HomeMy WebLinkAboutC-20-102 NUG RedactedApplicant (Entity) Information
Application Type
Proposed Location
Commercial Cannabis Business
Permit Application
C-20-102
Submitted On: Dec 04, 2020
Applicant
John Oram
5104099543
john@nug.com
Applicant (Entity) Name:
HWC Partners Inc
DBA:
NUG
Physical Address:
165 Broadway Street
City:
Fresno
State:
CA
Zip Code:
93721
Primary Contact Same as Above?
No
Primary Contact Name:
John Oram
Primary Contact Title:
CEO
Primary Contact Address:
2601C Blanding Ave #408
Primary Contact City:
Alameda
Primary Contact State:
CA
Primary Contact Zip Code:
94501
Primary Contact Phone:
5104099543
Primary Contact Email:
john@nug.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:
The Rob Solley Living Trust
Proposed Location Address:
165 Broadway Street
City:
Fresno
State:
CA
Zip Code:Property Owner Phone:
Supporting Information
Application Certification
93721 5592649200
Property Owner Email:Assessor's Parcel Number (APN):
46702004
Proposed Location Square Footage:
24000
List all fictitious business names the applicant is operating under including the address where each business is located:
NUG Wellness, 3089 Teagarden St, San Leandro, CA
NUG X Sundial Collective, 1851 Buenaventura, Redding, CA
NUG, 1916 16th St, Sacramento, CA
Has the Applicant or any of its owners been the subject of any
administrative action, including but not limited to suspension,
denial, or revocation of a cannabis business license at any time
during the past three (3) years?
Yes
If so, please list and explain:
A miscommunication with the CDFA during covid-19 resulted in a revocation of a cultivation license. The license was not being used
and we requested to abandon or withdraw the license application. It was not processed appropriately and the CDFA revoked the
license. It is of no consequence as the license was not needed and was to be abandoned anyway. It was an honest administrative
error.
Is the Applicant or any of its owners currently involved in an
application process in any other jurisdiction?
Yes
If so, please list and explain:
Retail applications pending in Pacific Grove and Tracy.
Owner Information
I hereby certify, under penalty of perjury, on behalf of myself
and all owners, managers and supervisors identified in this
application that the statements and information furnished in this
application and the attached exhibits present the data and
information required for this initial evaluation to the best of my
ability, and that the facts, statements, and information
presented are true and correct to the best of my knowledge and
belief. I understand that a misrepresentation of fact is cause for
rejection of this application, denial of the permit, or revocation
of a permit issued.
In addition, I understand that the filing of this application grants
the City of Fresno permission to reproduce submitted materials
for distribution to staff, Commission, Board and City Council
Members, and other Agencies to process the application.
Nothing in this consent, however, shall entitle any person to
make use of the intellectual property in plans, exhibits, and
photographs for any purpose unrelated to the City's
consideration of this application.
Furthermore, by submitting this application, I understand and
agree that any business resulting from an approval shall be
maintained and operated in accordance with requirements of
the City of Fresno Municipal Code and State law. Under penalty
of perjury, I hereby declare that the information contained in
within and submitted with the application is true, complete, and
accurate. Iunderstand that a misrepresentation of the facts is
cause for rejection of this application, denial of a permit or
revocation of an issued permit. A denial or revocation on these
grounds shall not be appealable (FMC 9-3319(d)).
Name and Digital Signature
true
Title
CEO
Please note: the issuance of a permit will be determined based
on the application you submit and any major changes to your
business or proposal (i.e. ownership, location, etc.) after your
application is submitted may result in a denial.
All applications submitted are considered public documents for
Public Records Act request purposes.
For details about the information required as part of the
application process, see the Application Procedures &
Guidelines, City of Fresno Municipal Code Article 33 and any
additional requirements to complete the application process. All
documents can be found online via this link.
For questions please contact the City Manager’s Office at
559.621.5555.
Owner Name:
John Oram
Owner Title:
CEO
Owner Address:
2601C Blanding Ave #408
Owner City:
Alameda
Owner State:
CA
Owner Zip:
94501
Has Owner Completed Background Check Application?
Yes
Ownership Percentage (%):
47.5
Owner Name:
Adam Peterson
Owner Title:
Director
Owner Address:
2601C Blanding Ave #408
Owner City:
Alameda
Owner State:
CA
Owner Zip:
94501
Has Owner Completed Background Check Application?
No
Ownership Percentage (%):
47.5
Owner Name:
Matthew (Max) Del Real
Owner Title:
Director of Gov Rel
Owner Address:
236 W East St A142
Owner City:
Sacramento
Owner State:
CA
Owner Zip:
95926
Has Owner Completed Background Check Application?
Yes
Ownership Percentage (%):
5
Business Name: NUG
Application #: C-20-102
CANNABIS BUSINESS PERMIT APPLICATION REVIEW - RETAIL Points
Possible
All or
None Exceptional Good Acceptable
Applicant
Score
Evaluation Notes (Explain each time points are
deducted)
SECTION 1: BUSINESS PLAN 300 Points Possible for Section 1
Resume:
Resumes Provided for All Owners: Score 5 5 5
Resumes Provided in 2-page Format: Score 2 2 2
Education: (select highest academic level among ownership team, cannabis specific education
separately)
Cannabis specific education/training (accredited)2 2 0 Not discussed
High School Degree Reported: Score 4 4 -
Bachelor's Degree Reported: Score 6 6 -
Master's Degree or Higher Reported: Score 8 8 8
Experience: (among ownership team, select one at highest level)
Regulated Cannabis Retail Ownership Experience CA 13 13 13
Regulated Cannabis Retail Experience CA (management level or below): Score 10 10 -
Other Retail Business Experience Reported, More than 5 years: or 8 8 -
Other Retail Business Experience Reported, Less than 5 Years: Score 5 5 -
1.1 Sub-Total:30 28
Construction Cost Estimate:
Construction Cost Estimate Provided: Score 8 8 6 4 4 Listed as line item only, needs detail
Construction Contingency Factor Included: Score 6 6 0 Not included
All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 2 Permits listed only
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included
Operation and Maintenance Cost Estimates:
Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 6 Needs additional detail
All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 4 Needs additional detail
Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 0 Not included
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included
1.2 Sub-Total:50 16
Proof of Capitalization Specific to one or more Owners: Score 5 5 0 Not specific
Proof of Capitalization Specific to Business Name/Address: Score 5 5 0 DSWC/CCSAC/NUG Inc. listed on accounts
Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15
Certified Audited Financial Report Provided for one or more Owners: Score 5 5 0 Not included
1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner. (30 points possible)
1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs.(50 points possible)
1.3 Proof of capitalization in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City. (50 Points Possible)
Criteria Narrative:
Criteria Narrative:
Score one of the following for a maximum 20 points:
Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 20
Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 -
Capital consists of non-liquid assets (i.e. real property)8 8 -
Capital consists of a mixture of liquid and non-liquid assets 15 15 -
1.3 Sub-Total:50 35
Three Years of Data Provided: Score 10 10 8 6 8 Needs additional detail
Total Gross Revenue Estimates Provided:3 3 3
Total Gross Revenue by Product Type (flower and manufactured) Identified:3 3 3
Total Personnel Costs Provided:5 5 4 3 4
Has salary and benefits line no details on positions
or benefits, WC, taxes, etc.
Total Property Rental or Purchase Costs Provided:2 2 2
Total Utilities Costs Provided:2 2 2
Total Cannabis Product Purchase Expense Provided 2 2 2
All Contract Services Identified:2 2 2
Annual Net Revenue Identified:3 3 3
Annual Cost Escalators Identified:4 4 3 2 3 Most costs shown as escalating, no explanations
Annual Estimated Sales Tax Payments to State Provided:
2 2 0
They specifically say those are not included
because they will pass along to customer and add
on to purchase price
Annual Estimated Sale Tax Payments to City of Fresno Provided:5 5 5 Lists city license fees and taxes
Annual Business Tax License and Cannabis Permit Fee Provided:2 2 2
Annual Net Income Provided:5 5 5
Scoring Guidance: full points for realistic figures for all three years. Dock points for severe
miscalculations, unrealistic estimates, or providing less than the request three years.
1.4 Sub-Total:50 44
Hours of Operation Provided: Score 5 5 5
Hours of Operation Provided for all 7 days of the week: Score 3 3 3
Hours of Operation Provided for Holidays: Score 2 2 0 Did not describe holiday hours
Opening and Closing Procedures Provided: Score 10 10 8 6 0 Did not include opening/closing procedures
Scoring Guidance: full points for describing information in detail. Dock points for leaving information out
or not providing enough detail.
1.5 Sub-Total:20 8
1.6.1 Fully describe the day-to-day operations if your applying for a retail permit:
i. Describe customer check-in procedures.20 20 15 10 20
II. Identify location and procedures for receiving deliveries during business hours.10 10 8 6 10
iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations.10 10 10 Treez - but did not specify number of POS locations
1.6 Daily operations. With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in
which you are applying for a permit. (100 points possible)
1.4 Pro forma for at least three years of operation.
1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
iv. The estimated number of customers to be served per hour/day.20 20 15 10 20
v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and
manufactured products.20 20 15 10 20
vi. If proposed, describe delivery service procedures, number of vehicles and product security during
transportation. (if no delivery service application must state this clearly for full points)20 20 15 10 20 Delivery not proposed to start
1.6 Sub-Total:100 100
Section 1 Total:300 231
SECTION 2: SOCIAL POLICY AND LOCAL ENTERPRISE 400 Points Possible for Section 2
Description of Commitment to pay a Living Wage provided: Score 10 10 8 6 10
Did not define but listed minimum in job
description section
Definition of Living Wage Provided: Score 5 5 4 3 0 Did not define
Living Wage Defined as Greater than Minimum Wage: Score 5 5 0 Did not define
2.1 Sub-Total:20 10
Wages and Salary
CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 5
Did not define but listed minimum in job
description section
CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5 0 Did not specify
Health Care Benefits
CCB Offers Medical Coverage to All Employees: Score 5 5 5
CCB Offers Dental Coverage to All Employees: Score 3 3 0 Not described
CCB Offers Vision Coverage to All Employees: Score 3 3 0 Not described
CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1 0 Not described
Employee Pays $0 for Employee Medical Premium: Score 3 3 3
Employee Pays $0 for Employee Dental Premium: Score 2 2 0 Not described
Employee Pays $0 for Employee Vision Premium: Score 2 2 0 Not described
Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision):
Score 2 2 0 Not described
Leave Benefits
Number of Paid Vacation/PTO Days Per Year: (10+ days = excep; 6-9 days = Good; 3-5 days Acceptable)5 5 4 3 3 Did not list # of days
Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 3
Pays time+1/2 but did not list holidays or number of
recognized holidays
Number of days paid time off for Sick/Medical time: (7+ days= Exceptional, 4-6 days = Good, 3 days =
acceptable (8 hour day))5 5 4 3 3
Retirement
Offers employee retirement plan 2 2 0 Not described
Offers company match for employee retirement plan 2 2 0 Not described
2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. (20 points possible)
Scoring Guidance: https://livingwage.mit.edu/counties/06019
2.2 Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. (50 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
2.2 Sub-Total:50 22
CCB Provides Tuition Reimbursement for Certificates: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations
Training: Score 3 3 0 Does not describe tuition reimbursement
CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 5
2.3 Sub-Total:20 5
General Recruitment Plan Provided: Score 10 10 8 6 10
Social Policy Recruitment Plan Provided: Score 10 10 8 6 6
Committed to hiring but did not describe strategies
or % hire goal
Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 Did not include
Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 0 Did not include
Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 0 Did not include
2.4 Sub-Total:50 16
Owners
Number of Owners:3
Number of Owners that live within the City of Fresno:0
Number of Owners that live in the County of Fresno:0
Number of Owners that Own a Business in the City of Fresno:0
51%+ ownership interest percent of the Owners live or own a business in the City: Score 80 80 0 No local owners
51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40 0
Less than 50 percent equity of the Owners live or own a business in the City (If no owners are local,
score zero)20 20 0
Managers
Number of Managers (salaried, non-owners)
Number of Managers that live in the City of Fresno:
Number of Managers that Own a Business in the City of Fresno:
100 percent of the Managers live or own a business in the City: Score 20 20 0 Does not describe local management plan
75 to 99 percent of the Managers live or own a business in the City: Score 15 15 0
50 to 74 percent of the Managers live or own a business in the City: Score 10 10 0
Less than 50 percent of the Managers live or own a business in the City: Score 5 5 0
2.3 Describe compensation to and opportunities for continuing education and employee training.(20 points possible)
2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. (50
points possible)
2.5 Describe the extent to which the Commercial Cannabis Business will be a locally managed enterprise whose owners and /or managers reside within or own a commercial business within the City of Fresno, for at least one year prior
to March 2, 2020.(80 points possible)
Data, non-scored. Write response in Evaluation Notes
column.
IF full points achieved for Ownership category, don't score managers.
Section is total of 80 points possible.
Criteria Narrative:
Criteria Narrative:
Data, non-scored. Write response in Evaluation Notes
column.
2.5 Sub-Total:80 0
Responsibilities Described for All Titles/Positions: Score 20 20 15 10 20
2.6 Sub-Total:20 20
Does CCB have more than five employees: 5 5 5
CCB has signed a peace agreement: Score 5 5 0
States it will sign at 20 employees. pg 21. FMC
requires at 5 employees.
2.7 Sub-Total:10 5
Work Force Plan Provided: Score
10 10 8 6 8
Did not label as workforce plan but included
additional workforce related details in narrative.
Commitment to Local Hire Provided:10 10 8 6 10 67% local hire committment
Commitment to Offer Apprenticeships Provided:10 10 8 6 0 Did not describe apprenticeships
Commitment paying for continuing education provided
10 10 8 6 6
Describe in house and social equity training but not
other tuition reimbursement or employee
professional development opportunities
Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10
Did not define but listed minimum in job
description section (
2.8 Sub-Total:50 34
CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 100
Mentorship and Training: Score Oaksterdamn tuition
Equipment Donation: Score
Shelf Space: Score 20% shelf space
Legal Assistance: Score
Finance Services Assistance: Score
Other Technical Assistance: Score grant
Data to inform score on first line of this section. Write
response in Evaluation Notes column.
2.8.3. Commitment to pay a living wage to its employees
2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible)
2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible)
2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible)
2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an
application for employment with the applicant/permittee.
2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf
space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support.(100 points possible)
Scoring Guidance: full points for willingness to serve with detailed plan offering at least three aspects
mentioned above or of similar benefit. Less points for willingness to serve but vague or unclear
commitment. Zero points if there is no clear commitment to serve as Incubator.
2.9 Sub-Total:100 100
Section 2 Total:400 212
SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3
CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 0 Info not provided
CCB will established a dedicated contact person to receive complaints: Score 10 10 0 Info not provided
CCB will establish a dedicated phone number to receive complaints: Score 5 5 0 Info not provided
CCB will establish a dedicated email address to receive complaints: Score 5 5 0 Info not provided
CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 0 Info not provided
CCB will schedule or participate in periodic community meetings to engage with residents about the CCB
operation: Score 10 10 0 Info not provided
Other measure unique to business (i.e. website complaint form)5 5 0 Info not provided
Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points
for leaving out aspect, vagueness, or reactive plans.
3.1 Sub-Total:50 0
CCB will maintain a listserv of community residents to update and information residents of business
operations.
10 10 0 Info not provided
CCB will schedule or attend periodic community meetings (at least annually) to engage with residents
about the CCB operation: Score 10 10 0 Info not provided
CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 0 Info not provided
CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Info not provided
CCB will hire residents from the community work at the CCB: Score 20 20 0 Info not provided
Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness,
or reactive plans.
3.2 Sub-Total:100 0
CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 5
CCB has prepared a nuisance odor control plan: Score 10 10 8 6 10
Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary:
Score 5 5 5
3.3 Describe odor mitigation practices.(40 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible)
3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible)
Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting
the premise boundary: Score 5 5 5
CCB has established an odor reporting system: Score 5 5 0 Info not provided
CCB will install a nuisance odor monitoring system: Score 10 10 0 Info not provided
3.3 Sub-Total:40 25
CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 10
Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans.
3.4 Sub-Total:10 10
Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 8 Needs more detail
Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10
Odor control measures are identified for different nuisance odor sources: Score 10 10 10
3.5 Sub-Total:30 28
Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for
odor control measures: Score 10 10 0 Info not provided
Nuisance odor control plan describes the staff training required for system operations, maintenance,
repair, and troubleshooting.10 10 0 Info not provided
3.6 Sub-Total:20 0
CCB has identified the sources of waste generated by the business operation: Score
10 10 0
CCB has prepared a source-separation plan to segregate different sources of waste generated by
business operations: Score 10 10 10
The source-separation plan identifies policy, procedures, and locations where different sources of waste
are to be collected for disposal: Score 10 10 8 6 8 Needs more detail
The source-separation plan describes specific measures to control the collection and disposal cannabis
waste: Score 10 10 10
The name of licensed cannabis disposal company provided: Score 10 10 10
3.7 Sub-Total:50 38
Section 3 Total:300 101
SECTION 4: SAFETY PLAN 300 Points Possible for Section 4
3.4 Identify potential sources of odor. (10 points possible)
3.5 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. (30 points possible)
3.6 Describe all proposed staff odor training and system maintenance.(20 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
3.7 Describe the waste management plan. (50 points possible)
Safety Plan Prepared by Consultant: Score 10 10 2 says it was, not listed
Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 0 no evidence
Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 10
Safety Plan includes Site Plan of Premise: Score 10 10 10
Safety Plan includes Building Layout Plan: Score 10 10 10
4.1 Sub-Total:50 32
Written Accident/Incident Procedure Provided: Score 20 20 15 10 0 this section was not addressed.
Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 no procedures for accidents
Total Number of Scenarios Described: Score 0
Active Shooter Incident Described: Score 10 10 0 not mentioned
Robbery Incident Described: Score 10 10 0 not mentioned
4.2 Sub-Total:50 0
Evacuation Plan Provided: Score 20 20 15 10 0
action plan and map not provided and not
mentioned
Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 0 "
Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 0 "
4.3 Sub-Total:50 0
Location of Fire Suppression System Elements Identified: Score 10 10 10
Type of Fire Suppression System Elements Identified: Score 20 20 15 10 20
Location of Fire Extinguishers Identified: Score 10 10 10
Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 10
4.4 Sub-Total:50 50
Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 0
this sections not addressed no written procedures
provided
Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 0 "
Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 not mentioned
Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 not mentioned
Other Medical Emergency Conditions Described: Score 20 20 15 10 0 none
4.5 Sub-Total:100 0
Section 4 Total:300 82
Data-write response in Evaluation Notes Column
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible)
Criteria Narrative:
4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible)
4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible)
4.3 Describe evacuation routes. (50 points possible)
4.2 Describe accident and incident reporting procedures. (50 points possible)
Criteria Narrative:
SECTION 5: SECURITY PLAN 300 Points Possible for Section 5
Security Plan Prepared by Consultant: Score 10 10 0
Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 10
Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 10
Security Plan includes Site Plan of Premise: Score 10 10 10
Security Plan includes Building Layout Plan: Score 10 10 10
5.1 Sub-Total:50 40
Premises (Security) Diagram Provided: Score 20 20 15 10 20
Diagram is drawn to correct scale: Score 5 5 5
Diagram provides required details for premise: Score 5 5 5
Diagram shows the location of all security cameras: Score 5 5 5
Descriptions of activities to be conducted in each area of the premise 5 5 5
Limited-Access Areas Clearly Marked: Score 5 5 5
Number and Location of All Security Cameras Identified: Score 5 5 5
5.2 Sub-Total:50 50
Intrusion Alarm and Monitoring System Identified: Score 15 15 15
Name and Contact Information for Monitoring Company Provided: Score 5 5 5
Total Points of Entry into Premise Identified: Score 5 5 5
All Points of Entry to be Alarmed Identified:5 5 5
Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10
Backup Power Supply Identified: Score 10 10 10
5.3 Sub-Total:50 50
Written Cash-Handling Procedure Provided: Score 30 30 20 15 20
Dual-Custody is Practiced for all cash handling: Score 10 10 0
5.2 Premises (Security) Diagram. In addition to diagrams submitted for other sections of the application, applicants are expected to submit a premises diagram (or site plan) which, focuses on the proposed security measures and how
they relate to the overall business. (Pursuant to CCR Title 16, Division 42, §5006. Premises Diagram).
5.2.1 The diagram shall be accurate, dimensioned and to scale (minimum scale ¼"). The scale may be smaller if the proposed location exceeds more than a 1/2-acre parcel but must not be printed on larger than an 11" x 17" sheet of
paper. (Blueprints and engineering site plans are not required at this point of the application process)
5.2.2 The diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows, and doorways. The activity in each room and the location of all cameras must be
identified in the diagram.
Criteria Narrative:
5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices
(Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area.
5.2.5 Number and location of all video surveillance cameras. (50 points possible)
5.4 Briefly describe cash handling procedures which covers day to day transactions with customers, vendors armor carrier vehicles and transporting it to the bank.(100 points possible)
5.3 Identify intrusion alarm and monitoring system including the name and contact information for the monitoring company (if the company has been selected).(50 points possible)
Criteria Narrative:
Criteria Narrative:
5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to
the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and
testing areas.
5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible)
Video Surveillance Used to Monitor All Cash Handling: Score 20 20 20
Armored Car Service Used for Bank Deposits: Score 10 10 10
All Cash Deposited weekly with Bank: Score 10 10 0 No mention of frequency
Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20
5.4 Sub-Total:100 70
CCB will use onsite security guards: Score 10 10 10
All onsite guards will be licensed and bonded: Score 10 10 10
All onsite security guards will be licensed to carry firearms: Score 10 10 10
Onsite security guards will be on duty before CCB opens for business: Score 10 10 10
Onsite security guards will be on duty after CCB closes for business: Score 10 10 10
5.5 Sub-Total:50 50
Section 5 Total:300 260
Section 1: Business Plan Total Points:300 231
Section 2: Social Policy & Local Enterprise Total Points:400 212
Section 3: Neighborhood Compatibility Total Points:300 101
Section 4: Safety Plan Total Points:300 82
Section 5: Security Plan Total Points:300 260
Total Points Achieved:1600 886
55.38%
TOTAL SCORE
5.5 Discuss whether the CCB will utilize the services of on-site security guards. Include in the discussion: (50 points possible)
5.5.1 Number of guards.
5.5.2 Hours guards will be on-site.
Criteria Narrative:
Criteria Narrative:
5.5.3 Locations at which they will be positioned.
5.5.4 Guards' roles and responsibilities.
Page 1 of 1
S
State of California
Secretary of State
Statement of Information
(Domestic Stock and Agricultural Cooperative Corporations)
FEES (Filing and Disclosure): $25.00.
