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HomeMy WebLinkAboutC-20-101 Stease Co RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-101 Submitted On: Dec 04, 2020 Applicant Steven Silva ss@sbsilva.com Applicant (Entity) Name: Stease Co. DBA: -- Physical Address: 8050 N. Palm Avenue, Suite 300 City: Fresno State: CA Zip Code: 93711 Primary Contact Same as Above? Yes Primary Contact Name: Steven Silva Primary Contact Title: CEO Primary Contact Phone: Primary Contact Email: ss@sbsilva.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: Steven J. San Sebastian Proposed Location Address: 748 Fulton Street City: Fresno State: CA Zip Code: 93721 Property Owner Phone: 5599307218 Property Owner Email:Assessor's Parcel Number (APN): 46825609 Proposed Location Square Footage: No 1 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 1 Letter to Reader To Whom it May Concern: Thank you for taking the time to consider Stease Co. (“Stease” or the “Company”), as a cannabis retail business opportunity in the City of Fresno. Stease is a combination of “style” and “ease” and typically describes one’s personal touch, flavor, or funk in which comes naturally and sets one apart from others in the world in how he or she operates. This natural separation from the pack has been the theme of each of the members of Stease throughout their careers in each of their respected professional fields. We are excited to present this permit application and are confident we have included requisite information to elicit follow up conversations in hopes of moving towards a commitment for Stease to be one of the approved cannabis retail businesses in District 3 in the City of Fresno. Our founder and CEO, Steven Silva, is a Fresno local who has over 11 years of influential industry experience as a leading design consultation, engineering, and equipment supplier to the global cannabis industry. To date, Steven’s consulting experience totals approximately 6,000,000 square feet of indoor and high-end greenhouse cultivation, extraction, and edible manufacturing developments from top companies and brands in the cannabis industry across 13 states and 4 countries. Given his deep skill set and ‘seed to sale’ understanding of the industry, Silva is well-positioned to leverage his existing knowledge and industry relationships to create a premiere cannabis dispensary that Fresno should be proud to call its own. From the start of his career, Steven has conducted business following the mantra: “Always stand on stable boards by operating with integrity, continuous improvement, and putting relationships before business”, which is evidenced by his high percentage of repeat business and undeniable acclaim with industry participants. Beyond the business owner’s industry experience, Stease’s Management is supported by a robust Board of Directors that all have diverse backgrounds in law, business, regulatory environments, security, investments, marketing, and accounting. Sincerely, Steven B. Silva Stease Co. Founder/CEO STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 2 1. Business Plan Corporate Offices/Mailing Address: Stease Co. 8050 N. Palm Avenue, Suite 300 Fresno, CA 93711 List of Responsible Persons Involved in Operations of the Business: Name Title Present Address Phone Steven Silva Chief Executive Officer Ryan Schonfeld (RAS Watch) Head of Security Joshua Craig Sales Manager Alton Duke Doulphus Jr. Sales Manager Dylen Campbell Sales Manager Bradley Silva General Counsel Keenan Soares Cannabis Retail Advisor List of Investor Name(s): The following information shall remain confidential. Name Present Address Phone Bankson, Dustin J. Bopp, William S. Johnson, Mathew J. Johnston III, Leo S. Pacheco, Chris L. Pacheco, John A. Papulias, Marie Pappas, George San Sebastian, Steven A. Schonfeld, Ryan STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 3 Silva, Bradley A. Silva, Jessica A. Silva, Steven B. Managers, Supervisors: Joshua Craig Sales Manager Lawrence “LJ” Lopez Sales Manager Alton “Duke” Doulphus Jr. Sales Manager Currently hiring for personnel positions. Names and Address of all businesses operated by/applicant for previous five years: SB SILVA, LLC 8050 N. Palm Avenue, Suite 300 Fresno, CA 93711 Involvement in any litigation in the last five years? No. Address of any Commercial Cannabis Business Currently Owned by Applicant. N/A at Current Liaison to the Police Department: RAS Watch (Ryan Schonfeld) Head of Security Designated Security Representative/Liaison: RAS Watch (Ryan Schonfeld) Head of Security Emergency Contacts: RAS Watch (Ryan Schonfeld) Head of Security Steven Silva Business Owner Joshua Craig Sales Manager Lawrence “LJ” Lopez Sales Manager Alton “Duke” Doulphus Jr. Sales Manager Community Relations Contact: RAS Watch (Ryan Schonfeld) Head of Security Steven Silva Business Owner *Contact to be provided to all businesses within one hundred (100) feet. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 4 Application Criteria and Background Information: Section 9-3318 (a.) (1.) (2.) (3.) (4.) (5.) (6.) (7.) (8.) (9.) (b.) (c.) (1.) (2.) (3.) (4.) (5.) (d.) Have any of the business owners, investors, or managers of the Stease had a cannabis license or permit suspended or revoked by any city, county, city and county, or any other state cannabis licensing authority within five (5) years of the date of this application? No. Is there any evidence that any of the business owners, investors, or managers of Stease reflects non- compliance of properly paying federal, state, or local taxes and/or fees when notified by the appropriate agencies? No. Have any of the business owners, investors, or managers of the Stease conducted commercial cannabis activity in the city in violation of local and state law as of the date of the application submittal? No. Have any of the business owners, investors, or managers of the Stease been convicted of illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act? This includes cannabis related offenses after the passage of the Compassionate Use Act of 1996. No. Have any of the business owners, investors, or managers of the Stease been convicted of a violent felony, a crime involving moral turpitude, a crime involving lotteries, gambling, bookmaking, larceny, perjury, bribery, extortion, fraud, theft, or embezzlement, nor has been convicted of prostitution, pimping, human trafficking, or pandering, nor has been convicted of any crime substantially related to service or entertainment business? No. Have any of the business owners, investors, or managers of the Stease violated any provisions of Article 33 of the Fresno Municipal Code? No. Have any of the business owners, investors, or managers of Stease knowingly made a false statement in his application or to any city officer, employee, or agent? No. Have any of the business owners, investors, or managers of the Stease been noticed, charged, cited, or convicted of violating any law or ordinance relating to the operation of a commercial cannabis activity? No. Is it true that applicant and business owners of the Stease have entered into an agreement to lease proposed property at fair market value, and such lease, or sublease, or agreement does not have any terms or conditions for the cannabis permit licensee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the city? All leases, subleases, or other agreements shall be based on a monthly rate. Yes. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 5 1.1. Owner Qualifications: Steven Silva (Founder/CEO) STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 6 Below is a refined list of leading Commercial Cannabis Businesses that Steven Silva and his team have directly designed, selected and sold process equipment to, provided technical support through installation, start-up, commissioning, Entitlements/CUP, and/or provided engineered construction drawings for:  Greenbrier, Parlier – Manufacturing/Kitchen/Distribution  Caliva, San Jose – Vertically Integrated  CA Collective, San Jose – Vertically Integrated  Airfield, San Jose – Vertically Integrated  92 Pullman (now Cookies), San Jose – Vertically Integrated  Purple Lotus, San Jose – Vertically Integrated  Cookies Campus, Oakland – Indoor Cultivation/Manufacturing/Kitchen/Distribution  Korova, Oakland – Manufacturing/Kitchen/Distribution  Sublime Canna, Oakland – Manufacturing/Kitchen/Distribution  Monterey Kush Co., Salinas – GH Cultivation/Manufacturing/Distribution  Boutique Unlimited, King City – Indoor Cultivation/Manufacturing/Distribution  Zenco Capital, Desert Hot Springs – Indoor Cultivation  Funtime Bros., Lancaster – Indoor Cultivation/Manufacturing/Kitchen/Distribution  Halo Labs, Ukiah, CA – Indoor Cultivation  Honey Butter Rosin, Ukiah, CA – Indoor Cultivation/Manufacturing/Kitchen  Calvista, Rio Vista, CA – Microbusiness  GTEC Bio Pharma, Kelowna, BC – Indoor Cultivation  F20/GTEC, Vernon, BC – Indoor Cultivation  TILT Holdings, Taunton, MA – Indoor Cultivation  Matrix NV, Las Vegas, NV – Indoor Cultivation  Deep Roots, Mesquite, NV – Indoor Cultivation  Ultra Health, Bernalillo, NM – GH Cultivation  Green Country Research, Tulsa, OK – Indoor Cultivation  Net Zero, Gonzales, CA and San Francisco, CA – Indoor Cultivation, Manufacturing  And many more Additional Owner Resumes: Bankson, Dustin: Mr. Bankson, a U.S. armed forces Combat Veteran, served multiple tours/combat deployments overseas including Operation Enduring Freedom and Operation Iraqi Freedom to support the Global War On Terrorism (“GWOT”). Bopp, William: Mr. Bopp enjoys a successful career as a stockbroker and is now an independent investor in various businesses in the Central Valley. He holds several leadership roles in his community and is well- respected amongst his peers. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 7 Johnson, Mathew: Mr. Johnson is a tenured equipment supplier to the lighting and HVAC industry with long- term, and repeat, engagements stemming from the cannabis industry. He currently owns and operates a successful mechanical and plumbing consulting firm based in Los Gatos, California. III Johnston, Leo: Mr. Johnston is a highly-regarded investor and entrepreneur in the Central Valley known for his industrial-based companies, encompassing high-quality products and services provided for customers for multiple decades. Pacheco, Chris: Mr. Chris Pacheco is a highly-visible entrepreneur as he owns and operates radio (e.g., 95.7 FOX, New Rock 104.1, ESPN 940 & 790, KJEWEL 105.5, 99.3 NOW), media ad agency and signage companies (e.g., Quick SIGNS, MGA Prints, A-Plus Signs) in the Central Valley. Pacheco, John: Mr. John Pacheco, brother of Chis Pacheco, is a long-term investor and advisor to various clients in the state of California. Mr. Pacheco retains a broad financial and diligence skill set which have awarded him access to highly-regarded investment opportunities over the past several decades. Papulias, Marie: Mrs. Papulias is a long-time resident of Fresno with strong roots in the farming and meat seasoning business. Her son currently owns and operates Fresno’s Pappy’s Fine Foods where she is a valued advisor to the firm. Pappas, George: Mr. Pappas and his company (established 1933), pick, pack and ship produce to some of the nation’s largest big-box retailers. Pappas serves as a figurehead to the Mendota community as he employs hundreds of the city’s hardworking residents. San Sebastian, Steven A.: Mr. San Sebastian currently works for the Fresno Auction Company and has been an auctioneer for the firm for approximately 10 years. Mr. San Sebastian has representative experience in the sales and marketing field. Schonfeld, Ryan: Mr. Schonfeld is one of California’s top security professionals as he recently raised significant capital for his security company RAS Watch to extend security-as-a-service to small and medium- sized businesses. Additional information on Mr. Schonfeld can be found in this application’s security plan section. Silva, Bradley: Mr. Silva is a tenured attorney with ample experience in the Central Valley, particularly pertaining to agriculturally-related clients and civil litigation. He holds several leadership positions in his community and has a highly-regarded reputation for providing high-quality service to his clients. Silva, Jessica: Mrs. Silva is a Periodontist with an extensive resume stemming from her medical schooling at some of the nation’s top-rated dental programs. She is known as one of the leading female Periodontists in the western United States and enjoys an impeccable reputation amongst her peers. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 8 Stease intends to utilize these leading cannabis companies and clients as supply chain partners to maintain a popular, yet, diverse inventory of cannabis products in efforts to provide all customers with options, variety in prices, and a transparently reliable supply chain. Stease shall also utilize Keenan Soares (prior client of Silva’s) as our Cannabis Retail Advisor. He is the owner and founder of CDev, LLC (DBA CannDev), a cannabis retail development firm since 2016, that has been successful in obtaining cannabis use permits in emerging markets. After multiple years he has been involved in developing 27 retail projects, and 2 production projects throughout California. To date he has successfully played a part in the receipt of over a dozen licenses. His retail projects in development near Fresno include locations in Los Angeles, Oxnard, Pomona, Tracy, Fairfield, and San Francisco. He and his team will play a key role as an advisor for the Stease Management Team. Business Description: Section 9-3304 Definitions "Cannabis retail business" means a business where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid commercial cannabis business permit from the city authorizing the operation of a retailer, and a valid state A-license or M-License as required by state law to operate a retailer. Stease shall operate within strict compliance within scope of the definition of a cannabis retail business, as defined by Article 33 of the Fresno Municipal Code, Section 9-3304. Stease shall operate within the proposed location as a fixed establishment and delivery that offers cannabis, cannabis products, and devices for the use of cannabis or cannabis products. Stease shall operate pursuant to express authorization, cannabis and cannabis products as part of a retail sale. Operator shall hold a valid commercial cannabis business permit from the city authorizing the operation of a retailer, and a valid state A-license or M-license as required by state law to operate. In accordance with Article 33 of the Fresno Municipal Code, Section 9-3305, Stease shall not engage in any commercial cannabis activity within the city unless the person has the following requirements are met and maintained within compliance: i. Has a valid commercial cannabis business permit from the city ii. Has a valid state license iii. Has a valid Cannabis Conditional Use Permit iv. Is currently in compliance with all applicable state and local laws v. Has a Cannabis Business License Tax certificate Stease is a brand of cannabis retail store/dispensary that will provide unparalleled customer service and shopping experience for all varieties of cannabis consumers, novice and expert. The Stease retail store/dispensary will be located in the South Stadium District and Brewery District within the Historic Fulton Corridor in Downtown Fresno, California. The location is well-positioned, and it matches the ideal picture of a community store and culture of the Fulton District. Although the STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 9 cannabis retail business is launching with a single location in the City of Fresno and State of California, this location is designed to be the flagship location and main headquarters of the Stease cannabis brand. Ownership, Management, Employees, and the majority of the Investors shall all be Fresno residents and will carry on with a locally-managed and operated cannabis business in a historic and gentrified location in the city. As the business continues to increase in demand and popularity with brand recognition resembling a quality cannabis retail business, the future growth strategy would be to include additional locations in the greater Fresno metropolitan area and Central Valley. Many cannabis companies seek multi-state operations throughout the United States, but the strategy behind Stease, as a Fresno-based company, is to establish and maintain a Fresno presence first, a Central Valley presence second, and potential expansion beyond the valley or State of California third. Market Opportunities: According to the report by Arcview Market Research and BDS Analytics: “The Road Map to a $57 Billion Worldwide Market”1, spending on legal cannabis worldwide is expected to hit $57 billion by 2027. The recreational cannabis market will cover about 67% of the spending while medical cannabis will take up the remaining 33%. The North American legal cannabis market amounted to almost $14 billion in 2019, growing by 30 percent on the year. The largest market was the Unites States, which totaled $12.2 billion. It was followed by Canada with about $1.7 billion. Analysts predict the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5 billion by 2021 with the compound annual growth rate (CAGR) to over 20%. With the adoption of the 2020 initiatives, about 33% of the population now lives in jurisdictions that have legalized recreational cannabis, and 70% of all states have approved cannabis for medical use. 1 https://arcviewgroup.com/research/reports/ California Cannabis Market: In 1996, California became the first state to allow for medical cannabis use. State voters approved Proposition 215; the law that made it legal for doctors to recommend cannabis to patients. California has 482 cities and 58 counties, all with the power to govern their own medical cannabis industries. The methods they choose vary throughout the state. Some local governments have rules limiting the number of stores and where they can open. Others passed ordinance banning all cannabis cultivation. In 2015, Governor Jerry Brown signed three bills that toughened regulations for medical cannabis businesses and sought standards for documentation and testing. The bills are known as the Medical Cannabis Regulation and Safety Act, or MMRSA for short. Collectively, the legislation also paved the way for medical cannabis businesses to turn a profit. On November 8, 2016, California voters have approved cannabis for recreational use. On June 27, 2017, the legislature passed, and Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which creates the general framework STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 10 for the regulation of both commercial medicinal and adult-use (recreational) cannabis. Under MAUCRSA, the Bureau of Cannabis Control (“Bureau” or “BCC”) is the lead agency. The Bureau is charged with licensing, regulation, and enforcement of the following types of commercial cannabis businesses: distributors, retailers, microbusinesses, temporary cannabis events, and testing laboratories. The Manufactured Cannabis Safety Branch, a division of the California Department of Public Health (CDPH), is responsible for regulating and licensing manufacturers. CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA), is responsible for licensing cultivators and implementing the Track-and-Trace system. On January 1, 2018, the state began issuing licenses for commercial cannabis activity. Additionally, on January 1, 2018, two (2) new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a fifteen percent (15%) excise tax on the purchase of cannabis and cannabis products. As of January 2020, the state’s three licensing authorities have issued over 10,0002 commercial cannabis licenses to cannabis businesses throughout the state of California. There are 7,551 active licenses, including 4,220 cultivators, 987 manufacturers and 910 retailers, delivery services, 944 distributors, 243 microbusinesses, 129 transporters, 86 event organizers and 32 testing laboratories. OPPORTUNITY: Given management’s proprietary knowledge of the total existing, and to-be developed, cultivation square footage, coupled with the legal inability of product to be transported outside of the state of California: the number of retail dispensary licenses is drastically low and does not come close to serving the volume of product produced. 2 https://cannabis.ca.gov/check_a_license/ United States Cannabis Retail Market: The expected growth came after a solid 2016, when recreational cannabis sales increased by 80% to reach $1.8 billion. Colorado and Washington led the charge, while Oregon’s adult-use market posted strong sales gains in its first full calendar year of operation. The industry also saw a spike in medical cannabis sales, as patient counts rose in new states and continued climbing in mature markets. According to a BDS Analytics report, the retail sector owed $1 billon in state taxes in 2016 and another $1.4 billion in 2017. According to the data published in Marijuana Business Daily’s MJBizDaily Factbook, 2018 sales of legal recreational and medical cannabis in the United States to soar by almost 50%, hitting $8.5 billion on the back of continued growth in existing recreational cannabis markets3. It is estimated that overall retail sales surpassed $11 billion in 2019 – an increase of roughly 30% over 2018 – and by 2023, could rise between $25 billion and $30 billion annually – nearly a threefold increase from estimated annual sales in 2019. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 11 The total economic output from legal cannabis will grow 150% from $16 billion in 2017 to $40 billion by 2021, according to the “US Legal Cannabis: Driving $40 Billion Economic Output” report released by Arcview Market Research, in partnership with BDS Analytics. Based on medical applications, the cannabis market is widely categorized into chronic pain (about 44% in 2019), mental disorders, cancer, and others. The increased demand for pain management throughout the world with a large patient pool suffering from several chronic illnesses is the key factor driving the growth. Mental disorders are expected to emerge as the fast-growing segment, owing to the high prevalence of various mental disorders4. 3 https://mjbizdaily.com/factbook/ 4 https://www.grandviewresearch.com/industry- analysis/legal-merijuana-market Market: In 2017, California’s regulatory regime allowed only holding state-issued medical cannabis cards to legally purchase cannabis. But that hasn’t stopped sales in the state from eclipsing the other states with recreational sales. Sales in California represented about 34 percent of legal sales in the United States in 2017. In 2018, California retail stores sold $2.5 billion worth of cannabis products, and sales in California represented about 24 percent of legal sales in the United States while combined sales in Colorado, Washington and Oregon represent about 30 percent of U.S. sales. California’s cannabis excise tax generated $191.9 million5 in 2018, and the recreational cannabis sales reached about $1,210 million or 48.4% of total sales. The first quarter of 2019 brought in $120.8 million of tax revenues, the second and the third increased to $144.2 million and $163.2 million correspondingly, and the fourth is estimated to hit $160 million. Total tax revenue reported by the cannabis industry in 2019 is about $590 million, including about $300 million in excise tax, and the recreational cannabis sales reached almost $2 billion. In 2019, the combined year-to-date sales are estimated to hit almost $3 billion indicating 20% growth compared to 2018 and representing about 22 percent of U.S. sales. Total tax revenue reported by the cannabis industry is $208.4 million for 2nd Quarter returns due by July 31, 2020 while revenue for 1st Quarter 2020 returns was revised to $205.9 million6. According to a study done by the University of California Agricultural Issues Center, California’s recreational cannabis market would be worth more than $5 billion; however, the benchmark will only be achieved once cannabis consumers fully embrace the state’s legal market. While recreational cannabis market is expected to grow, medical cannabis sales are expected to decline as people migrate toward the adult-use market to avoid medical cannabis ID fees. It is projected that legal recreational use will make up 61.5% of the overall market, illegally purchases cannabis will make up about 29.5% of the market, and legal medical cannabis use will be about 9% of the overall market, the analysis estimated. 5 https://www.cdtfa.ca.gov/news/19-02.htm $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2016 2017 2018 2019 2020 2021 2022 2023 Cannabis Retail Industry Economic Impact ($ in billions) Dispensary/Store Sales Additional Economic Impact of Dispensary/Store Sales STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 12 6 https://www.cdtfa.ca.gov/news/20-11.htm 1.2. Budget for Start-Up Expenses (e.g., construction, operation, maintenance, compensation of employees, equipment costs, utility costs and other operational costs): STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 18 1.5. Hours of Operation and Opening and Closing Procedures: Hours of Operation: 9-3310 (a.) (1) Phase 1: Initial 6 months of Business Commencement Operating hours of Stease shall initially take place between the hours of 9:00 AM PST and 9:00 PM PST. The management and ownership shall evaluate the demand of the business no later than 6 months after the business opens and continue to perform routine evaluations every quarter until the maximum operating hours is achieved between 6:00 AM PST and 10:00 PM PST per the Ordinance. The intention with the phased approach is to properly and thoroughly train the employees of the business and to be prepared to scale and promote management from within to increase throughput capacity of customers based on demand. During the initial phase of the business operations, Stease plans to develop a strong foundation and fluid customer flow process in the retail Showroom, Express Pickup, and Curbside Pickup. The refined approach to focus entirely on the brick and mortar side of the business for the initial phase of the business operations is designed to optimize the main aspect of the retail business prior to offering any delivery services. Management has decided this is the best strategy for sustainable growth with a Fresno retail cannabis business because the market is not as familiar with legal retail dispensaries in the City of Fresno, and Stease feels it will be best to offer undivided attention to the walk-in traffic and focus on customer service with in-depth knowledge about the product offerings and options. We want to be able to answer questions thoroughly about the products to all new customers and offer Express and Curbside Pickup to those particular customers that do not prefer to shop inside the store. As the customer becomes more experienced in the product offerings and expectations of the Stease shopping experience, the Sales Associates will encourage them to participate in the Express Pickup and Curbside Pickup options to avoid the line on repeat orders. Below is an example of the cannabis retail business Personnel Schedule based on initial business hours between 9:00 AM PST and 9:00 PM PST with only Brick and Mortar Retail: Phase 2: Twelve (12) Months After Business Commencement As Stease builds its customer base and demand potential for home deliveries, the management will evaluate this demand six (6) months after the start of business operations and again at twelve (12) months. A decision will be made at twelve (12) months based on whether the delivery services aspect of the retail business shall be considered for implementation. Should the delivery aspect of the 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 Business Hours Business Hours 9 AM PST - 9 PM PST Sales Associate 1 Sales Associate 1 (5 Hours 30 Minute Lunch) Sales Associate 2 Sales Associate 2 (5 Hours 30 Minute Lunch) Sales Manager 1 Sales Manager 1 (8 Hours 1 Hour Lunch) Sales Manager 2 Sales Manager 2 (8 Hours 1 Hour Lunch) Receptionist 1 Receptionist 1 (6 Hours 30 Minut Lunch) Receptionist 2 Receptionist 1 (6 Hours 30 Minut Lunch) Security Guard 1 Security Guard 1 (8 Hours 1 Hour Lunch) Security Guard 2 Security Guard 2 (8 Hours 1 Hour Lunch) Morning Shift Afternoon Shift Evening Shift STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 19 business commence, deliveries shall take place between the hours of 10:30 AM PST and 7:30 PM PST to begin with. After six (6) months of the business opening this service option to the customers to determine the demand of the delivery services, the delivery service hours shall be evaluated after and whether to increase vehicles and delivery personnel. The intention behind the reduced hours for delivery services to start with is to maximize the middle of the day with redundancy in sales personnel and not to overload the delivery driver(s) with order fulfillment. The additional time in the morning ensures that orders placed early in the day will be given sufficient time to receive orders, contact customers if needed, pick and stage inventory in order groupings with pick ticket and unique identifiers on shelving, package safely by order, review and confirm the orders to ensure accuracy prior to delivery, update the track and trace inventory sales system, and securely pack and store orders into the locked and anchored vault located inside of the delivery vehicle. When the retail cannabis business first opens for sales, the late afternoon and evening delivery orders made will stop each day at 7:30 PM PST so that the delivery driver has sufficient time to return back to the store location, securely lock the vehicle, and reconcile the payments and currency from the last deliveries of the day without additional pressure of time constraints prior to store closing at 10 PM PST. Below is an example of the cannabis retail business Personnel Schedule based on initial business hours between 9:00 AM PST and 9:00 PM PST with Brick and Mortar Retail and Delivery Services added in initial delivery hours of 10:30 AM PST and 7:30 PM PST: Phase 3: 18 Months After Business Commencement After eighteen (18) months of starting business operations, Stease shall consider increasing hours of operation based on demand potential. As the demand increases for the Brick and Mortar aspect of the business, the Stease management will evaluate this demand and increase the number of Sales Associates, Sales Managers, Receptionists, and Security Guards to maintain a streamlined business plan and customer flow. Justification to expand the operating hours of the retail store shall be to the full potential of 6:00 AM PST to 10:00 PM PST in efforts to capture more customer throughput capacity and encourage new customers that have a preference of earlier morning and later evening purchases. Below is an example of the cannabis retail business Personnel Schedule based on increased retail store business hours between 6:00 AM PST and 10:00 PM PST with Brick and Mortar Retail and continued delivery hours of 10:30 AM PST and 7:30 PM PST: 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 Business Hours Business Hours 9 AM PST - 9 PM PST Delivery Hours Delivery Hours 10:30 AM PST - 7:30 PM PST Sales Associate 1 Sales Associate 1 (5 Hours 30 Minute Lunch) Sales Associate 2 Sales Associate 2 (5 Hours 30 Minute Lunch) Sales Associate 3 Sales Associate 3 (5 Hours 30 Minute Lunch) Sales Manager 1 Sales Manager 1 (8 Hours 1 Hour Lunch) Sales Manager 2 Sales Manager 2 (8 Hours 1 Hour Lunch) Delivery Driver Delivery Driver 1 (8 Hours 1 Hour Lunch) Receptionist 1 Receptionist 1 (6 Hours 30 Minute Lunch) Receptionist 2 Receptionist 1 (6 Hours 30 Minute Lunch) Security Guard 1 Security Guard 1 (8 Hours 1 Hour Lunch) Security Guard 2 Security Guard 2 (8 Hours 1 Hour Lunch) Morning Shift Afternoon Shift Evening Shift STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 20 Phase 4: 24 Months After Business Commencement After six (6) months of last evaluation, two (2) years after the start of business operations, Stease shall consider increasing Delivery Services hours of operations to be consistent with the Brick and Mortar hours of operations. As the delivery side of the business becomes refined, and demand for delivery services increases, there will be a second vehicle and additional staff allocated to the delivery services so that the delivery time window can be extended to accommodate more customers and sales. The goal will be to build the delivery services side of the business over time and extend the time window to the full operating hours of the retail store in efforts to increase efficiency and customer service support in the Showroom. In the early stages of opening the business, it is best to stop delivery services earlier than close of business to ensure the drivers return safely, orders are accurate, and the payments are reconciled before the rest of the store closes. It is very important to the business owner to maintain compliance with every detail, so there is no transactions taken place after the closing time of the business each day at 10 PM PST, whether that be a delivery, curbside, express pickup, or retail store transaction. Below is an example of the Personnel Schedule based on increased retail store business hours between 6:00 AM PST and 10:00 PM PST Brick and Mortar Retail and Delivery Services: After Hours: After the latest potential daily closing time of 10:00 PM PST, there may be instances where other, non- sales related activities germane to the business, such as employee training, continued education and industry-related learning seminars, receiving inventory, or cyclical inventory audits may take place. All employees shall be compensated for all time that is spent on business premises, whether it is during or after regular business hours. There shall be a continued focus to maximize the business activities 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 Business Hours Business Hours 6 AM PST - 10 PM PST Delivery Hours Delivery Hours 10:30 AM PST - 7:30 PM PST Sales Associate 1 Sales Associate 1 (5 Hours 30 Minute Lunch) Sales Associate 2 Sales Associate 2 (5 Hours 30 Minute Lunch) Sales Associate 3 Sales Associate 3 (5 Hours 30 Minute Lunch) Sales Associate 4 Sales Associate 4 (5 Hours 30 Minute Lunch) Sales Associate 5 Sales Associate 5 (5 Hours 30 Minute Lunch) Sales Manager 1 Sales Manager 1 (8 Hours 1 Hour Lunch) Sales Manager 2 Sales Manager 2 (8 Hours 1 Hour Lunch) Sales Manager 3 Sales Manager 3 (8 Hours 1 Hour Lunch) Delivery Driver Delivery Driver 1 (8 Hours 1 Hour Lunch) Receptionist 1 Receptionist 1 (6 Hours 30 Minute Lunch) Receptionist 2 Receptionist 2 (6 Hours 30 Minute Lunch) Receptionist 3 Receptionist 3 (6 Hours 30 Minute Lunch) Security Guard 1 Security Guard 1 (8 Hours 1 Hour Lunch) Security Guard 2 Security Guard 2 (8 Hours 1 Hour Lunch) Security Guard 3 Security Guard 3 (8 Hours 1 Hour Lunch) Security Guard 4 Security Guard 4 (8 Hours 1 Hour Lunch) Morning Shift Afternoon Shift Evening Shift 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 Business Hours Business Hours 9 AM PST - 9 PM PST Delivery Hours Delivery Hours 10 AM PST - 8 PM PST Sales Associate 1 Sales Associate 1 (5 Hours 30 Minute Lunch) Sales Associate 2 Sales Associate 2 (5 Hours 30 Minute Lunch) Sales Associate 3 Sales Associate 3 (5 Hours 30 Minute Lunch) Sales Associate 4 Sales Associate 4 (5 Hours 30 Minute Lunch) Sales Associate 5 Sales Associate 5 (5 Hours 30 Minute Lunch) Sales Manager 1 Sales Manager 1 (8 Hours 1 Hour Lunch) Sales Manager 2 Sales Manager 2 (8 Hours 1 Hour Lunch) Sales Manager 3 Sales Manager 3 (8 Hours 1 Hour Lunch) Delivery Driver 1 Delivery Driver 1 (8 Hours 1 Hour Lunch) Delivery Driver 2 Delivery Driver 2 (8 Hours 1 Hour Lunch) Receptionist 1 Receptionist 1 (6 Hours 30 Minute Lunch) Receptionist 2 Receptionist 2 (6 Hours 30 Minute Lunch) Receptionist 3 Receptionist 3 (6 Hours 30 Minute Lunch) Security Guard 1 Security Guard 1 (8 Hours 1 Hour Lunch) Security Guard 2 Security Guard 2 (8 Hours 1 Hour Lunch) Security Guard 3 Security Guard 3 (8 Hours 1 Hour Lunch) Security Guard 4 Security Guard 4 (8 Hours 1 Hour Lunch) Morning Shift Afternoon Shift Evening Shift STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 21 during regular business hours with an intention to encourage employees to have personal time, family time, and the ability to get ample rest and relaxation. Opening Procedures: At the beginning of each business day, retail Store Manager(s), Sales Associates, and Receptionist(s) are to gather to meet for a brief daily discussion to address any topics of concern, issues or unsettled disputes between personnel, and business growth or advancement ideas that can be utilized as motivational fuel for the Stease personnel. These discussions are meant to be regular and brief and shall only take about five (5) minutes. Any further discussions are to be immediately scheduled for a time later that day so that the Sales Manager can independently meet with the Stease personnel from the rest of the group, so that undivided attention is placed on the matter. Assuming Phase 1 operating hours, the morning shift of Sales Associates and Sales Managers are to arrive and clock-in for work at 8:30 AM PST to ensure there is thirty (30) minutes for completion of opening procedures in the Showroom, Express Pickup, and ancillary spaces. The morning shift Receptionist is to also arrive for work at 8:30 AM PST to ensure there is thirty (30) minutes for completion of opening procedures in the Lobby/Trap Room and the Waiting Area. If Stease receives strong interest in online ordering for Express and Curbside Pickups, and if the phone support is greater than expected, the Sales Managers and Receptionist shall start work at 7:00 AM PST to ensure that the store can be opened, stocked, web orders picked, and prepared for when the Sales Associates show up at 8:30 AM PST to open for Showroom customers at 9:00 AM PST. Having the Sales Managers and Receptionist show up early shall allow for an easier morning opening procedure. The opening procedure steps for the Sales Associates and Sales Managers are the following: 1. Entering the Building a. All Employees enter the building through the front door directly into the Lobby/Trap Room/Check-In. b. Personnel shall be equipped with Access Card IDs for the Access Control system, which will enable them to enter the main Entry door, marked “Employees Only,” on the back side of the Lobby/Trap Room, the back side of the Express Pickup hallway, and the back side of the Showroom behind the retail display cases. c. The doors shall be equipped with self-closing hardware to ensure the doors close securely behind the employee once retail personnel enter through the Access Control doors. Doors are to swing in the direction of egress in the event of emergencies (see Safety section of this application). d. Time Clock is in the Break Room. All personnel shall enter into the Break Room to clock in and out of the shifts at the Time Clock. e. After the personnel has clocked into the shift, they are to place personal belongings into the clear lockers, designated for each employee, located within the Locker Area beyond the Break Room. Employees are to keep personal belongings in their lockers at all time when on working shift. Only after the STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 22 employee personnel has clocked out at the Time Clock for breaks or ending their shift are they permitted to grab their items from the lockers. 