things, an inclusive culture reflected in the leadership of multiple people who are ethnic minorities. These appointments testify to an organizational philosophy of ensuring opportunities for all, as evidenced also in the community outreach collaboration with Merced based student organization, SWAG (Students With Aspiring Goals). This offers assurance that HerbNJoy will be a beacon of mentorship, social equity and cultural inclusion.These principles are shared by all members of the ownership team are a perfect match forFresno’s values and identity. Fourth, owing to the applicants’ previous excellent record in running successful businesses, HerbNJoy is in a strong financial position which insulates it against market fluctuations during the crucial early days of establishing a new business, and also allows for investment in high-quality products, and a high-quality retail experience. Fifth, and most importantly during this seminal time in establishing the California cannabis industry’s reputation, the applicants have a spotless compliance record, which is indicative of the responsible, accountable, and transparent approach they have taken and will continue to take with regulators in the City of Fresno.