If this is an amendment, see instructions.
IMPORTANT – READ INSTRUCTIONS BEFORE COMPLETING THIS FORM
1. CORPORATE NAME
2. CALIFORNIA CORPORATE NUMBER
This Space for Filing Use Only
No Change Statement (Not applicable if agent address of record is a P.O. Box address. See instructions.)
3. If there have been any changes to the information contained in the last Statement of Information filed with the California Secretary
of State, or no statement of information has been previously filed, this form must be completed in its entirety.
If there has been no change in any of the information contained in the last Statement of Information filed with the California Secretary
of State, check the box and proceed to Item 17.
Complete Addresses for the Following (Do not abbreviate the name of the city. Items 4 and 5 cannot be P.O. Boxes.)
4. STREET ADDRESS OF PRINCIPAL EXECUTIVE OFFICE
CITY
STATE
ZIP CODE
5. STREET ADDRESS OF PRINCIPAL BUSINESS OFFICE IN CALIFORNIA, IF ANY
CITY
STATE
ZIP CODE
6. MAILING ADDRESS OF CORPORATION, IF DIFFERENT THAN ITEM 4
CITY
STATE
ZIP CODE
7. EMAIL ADDRESS FOR RECEIVING STATUTORY NOTIFICATIONS
Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific
officer may be added; however, the preprinted titles on this form must not be altered.)
7. CHIEF EXECUTIVE OFFICER/
ADDRESS
CITY
STATE
ZIP CODE
8. SECRETARY
ADDRESS
CITY
STATE
ZIP CODE
9. CHIEF FINANCIAL OFFICER/
ADDRESS
CITY
STATE
ZIP CODE
Names and Complete Addresses of All Directors, Including Directors Who are Also Officers (The corporation must have at least one
director. Attach additional pages, if necessary.)
10. NAME
ADDRESS
CITY
STATE
ZIP CODE
11. NAME
ADDRESS
CITY
STATE
ZIP CODE
12. NAME
ADDRESS
CITY
STATE
ZIP CODE
13. NUMBER OF VACANCIES ON THE BOARD OF DIRECTORS, IF ANY:
Agent for Service of Process If the agent is an individual, the agent must reside in California and Item 15 must be completed with a California street
address, a P.O. Box address is not acceptable. If the agent is another corporation, the agent must have on file with the California Secretary of State a
certificate pursuant to California Corporations Code section 1505 and Item 15 must be left blank.
14. NAME OF AGENT FOR SERVICE OF PROCESS
15. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA, IF AN INDIVIDUAL
CITY
STATE
ZIP CODE
Type of Business
16. DESCRIBE THE TYPE OF BUSINESS OF THE CORPORATION
17. BY SUBMITTING THIS STATEMENT OF INFORMATION TO THE CALIFORNIA SECRETARY OF STATE, THE CORPORATION CERTIFIES THE INFORMATION
CONTAINED HEREIN, INCLUDING ANY ATTACHMENTS, IS TRUE AND CORRECT.
DATE TYPE/PRINT NAME OF PERSON COMPLETING FORM TITLE SIGNATURE
SI-200 (REV 01/2013) APPROVED BY SECRETARY OF STATE
The Rob Solley Living Trust
2141 Tuolumne St., Ste. J, Fresno, CA 93721-1235
Office (559) 264-9200-FAX (559) 264-9300-Cell
November 30, 2020
City of Fresno
Office of the City Manager
Office of Cannabis Oversight
2600 Fresno Street
Fresno, California 93721
Re: Lette1· oflntent; HWC Partners Inc. ("NUG Fresno"); 165 Broadway; APN/Parcel ID 467-020-04
To Whom It May Concern:
I am writing this "Letter of Intent" regarding my commercial property in the City of Fresno located at 165
Broadway. I am the property owner of 165 Broadway in Fresno.
This "Letter of Intent" recognizes my commitment to lease my prope1ty to NUG Fresno, a Commercial
Cannabis Retail Applicant in the City of Fresno. NUG Fresno seeks to open and operate a safe, secure, and
attractive retail cannabis dispensary at 165 Broadway in Fresno.
I strongly believe that NUG Fresno would be a "winning choice" as a cannabis dispensary operator in the
City of Fresno. I understand that NUG is a leading cannabis company in California with award-winning
dispensaries established in Sacramento, Oakland, San Leandro, and Redding.
I also believe that my commercial property, located at 165 Broadway, would serve as an ideal location for
a retail cannabis dispensa1y in Fresno. This prope1ty is well fortified and will be easily accessible to both
cannabis patients and dispensary customers. Also, this location is strategically located with ease of access
to the City's freeways including the 41, 168, 180, and the 99.
My tenant, NUG Fresno, and I recognize and respect all of the rules and regulations found in the City's
Cannabis Business Ordinance, or Ordinance No. 2018-68. My tenant and I have negotiated a fair and
reasonable deal at 165 Broadway. This deal has no immediate expiration date - since it is my desire, as the
Property Owner, to support NUG Fresno during the application and selection process with the City of
Fresno.
In closing, I would like to fully recommend my tenant, NUG Fresno, to the City's Office of
Cannabis Oversight as a "Selected Applicant" for a cannabis retail dispensary permit in the City of
Fresno. Thank you.
RS:cakm
CC: File
Enclosures:
I
[:\, ,('f< ()I I ')r f >
APPLICATION FOR RETAIL CANNABIS DISPENSARY
December 4, 2020
Applicant
HWC Partners, Inc.
Proposed Location
165 Broadway Street, Fresno, CA 93721
Primary Contact
John Oram, john@nug.com
2
Table of Contents___________________________________________
1. Business Plan .................................................................................................................................... 5
1.1. Applicant Qualifications ........................................................................................................... 5
1.2. Startup Budget ........................................................................................................................... 8
1.3. Proof of Capitalization .............................................................................................................. 9
1.4. Three-Year Pro Forma .............................................................................................................. 9
1.4.1. Business License Fees and Taxes ..................................................................................... 10
1.4.2. Banking and Cash Handling ............................................................................................. 10
1.5. Hours of Operation .................................................................................................................. 10
1.6. Daily Operations ..................................................................................................................... 11
1.6.1. Customer Check-in ........................................................................................................... 11
1.6.2. Location and Procedures for Receiving Deliveries .......................................................... 12
1.6.3. POS System ...................................................................................................................... 13
1.6.4. Number of customers per day and per hour ..................................................................... 13
1.6.5. Products ............................................................................................................................ 14
1.6.6. Delivery and Curbside Pickup .......................................................................................... 14
1.6.7. COVID-19 Operational Precautions ................................................................................ 15
1.6.8. Conformance with Local and State Laws ........................................................................ 16
1.6.9. Inventory Tracking and Monitoring to Prevent Diversion ............................................... 17
2. Social Policy and Local Enterprise Plan ........................................................................................ 19
2.1. Local Hiring Preference and Equal Opportunity ..................................................................... 19
2.2. Employee Benefits .................................................................................................................. 19
2.3. Job Descriptions and Compensation ....................................................................................... 20
2.4. Labor Peace Agreement .......................................................................................................... 20
2.5. Commitment to Social Equity ................................................................................................. 21
2.5.1. Employment Practices Crafted to Address Racial Disparities and Advance Equity ....... 21
2.5.2. NUG’s Equity Program .................................................................................................... 22
3. Neighborhood Compatibility .......................................................................................................... 24
3.1.1. Odor Control .................................................................................................................... 24
3.1.2. Increased Foot and Vehicle Traffic .................................................................................. 25
3.1.3. Increased Public Safety .................................................................................................... 25
3.1.4. Noise Control ................................................................................................................... 25
3.1.5. Good Neighbor Policy ...................................................................................................... 25
3.1.6. Waste Management .......................................................................................................... 26
4. Safety Plan ...................................................................................................................................... 26
5. Security Plan .................................................................................................................................. 27
5.1. Site Design .............................................................................................................................. 28
5.2. Monitoring System .................................................................................................................. 28
5.3. Panic Buttons ........................................................................................................................... 29
5.4. Security Guards and Response ................................................................................................ 29
5.5. Visitor and Contractor Access ................................................................................................. 29
5.6. Employee Badges .................................................................................................................... 30
5.7. Employee-Specific Policies and Training ............................................................................... 30
5.8. Police Department Coordination ............................................................................................. 30
5.8.1. Notification ....................................................................................................................... 30
5.8.2. Security Liaison ................................................................................................................ 30
6. Location .......................................................................................................................................... 31
7. Community Benefits ...................................................................................................................... 31
3
7.1. Tax Revenue to the City of Fresno .......................................................................................... 31
7.2. Contributions to Community Reinvestment Fund .................................................................. 32
7.3. Local Jobs ................................................................................................................................ 32
8. Additional Required Items ............................................................................................................. 33
8.1. Indemnification ....................................................................................................................... 33
8.2. Zoning Inquiry ......................................................................................................................... 33
8.3. Cal-OSHA Statement .............................................................................................................. 33
8.4. Applicant Certification ............................................................................................................ 33
4
List of Exhibits_____________________________________________
Exhibit Description Page
1 Articles of Incorporation & Statement of Information 34
2 State Cannabis Business Licenses 37
3 CV for Dr. John Oram, PhD 49
4 CV for Nico Enea 53
5 Press Coverage with Selected Articles 56
6 Estimated Startup Costs 65
7 Projected Schedule of Startup Activities 67
8 Proof of Capitalization 69
9 Three-Year Pro Forma Financials 73
10 Standard Operation Procedures for Inventory Controls 75
11 Standard Operation Procedures for Records Retention 80
12 Standard Operation Procedures for Security 91
13 Standard Operation Procedures for Waste Management 99
14 Treez POS Operations Manual 105
15 NUG Product Catalog 121
16 NUG Retail Employee Handbook 134
17 Detailed Site Plan, Security Plan, Emergency Action Plan 179
18 Real Estate Letter of Intent 187
19 Letter of Recommendation from San Leandro Councilmember 189
20 Indemnification Form 191
21 Zoning Inquiry Receipt 193
5
1. Business Plan
HWC Partners Inc. (“NUG”) will be a state-of-the-art Cannabis and infused-product retail
dispensary located in Fresno, CA. We will operate ethically and transparently to consistently bring
the highest quality Cannabis products to local residents. NUG will distribute consciously grown,
quality-assured Cannabis from state-licensed vendors. We have utilized our industry expertise to
create next-generation Cannabis-infused products with specific, scientifically engineered
cannabinoid ratios and we are excited about bringing those products to Fresno.
Our goal as scientists, entrepreneurs and compassionate human beings is to provide our clients with
a place where they feel comfortable, supported, and respected as a valued part of a caring
community. We believe in the scientifically verified healing properties of Cannabis and wish to
provide our patients with as many therapy options as possible. We believe in responsible adult-use
of Cannabis and wish to provide a respectful and welcoming environment for responsible adults to
obtain Cannabis products. NUG’s Business and Operations Plan reflects our unwavering
commitment to excellence in business, justice for our communities, and a celebration of life and the
power of giving.
Applicant Corporate Structure
Applicant HWC Partners, Inc.
See Exhibit 1 for Articles of Incorporation and Statement of Information.
DBA NUG, NUG Wellness (To Be Filed)
Owner John J Oram, PhD
47.5% 2601C Blanding Avenue Suite 408, Alameda, CA 94501
john@nug.com,
Owner Adam Peterson
47.5% 2601C Blanding Avenue Suite 408, Alameda, CA 94501
adam@nug.com
Owner Max Del Real
5% 2601C Blanding Avenue Suite 408, Alameda, CA 94501
HWC Partners, Inc. (“NUG” and/or “NUG Wellness”) is California corporation with the single
purpose of owning and operating the proposed dispensary in Fresno, CA. Two of the principals of
the organization (Oram and Peterson) are long-time Cannabis professionals and founders of NUG,
Inc., a vertically integrated California cannabis company. NUG Inc. is the holder of all intellectual
property including business operations, employee training, finance and accounting, and the NUG
trademarks.
1.1. Applicant Qualifications
NUG has formed world-class management and advisory teams with decades of combined
experience in science and technology, public health, local government, finance, infused product
6
development, and dispensary operations. With the cumulative experience and diverse expertise of
our Management Team, NUG is at the forefront of customer care, Cannabis science, community
service, and good business practices.
Previous projects developed and/or operated by our Management Team include the following
(State-issued licenses are included in Exhibit 2):
• Licensed indoor cultivations in Oakland, Ca. (CCSAC, Inc.)
• Licensed manufacturing laboratory in Oakland, Ca. (CCSAC, Inc.)
• Licensed infused products manufacturing in Oakland, Ca. (Strategic Innovations Group Inc.)
• Licensed distribution company in Oakland, Ca. (CANN Distributors, Inc.)
• Licensed retail dispensary in San Leandro, Ca. (DSWC, Inc.)
• Licensed retail dispensary in Sacramento, Ca. (Community Health Solutions Inc.)
• Licensed retail dispensary in Redding, Ca. (Bryant Wellness Partners Inc.)
• Development and state-wide distribution of NUG branded cannabis products
• Establishment of parent company to manage licensed cannabis operations (NUG Inc.)
John J Oram, PhD – Owner, President, Chief Executive Officer
Dr. Oram’s resume is attached as Exhibit 3.
Adam Peterson – Owner, Vice President of Business Development
7
Max Del Real – Owner, Director of Government Relations
Nico S Enea – Director of Retail
8
Mr. Enea’s resume is attached as Exhibit 4.
Press Coverage and Selected Articles
See Exhibit 5 for a list of press coverage and selected articles on NUG and founders.
References
Nancy Marcus, Oakland City Administrator, nmarcus@oaklandca.gov
Greg Minor, Assistant to the Oakland City Manager, gminor@oaklandca.gov
Ed Hernandez, San Leandro Councilmember, EHernandez@sanleandro.org
Steven Signor, City of Redding Planning Department, ssignor@cityofredding.org
1.2. Startup Budget
Estimated startup costs and a projected schedule of startup activities are included as Exhibits 6 & 7,
respectively.
9
1.3. Proof of Capitalization
Current bank statements are included as proof of capitalization (Exhibit 8). The applicants on this
application are the owners and executives of the corporate entities listed on the bank statements and
have full financial control of the funds including the authority to direct those funds towards the
development of this Fresno project.
1.4. Three-Year Pro Forma
A three-year pro forma for the proposed retail cannabis business is included as Exhibit 9. The pro
forma projections are based on our experience operating other cannabis businesses in Northern
California. Assumptions used in developing the pro forma are described below. Line numbers are
used for reference. The pro forma model is top-down; it starts with assumptions about customer
volumes and average basket size and then incorporates the economics of costs of goods sold based
on markup and statewide average retail pricing.
Timing – It is assumed that NUG will open in the third quarter of 2021.
Assumptions (Lines 1-4) – The main drivers of annual revenue are average sales per day, average
sale amount, and total operational days per year. The values used are based on comparable
dispensary locations in Northern California and general population demographics and consumption
rates.
Revenues (lines 5-8, 10) – The estimated gross revenue (line 4) was split into individual product
categories based on market data. Flowers comprise the majority of sales (50%).
Sales Discounts (Line 9) - Sales discounts are assumed to total 0.5% of gross revenue. NUG will
offer weekly and seasonal discounts in addition to daily discounts to veterans and seniors.
Markup (Line 11) – Typical retail markup is 100%.
Cost of Goods Sold (COGS) (Lines 12-19) – The markup rate was used to determine the cost of
each product category. Estimated COGS were then compared with statewide average retail pricing
and adjusted as needed. Direct salary and benefit costs included in COGS are for employees directly
related to product inventory management.
Gross Profit (Line 20) – Gross profit is the difference between Total Revenues and Total COGS.
Operating Expenses (Lines 21-49) – The general day-to-day expenses incurred by the business are
included here. Some notable expenses are: City License Fee (4% of gross receipts), depreciation of
capital equipment (10yr straight-line), rent, and indirect salary and benefit costs. Benefits and
payroll taxes were estimated at 7.5% and 9% respectively. Indirect employees are individuals not
involved in product inventory management.
Charitable (Community Benefits) (Line 26) – Approximately 0.5% of Total Revenues will be
donated to Fresno-based community services organizations. See Community Benefits discussion
below.
10
Operating Profit (Line 50) = Total Revenues – Total COGS – Total Operating Expenses
IRS 280e Allocation (Line 51) – 280e limits deductions incurred in distributing a controlled
substance. For this pro forma we estimated a 280e allocation as 15% of Total Operating Expenses.
The 280e Allocation is taxable income that is added back to Operating Profit.
Interest Expense (Line 52) – NA.
Total Taxable Income (Line 53) = Operating Profit + 280e Allocation – Interest Expense
Taxes (Line 54) – State and Federal taxes were estimated at a combined rate of 43.84%. Sales tax
and the Cannabis excise tax are not included as they are assessed at the time of sale and passed on
to the end consumer.
Net Income (Line 55) = Operating Profit – Interest Expense – Income Tax Expense
1.4.1. Business License Fees and Taxes
NUG is prepared to pay an annual cannabis business license fee to the City of Fresno in an amount
equal to four percent (4%) of Gross Receipts derived from the use, operation, or possession of the
cannabis business license. In the first three years of operations NUG estimates total contributions
under this proposal to exceed See line item 25 in the three-year pro forma (Exhibit 9).
These projections are consistent with amounts paid to the cities of San Leandro and Sacramento
where year-to-date NUG has paid , respectively, from the operations of our
existing retail establishments.
1.4.2. Banking and Cash Handling
NUG has existing, fully transparent relationships with Salal Credit Union. Similarly, the proposed
NUG facility in Fresno will have a dedicated checking account with Sala Credit Union and armored
car pickups of cash through Empyreal Armored Car Service. This relationship allows for real-time
reconciliation of accounts, direct deposit for payroll and employee benefits, and check, wire, or
ACH payments to vendors and tax authorities.
While NUG has endeavored to reduce cash within our business model the industry at large still
operates on a cash basis. In compliance with the Department of the Treasury Internal Revenue
Service (IRS) Tax Code, NUG will generate and execute IRS Form 8300 for all 3rd party cash
transactions totaling more than .
1.5. Hours of Operation
Proposed business hours are from 9am to 9pm seven days per week. NUG will adjust hours to meet
customer demand while staying in compliance with all local and state regulations governing hours
of operation. Any adjustments to business hours will be communicated in advance to City staff.
11
1.6. Daily Operations
NUG will enforce a strict Operational Plan to manage customer screening, dispensing and vending
processes, to ensure compliance with regulations and to prevent nuisance behavior. A summary of
our Operational Plan follows. Operations material is considered confidential company property.
Abridged portions of our operations manual are included herein. Copies of select Standard
Operating Procedures for Inventory Controls (Exhibit 10), Records Retention (Exhibit 11), Security
(Exhibit 12), and Waste Management (Exhibit 13) are included in the Exhibits section of this
application.
1.6.1. Customer Check-in
Customers seeking to purchase cannabis from NUG will be greeted by a Receptionist and a Security
Officer upon arrival and must comply with the following criteria. Appointments are not required.
Medical Cannabis
Proof of Residency – all patients must present valid proof of California residency in the form of a
CA drivers’ license, CA identification card, US military identification card, or US passport.
Medical Recommendation – all patients must present a medical Cannabis recommendation issued
by a CA physician in good standing with the CA medical board. Recommendations will be verified
online, by phone, or by fax.
Patient Information – all patients must complete a HIPAA-compliant Patient Information Form, that
records the patients name and contact information, and agree to our terms of service and Good
Neighbor Policy. Patients’ screening information is recorded in HIPAA-compliant digital form in
our patient management system (Treez). The system records all relevant expiration dates and alerts
staff and patients when renewal is required. Returning patients will be able to access our products
and services by presenting only valid identification, so long as all patient information and
recommendations are up to date.
Adult-Use Cannabis
Identification – all adult-use customers must present valid proof of age in the form of a state
drivers’ license, state identification card, US military identification card, or US passport. All adult-
use customers must be 21 years of age or older.
Customer Information – all customers must complete a Patient Intake Form and agree to our terms
of service and Good Neighbor Policy. Customer information is recorded in our patient management
system (Treez). The system records all relevant expiration dates and alerts staff when renewal is
required. Returning customers will be able to access our products and services by presenting only
valid identification, so long as all customer information is up to date.
Upon successful completion of the screening process customers are be “buzzed” into the sales area
through an electronically controlled door lock. Customers are allowed to freely browse the retail
display cases. Trained staff are available to answer questions and make recommendations as
needed. When ready, the customer is directed to the point-of-sale counter where their order is
prepared and payment is made by cash, debit, or ACH. When the transaction is complete the
12
customer is directed to the exit and reminded to abide by our Good Neighbor Policy which includes
directives to NOT consume in the vicinity of the store and to respect the peace and quiet of the
surrounding areas.
1.6.2. Location and Procedures for Receiving Deliveries
Products are accepted from state-licensed vendors/distributors only. Our preferred distributor is
Nabis, an Oakland-based, state-licensed distributor of medical and adult-use Cannabis products.
Nabis currently works with state-licensed cultivators and manufacturers and distributes to over 300
state-licensed dispensaries throughout California. Nabis will provide the dispensary with the initial
inventory needed to begin operations and will be the primary provider of Cannabis products as
business progresses. Nabis manages independent laboratory testing of all products distributed and
delivers Certificates of Analysis to retailers as required by State regulations. Nabis is also
responsible for collecting the Cannabis excise tax from the retailer.
Once received, products are labeled with a unique barcode generated by the Treez POS system. The
barcode allows for complete end-to-end tracking of the product within the store. Samples or each
product are placed in secure display cases on the sales floor. The remaining inventory is kept in the
storage vault in the back office. Orders are filled on-demand in a small fulfillment area behind the
point-of-sale counter (inaccessible by the general public), passed through a window to the sales
associate (budtender), and handed to the customer. This process allows NUG to tightly control the
flow of products and prevent diversion.
13
1.6.3. POS System
Our point-of-sale (POS) system, Treez (www.treez.io), provides accurate, HIPAA-compliant, and
verifiable tracking of all customers, sales, and product inventories. A summary of Treez’s
functionalities follows. The Treez POS operations manual is included as Exhibit 14. Treez is fully
integrated and synced with California’s METRC track-and-trace system.
Customer CRM: Treez includes a complete Customer Relations Manager (CRM) with preferences,
notes, purchase history, and file system for physician recommendations, medical card,
identification, and other documents. The Customer CRM additionally allows for a digital visitor’s
log to track all contractors, inspectors, or other professional service personnel. ALL
INDIVIDUALS MUST REGISTER WITHIN THE TREEZ SYSTEM BEFORE BEING
ALLOWED ON THE PREMISES.