2. Business Lighting: a. Turn on all lights throughout the business is they have not already been turned on by ownership or management. b. Ensure that all lamps and light emitting diodes (LEDs) are illuminated. c. If there are any lamps burned out, inform the Sales Manager to replace with lamps in stock in the supply closet. 3. Showroom Lighting: a. Turn on Showroom lights. b. Ensure that all lamps and light emitting diodes (LEDs) are illuminated. c. If there are any lamps burned out, inform the Sales Manager to replace with lamps in stock in the supply closet. 4. Display Lighting: a. Turn on all lights in the display cases and backlights on cabinet displays. b. Ensure that all lamps and light emitting diodes (LEDs) are illuminated. c. If there are any lamps burned out, inform the Sales Manager to replace with lamps in stock in the supply closet. 5. Point of Sale (POS) systems and Cash Registers: a. Turn on all Point of Sale (POS) systems and register stations. b. Ensure that the system boots up quickly and accurately each day. c. Sign into the POS system. Each Sales Associate shall be given a unique credential for logging into the system with a password protection so they will be able to manage a single station during their shift and log in/out accordingly. d. Sign into individual employee email address to review any emails that were received since the last shift. For example, there may be emails from the Receptionist for sales-related matters that he/she is unable to answer. e. Open the cash register till and count the total amount of cash on hand to start the day. Each register shall always start with and maintain no more than during the day. See Security section of this application. f. Ensure that the same amount of cash in the till is the same as the closing process the night before. g. Note any discrepancies and inform the Sales Manager immediately. i. Sales Manager is to perform the following tasks in the event of discrepancy: 1. Re-count the cash to confirm the mistake 2. Balance register to make the cash total correct in the till 3. Make a detailed note of this to the Chief Financial Office and/or the City Manager 4. Go into Security Room and proceed to play back the camera recordings from the closing shift and overnight timeline to find the cause of the discrepancy. 6. Television and Computer Monitors: a. Turn on all television and computer monitors. b. Ensure that all televisions and computer monitors are working correctly. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 23 c. If the monitors are not working correctly, inform the Sales Manager to replace monitors immediately with one in backstock or by ordering a new one for delivery or pickup. 7. Music: a. Turn on music and retail store playlist at the appropriate volume. b. If the speakers or playlist are not working properly, inform the Sales Manager so he can diagnose and correct the issue. c. Sales Associates are not to spend time fixing the music, so they are not behind on other opening procedures. 8. Cleanliness: a. Inspect the cleanliness of the Showroom, Shelves, and Display Glass b. Prior to opening business for retail sales, the Sales Associates are to thoroughly clean any area in the showroom, counters, shelves, or display windows or glass. Cleaning solutions and supplies are to be kept close by in the supply closet for easy access. c. Closing procedures are to maintain cleanliness prior to leaving the premises to expedite the opening procedures. Opening procedures only include cleaning these spaces if the closing procedures are not completed correctly. d. Sales Associates are to make note and inform the Sales Manager of the cleaning volume and location prior to opening retail store for business. Sales Manager is to discuss this further with the closing personnel to ensure they understand the importance of cleaning in the closing procedures. 9. Inventory: a. Check the inventory on the shelves for available stock, cleanliness, presentation, and organization for the customers. b. Ensure that the products are faced properly and easy for Sales Associates to locate during business hours. All product shall be maintained in a location that is out of reach by customers in the event that the Sales Associate has their back turned with customers present. c. Re-stock any inventory that is not on the shelf and place it into the correct location for the best sales presentation for the customers. d. All inventory is to be restocked in the closing procedures to expedite the opening procedures. If there are items that were not properly stocked in the morning’s opening procedures, Sales Associates are to inform the Sales Manager so they can discuss this with the evening’s Sales Associates. 10. Defective Packaged Inventory: a. Ensure that all inventory on the shelves is properly packaged and there are not any defects in the packaging, child-resistant package, nor the tamper-proof seal if there is one. Any cannabis products that have defective packaging shall be replaced with ones that are compliant and functional. b. Defective packaging on cannabis product inventory shall be taken to the back to inform the Sales Manager immediately. The Sales Manager is to confirm with the manufacturer and/or distributor on whether to immediately destroy the product by rending it useless via process of dilution prior to disposal into the designated cannabis waste receptacle, or to wait until reimbursement or STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 24 replacement compensation of product with a newer version that is not defective on the next shipment prior to disposal. c. Defective packaging or cannabis product in inventory that is removed from the retail shelves shall be marked and noted in the track and trace system and the point of sale (POS) system to ensure the accuracy of the inventory at all times. The opening procedure steps for the Receptionist are the following: 1. Receptionist Desk: a. Turn on computer and monitor and ensure the system is operating correctly. b. Inform the Sales Manager if the computer is not working correctly. c. Confirm daily that the Security System PC monitor is working correctly and displaying a Live Feed of the cameras throughout the retail business premises. i. Inform the Security Personnel and Sales Manager if the security monitor is not functioning correctly. 2. Voicemails: a. Check the voicemails on the desk phone prior to opening for business. b. Listen to each voicemail and determine the best point of contact for each call by physically taking notes of the Name, Phone Number, and Reason of Calling for each call that comes in. In the notes, the Receptionist shall determine who the best point of contact is to return the voicemail call. For example, if the call is related to sales of a cannabis product in inventory, there shall be a note describing the call and sent to the Sales Associates via email so they can return the call at their earliest convenience. c. The Receptionist shall be trained on the inventory and sales procedures the same as the Sales Associates so that he/she is able to answer sales-related questions themselves without requiring them to get a Sales Associate involved. This cross-training procedure is best for the company and efficiency of the returned inquires that come through the phone without slowing down the sales process in the Showroom. The opening procedure steps for the Security Personnel are the following: STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 25 Visitors Other than for customers, access to the retail store is limited to authorized personnel, and approved visitation only. Approved visitation shall take place by appointment only, unless it is by City of Fresno’s City Manager and his/her designees, City Attorney, City Council, or any city official for the City of Fresno that is authorized to visit the cannabis retail business on a moment’s notice. All visitors must sign into at the same location as the customers, provide the security and/or receptionist with appropriate credentials, wear an assigned visitor badge, and be accompanied at all times by cannabis business’ designated authorized personnel. Children (under the age of 18) will not be permitted to move through the security entrance and shall be stopped by the security guard and/or cannabis retail personnel working at the front of the business entry door. Closing Procedures: Assuming Phase 1 operating hours, the evening shift of Sales Associates and Sales Managers are to clock-out and leave work at 9:30 PM PST to ensure there is thirty (30) minutes for completion of closing procedures in the Showroom, Express Pickup, and ancillary spaces. The evening shift Receptionist is to also clock-out from work at 9:30 PM PST to ensure there is thirty (30) minutes for completion of opening procedures in the Lobby/Trap Room and the Waiting Area. The closing procedure steps for the Sales Associates and Sales Managers are the following once the last customer/patient has exited the premises: 1. Point of Sale (POS) systems and Cash Registers: a. Open the cash register till and count the total amount of cash in the register to reconcile the balance. Each register shall always start with the next day. See Security section of this application. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 26 b. Ensure that the same amount of cash is removed, reconciled, and deposited into the vault as what is supposed to be there based on the day ending sales report. c. Note any discrepancies and inform the Sales Manager immediately. i. Sales Manager is to perform the following tasks in the event of discrepancy: 1. Re-count the cash to confirm the mistake 2. Balance register to make the cash total correct in the till 3. Make a detailed note of this to the Chief Financial Office and/or the City Manager 4. Go into Security Room and proceed to play back the camera recordings from the closing shift and overnight timeline to find the cause of the discrepancy. d. Turn off all Point of Sale (POS) systems and register stations. e. Ensure that the system turns off completely and accurately each day. f. Sign out of the POS system. g. Sign out of individual employee email address 2. Business Lighting: a. Turn off all lights throughout the business is they have not already been turned on by ownership or management. 3. Showroom Lighting: a. Turn off Showroom lights. 4. Display Lighting: a. Turn off all lights in the display cases and backlights on cabinet displays. 5. Television and Computer Monitors: a. Turn off all television and computer monitors. b. Ensure that all televisions and computer monitors turn off completely and are not just on sleep function. 6. Music: a. Turn off music and retail store playlist. b. If the speakers or playlist did not work properly prior to closing, inform the Sales Manager so he can diagnose and correct the issue the following day. c. Sales Associates are not to spend time fixing the music, so they are not behind on other opening procedures. 7. Cleanliness: a. Inspect the cleanliness of the Showroom, Shelves, and Display Glass b. Prior to clocking-out and leaving for the day, the Sales Associates are to thoroughly clean any area in the showroom, counters, shelves, or display windows or glass. Cleaning solutions and supplies are to be kept close by in the supply closet for easy access. c. Closing procedures are to maintain cleanliness prior to leaving the premises to expedite the opening procedures. d. Sales Manager is to discuss this further with the closing personnel to ensure they understand the importance of cleaning in the closing procedures and do not leave additional cleaning procedures for the opening personnel. 8. Inventory: STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 27 a. Check the inventory on the shelves for available stock, cleanliness, presentation, and organization for the customers. b. Ensure that the products are faced properly and easy for Sales Associates to locate during business hours. All product shall be maintained in a location that is out of reach by customers in the event that the Sales Associate has their back turned with customers present. c. Re-stock any inventory that is not on the shelf and place it into the correct location for the best sales presentation for the customers. d. All inventory is to be restocked in the closing procedures to expedite the opening procedures. 9. Exiting the Building a. Time Clock is in the Break Room. All personnel shall enter into the Break Room to clock in and out of the shifts at the Time Clock. b. After the personnel has clocked out of the shift, they are to remove personal belongings out of the clear lockers, designated for each employee, located within the Locker Area beyond the Break Room. After the employee personnel has clocked out at the Time Clock for breaks or ending their shift are they permitted to grab their items from the lockers. c. All Employees exit the building through the front door directly out of the Lobby/Trap Room/Check-In, the same door as personnel enter from. d. Personnel shall be equipped with Access Card IDs for the Access Control system, but will not need them to exit the secure zones. e. The doors shall be equipped with self-closing hardware to ensure the doors close securely behind the employee once retail personnel enter through the Access Control doors. Doors are to swing in the direction of egress in the event of emergencies (see Safety section of this application). The closing procedure steps for the Receptionist are the following: 1. Receptionist Desk: a. Turn off computer and monitor and ensure the system completely. b. Inform the Sales Manager if the computer is not working correctly. c. Confirm daily that the Security System PC monitor is working correctly and displaying a Live Feed of the cameras throughout the retail business premises. i. Inform the Security Personnel and Sales Manager if the security monitor is not functioning correctly. 2. Voicemails: a. Check the voicemails on the desk phone prior to clocking-out and going home for the night. b. Check if there are messages missed from earlier, or messages needed for the morning personnel, and send an email to the morning’s opening personnel so voice messages can be addressed in a timely manner. c. Listen to each voicemail and determine the best point of contact for each call by physically taking notes of the Name, Phone Number, and Reason of Calling for each call that comes in. In the notes, the Receptionist shall determine who the STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 28 best point of contact is to return the voicemail call. For example, if the call is related to sales of a cannabis product in inventory, there shall be a note describing the call and sent to the Sales Associates via email so they can return the call at their earliest convenience. The closing procedure steps for the Security Personnel are the following: 1.6. Daily Operations: 1.6.1.i. Customer check-in procedures: Section 9-3310 (a.) (3.) (b.) (1) (ii.) Section 9-3309 (i.) (1.) (2.) (3.) (4.) See Plan View of Proposed Tenant Improvements that represent a secure entry from the exterior into the Lobby/Trap Room and Security/IT Room overlook for customers to first enter the Waiting Area beyond the Lobby/Trap Room once they have been verified by the Receptionist that they contain the qualified credentials to purchase cannabis products. Members of the public shall only have one (1) entrance that they are able to enter and exit as measures to deter and prevent unauthorized entrance into areas containing cannabis or cannabis products. Entry into the Lobby/Trap Room immediately prompts customer/patient to provide identification credentials through the security window at the Reception/Check-In desk. If the Security Guard and/or Receptionist determine that the member of the public to be unauthorized, or persons without proper identification nor qualification to purchase cannabis products, shall be instructed to exit through the same door that they entered to ensure that they do not have access beyond the Lobby/Trap Room. One of the most important credentials that will be STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 29 checked and confirmed of all customers that enter the Lobby/Trap Room is the age of the customers. Prior to dispensing cannabis or cannabis products to any person, the cannabis retail business shall verify the age of each customer. Business owner of Stease recognizes and understands that it shall be unlawful and a violation of Article 33 of the Fresno Municipal Code for any person to sell medicinal cannabis products to any person under the age of eighteen (18) or to sell cannabis or cannabis products to any person who is under twenty-one (21) years of age. Persons that are not less than twenty-one (21) years old shall provide their identification credentials to the Security Guard at the Entry Door and/or the Receptionist in the Lobby/Trap Room to ensure they are qualified to be on the premises and purchase adult-use cannabis and cannabis products from Stease. Proper validation of identification credentials is required and shall be maintained in the POS and ERP systems with expiration dates for the driver’s license and/or state-issued identification card. Persons considered medical cannabis patients that are not less than eighteen (18) years of age with a doctor-prescribed cannabis recommendation to purchase and consume medicinal cannabis and medicinal cannabis products shall be allowed on the premises and enter the cannabis retail business. Medical patient shall be instructed to provide their doctor-prescribed cannabis recommendation with valid identification and/or driver’s license to the Security Guard at the Entry Door and/or the Receptionist in the Lobby/Trap Room to ensure they are qualified to be on the premises and purchase medicinal cannabis and cannabis products from Stease. Proper validation of medical patient’s credentials is required and shall be maintained in the POS and ERP systems with expiration dates for the doctor recommendation(s). In addition to the age restriction for customers, no persons under the age of twenty-one (21) shall be allowed on the premises of the Stease cannabis retail location and shall not be allowed to serve as a driver for deliveries nor general retail personnel. Business owner recognizes that it shall be unlawful and a violation of Article 33 of the Fresno Municipal Code for any person who is not at least twenty-one (21) years of age to be employed by the cannabis retail business. Customer/Patient Check-In Procedure: Especially at times when customer flow is heavier, Security Guard and/or Stease personnel shall be located on building exterior for: first line security of potential theft via passerby; checking for valid and qualified identification credentials; increasing customer traffic flow by scanning returning customers’ identification cards into the Treez POS check-in system; and instructing first-time customers to keep their identification prepared to give to the Receptionist located behind the security window in the Lobby/Trap Room. Customer/patient shall enter into this Lobby/Trap Room through a walk-through metal detector to ensure no weapons enter the cannabis retail business. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 30 After customers and medical patients provide their qualified identification credentials to the Security Guard at the Entry Door and/or the Receptionist in the Lobby/Trap Room, they are deemed qualified for purchase of cannabis and cannabis products from Stease. At this point, the Receptionist shall prompt and “buzz-in” the customer or medical patient through the Lobby/Trap Room door to enter the Waiting Area until they are “buzzed-in” by the personnel in the Security/IT Room that oversees the Waiting Area, Showroom, and the front of the business. Once the customer is “buzzed-in” from the Waiting Area and into the Showroom, they are able to purchase cannabis and cannabis products from the Sales Associates in the Showroom or the Express Pickup. Customer/Patient Shopping Procedure: Within the Showroom and Express Pickup sales options, the retail customers and medical patients are able to explore the menu of cannabis products, pricing, and purchase in the same order as they arrived in line. The customer/patient will be provided with a real-time menu of all available inventory and visible display cases as they wait in line to see a Sales Associate. Showroom sales with a Sales Associate is a customer service-based, one-on-one shopping experience designed for customers and/or medical patients that want to take more time with the Sales Associates to explore the menu with in-depth questions and answers about the current inventory. Stease will also have the option to place orders while waiting in line through the Treez POS system Mobile Payment Terminals. This option is designed for experienced customers/patients to place the Express Pickup orders while they wait in line if they are unable to, or prefer not to, place their orders through the Stease website, www.steasefresno.com. Express Pickup and Curbside Pickup sales options are designed for more experienced and regular customers/patients that want to avoid the potential waiting time in the line. This option is for customers placing orders that want to expedite their shopping experience. Customers/patients are encouraged by Sales Associates and store signage about the Express Pickup and Curbside Pickup options made available through the Stease website, www.steasefresno.com. Customers/patients are encouraged to place orders online ahead of time so the order can be picked and staged for Express Pickup at a designated and pre-scheduled time. A customer/patient can immediately visit the Express Pickup window after they get “buzzed-in” to the Showroom from the Waiting Area. For customers that do not prefer in-store purchases, especially during the COVID-19 pandemic, Curbside Pickup is an efficient way to shop at Stease. Customers/patients are able to place their orders online through the Stease website, www.steasefresno.com, before driving to the retail business location, select a designated time for pickup, drive up to the front of the business and remain in their vehicles in the specific Curbside Pickup parking stalls. A Stease Sales Associate will run the order out to the customer/patient immediately, confirm their STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 31 identification credentials, and complete the transaction if the payment was not already taken via debit card online. After the customer/patient successfully purchases their cannabis and cannabis products from the Showroom or Express Pickup, they are encouraged to follow the efficient, single-direction flow path to the exit. Floor plan has been designed in single-direction flow path to encourage fluidity and reduce a bottleneck at the check-in, purchase, and exit process. Overseeing all operations and transactions of the retail cannabis business will be the Sales Manager and Security Guard(s) located in the Security/IT Room and on the Showroom floor itself. The Security Room is adjacent to the Showroom and Waiting Area, and has one-way security windows in building exterior for a clear view of the front of the business, passerby, and traffic, but primarily overlooks and monitors the security in the Waiting Area to “buzz-in” customers as they are allowed to enter into the Showroom for purchase of cannabis products. Exterior and interior building shall be under 24 hour, 7 days per week surveillance. Transportation Plan: 1.6.1.ii. Protocol for Inbound Deliveries: Licensed security personnel and/or Stease management are to oversee all operations of the inbound and outbound deliveries of supplies, inventory, vehicles, etc. Only one (1) vehicle is permitted to perform inbound or outbound deliveries at any given time. Reducing number of delivery vehicles to a single vehicle ensures an increased loss prevention and security breach. Exterior building shall be under surveillance, as well as the rear building alleyway to have visual surveillance of a vehicular or personal threat to the building. Remote monitoring shall be completed to inform Fresno Police Department of any threat to the cannabis retail business. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 32 Stease shall only receive cannabis products into the Metrc California Cannabis Track-and- Trace (CCTT) system if they are compliant cannabis products that are received accurately per the purchase orders and are received in packaging that is not considered defective, tampered, or altered in any way. As provided in the Industry User’s Guide for the California Cannabis Track-and-Trace Metrc (Metrc User’s Guide), a distributor licensed to sell or transfer cannabis or cannabis products to Stease’s cannabis retail business is required to use a Wholesale Manifest transfer in the CCTT system. When a Wholesale Manifest is used, the distributor is required to record the retailer’s wholesale cost of each package in the transfer. When a nursery sells or transfers immature plants or seeds to Stease’s cannabis retail business, it shall be highly recommended that the nursery utilizes a Wholesale Manifest in the CCTT system and record the retailer’s wholesale cost of the immature plants or seeds. The unit of measure for each of the items included in the package shall be indicated so the Stease business personnel has a clear indication of what was ordered, delivered, received, and the costs associated with each product as it is updated into the Metrc CCTT system, Enterprise Resource Planning (ERP) Inventory management system, and Point-of-Sale (POS) system. A double-check system shall be in place internally at Stease to ensure that the inventory received, and on-hand inventory is accurate at all times. For inbound deliveries: 1. Confirm that all cannabis products are received in their entirety from the vehicle and accounted for by comparing to the Wholesale Manifest transfer/bill of lading from the Distributor. 2. Count and double check quantities, unit of measure, part numbers, product SKUs, product description, and Metrc tags/barcodes/unique identifiers on packaging are intact and functional. 3. Confirm there is not any shipping damage. Take photos and document all damage on bill of lading and require that the driver signs the bill of lading agreeing to the damages noted. 4. Report any discrepancies to the Manager immediately. 5. Once the accounted for and confirmed for accuracy, cannabis products are received into the Treez IO POS system that automatically exports and integrates with the Fishbowl ERP inventory management system and Metrc Track-and-Trace system. 1.6.1.iii. Record Keeping, Point-of-Sale and Track-and-Trace: Section 9-3331 (a.) (b.) (c.) (d.) Stease shall maintain accurate books and records in an electronic format that details all the revenues and expenses for the business, and all of its assets and liabilities. Intuit’s QuickBooks shall be utilized by Stease financial officer, bookkeeper, and CPA to manage the financial records and accounting of the cannabis retail business. Intuit’s Fishbowl Inventory Management, Enterprise Resource Planning STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 33 (ERP) system will ensure there is a seamless bridge between the financial books, the POS system, and the cannabis track-and trace system. Fishbowl offers its own take on an ERP system that combines advanced inventory management software with many other solutions to do pretty much everything an ERP can. It gives you access to many tools that you can add or drop at your discretion, including: Complete accounting package that is already compatible and integrated with the POS and Metrc CCTT systems to provide the retail business with real-time inventory data, reports, and warehouse accounting capabilities. All inventory part numbers, price basis, Metrc tags, and UPC barcodes will be consistent across the platforms to accurately operate and streamline a compliant cannabis business. Stease selected these record keeping platforms and software selections due to the existing history in the marketplace with the cannabis industry POS and Metrc CCTT so that the required materials can be submitted in an electronic format that is compatible with the city’s software and hardware. Business owner and management team has prior experience working with each of these platforms. Stease shall, annually, or at any time upon reasonable request of the city, file a sworn statement detailing the number of sales by the cannabis retail business during the previous twelve (12) month period. The period of time may be shorter than twelve (12) months depending on the timing of the request. This statement of detailed sales shall be provided on a monthly basis. The statement shall include gross sales for each month, and all applicable taxes paid or due to be paid. Annually, Stease shall submit to the city a financial audit of the business’s operations conducted by an independent certified public accountant (CPA). Contact information of the specified Certified Public Accountant (CPA) can be found below: Chris Ratzlaff, CPA Ratzlaff Tamberi & Wong Accountancy Corporation 7650 North Palm Avenue, Suite #105 Fresno, CA 93711 Phone Number: (559) 432-0300 Fax Number: (559) 432-2841 Stease understands that it shall be subject to a regulatory compliance review and financial audit determined by the City Manager or his/her designee(s). Stease shall be subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) and shall include allowance of the city to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the city’s request, unless otherwise stipulated by the city. Stease owner and operator shall maintain a current register of the names and the contact information of anyone owning or holding an interest in the cannabis retail business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the cannabis retail business. The required register shall be provided to the City Manager or his/her designee(s) upon reasonable request. As the business begins and scales operations, more managers, employees, agents, STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 34 and volunteers employed or otherwise engaged by the cannabis retail business shall be listed and updated on the registry. Please see Business Plan section of permit application of current register of the names and contact information. Point-of-Sale (POS) System: 9-3310 (b.) (1.) (xvi.) (xvii.) (5.) (i.) (ii.) (iii.) (iv.) Stease shall operate with a state-mandated accounting, point-of-sale (POS), and California Cannabis Track-and-Trace (CCTT) system with the capability to audit transactions and trails of cannabis product and cash, where applicable. The California Cannabis Track-and-Trace (CCTT) system integrated with the POS system is Metrc (“Metrc”). Compliance with the California Cannabis Track-and-Trace (CCTT) system for cannabis and cannabis products and all cannabis regulations stated in the California Code of Regulations shall be demonstrated to the Chief of Police, City Manager and/or their designees. Each party shall deem Stease as qualified and compliant in all state and local cannabis business regulations. Stease has chosen to utilize the cannabis industry’s leading and trusted Point-of-Sale (POS) system, Treez IO (“Treez”), for all retail store transactions: Showroom sales; Express Pickup; Curbside Pickup; and eCommerce retail sales. This software will offer a flexible solution for every aspect of the cannabis retail business, as the “Sell Treez” software provides customer check-in, order processing, and inventory management. Sell Treez will allow the cannabis retail business to segment inventory by medical or recreational status, fulfillment type, or sales channel of Showroom sales, Express Pickup sales, Curbside Pickup sales, eCommerce sales, and Delivery sales from a centralized dashboard. Stease will offer eCommerce sales for in-store Express or Curbside pickup, and eventually scheduled Delivery, through the website www.steasefresno.com. The eCommerce web sales will integrate seamlessly with Sell Treez, allowing the Stease retail personnel to pick, pack, and fulfill potentially thousands of tickets each day while reducing the overhead of the business. Stease has chosen to utilize Treez as the sales platform to maintain an accurate inventory control and provide the business with a robust reporting system and integration with Metrc CCTT system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products until purchase as set forth in MAUCRSA. There are automatic compliance tools built into the Sell Treez platform that safeguard retailers from selling over state-specific purchase limits, allows the retailers to collect dynamic taxes based on cannabis product type, customer classification, and delivery destinations. Sales are reported in real-time to state mandated track and trace system, Metrc, which also provides insulation to the retail business from track-and-trace outages with Treez’s proprietary Trace Treez automation layer. In addition to the Sell Treez platform, Stease shall also utilize the “Treez Pay” integrated software that will allow the cannabis retail business to take debit and online payments through the Treez POS system. Treez advertises that the Treez Pay integration has shown to increase average ticket values as much as 30% more than competing payment software, eliminates manual duel entry errors for customers, and creates a more streamlined and enjoyable experience for customers overall. In addition STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 35 to these benefits, Treez Pay automatically sends nightly batching directly to the business bank account and will help to reduce insurance liabilities for having an on-site ATM in the Showroom. All of these features are beneficial to provide the cannabis retail business the best ability to maintain a sustainable net profit margin, which is necessary to scale the business in size and efficiencies due to the nature of the slim margins in the cannabis retail space. Mobile payment terminals shall be integrated as demand for the retail business increases, which will allow the business to accelerate Curbside and Express Pickup orders and transactions, enable the ability for Sales Associates to take payments from anywhere on the sales floor in effort to increase customer throughput capacity, and to eventually take debit card payments on delivery orders compared to cash. Allowing the cannabis retail business to receive payments in full with a “pay-up-front” order functionality for Curbside Pickup, Express Pickup, and Delivery Service orders will decrease the security risk for cash payments outside of the Showroom, and also encourage more rapid and seamless transactions for the customer experience. Number and Locations of POS Systems: Stease shall begin operations with: two (2) Treez Point-of-Sale (POS) stationary terminal locations on the Showroom display counters; one (1) stationary terminal Treez Point-of-Sale (POS) location at the Express Pickup display counter; (1) mobile payment terminal for Showroom; and one (1) mobile payment terminal for Curbside Pickup orders. In addition to the POS locations and mobile payment terminals, Stease shall begin operations with one (1) Treez check-in platform for at the Receptionist desk. Phase 1 Summary: (2) stationary terminals in Retail Showroom (1) stationary terminal in Express Pickup (1) mobile terminal in Retail Showroom (1) mobile terminal for Curbside Pickup (1) stationary terminal at Receptionist Check-In As the demand for the business increases, and the hours of operation and total number of Sales Associates increases, there shall be additional POS locations added and additional Mobile Payment Terminals to provide the ability to capture orders from customers paying with debit cards while waiting in line. Redundancy and emphasis shall be placed on the mobile payment terminals in the Showroom and Curbside Pickup as the customers/patients are going to be more experienced and familiar with the Stease experience of placing orders for Curbside Pickup and Express Pickup while waiting in line. In addition to the increase in sales transaction capacity with more POS locations, there shall also be one (1) extra Treez check-in terminal at the Reception desk if the demand of foot traffic increases to a point that a second one is needed. Phase 2 Summary (Estimate): (4) stationary terminals in Retail Showroom STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 36 (2) stationary terminals in Express Pickup (3) mobile terminals in Retail Showroom (2) mobile terminals for Curbside Pickup (2) stationary terminals at Receptionist Check-In Below are examples of the Treez IO Point-of-Sale (POS) system screenshots of what the Stease employees will see on day-to-day operations: STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 37 Full audit log of inventory status so you can always accurately report to Metrc and BCC. Full Compliance Management Module so your METRC is never out of sync with your POS. eCommerce / Online Ordering: Example Website Homepage with Age Gate Product Listing with Cannabinoid Potency Product Listing Before being clicked on, also with Cannabinoid Potency STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 38 The proposed tenant improvements and floor plan provide enough space for expansion and new POS locations to be installed. As the local demand increases with customers, additional Mobile Payment Terminals shall be added to decrease waiting time in line and encourage Express and Curbside Pickups. See Proposed Floor Plan below for proposed locations for POS locations, Check-In in Green, and allocated locations for future proposed locations in Orange. City Manager or his/her designee(s) shall be notified within twenty-four (24) hours after discovering of the following: i. Significant discrepancies identified during inventory based on predetermined level of significance by the regulations promulgated by the City Manager or his/her designee(s). ii. diversion, theft, loss, or any criminal activity involving the cannabis retail business, agent(s) or employee(s) iii. Loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the cannabis retail business. iv. Any other breach of security. 1.6.1.iv. Estimated Number of Customers to be Served per hour/day: Below is a breakdown of Stease’s average customer’s per day, average transaction size per customer, estimated total customers services per hour, number of employees to service this estimated number of customers per day, and the percentage of labor compared to gross revenue. Management feels that these numbers are conservative and consistent with the market analysis and data received from average comparable cannabis retail businesses in similar and small market sizes. This data was comprised of retail businesses in various cities in California, Oregon, Washington, and Nevada. The estimated customer throughput capacity is based on the initial operating hours between 9 AM PST and 9 PM PST. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 39 Notes: 10. Per its conservative approach, management projects the Company’s start date to be January 1st, 2022 11. Per current industry participants, management indicates the Company should conservatively be equipped to service approximately 250 customers per day, on average, for its first full year in operation, while growing its average customers serviced in line with inflation, or approximately 3%, year-over-year. This equates to an average increase of 10 customers per year increase. 12. In line with the average industry transaction size, the Company anticipates to receive approximately per transaction from each customer, on average, during its first year in operation, while growing its average ticket year-over-year in line with inflation 13. Based on 12 hours of operation and scaling to 16. Average time spent per customer is 9 minutes, which Management feels is conservative compared to comparable cannabis retail businesses in the current market. 14. Management believes its budgeted and projected labor expense to be conservative as industry peers, as well as retail operators in adjacent businesses, typically calculate labor expense as 15% - 20% of sales 1.6.1.v. Proposed Product Line to be Sold and Estimated the Percentage of Sales per Category: Based on the BDS Analytics Report, Californians spent most of their dollars (36%) on flower. Concentrates, the next largest share of the cannabis sales, captures 33% with over 83% of this contributed by cartridges. Edibles, with over 17%, came in third. The top performers in the California edibles market include cannabis-infused chocolate, gummies and beverages. Pre-rolled joints grab 11% of the market and other products categories represented less than 2% of the marketplace. Very consistent with the State-wide data, Stease plans to experience the following estimated percentages of sales in each category: 40% flower (e.g., indoor, greenhouse, outdoor); 28% concentrated products (e.g., vape cartridges); 15% edible products (e.g., cookies, brownies); 10% pre- manufactured products (e.g., pre-rolled cannabis products); 5% wellness products (e.g., lotions, gel caps); and 2% other products (ancillary smoking products, store merchandise). STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 41 For outbound deliveries: . STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 42 Advertising and Marketing Plan: Section 9-3309 (h.) (6) Business owner understands that as a holder of a cannabis retail business permit in the City of Fresno, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business or cannabis retail business located in the city utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the state. Advertising shall not be visible from the exterior of the establishment. Advertising is prohibited on the exterior of the establishment and shall not be installed. Signage for Stease will not be directly illuminated. Stease shall not advertise by having a person holding a sign and advertising the business to passerby, nor shall there be any use of banners, flags, billboards, or other prohibited signs at any time. Proposed cannabis retail business intends to advertise in legal state and locally approved forms, including the internet, in magazines, or other similar ways. Online advertising platforms are placing strict rules on how companies can market their products. Google, Facebook, Instagram, and Twitter all have advertising policies that restrict the promotion of the sale of cannabis. Google’s policy prohibits ads that promote “substances that alter mental state for the purpose of recreation.” Facebook and Instagram restrict any “illegal, prescription, or recreational drugs.” Twitter bans “illegal drugs” as well as substances that cause “legal highs.” Instagram and Facebook have decided to go a step further by removing pages of cannabis related businesses. The most effective strategies for legal cannabis companies are direct marketing at industry conferences and other events, building communities around cannabis-related concerns such as health and wellness. The marketing and sales strategy of Stease will be based on leveraging existing and generating new long-term personalized relationships with cultivators, manufacturers, distributors, and retail customers. Marketing and Advertising campaign includes: STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 43  Business and industry associates: Stease business owner is a current Associate member of the California Cannabis Industry Association (CCIA). As Stease business operations commence, a Business-Level Membership will be considered to be a critical aspect of Stease’s industry outreach and growth strategy that shall also provide honest arbitrage in marketing and branding while being at the forefront of the latest industry news.  Social Media: Stease will have a significant social media presence that is engaging to the audience of cannabis enthusiasts, activists, and consumers of all levels of cannabis experience. The social media marketing “algorithm” will consist of providing free content that educate our followers about the history and physiology of the cannabis plant, the various cultivation methods and extraction methods, health facts about various consumption methods, engagement surveys and polls, and snapshots of the retail store, its employees, and active inventory. The social media platform will also be used for promotions, special discounts and sales-related posts with new inventory “drops” of popular and rare cannabis products through our supply chain partners. No cannabis nor cannabis products will be for sale on the Social Media platforms.  Business events and conferences: Stease will have a presence in primary conferences and industry events, whether they are in-person or virtual. In-person conferences are preferred so conversations and brand identity can be conveyed most efficiently and a higher attendance. Sponsorship to the events with lanyard sponsorship has worked well for Stease business owner’s previous companies in the cannabis space, so this and signage are likely to be the key sponsorship targets. Lanyards provide an opportunity to locate the Stease brand on every badge worn by every attendee and will end up in all photographs taken and posted on every exhibitors and visitors social media channels. This has proven to work and will be deployed to gain brand exposure and bring the Stease name to the forefront of the community.  Brand development: Stease plans to offer branded products such as shirts, golf polos, sweatshirts, hats, bandanas, masks, beanies, posters, stickers, etc. through our brick and mortar and online stores. Limited runs of different colors will be used to appeal to a broad customer base, and systematically promote local businesses and teams, such as Fresno State, Fresno Grizzlies, Fresno Football Club, etc. See example below of Stease branding focused on Fresno State Bulldog color palette that will be utilized to promote the Red Wave with local brand ambassadors that wear their Stease apparel at Fresno State events. Additional promotions and discounts can be tied to this with social media posts that show proof of Stease apparel at events with targeted hashtags.  Website: We will have a professionally designed website that is integrated with a payment system to place orders for express in-store pickup, curbside pickup, or delivery of cannabis products, consumption devices, and/or branded apparel.  Co-Branding/Private Label: Once there is retail store demand and consistent customer flow through the various sales channels, the Phase 2 marketing plan for Stease includes Co- STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 44 Brand/Private Label “house brands” with our supply chain partners. In efforts to expand margins and provide customers with a brand they know and trust from the most consistent and reliable cultivators and manufacturers, Stease plans to private label cannabis products through our supply chain partners.  Brochures: We will produce high-quality brochures that will be distributed to doctors who issue cannabis recommendations, prescriptions, clinics and other licensed vendors.  Information kits for clients and medical/health practitioners: Information kits will include registration forms, brochures, and general information on the use of medical/recreational cannabis.  Guerrilla marketing: Implementing a guerrilla marketing division of Stease is designed to focus on low-cost, unconventional marketing tactics that yield maximum results. Table 3. Examples of cannabis business directories Weedmaps https://weedmaps.com Cannabis dispensary/store finder. With over 7,750 listings throughout the U.S., Canada, and Europe. Weedmaps has 7.96 million total visits each month. Leafly https://www.leafly.com Leafly is a cannabis information resource for finding information on genetic profiles and products offered in the market. Leafly has 226,270 total visits each month. Canna-Saver (Canna-Pages) https://www.cannapages.com Canna-Saver is a website for cannabis and related coupons designed for deals and savings. Canna-Saver has 310,040 total visits each month. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 1 2. Social Policy and Local Enterprise Plan 2.1. (& 2.8.3.) Commitment to Offering Employees a Living Wage: Stease shall offer a wage that is above the Living Wage statistics so that the employees are proud of their organization and feel like it is proud of them. Creating an ecosystem of loyalty and passion in your profession is what the original pioneers of the cannabis industry understand better than most, and Steven Silva believes that entirely. Providing employees with an honest, Living Wage is a commitment that Stease will carry forward. Based on market data when analyzing and conversing with comparable cannabis retail businesses, Stease has a plan to pay its employees above market average wages that is above Living Wage assumptions. In addition to this, standard retail businesses factor that the labor expense is 15-20% of gross revenue on average, with Stease’s trending toward the upper end (approximately 19% of gross revenue), before factoring the Employee Bonus Pool, toward labor expenses over the projected 7- year financial model shown in the Income Statement above. It is important to provide a healthy culture within the organization that feels it can naturally motivate each other and reduce the feeling of struggle with the outside world. Times are tough, and the population in Fresno is growing at a rate of 0.76% annually, with a population density of 4,691 people per square mile. As competition in the workforce becomes more difficult, and the demand for higher salaries increases with gentrification and population increases, Stease intends to stay on the cutting-edge of this by putting the employees first. Stease ownership intends to maintain a loyal workforce of residents of Fresno that have aspirations to grow with the company. This business mantra encourages the organization to preserve the core while stimulating progress for the long-term. Stease is committed and has every intention to hire as close to 100% of the employees as residents from the City of Fresno as possible. All managers, the business owner, and the majority of the key investors are Fresno residents. As the business expands, surely there will be selective personnel hired from outside the immediate area, but the business plan is to seek employment and hire from the City of Fresno, County of Fresno, and the Central Valley. Stease management intends to continuously invest in the community and personnel to keep the money earned local. The status quo at Stease is to hire and train with strength so that employees are all managers and Stease has the competitive advantage and ability to promote management from within the organization. As the employees are hired and trained with a robust understanding of the cannabis industry and supply chain, the honesty and integrity of what products and services are offered to the customers will radiate out in each customer interaction. As the employees expand their personal lives and build families, it is important that the Stease organization offers and opportunity for them to strive in their professional life so they can promote gratifying and fulfilling personal lives. See Income Statement Output Schedule in the financial projections model for more information on the Labor expenses. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 2 2.2 - 2.3. Employee Benefits: Stease employees, both full-time and part-time, will receive benefits above their living wage. Full- time employees will be provided with health coverage, paid vacation time, medical leave, maternity and paternity leave options, worker’s compensation, and other fringe benefits management sees fit. All employees will receive a monthly parking permit for a covered parking stall in the Garage #7 Van Ness and Inyo Avenue “Spiral Garage” that is located 200 feet from the front door of Stease cannabis retail business location. In addition to providing the health coverage, it shall be an internal practice to routinely check-in on each employee to make sure they are always satisfied with themselves physically and mentally. If the employees need time away from work in order to see a doctor or medical provider, this will be appreciated and welcomed by the Stease ownership team. Creating a physically and mentally healthy culture is of the utmost importance. Each year, all employees will be encouraged to get influenza shots, a regular physical examination (physical) by medical practitioner, an eye examination, and bi-annual dental examinations with cleanings. There may be unique circumstances where certain employees are not able to do these regular medical examinations outside of working hours because of their personal lives (i.e., childcare). In these circumstances, employees will be permitted to visit doctors during their normal working hours. Vacation time is provided to every full-time employee of the organization. Whether the employee wants to stagger their vacation time or take it all at once, the organization shall always encourage its personnel to enjoy their personal time away from work. Salary employees, such as Sales Managers, will enjoy the benefits of paid time off for their vacations. This extra compensation for vacations is a motivation for the Sales Associates to seek the additional apprenticeship and continued industry education offered by Stease ownership in efforts to build and grow the management from within the organization. At times when the employees have newborn babies, whether the employee is male or female, taking a paid maternity or paternity leave that offers six (6) weeks of paid family leave (for birth, adoption or a sick family member). The organization shall provide a typical benefit of 60-70% of the weekly salary. Mothers that gave birth to a child shall receive twelve (12) weeks of maternity leave with partial payment of typical 60-70% of weekly salary. See Income Statement Output Schedule in the financial projections model for more information on the Employee Benefits. Employee Bonus and Incentive Program: In addition to the base living wage, there shall be an Employee Bonus and Incentive Program that is shared between the employees. The system is designed to be performance-based and motivating to the employees so that they can leave each day knowing they received an above-average bonus and increase in compensation above their normal earnings and benefits. The concept is so that there is constant motivation to grow the company and increase efficiencies because the proceeds are distributed and invested directly back into the people that are most important, the employees. See Income Statement Output Schedule in the financial projections model for more information on the Employee Bonus Pool. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 3 2.4. Plan to Recruit Individuals that Meet Social Policy Section 9-3316 (b) (1) (FMC): Management indicates that one of Stease’s primary objectives is to exceed the minimum (one-third) of total annual work hours performed at the business by those individuals experiencing/experienced the following hardships/challenges: a) Individuals with annual family income below 80% AMI; b) Individuals convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current State law; c) Individuals who have lived in a low to moderate income census tract in the city for a minimum of three (3) years; d) Individuals who are United States’ Veterans; e) Individuals raised in Former foster homes or youth who were raised in foster care as a minor; f) Individuals who have or, who are, experiencing unemployment; g) Individuals receiving public assistance. Management has been affiliated with the cannabis industry for multiple years, and because the industry has been largely pushed to the periphery of society, so too was Stease’s management, as well as all other individuals who have operated in the space. Management’s long-tenured, and impeccably maintained, reputation in the industry, has uniquely positioned the Company to attract and seamlessly work alongside those who are labeled with the above listed hardships/challenges--those are all-too-often pushed to the periphery of society. Management looks forward to providing a center of hope and excitement for its employees where everyone is dedicated to personal growth and dedication to their craft. 2.5. Locally Managed Enterprise: Stease shall be a locally managed business whose owners, managers, and the majority of the investors reside within or own a commercial business within the City of Fresno, for at least one year prior to March 2, 2020. The majority of the investors are large names in the Fresno Community that have pride in Fresno and providing quality jobs to residents for many years. Business Owner, Steven Silva, was born and raised in Fresno and still has maintained a primary address in the City of Fresno. Home address has not been included in this application due to privacy reasons. Steven Silva also has operated his own consulting business within the City of Fresno since 2017. Business address for SB SILVA, LLC is 8050 N. Palm Avenue, Suite 300, Fresno, CA 93711. An example of this is Silva partnering with Pappas Family Farms, and was one of few success stories in the 2019 growing season for the cultivation of industrial hemp in the County of Fresno, where he successfully sourced cultivars, planted with above 95% success rate and less than 1% male plants, grew robust and healthy hemp plants, trained the labor on a new commodity crop to harvest, dry, and process the product correctly, and distributed compliant industrial hemp all out of Mendota. Silva prides himself on being from Fresno and the Central Valley and has a passion for operating the proposed cannabis retail business in his hometown above all other cities in California. He has been diligently monitoring the status of the Fresno legal cannabis market for many years and intends to operate a leading retail business in Fresno. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 4 2.6. Employee Titles and Job Responsibilities: Stease anticipates a ramp-up period as the legal cannabis industry matures in the City of Fresno. Stease management plans to hold a series of detailed evaluations no less than every six (6) months to consider average transaction times and estimated number of employees required to ensure all customers are receiving the quality customer service they deserve. The current business model is designed to encourage and incentivize customers/patients to place orders through the website ahead of driving to the Stease business location to pick up their cannabis products and/or accessories. When orders are placed on the website, the Sales Associates have time to pick, pack, and stage the orders for Express Pickup and Curbside Pickup, which will streamline the purchase process and decrease the total transaction time required. This will maximize the customer throughput capacity of the cannabis retail business and allow proportionate amount of time for the less experienced customers to spend time with the Showroom Sales Associates. Stease intends to operate the business with the full capacity of Sales Associates and Sales Managers with plans to increase the personnel number based on total transactions and demand within the various sales channels. Stease will operate with a “promote from within” business model so that the organization’s core philosophy is to build a sustainable foundation and healthy culture of Stease employees seeking to build a career in the cannabis industry. Below is a breakdown of the estimated personnel for the first fiscal year of sales projections: Title/Position: Sales Manager Estimated Number per Shift: 2-3 Job Description/Responsibilities: Sales Managers are primarily responsible for overseeing the Sales Associates within the various sales channels, scheduling the personnel shifts, maintaining adequate inventory levels, purchasing and receiving inventory from distributors, and communicating daily with the COO about the operational status and challenges. In addition to these responsibilities, Sales Managers are to train the Sales Associates and instill the core philosophies of the organization to promote Management from within. Sales Managers are to motivate and lead by example so that the sales team can grow mentally, socially, and financially within the company, and encourage the mutual benefit of the Employee Bonus Program designed as a performance-based and incentivizing mechanism for the sales team to demand excellence internally by working together as a symbiotic team that promotes a healthy culture. Title/Position: Sales Associate Estimated Number per Shift: 3-5 Job Description/Responsibilities: Sales Associates are responsible for maintaining a healthy culture and quality customer service to every customer, patient, and organizational personnel. The Sales Associates understand that they are an instrumental part of an organization that wants to promote from within, so each Sales Associate is starts out in a manager-trainee role and is to always be treated with class. It is understood that all internal and external communications reflect on the business culture, and the Sales Associates are face-to-face with customer interactions and have the most responsibility for how the Stease brand is conveyed in conversations and customer service. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 5 Title/Position: Receptionist Estimated Number per Shift: 1-2 Job Description/Responsibilities: The Receptionist is a primary communication role within the organization and shall always have a positive, upbeat attitude. Their primary role is to maintain and orderly receptionist/check-in desk area, scan new customer credentials into the POS system, confirm that all customers/patients are qualified with their scanned credentials, and ensure that the store is not over capacity in the Waiting Area. In addition to being responsible for the intake process for customers, the Receptionists are also the first-in-command on the inbound phone calls. Receptionist must direct the phone calls to Sales Managers for sales-related calls, the Chief Operating Officer (COO) for upper management-related calls, and also have the ability to direct and navigate a customer through the Stease website for placing orders for Express Pickup and Curbside Pickup if the Sales Managers are not available to take the call. The Security Guards maintaining the from entry door will help reduce the Receptionist workload and bottleneck by scanning and checking-in the returning customers into the POS system prior to them walking into the Lobby/Trap Room. This additional redundancy in the customer check-in process will encourage the Receptionist to complete the other responsibilities, such as phone management, and Waiting Room management, at times when the store is at maximum capacity. Title/Position: Security Guard Estimated Number per Shift: 2-3 Job Description/Responsibilities: Security guards at the cannabis retail business must have a wide range of skills, as they are the front-line protection for the customers and the business personnel, and they will interact face-to-face with the customers daily. It is important that the security guards provide a sense of a safely maintained shopping experience, yet able to have communication skills and ability to provide some customer service while managing the customer flow through the entrance. Security guards are also required to mobilize throughout the Showroom floor and manage the rear building vehicle traps for inbound/outbound deliveries of cannabis product. Security Guards are also responsible for scanning in the returning customer credentials into the POS system while maintaining the front entry door. This scanning process on exterior at times when the store is at maximum capacity will ensure that unauthorized persons cannot enter the Lobby/Trap Room. This redundancy in the customer check-in process will encourage the Receptionist to maintain an orderly Waiting Area, provide more customer service, and reduce customer bottlenecks. *Please see Security Plan and RAS Watch scope of work for job description for “Head of Security” which includes 24/7 security monitoring currently in use by Fortune 100 companies across the United States STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 6 Title/Position: Chief Financial Officer (CFO) Estimated Number per Shift: 1 Job Description/Responsibilities: A chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. The CFO's duties include tracking cash flow and financial planning as well as analyzing the company's financial strengths and weaknesses and proposing corrective actions. The CFO will oversee all records, documents, and financial audits requested by the City of Fresno pertaining to the cannabis retail business. Title/Position: Chief Operating Officer (COO) Estimated Number per Shift: 1 Job Description/Responsibilities: The chief operating officer (COO) is a senior executive tasked with overseeing the day-to- day administrative and operational functions of a business. The COO typically reports directly to the chief executive officer (CEO) and is considered to be second in the chain of command. Stease COO shall be responsible for analyzing the local marketplace, and adjusting the customer and personnel capacity based on trends in the marketplace. COO is also responsible for maintaining a healthy culture and morale within the organization. 