Point-of-Sale: Treez’s Point of Sale (POS) system was created specifically for the Cannabis
industry and incorporates direct equipment integration virtually eliminating human error.
Cumulative pricing, weigh heavy, and inventory grading are all accounted for, in addition to the
ability to conduct blind audits and set employee permissions.
E-Commerce: Treez includes an online menu system that allows customers to browse our product
menu and fill an online “cart” with products. The customer can choose to submit the order online
for pickup in-store or curbside delivery. The Treez system allows for advanced online payment via
ACH and debit. The e-commerce system is available for existing customers only. New customers
must first visit the storefront and register within the system prior to making online orders.
Inventory Management: Treez assigns each product a unique tracking number that allows for real-
time tracking and recall. Manual inventories will be undertaken regularly to verify Treez data and
resolve any discrepancies. The system will be monitored daily by the Inventory Manager or General
Manager, and Treez IT staff if needed, to ensure data integrity.
Quality Control: Treez stores copies of all lab results from third-party quality assurance laboratories
and links those results to specific batches of products.
Reporting: Treez’s traceability system enables government agencies to track the production,
transportation, destruction and sales of legal Cannabis. Extensive reporting capabilities allow state
and local governments to enforce regulations, collect taxes and prevent diversion.
NUG will maintain, for a minimum of three years, an accounting or ledger of all cash, receipts,
credit card transactions, and reimbursements (including any in-kind contributions) as well as
records of all operational expenditures and costs incurred by the permittee in accordance with
generally accepted accounting practices and standards typically applicable to business records. Said
ledger shall be made available to the city for inspection during business hours upon reasonable
notice by the chief of police.
1.6.4. Number of customers per day and per hour
NUG anticipated average daily customer volumes to be 250 customers in year 1, 350 in year 2, and
450 in year 3. These average daily volumes are similar to what NUG sees at its Sacramento location
and at its Redding location. Customer volumes tend to be slightly greater towards the end of the day
14
as people are getting off from work. Based on an analysis of existing locations, customer volumes
throughout the day are typically as follows:
Time 9am-11am 11am-1pm 1pm-3pm 3pm-5pm 5pm-7pm 7pm-9pm
Percent 14% 14% 16% 17% 18% 17%
1.6.5. Products
All Cannabis and Cannabis-products will be sourced from local, state-licensed vendors/distributors.
All vendors will be thoroughly vetted, and their products tested to ensure quality, safety, and
regulatory compliance. All products will be transported to NUG by state-licensed distributors by
appointment only. A summary of the various products to be offered follows. Examples of NUG
brand products are included in Exhibit 15.
Flowers – Trimmed Cannabis “buds” that are smoked or vaporized. NUG will maintain a sufficient
number of strains at varying price levels; typically, 10-15 strains will be offered. Flowers will be
dispensed in 3.5g, 7g, 14g, and 28g increments.
Infused Products – Cannabis-infused products that are ingested (edibles, tinctures) or applied
externally (topicals). All infused products must be produced in a state-licensed, commercial grade
facility following Safe Food Handling protocols and must be labeled to indicate active cannabinoid
content, ingredients, dietary information, and potential allergens. NUG will stock approximately 40
different edible products and 10 different preparations (e.g., infused topicals). Infused products
must comply with State regulations regarding potency and dosage (maximum 10mg/serving and
maximum 100mg product total).
Concentrates & Vaporizers - Concentrated Cannabis products (i.e., Extracts) must be “solvent-free.”
NUG will offer approximately 30 different extracts and vaporizers, typically in 0.5g and 1g
increments.
Accessories - The dispensary will sell a few select accessories to our customers including vaporizer
batteries, rolling papers, periodicals, and apparel.
Currently, smokeable Cannabis flowers make up the majority of Cannabis sales. However, the trend
is towards edibles and more innovative delivery systems such as vaporizers, inhalers, and capsules.
NUG estimates the following initial product breakdown: flowers 50-60% of total sales, edibles and
ingestibles 25-30%, concentrates and vaporizer products 15-20%, and topicals 5%. As the market
normalizes, we anticipate consumers will move towards low-dose edibles and ingestibles (e.g.,
10mg THC per serving; 10 servings per package). Consumers looking for stronger, higher-dose
products will move towards concentrates. As a result, the future product breakdown could look
more like 40% flowers, 30% low-dose edibles and ingestibles, 20% concentrates, and 5-10%
topicals.
1.6.6. Delivery and Curbside Pickup
Delivery is not proposed at this time. NUG prefers to focus on building a loyal customer base
through its storefront retail experience. NUG reserves the right to implement delivery in the future
and will work with City staff to obtain all required approvals prior to implementation. NUG has the
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option to lease additional space within our proposed facility. As we consider delivery, we will
consider exercising the lease option to expand our back office and create a dedicated space for
fulfillment of delivery orders.
Curbside delivery will be offered from the beginning. NUG has an online ordering system (e-
commerce) that allows existing customers to place orders, pay online via ACH or debit, and then
pickup in-store or curbside. New customers must visit the store in-person to be verified and agree to
our policies before using the online features. NUG has implemented this service at its locations in
San Leandro and Sacramento since the onset of COVID-19. To-date approximately 20% of daily
orders are made via the online system.
1.6.7. COVID-19 Operational Precautions
Since the beginning of the COVID-19 pandemic and the shelter in place moratorium on businesses
and individuals, state-permitted cannabis businesses have been considered “Essential Services” and
have been allowed to remain open & operating. In order to deal with the challenges of operating a
high-volume retail business with stores that see on average 350 to 880 people per day at its existing
locations, NUG has taken extreme precautions to protect the safety of our employees and
customers. These precautions include:
• Requiring all employees and customers to wear face masks and/or face coverings. All
employees are required to wear latex gloves;
• Placing hand sanitizer dispensers at the entrance of the dispensary, on sales floor, and at
every POS station;
• Implementing online ordering systems to offer alternatives to in-store shopping. This has
created the allowance for cashless transactions and seamless curbside pickup options so
customers do not have to enter the dispensary;
• Using touchless ID verification processes while checking into the dispensary;
• Cleaning all surfaces in which customers come into contact with routinely with 99%
isopropyl alcohol multiple times per day, including all door handles, ATM machines,
display cases, point of sale stations, furniture;
• Requiring that all employees who exhibit any signs of illness or call out sick to get a COVID
test before returning to work;
• Denying entry to customer that have visible signs of sickness or have indicated that they
may have recently been exposed to someone with COVID-19; and
• Installing ACH stations at the point of sale to reduce the amount of cash exchanged between
staff and customers.
NUG will implement these COVID-19 precautions at the proposed facility.
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1.6.8. Conformance with Local and State Laws
City of Fresno
NUG will comply with the regulations set forth in Fresno Municipal Code as it pertains to retail
cannabis establishments. Specifically, NUG will:
• Conduct cannabis business in the City only after obtaining a valid current Cannabis Retail
License;
• File with the City Manager each year a verified statement showing in detail the total gross
receipts during the preceding calendar year;
• Pay an annual license fee as set by the City;
• Obtain all required building permits and approvals from Police and Fire Departments;
• Implement strict tracking protocols to prevent diversion;
• Implement security measures to deter and prevent unauthorized entrance into areas
containing cannabis;
• Maintain only that quantity of cannabis anticipated to meet regular daily volumes in the
retail sales floor;
• Comply with requirements regarding site design including lighting, surveillance, burglar
alarms, controlled access, and restricted areas;
• Issue ID badges to all employees and require they be worn at all times while on duty and
further require that badges be left with the manager and not taken off the premises;
• Inform police if ID badges are lost or stolen;
• Maintain licensed, bonded, and insured third-party security officers on site during all
business hours;
• Comply with all demands by the City to inspect/audit books and records;
• Only operate during approved hours;
• Prohibit cannabis consumption on site;
• Keep all cannabis, cannabis products, or graphic depicting cannabis out of view from the
exterior of the store;
• Only carry compliant cannabis and cannabis products;
• Maintain current signage regarding permits and policies;
• Comply with restrictions on cannabis advertising;
• Only sell cannabis to qualified customers 21-yrs or older and patients 18-yrs or older with
valid doctor’s recommendation;
• Implement odor control measures;
• Report all incidents and crimes;
• Report any license suspensions or revocations; and
• Dispose of any cannabis waste in a manner that renders the product unrecognizable and non-
consumable.
State of California
NUG will comply with all regulations set forth by the State of California as they pertain to retail
cannabis establishments. Specifically, NUG will:
• Only engage in sales and deliveries between the hours of 6AM and 10PM;
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• Require valid proof of identification for all customers (21+ for adult use, 18+ with
recommendation for medical) before granting access;
• Limit access to controlled areas where cannabis products are stored to persons 21 years or
older with a valid business reason for entering and escort all non-employees who require
access;
• Maintain an access log of all non-employees;
• Only sell cannabis goods, cannabis accessories, and branded merchandise or promotional
materials;
• Only receive properly labeled and non-expired cannabis goods for sale from a licensed
distributor;
• Not resell returned cannabis goods and either destroy the goods or return to the distributor;
• Not accept, possess, or sell cannabis goods that are not packaged and labeled for final sale;
• Provide opaque exit packaging for all goods sold;
• Only sell cannabis goods that are resealable, tamper-evident, and child resistant;
• Only receive shipments of cannabis goods between the hours of 6AM and 10PM;
• Maintain a valid seller’s permit with the CDTFA;
• Utilize the State’s METRC track-and-trace systems for all cannabis goods;
• Account for all inventory of cannabis goods and provide regulators with inventory records
upon request; and
• Maintain financial records, personnel records, training records, contracts, permits, security
records, destruction records, track-and-trace data, and sales data for seven years and make
records available to regulators upon request.
1.6.9. Inventory Tracking and Monitoring to Prevent Diversion
NUG utilizes the Treez system (www.treez.io) to manage transactions and accurately track cash and
inventory. The Treez system keeps a real-time record of all processes within the dispensary from
receipt of inventory throughout handling, storage and sale, including disposal of unusable or
returned cannabis.
Treez is the only scalable cannabis POS, customer management, and inventory management system
capable of handling the high volume and data-sensitive transactions NUG generates at its stores.
Treez has built-in tools that:
• Safeguard retailers from selling over state purchase limits;
• Calculate and collect dynamic taxes based on product type and customer classification;
• Report inventory and sales in real-time to California’s METRC track-and-trace system;
• Insulate against internet outages with proprietary automation layers;
• Provide integrated cashless ATM and debit card payments;
• Provide ecommerce solutions for online ordering and curbside pickup complete with online
payment;
• Provide real-time analytics to help standardize and optimize internal procedures such as shift
changes, cash drops, and inventory purchasing; and
• Streamline bookkeeping through real-time integration with Quickbooks.
Each one of these tools is critical in helping NUG track the movement of cannabis goods and cash
through our business. Ultimately, the goal of track-and-trace compliance is to always have METRC
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in perfect alignment with the point-of-sale system, by accurately reflecting the sales that occurred
and the physical inventory numbers. Treez is a critical part of NUG’s track-and-trace compliance.
With the help of Treez, NUG is able to follow the following simple practices to maintain a
compliant inventory system and prevent diversion:
Separation - METRC stock counts are by package, not by product. In order to maintain compliance
NUG separates inventory according to unique batch codes that are associated with each shipment
manifest. Storing inventory according to these batch codes allows for quick and easy association of
products with shipping manifests, invoices, and laboratory certificates of analysis.
Box Seals and Secure Storage - In order to maximize the integrity of our inventory NUG seals each
box shut and records the count, date, and employee ID directly on the box. This practice eliminates
the need to open boxes to count the contents. Opening and closing boxes often leads to missing
products. Additionally, inventory is stored in a vault with restricted access. Only the general
manager and the inventory manager have access to the vault. Limiting access helps limit missing
products.
Regular Inventory Audits - The general manager and the inventory manager perform weekly
inventory audits. At least once per month the NUG finance team performs an independent inventory
audit. Both written and digital records are kept of all audits. Suspect audits are reported to
management for investigation.
Point-of-Sale Audits - Each point-of-sale should have a known amount of cash in its drawer. NUG’s
general manager regularly audits cash drawers, usually during shift changes, to ensure that actual
cash counts match expected cash counts within the Treez system. Any discrepancies in cash are
recorded in Treez and within a cash log. Cash discrepancies are reported to management and, in
some cases, human resources for employee discipline. Cash discrepancies over a certain amount can
trigger immediate termination of an employee. Repeated cash discrepancies by an employee can
also trigger termination.
Timely Entry of Adjustments - All inventory adjustments are documented within Treez and synced
to METRC. Inventory adjustments are made as soon as a discrepancy is identified so that the Treez
data are reflective of actual inventory in near real-time. This procedure makes it easier to identify
the reasons for inventory discrepancies instead of relying on memory during investigations.
Customer Audits - The Treez system provides for audits of customers with suspicious transaction
histories. If audits reveal a patient is regularly over relative limits for his or her need, he or she will
be questioned regarding the increased need and a plan of action will be determined. NUG reserves
the right to deny sales to individuals it suspects of making questionable transactions.
Finally, unrelated to Treez and day-to-day standard operating procedures, NUG stores always have
advanced surveillance systems with cameras throughout the facility, including cameras behind each
point of sale. The surveillance system helps management identify and eliminate potential incidents
of diversion.
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2. Social Policy and Local Enterprise Plan
If our application is successful, NUG will be a significant employer of local residents; fifteen full-
time equivalents (FTEs) are anticipated. All employees will receive compensation above minimum
wage standards. NUG will make a concerted effort to fill these positions with local residents
through a local-hire preference. NUG will begin operations with ten FTEs and anticipates scaling to
fifteen FTEs within the first two years of operations. Employees will be required to submit
information for an employee background check by our third-party security consultants and, if
desired, by the Fresno Police Department. NUG reserves the right to disqualify applicants convicted
of serious and/or violent criminal offense. NUG’s employee handbook is included as Exhibit 16.
2.1. Local Hiring Preference and Equal Opportunity
NUG will preferentially hire local Fresno residents. We will work closely with local job
placement programs to identify and educate local individuals for employment. NUG will provide
equal employment opportunities without regard to race, color, religion, sex, national origin,
ancestry, age, mental or physical disability, marital status, sexual orientation, pregnancy, childbirth
or related medical conditions, disability, status as a U.S. military veteran, or any other characteristic
protected by federal, state, or local law.
2.2. Employee Benefits
Continued Education: NUG will provide opportunities for career advancement in the following
areas: Security measures and controls for the prevention of diversion, theft, or loss; Procedures for
responding to an emergency; Strains and products of Cannabis and their effects; Quality assurance,
packaging, and labeling; Recognizing the signs of substance abuse or instability in customers;
Prohibition of smoking Cannabis in public places, places open to the public, or places exposed to
public view; and Responsible adult use; Regulatory compliance.
Holidays: The Fair Labor Standards Act (FLSA) does not require employers to pay for time not
worked, such as vacations or holidays (federal or otherwise). As is commonplace within our
industry, majority of holidays are regarded as regular workdays at NUG. Any employee who works
on a holiday will receive time and a half, of his/her normal rate of pay.
Vacations: NUG provides vacation time for all full-time employees who have been working for the
company for at least one continuous calendar years. On the start of the second year, employees will
start accruing vacation time; this time can be used after it is earned.
Paid Sick Leave: All new employees will receive 3 days or 24 hours of sick leave on their first day
of employment, but they will be able to start using this time after the 90-day waiting period. Then,
during subsequent years they will accrue PTO at a rate between 72 hour/year and 120 hours/year
depending on how long they have been with the company.
Health Insurance: All full-time employees will receive benefits packages paid for by NUG. The
benefits package is offered in conjunction with CalChoice and allows employees to choose between
a number of HMO and PPO options.
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2.3. Job Descriptions and Compensation
Controller – NUG’s Corporate Controller oversees all financial and accounting functions including
banking, billing, accounts payable and receivable, payroll, taxes, and budgeting, and overall
compliance. The Controller reports directly to NUG’s CEO, John Oram. The Controller will
oversee the Point-of-Sale systems and will monitor all cash drops. NUG will employ one Controller
with a salary range of annually.
General Manager - The General Manager is responsible for overall management of the dispensary
operation and reports directly to the Director of Retail, Nico Enea. He or she will ensure that all
aspects of day-to-day operations run smoothly and that all operational departments have the
resources they need. The GM will manage the Shift Manager and the Inventory Manager. The GM
is responsible for monitoring cash and product inventory and reporting those numbers to the
Controller. NUG will hire one GM with a salary range of annually.
Shift Manager - The Shift Manager is responsible for assisting the GM in overseeing day-to-day
operations. He or she reports directly to the GM. One Shift Manager is required to be on site during
all business hours. Shift Managers may need to cover certain operational roles during periods of low
staffing. The Shift Manager will coordinate with the GM to determine daily staffing needs and will
schedule employees accordingly. The Shift Manager will enforce labor laws related break time and
mealtime. Shift Managers will, together with the GM and Controller, oversee all POS systems and
cash drawers. NUG will employ two Shift Managers each with a salary range of
annually.
Inventory Manager - The Inventory Manager is responsible for the acquisition and safe keeping of
product inventory. He or she must have a detailed working knowledge of the vast array of cannabis
products available on the market and must make recommendations to the GM. He or she is
responsible for maintaining detailed inventory records and reporting those records to the Controller.
The Inventory Manager is to remain focused on product inventory at all times and is to ensure that
all products are properly packaged and labeled. The Inventory Manager is not responsible for cash
management. The Inventory Manager reports directly to the Controller. NUG will employee two
Inventory Specialists each with a salary range of annually.
Budtender - The Budtender is responsible for working the point-of-sale on the retail floor. The
Budtender has direct interaction with customers and therefore must have a working knowledge of
the cannabis products sold by NUG and should be able to make recommendations to customers. The
Budtender reports directly to the Shift Manager. NUG will employ six Budtenders each with a
salary range of annually.
Receptionist & General Admin - The Receptionist is responsible for welcoming customers upon
entrance to the facility and verifying their information within our Customer Management System
(Treez). He or she does not need Cannabis-specific knowledge. He or she must be diligent in
verifying customers identification and medical recommendation. The Receptionist reports directly
to the Shift Manager. NUG will employ two Receptionists each with a salary range of
annually.
2.4. Labor Peace Agreement
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NUG maintains a neutral position on organized labor at the proposed facility. In compliance with
State regulations, NUG will enter into and abide by the terms of a labor peace agreement upon
reaching 20 full-time employees at the Fresno location.
2.5. Commitment to Social Equity
The commitment to equity is part of NUG’s DNA. As NUG has accomplished at its Oakland
operations, the advancement of equity will be a core strategic goal of NUG’s Fresno dispensary.
We will hold ourselves accountable as a corporation to promoting equity at the Fresno dispensary
and will evaluate the job performance of the management of the dispensary based in part on their
success in implementing our equity plan.
NUG’s equity plan for Fresno consists of three major components:
(1) Employment practices designed to bring victims of the war on drugs and persons who
experienced or are experiencing poverty, the majority of whom will be Fresno residents, into
the NUG family by providing them jobs at the dispensary and the opportunity for career
advancement; and
(2) An inventory purchasing program that will support minority and women-owned cannabis
cultivators and manufacturers.
2.5.1. Employment Practices Crafted to Address Racial Disparities and Advance Equity
High-Paying Jobs and Local Hiring Preference
NUG values its employees and understands that their well-being is critical to the company’s
success. NUG anticipates that fifteen full-time equivalents (FTEs) will be hired at the Fresno
dispensary. NUG must pay top-level salaries and wages to attract top-level talent, and we are
prepared to do just that.
All employees will receive compensation above living wage standards. To be clear, these are true
dispensary employees, not executive-level owners/operators filling positions at the dispensary that
could and should be held by Fresno residents.
NUG will preferentially hire local residents through our Local Hire Program. NUG has set the goal
that 2/3 of all dispensary employees, including managers, will be long-time Fresno residents.
Equal Opportunity in Employment
NUG intends for the workforce of the dispensary to be reflective of diversity of Fresno. This will
not be achieved, however, through any strict quotas in violation of federal or state law. NUG will
not tolerate unlawful discrimination of any kind for any reason.
NUG will provide equal employment opportunities without regard to race, color, religion, sex,
national origin, ancestry, age, mental or physical disability, marital status, sexual orientation,
pregnancy, childbirth or related medical conditions, disability, status as a U.S. military veteran, or
any other characteristic protected by federal, state, or local law. This applies to all terms and
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conditions of employment, including, but not limited to, hiring, placement, promotion, termination,
transfer, leave of absence, compensation, and training.
Training for Managers and Staff to Recognize Bias and Harassment
Prior to the commencing operations and before the hiring of any staff, managers will attend a
human relations and employment law training program paid for by NUG through a credentialed and
professional agency. Managers will receive specific training on the best practices to recruit and hire
a diverse workforce, plus how to recognize and counter implicit bias in employment decisions. In
the first quarter of operations, all employees will receive state-mandated sexual harassment
recognition and prevention training.
A Hiring Strategy to Build A Diverse Team
NUG’s Dispensary Operations Manager will hire the management of the dispensary and be tasked
with evaluating candidates based on the factor including inclusion, diversity and equity. Prospective
managers will be informed that equity is a core component of NUG’s corporate culture. In turn, the
managers hired for the dispensary will evaluate job candidates for staff positions based on factors
including inclusion, diversity and equity.
The NUG Dispensary Operations Manager, who is based at NUG’s headquarters in Oakland, will
provide the Fresno dispensary General Manager a prioritized list of job responsibilities for each
staff position in advance of interviews.
Criteria such as a college degree and extensive prior retail experience that may exclude individuals
harmed by the cannabis criminalization and/or poverty will be not be used in the hiring process.
Managers will be directed to interview a wide range of applicants and not be under any pressure to
make quick hiring decisions. Interviews will be conducted by a racially, ethnically and gender
diverse panel. Data will be collected on the race, ethnicity, gender and address of applicants and
provided on a daily basis to the NUG Dispensary Operations Manager to ensure that the dispensary
General Manager is in fact interviewing a diverse pool of job applicants.
2.5.2. NUG’s Equity Program
From NUG’s extensive experience with the Oakland cannabis equity program we recognize that one
of the key impediments that persons with lower annual incomes or a cannabis conviction face in
succeeding in the cannabis industry is knowledge and training in modern cannabis cultivation and
business management. No matter the motivation and strong work ethic, without sufficient training
and education many equity applicants encounter daunting challenges in starting their own cannabis
business. Furthermore, a lack of startup capital has stymied a great many new cannabis
entrepreneurs.