2.7. Labor Peace Agreement: Section 9-3316 (b.) (2.) (i.) (1.) (2.) (3.) Stease shall operate with more than five (5) employees at the time the business is opened to the public. The organization shall start with five (5) employees per shift and adjust the personnel based on the demand in the local marketplace and which sales channels require the most increase in capacity: Showroom, Express Pickup, and Curbside Pickup. As the operations and demand for the business increased, there shall be more employees hired immediately to maintain the customer flow and quality customer service. For example, as demand for Curbside Pickup, Express Pickup, and possible future Delivery, become services that require more personnel to maintain sufficient customer flow, the retail business will increase personnel in these departments first to encourage more throughput and faster sales conversions and better customer service capacity. The Showroom personnel shall always have a manager on-site for backup help on the Showroom flow at times of the day that there is higher customer and transaction flow. It is understood and encouraged that the Stease shall sign a labor peace agreement allowing employees to join or form a union without interference. Within thirty (30) days at the time of hiring its fifth (5th) hire, Stease shall sign and execute a labor peace agreement and provide a copy of the executed agreement to the City Manager or his/her designee(s). Stease shall enter into and abide by the terms of a labor peace agreement within thirty (30) days of the business’ fifth (5th) hire. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 7 It is understood that if such agreement is not received, the application shall be denied, or the commercial cannabis business permit shall be revoked in accordance with Section 9-3321 of Article 33. Stease shall execute a labor peace agreement with a Union that is considered a bona fide labor organization that is the recognized or certified exclusive bargaining representative of the employees of the employer. It is understood that a labor organization is considered bona fide if it (1) actually represents employees in California as to wages, hours, and working conditions; (2) its officers have been elected by secret ballot or otherwise in a manner consistent with federal law; and (3) it is free of domination or interference by any employer and has received no improper assistance or support from any employer. Collective Bargaining Agreement (CBA): Section 9-3316 (b.) (4.) At the moment of executing the labor peace agreement with a bona fide labor organization that currently represents cannabis workers in the United States of America within thirty (30) days of hiring its fifth (5th) employee, the applicant of the Stease shall execute a written legal contract between the employer and the designated union that represents the employees. This CBA shall include terms of final negotiation between parties regarding topics such as wages, hours, and terms and conditions of employment. Stease shall provide a copy of the executed Collective Bargaining Agreement to the City Manager or his/her designee(s). *See final pages of “Social Policy and Local Enterprise Plan” section for Sample Labor Peace Agreement. 2.8. Workforce Plan: 2.8.1 Local Hiring Commitment & Hiring Strategy: Stease has a commitment to hire residents from Fresno for employees and management. Below are market analytics and research statistics revolving around the cannabis retail demographic and Stease’s plan for maintaining a commitment for local hires: According to the Arcview Market Research for Cannabis Retail, the following are the average breakdown of gender, generation, and age groups of dispensary employees by percentage: Males 54.4% Females 45.6% Millennials/Gen Y 71% Baby Boomers/Gen X 29% STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 8 Ages: 70’s 0.1% 60’s 2.4% 50’s 9.5% 40’s 17% 30’s 31% 20’s 40% Source: Faces Human Capital Management Providing a professional experience with unparalleled customer service, trustworthiness, honesty, integrity, comfortable and warm welcoming, and consistency are the most important factors that Stease shall focus on with its cannabis shopping experience. The style is to appeal to everyone and provide an experience that is easy for every type of cannabis consumer, no matter how much experience or background they have. Company Vision: Being the best and preserving the core and stimulating progress in the cannabis retail sector in the Central Valley, California. It is important that Stease hires and trains employees reflective of their target customer demographics, especially the budtenders that are interfacing with the customers more than other retail employees. Though the typical employee mix at cannabis retail skews toward younger and more male-dominant, Stease plans to hire an equal mix of genders and ethnicities and hire management from within the organization in efforts to preserve the core ideology of the business, yet, stimulate progress to grow sustainably. It is directly indicative of the target demographic to focus heavily on having Millennial/Gen Y employees considering they make up the majority of the customer base for cannabis retail businesses and the median age of Fresno is 30.8 years-old, with 29.8 years for Males and 31.7 years-old for Females. Stease business owner, Steven Silva, is a part of the Fresno Millennial generation, and it is important to him and the investors that this is utilized as a strength for the management and training of the millennial employees as he understands the majority of the target demographic of customers and employees and has the ability to adapt with a well-balanced understanding of the industry and how to relate to everyone. He looks to share his industry experience through apprenticeship and encouraging his employees to remain motivated and always challenged to improve personally, mentally, physically, and succeed. Building a team that can relate to one another and sees an opportunity to learn from everyone’s background is extremely STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 9 important to Silva. The core training will provide the employees with reliable, professional recommendations of the product, and a thorough understanding of brands and products on the shelf. It is heavily considered important in the eyes of the ownership team that Stease has a presence of appealing to all age groups, especially those cannabis consumers that have never been to a cannabis retail business nor do they feel comfortable in one. The mindset of appealing to everyone and having an employee demographic that is neutral and welcoming should give Stease the feeling of pleasure and ease in the, often, complicated and overwhelming experience of purchasing cannabis products. In addition to this feeling of shopping at legal cannabis retail businesses is overwhelming, convoluted, and sometimes scary for consumers, it has been found by the BDS Analytics in California’s report that nearly half of the six-month cannabis consumers are not shopping in stores at all, presumably, they are still relying on long-time illicit-market suppliers and their own plants. Surely, there is a larger market of consumers in the greater Fresno metropolitan area that fall into this category. It is crucial that Stease offers a location where these consumers can feel welcomed, have their questions answers, feel rewarded for providing business to a local, legal and tax-paying business, provide cannabis products at a reasonable price, and offer solutions for in-store purchase, express pickup, curbside pickup, and eventually delivery services. Stease intends to have local members of the employment team that are part of the Baby Boomer and Gen X generations in efforts to balance out the feeling of a younger employment opportunity. This balanced ratio shall encourage the company to grow equally and sustainably as it looks to expand hours, customer sales channels, and increase personnel over time as demand increases. Also, it is understood by Stease ownership and inventors the millennials, currently between ages of 24 and 38, may be the group hit hardest by the economic turmoil of the pandemic. According to Pew Research Center, 35% of Americans between ages 18 and 29, and 30% of those between 30 and 49 say they, or someone in their household, has lost their job. It is understood and that the current unemployment rates as of July 2020 are twice as high as July 2019. The number of unemployed youth rose from 1.7 million in February to 4.9 million in May, and declined to 4.0 million in July, with more than 1.9 million more unemployed 16- to 24-year-olds than in July 2019 About two-thirds of the unemployed youth in July 2020 were looking for full-time work. Stease also strives to support US Veterans in employment with key investors being veterans. Below is a chart that tabulates the 2020 unemployment rates as of Economic News Release on Tuesday, August 18, 2020: 2020 Unemployment Rates: Young Men 18.4% Young Women 18.6% Whites 16.7% Blacks 25.4% Asians 25.4% Hispanics 21.7% Source: www.bls.gov/news.release/youth.nr0.htm Since the coronavirus pandemic began to spike unemployment nationally, and the cannabis industry has been deemed an essential business and supply chain, there has been a drastic increase in the number of cannabis industry jobs. According to Marijuana Business Daily’s Annual Marijuana STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 10 Business Factbook, U.S. medical and adult-use cannabis sales will reach at least $15 billion in 2020, an almost 40% increase from 2019. The factbook also predicts industry employment could reach almost 300,000 full-time jobs this year (2020), which is a 50% increase from 2019. The strategy is to seek to hire currently unemployed personnel and train them for a career in the cannabis industry. 2.8.2 Commitment to Apprenticeships and Continued Education in the Field: Section 9-3316 (b.) (3.) (ii.) Stease employees will be compensated above their base living wage and benefits package and provided with opportunities for continued education inside and outside of the cannabis industry. Training is paramount at Stease as the business prides itself on well-rounded education and science- based customer service. This drive for a well-rounded company culture requires that all personnel to be thoroughly trained on the products, cannabis production process, business policies and procedures, employee rights, safety and security protocols, innovative sales strategies, and best ways to benefit themselves with self-care and mental health. Stease is providing the employees of the organization a performance-based mechanism in the form of an Employee Bonus and Incentive Program as additional compensation to the living wage and benefits “base” provided. This additional compensation is directly related to the motivation to excel with their job responsibilities and in their career in the cannabis industry. Stease employees are going to be constantly encouraged from management to continue education in the field and outside of the industry, so they have the best opportunity for success in their personal and professional lives. Stease management feels that the additional compensation is best achieved with diverse skills that the personnel can put to work to better themselves personally and professionally. Business Owner, Steven Silva, currently holds workshops geared for the hydroponics industry topics and how-to educational seminars on cannabis cultivation and extraction equipment technical support. The educational platform is Monster Gardens, and the workshops are called Monster Gardens University (MGU), which originated to train the employees at the Monster Gardens (and sister companies) on the cultivation process, equipment, integration, facility design, and technical support for the customers in the hydroponics industry. Monster Gardens is known for being a leading educator and value-added equipment vendor for the hydroponics and cannabis industry with over 400 YouTube videos and over 70,000 subscribers. Silva and his colleagues are currently viewed globally on over 11 videos during every minute of the day with leading industry technical educational videos through the Monster Gardens education platform. Silva plans to hold and operate Fresno-based MGU educational workshops at the Stease location that are offered to the Stease employees, local social equity businesses, and members of the public that are interested in building a fundamental understanding of the cannabis industry and how to properly design, engineer, and select equipment for a cultivation, extraction, and edible manufacturing facilities. This educational platform has always been free and will continue to be free in efforts to progress the maturation of the industry. In addition to helping contribute to the cannabis industry foundational knowledge of the supply chain and improving cultivation efficiency/techniques, Stease management feels that the MGU/Stease workshops will be an excellent way to train the employees with a breadth of knowledge of the supply chain, and also may provide the organization with a platform to recruit STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 11 individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC). Silva has many personal and professional relationships with leading cannabis companies, which will allow the Stease employees to tour these operations and understand the most robust way to sell the cannabis products in the inventory while supporting the customer/patient better than the majority of the competing cannabis retail business. Stease management is committed to monthly meetings within the employment staff to learn deeper details about indoor, greenhouse, and outdoor cultivation of cannabis and every aspect of the developments, the process mechanical equipment required for maintain a precise environment, the desirable setpoints, lighting and how to determine proper photometric lighting plans to optimize the trichome and flower production of the cannabis and hemp crop. Management feels that it is imperative that the staff understands the entirety of the supply chain, beyond what is seen at the retail level, so that there is an understanding of the production facilities and the process that is required to get the various products to the shelf and hands of the end-users. This trust in the supply chain starts at the top of the business and shall be passed down to every employee in efforts to tie a strong bond to the supply chain and provide the customers of the retail store with honest, trustworthy reviews and comments about the various products on the shelf. Stease feels that this competitive advantage of the supply chain relationships and in-depth educational foundation training for the employees will encourage a sustainable and well-rounded personnel. This training and educational platform will always continue and expand. 2.9. Social Equity Business Incubator: Section 9-3316 (b.) (3.) (ii.) Stease is committed to the growth and maturation of the cannabis industry, especially within the City of Fresno. Stease management has collectively decided to dedicate a reasonable percentage of shelf space in the retail Showroom display cases, Express Pickup display cases, website, and in-store signage promotions to the local social equity businesses. The cannabis retail business intends to promote local brands and provide a platform for social equity businesses to thrive within the Stease organization culture. Continued education, mentorship, training, and in-depth consultation about cultivation, extraction, and edible manufacturing process, engineering design, equipment selection technical support, installation and construction integration, and workshop seminars shall be held at the Stease location to help promote a mature marketplace and supply chain of commercial cannabis businesses in the City of Fresno and greater Central Valley. Stease company management feels that the local commercial cannabis businesses are going to thrive best when working together. Providing insight, market analysis, legal assistance, financial service assistance, and/or other technical assistance support seems like the best logical way to work together for the success of the local, state, and national industry as a whole. 1 Labor Peace Agreement By and between ___________(“Employer” or “_____”) and International Longshore and Warehouse Union (ILWU) Whereas Employer holds or intends to apply for one or more State Licenses to engage in commercial cannabis activity, and intends to become a licensee to engage in commercial cannabis activity, as such terms are defined by section 19300 of the Business and Professions Code; Whereas Employer desires to construct and operate commercial cannabis activities within the Union’s geographic jurisdiction, and desires to do so without disruption, unrest or delay that may be occasioned by labor disputes; Whereas the Union seeks a means of efficiently and amicably resolving disputes relating to its potential representation of employees engaged in the industry in which Employer seeks to operate; Wherefore, the Parties voluntarily enter into this agreement, which shall be binding on them and hereby establish the following procedure for the purpose of ensuring an orderly environment for the exercise by employees of their rights under Section 7 of the National Labor Relations Act and/or section 1152 of the California Agricultural Labor Relations Act (ALRA), if applicable, in order to comply with California law, and to avoid picketing and/or other economic action directed at the Employer in the event Union decides to conduct an organizing campaign among Employees. 1. The Employer shall remain neutral with respect to the Union and its representation of employees covered by this agreement. The Employer will not take any action nor make any statements that will directly or indirectly state of imply opposition by the Employer to the selection by such Employees of a collective bargaining agent, or reference for or opposition to any particular union as a bargaining agent. This provision shall not prohibit the Employer from presenting its own economic and benefits package to the Employees. 2. The Union may engage in organizing efforts in non-work areas during Employees’ non-working times (before work, after work, or on meal or rest breaks) and/or during such other periods as the parties may mutually agree upon, subject to Employer’s safety and security plan. 3. Union and Employer understand and appreciate the unique work site requirements for security and safety for the cannabis industry that Employer is required by law to comply. Employer and Union agree that Union organizing efforts must comply with all security and safety plans of Employer, local regulations and/or requirements, County regulations and/or requirements, and state regulations and/or requirements, and as otherwise required by law. Union understands and agrees union representatives engaging in organizing efforts and/or otherwise 2 entering the premises of Employer must comply with Employer safety and security protocols and policies. Employer will not obstruct efforts of Union to comply with Employer security and safety plan protocols. The Union shall not disrupt the Employer’s business and/or violate any security or safety regulations. Other than the monitoring of the work site required by the security and safety plan and otherwise required by law, the Employer will not engage in monitoring of the Union when the Union is engaging in unionizing activity in the non-work areas and non- work times with employees. 4. The Union agrees to communicate with employees in a positive manner and shall not denigrate the Company, its managers, supervisors, agents or representatives, or portray the Employer in a bad light to employees or to the public. 5. The Employer shall not present or portray the Union in a bad light to employees or to the public. 6. The Employer may not engage in a lockout. 7. The union will not engage in or encourage any strikes, slowdowns, picketing, boycotts, work stoppages, any other economic interference with the Employer’s business or other concerted activity, or engage in any hand-billing directed at the public except insofar as the parties agree in advance that such hand-billing is appropriate and not a breach of this agreement. 8. The parties understand that the California Agricultural Labor Relation Board (“ALRB”) may exercise jurisdiction over employees __________ determined to be “agricultural employees” within the meaning of Section 1140.4(b) of the ALRA. For that reason, ________ employees involved in cultivation or other agricultural activities will be treated separately, for purposes of union representation and collective bargaining, from other employees of ________. By agreeing to this provision__________ is not expressing a position whether any employees are subject to the ALRB, or are “agricultural employees’ within the meaning of Section 1140.4(b) of the ALRA. 9. Within ten (10) days following receipt of written notice of intent to organize Employees, the Employer will furnish the Union with a list of all its full-time and part-time non- supervisory and non-management employees engaged in commercial cannabis activities, the Employer shall provide to the Union the names, addresses, telephone numbers and work email addresses of non-supervisory and non-management employees, together with a designation of the work location and department/function of each listed employee, which shall be described with respect to one or more of the following categories: agricultural (cultivation) or non-agricultural, including manufacture, processing, laboratory, labeling, packaging, storing or warehousing, transporting, distribution, sale, and security/guards. The Employer shall update this list regularly and no less often than ten (10) working days, if requested in writing by the Union. The Union will keep employee names, addresses, telephone numbers and email addresses confidential and not use them for any other purposes than for the purposes of this Agreement. 3 10.A. Notice of breach. Should a party determine that the other may be in breach of this agreement, it shall inform the other in writing. The party so informed shall have 72 hours to cease and desist from the practice and/or provide an explanation of its action. In the event the aggrieved party is not satisfied, it shall invoke this dispute resolution procedure as the sole means of resolving the dispute. B. Resolution of Disputes. Any and all disputes regarding the interpretation, application or compliance with this Agreement shall be subject to binding arbitration, with the sole exception being injunctive relief sought for the purpose of maintaining the status quo pending the resolution of the particular dispute under this procedure. Should a dispute arise, either party may request a panel of seven (7) arbitrators from the Federal Mediation and Conciliation Service ("FMCS"). Arbitrators on the FMCS Panel must be members of the National Academy of Arbitrators from Northern California. The parties shall alternately strike from the FMCS Panel. The selected arbitrator shall provide dates and the parties shall agree on a date that is no longer than sixty days following the date on which they have selected the arbitrator. If he or she is unable to offer dates within such sixty day period, the jurisdiction to hear the dispute shall be offered to each arbitrator on the FMCS Panel in the reverse order that they were struck by the parties. At the conclusion of the hearing, the parties may submit oral argument. A final written decision may be issued by the arbitrator at the conclusion of the hearing or within three days of the close of the hearing. The parties to bare their own attorneys’ fees and costs related to resolution of disputes of this Labor Peace Agreement. 11. To the extent one or more terms of this agreement are determined to be invalid by a court of law or by a final decision of an administrative agency that is appealable only to a court of law, the remaining provisions shall be unaffected and shall remain in force and effect. 12.The parties warrant that their respective representatives who have executed this agreement have full authority to bind and obligate the parties to the terms set forth herein. /// /// /// 4 13. This Agreement shall be in full force and effect from the date it is fully executed on behalf of the Employer and the Union for a period of two (2) years, or if sooner, upon recognition of any union including the Union as the exclusive collective bargaining representative of _____________’s employees. Agreed and accepted this ___ date of ______: By:____________________________________ Name: Title: For Employer:___________________________ By:___________________________________ Name: Title: For the Union STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 1 3. Neighborhood Compatibility Plan Section 9-3309 (m.) (1.) (2.) (3.) 9-3307 (e.) (1) Community Relations Contact: RAS Watch (Ryan Schonfeld) Head of Security info@rassecuritygroup.com Steven Silva Business Owner ss@sbsilva.com Stease will strive to be a contributing member of the Fulton Corridor, Downtown Fresno, the City of Fresno, and the Central Valley overall. Steven Silva’s contact information shall be provided to each business and residence within one hundred (100) feet of the proposed location for the cannabis retail business, 748 and 750 Fulton Street, Fresno, CA 93721. Steven Silva shall also visit personally with the neighboring businesses and residences within and beyond the stated radius to introduce himself as the business owner and discussed in detail that the cannabis retail business is planned to be integrated to the historic neighborhood. It is of the utmost importance to Silva that the neighborhood is aware and believes that Stease will be a benefit in the short term and long term for the Fulton Corridor, Downtown Fresno, and the City of Fresno as a whole. Silva’s passion in the cannabis industry shall be demonstrated with all discussions and meetings with the neighborhood and plans to have a related face of the business to maintain communication in efforts to ensure compatibility and consistency in the prevention of nuisances and/or complaints about the cannabis retail business. During the first year of operation, business owner, manager, and community relations representative from the Stease shall attend meetings with the City Manager or his/her designee(s), and other interested parties as deemed appropriate by the City Manager or his/her designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of Article 33 of City of Fresno Municipal Code. After the first year of operation, the business owner, manager, and community relations representative shall meet with the City Manager or his/her designee(s) when and as requested by the City Manager or his/her designee(s). With comparable cities with similar ordinances and cannabis retail business use types, Stease has the ability to draft a neighborhood responsibility plan for the review of the authority having jurisdiction (AHJ), should it be requested. Based on these comparison examples, it has been found that the proposed use of cannabis retail business and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance. Applicant of the Stease demonstrates the compatibility with the surrounding character of the neighborhood and blend in with existing buildings. The proposed tenant improvements are allowing STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 2 for a restoration of the original look of the building and shall look like any other similarly situated building in the Fulton District and the Fulton Corridor as a whole. See Locations Section of this application for Site Plan, Elevations and Sections Plan. 3.1. Complaints: In the event Stease receives complaints from concerned citizens or businesses operating in the area, management has devised the following procedure to quickly, effectively and respectfully resolve any misunderstandings or concerns: 1) Before opening its doors, management will personally deliver contact information to all businesses operating in the area so they have a direct line of communication. 2) All business and personal complaints or concerns will be handled by upper-level management so as not to “pass off” any concerned party 3) Management will suggest a formal sit-down meeting with any concerned parties in the building’s upper-level mezzanine office whereby management is confident the situation can be deescalated Stease, its management and its company culture will be centered around treating everyone with the utmost respect. The Company is prepared and determined to prove it can operate cohesively with the community and represent Fresno in the highest regard possible. 3.2. Nuisance Avoidance and Management: Section 9-3307 (d) (4) Section 9-3309 (j) (1) (2) Stease has engaged with a professional mechanical and plumbing engineering firm that specializes in cannabis developments and tenant improvements. Management shall follow the guidance of the odor mitigation techniques, training, and implementation of the specified odor mitigation equipment per their mechanical design to deploy the best available odor control technology with redundancy to ensure odors from cannabis are not detectable off-site. In the event of a potential nuisance or impact on the surrounding community, Stease shall implement redundancy in the odor mitigation equipment throughout the building, as well as supplemental ozone generators on the exhaust air prior to termination to atmosphere in addition to the carbon filtration. Stease Management shall not begin operations with a supplemental ozone generator in addition to the carbon filtration in efforts to reduce the usage of ozone and discharge into the atmosphere. This shall only be considered in the rare chance that the proposed odor mitigation does not suffice to prevent nuisance in the surrounding community. Contracted mechanical engineers feel that due to the decreased cannabis odors emitted from a retail business compared to a cultivation operation, that the specified odor mitigation equipment is sufficient for the application. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 3 3.3 – 3.6. Odor Sources, Mitigation, and System Maintenance: See subsequent pages for Odor Mitigation Report: STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 4 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 5 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 6 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 7 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 8 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 9 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 10 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 11 Proposed preliminary mechanical design for exhaust/filtration to prevent odor. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 12 In addition to the filtered exhaust system specified by CES mechanical engineers, the ClensAir™ 6- stage Air Sanitization System from Current Culture (Fresno-based hydroponic supplier with lasting relationship with Stease management). This system by CCH2O exceeds EPA industry sanitation standards and works as a room scrubber that includes: a particulate filter; antimicrobial filter; UV lamps; Photocatalytic (TiO2); carbon odor control filter; and surface contaminant prevention filter system. This system shall be deployed in the Showroom where most of the odor-emission potential will be and adjacent to the exit where odorous air has potential to drift. This will also maintain a clean air environment for the customers and patients, which is advantageous for those risk adverse for shopping due to COVID-19. 3.7. Waste Management Plan: Stease shall have a dedicated secure waste receptacle for all waste to be disposed at the proposed location. 748 and 750 Fulton Street are combined for the same use and shall share the same waste receptacle. This receptacle shall be labeled as “General Waste.” General Waste receptacle shall be stored in a naturally ventilated and secure location in the rear of the proposed building, behind a full- height steel cage and lockable sliding gate. Cannabis products on-site shall be received and maintained within the tamper-proof and tamper-evident packaging from the licensed cultivator, manufacturer, and/or distributor. Any, and all, cannabis products that are accidently opened shall be stored in a dedicated waste receptacle labeled as “Cannabis Waste” and shall be stored within the limited-access area in the Secure Warehouse. This limited-access area shall be designed for mechanical ventilation and engineered to maintain negative air pressure consistent with the other limited-access areas that contain cannabis or cannabis products whereas the exhaust air is properly filtered prior to exhaust to atmosphere. Accidently opened cannabis and/or cannabis products shall be rendered unusable and unrecognizable by shredding and diluting with non-cannabis waste (i.e., dirt and/or sawdust) to render the product as waste and useless as consumable cannabis product. Only on the day of waste disposal pickup shall this “Cannabis Waste” receptacle be combined with the “General Waste” receptacle for pickup by municipal waste disposal company. Stease shall make a concerted effort within the organization to recycle as much as possible and place all recyclable waste into the blue receptacle labeled as “Recycling.” Weekly waste disposal will be consistent with the current municipal waste removal dates. Receptacle(s) shall be placed outside of the locked gate in the rear for trash collection in the rear alleyway. 1777 N. California Blvd, Suite 200 ph: (925) 979.9993 internet: Walnut Creek, CA 94596 fax: (925) 979.9994 www.thefireconsultants.com FIRE SAFETY PLAN 748-750 FULTON ST CANNABIS RETAIL STORE FRESNO, CA Prepared for: Stease, Co. 8050 N Palm Avenue, Suite 300 Fresno, CA 93711 20-2404 December 1, 2020 PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 1 FIRE SAFETY PLAN December 1, 2020 INTRODUCTION Stease Co. is planning to develop a retail store commercial cannabis business at 748- 750 Fulton Street in Fresno, CA. Stease Co has retained The Fire Consultants, Inc. (TFC) to evaluate the project and develop a fire safety plan to identify applicable fire protection criteria for the facility. This report will identify the major applicable fire protection requirements pertaining to the facility and will serve as the basis of discussion between design team members and the City Manager’s Office along with the Authorities Having Jurisdiction (AHJ), including City of Fresno Planning, Building and Fire Departments. The major design objectives are to protect the occupants and inventory from a potential fire and achieve and maintain compliance with the applicable codes. This report does not provide requirements from the insurer but incorporates these where they have been provided to us by the operator. APPLICABLE CODES The project will be subject to the requirements of the 2019 California Building Code (CBC) and California Fire Code (CFC) with City of Fresno amendments, 2019 California Historic Building Code (CHBC), Fresno Municipal Code and City of Fresno Administrative Regulations for Commercial Cannabis Business. BUILDING DESCRIPTION The Stease retail store will be approximately 1,200 square feet, and will occupy a portion of the ground-floor tenant space in an existing two-story building built in 1946. The building is listed on the Fresno Local Register of Historic Places (H.P. #261), and is the Historic Photo Engraving Building. The building is constructed of concrete exterior walls and wood frame interior and resembles Type III-B construction. The proposed layout of the retail store and associated offices is provided in Section 4.3. The City- approved floor plan will be finalized later, after City approval of the proposed project. The building will include approximately 1,200 square feet front-of house (public access) and the rest will be back-of-house (employee only). The employee-only areas will include approximately 2,000 square feet of offices and employee areas, and 4,000 square feet of warehouse space. The second story, which is not occupied by this tenant, is accessed by a dedicated stair from a separate exterior door on Fulton Street. OVERVIEW The Stease retail store is classified as Mercantile Group M per the Building Code and will include both front-of-house areas and back-of-house areas. Back-of-house areas may be classified as Group B business (offices) and Group S-2 storage (warehouse), and the overall building may use the non-separated occupancies approach per CBC Section 508.2 as the building area is within the allowable height and area for the most PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 2 FIRE SAFETY PLAN December 1, 2020 restrictive occupancy classification (Group M). The front-of-house areas will include an entry check-in lobby, waiting area, and retail showroom area. The back of house area will include the secured cannabis storage, offices, security room, employee break room and locker area, sales delivery dispatch, and the storage warehouse. Restrooms will be provided in both the front-of house and back-of-house areas. The retail store will sell a variety of cannabis products, including flower, pre-rolls, edibles, topicals, tinctures, concentrates, and some merchandise. The products will come pre-packaged from distributors; the retail store will not undertake any packaging in the store. If any products show up with defective or tampered packaging, the facility procedures will require these to be destroyed, and rendered useless/unrecognizable prior to disposal into the receptacle. The retail store will not include any operations related to cannabis growing, processing, or extraction. SAFETY PLAN The City of Fresno requires a Safety Plan for cannabis retail stores. This document is provided to address City requirements for a Safety Plan for the Stease cannabis retail store at 748-750 Fulton Street. 4.1 – FIRE SAFETY ASSESSMENT The Fire Consultants, Inc. (TFC) is a fire protection engineering and consulting firm with widespread experience conducting fire protection and life safety assessments, developing fire protection reports and code compliance assessments, as well as, designing fire alarm, sprinkler and special suppression systems and reviewing those designs by others. Mrs. Krystyna Gavin, P.E. is a licensed professional engineer, holding a Fire Protection Engineering (FP 1914) license in California. Construction Type and Allowable Area The building housing the retail store is an existing historic two-story building. The ground floor is approximately 6,500 square feet, and the second floor is approximately 2,500 square feet. The rear of the building includes a warehouse area (included in the building area), which consists of approximately 3,000 square feet on the ground floor plus a 1,000-square foot mezzanine, which is open to the ground floor warehouse. Per CBC 505, the mezzanine is limited to one-third the area of the unenclosed space below, and the mezzanine is not included in the building area or number of stories. The warehouse area is separated from the front portion with 1-hour rated construction. The front portion of the building is also separated into a north and south portion (suites 748 and 750) with 1-hour rated construction. As a Type III-B non-sprinkler protected building, the two-story building complies with the allowable height and number of stories for a Group M, B, or S-2 occupancy per CBC Tables 504.3 and 504.4. The building area is within the tabular area of 12,500 square PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 3 FIRE SAFETY PLAN December 1, 2020 feet as allowed for the most restrictive occupancy Group (Group M) per CBC Table 506.2. The building may be considered non-separated mixed use per CBC 508.3, with no occupancy separations required between Groups M, B, and S-2. Use and Occupancy The Stease retail store will contain a display and sales floor, a check-in lobby and waiting area, as well as inventory and storage rooms, offices, and supporting spaces associated with the retail store. The retail store will be classified as Mercantile Group M, as the retail store will be used for the display and sale of merchandise, and will include associated storage/stock of the goods incidental to the store per CBC Section 309.1, as well as assembly use spaces (with under 50 occupants) incidental to the store per CBC Section 303.1.2. In the rear portion of the building, the warehouse is considered Low-Hazard Storage Group S-2, and the offices and employee areas are considered Business Group B. Based on discussion with the operator, the Stease retail store will not contain flammable or combustible liquids or other hazardous materials as listed by CBC Tables 307.1(1) or 307.1(2). Any potentially hazardous materials in the facility would consist of limited amounts (5 gallons or less) of cleaning supplies. The intended operation by these standards is not classified as a hazardous occupancy. Housekeeping The Stease retail store management will maintain controls to prevent accumulation of combustible waste on the premises in accordance with CFC Section 304. All combustible waste material will be stored in approved containers or as acceptable to the Authority Having Jurisdiction until such waste can be removed from the premises. Trash containers with a capacity exceeding 40 gallons are required to be provided with lids and constructed of noncombustible materials, or of combustible materials with a peak heat release rate not exceeding 300 kW/m2 where tested in accordance with ASTM E1354 at an incident heat flux of 50 kW/m2 in the horizontal orientation. Dumpsters will need to comply with CFC Section 304.3.3. Outside the building, the space within 30 feet of the building or to the lot line is required to be maintained free of flammable vegetation or brush per CFC Section 304.1.2. Site Access The project will be a tenant improvement remodel within the existing tenant space on the ground floor of the two-story building. As this is a renovation to an existing building, re-evaluation of fire apparatus access roads, fire flow and fire hydrants based on Appendices B, C and D of CFC is not likely to be required. These requirements are always subject to review and approval of the Authority Having Jurisdiction. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 4 FIRE SAFETY PLAN December 1, 2020 Inhalation Issues/Threats The project will only include retail sales of cannabis products. The products will come pre-packaged from distributors; the retail store will not undertake any packaging in the store. The retail store will not include any operations related to cannabis growing, processing, or extraction. Therefore, there will be very limited to no inhalation issues or threats from the retail sales operation or Stease business at this location. Fire Alarm and Monitoring System The Stease retail store will be protected by a fire alarm system as required by Code and local ordinance. A licensed C-10 fire alarm contractor will be retained to provide any required shop drawings and permit submittals for revisions to the existing fire alarm system. A licensed C-10 fire alarm contractor will also be utilized for the required inspection, testing and maintenance (IT&M) and monitoring of the fire alarm system. 4.2 – ACCIDENT AND INCIDENT PROCEDURES In an emergency situation regarding fire, earthquake, medical, and/or hazardous situations, the procedures are to stay calm, ensure that all personnel are safe and prepared for the event as trained. Immediate action is to inform the Manager(s) and/or Business Owner. If there is personnel injured or having an medical emergency that cannot be managed with the First Aid kits on-site located in the Manager’s Office and Break Room, the current Manager on shift shall immediately call 911 to bring medical assistance to the retail business location. Once the medical assistance is en route to the retail business location, the next person to contact is the individual listed as an emergency contact for the employee in the personnel files. Below is the contact information for Stease Management: Emergency Contact: RAS Watch (Ryan Schonfeld) Head of Security Steven Silva Business Owner Joshua Craig Sales Manager Lawrence “LJ” Lopez Sales Manager Alton “Duke” Doulphus Jr. Sales Manager Bradley Silva General Counsel Stease Co. has a form to document, track and submit accidents and incidents to the proper authorities. As a retail store, with no processing, extraction or manufacturing PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 5 FIRE SAFETY PLAN December 1, 2020 operations, the nature of any accidents or incidents is anticipated to be equivalent to any comparable retail establishment. Accident and Incident reporting form PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 6 FIRE SAFETY PLAN December 1, 2020 4.3 – DESCRIBE EVACUATION ROUTES Figure 1- Egress travel path, common path of travel, occupant loads, and exit separation for Stease. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 7 FIRE SAFETY PLAN December 1, 2020 The proposed retail site building includes two evacuation routes as shown above, where both discharge to Fulton Street; one through the main entry/exit door for the north side, and one through the main entry/exit door for the south side. Each evacuation route is separated from the other by 1-hour fire resistance rated construction in the front area of the building. The south side serves the public retail area as well as some employee areas, and the north side serves employee-only areas. The blue dimensional arrows above show the exit separation for the warehouse, because the warehouse requires two exits. The front portion of the building only requires one exit from each space (north and south). The existing configuration of the rear warehouse area did not provide the required exit separation. The longest diagonal of the existing warehouse is 92 feet, and the exit separation for the warehouse is 26 feet (prior separation was only 37 feet as one door will be relocated) which does not meet the current code requirement of 46 feet (92 ft / 2 = 46 ft). As an existing historic building with no change of use to a higher hazard classification, this arrangement may be acceptable to the Authority Having Jurisdiction in accordance with the Fresno amendment to CFC Section 102.6 (Fresno Municipal Code Section 10-50102.6) which does not require conformance to the CFC requirements for new construction, provided the AHJ determines that this does not constitute a distinct hazard to life or property. Alternately, the project could provide an egress door to the rear of the building to meet the required exit separation per the current CBC 1007.1.1 and improve the existing configuration. Two options are being considered: adding a rear door, and discussing the historical building with the City Building Department. Once Stease is awarded a license to sell cannabis from this retail location, the rear egress configuration and final egress plans will be resolved and meet City Building Department approval. If the emergency requires evacuation from the premises, occupants will refer to the Evacuation Route Plan, which will be similar to Figure 1 with additional information from Figure 2, such as locations of fire extinguishers. An enlarged printed copy of the Emergency Evacuation Route Plan shall be located for customer and employee view in the Waiting Room, Showroom, Break Room, and Warehouse areas. All personnel, employees and security guards, shall be thoroughly trained for emergency situations and protocols in place for safely exiting the building in the event of emergencies. If there is a loss of power, the lighted EXIT signs shall illuminate and point in the direction of egress. If there is a fire inside the building, evacuate safely and calmly. Fire extinguishers are located throughout the building and along the evacuation route. The occupant load for the uses of the spaces in the retail store is tabulated below per CBC Table 1004.5. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 8 FIRE SAFETY PLAN December 1, 2020 Use of Space Occupant Load Factor (sq ft/ person) Space Approx. Area (sq ft) Occupant Load (persons) Waiting Area 130 9 Lobby/Trap Room/Check-in 55 4 BOH Conference Room 170 12Unconcentrated Assembly 15 net BOH Break Room 120 8 Mercantile 60 gross Retail Area 910 16 Secure Inventory 90 1 Secure Vault 80 1 Express Orders 110 1 Storage, Stock, Shipping Areas 300 gross Sales Office Deliveries Dispatch 190 1 Storage Mezzanine 1,000 2 Warehouse 500 gross Open Warehouse 4,000 8 Locker Rooms 50 gross BOH Locker Area 180 4 Security / IT Room 120 1 Front-of-house Exit Hallway and Circulation 129 1 CEO, CFO Offices 330 3 Manager Office 69 1 BOH restroom, circulation areas by Offices 252 2 Business Areas 150 gross BOH restroom, circulation areas by Warehouse 251 2 Total 77 The retail store and overall ground floor tenant space is separated into front-of-house areas and back-of-house areas. Also, the warehouse portion is separated from the front portion with 1-hour rated construction, and the north and south portions of the front are separated from one another by 1-hour rated construction. The occupant load for the north front portion is 20, and the occupant load for the south front portion is 31 as PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 9 FIRE SAFETY PLAN December 1, 2020 shown in Figure 1. The occupant load of the warehouse portion is 26, where these occupants are provided with one exit to the north front portion and one exit to the south front portion. In the front portion, the occupant load of each side plus the occupants egressing through the space from the warehouse is less than 50 occupants, requiring one exit from each area (north and south). The egress path of travel limitations (measured in feet) for the occupancy within the retail store and associated offices and warehouse is provided below per CBC Chapter 10 for non-sprinkler protected and sprinkler protected buildings. This is required to be measured along the natural path of travel. The proposed layout is within these travel distances for non-sprinklered buildings, as shown in Figure 1. Occupancy Common Path of Travel Exit Access Travel Dead End Length Group M (Non-Sprinklered)75 200 (250 if sprinklered) 20 (50 if sprinklered) Group B (Non-Sprinklered, occupant load less than 31; or sprinklered) 100 200 (300 if sprinklered) 20 (50 if sprinklered) Group B (Non-Sprinklered, occupant load greater than 30) 75 200 (300 if sprinklered) 20 (50 if sprinklered) Group S-2 (Non-Sprinklered, occupant load less than 31; or sprinklered) 100 300 (400 if sprinklered) 20 (50 if sprinklered) Group S-2 (Non-Sprinklered, occupant load greater than 30) 75 300 (400 if sprinklered) 20 (50 if sprinklered) Where the occupant load will exceed 49 in Groups B and M, or exceed 29 in Group S-2, or where the common path limitation is exceeded, a minimum of two exits are required per CBC Table 1006.2.1. These exits are required to be separated by a minimum of one-half the longest diagonal of the area served for non-sprinkler protected buildings, and one-third the longest diagonal of the area served for sprinkler protected buildings. For each north and south portion of the front, the travel distance to an exit is within the maximum common path of travel of 75 feet for Group M therefore a single exit is required for each portion. For the warehouse and office areas in the rear, the travel distance to a point where the occupants have a distinct choice of two exit paths is within the 100 feet maximum for Groups B and S-2 with less than 31 occupants. The exit configuration is shown in Figure 1. Stease Co. will install listed panic hardware on the exterior exit doors to meet CBC 1010.1.10 and UL 305. Doors that serve an occupant load over 49 are required to swing in the direction of egress travel, per CBC 1010.1.2.1. The exterior exit doors serving the retail showroom and back of house areas will swing in the direction of egress. All doors in the evacuation route will be self-closing to ensure PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 10 FIRE SAFETY PLAN December 1, 2020 the access-control and limited-access zones are protected in an emergency event when Stease personnel evacuate the premises. CBC 1010.1.9 requires all egress doors to be readily openable from the egress side at all times, requiring only one operation to open the door, without the use of a key or special knowledge or effort, except in specific situations. The Ordinance Article 33 of the Fresno City Code for Commercial Cannabis Business requires the retail area access door be locked at all times with “buzz-in” access through the electronically secured door from lobby. This door shall be unlocked and readily openable from egress side (retail side), all times. The main door is allowed to be provided with a locking device on the egress side, provided the following requirements are met: a. The locking device is readily distinguishable as locked, and b. A readily visible durable sign is posted on the egress side of the door (inside) on or adjacent to the door, stating “THIS DOOR TO REMAIN UNLOCKED WHEN THIS SPACE IS OCCUPIED” in 1-inch black letters on a contrasting background. Certain egress doors in the retail store will be provided with card readers to control access into the retail store, back-of-house areas, and cannabis goods storage and inventory rooms, as noted on the sketch in Figure 2. This is to meet Article 33 of the Fresno City Code for Commercial Cannabis Business. These doors will be arranged to meet the following provisions per CBC Section 1010.1.9.10 to allow for free egress: a. The door hardware that is affixed to the door leaf has an obvious method of operation that is readily operated under all lighting conditions. b. The door hardware is capable of being operated with one hand and does not require more than one operation for unlatching. c. Operation of the door hardware directly interrupts the power to the electric lock and unlocks the door immediately. d. Loss of power to the electric locking system automatically unlocks the door. e. Operation of the panic hardware releases the lock. f. The locking system units are listed in accordance with UL 294. The exit path from the occupied spaces in the rooms or through corridors will need to be a minimum unobstructed width of 36 inches where serving less than 50 occupants; the width increases to 44 inches if serving 50 or more occupants per CBC Table 1020.2. The aisles are required to meet these widths, and the aisle accessways (if not required to be accessible) are required to be at least 30 inches wide per CBC Section 1018.3 and 1018.4. As discussed above, the retail store is 1-hour separated into a north and south portion in the front, which is 1-hour separated from the rear warehouse portion, where each area (north and south front) has independent exiting and each serves less than 50 people (including occupants from rear warehouse and office areas) such that one exit is required from each north and south front area. The exit path is allowed to pass through intervening rooms that are accessory to one another, provided that the required width is met, and a discernable path of egress travel is provided per CBC 1016.2. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 11 FIRE SAFETY PLAN December 1, 2020 Exit signs are required for rooms where two exits are required, per CBC Section 1013. The facility will be provided with illuminated exit signs to facilitate egress. Emergency lighting will be provided for the means of egress in the facility to meet CBC Section 1008. The facility will be provided with emergency access and emergency evacuation plans to meet state and local fire standards. The facility will not employ any devices that emit any medium such as smoke or fog that could obscure the means of egress in the building as prohibited per CFC Section 316.5. 4.4 – FIRE EXTINGUISHERS AND OTHER FIRE SUPPRESSION EQUIPMENT LOCATION Sprinklers The existing building is not currently provided with a sprinkler system. The original, and prior use of the building was a photo business, with a dark room in the back (current warehouse area). Per the occupancy classifications of the 1950-era building codes (the Uniform Building Code (UBC)), this would most likely have been a Group F-2 occupancy. This occupancy classification included wholesale and retail stores and office buildings. Warehouse areas were required to be separated from public areas by 1-hour rated separation, which is provided for the existing building. The proposed use is similar to the previous use, where both uses include a retail area in front and warehouse area in back, and associated offices, and based on this we would not consider this to be an increase in hazard, however this could be considered a change of occupancy. This will need to be confirmed with the Authority Having Jurisdiction (AHJ). If the building is considered to undergo a change in occupancy use or character, the qualified historic building will need to conform to the requirements applicable to the new use or character of occupancy per the California Historic Building Code (CHBC) and the Fresno Municipal Code Sections 10-50903.1 through 10-50903.3.5.1.2, per Section 10-58103 of the Fresno Municipal Code. This would require sprinkler protection in the existing building if the proposed use is deemed more hazardous than the prior use, unless the area where the change of occupancy occurs is less than 25% of the floor area, per Fresno Municipal Code Sections 10-50903.6 (Amendment to CFC Section 903.6 Item 4). This will be discussed with the AHJ and confirmed as the design progresses, upon successful application process and award of a license. We recommend an automatic sprinkler system be provided, as this enhances life safety, enables code compliance more easily, and provides property protection and can reduce business interruption in case of a fire. The secured cannabis goods storage and inventories will include storage of the products on racks or shelves in cardboard packaging. The retail display area will contain products in display cases. The inventory is anticipated to include up to a Class IV commodity per the CFC, containing primarily the cannabis products in cardboard and plastic packaging. This is not considered a high-hazard commodity such as flammable liquids or rubber tires or Group A plastics. The product stacking on the display shelving PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 12 FIRE SAFETY PLAN December 1, 2020 and storage shelving will need to be maintained where the top of storage is no higher than 12 feet above the floor. The inventory is not considered a high-hazard commodity and therefore should not be classified as high-piled combustible storage per the CFC if the top of the storage is maintained under 12 feet. Storage of any plastics or foams such as shipping supplies will need to be maintained under 6 feet to avoid classification as high-piled combustible storage per the CFC. As the design progresses, if it is determined that a sprinkler system is required, the system will need to be designed by a licensed sprinkler contractor (C-16 Contractor). The sprinkler system design shall be in accordance with NFPA 13, Standard for the Installation of Sprinkler Systems and California Building and Fire Code and City of Fresno amendments. The sprinkler system will need to be inspected, tested, and maintained in accordance with the California amended version of NFPA 25, Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems. Fire Alarm Based on discussion with the Owner/operator, we understand that the retail dispensary tenant space will be provided with a fire alarm system. The fire alarm system shop drawings, including initiation devices and occupant notification, will be provided as part of the tenant improvement. Typically, the fire alarm will consist of combination smoke / carbon monoxide / heat detection (and sprinkler waterflow if the facility will be sprinkler protected) connected to a fire alarm control panel, and the initiation of such devices will automatically notify emergency responders and employees and public customers. If an automatic sprinkler system is provided, the facility shall include at least one exterior approved audible device, activated by sprinkler water flow as required by CBC Section 903.4.2. Upon actuation of the automatic sprinkler system, the fire alarm notification appliances throughout the facility will activate. The fire alarm system will also be required to monitor the sprinkler system. The fire alarm system will need to be installed, inspected, tested, and maintained in accordance with NFPA 72, National Fire Alarm and Signaling Code and California Fire Code and Title 19. Fire Extinguishers The retail store is anticipated to contain Class A fire hazards, which are ordinary combustibles such as paper and wood, and Class C fire hazards, which are electrical fires. The primary hazard in the facility is anticipated to be Class A fire hazards. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 14 FIRE SAFETY PLAN December 1, 2020 Figure 2- Possible location of fire alarm devices including smoke detectors and CO detectors, fire alarm control panel and fire extinguishers. The fire alarm contractor shall provide the final drawings and verify it meets requirements of NFPA 72. CO detectors are required due to a gas water heater in property. No other hazardous gas will be utilized or stored in the property. 4.5 – PROCEDURE AND TRAINING FOR ALL FIRE AND MEDICAL EMEGENCIES Stease will establish an employee training program to provide training to employees for response to common fire and medical emergencies. General safety procedures will be documented and reviewed with new hires as part of the formal hiring process and reviewed annually with all staff members. The local emergency contact phone numbers will be conspicuously displayed in the employee break room and at the reception desk in case of fire or medical emergency. Employees will be trained to evacuate the building upon any fire alarm signal and at least two employees will be trained to assist public customers with evacuation during a fire emergency. Employees will also be trained to assist if a customer requires medical assistance within the store. During emergency situations when an employee requires medical treatment for an occupational injury or illness, the local emergency ambulance shall be used to provide transportation for that employee unless other arrangements have been made. In all PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 15 FIRE SAFETY PLAN December 1, 2020 other cases a representative of Stease will transport personnel to clinics and medical facilities. HOURS OF SITE OPERATION The normal working hours for the facility are from 9:00 AM PST until 9:00 PM PST, seven (7) days a week. There shall be 24-hour security surveillance and recording on- site seven (7) days a week. There shall be on-site security guards stationed during all operating business hours. Visitors Other than for customers, access to the retail store is limited to authorized personnel, and approved visitation only. Approved visitation shall take place by appointment only, unless it is by City of Fresno’s City Manager and his/her designees, City Attorney, City Council, or any city official for the City of Fresno that is authorized to visit the cannabis retail business on a moment’s notice. All visitors must sign in at the same location as the customers, provide the security and/or receptionist with appropriate credentials, wear an assigned visitor badge, and be accompanied at all times by cannabis business’ designated authorized personnel. Children (under the age of 18) will not be permitted to move through the security entrance and shall be stopped by the security guard and/or cannabis retail personnel working at the front of the business entry door. Any persons under the age of eighteen (18) years of age shall have a medical recommendation prescribed by a medical physician to purchase and consume cannabis and cannabis products. EMERGENCY SITUATIONS In case of emergency, please contact the following individuals in the following order: Emergency Contact: RAS Watch (Ryan Schonfeld) Head of Security Steven Silva Business Owner Joshua Craig Sales Manager Lawrence “LJ” Lopez Sales Manager Alton “Duke” Doulphus Jr. Sales Manager Bradley Silva General Counsel a.LOSS of POWER: The building will be equipped with backup power generation for security servers, access control, door locking mechanisms, building alarm system, camera, and all security-related functions. In case of power outage, please follow steps described below. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 16 FIRE SAFETY PLAN December 1, 2020 1. If needed, access a flashlight and move safely towards the closest lighted exit. 2. If power is only out within a section of the building, check subpanels that might be located closest to the outage. If breakers have moved within the panel, contact your local electrician. 3. Check backup power generation to ensure it is operating properly. 4. Have authorized personnel check status of the power supply within the power room. 5. Contact local electrical municipality to solve power outage. b.EARTHQUAKE: The building will be approved for seismic safety. In case of earthquake, please follow these steps provided below. 1. Stop, Drop, Cover. Find the closest doorway to stand inside, under a desk, or under a garden bench. 2. Stay in cover position for at least 5 minutes following the event. 3. Find your way to the closet lighted exit and move towards the identified meeting spot outside the building that will be located away for any building structure. c.FIRE or SMOKE: The building will be equipped with smoke alarms and handheld fire extinguishers. Fire extinguishers are to be located no further than every 75 feet, and along the emergency evacuation route. Class A fire extinguishers are located throughout the building, in hallways, and within the break room and manager’s office. Class C fire extinguishers are to be located adjacent to all electrical equipment. In case of smoke or fire, please follow these steps provided below: 1. Warn all staff on the premises. If you pass a handheld extinguisher while alerting personnel, grab it to take with you as a precaution. 2. If a fire alarm sounds, the self-evacuation of all occupants is expected to commence immediately. 3. Contact local fire department as soon as you are evacuated from the facility. 4. When outside the building, use a cellular phone to contact everyone who is on staff (or visiting). The goal is to gather a head count and to identify if anyone is left in the building. If the building is on fire or showing smoke, do not enter the premises to search, allow the local fire department to arrive and assess the situation. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 17 FIRE SAFETY PLAN December 1, 2020 First Aid Log Any work related injury or illness that is reported to a first-aid facility or medical facility must be recorded on a First-Aid Log form. This includes non-occupational cases and injuries or illnesses treated that involve vendors, suppliers, Contractors/Subcontractors, client personnel, and any other third party. First-Aid Logs or any portion of a log are not for general distribution. Requests for such information shall be processed by the human resource manager/supervisor. First Aid Kits First aid supplies shall be easily accessible when required. First-aid kits and required contents are maintained in a serviceable condition. Unit-type kits have all items in the first-aid kit individually wrapped, sealed, and packaged in comparable sized packages. The commercial or cabinet-type kits do not require all items to be individually wrapped and sealed, but only those which must be kept sterile. Items such as scissors, tweezers, tubes of ointments with caps, or rolls of adhesive tape, need not be individually wrapped, sealed, or disposed of after a single use or application. A roster, denoting the telephone numbers and addresses of doctors, hospitals and ambulance services available to the Stease retail store, shall be posted at or near each first-aid station. Safety Rules for All Employees It is the policy of Stease that everything possible will be done to protect employees from accidents, injuries and/or occupational disease while on the job. Safety is a cooperative undertaking requiring an ever-present safety consciousness on the part of every employee. If an employee is injured, positive action must be taken promptly to see that the employee receives adequate treatment. No one likes to see a fellow employee injured by an accident. Therefore, all operations must be planned to prevent accidents. To carry out this policy, the following rules will apply: 1. All employees shall follow the safe practices and rules contained in this manual and such other rules and practices communicated on the job. All employees shall report all unsafe conditions or practices to the proper authority, including the human resources manager/supervisor. 