To address these issues directly, NUG will endeavor to “incubate” Fresno residents that qualify as
equity applicants.1 NUG will collaborate with and seek the input of the City in setting the proper
1 The equity program will commence in second year of operations as the dispensary will incur
significant startup and capital expenses in its first year of operations.
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criteria for equity applicants. These will be individuals whose annual income is less than a set
percentage of the Average Median Income and reside in certain districts and/or police beats in
Alameda and/or have certain types of cannabis related convictions.
NUG’s equity program will consist of four major components: education, grants, jobs, and
inventory purchasing.
Education
NUG has a longstanding relationship Oaksterdam University, America’s first cannabis college
founded in 1995 in Oakland. With over 35,000 alumni worldwide, including many NUG
employees, Oaksterdam University is the world’s leading cannabis college. It provides highest
quality and most comprehensive training available for the cannabis community and industry.
Oaksterdam’s faculty are among the premier professionals, cultivators and entrepreneurs in the
cannabis industry.
Oaksterdam provides courses in all aspects of the cannabis industry. In particular, it offers separate
4-day seminars throughout the year in cannabis business management and horticulture. Two types
of cannabis business management seminars are offered: basic and advanced instruction. The basic
seminar is a prerequisite for the advanced seminar. Likewise, the horticulture seminar program is
divided into two parts.
Attendees gain advanced technical knowledge and learn key management skills for success in the
cannabis industry. The seminars also offer excellent opportunities to network with peers and
professionals and establish roots in the industry. Upon completion of the seminars and receiving a
passing grade on final examinations, attendees receive certifications from the university that are
valued by cannabis employers.
The tuition for the seminar (basic and advanced or both parts) is between per
student. NUG will underwrite the tuition fees for selected equity applicants to attend the
Oaksterdam seminar of their choice. NUG will also invite the equity applicants to tour our facilities
and meet our employees during their training in Oakland.
Grants
NUG will provide a grant of up to to each equity applicant that attends the Oaksterdam
seminars and receives a certification to be used as the applicant wishes to further their career in the
cannabis industry. These will be 100% grants, not loans.
Well-Paying Jobs
See Section 2.3 above.
Inventory Purchasing Decisions Made with An Equity Focus
While the NUG dispensary will stock all of NUG’s premium, award winning cannabis flower and
manufactured cannabis goods, NUG products will not constitute the majority of items sold at the
dispensary.
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NUG has developed a list of all state-licensed minority and women-owned cannabis cultivators and
manufacturers in California. Approximately twenty percent (20%) of the product shelf space at the
dispensary will be dedicated to products from companies on this list. As a result, the NUG
dispensary will purchase hundreds of thousands of dollars of cannabis and cannabis products
annually from minority and women-owned businesses. (All products sold will also satisfy state
regulations for labeling, packaging, and testing and NUG’s quality standards.) Through our
purchasing decisions, the NUG dispensary will directly assist minority and women-owned cannabis
businesses and help them gain market share for their products.
3. Neighborhood Compatibility
Activating a commercial space and bringing new consumers into Fresno advances the city’s
objective of increasing safety and cohesion and bolsters the economic resiliency of the
neighborhood.
NUG will renovate and modernize the interior of the proposed location, utilizing energy efficient
technologies, into an attractive, state-of-the-art retail cannabis establishment. Upon its opening,
NUG will bring patients and consumers from across Fresno and the surrounding area.
Commerce generates commerce. The patrons of NUG will bring their purchasing power to dine and
shop at other Fresno establishments, producing additional sales tax revenue for the City and
improving neighborhood safety through increased foot traffic and visitors to the commercial zone.
The security guards employed, and camera and monitoring systems installed at NUG will enhance
the safety of adjoining businesses and the neighborhood as well as ensure safe operations at the
dispensary.
3.1.1. Odor Control
NUG is committed to minimizing odor from our proposed facility and has made significant design
considerations to this end. Our facility will utilize a HVAC system that has limited exchange of
indoor and outdoor air. Additionally, the facility will have carbon filtration systems throughout that
will continuously scrub the indoor air and reduce indoor odor, thereby decreasing the potential for
outdoor odor. We will work with our neighbors to address odor concerns that might occur.
Since the onset of regulation in California in 2018, all products within the retail established must be
packaged and labeled for final sale. The packaging requirements mandate that the package must be
resealable, tamper evident, and child resistant. In addition to providing product safety, these
requirements mean that there are no open packages of bulk cannabis in the retail establishment and
thus odors are limited. Still, NUG will provide appropriate air handling and filtration to eliminate
odors.
NUG is prepared to make modifications to the buildings hvac system to ensure that no odors are
detectable outside the facility. There are two primary measures that will be taken to ensure
compliance with the no-odor policy:
1. Areas of the building where cannabis is stored and handled frequently will be
equipped with exhaust fans that hold the space under negative pressure – this
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controls the direction of airflow and ensures against rogue ventilation. Air that is
ejected through the exhaust fans will pass through a carbon filter that neutralizes all
odors. The limited access storage area (d.e.a. cage room) and the order fulfillment
room will be set up in this manner with negative pressure and carbon filters.
2. The customer sales floor is less likely to experience heavy cannabis odors. The only
cannabis products kept on the sales floor will be drinks, edibles, and concentrates -
all products that come in sealed packaging. To handle lighter odor loads, NUG will
install a duct mounted self-cleaning needlepoint bipolar ionization system. This
product will be installed in the return air plenum and neutralizes odors by destroying
VOCs with multiple pass filtration. Please refer to the product brochure on the
detailed site designs (Exhibit 17) for more information about this odor control
method. NUG will contract with a local hvac maintenance group who will provide
quarterly servicing of the hvac equipment, including the odor control equipment.
3.1.2. Increased Foot and Vehicle Traffic
Increased foot and vehicle traffic are likely results of any successful retail establishment. Our
proposed location is ideal for increased vehicle traffic as it will be located along a main
transportation artery and commercial zone in Fresno. The overall percentage increase in vehicle
traffic load will be minimal for an already well-traveled area. The well-lit and easily accessible
parking lot will ensure that customers will have room to turn off the street quickly to avoid traffic
backups. NUG’s proposed location is conveniently situated near several bus lines. This easy access
to public transportation will keep vehicle traffic increases to a minimum.
3.1.3. Increased Public Safety
Cannabis dispensaries have a documented history of reducing crime in the surrounding territory.
NUG intends to ensure that our state-of-the-art security system, which will monitor the surrounding
neighborhood for 100-ft in every direction, has this positive effect on the community. In addition to
24/7 camera surveillance, onsite security will arrive before and leave after regular business
operation hours and will make random patrols off-hours.
3.1.4. Noise Control
Potential noise sources include the internal operation of the NUG as well as exterior noise resulting
from patient arrivals and departures. Familiarity with our Good Neighbor Policy will encourage our
patients to minimize noise around the property exterior, and as a failsafe our front door employee
will always be present to remind patients to maintain considerate noise levels, and if required offer
warnings for car stereo noise, honking, tire screeching, or yelling.
3.1.5. Good Neighbor Policy
A Good Neighbor Policy will be communicated to all employees and customers to ensure a positive
impact on the local environment and a positive relationship with our neighbors. Customers must
agree to our Good Neighbor Policy and NUG reserves the right to refuse service to individuals who
do not abide by its rules. Our policy is as follows:
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“NUG and its members have a responsibility to be the best neighbors we can be. To ensure that our
center is perceived as a good neighbor, please help us to be respectful and caring of our neighbors’
rights, privacy, and property. We work hard to maintain a positive relationship with those in our
community, including our neighbors, local stakeholders, and law enforcement. Be mindful that you
are representing NUG as a member and that you are expected to adhere to our Good Neighbor
Policy. We expect our members and staff to be courteous and respectful in their experiences with
those in our neighborhood. It is important that we be considerate of those who live and work
nearby. Please respect these relationships and avoid activities that could disturb others. Be mindful
of where you park. Always turn down your music and use low voices when entering or leaving the
facility area. Never park illegally on the streets surrounding the center or in spaces not intended for
the center's use. If you are having trouble finding appropriate parking, please ask our friendly staff
for help. We always want you to feel safe at NUG. If you need an escort to your vehicle, just let our
staff know. Report any suspicious or illegal activity. Being a good neighbor will help us to maintain
a positive relationship with our community and be able to serve your needs for years to come”.
3.1.6. Waste Management
NUG’s Standard Operating procedure for Waste Management is included as Exhibit 13.
4. Safety Plan
A detailed safety plan was prepared by a licensed engineer and is included in Sheets A-41., A-4.2,
and A-4.3 in Exhibit 17. Due to time constraints related to the very quick application process, NUG
was unable to engage a California professional fire prevention and suppression consultant who
could deliver prior to the application deadline. The licensed engineer who prepared the plan has
experience in the field and has designed numerous cannabis facilities. NUG requests that the City
accept the plans as drafted by our licensed engineer. If awarded the license by the City of Fresno,
NUG will engage a California professional fire prevention and suppression consultant to prepare
additional plans to be included in our building permit applications. For easier review, the narrative
from the engineer’s plans are included below.
Fire Extinguishers (Exhibit 17 Sheet A-4.1)
1. Provide portable fire extinguishers and mount, locate, and identify them so that they are
readily accessible to employees without subjecting the employees to possible injury.
2. Use only portable fire extinguishers approved for "class a" fires.
3. Do not use portable fire extinguishers that use carbon tetrachloride or chlorobromomethane
extinguishing agents.
4. Assure that portable fire extinguishers are kept in designated places at all times except
during use.
5. Visually inspect portable fire extinguishers monthly.
6. Perform an annual maintenance check on portable fire extinguishers. Stored pressure
extinguishers do not require an internal examination. Record the annual maintenance date
and retain this record for one year after the last entry or the life of the shell, whichever is
less. Make the record available to the fire department upon request.
7. Provide an educational program to familiarize employees with the general principles of fire
extinguisher use and the hazards involved with incipient stage firefighting.
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8. Train employees (who have been designated to use firefighting equipment in the emergency
action plan) in the use of the equipment. Provide this training when employees are first
given this assignment and once a year thereafter.
9. Distribute portable extinguishers so that the travel distance for employees to any
extinguisher is 75 feet or less.
Automatic Fire Suppression System (Exhibit 17 Sheet A-4.1)
The retail sale of cannabis does not trigger automatic fire suppression installation in the city of
Fresno. Any construction resulting in the alteration of 50% or more of an existing building does
trigger the need for an automatic fire suppression system in this jurisdiction -the proposed tenant
improvement project does not surpass 50%.
Fire Alarm System (Exhibit 17 Sheet A-4.1)
Based on section 903.2.7 of the California building code, it does not appear that a fire alarm is
required by the code, as this tenant space is less than 12,000 sf, is less than three stories above
grade, and is not an upholstery store greater than 5,000 sf. If the Fresno fire department has adopted
an amended version of the California fire code that does require a fire alarm, the applicant is
prepared to comply, and the building will be equipped with a fire alarm system. The system will be
comprised of a central fire monitoring panel, smoke and carbon monoxide detectors per plan, & pull
stations per plan. The fire alarm system will be monitored 24/7 by a third party (all guard alarm).
Cannabis Waste Management Locations and Procedures (Exhibit 17 Sheet A-4.1)
1. Please refer to safety diagram for the location of the secure cannabis-waste storage location
inside the D.E.A. approved cage. NUG wellness contracts with Mediwaste disposal
Cannacycle program at all of their facilities across the state of California.
2. When cannabis product is found to be damaged, is returned, or is found to be expired, the
NUG wellness inventory manager will record the product in the track and trace system to be
waste.
3. The inventory manager will place the cannabis in the Mediwaste disposal bin within the
D.E.A. cage. There will be one 43-gallon container.
4. Mediwaste is "on call" to retrieve the contents of the container, it is estimated they will be
summoned one every three months.
5. Mediwaste is responsible for rendering the product useless by way of shredding the material
and mixing with media such as soil or sawdust.
Emergency Action Plan and Incident Reporting (Exhibit 17 Sheet A-4.2 and A-4.3)
Please refer directly to the engineers plans in the above referenced exhibit for the Emergency
Action Plan and Incident Reporting.
5. Security Plan
28
5.1. Site Design
Windows on ground floors will either be laminated with a chemical-, impact-, and blast-resistant
poly-resin film or secured with bars on the interior. All entry points will be covered by the facility’s
security alarm system, with linked LED flood lights installed on exterior corners, and LED wall
pack lights installed along exterior walls. All areas where cameras are fixed will be lit to ensure
identification of any person or activity.
Sensitive areas will be built with steel barrier mesh beneath the drywall. All Cannabis, Cannabis-
products, and cash will be kept in a locked room, vault or locked container affixed to a wall or floor.
Only NUG Management will have individual access to sensitive areas; all other persons must be
accompanied. Products in the sales area will be kept in secured display cases to prevent direct
customer access. Cash in the sales area will be kept in point-of-sale (POS) cash register drawers
linked to the Treez.io POS system.
The proposed dispensary will have a single point of entry and exit for all customers. Surveillance
cameras will be located at the entrance and at the controlled access door. This controlled access
design minimizes the potential for forced entry through the main entrance.
5.2. Monitoring System
NUG utilizes Bay Alarm to procure, maintain, and provide 24-hr monitoring of security systems.
Moreno Electrical and Automation will install alarms linked to lighting, cameras, and access
controls. Bay Alarm will install alarms linked to panic buttons, contact and glass break sensors, and
fire, smoke, and motion detection systems. When an alert is sent from either system, security guards
and management can utilize the 24-hr video monitoring system to survey the facility before
contacting on-site guards, patrol guards, and the authorities.
NUG will install a video surveillance system that meets the requirements of the operational
regulations for cannabis retail establishments as set forth by the Bureau of Cannabis Control. The
system will consist of twelve hd-quality cameras that record 24 hours per day, seven days per week.
The cameras will record at 4 mp with a resolution of 2,688x1,520 at 30 frames per second.
Adequate hard-drives will be provided for 90-days of continuous storage. Cameras will be provided
to monitor the sidewalk in front of the store, the parking lot south of the store, the public
entrance/exit, the customer sales floor, the points of sale, the order fulfillment area, and the secure
storage area. Any area where product is store, cash is handled, or diversion can occur will be
29
monitored by camera. All video footage will be remotely accessible by the city manager and Fresno
police department in a format that is compatible with city software.
NUG will provide the Police Department upon request in the event of an emergency or other law
enforcement action real time access to live-feeds and recordings of the dispensary security
cameras. In accordance with the federal Health Insurance Portability and Accountability Act
(HIPPA) and California law, the privacy policy posted at the facility and provided to clients will
disclose that security cameras have been installed at the premises and that the entrance/exit,
reception, and product/sales areas of the dispensary are recorded for safety purposes.
5.3. Panic Buttons
5.4. Security Guards and Response
5.5. Visitor and Contractor Access
NUG’s facility will be accessible only to authorized individuals. Visitors and contractors will be
limited and will wear a badge, be escorted at all times, and be limited to the time and areas
necessary for their visit. Electronic sign-in via the Treez.io system will track the identity, date and
time of all visitors and the Receptionist will also keep written Visitor Logs.
30
5.6. Employee Badges
Employees will be issued an ID badge by the Fresno Police Department bearing his or her name and
photo. ID badges must be worn at all times while in the facility. ID Badges must not be removed
from the premises except when traveling off premises on official business. Lost badges will be
promptly reported to the Police Department and a new badge will be issued within 24-hours.
5.7. Employee-Specific Policies and Training
All NUG employees will complete pre-employment background checks and security training. The
Director of Retail and the GM will manage this training and supplement it with training led by a
professional OSHA trainer, law enforcement, and fire and emergency services. Security training for
all employees will cover facility security devices, systems, protocols, and emergency response
training.
NUG staff will be trained in theft and diversion prevention and detection, including immediately
reporting irregularities that might indicate loss, fraud, embezzlement, or other illegality. Employees
will be trained to investigate these reports via inventory check and physical inventory
reconciliation.
In the event of a robbery, NUG staff will be trained to comply with the demands of the perpetrators
without putting up a struggle. This includes handing over products and cash. Our first concern under
such a scenario is the safety of our employees and customers. Complying with perpetrator demands
minimizes the potential for injury to employees and customers.
5.8. Police Department Coordination
NUG will meet and confer with the Police Department and Chief to refine a comprehensive safety
plan for the proposed dispensary. In preparing this application we reached out to the Police
Department to initiate the cooperative relationship. We have incorporated best practices into our
security plan presented herein. Specifically, we have incorporated suggestions regarding the
following:
5.8.1. Notification
NUG will notify the Police Department within 24 hours after discovering any diversion, theft,
criminal activity, loss, unauthorized alteration of records, or other material security breach.
5.8.2. Security Liaison
31
6. Location
The proposed location is 165 Broadway Street, Fresno, CA 93721. The building is single story
warehouse and has a total area is 24,618 square feet. The space proposed for use as NUG’s retail
establishment is 4,465 square feet. The building is zoned M-2. A Letter of Intent for the property is
included as Exhibit 18.
There are 15 street parking spaces around the immediate perimeter of the building that can be used
by customers, with additional street parking across the street. The applicants propose to utilize the
adjacent warehouse space within the same building for indoor employee parking – nine spaces can
be provided in this approximately 5,600 sf space. This space will also be used for vendor deliveries
& pickups. The applicant has the option to lease additional warehouse space adjacent to the
dispensary within the same building. This space is 13,095 sf and can likely provide 20-25 indoor
customer parking spaces.
Detailed site plans were prepared by a licensed engineer (Exhibit 17). The plans include the
following seven sheets:
Sheet A-1 – Vicinity Map, Property Diagram, Project Data
Sheet A-2 – Detailed License Premises
Sheet A-3 – Elevations, Photos, and Signage
Sheet A-4.1 – Safety Plan, Diagram, and Notes
Sheet A-4.2 – Safety, Emergency Action Plan Part One
Sheet A-4.3 – Safety, Emergency Action Plan Part Two
Sheet A-5 – Security Plan, Diagram and Notes
7. Community Benefits
NUG’s community benefits program consists of three basic elements: contributions to the City of
Fresno, specific contributions to local non-profits, and establishment of a community fund for
needs-based contributions. In total these contributions are estimated to be in excess of over the
first three years of operations.
A letter of support from San Leandro Councilmember Ed Hernandez is included as Exhibit 19 to
not only demonstrate our positive relationships with municipalities but also to demonstrate that
NUG has a proven track record of paying significant license fees based on a percent of our retail
gross receipts.
7.1. Tax Revenue to the City of Fresno
32
NUG will contribute four percent (4%) of gross receipts to the City of Fresno as part of the City’s
tax policy. This commitment applies to all gross receipts derived from the use, operation, or
possession of the cannabis business license. Over the first three years of operations NUG estimates
total contributions under this proposal to be in excess of . See line item 25 in the three-year
pro forma (Exhibit 9). These projections are consistent with amounts paid to the cities of San
Leandro and Sacramento where year-to-date NUG has paid , respectively,
from the operations of our existing retail establishments.
7.2. Contributions to Community Reinvestment Fund
NUG is proposing to contribute 0.5% of gross receipts to the Fresno Community Reinvestment
Fund. Over the first three years of operations NUG estimates total contributions under this proposal
to be in excess of See line item 26 in the three-year pro forma (Exhibit 9).
7.3. Local Jobs
Additional community benefits come in the form of job creation to help the local economy. Initially,
NUG will create ten positions that will be preferentially given to local residents of Fresno. By year
3 (2023), NUG will employee approximately fifteen individuals working full time at the retail
establishment. Our starting hourly wage is
.
33
8. Additional Required Items
8.1. Indemnification
Applicant’s indemnification of the City of Fresno is included as Exhibit 20.
8.2. Zoning Inquiry
A zoning inquiry application was submitted for the proposed location. A receipt of this submittal is
included as Exhibit 21.
8.3. Cal-OSHA Statement
Per FMC 9-3316(c), I certify that the applicant, HWC Partners Inc., will employ within one year or
receiving a commercial cannabis business permit in the City of Fresno, one supervisor and one
employee who have completed a Cal-OSHA industry outreach course offered by a duly authorized
training provider.
Signature: _______________________________ Date: ___________________
John J Oram, PhD
President & CEO of HWC Partners Inc.
8.4. Applicant Certification
I certify under penalty of perjury under the laws of the State of California, that I have personal
knowledge of the information contained in this application, and that the information contained
herein is true and correct.
Signature: _______________________________ Date: ___________________
John J Oram, PhD
President & CEO of HWC Partners Inc.
Exhibit 1
Articles of Incorporation and Statement of Information
34
35
Page 1 of 1
S
State of California
Secretary of State
Statement of Information
(Domestic Stock and Agricultural Cooperative Corporations)
FEES (Filing and Disclosure): $25.00.
If this is an amendment, see instructions.
IMPORTANT – READ INSTRUCTIONS BEFORE COMPLETING THIS FORM
1. CORPORATE NAME
2. CALIFORNIA CORPORATE NUMBER
This Space for Filing Use Only
No Change Statement (Not applicable if agent address of record is a P.O. Box address. See instructions.)
3. If there have been any changes to the information contained in the last Statement of Information filed with the California Secretary
of State, or no statement of information has been previously filed, this form must be completed in its entirety.
If there has been no change in any of the information contained in the last Statement of Information filed with the California Secretary
of State, check the box and proceed to Item 17.
Complete Addresses for the Following (Do not abbreviate the name of the city. Items 4 and 5 cannot be P.O. Boxes.)
4. STREET ADDRESS OF PRINCIPAL EXECUTIVE OFFICE
CITY
STATE
ZIP CODE
5. STREET ADDRESS OF PRINCIPAL BUSINESS OFFICE IN CALIFORNIA, IF ANY
CITY
STATE
ZIP CODE
6. MAILING ADDRESS OF CORPORATION, IF DIFFERENT THAN ITEM 4
CITY
STATE
ZIP CODE
7. EMAIL ADDRESS FOR RECEIVING STATUTORY NOTIFICATIONS
Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific
officer may be added; however, the preprinted titles on this form must not be altered.)
7. CHIEF EXECUTIVE OFFICER/
ADDRESS
CITY
STATE
ZIP CODE
8. SECRETARY
ADDRESS
CITY
STATE
ZIP CODE
9. CHIEF FINANCIAL OFFICER/
ADDRESS
CITY
STATE
ZIP CODE
Names and Complete Addresses of All Directors, Including Directors Who are Also Officers (The corporation must have at least one
director. Attach additional pages, if necessary.)