2. The human resources supervisor/manager shall be responsible for implementing these policies by insisting that employees observe and obey all rules and regulations necessary to maintain a safe workplace and safe work habits and practices. 3. Good housekeeping must be practiced at all times in the work area. Clean up all waste and eliminate any dangers in the work area. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 18 FIRE SAFETY PLAN December 1, 2020 4. Suitable clothing and footwear must be worn at all times, shoes with thin or torn soles are not permitted. 5. All employees will participate in safety meetings conducted by their supervisor on a regular basis to continuously provide a safe workplace for all. This is an essential part of Stease program for protecting our employees from accidents and illness. 6. Anyone under the influence of intoxicating liquor or drugs, including prescription drugs which might impair motor skills and judgment, shall not be allowed on the job. 7. Horseplay, scuffling, and other acts which tend to have an adverse influence on safety or well-being of other employees are prohibited. 8. Work shall be well planned and supervised to avoid injuries in the handling of heavy materials and while using equipment. 9. No one shall be permitted to work while the employee's ability or alertness is so impaired by fatigue, illness, or other causes that it might expose the employee or others to injury. 10. There will be no consumption of alcohol or cannabis on the job. 11. All injuries should be reported to the Supervisor, or 911 so that arrangements can be made for medical or first aid treatment. 12. When lifting heavy objects, use the large muscles of the leg instead of the smaller muscles of the back. 13. Do not throw things, especially material and equipment. Dispose of all waste properly and carefully. PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 19 FIRE SAFETY PLAN December 1, 2020 PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 20 FIRE SAFETY PLAN December 1, 2020 PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2404 – Page 21 FIRE SAFETY PLAN December 1, 2020 CONCLUSION This report presents the fire safety plan for the proposed retail store under consideration by Stease, Co. in Fresno, CA. If a protection approach as described in these sections is employed and the facility, inventory, and arrangement is as described herein, our opinion is that the design will meet the applicable requirements and provide adequate protection in accordance with the CBC, CFC, and City of Fresno amendments. We recommend that the information in this report be discussed with the City Manager’s Office and the various Authorities Having Jurisdiction to confirm the approach. Prepared by: THE FIRE CONSULTANTS, INC. 12/1/2020 Krystyna E. Gavin, P.E.Date KEG/JRS 20-2404/ RPkg 748-750 Fulton St Fire Safety Plan SITE SECURITY PLAN #: 2020-1127-01 Page 1 of 23 SITE SECURITY PLAN #2020-1127-01 Stease Co. Fresno, CALIFORNIA November, 2020 STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 1 6. Location 6.1. Site Description: Section 9-3307 (a.) (b.) (c.) (d.) (1.) (2.) (3.) (4.) (5.) (6.) (7.) (8.) (e.) (1.) (2.) (3.) Proposed location for Stease cannabis retail business is located within District 3 in the Downtown Neighborhood (DTN) zoning and meets all requirements for development in these zones. See Appendix J for Zoning Inquiry Number P20-04106 Letter of confirmation that proposed location satisfies all requirements. Business address is 748 and 750 Fulton Street, Fresno, CA 93721, which is a 2,500 SF retail and office building, and 4,000 SF of secure warehouse space situated on the edge between Fresno’s Historic Fulton District and South Stadium in the expansive Brewery District. Cannabis retail business shall be contained on the ground level only. Second floor is designated for non-cannabis use type and shall have an independent ingress and egress to the second floor only. There shall not be any way of infiltrating or mobilizing between suites. The proposed building was the original Fresno Photo Engraving Building of 1946 and is on the historical register in the Historic Fulton Corridor. The building shall be renovated with consideration to maintain the original historic finishes and consistent with the general plan of the area. The strong linear planes and use of plate glass on this building are typical features of the International style. Building has three (3) suites that have all been vacant for over ten (10) years. Building utilized for Stease is currently and shall remain a fully enclosed building that maintains no visibility of cannabis or cannabis products from the public right-of-way. Proposed site development is consistent with an conforms with the General Plan of the City of Fresno and the specific Fulton Corridor and each surrounding District. Proposed site complies with all applicable zoning and related development standards. Proposed tenant improvements will be designed and constructed in a manner that cannabis-related odor shall not be detectable from outside of the premises and prevents odors to surrounding uses. The mechanical HVAC system has been designed and engineered to maintain negative air pressure to the adjacent zones. All exhaust air from the cannabis retail business shall come in adequate contact time with the activated carbon media prior to rejected to atmosphere. Zones where product is stored, handled, and dispensed shall be designed with redundancy in air filtration with an additional independent commercial fans, carbon air filters, and UV ionizing and sterilizing air filters that maintain fresh air circulation in the given zone. Exhaust air shall be terminated through the roof to atmosphere no less than 10 feet from the property line. Proposed site location and tenant improvements allow for adequate size and shape to accommodate all items required for the development and future expansion capacity. Below is a summary of the geographic highlights that surrounds the Stease cannabis retail business. This location is designed to be the flagship location and main headquarters of the Stease cannabis brand with additional locations to follow should management identify promising opportunities outside of the City of Fresno. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 3 Site located is served well by nearby freeways, highways, and wide streets. The Fulton District has been designed with wide walkways and sidewalks to accommodate heavy foot traffic. Site has metered parking directly in front of the location and all along the Fulton Street. There is also City of Fresno’s Parking Garage #7 (The Spiral Garage) public parking only two hundred (200) feet away. Site has adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose of a cannabis retail business. Proposed tenant improvements allow for newly furnished plumbing fixtures, water treatment, water heater, and alarm. Site was approved by the City of Fresno for a new, commercial electrical panel and independent meters servicing all units in building: 748, 750, and 752 Fulton Street. PG&E shall connect service at the point of connection on before the end of the 2020 year. Building had new roof and stormwater drainage system replaced in 2015 and has been surveyed in 2016 with confirmation of adequacy and quality workmanship on the hot-mop asphalt roof. Stease shall comply with all applicable zoning and related development standards, but not limited to: Parking: Site has metered parking in front and City-owned public parking garage 200 feet away. Since the proposed site will be utilizing and occupying both ground-level retail suites, there will be twice the amount of metered parking stalls in front of the building. The business shall utilize the front parking stalls for Express Pick-Up orders and curbside pickup orders. Part of the standard operating procedure for new customers is to inform them and encourage them about the Express Pickup and Curbside Pickup orders when they are aware of the cannabis products they want and do not prefer to wait in the line. This procedure shall encourage a rapid shopping experience and turnover of customers for those customers that already know what they want. The employees of the business shall also inform each customer about the City parking garage that is 200 feet away and encourage them to keep front parking stalls free for Express Pickup and Curbside Pickup orders. In efforts to streamline the parking for the Stease, the employees, social media, and store signage shall inform customers of the delivery services that are offered to deliver cannabis products directly to their home or place of business. Building Materials: Building shall be renovated back to the original look with a modern exterior and interior finish with brick, concrete, wood, and glass. It is important to the building owner and the business owner that the proposed building continues to appeal to the General Plan of the Fulton Corridor, Downtown Fresno, and maintains a historic, yet modern, look. The Architect proposed to be hired for this scope of work is Charles Westin of Westin Miles Architects, who is considered a leading professional architect in the field and specializes in historic buildings, and LEED Certification for Green Buildings. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 4 6.2. Photo Essay: Vicinity Map Aerial Photograph Original Fresno Photo Engraving Building photograph sited from the Fresno Historic Building Register Photograph of current view of front of the building, street view of 748, 750, and 752 Fulton Street STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 5 6.3. & 6.3.1. Site Plan: Photograph of Brewery District Neighborhood from Spiral Garage. Photograph of the current exterior sign in front of building STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 9 Floor Plan Room Descriptions: Lobby/Trap Room 9-3310 (a.) (4) Entry from the retail business exterior leads directly into a Lobby/Trap Room where customers/patients await verification of qualified credentials to purchase cannabis products. This ensures that unauthorized persons are not allowed to pass this room to enter the Waiting Area, and ultimately the Showroom for cannabis product purchases. Entrances shall be locked at all times ad strictly controlled and monitored with surveillance cameras. Entry door on building exterior and into the retail showroom are to be equipped with self-closing and self- locking hardware and shall be equipped with an electronic/mechanical “buzz-in” entry system to limit the access. Individual customers are required to show their identification in order to gain access to the cannabis retail business. Waiting Area Customers/patients that are approved by the receptionist are to enter the Waiting Area to wait to be allowed to enter the Showroom for cannabis product purchase. This area shall be locked at all times ad strictly controlled and monitored with surveillance cameras. Once a retail sales associate is ready to assist a customer/patient, the customer/patient is admitted one-by-one into the retail Showroom area. Security will be responsible for monitoring the flow of traffic into and out of the retail Showroom area. Showroom Primary retail location where the dispensing of cannabis and cannabis products, merchandise, and cannabis accessories takes place face-to-face with the customers and patients. In this room, inventory items are to be stored within lockable retail display cases, cabinets, freezers, and refrigerators for storage until the product is purchased. Showroom shall contain stationary point-of-sale (POS) systems and mobile payment terminals for transactions. Minimum quantity of inventory shall be stored within the retail Showroom at any given time. All backstock inventory shall be stored within the limited-access area, Secure Inventory Room and stocked outside of normal business hours or periodically during business hours as required. Express Pickup Secondary retail location where the dispensing of cannabis and cannabis products, merchandise, and cannabis accessories takes place face-to-face with the customers and patients that are typically repeat customers, more experienced customers, or customers avoiding the Showroom line. This area shall be used for orders placed online or over the phone prior to customer arrival at Stease. The design intent behind the Express Pickup area is to encourage an expedited customer experience and increased throughput capacity of sales. Having experienced customers utilize the Express Pickup shall encourage new, less experienced customers to spend STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 10 more time with the retail business sales personnel to ensure they are getting the answers provided with the attention they deserve. Offices Behind the retail Showroom are the support offices. The design intent behind the offices is to have management offices, sales offices, delivery and dispatch office, and conference areas to support the operations of the cannabis retail business. To ensure that there is not a potential security breach, all office personnel shall enter the same main entry door and must go through secured and locked doors under surveillance. Secure Vault Building comes equipped with a secure vault. Stease shall utilize the secure vault for cash and weekly operating/working capital. All monies stored within the secure vault shall be kept to a minimum to maintain business operations. Frequent deposits via secure transport vehicle shall be utilized daily or as frequent as necessary. Secure Inventory Room Cannabis and cannabis products that are designated as inventory in the California Cannabis Track-and-Trace (CCTT) system and POS system shall be stored in the Secure Inventory. This room is a limited-access zone and the interior and exterior are under 24/7 surveillance, motion detectors, and equipped with a panic button in the event of an emergency. Room has redundant security protocols to ensure cannabis inventory has lowest probability of theft or alteration. Warehouse Warehouse is a secure, central location in the warehouse that allows for additional secure inventory storage and primarily used for picking, packing, and staging orders for inbound/outbound deliveries of cannabis and cannabis products. This space has been planned to remain open to allow the business to grow and potentially design additional tenant improvements depending on which aspect of the business receives the most demand. Vehicle traps and redundant access control ensures the cannabis retail business is securely protected in the Warehouse areas. Secure Delivery Receiving Warehouse Secure Delivery/Receiving Warehouse is the primary vehicle trap in the rear portion of the warehouse that is used for inbound/outbound vehicular deliveries. This space allows business personnel to feel comfortable about taking them time to ensure accuracy in the inbound/outbound delivery protocols. All cannabis and cannabis product inventory is thoroughly counted and inspected prior to receiving into inventory and moved into its desired location within the retail sales areas and/or Secure Inventory Room. This area is a redundant STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 11 vehicle trap in addition to the exterior cage/vehicle trap on outside of secure rollup door. Storage Mezzanine Storage Mezzanine is an existing mezzanine platform in the warehouse area. This area shall not be used for storage of cannabis or cannabis products. This storage area shall not be used, except for possible overstock storage of linens, small quantities of cleaning products, apparel overstock, and/or miscellaneous supplies. This storage mezzanine area will not be considered an occupied space for personnel, though it is rated for a live load. The area will be equipped with security cameras and motion detectors to surveillance any personnel that may be present in this area. The area below the mezzanine will also be equipped with security cameras and motion detectors to prevent potential hiding places for personnel. 6.5. Sign Plan: Section 9-3307 (e.) (3) Section 9-3309 (h.) (1.) (2.) (3.) (4.) (5.) (i.) (2.) (3.) (j.) (1.) (2.) Section 9-3310 (a.) (6.) (7) BCC Article 4, Section 5039, Chapter 1 Proposed logo for the business is below: Teal Version Black Version Colors: Proposed exterior colors are to remain consistent with the General Plan of the Fulton District. Internal tenant improvement finishes are to be an off-white color to provide customers with a feeling of cleanliness and consistency, however the proposed plans intend to utilize the Stease branding and marketing package colors for an accent wall on the largest side of the Showroom to provide a modern look that blends well with the natural colors of the historic building materials. Selected color finishes are the following: STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 12 Stease shall submit a complete and thoroughly detailed Master Sign Program application via FAASTER that conforms with the requirements of Chapter 15, Article 26 of the Fresno Municipal Code. All required fees shall be paid upon submission of the completed application. A draft application has been started and saved to resume upon approval of commercial cannabis business permit. Sign Review record number application number is P20-04593. Store Signage on the front of the building shall be located on the current exterior sign location suspended from the building and the retail glass on exterior of the Waiting Room. Logo sign on the retail glass exterior and interior of the Waiting Room shall contain an enlarged Quick Response (QR) Code so that customers waiting can utilize the camera and/or QR reader on their smart phone to be instantly directed to the retail business website to place orders for Express Pickup and/or Curbside Pickup. This is designed to encourage a faster transaction and customer experience for those customers that know what they want to order and do not want to wait in the line. Retail business is a licensed premises open to the public, and shall prominently display the Quick Response Code (QR Code) certificate issued by the Bureau of Cannabis Control (BCC) so that it can be viewed and scanned from outside of the licensed premises. QR Code shall be posted in the front window of the licensed premises within three (3) feet of any public entrance to the licensed premises, or in a locked display case mounted on the outside wall of the licensed premises within three (3) feet of any public entrance to the licensed premises. The QR Code certificate shall be posted in a manner that is clearly visible from outside of the licensed premises to the public and all persons entering the premises. The QR Code certificate shall be printed on paper, glass, metal, or other material not less than 8 ½ inches by 11 inches and shall not be less than 3.75 inches by 3.75 inches, and shall be of sufficient clarity that the code can be read by a smartphone or device capable of reading QR Codes from a distance of at least three (3) feet. Business signage for Stease shall be limited to basic identification only and does not contain any information or logos that identify, advertise, or list the services or the products offered. None of the entrances or exits to the building, nor any of the windows will be obstructed or blocked in any way by signage of any kind. Exterior signage shall not be considered advertisement. It is solely designed to be an identification of the Stease business and shall only contain: the Stease logo; established date/year (2020); and city of origin, (Fresno, California). Signage for Stease will not be directly illuminated. Building will have exterior lighting installed for security but not lighting shall not directly illuminate the suspended exterior sign nor the window glass logo and QR code. In the front of the retail business glass exterior, prior to customer entry, there shall be signage located with a clearly and legibly posted notice that no person under the age of twenty-one (21) years of age is permitted to enter the premises of the commercial cannabis business. In the same location shall be a clearly and legibly posted notice that no person under the age of eighteen (18) years of age is permitted to enter the premises of the medicinal cannabis retail business. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 13 Each entrance shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis or cannabis products on the premises or in the areas adjacent to the business is prohibited. The original copy of the commercial cannabis business permit issued by the city pursuant to Article 33 and the city issued business license shall be located on the visible wall behind the receptionist desk, framed and posted inside the cannabis retail business and visible to the public at all times. As stated earlier in this Application, Stease not commence business with Delivery Services. This aspect of the business may be implemented after Management evaluates the opportunity and demand for delivery on top of current sales channels. If implemented, Stease shall start with a single delivery vehicle and add additional vehicles and delivery personnel as demand for delivery services are increased. All delivery vehicles shall be unmarked vehicles with no indication that the vehicles are transporting cannabis or cannabis products. Signage shall be installed next to the restrooms to inform customers that the restrooms are for employee use only and that restrooms are to remained locked and under control of management at all times. See exhibits below for examples of the Sign Plan: Proposed exterior signage at the business entry door and front retail glass. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 14 Proposed business signage on existing suspended sign attached to the building exterior. Proposed site plan with exterior sign location and parking identified. 6.6. Landscaping Plan: 9-3310 (b.) (1.) (xix.) Stease building location does not contain any landscaping. Adjacent buildings contain some planter beds currently that do not have any plants or vegetation contained. Any potential exterior vegetation shall be container planters, and shall be planted, altered, and maintained in a fashion that precludes its use as a hiding place for persons on the premises. All plants selected for containers are to be maintained low to the ground and shall not block the visibility of the business, visibility through the exterior window for security personnel. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 1 7. Community Benefits and Investment Plan 7.1. Social Responsibility Plan: Section 9-3316 (b.) (5.) (i.) (ii.) (iii.) (iv.) Stease shall participate as a contributing and positive member of the community. The business owner, investors, management, and employees are all residents of Fresno and have a passion and love for the City of Fresno. The location of the business has been specifically selected to make the largest impact in a part of Fresno that has been striving for gentrification and socio-economic improvements happening in the Brewery/South Stadium District and adjacent districts. Stease management feels that the cannabis retail business is conducive to a stimulated economy in the Fulton Corridor and shall help symbiotically with the local restaurants, bars, music, arts, and residential living in Downtown Fresno. Stease has a multi-pronged approach for social responsibility components to the business and physical location that include, but are not limited to:  Providing a growth opportunity and participation with expungement clinics  Utilizing a boarded up, vacant building that is a Registered Historic.  Forming a pragmatic public health outreach, education, and youth prevention program geared for cannabis use.  Participating in the Fresno Community Reinvestment Fund 7.1.1 Expungement Clinics: Stease shall allocate funding, promote, and invest time into directly into aiding and participating in local community non-profits, community-based organizations, civic organizations, and social service organizations. It is important to the business owner to dedicate and volunteer time and efforts toward the support of mental health and homeless clinics that affect our local Fresno citizens and community. Stease shall allocate a portion of the company proceeds toward providing funding for, and hosting expungement clinics or outreach services. The clinics are intended to assist people in search of employment to clean up their criminal records and to understand employment law that relates to people with prior convictions. In addition to this, Stease plans to donate and provide financial support of City- sponsored activities and charitable organizations and provide coordinated and collaborated effort of support from the local commercial cannabis businesses and social equity cannabis businesses in ways the City of Fresno sees best fit. Emphasis shall be placed on the local community and City of Fresno to address these issues. Stease shall also provide an “open-arms” employment opportunity that does not discriminate on hiring toward any person with a criminal record or prior convictions in the cannabis industry. Stease management shall treat all members of the community the same as a part of the organizational culture and ecosystem. Stease is not concerned with providing employment, compensation, and industry education and training to persons with prior convictions. The business owner feels that the persons convicted of a crime within the cannabis industry may feel a greater degree of motivation toward the new, legal status of the cannabis supply chain and infrastructure provided for the social equity applicants. STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 2 7.1.2. – 7.1.3. Vacant Building Use & Incorporating Environmentally Sustainable Business Model: Section 9-3310 (a.) (7) Proposed building is currently a vacant building and has a current status of being deemed brownfield land and located in an area of the city that is on the rapid process of gentrification and renovation. Renovation of this particular building will be beneficial to the Fulton Street area around it because it is the last building on the street that has plywood boards over the front. The adjacent building is currently under renovation for a new brewery and distillery, directly across the street to the west is the popular Tioga Sequoia Brewing Company, Modernist cocktail bar is across the street to the southwest, Zack’s Brewery a couple of buildings to the south, Chukchansi Park stadium across the street to the northwest, all located within the up and coming Brewery District and South Stadium District. The building has been maintained in a non-blighted condition consistent with the requirements of Section 10-617 of Article 6 the Fresno Municipal Code, as it has been secured in the front and rear of the building and is equipped with a burglar alarm system in the event of trespasser entry. Prior to the current owner’s purchase, the building interior was destroyed, with all plumbing fixtures smashed, many of the walls opened up to the studs, and all of the electrical wire, switchgear, and distribution conduits stripped for copper and scrap metals. The building shall have improvements made to the exterior masonry, paint, retail glass, doors, and windows. These aspects of the building have been maintained during the duration of the vacancy but shall be renovated should the Stease get approved for a cannabis retail business. The proposed building was the original Fresno Photo Engraving Building of 1946 and is on the historical register in the Historic Fulton Corridor. The building shall be renovated with consideration to maintain the original historic finishes and consistent with the general plan of the area. The strong linear planes and use of plate glass on this building are typical features of the International style. Building has three (3) suites that have all been vacant for over 10 years Proposed tenant improvements for the cannabis retail business shall include all new, energy efficient lighting, windows, water heaters, and new low-flow efficient plumbing fixtures. The building owner had a new hot-mop asphalt roof replaced and gutters installed in 2015 to ensure there is sufficient structural capacity and integrity, reduction of leaks into the building, and increased insulation for reduction in heat loss and heat gain. Stease has plans for a newly designed photovoltaics (PV) solar panel array and installation to generate electricity for building fixtures once the business is operational and able to allocate a portion of the proceeds to this investment to the building. Electrical and Mechanical engineering consultants have already been selected and surveyed the building for this proposed future design should this improvement occur. Stease does not intend to operate delivery services at any time less than twelve (12) months after business commencement, and at which time these services shall be evaluated by management whether to implement delivery or not. If Stease proceeds with delivery services, as stated in the transportation and security sections of this application, the cannabis retail business shall incorporate superior fuel efficiency and low-emission vehicles for the delivery aspect of the business. Proposed vehicle is a Toyota Prius for several reasons: fuel efficiency; low-emissions; discrete nature of the vehicle; small STRICTLY CONFIDENTIAL   STEASE CO. CANNABIS RETAIL BUSINESS PERMIT CITY OF FRESNO Page 3 and compact for maneuvering in and out of the secure vehicle trap and warehouse at the building rear; and the ease of integration with the anchored/bolted down secure and lockable safe for the inventory storage for outbound home deliveries and transportation of currency. All delivery vehicles shall be unmarked vehicles with no indication that the vehicles are transporting cannabis or cannabis products. The cannabis business owner feels that the Prius is the ideal vehicle for this application. 7.2. Public Health Outreach, Education, and Youth Prevention Program: Section 9-3309 (m.) (3.) The Stease management, Board of Directors, Project Management and Marketing team shall create a thorough process of creating a public education plan and presentation to give to the community via youth organizations and educational institutions along with web information and downloadable resources to be readily available to the public in the City of Fresno. Stease shall interface with an organization listed within the below stated chapters in the City of Fresno’s Department of Social Services Directory. The Agencies selected shall specialize in the prevention and education of youth drug use facilities to distribute appropriate materials to public schools in the City of Fresno, and other locations where youth tend to congregate, such as shopping malls, parking lots, and public parks. The Company will actively participate with the Agency to distribute prevention materials. Example Agencies that Stease shall interface with for youth drug prevention program with education about cannabis and cannabis products shall be the Tower Recovery Center on North Fulton Street, and Turning Point on L Street since they are in close proximity to the cannabis retail business location. An example of the Youth Center, Training, Mentoring and Recreational Services Agency that Stease shall interface with is the Youth Leadership Institute on L Street as they have a focus on innovating and building communities through advocacy for learning, leadership, and teaching for youth in the community. Please reference final pages of this section for the Sample Public Education and Youth Prevention Program and a refined list of agencies and organizations located within the City of Fresno that focus on: Alcohol and Drug Services; Youth: Career, Training, Mentoring and Recreational Services chapter; and Drug Testing Centers. 