10. NAME
ADDRESS
CITY
STATE
ZIP CODE
11. NAME
ADDRESS
CITY
STATE
ZIP CODE
12. NAME
ADDRESS
CITY
STATE
ZIP CODE
13. NUMBER OF VACANCIES ON THE BOARD OF DIRECTORS, IF ANY:
Agent for Service of Process If the agent is an individual, the agent must reside in California and Item 15 must be completed with a California street
address, a P.O. Box address is not acceptable. If the agent is another corporation, the agent must have on file with the California Secretary of State a
certificate pursuant to California Corporations Code section 1505 and Item 15 must be left blank.
14. NAME OF AGENT FOR SERVICE OF PROCESS
15. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA, IF AN INDIVIDUAL
CITY
STATE
ZIP CODE
Type of Business
16. DESCRIBE THE TYPE OF BUSINESS OF THE CORPORATION
17. BY SUBMITTING THIS STATEMENT OF INFORMATION TO THE CALIFORNIA SECRETARY OF STATE, THE CORPORATION CERTIFIES THE INFORMATION
CONTAINED HEREIN, INCLUDING ANY ATTACHMENTS, IS TRUE AND CORRECT.
DATE TYPE/PRINT NAME OF PERSON COMPLETING FORM TITLE SIGNATURE
SI-200 (REV 01/2013) APPROVED BY SECRETARY OF STATE
36
Exhibit 2
State Cannabis Business Licenses
37
Name Business Name Business Address Start Date End Date Business Type Agency License #
John Oram, Nico Enea CCSAC Inc.810 81st Ave., Oakland, CA 5/9/20 5/8/21 Cultivation CDFA CCL18-0001047
John Oram, Nico Enea CCSAC Inc.580 Julie Ann Way, Oakland, CA 4/23/20 4/23/21 Manufacturing CDPH CDPH-10002737
John Oram, Nico Enea CCSAC Inc.580 Julie Ann Way, Oakland, CA 5/24/20 5/23/21 Cultivation CDFA CCL18-0000860
John Oram, Nico Enea CCSAC Inc.6315 San Leandro St., Oakland, CA 5/31/20 5/30/21 Cultivation CDFA CCL18-0001274
John Oram DSWC Inc.3089 Teagarden, San Leandro, CA 7/22/19 7/21/21 Storefront Retail BCC C10-0000479-LIC
John Oram, Nico Enea, Adam Peterson Bryant Wellness Partners Inc.1852 Buenaventura Blvd., Redding, CA 6/17/20 6/17/21 Storefront Retail BCC C10-0000730-LIC
John Oram, Adam Peterson Strategic Innovations Group Inc.810 81st Ave., Oakland, CA 10/24/19 10/24/20 Manufacturing CDPH CDPH-10003937
John Oram, Nico Enea CANN Distributors Inc.
2919 La Cienga Blvd
Culver City, CA 9023 7/29/19 7/28/21 Distribution BCC C11-0000921-LIC
John Oram, Nico Enea CANN Distributors Inc.
2919 La Cienga Blvd
Culver City, CA 9023 7/29/19 7/28/21 Non-Storefront Retail BCC C9-00000234-LIC
John Oram, Nico Enea CANN Distributors Inc.810 81st Ave., Oakland, CA 6/21/19 6/20/21 Distribution BCC C11-0000451-LIC
38
Bureau of Cannabis Control
(833) 768-5880
Adult-Use and Medicinal - Distributor License
Provisional
LICENSE NO:
C11-0000451-LIC
LEGAL BUSINESS NAME:
CANN DISTRIBUTORS INC.
PREMISES:
810 81ST AVE
OAKLAND, CA 94621-2569
VALID:
6/21/2019
EXPIRES:
6/20/2021
Non-Transferable Prominently display this license
as required by Title 16 CCR § 5039
39
Bureau of Cannabis Control
(833) 768-5880
Adult-Use and Medicinal - Retailer License
Provisional
StoreIront
LICENSE NO:
C10-00000-LIC
LEGAL BUSINESS NAME:
BR<ANT :ELLNESS PARTNERS,
INC
PREMISES:
1852 BUENAVENTURA BLVD
REDDING, CA 96001-615
VALID:
6/1/2020
EXPIRES:
6/1/2021
Non-Transferable Prominently display this license
as required by Title 16 CCR § 5039
40
Bureau of Cannabis Control
(833) 768-5880
Adult-Use and Medicinal - Retailer License
Provisional
StoreIront
LICENSE NO:
C10-000049-LIC
LEGAL BUSINESS NAME:
DS:C, INC.
PREMISES:
089 TEAGARDEN ST
SAN LEANDRO, CA 945-520
VALID:
/22/2019
EXPIRES:
/21/2021
Non-Transferable Prominently display this license
as required by Title 16 CCR § 5039
41
STATE OF CALIFORNIA
DEPARTMENT OF PUBLIC HEALTH
MANUFACTURED CANNABIS SAFETY BRANCH
California Department of Public Health
P.O. Box 997377, MS-7606
Sacramento, CA 95899-7377
Asif A. Maan Ph.D.
Chief, Manufactured Cannabis Safety Branch
Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.
ANNUAL MANUFACTURING LICENSE
LICENSE NUMBER:
LICENSE TYPE:
The licensee named herein is authorized to manufacture cannabis products at the licensed premises listed herein through the expiration date
of this license. This annual license issued is in accordance with the provisions of Division 10 of the California Business and Professional Code
and is not transferable to any other person or premises. The licensee is required by law to notify the Manufactured Cannabis Safety
Branch of changes pertaining to this license. This license shall always be displayed in a prominent place at the licensed premises. This
license shall be subject to suspension or revocation by the California Department of Public Health if it is found that manufacturing
operation is in violation of Division 10 of the Business and Professions Code or regulations adopted thereunder.
LICENSEE:
EFFECTIVE DATE:
EXPIRATION DATE:
LICENSED PREMISES:
42
California Department of Food and Agriculture
1220 N Street
Sacramento, CA 95814
PROVISIONAL CANNABIS CULTIVATION LICENSE
Legal Business Name:Valid:
CCSAC INC 05/31/2020 to 05/30/2021
Main Premises APN:License Number:
Alameda County - 41-3916-2-2 CCL18-0001274
Main Premises Address:License Type:
Medicinal-Small Indoor6315 San Leandro St
Oakland, CA 94621
--- PROVISIONAL LICENSE PURSUANT TO BPC 26050.2 ---
Additional Premises APN(s):Additional Premises Address(es):
---- POST IN PUBLIC VIEW -------- NON-TRANSFERABLE ----Page 1 of 1
43
Bureau of Cannabis Control
(833) 768-5880
Adult-Use and Medicinal - Retailer NonstoreIront License
Provisional
Deliver\
LICENSE NO:
C9-000024-LIC
LEGAL BUSINESS NAME:
CANN DISTRIBUTORS INC
PREMISES:
2919 La CieneJa BLVD
Culver Cit\, CA 9022
VALID:
/29/2019
EXPIRES:
/28/2021
Non-Transferable Prominently display this license
as required by Title 16 CCR § 5039
44
Bureau of Cannabis Control
(833) 768-5880
Adult-Use and Medicinal - Distributor License
Provisional
LICENSE NO:
C11-0000921-LIC
LEGAL BUSINESS NAME:
CANN DISTRIBUTORS, INC.
PREMISES:
2919 La CieneJa BLVD
Culver Cit\, CA 9022
VALID:
/29/2019
EXPIRES:
/28/2021
Non-Transferable Prominently display this license
as required by Title 16 CCR § 5039
45
STATE OF CALIFORNIA
DEPARTMENT OF PUBLIC HEALTH
MANUFACTURED CANNABIS SAFETY BRANCH
California Department of Public Health
P.O. Box 997377, MS-7606
Sacramento, CA 95899-7377
Asif A. Maan Ph.D.
Chief, Manufactured Cannabis Safety Branch
Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.Asif A. Maan Ph.D.
ANNUAL MANUFACTURING LICENSE
LICENSE NUMBER:
LICENSE TYPE:
The licensee named herein is authorized to manufacture cannabis products at the licensed premises listed herein through the expiration date
of this license. This annual license issued is in accordance with the provisions of Division 10 of the California Business and Professional Code
and is not transferable to any other person or premises. The licensee is required by law to notify the Manufactured Cannabis Safety
Branch of changes pertaining to this license. This license shall always be displayed in a prominent place at the licensed premises. This
license shall be subject to suspension or revocation by the California Department of Public Health if it is found that manufacturing
operation is in violation of Division 10 of the Business and Professions Code or regulations adopted thereunder.
LICENSEE:
EFFECTIVE DATE:
EXPIRATION DATE:
LICENSED PREMISES:
46
California Department of Food and Agriculture
1220 N Street
Sacramento, CA 95814
PROVISIONAL CANNABIS CULTIVATION LICENSE
Legal Business Name:Valid:
CCSAC INC 05/24/2020 to 05/23/2021
Main Premises APN:License Number:
Alameda County - 41-3906-10-1 CCL18-0000860
Main Premises Address:License Type:
Medicinal-Small Indoor580 Julie Ann Way
Oakland, CA 94621
--- PROVISIONAL LICENSE PURSUANT TO BPC 26050.2 ---
Additional Premises APN(s):Additional Premises Address(es):
---- POST IN PUBLIC VIEW -------- NON-TRANSFERABLE ----Page 1 of 1
47
California Department of Food and Agriculture
1220 N Street
Sacramento, CA 95814
PROVISIONAL CANNABIS CULTIVATION LICENSE
Legal Business Name:Valid:
CCSAC INC 05/09/2020 to 05/08/2021
Main Premises APN:License Number:
Alameda County - 41-4207-3-1 CCL18-0001047
Main Premises Address:License Type:
Medicinal-Small Indoor810 81ST AVE
Oakland, CA 94621
--- PROVISIONAL LICENSE PURSUANT TO BPC 26050.2 ---
Additional Premises APN(s):Additional Premises Address(es):
---- POST IN PUBLIC VIEW -------- NON-TRANSFERABLE ----Page 1 of 1
48
Exhibit 3
CV for Dr. John Oram, PhD
49
Exhibit 5
Press Coverage and Selected Articles
56
6/5/2019 NUG: Premier Single-Source Shop | DOPE Magazine
https://dopemagazine.com/nug-sacramento-ca/1/3
NUG: Premier Single-Source Shop
Ashleigh Castro • May 25, 2019 8 1 minute read
: Photos by Ashleigh Castro
Facebook: @thesocialnug
Instagram: @nug
Website: nug.com
Address: 1918 16th St., Sacramento, CA 95811
Store Hours: Mon-Sun: 9AM-9PM
NUG – Sacramento, CA
On March 18, 2019, NUG — the rst California
brand to oversee products all the way from their all-
indoor cultivation and extraction facilities to the in-
store experience — opened their storefront in
Midtown Sacramento as part of a partnership with
Ampli ed Cannabis. “We are thrilled to make our
mark in Sacramento, which will set the stage for
four additional retail stores scheduled to open in California,” says Dr. John Oram, founder and CEO of NUG.
Based in Oakland, NUG is committed to diversity and active in the community as part of the Oakland
Cannabis Equity Program. NUG educates, trains and provides space for low-income persons with cannabis
convictions. Through OCEP, NUG is helping previously-disenfranchised people succeed, and I purchase
NUG products with con dence that money is going back into sustaining our community. “We are excited to
be a part of the neighborhood’s revitalization,” says Dr. Oram.
Rundown
57
6/5/2019 NUG: Premier Single-Source Shop | DOPE Magazine
https://dopemagazine.com/nug-sacramento-ca/2/3
The Culture
Nearly one-quarter of the urban Sacramento landscape is covered in trees, hence the city’s nickname, “City
of Trees.” Sacramentans love cannabis trees as well, and attended NUG’s hotly-anticipated grand opening
party. Thanks to proximity and single-source values, NUG is a welcome brand in what’s now also known as
“America’s Farm-to-Fork Capital.” Contemporary design and warmth greets visitors at the shop, which has
the beautiful prestige of an art gallery — tting, considering Midtown’s growing art scene. NUG’s
sponsorship of extreme sports like snowboarding and skateboarding call to the Californian sense of
adventure, as well.
The Product
Ô
58
6/5/2019 NUG: Premier Single-Source Shop | DOPE Magazine
https://dopemagazine.com/nug-sacramento-ca/3/3
NUG curates quality cannabis brands under one roof. I favor strains that taste like smoothies, and in that
vein, Strawberry Banana delivers avor and balanced effects. New yummy NUG gummies are a micro-dose of
macro fun fruit avor. While focused on being single-source, NUG carries over 300 items from various
producers on display in LED cases. Their selection includes Los Angeles Kush, Connected Cannabis Co.,
AbsoluteXtracts and Korova, to name a few. If Sactown’s heat induces thirst, pick up a High-Fi Hops from
Lagunitas Brewing Company and AbsoluteXtracts.
“We are excited to be a part of the neighborhood’s
revitalization.” – Dr. John Oram, NUG founder and CEO
59
6/5/2019 Shop ,nsights &enter Seeding 5etail - Shop ,nsights &enter
https://insights.retailenYironments.org/2019/06/05/seeding-retail/1/5
NEWS PRODUCTS PROJECTS COMMENTARY MAGAZINE
Seeding Retail
Posted On 05 Jun 2019 By : Retail Environments Staff Comment: 0 Tag: cannabis
Vertically integrated cannabis brand opens first store
NUG | Midtown, Sacramento, CA, US
size 3,500 sf
completion April 2019
Diversified cannabis company NUG has debuted its first retail location. NUG oversees its products every step of the way, from the
cultivation and extraction to the in-store experience and customer relations.
“Combining NUG’s commitment to create premier cannabis retail stores with our company mission of normalizing the cannabis
experience, the new NUG dispensary serves as a showcase for ‘best of the best cannabis’ grown and products manufactured in
§ 954-893-7300 á welcome@shopassociation.orgHomeShop! Home
60
6/5/2019 Shop ,nsights &enter Seeding 5etail - Shop ,nsights &enter
https://insights.retailenYironments.org/2019/06/05/seeding-retail/2/5
California. The dispensary functions as an oasis for adult patients and consumers alike to feel comfortable, safe and knowledgeable
before making a purchase,” says Dr. John Oram, NUG founder and CEO. “We are thrilled to make our mark in Sacramento, which will set
the stage for four additional retail stores scheduled to open in California in 2019.”
NUG purchased the building that now houses the retail space in 2017, investing $1.4 million in structural retrofits and a complete overhaul
of the exterior and interior. The contemporary, yet warm and welcoming design, fits the modern design of Midtown Sacramento, which is
experiencing revitalization.
61
62
63
64
Exhibit 6
Estimated Startup Costs
65
Exhibit 6 – Estimated Startup Costs
66
Exhibit 7
Projected Schedule of Startup Activities
67
Exhibit 7 – Projected Schedule of Startup Activities
68
Exhibit 8
Proof of Capitalization
69
Exhibit 9
Three Year Pro Forma Financials
73
Exhibit 9 – Three Year Pro Forma Financials
74
Exhibit 10
Standard Operating Procedures for Inventory Management
75
NUG
Inventory & Order Fulfillment
SOP No. 3
1
NUG.
Standard Operating Procedure for Inventory and Fulfillment
Original Publication April 2018
76
NUG
Inventory & Order Fulfillment
SOP No. 3
2
Table of Contents
Purpose ............................................................................................................................................ 3
Applicability ................................................................................................................................... 3
Quality Control ............................................................................................................................... 3
Inventory Log .................................................................................................................................. 3
Inventory Log Contents .................................................................................................................. 4
Inventory Reconciliation ................................................................................................................. 4
Preparing An Order For Transport ................................................. Error! Bookmark not defined.
77
NUG
Inventory & Order Fulfillment
SOP No. 3
3
Purpose
The purpose of this Standard Operating Procedure (SOP) is to establish uniform procedures
pertaining to the inventory and order fulfillment of cannabis and cannabis products by NUG. in
compliance with applicable state and local laws and regulations.
Applicability
The procedures set forth in this SOP are applicable to the owners, managers and employees of
NUG.
Quality Control
All new employees shall be trained on the SOP and best practices for compliance.
The designated NUG Regulatory Compliance Manager shall review business practices
in December of each year to evaluate compliance with the SOP and recommend
changes to business practices and/or revise the SOP as appropriate and necessary.
The NUG Regulatory Compliance Manager shall regularly review regulations, orders
and directives issued by the Bureau of Cannabis Control (BCC) and, as appropriate,
update and revise the SOP.
Inventory Log
An inventory log shall be maintained for each cannabis and cannabis products batch.
Section 5309(b) (unless other stated all regulatory citations in this document are to Title
16, California Code of Regulations).
The NUG employee assigned to receive and process batches shall input the required
information on a printed NUG-authorized inventory log, sign the form and provided the
form to his or her manager who shall review and verify the accuracy of the information
contained on the log.
If the information is accurate, the manager shall sign and file it in NUG master inventory
log file. If the information is inaccurate, a new inventory log shall be generated and
verified for accuracy.
78
NUG
Inventory & Order Fulfillment
SOP No. 3
4
Inventory Log Contents
The information contained in the inventory log shall include the following:
1. The name and license number of the manufacturer or cultivator who provided the
batch;
2. The name and license number of the distributer that provided the batch;
3. The date of entry into the retailer’s storage area;
4. The unique identifiers and batch number associated with the batch;
5. A description of the cannabis goods containing sufficient details to easily identify
the batch;
6. The weight of or quantity of units in the batch;
7. The best-by, sell-by, or expiration date of the batch, if any;
8. Where on the premises the batch is kept, and
9. For cultivated cannabis, the category of the cannabis, e.g. flowers, leaves, or fresh
cannabis plant.
Inventory Reconciliation
All inventories of cannabis goods shall be reconciled at least once every 14 days. Section
5309(a). The results of the inventory reconciliation shall be promptly entered into the
track and trace system and reported to the NUG head of operations and RCM.
If a discrepancy between the inventory of stock and the inventory log or track and trace
system that is outside of normal weight loss caused by moisture loss is discovered, the
NUG head of operations shall commence a full audit of the batch in which the
discrepancy was found.
79
Exhibit 11
Standard Operating Procedures for Records Retention
80
NUG
Records Retention
SOP No. 1
1
NUG.
Standard Operating Procedure for Records Retention
Original Publication April 2018
81
NUG.
Records Retention
SOP No. 1
2
Table of Contents
Purpose ....................................................................................................................................................... 3
Applicability ................................................................................................................................................ 3
Scope .......................................................................................................................................................... 3
Quality Control ........................................................................................................................................... 3
List Of Records To Be Retained ............................................................................................................... 3
Retention Of Financial And Tax Records ................................................................................................ 4
Retention Of Personnel Records .............................................................................................................. 4
Retention Of Training Records ................................................................................................................. 5
Retention Of Contracts .............................................................................................................................. 6
Retention Of Permits And Licenses ......................................................................................................... 6
Retention Of Retaining Security Records ............................................................................................... 6
Retention of Records Relating To Composting Or Destruction Of Cannabis Goods ......................... 7
Retention Of Data Or Information Entered Into The Track And Trace System .................................... 7
Retention Of Records Relating To Branding, Packaging And Labeling ............................................... 8
Retention Of Inventory Logs And Records ............................................................................................. 8
Retention Of Transportation Records ...................................................................................................... 8
Retention Of Vehicle And Trailer Ownership Records ........................................................................... 9
Retention Of Quality-Assurance Records ............................................................................................... 9
Retention Of Laboratory-Testing Records .............................................................................................. 9
Retention Of Warehouse Receipts ........................................................................................................... 9
Retention of Transactional Financial Records ........................................................................................ 9
82
3 NUG
Records Retention
SOP No. 1
Purpose
The purpose of this Standard Operating Procedure (SOP) is to establish uniform
procedures pertaining to the retention of all documents produced by NUG in conformity with
applicable state and local law and regulations.
Applicability
The procedures set forth in this SOP are applicable to the owners, managers and
employees of NUG.
Scope
Records relating to commercial cannabis activity shall be retained for seven (7) years
from the creation of the document.
Quality Control
All new employees shall be trained on the SOP and best practices for compliance.
The designated NUG Regulatory Compliance Manager shall review business
practices in December of each year to evaluate compliance with the SOP and
recommend changes to business practices and/or revise the SOP as appropriate and
necessary.
The NUG Regulatory Compliance Manager shall regularly review regulations,
orders and directives issued by the Bureau of Cannabis Control (BCC) and, as
appropriate, update and revise the SOP.
List Of Records To Be Retained
Pursuant to Title 16, California Code of Regulations, Sections 5037 and 5310, all
documents prepared or executed by the owner, employees or assignees of NUG in
connection with its licensed commercial cannabis business shall be retained including, but
not limited to, the following documents:
1. Financial records;
83
NUG.
Records Retention
SOP No. 1
4
2. Personnel records;
3. Training records;
4. Contracts with other licensees regarding commercial cannabis activity;
5. Permits and licenses;
6. Security records;
7. Records relating to the composting or destruction of cannabis goods.
8. Documentation for data or information entered into the track and trance system.
9. Records relating to branding, packaging and labeling;
10. Inventory logs and records;
11. Transportation records;
12. Vehicle and trailer ownership records;
13. Quality-assurance records;
14. Laboratory-testing records; and
15. Warehouse receipts.
Retention Of Financial And Tax Records
Retention Of Personnel Records
Personnel records include but are not limited to each employee’s full name, social
security or individual tax payer identification number, date employment begins, and
date of termination of employment if applicable.
NUG has entered into a contractual relationship ZLWK NUG ,QF to provide human
relations and personnel management services for NUG and retain all NUG personnel
records. NUG ,QF shall retain all written and electronic NUG personnel records at
NUG ,QF’s offices for the length of her/his
84
NUG.
Records Retention
SOP No. 1
5
employment at NUG and/or any company affiliated with Bloom plus a period of
seven (7) years.
Upon the employment start date the new employee shall review and complete a new
hire packet. This packet includes W-4 tax form, emergency contact information form,
new employee handbook, job application, rate agreement, and workers’ rights
handbook.
DThe new employee shall sign the appropriate forms within the new hire packet
and return the packet to her/his department manager for review.
EFollowing her/his review, the department manager shall return the completed
forms from the new hire packet to Bloom human relations staff for retention.
FBloom shall retain the complete forms from new hire packets in individual
personnel files created for each employee.
All other records pertaining to an individual employee shall be placed in the
employee’s personnel file. This includes training records, certifications, Personal
Time Off requests, physician recommendations, photocopied identification card and
drivers’ licenses, and employment contracts.
Employment records for current employees shall be stored in a filing cabinet within a
locked office.
All records pertaining to an independent contractor hired by NUG shall also retained
at NUG ,QF’s offices for the length of her/his contact at NUG and/or any company
affiliated with Bloom plus a period of seven (7) years.
Upon departure, resignation or termination of a NUG employee or independent
contractor, all personnel records relating to the individual shall be stored in a locked
storage room at NUG ,QF’s offices and retained for seven (7) years after the date of
termination.
Upon departure, resignation or termination, the company email account for the NUG
employee shall be terminated and transferred to a terminated employee email account
where the integrity of the author and dates are kept.
DThe email messages along with any attachments and shared documents shall
be retained in the NUG ,QF Google Vault for seven (7) years after the date of
termination.
Retention Of Training Records
85
NUG
Records Retention
SOP No. 1
6
Training records include but are not limited to the content/materials of the training
provided, the names of the employees that received the training, the names of the
persons who conducted the training, and the training dates.
NUG department heads shall be responsible for retaining all training records for a
period of seven (7) years in company files and on company servers.
Retention Of Contracts
Employee Contracts
DAny contracts created at the time of or during the term of employment for each
employee (employment agreement, consent forms, etc.) shall be stored in the
employee’s personnel file.
Contracts between NUG and Distributors
DContracts relating to the purchasing of third party Units from a distributor (e.g.
agreements for the continued purchase and supply of third party units) shall be
filed in the NUG ,QF’s office located under the name of the distributor the
contract is made for a period of seven (7) years.
Contracts among NUG and Dispensaries (Pertaining to pricing, repeating orders,
Unique tax deductions
DContracts pertaining to any dispensary NUG is a distributor to including other
distributors, micro distributors, medicinal retailers, and adult use retailers shall
be filed with all other paperwork related to the retailer or distributor under the
name of that entity. These files shall be kept in the locked office of the NUG
,QF financial and accounting team for a period of seven (7) years.
Retention Of Permits And Licenses
These records include all state and local authorizations issued to NUG Partners to
conduct commercial cannabis activity.
State and local authorizations issued to NUG Partners to conduct commercial
cannabis activity shall be stored in the office of the Bloom Controller until their
expiration.
Upon expiration, the physical copies shall be transferred to storage room and
retained for a period of seven (7) years.
Retention Of Retaining Security Records
86
NUG.
Records Retention
SOP No. 1
7
This includes all documents pertaining to security operations at NUG The retention
of surveillance recordings is covered under the Security SOP.
Security records shall be retained in a locked office under control of NUG department
heads for a period of seven (7) years.
Retention of Records Relating To Composting Or Destruction Of
Cannabis Goods
All cannabis waste, composting of cannabis and destruction of any cannabis shall be
recorded electronically within the track and trace system.
All records relating to cannabis waste, composting of cannabis and destruction of any
cannabis shall be retained on NUG servers for a period of seven (7) years from their
creation.
Retention Of Data Or Information Entered Into The Track And
Trace System
1. Software Used: The system used for Track and Trace is ‘NUG Track & Trace’ (v1).
2. Platform: ‘NUG Track & Trace’ is built on LAMP private server stack hosted by
AWS under a EC2 web service interface that allows configuration capacity with
minimal friction. Amazon Elastic Compute Cloud – also known as AWS – forms a
central part of Amazon.com's cloud-computing platform, Amazon Web Services.
LAMP is a group of open source software used to get web servers up and running.
The acronym stands for Linux, Apache, MySQL, and PHP.
3. Database: ‘NUG Track & Trace’ SQL’s database is mainly managed under
PhpMyAdmin, an open source portable web application written primarily in PHP
for MySQL and MariaDB.
4. Retaining Documentation of Data: ‘NUG Track & Trace’ stores all the data and
handling of data inside of the Database. The handling of information, such as the
creation, modification and deletion of it, is stored in its own Table where the Content
Type, the user, the Timestamp, the old value, the new value and the form used, is
stored dynamically and as the data is being modified.
87
8 NUG
Records Retention
SOP No. 1
Retention Of Records Relating To Branding, Packaging And
Labeling
The NUG Packaging and Labeling Manager shall retain hard copies of all final
approved designs and proofs of packages, package components and labels created for
cannabis and cannabis products in a cabinet/storage room for a period of seven (7)
years. The file for each individual package and label shall consist of
DFinal artwork proofs signed and dated for authorization of print approval;
ECorresponding vendor invoice of packaging/packaging production;
FVerified, signed and dated packaging slip for receipt of delivery, and
GSample of the final produced item.
Electronic versions and digital duplicates of final packaging and labels shall also be
retained on NUG servers for a period of seven (7) years.
Retention Of Inventory Logs And Records
All inventory intake forms shall be added into a master spreadsheet daily accessible on
NUG servers.
Once the data from the hard copy inventory intake form is transferred to a file on the
NUG server, the hard copy form shall be retained and stored in files organized by month
and year under the control of the NUG finance and accounting team for a period of seven
(7) years.
Retention Of Transportation Records
These records cover bills of lading and shipping manifests for completed transports and
for cannabis goods in transit.
All shipping manifests shall be stored under lock and key organized by dispensary in the
office of a NUG finance manager.
Shipping manifests shall be easily accessible in order to confirm delivery amounts and
reconcile invoices when needed. If product on a manifest is rejected, the invoice will be
corrected and the manifest will be flagged and filed away.
All shipping manifest shall be retained by the NUG finance and accounting team at for a
period of seven (7) years.
88
9 NUG
Records Retention
SOP No. 1
Retention Of Vehicle And Trailer Ownership Records
The head of the NUG sales department shall be responsible for maintaining and
retaining all records relating to the vehicles used for the transport of cannabis and
cannabis products including vehicle ownership, registration, and insurance
documents.
Expired documents shall be retained in files stored at NUG headquarters for a period
of seven (7) years.
Retention Of Quality-Assurance Records
1. All quality-assurance records shall be retained in electronic form on a server in a lock
room at NUG headquarters for a period of seven (7) years.
Retention Of Laboratory-Testing Records
1. All laboratory-testing records shall be retained in electronic form on a server in a lock
room at NUG headquarters a for a period of seven (7) years.
Retention Of Warehouse Receipts
The accounting and finance team at Bloom assigned to NUG shall be responsible for
maintaining and retaining all records relating to warehouse receipts.
Expired documents shall be retained in files stored at NUG headquarters for a period
of seven (7) years.
Retention of Transactional Financial Records
89
NUG.
Records Retention
SOP No. 1
10
90
Exhibit 12
Standard Operation Procedures for Security
91
NUG
Security SOP
SOP No. 4
NUG
Standard Operating Procedure for Security
Original Publication April 2018
92
NUG
Security SOP
SOP No. 4
Table of Contents
Purpose............................................................................................................................... 3
Applicability ...................................................................................................................... 3
Quality Control .................................................................................................................. 3
Limited-Access Areas ....................................................................................................... 3
Badge Requirement............................................................................................................ 3
Video Surveillance System ............................................................................................... 4
Locks And Physical Security Of Premises ....................................................................... 6
Alarm System ................................................................................................................... 6
Notification of Theft, Loss and Criminal Activity ........................................................... 6
93
Exhibit 13
Standard Operating Procedures for Waste Management
99
NUG.
Waste Management Plan [CONFIDENTIAL]
SOP No. 5
1
NUG
Standard Operating Procedures For Waste Disposal [CONFIDENTIAL]
Retail Dispensary Operations
Original Publication May 2018
100
NUG
Waste Management Plan [CONFIDENTIAL]
SOP No. 5
2
Table of Contents
Purpose ........................................................................................................................... 3
Applicability .................................................................................................................... 3
Procedures Quality Control ........................................................................................... 3
General Waste Management Provisions ...................................................................... 3
Safety And Required Equipment ......................................................................................... 4
Additional Waste Management Standards ................................................................... 5
Waste Disposal Vendors ............................................................................................... 5
101
3 NUG
Waste Management Plan [CONFIDENTIAL]
SOP No. 5
Purpose
The purpose of this Standard Operating Procedure (“SOP”) is to establish uniform procedures
pertaining to waste disposal for NUG at its Retail Cannabis Dispensary in compliance with
applicable state and local laws and regulations.
Applicability
The procedures set forth in this SOP are applicable to the owners, managers and employees
of NUG.
Procedures Quality Control
All new employees shall be trained on the SOP and best practices for compliance.
The designated NUG Regulatory Compliance Manager shall review business practices
in December of each year to evaluate compliance with the SOP and recommend
changes to business practices and/or revise the SOP as appropriate and necessary.
The NUG Regulatory Compliance Manager shall regularly review regulations, orders
and directives issued by state Cannabis regulatory agencies and, as appropriate, update
and revise the SOP.
General Waste Management Provisions
NUG shall dispose of all waste, including cannabis waste, in accordance with applicable
state and local laws and regulations. NUG shall properly evaluate waste to determine if it
should be designated a hazardous waste under section 40141 of the Public Resources
Code.
NUG shall dispose of any cannabis waste in a secured waste receptacle or secured area on
the licensed premises. A “secured waste receptacle” or “secured area” means that
physical access to the receptacle or area is restricted to the licensee, employees of the
licensee, the local agency, waste hauler franchised or contracted by local government, or
private waste hauler permitted by the local government only. Public access to the
designated receptacle or area shall be strictly prohibited.
102
NUG
Waste Management Plan [CONFIDENTIAL]
SOP No. 5
4
No cannabis product shall be disposed of in its packaging, and all cannabis products shall
be unrecognizable and unusable at the time of disposal.
Cannabis waste shall be entered into the track-and-trace system.
If a local agency, a waste hauler franchised or contracted by local government, or a
private waste hauler permitted by local government is being used to collect and process
cannabis waste, NUG shall do all of the following:
DProvide the Bureau of Cannabis Control with the name of the entity hauling the
waste;
EObtain documentation from the entity hauling the waste that indicates the date and
time of each collection of cannabis waste at the licensed premises; and
FObtain a copy of the certified weight ticket, or other documentation prepared by
the entity hauling the waste confirming receipt of the cannabis waste at one, or
more, of the following solid waste facilities:
LA manned fully permitted solid waste landfill or transformation facility;
LLA manned fully permitted composting facility or manned composting
operation;
LLLA manned fully permitted in-vessel digestion facility or manned in-vessel
digestion operation; or
LYA manned fully permitted transfer/processing facility or manned transfer/
processing operation.
If NUG is self-hauling cannabis waste to one, or more, of the solid waste facilities NUG
shall obtain for each delivery of cannabis waste by the licensee a copy of a certified
weight ticket or receipt documenting delivery from the solid waste facility. Only NUG or
its employees may transport self-hauled cannabis waste.
Safety And Required Equipment
NUG personnel involved in the disposal of waste shall comply with California requirements for
PPE: protective eye wear, gloves, dust mask. California Code of Regulations, Title 8, Section
3382.
In addition, all disposal of cannabis waste shall comply with:
1. Secured waste receptacle;
2. 24-hour video camera surveillance;
3. Properly calibrated and registered scale in accordance with California Code of
Regulations, Title 17, Division 1, Chapter 13, Section 40277; and
4. Waste receipts or chain of command documents when applicable.
103
5 NUG
Waste Management Plan [CONFIDENTIAL]
SOP No. 5
Additional Waste Management Standards
1. Properly evaluate whether the material is standard or hazardous waste under Section
40141 of the Public Resources Code.
2. Enter Cannabis waste into the track-and-trace system as required under Section 40512.
3. Cannabis waste generated by manufacturing lab will be stored in a separate waste
receptacle from any neighboring licensees.
4. Waste storage area will be clearly defined by the Manufacturing site map.
5. All Cannabis waste activities will be monitored by 24-hour surveillance camera and
stored for 90 days for viewing upon request.
Waste Disposal Vendors
Waste management services for NUG shall be provided by one or more of the
following local entities:
JD Hauling
745 Kevin Ct,
Oakland, CA 94621
Gaiaca Cannabis Waste Management Services
Undisclosed location
City of Oakland Waste Management
172 98th Ave,
Oakland, Ca
94603
104
Exhibit 14
Treez POS Operations Manual
105
All About: Sell Treez (Point of Sale)
To ensure that every customer's needs are taken care of, the Sell Treez Point of Sale
system offers a unique and intuitive way to personalize the retail experience.
Contents:
• Using the POS System
• Processing Transactions
• Checking In Customers at the POS
• Current Sale Tile
• Saved Sales
• Returns and Refunds
• Purchase Limits
106
Using the POS System
Members who have been added to the ‘Customer Queue’ from Customer Management
will populate on the order they arrived on the main screen of the POS module. From
here, you’ll be able to assign customers to yourself and help walk them through the
purchasing process.
To access the Sell Treez POS module, navigate to the Retail > Sell Treez POS.
107
Processing Transactions
Step 1: Click on the first member tile to assign them to yourself.
• Tiles will populate in chronological order of when the member was checked-in from
Patient Intake/Customer Management.
• If the member is a caregiver purchasing on behalf of their associated patients, a
blue CG symbol will be shown on their tile. Tap on the caregiver’s tile to start an order
to yourself.
• After clicking No Customer, type a name into the search bar to select a member to
begin a new order, select a customer from the queue, or click the ‘Current Sale’ tile to
view saved, draft, or recent sales.
Tip: You can change or remove the customer associated with an order at any point
during the order process.
Step 2: Select your name and log in using your personalized PIN. This will take you to
the sales screen.
NOTE: At the top of the sales screen, you will find a running timer for your current sale.
This timer begins as soon as you assign a member to yourself.
Step 3: You can quickly familiarize yourself with the customer by clicking on their name
in the top left corner of the sales screen. This will allow you to view a summary of their
profile.
• The summary includes key information about the customer (from their customer profile).
Including contact information, accrued rewards dollars, and customer notes.
• You can click ‘Edit Phone’ or ‘Edit Email’ to update this information in the customer
profile.
• Click on Favorites to display both favorite products and customer notes at the same
time. Favorite products will automatically populate based on purchase history.
108
Click View Profile to open the customer's profile in Customer Management in a new
tab.
NOTE:If the patient is associated with a caregiver and both are checked-in, a toggle will
display allowing you to select whether or not the caregiver is attached to the sale.
Step 4: From the sales screen, scan product barcodes, or manually select products
from the menu to add them to the order.
• If you don’t have access to a barcode scanner, or your retail label isn’t scanning
properly, you can quickly search the entire menu by entering product information into
the search bar to narrow down your results.
• The ‘Categories’ feature allows you to manually search your menu by product type and
is a helpful tool for making specific recommendations.
109
110
NOTE: Clicking on products will pull up information specific to that item including
attributes and lab results (if available), product sizes, flavor options etc., and the amount
you have left in live inventory (if configured).
Step 5: Select the size and quantity of each product and tap Add to Cart. This will add
the product as a line item to the current order.
• If the customer decides they want more/less of a product after it’s been added, changes
can be made to quantities and/or sizes from by clicking the + or - buttons on the left-
hand side of the line item.
NOTE: If you select a deli-style bulk flower product, you’ll need to follow additional
steps to add the product to the cart.
Step 6: Apply any additional discounts by clicking the Discount button. For increased
accountability, these can be configured to require a manager’s PIN. If an item has any
automatic discounts attached to it, this will display in the ‘Discount’ column, along with
the name and specifics about the discount.
Tip: If your shop has rewards configured as a discount, you’ll need to click the discount
pop-up to show the full details.
NOTE: In the standard discount view, some coupons will display as greyed out
depending on whether the coupon is created for a single item versus an entire cart.
Highlighting a product in the shopping cart by clicking on it will cause item based
111
discounts to become available, while entire cart discounts will be greyed out. Clicking
away from the line item will allow cart discounts to become available again.
Step 7: Once the order is complete, click Checkout. This will take you to the payment
screen.
Step 8: Select the payment method, or a combination of methods if your shop accepts
debit card, and/or has rewards points enabled.
• Cash
The first tile is reserved for exact change, while the following tiles relate to whole cash
increments. Selecting one of these will complete the sale, print the receipt and display
the change due, if any.
• Card
Select the appropriate charge option, use the keypad to enter the proper amount, then
tap Charge. Once charged, the sale will be complete, and the receipt will print.
• Rewards Dollars/Points
If your shop has rewards enabled, customers may use their accrued points to pay for
purchases. Reward accrual rates can be configured by going to Configuration >
Config Page > Discounts and Rewards.
• Treez Pay Debit
If your shop has Treez Pay enabled, click the first tile to charge the exact amount, or
Charge Custom Treez Pay Debit Amount to enter a partial amount. Then, swipe the
card on the PIN Pad and follow the prompts to complete the sale. If you're using custom
amounts, the Treez Pay PIN pad will only activate once the full amount of the ticket has
been entered across the payment method(s).
• Custom
The ‘Custom’ buttons allow you to split payment between a variety of payment methods.
• Target Total
If your shop has this feature enabled, clicking it will allow cashiers to use a customer’s
rewards dollars to turn the balance owed into an easy to transact whole dollar amount,
or an amount the customer chooses.
Tip: The current default setting is for Sell Treez to treat rewards dollars as a payment
type. To use the Target Total feature, you must have rewards dollars as a discount
enabled. To set this up, just contact us at support@treez.io!
112
Step 9: Return any change to the customer and click Done to complete the sale. This
will turn the sale into a line item on the ‘Purchased’ tab.
Checking In Customers at the POS
For shops that serve adult-use customers, you have the ability to bypass checking in
customers at a dedicated intake area and instead scan a customer’s ID directly from the
POS. To begin checking customers in from the POS terminal, ensure your POS
barcode scanners appear on our approved hardware list and are properly configured to
read 2D barcodes—some scanners may be too old to perform this function and will
need to be updated in order to do so.
NOTE: If you serve only medical patients, you’re required by law to have a dedicated
patient intake area and this configuration should not be enabled.
Step 1: To begin configuring your retail barcode scanners, open the Treez portal in a
separate browser window. Then, tap on the orange ‘Help’ tab and select Downloads &
Tools from the main menu.
• Tip: Opening the ‘Downloads & Tools’ page on your phone or another mobile device,
such as a tablet, will allow you to streamline the configuration of all POS scanners as
you’ll need to scan 2 QR barcodes with each scanner to properly configure them to
perform this function.
Step 2: From this page, open the Configure POS Scanner.png in one tab and
the Configure Intake Scanner.png in a separate tab.
113
Step 3: Proceed to scan both of these barcodes—first Configure POS Scanner,
then Configure Intake Scanner—with each of the barcode scanners found on the retail
floor.
• There will be a series of beeps that occur after each scan to let you know the
configuration has occurred. If you do not hear any beeping, scan the QR code again
before moving on.
Step 4: Once all your scanners have been configured, navigate to Configurations >
Config Page > Point of Sale > Customer Management to select how you’d like to
handle new customer sign-ups that occur at the POS.
• Returning customers can easily be checked in once their ID has been scanned, as the
system will quickly recognize their existing profile.
NOTE: Checking a customer in through Sell Treez will perform the same verification
checks (age, valid ID, etc.) that occur when a customer is checked in from Patient
Intake/Customer Management. If an issue is flagged, sales associates will be prevented
from moving forward with a customer who isn’t eligible.
Current Sale Tile
The ‘Current Sale’ tile displays how long a member has been assigned to you for a
current order. Clicking into it will reveal additional actions that you can take around
saving and retrieving orders.
• Abandon Sale: Clicking this will send the customer back into the queue and will delete
the order if started.
• Save Current Sale: Clicking this will save the sale in its entirety so it can be paid for at a
later time. If your shop does delivery or express in-store pick-up, this will allow you to
prepare the order in advance, and collect payment later.
• View Saved Sales: This is where you’ll be able to view and open all of the ‘Saved
Sales’, as well as retrieve orders placed through your online menu.
• Use the ‘Sale Statuses’ and ‘Sale Types’ filters to narrow down search results.
114
• To reopen a Saved Sale click on the appropriate order from the list or search for the
receipt number in the ‘Search’ bar. Clicking on a saved sale will open the sales screen
so you can complete an order.
• From the sales screen, you'll be met with a variety of options for continuing with the
sale:
• Edit will allow you to update the order’s contents.
• Print Label will allow you to print a customer label with previously configured
information. Displaying this additional information is a requirement in some areas.
• Print Receipt will print a receipt (if you’d like to include it in the delivery bag, for
example).
• Pay will open the payments screen and allow you to tender a payment.
• View Recent Receipts: This is where any receipts that were accidentally navigated
away from mid-transaction will live. Draft receipts, much like 'Saved Sales', reserve
inventory so they will be automatically cleared out every 90mins to release products
back into live inventory.
• View Draft Receipts: This is where you’ll be able to retrieve pending orders that were
closed before they were completed — these are not the same thing as ‘Saved Sales’.
For example, if your browser window gets closed accidentally or if you navigate away
from an order in the middle of it, this is where the receipt will be stored.
• End Shift: Clicking this will initiate End of Shift protocols, such as printing an end of
shift receipt and ending your accountability on a given register.
• Once you’ve ended your shift, you’ll be prompted with a pop-up that allows you to
reprint the EOS receipt or confirm your end of shift action.
• Selecting Reprint will cause your EOS receipt to reprint. Once printed, you’ll be
prompted once again to select either ‘Reprint’ or ‘Confirm’ just in case you encountered
an error with the initial reprint or want multiple copies for whatever reason.
• Selecting Confirm will log you out of the Treez portal.
115
NOTE: Once EOS has been ‘Confirmed’, you’ll no longer be able to reprint an additional
receipt for this shift.
• Once ‘End of Shift’ is selected, sales associates should take their drawer and end of
shift receipt to the cash handling team for counting and documentation in the ‘Close
Shift’ view.
Returns and Refunds
Follow this process to return an item and issue a refund to the customer.
Step 1: Navigate to Retail > Sell Treez POS.
Step 2: From Sell Treez, select a customer from the queue or choose 'No Customer.'
Step 3: Select your name and log in using your personalized PIN. This will take you to
the sales screen.
Step 4: If a customer has been assigned, click the Purchased tab to view the
member’s purchase history. Then, enter the receipt number in the ‘Search’ field to
locate the appropriate order.
If there's no customer assigned click on the Current Sale > View Recent
Receipts. Then, enter the receipt number in the ‘Search’ field to locate the appropriate
order.
116
Step 5: Click Refund to select the refund method.
• If refunding the entire purchase, select the correct refund action and return the proper
amount via the chosen method.
• If refunding a portion of the order, select Partial Refund. Then enter the number of
units to refund in the ‘Units to Refund’ column. Click Refund (partial) and select the
117
NOTE: Due to business regulations, Treez Pay does not support returns. Instead,
refunds can be made using another payment method such as cash, or by adding the
refund amount to the customer's Reward Dollars.
Step 6: At the bottom of the sales screen, click Edit Reason and leave a note about
why the product is being returned. This will help ensure an easier reconciliation can take
place.
118
Once a refund has been issued, it will display in red as a line item in the ‘Returns’ tab.
Step 7: The refund is now complete. A receipt will print and you can return any change
to the customer, if necessary.