7.3. Fresno Community Reinvestment Fund: Stease is committed to providing a percentage of 0.25% of the gross revenue to go directly to the Fresno Community Reinvestment Fund that has been established to support cannabis equity businesses in the local cannabis industry. The fund will support local equity businesses in the area of workforce development, access to affordable commercial real estate, access to investment financing, and access to legal services and business administration technical assistance. Stease feels that the commitment to a continuous allocation of a portion of the gross revenues of the cannabis retail business is a reasonable way to participate in an Equity Assistance Program that may help with assistance in/with: paying state regulatory and licensing fees; securing business locations prior to and during the application process; securing capital investments; recruiting, training, and retention of a qualified/diverse workforce; and business loan and/or grants to equity applicants. Stease Co. 8050 N. Palm Avenue, Suite 300 Fresno, CA 93711 ss@sbsilva.com Stease Co. Public Health Outreach, Education, and Youth Prevention Program City of Fresno Planning and Development Department 2600 Fresno Street Fresno, CA 93721 (559) 621-CITY (2489) RE: Public Health Outreach, Education, and Youth Prevention Program Stease Co. 748 Fulton Street Fresno, CA 93721 To Whom it May Concern: Stease will utilize the Directory of Community Resources in the City of Fresno’s Department of Social Services to determine the most impactful Public Education and Youth Prevention Program Agency (herein “Agency” or “Agencies”). The following chapters, but not limited to, contain resources to be used: • Alcohol and Drug Services chapter; • Youth: Career, Training, Mentoring & Recreational Services chapter; and • Drug Testing Centers chapter. Example Agencies that Stease shall interface with for youth drug prevention program with education about cannabis and cannabis products shall be the Tower Recovery Center on North Fulton Street, and Turning Point on L Street since they are in close proximity to the cannabis retail business location. An example of the Youth Center, Training, Mentoring & Recreational Services Agency that Stease shall interface with is the Youth Leadership Institute on L Street as they have a focus on innovating and building communities through advocacy for learning, leadership, and teaching for youth in the community. Stease shall interface with an organization listed within the below stated chapters in the City of Fresno’s Department of Social Services Directory. The Agencies selected shall specialize in the prevention and education of youth drug use facilities to distribute appropriate materials to public schools in the City of Fresno, and other locations where youth tend to congregate, such as shopping malls, parking lots, and public parks. The Company will actively participate with the Agency to distribute prevention materials. Alcohol and Drug Services: Addiction Intervention Resources Inc. 405 N. Broadway Fresno, CA 93701 (559) 486-3146 (559) 484-3146 Hotline (559) 273-9097 Hotline 2 Addiction Research and Treatment Inc 1235 E. Street Fresno, CA 93706 (559) 268-6261 www.baartprograms.com Aegis Medical Systems, Inc 3707 E. Shields Avenue Fresno, CA 93726 (559) 229-9040 http://www.aegismed.com/ Al-Anon 922 N. Van Ness Fresno, CA 93728 (559) 237-5433 http://scws-al-anon.org/index.php Alcoholics Anonymous (A.A.) 2812 N. Blackstone Fresno, CA 93703 (559) 221-6907 English (24 Hour Phone) (559) 266-6752 Spanish www.fresnoaa.org Antioch Substance Abuse Programs, Inc 3838 N. West Avenue Fresno, CA 93705 (559) 226-0809 Assessment, Training, & Research Associates (ATR) 1100 W. Shaw Ave Suite 122 Fresno, CA 93711 (559) 681-1947 (559) 237-2942 (4421 N. Cedar Ave) Babies First 1221 Fulton Mall Fresno, CA 93721 (559) 600-3330 www.babiesfirstfresno.com BAART Program 539 Van Ness Avenue Fresno, CA 93728 (559) 266-9581 (559) 498-7100 on 3103 E. Cartwright Avenue (559) 268-6261 on E. Street Celebrate Recovery http://www.celebraterecoveryfresno.org Central California Recovery 1100 W. Shaw Ave #122 Fresno, CA 93711 (559) 681-1947 (559) 273-2942 Central California Narcotics Anonymous (559) 255-5881 http://centralcalna.org/ Choices A Road to Recovery 2634 N. Blackstone Avenue Fresno, CA 93726 (559) 229-3737 Comprehensive Addiction Program Inc. 2445 W. Whites Bridge Avenue Fresno, CA 93706 (559) 264-2551 Residential (559) 264-5096 Aftercare (559) 485-6364 Detox http://caprehab.org/ Delta Care, Inc 4705 N. Sonora Avenue, Suite 113 Fresno, CA 93722 (559) 276-7558 Decision Home of Fresno 805 N. Echo Ave Fresno, CA 93728 (559) 498-0381 http://www.decisionhomeinc.org/ Driving Abuse Treatment and Education (DATE) 1803 Broadway Fresno, CA 93721 (559) 268-6475 http://hispaniccommission.org/index.php/en/dui-classes Dunamis, Inc. 4991 E. McKinley Avenue, Suite 113 Fresno, CA 93727 (559) 981-2143 http://dunamis-mhs.org/ Eminence Healthcare, Inc 114 E. Shaw Ave. Ste.210 Fresno, CA 93710 (559) 221-8100 http://www.eminencehc.com/ Family and Youth Alternatives 3122 N. Millbrook Avenue, Suite A Fresno, CA 93703 (559) 225-9117 http://www mhsinc.org/family-and-youth-alternatives Fourwinds Lodge Treatment Center 2014 Tulare Street, Suite 633 Fresno, CA 93721 (559) 472-7340 http://fourwindslodge.org Fresno Center for Change 2550 W. Clinton Avenue Fresno, CA 93705 (559) 264-7521 http://www mhsinc.org/fresno-center-change Fresno County Hispanic Commission Nuestra Casa Recovery Home 1803 Broadway Street Fresno, CA 93721 (559) 268-6480 http://hispaniccommission.org/index.php/en/recovery-home Fresno First FOTEP 2550 W. Clinton Avenue Fresno, CA 93705 (559) 264-7521 https://www mhsinc.org/fresno-first-fotep Fresno New Connections 4411 N. Cedar Avenue, Suite 108 Fresno, CA 93726 (559) 248-1548 http://www fresnonewconnections.com/ Fresno Rescue Mission The Academy (Men Christian Rehabilitation) 310 G Street Fresno, CA 93706 (559) 268-0839 http://fresnorescuemission.org Glory Bound World Outreach Ministries 916 Waterman Street Fresno, CA 93706 (559) 266-8812 http://gloryboundworldoutreachministries.org/ King of Kings Community Center Women’s Pregnant and Postpartum Program 1350 E. Annadale Avenue Fresno, CA 93706 (559) 268-9559 http://www kingfresno.org/services/postpartum-depression King of Kings Community Center 2385 S. Fairview Avenue Fresno, CA 93706 (559) 442-0400 http://www kingfresno.org/ King of Kings Men’s Recovery Home 2267 S Geneva Ave Fresno, CA 93706 (559) 266-6449 http://www kingfresno.org/services/recovery Kings View Community Services Alcohol and Drug Services 4111 N. Golden State Boulevard Fresno, CA 93722 (559) 277-9880 www.kingsview.org MedMark Treatment Centers, Inc. 1310 M. Street Fresno, CA 93721 (559) 264-2700 1-866-840-6658 http://www medmarkfresno.com New Life for Girls P.O. Box 12776 Fresno, CA 93779 (559) 486-2515 http://newlifeforgirls.org/ Nuestra Casa Recovery 1414 W. Kearney Blvd. Fresno, CA 93706 (559) 485-0501 www.hispaniccommission.org Panacea Inc. 3152 N. Millbrook Avenue Fresno, CA 93703 (559) 241-0364 Paths 515 S. Cedar Ave Fresno, CA 93702 (559) 453-8300 Primer Paso 3648 N. First Street Fresno, CA 93726 (559) 221-0076 Promesa Behavioral Health 7475 N. Palm Avenue, Suite 107 Fresno, CA 93711 (559) 439-5437 http://www.promesabehavioral.org/ Salvation Army Adult Rehab 804 S Parallel Ave Fresno, CA 93721 (559) 497-7080 http://www.salvationarmyusa.org Sierra Tribal Consortium Inc. Turtle Lodge 610 W. McKinley Ave Fresno, CA93728 (559) 445-2691 1-800-567-6327 http://www.sierratribal.org/ Spirit Woman of CA Inc (SOW) 327 W Belmont Ave Fresno, CA 93728 (559) 233-4353 http://spiritofwomanfresno.org/index.html The Light House P.O. Box 16461 Fresno, CA 93755 (559) 222-4824 http://www.thelight-house net/ Temperance Living Homes Alcohol and Drug recovery Program 4026 E. Gettysburg Fresno, CA 93726 (559) 247-4819 Tower Recovery Center 707 N. Fulton Street Fresno, CA 93728 (559) 486-6080 Turning Point 1638 L Street Fresno, CA 93721 (559) 237-0846 ext. 21 http://tpocc.org/ Universal Health Network and Systems, Inc 3170 N. Chestnut, Suite 105 Fresno, CA 93703 (559) 252-5150 http://universalhealthnetwork.org/ VA Central California Healthcare Sys 2615 E. Clinton Ave Fresno, CA 93703 (559) 225-6100 http://www fresno.va.gov/ West Care 611 E. Belmont Fresno, CA 93701 (559) 264-4800 www.westcare.com Youth: Career, Training, Mentoring & Recreational Services: Big Brothers Big Sisters of Central California Fresno County 905 N. Fulton Fresno, CA 93728 (559) 268-2477 http://www.bigs.org Boys and Girls Clubs of Fresno County 5401 N. Augusta Street Fresno, CA 93701 (559) 266-3117 http://bgclubfc.org/ Boys Scouts of America, Sequoia Council 6005 N. Tamera Ave Fresno, CA 93711 (559) 320-2100 (559) 436-1339 http://seqbsa.org/ Cesar E Chavez Adult Education Center 2500 Stanislaus Fresno, CA 93721 (559) 457-6000 http://www fas.edu/ Central California Educational Opportunity Center Thomas Building Room 122 5241 N. Maple Ave M/S TA 35 Fresno, CA 93740 (559) 278-2280 www.csufresno.edu/eoc Chicano Youth Center 1515 E. Divisadero Street Fresno, CA 93721 (559) 497-8552 Encourage Tomorrow 2491 W. Shaw Ave. Suite 110 Fresno, CA 93711 (559) 233-2880 http://encouragetomorrow.org/ Focus Forward Juvenile Justice Campus Commitment Facility 3333 E. American Avenue, Suite B Fresno, CA 93725 (559) 600-4961 http://www focusforward.org Foster Grandparent Program 1900 Mariposa Mall, Suite 116 Fresno, CA 93721 (559) 263-1533 (559) 263-1538 http://www fresnoeoc.org/fgp Fresno Barrious Unidos 4415 E Tulare Avenue Fresno, CA 93702 (559) 453-9660 http://www fresnobarriosunidos.org/ Fresno Career Development Institute 1645 E Street Fresno, CA 93706 (559) 498-7155 Fresno County Adolescent Family Life Program (AFLP) 1900 Mariposa Mall, Suite 301 Fresno, CA 93721 (559) 263-1379 http://www myfresnoeoc.org/programs/aflp.shtml Fresno County Economic Opportunities Commission Sanctuary Outreach to the Streets (SOS) 2336 Calaveras Street Fresno, CA 93721 (559) 498-8543 Fresno County Economic Opportunities Commission Younger Youth Program 1900 Mariposa Mall, Suite 303 Fresno, CA 93721 (559) 263-1100 http://www fresnoeoc.org/younger-youth-program Fresno County Department of Social Services Independent Living Program 2011 Fresno Street, 4th Floor Fresno, CA 93721 (559) 600-6689 Fresno County Mayor’s Gang Prevention 2323 Mariposa Street Fresno, CA 93721 (559) 621-2353 Fresno Police Activities League 5132 N. Palm PMB380 Fresno, CA 93704 (559) 621-2472 Fresno County Sheriff’s Activity League 2200 Fresno Street Fresno, CA 93721 (559) 488-3939 Girl’s Scouts of the Central California South 1377 W. Shaw Avenue Fresno, CA 93711 1-800-490-8653 http://www.girlscoutsccs.org/ HOPE (559) 681-7814 http://www hope-builds.com/index html Incarcerated Youth Project 1900 Mariposa Mall, Suite 303 Fresno, CA 93721 (559) 263-1100 http://www fresnoeoc.org/incarcerated-youth-program Local Conservation Corps 1805 E. California Ave Fresno, CA 93706 (559) 264-1048 Safe Place 2336 Calaveras Street Fresno, CA 93721 (559) 498-8543 1-800-820-4968 http://www fresnoeoc.org/safe-place Sequoia Council Boy Scouts of America 6005 N. Tamera Ave Fresno, CA 93711 (559) 320-2100 http://www.seqbsa.org/ Teen Parent Program 1111 Van Ness Avenue, Suite 625 Fresno, CA 93721 (559) 265-3095 Kayla Wilson Youth Leadership Institute 1749 L. Street Fresno, CA 93721 (559) 255-3233 http://www.yli.org/ YouthBuild Fresno 1805 E. California Ave Fresno, CA 93706 (559) 264-1048 http://www fresnoeoc.org/lcc/youthbuild Drug Testing Centers: Avertest Testing Center 2113 Merced Street Fresno, CA 93721 http://avertest.com/ Choices Compliance Solutions 3321 N. Hilliard Street Fresno, CA 93726 (559) 229-3737 Office Hours: 9:00 am – 4:00 pm Employee Drug Testing Services LLC 5550 N. Palm Ave, Ste 107 Fresno, CA 93704 (559) 431-2648 Health Street 6101 N. Fresno Street, Ste 103 Fresno, CA 93710 888-378-2499 http://www health-street net/Welcome html Sierra Valley Medico, Inc, 7033 N. Fresno Street Ste 201 Fresno, CA 93720 (559) 435-5581 http://sierravalleymedico.com/ Return to Table of Contents Truckers Examination Inc 5550 N. Palm Ave, Ste 107 Fresno, CA 93704 (559) 261-3784 Stease Co. 8050 N. Palm Avenue, Suite 300 Fresno, CA 93711 ss@sbsilva.com Please note all provided information is strictly confidential and will not be shared with any individuals outside of the scope of this investment. Stease Co. Sample Employee Acknowledgement EMPLOYEE ACKNOWLEDGEMENT Each employee will be required to sign an acknowledgement similar to the statement below, which will acknowledge the employee’s agreement to be bound by all of the terms set forth in the Company’s Standard Operating Procedures and Employee Manual. My signature below indicates that I have received a copy of the Company’s Standard Operating Procedures and the Company’s Employee Manual. I understand that the Standard Operating Procedures and Employee Manual contain information regarding the Company’s rules and regulations which affect me as an employee. I acknowledge that I have read and understood Company policies. I also understand that the Company may revise, supplement, or rescind policies, procedures or benefits described in the Standard Operating Procedure, with or without notice. Print Name: ________________________________ Signature: ________________________________ Date: ________________________________ Stease Co. EMPLOYEE MANUAL Stease Co. EMPLOYEE MANUAL THIS EMPLOYEE MANUAL DOES NOT CREATE A CONTRACT OF EMPLOYMENT BETWEEN YOU AND THE COMPANY. YOUR EMPLOYMENT WITH STEASE Co. (“Stease” or “COMPANY”) IS “AT WILL” MEANING THAT EITHER YOU OR COMPANY MAY TERMINATE YOUR EMPLOYMENT AT ANY TIME WITH OR WITHOUT CAUSE. THIS EMPLOYMENT MANUAL SUPERSEDES AND REVOKES ANY PREVIOUSLY ISSUED EMPLOYEE MANUAL(S) OR HANDBOOK(S). NO ONE, OTHER THAN ONE OF THE COMPANY’S OFFICERS, HAS THE AUTHORITY TO CREATE A CONTRACT OF EMPLOYMENT BETWEEN YOU AND COMPNAY OR TO ALTER THE AT WILL NATURE OF YOUR EMPLOYMENT RELATIONSHIP WITH COMPANY. ACKNOWLEDGED AND ACCEPTED: DATE: _____________________________________________________________________ EMPLOYEE NAME (PRINT): __________________________________________________ EMPLOYEE (SIGNATURE): ___________________________________________________ TABLE OF CONTENTS Section Name Section Number Last Revised Date Date Date Date Table of Contents - - - - - Cover Page - TO BE COMPLETED AND RETURNED BY EMPLOYEE Welcome Message 1.0 Company Operations 2.0 Equal Opportunity; Immigration Law 3.0 Equal Opportunity Statement 3.1 Immigration Law Compliance 3.2 Americans with Disabilities Act 3.3 Policies and Rules 4.0 Employment Classifications 4.1 Confidentiality 4.2 Personal Information 4.3 Attendance and Punctuality 4.4 Dress Code 4.5 Work Hours and Overtime Pay 4.6 Time Clock and Time Cards 4.7 Meal Periods 4.8 Safety and Accident Rules 4.9 Smoking 4.10 Use of Company Property 4.11 Use of Company Computers, E- mail, and Internet 4.12 Use of Cellular Telephones 4.13 Substance Abuse 4.14 Harassment and Discrimination Policy 4.15 Performance & Salary Reviews; Provisional Period 4.16 Payroll 4.17 Reported Absences 4.18 Benefits and Services 5.0 Holidays 5.1 Vacation 5.2 Sick Leave 5.3 Maternity Leave 5.4 Funeral Leave 5.5 Jury Duty 5.6 Time Off for School Conferences 5.7 Personal Time Off - Brief Periods 5.8 Time Off for Voting 5.9 Military Service 5.10 Health/Life Insurance 5.11 Continuation of Medical Benefits/COBRA Insurance 5.12 Miscellaneous Benefits 5.13 Worker's Compensation 5.14 Retirement Plans 5.15 Separation from Employment 6.0 Layoff & Recall 6.1 Resignation 6.2 Dismissal 6.3 Automatic Dismissal 6.3.1 Exit Interview 6.4 Communication Policy 7.0 Arbitration; Choice of Law 8.0 Acknowledgement Form Final TO BE COMPLETED AND RETURNED BY EMPLOYEE Employee Checklist Final (1) Welcome Message from the CEO Dear Employee, Welcome to Stease Co. (hereinafter “Stease” or “Company”). We are excited to have you as part of our company, culture, team, and family. Stease is committed to quality work and superior customer service in all aspects of our business. We value our employees and encourage them to make productive suggestions. We want you to succeed at your job and career within our organization and industry. This Employee Manual, inclusive of an Acknowledgement Form, sets forth the general administration policies, goals, and benefits of Stease and replaces and supersedes any prior manual(s). The contents of this Employee Manual are confidential and are not to be distributed to or shown to anyone else inside or outside of the Company. This Employee Manual remains the property of Stease. and must be returned upon request. You should use this Employee Manual as a reference as you pursue your career with us. Each of the policies are dated and is current as of that date, but may be unilaterally amended by Stease. at any time, with or without notice, and we shall also reserve the right to deviate from the policies herein in our sole discretion. When there is a change in the policy, we will update this Employee Manual as soon as possible. Please feel free to discuss with us any questions you may have about this Manual or about your employment with us. To your success and personal growth at Stease. Sincerely, Steven B. Silva CEO Stease Co. (2) Company Operations The success of Stease Co. (hereinafter “Stease” or “Company”) is based on providing great products and services to our customers, every day. Our company motto is “Always stand on stable boards by operating with integrity, continuous improvement, and putting relationships before business.” We are a source of cannabis and cannabis product information. We are a cannabis retail business that provides unparalleled customer service and industry knowledge. We are also a retailer of Stease branded apparel and accessories. Our mission is to stand out as a classy cannabis retailer that provides support to the local community. The organization of the company is reflected below: Steven B. Silva (CEO/COO) Sales Oversight Marketing Business Structure Operations Management Supply Chain Relations Strategic Planning Neighborhood Relations/Emergency Contact Joshua Craig (Sales Manager) Management of Sales Associates Employee Scheduling Inventory Management & Purchasing Employee Training Communications Bradley A. Silva (CLO) Chief Legal Officer General Counsel Legal Guidance and Oversight Key contact information for Stease is as follows: Location: 748 Fulton Street Fresno, CA 93721 Phone: Phone: THIS IS A PLACEHOLDER Email: ss@sbsilva.com (Steven) Email: sales@steasefresno.com Website: www.stease.co www.steasefresno.com Hours of Operation: 9:00 AM PST – 9:00 PM PST (7 days per week) (3) Equal Opportunity; Immigration Law 3.1 Equal Opportunity Statement Stease is a company that operates as an equal employment opportunity employer and does not discriminate against employees or job applicants on the basis of race, religion, color, sex, age, national origin, mental or physical disability, veteran or family status, genetic information, or any other status or condition protected by applicable federal, state, or local laws, except where a bona fide occupational qualification applies. This policy extends to all aspects of the employment relationship, including, but not limited to, recruiting, interviewing, job assignments, training, compensation, benefits, discipline, use of facilities, participation in Company-sponsored activities, termination, and all other terms, conditions, and privileges of employment. 3.2 Immigration Law Compliance In accordance with the Immigration Reform and Control Act of 1986 (IRCA), Company only employs individuals who are legally authorized to work in the United States. Furthermore, Company does not continue to employ any individual whose legal right to work in the United States has been terminated. CIS Form I-9 is used to verify your identity and employment eligibility. You must complete the employee section of Form I-9 and provide the required documentation supporting your identity and employment eligibility before you may begin working. 3.3 Americans with Disabilities Act Compliance Company adheres to the Americans with Disabilities Act (ADA), as amended, and makes every effort to ensure that qualified individuals with a disability are not discriminated against in any terms, conditions, or privileges of employment. The ADA requires employers to provide a reasonable accommodation to qualified individuals with known disabilities in all aspects of employment, unless the accommodation would cause an undue hardship to the employer. An exhaustive description of what does and does not constitute a disability is beyond the scope of this manual, but basically an individual with a disability is a person who: 1. Has a physical or mental impairment substantially limiting one or more major life activities; or 2. Has a record of such impairment; or 3. Is regarded as having such an impairment (however, no reasonable accommodation is required in this instance). A qualified individual is a person with a disability who meets the skill, education, experience, training, and other job-related requirements of position, and who, with or without reasonable accommodation, can perform the essential functions of the position. We are committed to providing a reasonable accommodation to the known physical or mental limitations of such individual so they can perform the essential functions of a job, unless the accommodation would create an undue hardship. If you need an accommodation under the ADA, you should immediately notify Company. (4) Policies and Rules 4.1 Employment – Classification As an employee of Stease, you are an “employee at will.” This means that either you or Company may choose to terminate the employment relationship at any time, with or without cause, and with or without advance notice. We request that whenever possible, as a courtesy, you provide two (2) weeks’ advance notice of your intention to quit, so that we may plan accordingly. Any information outlined in this Manual or in any other Company document, except a written employment contract executed by the parties thereto (in which case, how and when a termination or resignation may occur will be controlled by the terms of such employment contract), does not modify the employment at will policy and should not be interpreted to mean that termination will occur only for “just cause.” This Manual does not create an express or implied contract of employment for a definite and specific period of time between you and Company, or otherwise create express or implied legally enforceable contractual obligations on the part of Company concerning any terms, conditions, or privileges of employment. Except for an employment contract, any documents or statements, written or oral, prior, current, or future that conflict with the employment at will policy are void. Regular Full-Time is an employee who has no termination date and who is regularly scheduled to work thirty-five (35) or more hours per week. Regular full-time employees may be either non-exempt (hourly) or exempt (salaried) employees. Regular Part-Time is an employee whose position has no termination date and who is scheduled to work ten (10) or more hours, but less than thirty-four (34) hours per week. Temporary Employee is an employee who is hired for a certain length of time and who is paid only for their hours worked. A temporary employee will not receive any benefits or holiday or vacation pay. Provisional Employee is an employee who has not yet completed the ninety (90) day provisional period after first being hired, as detailed in Section 4.16 of this Employee Manual. At-will employment remains at-will upon the completion of the provisional period. Exempt Employee is generally an employee who is an executive, professional, administrator, outside salesperson, or manager. Exempt employees are generally paid a salary, without overtime. Non-Exempt Employee is an employee who does not qualify for exempt status, and is generally paid on an hourly basis, including overtime. Any concerns about your employee classification should be addressed to your supervisor. 4.2 Confidentiality As a result of your employment at Company, you will acquire and have access to confidential information belonging to Company of special and unique value. This includes, but is not limited to, such matters as Company’s personnel information, suppliers, procedures, cost of merchandise, sales data, price lists, financial information, records, business plans, prospect names, business opportunities, confidential reports, customer lists and contracts, as well as other information specific to Company. As a condition of employment, you must hereby do agree that all such information is the exclusive property of the Company, and you will not at any time disclose to anyone, except in the responsible exercise of your job, any such information whether or not it has been designated specifically as “Confidential.” Signing a separate confidentiality agreement further clarifying this policy at Company’s request is also a condition of your continued employment with Stease. If you are every unsure of your obligations under this policy it is your responsibility to consult with your supervisor for clarification. 4.3 Personal Information It is important that the personnel records of Company be accurate at all times. In order to avoid problems with your benefit eligibility, tax liability, or our ability to communicate with you regarding shift changes and the like, Company requires that you will promptly notify your supervisor or human resources representative of any change in your name, home address, telephone number, number of dependents, or any other information pertinent to your employment with Company. 4.4 Attendance and Punctuality Company believes that a good record of attendance and punctuality is an essential component of good work performance. You are expected to be at your work station, dressed appropriately and ready to work, by your scheduled start time. If, for any reason, you are unable to report for work on time, or unable to remain at work until the end of your shift or normal work day, you must notify your supervisor directly before your regular starting time. Being late on a continual basis (manager discretion) can qualify for a ride up for poor attendance. After three (3) writeups, your continued employment with Company will be reviewed for possible termination. More than five (5) tardies in a sixty (60) day period is possible grounds for termination. All time off must be requested in advance and should be submitted in writing as outlined in the appropriate categories, except for sick leave (See Sick Leave and other categories for specific details outlined below). Excessive absences may result in disciplinary action, up to and including termination. All notifications of absences must be face-to-face, in writing in a letter or on a company provided form, or by telephone to your supervisor, as designated from time to time. No employee may call in sick by email or text message. Frequent absences due to illness may be grounds for employment status re-evaluation. 4.5 Dress Code As an employee of Company, you must maintain a clean, neat appearance when reasonably possible. Your attire should be consistent with the type of work you are performing and with safety considerations. Any required uniform and/or safety equipment will be provided to you at Company expense. Management, sales personnel, and those employees who come in contact with the public, are expected to dress in accepted business tradition that reflects the image Company seeks to project. Good personal grooming and hygiene are also essential and should contribute to a professional appearance. If you have further questions about your expected attire, please discuss these questions with your immediate supervisor. 4.6 Work Hours Non-Exempt (Hourly) Employees: The normal work day is eight (8) hours, and forty (40) hours represents a normal work week, commencing 12:01 AM Monday and ending on midnight on the following Sunday. While you are generally expected to work the number of hours stated above, Company does not guarantee that you will actually work that many hours in any given day or week. For hourly employees, overtime work is only performed when approved in advance by your supervisor. You are expected to work necessary overtime when requested to do so, and you will receive time and one-half regular pay for time worked exceeding forty (40) hours in any given work week period When computing total hours worked in a work week for purposes of calculating overtime pay, only hours actually worked are counted. Time off from work, such as holidays, jury duty, and reporting time pay is not counted as hours worked even if you are paid for such time off. Exempt (Salaried) Employees: The normal work day is eight (8) hours, and forty (40) hours represents a normal work week, commencing 12:01 AM Monday and ending on midnight on the following Sunday. While you are generally expected to work the number of hours stated above, Company does not guarantee that you will actually be able to perform all of your work duties in this amount of time. You are expected to put in the amount of time over 40 hours per week necessary to complete your job duties and occasionally, substantial extra work may be required period if you are overburdened with work and unable to complete your assignments with a moderate amount of additional work each week, please speak to your supervisor; however, with more responsibility and increased pay, usually comes a greater workload and more time spent working. Exempt employees are not paid overtime for hours worked above 40 hours per week; some amount of expected work over 40 hours per week is built into your compensation package as a salaried employee. 4.7 Time Clock and Time Cards Where requested by your supervisor, you must punch in at the start of your work shift and punch out at the end of your shift. You are not allowed to punch the time clock of another employee. Should your time card be incorrectly punched, your supervisor will note the correct start and/or end time, and initial the correction. Your supervisor must approve all time cards that have any adjustments. Failure to clock in and out may result in loss of pay for unverifiable work, and – for repeated failure to use the time clock – in disciplinary action, up to and including termination. Alternatively, your supervisor may require that you keep track of your days at work, and your vacation time and other time off, on a timesheet, or that you report these items to your supervisor or other Company representative, who will track them for you. Vacation days, sick days, holidays, and absences such as jury duty, funeral leave, or military training, should be specifically noted on the time cards or time sheets for days on which they occur. Paid vacation and holidays should be counted and used as full work days. The work week commences 12:01 AM Monday and ends on midnight on the following Sunday. A new time card or timesheet should be used for each. In your card or sheet for the prior. Submitted promptly to your supervisor. Time cards and time sheets must be completely accurate. Your signature on the time card or timesheet is required to certify its accuracy as a record of that time actually worked. Falsifying a time card or sheet can lead to disciplinary action, up to and including termination. Furthermore, the falsification up a time card or sheet is a fraudulent act for which an employee may be prosecuted. 4.8 Meal Period Nonexempt employees are allowed a daily 60-minute unpaid meal break during an eight (8) hour workday. If workday is less than eight (8) hours but more than four (4) hours, then a 30-minute unpaid meal break is allowed. Meal breaks will generally be taken on a staggered schedule so that your absence from work does not create a problem with the day-to-day operations of Stease. Any other breaks during the workday must be approved in advance by your supervisor and shall also not be paid. Employee is required to clock out for any break taken. Exempt employees may take a meal break and a reasonable amount of other breaks at their discretion. 4.9 Safety and Accident Rules Safety is a priority at Stease. Stease strives to provide a clean, hazard-free, and safe environment in accordance with the Occupational Safety and Health Act of 1970. As an employee, you are expected to take part in maintaining this environment. You should observe all posted safety rules; It here to all safety instructions provided by your supervisor, and use safety equipment when required period it is your responsibility to learn the location of all safety and emergency equipment, as well as the safety and/or emergency phone numbers. You may be required to purchase and maintain some of your own safety equipment. Any problems with Company-provided safety equipment should be reported to your immediate supervisor. If it is not safe to work for any reason, report the problem to your supervisor immediately. All work-related accidents are covered by Worker’s Compensation. Insurance pursuant to the laws of the state(s) in which we operate. 4.10 Smoking Our goal is to provide a healthy and pleasant work environment for all employees. Company prohibits any form of tobacco use on company premises any tobacco usage must be at least 50 feet from any doorway and is only allowed during break times. 