You can assign a new patient to yourself by clicking Customers in Queue in the upper
right corner and tapping on the member at the top of the list.
Purchase Limits
City and state regulations limit the amount of cannabis that can be sold to both medical
and adult-use customers. To ensure you're remaining compliant, our system will show
you how far each customer is to reaching their daily purchase limit. To view purchase
limit information for the order you're working on simply click the Purchase Limits button
at the top of the cart in Sell Treez.
Sell Treez will prevent you from overselling certain types of products to different
customers — If the amount of product added to a customer's cart exceeds their daily
limits, the system will block you from checking out.
Configuring Purchase Limits
Step 1: Navigate to Configuration > Config Page > Purchase Limits > Customer
Restrictions.
• Certain states require you to have separate licenses and inventories for adult use and
medical customers. Local regulations and available licenses will determine which type
of customer's are allowed to purchase from you.
Step 2: Select the 'Type' of customer that can purchase from you (Adult, Medical, or
both), then select the appropriate age restrictions.
119
NOTE: If you want to add a minimum age that’s under the standard 18 or 21, clicking
into the medical age restriction field will allow you to enter a custom age. Once you
tap Add, the new minimum age will be saved into your configurations.
120
Exhibit 15
NUG Product Catalog
121
CBN PRODUCT LINE
PRODUCT CATALOG 2020
DECEMBER 2 2020
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM 1
CBN+THCA
AN INDUSTRY FIRST!
CBN|THCA INFUSED PRE-ROLLS (1g)
At NUG, we are always trying to push the
game forward and after two years of R&D,
our NUG LAB Geniuses have delivered yet
again. Introducing the first-ever inhaleable
CBN/THCA product line we call ‘Silk Pajamas’.
Why ‘Silk Pajamas’? Simple. This is exactly
what it feels like when you combine CBN
with THCA... a long, relaxed, ‘silky’ high.
Experience the power of CBN with our two
new and exciting products, CBN Sugar and
the CBN/THCA infused joint.
Cannabinol, or CBN, is a mildly psychoactive cannabinoid found in cannabis and is derived from tetrahydrocannabinolic acid
(THCa). Along with many other benefits, preliminary CBN research has indicated it to be an effective sleep aid prolonging sleep
time, especially when combined with THC.
INHALABLE PRODUCT LINE
CBN INFUSED
WHAT IS CBN
CBN | THCA INFUSED PRE-ROLLS (1g)CBN | THCA INFUSED SUGAR (1g)
There are times when you want to take a little puff, and there
are times when you want to get undeniably and immovably
stoned. When it’s time to take it there, Nug’s ‘Silk Pajamas’
Pre-Roll is designed to get you where you’re going. Clear
your schedule.
To craft this silky concentrate, we’ve combined the mouth-
coating flavors of terp sauce from our top flower strains with
our THCA/CBN isolate. We have created a dab that is deeply
flavorful, ridiculously strong, and undeniably relaxing.
Relaxation has never been so aggressive.
CBN SUGARCBN PRE-ROLL
122
BULK DEALS ALWAYS AVAILABLE!
CBN PRODUCT LINE
PRODUCT CATALOG 2020
CBN|THCA INFUSED SUGAR (1g)
[ Kush Mintz x Alien Cookies ][ Chem’s Sister x Sour Dubb x Choc. Diesel ]
CBN SUGAR
ALL NUG PRODUCTS ARE DISTRIBUTED BY
[ Grn Ribbon x Gr.daddy Purple x Tahoe Alien ]
BCC LICENSE #C11-0000150-LIC NUG.COM 2
[ Chem’s Sister x Sour Dubb x Choc. Diesel ]
GORILLA GLUE #4
CBN: 27-28%
THC: 41-44%
$28.00 ASK US*
PRICE QTY DEAL
CBN+THCA
STRAWBERRY FRUIT PEBBLES
CBN: 11%
THC: 29%
KMAC
CBN: 9%
THC: 22%
$12.00 ASK US*
PRICE
$12.00 ASK US*
QTY DEAL
GORILLA GLUE #4
PRICE
CBN: 8%
QTY DEAL
THC: 25%
$12.00 ASK US*
PRICE QTY DEAL
CBN|THCA INFUSED PRE-ROLLS (1g)
CBN PRE-ROLL
123
LIVE RESIN VAPE CARTS
PRODUCT CATALOG 2020
The NUG Live Resin vape line is crafted
from premium flower frozen at the time
of harvest. We then use our proprietary
extraction methods to capture the full
spectrum of naturally-occurring active
compounds and preserve the pure flavors,
aromas and effects of the live resin extract.
To put it simply... we have created the most
accurate representation of the cannabis
plant in a vape cart. PERIOD.
THE MOST
ACCURATE
REPRESENTATION
OF THE
THE CANNABIS
PLANT IN A
VAPE CART
LIVE RESIN VAPE CART (1g)
NUG VAPE
NUG SETS THE BAR
UNPARALLELED TERPENES/UNPARALLELED TASTE.
100% PURE LIVE RESIN
UNRIVALED TERPENE PRESERVATION
OPTIMAL ENTOURAGE EFFECT
BEST IN CLASS HARDWARE
ADDITIVE & DISTILLATE FREE
EXCLUSIVE TECHNOLOGY
POTENT & ACCURATE
ADDITIVE & DISTILLATE FREE
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM 3
PRODUCT CATALOG 2020
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
*QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY | UP TO 3$ OFF PER VAPE POSSIBLE. *$20.00 APPLICABLE ONLY IF THE ACCOUNT IS CARRYING 3 OR MORE NUG CARTS AT A TIME.(25 A CASE)
APPLE JACK
THC: 80%
[ Jack Herer x White Widdow ]
ASK US!*ASK US!*$28.00 $28.00
This potent combination embodies the
cognitively stimulating clarity of Jack
Herer with a relaxing and euphoric body
buzz that allows you to stay creative
and functional. As the name suggests,
Apple Jack’s flavor is boasting with
freshly sliced apples straight from the
Orchard perfectly balanced with notes
of sweet earthiness.
AMBROSIA
“Food of the Gods”. To create this
heavenly masterpiece our NUG Lab pros
blended the White Strawberry, Mandarin
Cookies, Grape Head and Hells Bells
strains. A mixture of creamy and sweet
citrus notes with refreshing flavors of
strawberries that hit both mind and
body with a powerful sense of energy
and motivation.
THC: 69-77%
[Man Cookies x White Straw x Grape hd x Lemon Tr]
QTY DEAL QTY DEALPRICEPRICE
ASK US!*$28.00
QTY DEALPRICE
LGND OG x WTRML ZKITTLES
Our newest flavor blends together
notes of candy like fruit together with
smooth notes of earthy gas for a flavor
profile one has to experience to fully
appreciate. Legend OG’s powerful
sedating effects are amplified by
Watermelon Zkittlez’s deep relaxation
that can help with issues of anxiety,
depression and insomnia.
THC 74%
[ Legend OG x Watermelon Zkittlez ]
ASK US!*$28.00
QTY DEALPRICE
FORBIDDEN FRUIT X EVE
We are excited to introduce our
first CBD | THC live resin vape cart.
Created by combining one of the
most delicious strains on the market,
Forbidden Fruit with the CBD rich
strain, EVE. Forbidden Fruit’s punch
of fruity taste is paired with the
power of CBD making it one of the
tastiest ways of providing relief.
THC|CBD 27 | 25%
[ Forbidden Fruit x EVE ]
ASK US!*$28.00
QTY DEALPRICE
ICE CREAM CAKE
Creamy sweet vanilla flavors are
accented with cheesy and slight nutty
undertones that will excite your flavor
palette and satisfy your sweet tooth.
Ice Cream Cake strain’s dominant
terpene, Limonene will not only help
you overcome stress, fight depression
and anxiety, it has also shown to have
anti-bacterial properties.
THC: 74-79%
[ Wedding Cake x Gelato #33 ]
ASK US!*$28.00
SHARK SHOCK
The infamous White Widow
crossed with the one Skunk
#1 creates a sour fruity taste
a skunk aroma with earthy
and woody undertones. Shark
Shock’s body numbing high will
relieve your body of aches and
pains without an overwhelming
sensation of couch lock.
THC: 81%
[ White Widow x Skunk #1 ]
QTY DEALPRICE
ASK US*$28.00
CHERNOBYL
Chernobyl live resin floods
the senses from the moment
you open the jar. From its
bright, golden hue to its sharp
lime-and-jasmine nose,
Chernobyl is anything but
subtle. And that goes double
for its effects, powerful and
intensly cerebral.
THC: 75-82%
[ Bld Work x Jack the Ripper ]
QTY DEALPRICE
BLUE STEEL
ASK US!*$28.00
Don’t spite Blue Steel for its
enviably delectable terpene
profile. It’s our fault for curating
it so fantastically. Lush fruit &
spice from Cherry AK meld with
Blu-Z Girls sweet, tropical notes
for a sumptuously dank floral
bouquet with strong overtones
of lavender and honeysuckle.
THC: 70-82%
[ Cherry AK x Blue Z Girls ]
QTY DEALPRICE
STRAWNANA
THC: 79-87%
[ Strawberry x Banana ]
ASK US!*$28.00
Living up to it its name, SB’s
taste and smell is full of tropical
strawberries with a distinct
banana after-taste. Dont be fooled
Strawberry Banana is as heavy a
hitter as any, boasting a deeply-
relaxing but euphoric buzz that
makes it a favorite for unwinding
without being immobilized.
QTY DEALPRICE
NEW FLAVOR!
4
LIVE RESIN VAPE CARTS
LIVE RESIN VAPE CART (1g)
NUG VAPE
125
NUG POPS
Our freezer-optional pops lounge comfortably at the
intersection of classic summer fun and boundary-pushing
cannabis technology, with a healthy squeeze of fruit for
good measure. Made from water and fruit pureé base,
our pops are infused with 10mg each of CBD and THC in a
fast-onset nano-encapsulated formula. Enjoy frozen while
you’re poolside, mixed in your favorite drink, or straight-up;
however you do it you’re sure to catch the vibe quick.
FRUIT PUREÉ TREAT 20 MG THC | CBD
FRUIT PUREE TREAT 10MG THC | 10 MG CBD
NUG Pops
THE FLAVORS
FAST
ONSET
COMPLETE
ABSORPTION
ALL
NATURAL
LONG
SHELF-LIFE
EASILY
MIXABLE
10 SERVINGS PER BOX (10MG THC & 10MG CBD PER SERVING)
FLAVOR
FLAVOR
WATERMELON LEMONAIDE*10MG 10MG $4.00
ASK US**
THC
THC
EFFECT
EFFECT
CBD
CBD
PRICE
PRICE
QTY DEAL
QTY DEAL
*TOTAL 20MG OF THC & 20MG OF CBD PER POUCH **100MG OF THC & 100MG OF CBD PER BOX ***QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY | UP TO 1$ OFF PER POUCH
NUG Pops 2 Packs Pouch
NUG Pops 2 Packs Pouch
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
BULK DEALS ALWAYS AVAILABLE!
PRODUCT CATALOG 2020
BLACKBERRY PINEAPPLE*10MG 10MG $4.00
ASK US**
ASK US**RASPBERRY POMEGRANATE*10MG 10MG $4.00
PRICKLY PEAR & KEY LIME*10MG 10MG $4.00
ASK US**
ORIGINAL ASSORTED**10MG 10MG $15.00
ASK US**
5126
CALORIES
PER SERVING
MG OF THC
PER SERVING
MG OF THC
PER BAR20-30 10 100
CHOCOLATE
Our multiple-award winning NUG Bar is now
available an convenient 10MG THC serving size! Our
NUG Bars are infused with pure THC distillate letting
you taste the quality ingredients without that ‘weedy’
flavor. This means the only thing you experience is
bold, sophisticated award-winning chocolate taste
in every bite. Conveniently broken into 10 sqaures of
10MG THC each, NUG bars are easy to dose, tasty to
eat, and satisfy your sweet tooth!
CHOCOLATE BAR 100MG THC
10 SERV PER BAR (10MG THC PER SERV)
NEW NUG BAR
THE FLAVORS
NUG’S NEW DOSAGE BARS
COOKIES & CREAM SALTED ALMOND DARK SUGAR FREE DARK MILK CHOCOLATE
NEW SERVING SIZE!
Infused with THC distillate, the only you
taste is the quality ingredients without
the ‘weedy’ flavor. Instead, you get
the benefits of THC with the decadent
sweetness of white chocolate and
delicious crumbled chocolate cookie
bits which create an ultra-smooth
version of the classic treat.
The Salted Almond Dark chocolate is
back and now in a convenient 10mg
serving size! Rich fairtrade dark
chocolate blended with crunchy, fire
roasted sea salt almonds. Infused
with pure THC distillate, letting you
taste the quality ingredients without
the ‘weedy’ flavor.
The newest additional to our
chocolate line up! The Sugar Free
Dark Chocolate features a deep,
complex palate of sugar-free dark
chocolate with fudge and vanilla
undertones. All of the delicious taste
of chocolate satisfying your sweet
tooth without the guilt of sugar.
Infused with pure THC distillate, letting
you taste the quality ingredients without
that ‘weedy’ flavor. Instead, you get the
benefits of THC with the creamy caramel
undertones and silky-smooth finish of fair-
trade milk chocolate. Conveniently broken
into squares, this bar is easy to dose, tasty
to eat, and satisfy you sweet tooth.
SERV: 10MG THC SERV: 10MG THC SERV: 10MG THC SERV: 10MG THC
TOTAL: 100MG THC TOTAL: 100MG THC TOTAL: 100MG THC TOTAL: 100MG THC
$9.00 $8.00 $8.00 $8.00ASK US*ASK US*ASK US*ASK US*
PRICE PRICE PRICE PRICEQTY DEAL QTY DEAL QTY DEAL QTY DEAL
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
*QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY | UP TO 1$ OFF PER CHOCOLATE POSSIBLE
PRODUCT CATALOG 2020
6127
Our multiple-award winning NUG Bar is crafted
with our incredibly smooth chocolate and
paired with own 100% Cannabis Distillate for no
detectable cannabis after-taste. This means the
only thing you experience is bold, sophisticated
award-winning chocolate taste in every bite.
From Vegan options to our newest additions like
the Matcha Bar with CBD, our flavor line will
surely please even the most picky sweet tooth.
CHOCOLATE BAR 100MG THC | CBD*
16 SERV PER BAR (6.25MG THC PER SERV)
NUG Bar
THE FLAVORS
NUG’S AWARD WINNING CHOCOLATE (9 MAJOR AWARDS SINCE 2018)
*Calories slightly vary with different flavors
**CBD only available in the Matcha Bar
SERV: 6.25 MG THC
TOTAL: 100 MG THC
$9.00 ASK US*
PRICE QTY DEAL
MOCHA CRUNCH
Our most awarded bar to date. Organic
Coffee beans are paired with our
devilishly smooth milk chocolate to
create an unforgettable combination
of crunchy and smooth textures that is
nothing short of mouth-watering.
SERV: 6.25 MG THC
TOTAL: 100 MG THC
$9.00 ASK US*
PRICE QTY DEAL
MILK CHOCOLATE
With caramel undertones and a silky
smooth finish, this enticing edible will
satisfy your sweet tooth with its heavenly
bliss. Multiple award winner including
2ND Place BEST EDIBLE Cannabis High
Times 2018.
SERV: 6.25 MG THC
TOTAL: 100 MG THC
$9.00 ASK US*
PRICE QTY DEAL
DARK CHOCOLATE
Our delicious Vegan dark chocolate bar
elevates your taste buds with its simplicity.
With a rich and fruity 66% cacao, this
infused chocolate blends seamlessly with
our own 100% Cannabis Distillate for the
authentic dark chocolate taste you love.
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
*QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY | UP TO 1$ OFF PER CHOCOLATE POSSIBLE
PRODUCT CATALOG 2020
CALORIES
PER SERVING*
MG OF THC
PER SERVING
MG OF THC
PER BAR
MG OF CBD
PER BAR**
20
6.25
100
100
7
CHOCOLATE
128
ICE CREAM CAKE DMNDS
Creamy sweet vanilla flavors are
accented with a slightly cheesy
undertone that will excite your flavor
palette and satisfy your sweet tooth.
Ice Cream Cake strain’s dominant
terpene, Limonene will not only help
you overcome stress, fight depression
and anxiety, it has also shown to have
anti-bacterial properties.
THC: 80%THC: 71%
[ Cheese Cake x Dream Cake ]
SHARK SHOCK DMNDS
These chunky diamonds are a cross
between the infamous White Widow and
Skunk #1. Sour fruity taste, a skunky
aroma with slight earthy undertones
are followed by a body numbing
high will relieve your body of aches
and pains without an overwhelming
sensation of couch lock... Leaving
you functional, happy and pain free.
THC: 82%
[ White Widow x Skunk #1 ]
FEATURED STRAINS
FEATURED LIVE RESIN & DIAMONDS
Produced by our state-of-the-art NUG LAB
extraction facility in Oakland, California.
Flower selected for the Premium line
is always fresh frozen to preserve
flavonoids and terpenes that you’ll miss
out on elsewhere. Our NUG Lab pro’s
have perfected our proprietary extraction
process to preserve the most amount of
terpenes possible and deliver the ultimate
full-body entourage effect.
PREMIUM LIVE RESIN (1g)
OVER 10 MAJOR
INDUSTRY
AWARDS SINCE
2018
LIVE RESIN
A beautiful and painstakingly-
selected OG varietal, this extract
captures the terps at their freshest,
with lemon, pine and earthy
funk bursting out of the jar. This
scrumptious terp profile delivers
a spacey, expansive high that more
experienced dabbers will find to be a
relatively functional anxiety reliever
[ OG Kush Pheno ]
ERO KUSH LIVE RESIN
8ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
PRODUCT CATALOG 2020
LIVE RESIN & DIAMONDS
129
STRAIN
STRAIN
STRAIN
THC
THC
THC
PRICE
PRICE
PRICE
PRICE
PRICE
NUG LIVE RESIN
NUG DIAMONDS
NUG TOPPERS
LIVE RESIN & DIAMONDS
NUG LIVE RESIN (1g)
NUG DIAMONDS (1g)
NUG THCa FROST (1g)
9ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
PRODUCT CATALOG 2020
*QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY
UP TO 3$ OFF DIAMONDS POSSIBLE
NUG FROST
99.9% CANNABINOIDS
APPLE JACK 70%$16.00
CHERNOBYL 66-67%$16.00
ASK US*RED CONGO 72%$28.00
ASK US*ICE CREAM CAKE 80%$28.00
ASK US*THCa FROST 99% $28.00
ASK US*LEMON CAKE 68%$28.00
DAIRY QUEEN 72%$16.00
DAYDREAMER 69%$16.00
ERO KUSH 71%$16.00
EFFECT
EFFECT
EFFECT
130
Our all-flower NUG Rolls are always rolled with the highest
quality, single-source flower grown in Oakland, CA. An eighth
of flower is rolled into 6 perfect joints all together in an easy
to carry water resistant pack. Easily identify the effect and
the strain you are after by using our DNA identifier; Daytime,
Anytime and/or Night Time.
ALL FLOWER 6-PACK (3.5g)
FULL 8TH NUG ROLLS
THCa DIAMOND INFUSED PRE-ROLL 30-50% (1g)
1ST PLACE WINNER INFUSED PRE-ROLL (2019)
What makes this award-winning product special is a combination of
advanced techniques and a simple dedication to outstanding quality. The
base of each joint is just under a gram of bud from our expertly-cultivated
indoor gardens. This delivers an intoxicating compliment of terpenes
and the unique entourage effects of the consumer’s chosen strain.
To this, we add pulverized THCa diamonds. Grown in our lab, these represent
the purest form of this sought-after cannabinoid available to the market.
Finishing the gram with this special ingredient kicks each pre-rolls potency
into overdrive. An extra punch of THC keeps the intensity at a maximum.
FULL 8TH
OF FLOWER IN
EVERY 6-PACK
10
THE DIAMOND PRE-ROLL
PRE-ROLLS
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
PRODUCT CATALOG 2020
131
STRAIN
PREMIUM JACK 15-20%$15.00
STRW FR PBLS 33% $10.00 ASK US*
SupREEM JACK 35% $10.00 ASK US*
THCEFFECT
THCEFFECT
PRICE
PRICE PRICE
ALL FLOWER PRE-ROLLS
THCa DIAMOND-INFUSED
STRAIN
BANANA CREAM 23% $10.00 ASK US
TRUE OG 21% $10.00 ASK US
THCSTRAIN PRICE QTY PRICE
CHURROS
NUG FLOWER EIGHTHS (3.5g)
THCA DIAMOND INFUSED (1g)
11
GG4 41% $10.00 ASK US*
SupREEM JACK 16% $15.00
BLUEDREAM 17% $15.00
CHERRY GORRILLA 44% $10.00 ASK US*
PREMIUM JACK 33-34% $10.00 ASK US*
WTRMLN ZKTLLZ 14.9% $15.00
RUNTZ
GG4
19%
20.9%
$15.00
$15.00
K MAC 33% $10.00 ASK US*
NUG & ORIGINAL HIGHNESS COLLABORATION JOINT
*QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY
UP TO 1$ OFF 6 PACKS
UP TO 2$ OFF DIAMOND INFUSED
**LOW STOCK
ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM
PRE-ROLLS
PRODUCT CATALOG 2020
132
$20.00 $20.00 $20.00ASK US*ASK US*ASK US*
PRICE PRICE PRICEQTY DEAL QTY DEAL QTY DEAL
FEATURED STRAINS
FLOWER
NUG’S CURRENTLY FEATURED STRAINS
PREMIUM JACK
BEST SATIVA 2012
Grown in our state-of-the-art indoor
cultivation facility in Oakland, California.
Our team of cultivation experts is always
closely monitoring and calibrating all
stages of the plant’s life cycle. We do
this to ensure that cultivation conditions
are optimal for consistently delivering
highest quality flower possible.
NUG EIGHTHS (3.5g)
FLOWER
PRODUCT CATALOG 2020
KMAC
25
[ Kushmintz x Alien Cookies ]
KMAC’s beautiful buds are covered with
bright amber hairs and are wrapped in a
shiny suit of glistening trichomes. Sweet
cookie and mint flavor notes are paired
with hints of earthy jet fuel to create a
combination unlike anything else. With
its stellar pedigree, KMAC’s high does not
disappoint, combining a permeating body
relaxation with a rush of intense euphoria.