4.11 Use of Company Property Company will provide you with the necessary equipment to do your job. None of this equipment should be used for personal use, nor should any equipment be removed from Company work premises unless approved by your supervisor. This includes company vehicles, telephones, and two-way communication equipment. Any items or packages taken out of the workplace are required to be inspected by a manager before leaving the premises. This includes purses, backpacks, carry bags, shopping bags, etc. Likewise, any personal desk, filing cabinet, locker, or storage space provided to you is also subject to inspection at any time. Items purchased through the store must be inspected by a manager prior to leaving the premises. Personal telephone calls, text messages, and Internet surfing are not to be made or sent using Company phones or on Company time, unless authorized by your supervisor. Any authorized personal calls should be kept to a minimum and made at a time that does not interfere with your or your co-workers’ job performance. Please see the Use of Cellular Telephones policy below. Use of Company’s stationary, office supplies, or postage for personal use is strictly prohibited. Company premises, telephones, and email are not to be used for employees or others to engage in the practice of soliciting collections or donations; selling raffles, goods, or services; operating bedding pools; or solicitations of any kind. Use of radios, audio headsets, and televisions, Company-owned or otherwise, is at the discretion of Company supervisors only, and – if allowed – must be used in a manner that does not interfere with the safety of the workplace or with the ability of others to perform their work. 4.12 Use of Company Computers, E-Mail, and Internet Employee use of company computers, printers, peripherals, and electronic equipment is for job related or approved activities only. Inappropriate use of company computers, which may be defined from time to time at the discretion of Company, may subject you to discipline, up to and including termination. Inappropriate use includes, but is not limited, to the following: A. Use of Company computers to send or receive messages, pictures, or computer files which are illegal, pornographic, sexist, racist, harassing, or discriminatory. If you receive such material, you should notify your supervisor immediately. B. Loading software that is not approved in advance by management. C. Making illegal copies of licensed software. D. Using software that would provide unauthorized access to Company’s computers or would disrupt our equipment in any way. E. Using Company computers, printers, or email for personal and or non-Company related use, including shopping, blogging, and social media, unless authorized by your immediate supervisor. F. Sending or posting Company confidential information, whether anonymously or otherwise, by email, text, instant message, or posting to any website, blog, or social media site. Employees may be disciplined or terminated for inappropriate use of the Internet, email, text messages, instant messaging, blog posts, websites, or social networking websites where such use does not involve company computers, systems, or property. You should not assume any inappropriate email or text message sent or posted to a website, blog, or social networking website is private; such communications may eventually come to Company’s attention and result in discipline up to and including termination. Any message or file created or sent using any Company computer no other electronic device is the property of company. You should have no expectation of privacy or confidentiality in any message or file that is created, stored, or sent using the computers or other communication equipment belonging to Company, and Company reserves the unilateral right to review, monitor, access, audit, intercept, copy, print, read, disclose, modify, retrieve, and delete any work you do on a Company computer, including email. If provided, your Company email account is strictly for business communication only and is not for personal use. Except as authorized by your supervisor in the course of your work duties, you are not authorized to access the computer(s), email account(s), or files of any other Company employee. If provided, Internet access is likewise strictly for business purposes only and is not for personal use. Company reserves the unilateral right to review, monitor, access, audit, intercept, and disclose an employee’s use of the Internet at any time, with or without notice, and with or without an employee’s permission. You should have no expectation of privacy or confidentiality with respect to any use of the Internet at work. 4.13 Use of Cellular Telephones Employees use of company cellular telephones is for job-related or approved activities only. Inappropriate use of company cellular telephones, which may be defined from time to time at the discretion of Company, may subject you to discipline, up to and including termination. Likewise, use of your personal cellular telephone during work hours or on company premises is subject to restrictions and may subject you to discipline, up to and including termination. These policies apply to any communications device that makes, sends, or receives phone calls, emails, text messages, instant messages, photographs, graphics, or has the capacity to browse the Internet. Cellular telephones and similar electronic communication devices are a distraction while working at Stease. Telephone calls during regular work hours may interfere with employee efficiency and safety while performing your job. And they also can be a distraction to other employees around you. Employees are therefore directed to make personal calls during approved breaks and meal periods. Exceptions: This policy does not apply to cellular telephones supplied by our company that are used exclusively for company business. However, when using the telephone for company business, please be mindful of other employees around you and attempt to minimize distractions from them and interference with their job duties. This policy does not apply when there is an emergency that requires that you be accessible by phone, such as a medical emergency. If you are in doubt as to what constitutes an emergency for this purpose, please consult your supervisor before turning on your cellular telephone at work. 4.14 Substance Abuse Policy Company takes seriously the problem of drug and alcohol abuse and is committed to providing a work-place free of such substances. This policy applies to all employees, contractors, agents, investors, and owners of the business. No employee is allowed to consume, possess, sell, or purchase any alcoholic beverage on any property owned, leased, or operated by Company, or in any vehicle owned or leased by Company. No employee may use, possess, sell, transfer, or purchase any drug or other controlled substance that may alter an individual’s mental or physical capacity while working for Company. The exceptions are over-the-counter pain relievers and the like, used as intended and directed, and any other drugs that have been prescribed to you, and which are being used as prescribed by your doctor. Medical and/or adult-use cannabis and cannabis products can be purchased at Stease after your work shift and shall not be consumed on the premises. Company will not tolerate employees that are impaired by or under the influence of alcohol or drugs while working. In cases where the use of alcohol or drugs poses a threat to the safety of other people or property, you must report the violation. Employees who violate our Substance Abuse Policy will be subject to disciplinary action, up to and including termination. As a part of Company’s policy to ensure a drug and alcohol-free workplace, within the limits of applicable federal, state, and local laws, Company reserves the right, in its sole discretion, to test for drugs and alcohol. Some such situations may include, but not be limited, to the following: A. In conjunction with an offer of employment with Company; B. Where there are reasonable grounds for believing an employee is under the influence of alcohol or drugs; C. As part of an investigation of any accident in the workplace in which there are reasonable grounds to suspect alcohol and/or drugs contributed to the accident; D. On a random basis, where allowed by statute; E. As a follow-up to a rehabilitation program, where allowed by statute; F. As necessary for the safety of employees, customers, or the general public where allowed by statute. All tested employees will be able to receive a copy of the laboratory results that certify the results, or the testing done. It is a condition of your employment and continued employment with the Company that you comply with the Substance Abuse Policy. 4.15 Harassment and Discrimination Policy Company is proud of its work environment in which all employees are treated with respect and dignity. It is our policy that all employees have the right to work in an environment free from any type of illegal discrimination or harassment, including racial and sexual harassment. Any employee found to have engaged in any form of discrimination or harassment, whether verbal, physical, or arising out of the work environment, and whether in the work place, at work assignments off-site, at Company-sponsored social functions, or elsewhere, is unacceptable and will not be tolerated. Company’s general harassment policy is designed to ensure that all individuals can work in an environment that promotes equal opportunities and prohibits discrimination and harassment on the basis of race, religion, color, sex, age, national origin, mental or physical disability, veteran or family status, or any other status or condition protected by applicable federal, state, or local laws. Remember, Stease is a multi-cultural organization and we must all be sensitive to and tolerant of the backgrounds of others. When in doubt, don’t say it or do it Sexual Harassment: For purposes of this policy, sexual harassment is defined as follows: Unwelcome or unwanted sexual advances, requests for sexual favors, and other verbal, non- verbal, or physical conduct of a sexual nature when (1) submission to or rejection of this conduct by an individual is used explicitly or implicitly as a factor in decisions affecting hiring, evaluation, promotion, or other aspects of employment; or (2) this conduct substantially interferes with an individual’s employment or creates an intimidating, hostile, or offensive work environment. Examples of sexual harassment include, but are not limited to, unwanted sexual advances; demands for sexual favors in exchange for favorable treatment or continued employment; repeated sexual jokes, flirtations, advances, or propositions; verbal abuse of a sexual nature; graphic commentary about an individual’s body, sexual prowess, sexual deficiencies; leering; whistling; touching; pinching; assault; coerced sexual acts; suggestive insulting; obscene comments, gestures, and emails; and display in the work place of sexually suggestive objects or pictures. Racial Harassment: For purposes of this policy, racial harassment is defined as all inappropriate conduct and activity taken against an individual because of his or her race and/or national origin. Examples of racial harassment include, but are not limited to, racial comments, racial jokes or emails, treatment of an individual differently because of his or her race, and all other activities defined by Title VII of the U.S. Civil Rights Acts of 1964. If you believe that you have been the victim of sexual or other harassment or discrimination in the workplace, you should take the following steps: A. Report and discuss the matter with your supervisor. B. If you believe your supervisor or manager to be the source or a participant in the harassment, report this to another supervisor or member of management. Company will investigate and attempt to resolve your complaint, as well as take any warranted disciplinary action, as soon as possible. If for any reason you believe this has not occurred within a reasonable period of time, refer this problem to any other supervisor in the company, or to the Company CEO. Retaliation against any individual who makes a good faith compliant, or who cooperates in the investigation of any compliant, is strictly prohibited and should be reported immediately. 4.16 Performance and Salary Reviews; Provisional Period Each new or promoted employee will be given an oral and/or written job description that details the requirements and expectations of the new position. After an employee completes a period of sixty (60) days of continuous employment, they will be given a review (within 30 days of that date). Performance reviews will normally be conducted after a period of six (6) months from the date you were hired and yearly after that, with the exception of the ninety (90) day, three (3) month review at the end of your provisional period. Employee reviews are based on job description and work performance. Wage increases will be based upon reviewing these results as well as the following: Dependability, cooperation, attitude, and any disciplinary actions that have been taken. Your supervisor will review and discuss with you your hourly wage or salary and your job position and expectations during your review. During the ninety (90) days provisional period upon first being hired by Stease, you understand that you will not be considered a regular employee until you have satisfactorily completed this required provisional period of employment, as determined by Stease management. The purpose of the provisional period of employment is to determine your job satisfaction and to allow Stease management to evaluate your job performance. During said provisional period, you may or may be eligible for some of the benefits offered by Company to regular employees. The end of the provisional period does not change your employment at will status. 4.17 Payroll Non-Exempt Employees: You will be paid for your time worked on a semi-monthly period. Paydays fall on the 1st and the 15th of every month. The pay date covers days worked as follows: Work performance between the 11th through the 25th of the month will be paid on the 1st of the following month. Work performed between the 26th through the 10th of the following month will be paid on the 15th of that month. Company shall post conspicuously a notice specifying the regular paydays and the time and place of payment. Exempt Employees: You will be paid for your time worked on a semi-monthly period. Paydays fall on the 1st and the 15th of every month. The pay date covers days worked as follows: Work performance between the 11th through the 25th of the month will be paid on the 1st of the following month. Work performed between the 26th through the 10th of the following month will be paid on the 15th of that month. Company shall post conspicuously a notice specifying the regular paydays and the time and place of payment. All Employees: Paychecks may be mailed or picked up from the Company during normal business hours. In the event that a regularly scheduled payday falls on a weekend or a holiday, you will receive your ay on the next business day. If a regular payday falls during an employee’s vacation, the employee’s paycheck will be available upon his or her return from vacation or will be mailed to the home address on file with Company at the employee’s request. Direct deposit of pay checks may also be available; inquire with your supervisor or human resources representative. If there is an error in your paycheck, notify your supervisor immediately. Every effort will be made to remedy the discrepancy as quickly as possible. If your paycheck is lost or stolen, notify your supervisor immediately. A new paycheck will be issued after payment has been stopped on the original check. Company will not be obligated to indemnify an employee for any monetary loss suffered as a result of a lost paycheck if we are unable to stop payment on the original check. Company will deduct Federal Social Security and Income Tax and other legally required deductions from your payroll check pay period. Group Insurance premiums (if applicable) will also be deducted from your payroll check each pay period. 4.18 Reporting Absences In all instances specified in Sections 5.1 through 5.10, as described below, all leave requests and approvals should be made in writing whenever possible. After three (3) days of unauthorized absence, and Company not receiving acceptable explanation, the Company may assume that you have resigned. (5) Benefits and Services Except where required by applicable state or federal law, the benefits provided to employees by Company are subject to change at any time. Please communicate with your supervisor or human resources representative if you have any questions concerning the benefits available to you as an employee of Stease. 5.1 Holidays Company observes – and except in emergency situations, is closed – for the following holidays: A. New Year’s Day (January 1) B. Thanksgiving (Fourth Thursday in November) C. Christmas (December 25) When a holiday falls on a weekend, Company will designate the Friday preceding or Monday following as the observed holiday at the discretion of Company. Regular full-time employees are paid eight (8) straight time hours for each holiday. Regular part-time employees are paid for holidays based upon the number of straight time hours they are normally scheduled. Temporary and provisional employees are not paid for holidays unless they are specifically requested to work on the designated holiday. For exempt employees, this generally means that there will be no deduction from your usually paycheck on account of a holiday occurring during your pay period. 5.2 Vacation Non-Exempt (hourly) full-time regular employees are entitled to the following ad vacation schedule per year worked based on length of employment: Less than one year ……………………. No paid vacation time At least one year but less than 5 ……… One week of paid vacation 5 years but less than 10 ……………….. Two weeks of paid vacation Over 10 years …………………………. Three weeks of paid vacation Exempt (salaried) full-time regular employees are entitled to the following paid vacation schedule per year worked based on length of employment, unless a different amount of vacation is provided by your employment contract (if any): Less than one year ……………………. One week of paid vacation At least one year but less than 5 ……… Two weeks of paid vacation 5 years but less than 10 ……………….. Three weeks of paid vacation Over 10 years …………………………. Four weeks of paid vacation Your requested vacation time must be submitted in writing to your supervisor at least two (2) weeks prior to the anticipated vacation date. Thirty (30) days advance notice is preferred. Vacation time must be taken in full days only. Every effort will be made by Company to accommodate vacation requests; however, business circumstances may not permit all requests to be honored. Vacation must be approved by management. Employees may, at their option, carry over no more than eighty (80) hours of vacation leave from one calendar year to the next; no additional vacation time will accrue beyond eighty (80) hours until some vacation time is used. Any unused vacation time not carried over at the end of the calendar year may be paid to the employee in straight time earnings. You as the employee are responsible for requesting payment for unused vacation time. 5.3 Sick Leave Company provides paid sick leave to eligible salaried full-time employees when you are away from work due to illness. Unless approved by Company, you will be limited to four (4) paid sick days per year. Sick days may be used for your own illness or to care of a sick child. If you are unable to work due to illness, you must notify your immediate supervisor directly as soon as possible and by the time you were to report to work. Stease permits use of available sick days for absence due to the birth or adoption of a child to an employee. Industrial accidents and illness are covered by Worker’s Compensation Insurance pursuant to the requirements of the laws in the state(s) in which Company operates. The sick leave policy outlined above does not apply to those illnesses or injuries that are covered by a worker’s compensation policy. 5.4 Maternity Leave Stease employees who work a minimum of twenty (20) hours per week and have been employed by Company continuously for twelve (12) months are allowed up to six (6) weeks of unpaid leave after they have given birth to or in conjunction with the adoption of a child. Additional time may be allowed under unusual circumstanced and with the permission of your supervisor. 5.5 Funeral Leave Stease allows three (3) days off each year without pay for a death in your immediate family. Immediate family is defined as parents, spouse, children, brothers, sisters, mother-in-law, father- in-law, grandparents, and grandchildren. For unusual circumstances you may request up to two (2) additional days; however, these additional days must be approved by your supervisor in advance. Funeral leave for the death of anyone other than an immediate family member will require prior approval from your immediate supervisor. Funeral leave for such a death is limited to two (2) days per year. 5.6 Jury Duty Stease will provide time off work for any employee who has been assigned jury duty or appearing in court as a witness pursuant to a subpoena or court order. For non-exempt (hourly) employees, time off for jury duty or to serve as a witness shall be unpaid, except to the minimum extent required by applicable state law. Exempt (salaried) employees shall receive their usual salary for any week during which they are away from work to perform jury duty or serve as a witness in a trial for less than the entire week, les the amount paid for such service, if any, which shall be deducted from the usual salary (and the employee shall cooperate to provide the Company with information relating to the amount paid for jury duty or witness duty). Any week during which an exempt employee is away from work the entire week shall be unpaid, except to the minimum extent required by applicable state law. All employees may choose to use their vacation time if they wish to be paid for otherwise unpaid time away from work while performing jury or witness duty and they have accrued vacation time to use. In all cases, employees will retain any other benefits you had prior to this time, if any. Employees must provide their immediate supervisor with a copy of the jury summons or other court order as soon as possible after it is received. 5.7 Time Off for School Conferences Unpaid time off, up to a maximum of sixteen (16) hours each year is available to all employees for attending school conferences and activities, and preschool activities which cannot be scheduled during non-working hours. When leave cannot be scheduled during non-working hours and the need for the leave is foreseeable, you must provide reasonable prior notice of the leave and make a reasonable effort to schedule the leave so as not to disrupt unduly Company’s operations. 5.8 Personal Time Off – Brief Periods There may be an occasion when you need a short period of unpaid time (less than two hours) during your regular work schedule to attend to personal matters, such as closing on a home loan, obtaining transportation after an auto accident, coping with a family emergency, etc. The decision to grant any personal time off is at the discretion of Stease management and must be requested prior to taking the time off. 5.9 Time Off for Voting As a Stease employee, you will be allowed a reasonable period of time to vote in case you are unable to vote before or after your regular working hours if your work hours would make it difficult or impossible to vote otherwise. 5.10 Military Service Stease will allow time off work without pay for employees in the National Guard or Military Reserves who take approval leave for training purposes. Non-exempt (hourly) employees shall not receive pay for this leave, except to the minimum extend required by applicable state law. Exempt (salaried) employees shall receive their usual salary for any week during which they are away from work for temporary military duty for less than the entire week, less the amount paid for such service, if any, which shall be deducted from the usual salary (and the employee shall cooperate to provide the Company with information relating to the amount paid for the temporary military service). Any week during which an exempt employee is away from work the entire week shall be unpaid, except to the minimum extend required by applicable state law. All employees may choose to use their vacation time if they wish to be paid for otherwise unpaid time away from work while performing military service. In all cases, employees will retain any other benefits you had prior to this time, if any. Employees must provide their immediate supervisor with a copy of their deployment orders as soon as possible after they are received. 5.11 Health/Life Insurance Stease makes health and/or life insurance available to eligible employees and their eligible family members. Stease covers the cost of the premiums for the group benefits for full-time employees. If the employee wishes to have spousal and/or dependent coverage it is the employee’s responsibility to cover those premiums. Unless otherwise provided in a written employment agreement, eligible employees are all regular full-time who have completed ninety (90) calendar days of employment. Please contact a company representative for more information and details on any health or life insurance plans that are being offered. 5.12 Continuation of Medical Benefits/COBRA Insurance The Federal Consolidated Budget Reconciliation Act (COBRA) is the legislation that provides employees and their covered dependents the right to continue their group health care coverage after a qualifying event. COBRA legislation applies to employers with twenty (20) or more employees and this section shall apply when the Company meets or exceeds this threshold. Upon termination from Stease for any reason other than gross misconduct, an employee has the right to continue group medical coverage at group rates as long as the employee pays the required monthly premium. COBRA gives the employees and their qualified beneficiaries the opportunity to continue health insurance coverage under Stease’s company health plan when a “qualifying event” would normally result in the loss of eligibility. Under COBRA, you will usually pay the full cost of coverage at group rates plus and administration fee. Stease will provide you with a written notice describing rights granted under COBRA when you become eligible for coverage under Stease’s company health insurance plan. 5.13 Miscellaneous Benefits At the discretion of Stease management and upon approval by the CEO, you may be entitled to receive specific employee discounts on products or services provided by the Company. These discounts cannot be used for purchasing cannabis and/or cannabis products for other individuals other than the employee. Giving discounts to non-employees is grounds for having the employee discount revoked or even grounds for termination. 5.14 Worker’s Compensation Stease is committed to meeting its obligations under applicable worker’s compensation acts which provide medical, rehabilitation, and wage-replacement benefits to individuals who sustain work-related injuries or illnesses while working. All work-related accidents, injuries, and illnesses must be reported immediately. The failure to promptly report an accident, injury, or illness may result in the loss of coverage under workers’ compensation insurance. 5.15 Retirement Plans Under the Employee Retirement Income Security Act of 1974 (ERISA), employees may have the opportunity to participate in a retirement or other savings plan than allows employees to save for their retirement. Contact human resources for information and details on any retirement or other savings plans that are being offered and to determine your eligibility. (6) Separation from Employment 6.1 Layoff and Recall There may be occasions when it becomes necessary for management to reduce staff at Stease, due to certain business conditions or for other reasons. On such occasions, Stease will make decisions on the basis of our business needs related to employee job functions and their performance. Your supervisor or other company official will speak to you personally about your employment status as needed. 6.2 Resignation – Termination of Employment by the Employee You, as an at-will employee not subject to an employment contract, may choose to end your employment with Stease at any time, with or without good cause. You are requested to submit a notice of resignation in writing to your supervisor at least two (2) weeks prior to the date you intend your resignation to take effect, to assist the Company in planning for your departure. 6.3 Dismissal – Termination of Employment by the Employer As an at-will employee not subject to an employment contract, Stease is entitled to terminate your employment at any time and for any reason or for no reason at all, regardless of your work performance or compliance with the rules set forth in this Employee Manual. 6.3 Automatic Dismissal The commission of any offense considered serious enough by Stease management, without limitation to those outlined below, will, except in extraordinary circumstances in the sole discretion of Stease management, be followed by the immediate dismissal of that employee: A. Making false statements or mitting pertinent facts on an employment application or in an employment interview; B. Threatening, assaulting, fighting with, or harassing another employee or anyone else encountered during the course of business; C. Stealing or deliberately damaging the company’s or other employee’s property; D. Disclosing or selling company confidential information or trade secrets; E. Possessing a weapon at work; F. Reporting to work under the influence of alcohol, narcotics, or other drugs, unless the drug was prescribed for the employee by a physician; G. Falsifying or destroying company documents or computer files; H. Conviction of a felony offense and/or imprisonment; I. Taking unauthorized leave or failing to show up at work for more than three (3) consecutive days without notifying a supervisor; and J. In the case of commercial drivers: Transporting unauthorized passengers in company vehicles. K. In the case of salespersons: Salespersons who make false claims about the product or sell unauthorized products on company time. Civil and/or criminal penalties may also apply. 6.4 Exit Interview Upon termination of employment, voluntary (by the employee) or involuntary (by the employer), with or without cause in both cases, a representative of Stease may choose to have an exit interview with you. During such interview, if any, you will be informed whether you are entitled to certain post- termination benefits such as non-vested retirement benefits and credits that may be due, full or pre-rated vacation pay, and other post-employment related matters. Any employee who terminates his or her employment, or is terminated by Stease shall return all files of any kind, keys, tools, and any other materials whatsoever that are the Company property. Unless otherwise prohibited by applicable state or federal law, final settlement of your pay will not be made until all property owned by Stease is returned in satisfactory condition. The cost of replacing any items not returned will be deducted from your final paycheck, or, if this is not possible, due to legal restrictions or otherwise, legal action may be taken to recover any property or monies due to Stease. (7) Communication Policy Any questions with respect to any of the provisions of this Employee Manual should be addressed to your immediate supervisor or Stease human resources representative. You are entitled to express your point of view on work-related matters in a constructive manner, as well as to make any productive suggestions in any of the communication avenues available within Stease. (8) Arbitration; Choice of Law Any controversy or claim arising out of or relating to the employment relationship created between the employer (Stease) and employee (you), including all topics covered in this Employee Manual, and the interpretation of this Manual, or any alleged breach of it, shall be settled by arbitration in accordance with the Arbitration Rules of the American Arbitration Association, with such arbitration to take place in the County of Fresno, State of California with an agreed upon arbitrator. If the parties cannot agree on an arbitrator, a court of competent jurisdiction shall appoint an arbitrator at the request of either Party. Although the parties shall initially bear the cost of arbitration equally to the extend permitted by applicable law, the prevailing party, if any, as determined by the arbitrator at the request of the parties which is hereby deemed made, shall be entitled to reimbursement for its share of costs and reasonable attorney’s fees, as well as interest in the statutory rate. Judgement upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The determination of the arbitrator in such proceeding shall be final, binding, and non-appealable. This Employee Manual shall be interpreted, construed, and enforced in all respects in accordance with the laws of the State of California. We have supplied a separate copy of the Acknowledgement Form below. Please be sure to sign, date, and return this form to your supervisor after reading this Employee Manual; doing so is a prerequisite for employment with Stease. Attached is an Employee Information Form for you to complete and return along with your Acknowledgement Form. Thank you, and we look forward to having you as an employee, and a part of our family, team and organization! Stease Co. Acknowledgement Form This Employee Manual has been prepared for your understanding of the policies, practices, and benefits of Stease. It is important to thoroughly read this entire Manual. We reserve the right to make changes at any time without notice and to interpret these policies and procedures at the discretion of Company. This Employee Manual supersedes all prior manuals and previously issued policies. After you finish reading this Employee Manual, please sign, date, and return this Acknowledgement Form and the acknowledgement on the Cover Page within seven (7) days of your receiving this Employee Manual to read but not less than one (1) days after receiving the manual. The employee will be provided a copy of the Employee Manual for their records. You agree to keep this Employee Manual in your possession during your employment and to update it whenever new information is provided to you. You acknowledge that this Employee Manual remains the property of Stease and must be returned immediately upon request, or upon the termination of your employment. By signing below, you acknowledge that you have read and understood the policies outlined in this Employee Manual. You agree to comply with the policies contained in this Employee Manual and to read and understand any revisions to it and be bound by them. You understand this Employee Manual intended only as a general reference and is not intended to cover every situation that may arise during your employment at Stease. This Manual is not a full statement of Company policy. Any questions regarding this Employee Manual can be discussed with your supervisor or human resources representative. You acknowledge that this Employee Manual is not intended to create, nor shall be construed as creating, any express or implied contract of employment for a definitive or specific period of time between you and Stease or to otherwise create express or implied legally enforceable contractual obligations on the part of the Stease concerning any terms, conditions, or privileges of employment. If you are subject to a written employment agreement, and any terms of that agreement conflict with this Employee Manual, your employment agreement shall control. __________________________________________________ Employee Name (print legibly) __________________________________________________ Employee Signature __________________________________________________ Date TO BE FILED IN EMPLLYEE’S PERSONNEL RECORDS EMPLOYEE INFORMATION First Name: _________________________________________________ Middle Name: _________________________________________________ Last Name: _________________________________________________ Social Security Number: _________________________________________________ Date of Birth: _________________________________________________ Home Address: _________________________________________________ _________________________________________________ Phone Number: _________________________________________________ Emergency Contact: _________________________________________________ Emergency Contact Phone #: _________________________________________________ Department: _________________________________________________ Job Title: _________________________________________________ Supervisor’s Name: _________________________________________________ Starting Pay: _________________________________________________ Shifts: _________________________________________________ Notes: _________________________________________________ _________________________________________________ TO BE FILED IN EMPLLYEE’S PERSONNEL RECORDS 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 Steven Silva SB Silva, LLC 8050 N Palm Ave, Ste 300 Fresno, CA 93711 Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04106 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 748 FULTON STREET (APN 468-256-09) 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 P20-04106 748 Fulton Street 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