THC%
GG4
23-26
[ Sr DSL x Sour Dubb x Chem’s Sis x Choc DSL ]
A major elaboration on the Chemdog line,
GG4 delivers on nasty fuel-and-mustard
aromas, balanced with an unmistakable
chocolaty undercurrent. With densely-
frosted buds, GG4 is a serious resin
producer, regularly hitting high potency
marks and producing huge yields of terpy
extracts, GG4 has rapidly secured itself a
place in cannabis history.
THC%
PREMIUM JACK
18-22
[ Northern Lights #5 x Skunk x Haze ]
WINNER: Best Sativa High Times Cannabis
Cup 2012. PJ’s sticky calyxes are
ultra-dense with trichomes reeking of
citrus, funk and that nosehair-curling
effervescence that Jack-lovers treasure.
Packed with get-up-and-go, Premium
Jack embodies all those wonderful
qualities about the cannabis plant that
lead so many to make it their creative fuel.
THC%
*QUANTITY DEALS AVAILABLE WITH C.O.D. ONLY
12ALL NUG PRODUCTS ARE DISTRIBUTED BYBCC LICENSE #C11-0000150-LIC NUG.COM 133
Exhibit 16
NUG Retail Employee Handbook
134
NUG DISPENSARY EMPLOYEE HANDBOOK
February 2019
135
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Table of Contents
1. INTRODUCTION TO HANDBOOK ....................................................................................................... 6
2. OUR COMPANY AND OUR VALUES ................................................................................................... 7
3. EQUAL EMPLOYMENT OPPORTUNITY POLICY .................................................................................. 8
4. EMPLOYMENT AT WILL ..................................................................................................................... 8
5. PROOF OF RIGHT TO WORK .............................................................................................................. 8
6. INTRODUCTORY PERIOD ................................................................................................................... 9
7. EMPLOYEE CLASSIFICATIONS ............................................................................................................ 9
7.1. Probationary Employees ................................................................................................................. 9
7.2. Full-Time Employees........................................................................................................................ 9
7.3. Part-Time Employees ..................................................................................................................... 10
8. WORK SCHEDULE, REST PERIODS AND MEALS ................................................................................ 10
8.1. Work Hours ...................................................................................................................................... 10
8.2. Workweek ......................................................................................................................................... 10
8.3. Work Shifts ...................................................................................................................................... 10
8.4. Day of Rest ....................................................................................................................................... 10
8.5. Rest Periods .................................................................................................................................... 10
8.6. Meal Periods .................................................................................................................................... 11
8.7. Meal And Rest Periods Are Encouraged .................................................................................... 11
8.8. Makeup Time.................................................................................................................................... 11
8.9. Reporting Time Pay ........................................................................................................................ 11
9. OVERTIME AND HOLIDAY PAY ........................................................................................................ 12
9.1. Overtime Rates of Pay ................................................................................................................... 12
9.2. Overtime Computation................................................................................................................... 12
9.3. Pre-Authorization Required .......................................................................................................... 12
10. PAYMENT OF WAGES .................................................................................................................. 13
10.1. Regular Pay Days ....................................................................................................................... 13
10.2. Payment on Resignation, Termination, Or Completion Of Assignment .......................... 13
10.3. Pay Advances .............................................................................................................................. 13
11. HOLIDAYS AND VACATION PAY .................................................................................................. 13
11.1. Contract Holidays ....................................................................................................................... 14
11.2. Contract Holiday Pay ................................................................................................................. 14
11.3. Paid Vacation Days .................................................................................................................... 14
12. PAID TIME OFF ............................................................................................................................ 14
12.1. Eligibility....................................................................................................................................... 15
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12.2. Use................................................................................................................................................. 15
12.3. Requesting PTO .......................................................................................................................... 15
12.4. Rate Of Earning PTO .................................................................................................................. 15
12.5. Cap ................................................................................................................................................ 16
12.6. Carryover ..................................................................................................................................... 16
12.7. Calculating And Paying PTO .................................................................................................... 16
12.8. Advance ........................................................................................................................................ 16
12.9. Accrual During Leave Of Absence .......................................................................................... 16
12.10. Payout ........................................................................................................................................... 16
13. EMPLOYEE BENEFITS ................................................................................................................... 17
14. ACCOMODATION FOR LACTATING EMPLOYEES .......................................................................... 17
15. LEAVES OF ABSENCE ................................................................................................................... 17
15.1. California Pregnancy Disability Leave ................................................................................... 18
15.1.1. Eligibility....................................................................................................................................... 18
15.1.2. “Disabled By Pregnancy” Defined .......................................................................................... 18
15.1.3. Relation To PTO .......................................................................................................................... 18
15.1.4. PDL Effect On Benefits .............................................................................................................. 19
15.1.5. Procedure For Requesting PDL ............................................................................................... 19
15.1.6. Return To Work Certification.................................................................................................... 19
15.1.7. Right To Reinstatement ............................................................................................................. 20
15.2. California Parental Leave Law ................................................................................................. 20
15.2.1. Eligibility....................................................................................................................................... 20
15.2.2. Qualifying Reasons .................................................................................................................... 20
15.2.3. Relation To PDL .......................................................................................................................... 20
15.2.4. Relation To PTO .......................................................................................................................... 20
15.2.5. Parental Leave Effect On Benefits .......................................................................................... 20
15.2.6. Right To Reinstatement ............................................................................................................. 21
15.3. Bereavement Leave .................................................................................................................... 21
15.4. Disability And Other Leave ....................................................................................................... 21
16. OPEN DOOR ................................................................................................................................ 22
17. INTERNAL COMPLAINT REVIEW PROCEDURE.............................................................................. 22
17.1. Purpose And Scope ................................................................................................................... 22
17.2. Procedure ..................................................................................................................................... 23
18. HARASSMENT, DISCRIMINATION AND RETALIATION PREVENTION POLICY ................................ 24
18.1. Summary ...................................................................................................................................... 24
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18.2. Harassment Prevention ............................................................................................................. 25
18.3. Non-Discrimination .................................................................................................................... 26
18.4. Anti-Retaliation ........................................................................................................................... 26
18.5. Reasonable Accommodation ................................................................................................... 26
18.6. Complaint Process ..................................................................................................................... 27
19. TERMINATION, DISCIPLINE AND RULES OF CONDUCT ................................................................ 28
19.1. Termination .................................................................................................................................. 28
19.1.1. Voluntary Termination ............................................................................................................... 28
19.1.2. Involuntary Termination ............................................................................................................ 28
19.1.3. Termination Due To Adverse Economic Conditions ........................................................... 28
19.2. Discipline And Rules Of Conduct ............................................................................................ 28
19.2.1. Job Performance ........................................................................................................................ 29
19.2.2. Misconduct .................................................................................................................................. 29
19.2.3. Attendance ................................................................................................................................... 31
19.2.4. Discipline Procedure.................................................................................................................. 31
19.3. Employment At Will And No Severance Pay ......................................................................... 31
20. PREVENTION OF BULLYING BEHAVIOR AND WORKPLACE VIOLENCE.......................................... 31
20.1. Policy ............................................................................................................................................ 31
20.2. Bullying Behavior Defined ........................................................................................................ 32
20.3. Workplace Violence Defined .................................................................................................... 32
20.4. Reporting...................................................................................................................................... 32
20.5. Investigation ................................................................................................................................ 32
20.6. Corrective Action And Discipline ............................................................................................ 33
21. COMPANY PROPERTY; CONFIDENTIAL AND PERSONAL IDENTIFICATION INFORMATION........... 33
21.1. Security Of Company Property ................................................................................................ 33
21.2. Confidential Information Defined ............................................................................................ 33
21.3. Personal Identification Information Defined ......................................................................... 33
21.4. Security Of Confidential And Personal Identification Information.................................... 33
21.5. Obligations On Termination ..................................................................................................... 34
22. TECHNOLOGY USE AND SECURITY ............................................................................................... 34
22.1. Technology Resources Definition ........................................................................................... 34
22.2. Authorization ............................................................................................................................... 34
22.3. Use................................................................................................................................................. 35
22.4. Improper Use ............................................................................................................................... 35
22.4.1. Prohibition Against Harassing, Discriminatory And Defamatory Use ............................. 35
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22.4.2. Prohibition Against Violating Copyrights .............................................................................. 36
22.4.3. Other Prohibited Use ................................................................................................................. 36
22.5. Company Access To Technology Resources ....................................................................... 36
22.5.1. No Reasonable Expectation Of Privacy ................................................................................. 36
22.5.2. Passwords ................................................................................................................................... 36
22.5.3. Data Collection ............................................................................................................................ 37
22.5.4. Deleted Information .................................................................................................................... 37
22.6. Internet Use ................................................................................................................................. 38
22.7. Online Monitoring ....................................................................................................................... 38
22.8. Software Use ............................................................................................................................... 38
22.9. Electronic Mail Guidelines ........................................................................................................ 38
23. SOCIAL MEDIA POLICY ................................................................................................................ 39
23.1. Definition ...................................................................................................................................... 39
23.2. Restriction On Social Media At Workplace............................................................................ 39
23.3. Employee Responsibility For Social Media Use Outside The Workplace ....................... 40
23.4. Maintain Professionalism And Respect Whether Or Not At Work .................................... 40
24. DRESS AND GROOMING STANDARDS ......................................................................................... 40
25. EMPLOYEE IDENTIFICATION BADGES .......................................................................................... 41
26. DRUG, ALCOHOL AND SMOKING POLICY .................................................................................... 42
27. MOBILE DEVICE USE WHILE OPERATING A VEHICLE .................................................................... 43
28. INSPECTION OF PREMISES AND USE OF SURVEILLANCE CAMERAS ............................................. 43
29. ARBITRATION POLICY .................................................................................................................. 43
30. ACKNOWLEDGEMENT OF RECEIPT OF HANDBOOK ..................................................................... 44
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1. INTRODUCTION TO HANDBOOK
This handbook is for employees at NUG, Inc., branded dispensaries including Community
Health Solutions in Sacramento (from here after referred to as the “Company”). It describes
many the basic terms and conditions of employment with the Company. Employees are
expected to read this handbook carefully, and to know and understand its contents.
The Company reserves the right to interpret the provisions of this handbook. For this reason,
employees should check with their Supervisor to obtain information regarding employment
guidelines, practices, policies, or procedures specific to their position.
Employees should not interpret anything in this handbook as creating a contract or
guarantee of continued employment. In addition, this handbook is not intended to cover all
possible situations that may arise in your employment relationship with the Company.
This handbook is the property of the Company, and it is intended for the personal use and
reference by employees of the Company.
Handbook Revisions
The Company reserves the right to make changes to this handbook and to any employment
policy, practice, work rule, or benefit, at any time without prior notice. Employees are
responsible for knowing about and understanding those changes once they have been
disseminated.
Employees’ at-will employment can only be changed as stated in the separate Employment
At Will Policy contained in this handbook. Any other change to this handbook or any
employment policy, practice, work rule, or benefit is effective only if it is in writing and signed
by a director or officer of the Company. Except as otherwise provided in this handbook, no
one has the authority to make any promise or commitment contrary to what is in this
handbook.
This handbook replaces all earlier handbooks and supersedes all prior policies, practices,
and procedures.
Handbook Acknowledgement
All new employees must sign the acknowledgement form at the back of this handbook and
return it to their supervisor or manager.
Contact Information
If you have any question in regards to your employment and/or any policy or procedure
contained with this handbook, please contact your store manager. If your store manager
can’t help you, please contact Sandy Truitt, Dispensary Operations Manager, NUG, Inc. at
sandy1@nug.com.
New Employee Information Packet
This handbook is one of several documents each new employee will be provided and
required to review. Other documents include:
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Healthcare Benefits Summary;
Confidential Information Agreement;
Arbitration Agreement;
Tax withholding form;
Form I-9 (Proof of Right To Work In U.S.); and
Required employee notices.
2. OUR COMPANY AND OUR VALUES
Welcome! You are an important member of our team. We hope that you will find your
position rewarding and challenging.
Our company is affiliated with the NUG family of companies that cultivate and manufacture
the award-winning NUG-brand of cannabis and cannabis products. NUG, Inc., provides
human accounting, legal and human resources support to our Company.
NUG’s mission is to normalize the cannabis experience for adult patients and consumers.
Cannabis should become a part of their lives as they choose without any shame or
embarrassment.
NUG believes in the scientifically verified healing properties of cannabis and providing
patients with as many therapy options as possible. NUG also supports the responsible adult-
use (age 21+) of cannabis for enjoyment.
NUG is founded upon the goals of:
• Producing and selling the highest quality, consciously grown and rigorously-tested
cannabis and cannabis products;
• Providing each customer that visits a NUG dispensary superior service in a state-of-
the-art facility where she or he feels comfortable and respected as a valued
member of a caring community;
• Actively participating in cannabis equity programs and assisting our equity partners
in developing commercially successful and thriving companies;
• Constant innovation and development of new cannabis strains and cannabis
products;
• Operating ethically, transparently and in strict compliance with applicable California
law and regulations; and
• Valuing its employees and understanding that their well-being is critical to the
company’s success.
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3. EQUAL EMPLOYMENT OPPORTUNITY POLICY
It is the Company’s policy to provide equal employment opportunity for all applicants and
employees. The Company does not unlawfully discriminate on the basis of race, color,
religion, religious creed (including religious dress and religious grooming), sex (including
pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions),
gender, gender identity (including transgender identity and transitioning), gender expression
and sex stereotyping, national origin, perceived national origin, ancestry, citizenship, age,
physical or mental disability, legally protected medical condition or information (including
genetic information), family care or medical leave status, military caregiver status, military
status, veteran status, marital status, domestic partner status, sexual orientation, status as a
victim of domestic violence, sexual assault or stalking, enrollment in a public assistance
program, engaging in protected communications regarding employee wages, requesting a
reasonable accommodation on the basis of disability or bona fide religious belief or practice,
or any other basis protected by local, state, or federal laws.
Consistent with the law, the Company also makes reasonable accommodations for disabled
applicants and employees; for pregnant employees who request an accommodation, for
pregnancy, childbirth, or related medical conditions; for employees who are victims of
domestic violence, sexual assault, or stalking; and for applicants and employees based on
their religious beliefs and practices.
The Company prohibits sexual harassment and the harassment of any individual on any of
the other bases listed above. For information about the types of conduct that constitute
impermissible harassment and the Company’s internal procedures for addressing complaints
of harassment, please refer to the Company’s Policy Against Harassment and Discrimination
within the handbook.
This policy applies to all areas of employment including recruitment, hiring, training,
promotion, compensation, benefits, transfer, disciplinary action, and social and recreational
programs. It is the responsibility of every manager and employee to conscientiously follow
this policy.
4. EMPLOYMENT AT WILL
All employment at the Company is “at-will.” This means that both employees and the
Company have the right to terminate employment at any time, with or without advance
notice, and with or without cause.
No one other than an officer of the Company has the authority to alter this arrangement, to
enter into an agreement for employment for a specified period of time, or to make any
agreement contrary to this at-will status. Any such agreement must be in writing, must be
signed by an officer of the Company, and must express a clear and unambiguous intent to
alter the at-will nature of the employment relationship.
5. PROOF OF RIGHT TO WORK
Under federal law, all new employees must produce original documentation establishing their
identity and right to work in the United States, and complete Form I-9, swearing that they
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have a right to work in the United States. The Company will provide Form I-9 to all new
employees.
Failure of new employees to provide proof of their right to work in the United States in
accordance with Federal law within three (3) business days from their hire date shall result in
their termination.
6. INTRODUCTORY PERIOD
The Company attempts to hire the most-qualified employees for each position. To ensure
this, the Company provides for an introductory period of employment for the employee to
assess the Company and the job content, and for the Company to evaluate the new
employee and his or her job performance.
All new employees must complete to the Company’s satisfaction a 120-day introductory
period beginning with the date of initial employment. During the introductory period, an
employee may be discharged by the Company for any reason and without advance notice.
Similarly, the employee may resign employment for any reason without advance notice
during this period.
A performance review will be conducted by the employee’s supervisor before the
introductory period is completed. At the Company’s discretion, an employee’s introductory
period may be extended one or more times.
Upon notice to his or her supervisor, an employee may take paid sick leave for illness or
medical appointment for the employee or a member of his or her family during the
introductory period. Additional requested sick leave, if authorized, shall be without pay.
Employees will accrue one hour of paid sick leave for every 30 hours worked. On successful
completion of the introductory period, any unused sick leave hours will be converted into paid
time off hours and credited to the employee. Should the employee not advance from
probationary to full-time status the employee is not entitled to payment for any unused sick
leave hours.
Successful completion of the introductory period does not guarantee employment for any
specific duration or change the at-will status of regular employment.
7. EMPLOYEE CLASSIFICATIONS
7.1. Probationary Employees
The term “probationary employee” refers to those employees who are within their 120-day
introductory period.
7.2. Full-Time Employees
The term “full-time employee” refers to an employee who successfully completed the
introductory period (including any extension) and is regularly scheduled to work 40 hours per
week for a period of indefinite duration.
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7.3. Part-Time Employees
The term “part-time employee” refers to an employee who successfully completes the
introductory period (including any extension), and is regularly scheduled to work fewer than
40 hours per week for a period of indefinite duration. The Company will conduct performance
reviews of full-time employees on an annual basis.
8. WORK SCHEDULE, REST PERIODS AND MEALS
8.1. Work Hours
Company work hours are from 8:30 a.m. to 9:30 p.m. every day of the week. The
dispensary shall be open to the public from 9:00 a.m. to 9:00 p.m. every day of the week.
The Company reserves the right to modify employees’ starting and quitting times and the
number of hours worked.
8.2. Workweek
Each workweek begins at 12:00 a.m. on Sunday and runs through 11:59 p.m. on
Saturday.
8.3. Work Shifts
The Company will utilize three shifts of work:
□ 8:30 a.m. to 5:15 p.m.
□ 10:30 a.m. to 7:15 p.m.
□ 12:45 p.m. to 9:30 p.m.
Employees are assigned to a scheduled workweek and shift when hired by the Company.
These assignments may change during the course of employment. When there are
changes in an employee’s workweek or shift assignment, the employee will receive a
minimum of five working days’ notice.
8.4. Day of Rest
All nonexempt employees are entitled to one day of rest per workweek. Employees are
not permitted to work more than six days within one workweek.
Employees who feel they were not provided a day of rest as required by this policy should
inform their supervisor or manager. If not corrected, the employee shall immediately
contact Sandy Truitt, Dispensary Operations Manager, NUG, Inc. at sandy1@nug.com.
8.5. Rest Periods
The Company authorizes and permits nonexempt employees working at least three and
one-half hours in a day to take a fifteen (15) minute, off-duty, uninterrupted paid rest
period for each four hours worked or major fraction thereof. The fifteen (15) minutes do
not include the reasonable time it takes to walk to and from a break area. Employees who
work more than six hours in a day may take a second off-duty, uninterrupted fifteen (15)
minute paid rest period.
Employees who work more than 10 hours in a day may take a third off-duty, uninterrupted
rest period. Employees should take their rest periods in the middle of each work period to
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the extent it is practicable to do so, and not combine them with meal periods or skip them
to leave work early.
Employees who feel they were not provided the opportunity to take all rest periods
authorized and permitted under this policy should inform their supervisor or manager. If
not corrected, the employee shall immediately contact Sandy Truitt, Dispensary
Operations Manager, NUG, Inc. at sandy1@nug.com.
8.6. Meal Periods
The Company provides employees who work more than five hours in a day with an
unpaid 60-minute, uninterrupted meal period starting no later than the end of the fifth hour
of work.
The Company provides employees who work more than 10 hours in a day with a second
unpaid 60-minute, uninterrupted meal period starting no later than the end of the 10th
hour of work.
Employees who work no more than six hours in a day may waive the first meal period.
Employees who work no more than 12 hours in a day may waive the second meal period
if they took their first meal period.
8.7. Meal And Rest Periods Are Encouraged
Employees are entitled, encouraged, and expected to take all meal periods provided
under this policy and not waived, and all rest periods provided under this policy. During
meal periods and rest periods, the Company will relieve employees of all duty and will not
exercise control over employees’ activities. Employees are free to spend their meal
period and rest period time as they choose, and are not required to remain on-premises
or “on-call” during off-duty meal periods and rest periods.
No Company manager or supervisor may impede or discourage employees from taking
meal periods and rest periods provided under this policy.
Employees who feel they were not provided a rest or meal period in accordance with
Company policy are required to inform their manager. If not corrected, the employee
shall immediately contact Sandy Truitt, Dispensary Operations Manager, NUG, Inc. at
sandy1@nug.com.
8.8. Makeup Time
At the discretion of their manager, nonexempt employees may make up work time that is
or would be lost as a result of personal obligations if the time is made up during the same
workweek in which the work time is lost.
A nonexempt employee will be permitted to make up work time only if the employee
submits a written request (email message is sufficient) to make up the lost time and the
employee’s supervisor approves the request in advance. Nonexempt employees will not
be paid overtime for performing makeup work unless they work more than 11 hours in a
workday or more than 40 hours in the workweek.
8.9. Reporting Time Pay
Nonexempt employees who report to work at the Company’s request, but are furnished
less than half of their usual or scheduled day’s work, will be paid for half the usual or
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scheduled day’s work, but not less than two hours’ pay or more than four hours’ pay at
their regular rate, without regard to the number of hours they actually worked, unless the
reasons for the lack of work are beyond the Company’s control.
Reporting time pay will not be paid to an employee on paid standby status who is called
to perform assigned work at a time other than the employee’s scheduled reporting time.
Reporting time hours are not counted as “hours worked” for overtime purposes beyond
the time in which work actually is performed. For example, if an employee who is
scheduled to work an eight-hour shift is sent home after three hours, the employee will
receive four hours’ pay for that day, but the fourth hour of reporting time pay will not be
treated as time worked for overtime purposes.
9. OVERTIME AND HOLIDAY PAY
9.1. Overtime Rates of Pay
All nonexempt employees who work more than eight (8) hours in one workday or more
than forty (40) hours in one workweek will receive overtime pay computed as follows:
□ Overtime at the rate of 1.5 times the employee’s regular rate of pay for all hours
worked in excess of forty (40) in any one workweek.
□ Overtime at the rate of 1.5 times the employee’s regular rate of pay for the hours
worked in excess of eight (8) hours in any one workday up to twelve (12) hours, and
for the first eight (8) hours worked on the seventh consecutive day of work in a single
workweek.
□ Overtime at the rate of double the employee’s regular rate of pay for all hours worked
in excess of twelve (12) in one workday, and for all hours worked in excess of eight
(8) on the seventh day of work in one workweek.
9.2. Overtime Computation
For purposes of calculating overtime, each workweek begins on Sunday and each
workday begins at 12:01 a.m., unless otherwise provided. Overtime will be computed on
actual minutes worked, adjusted to the nearest 15-minute increment.
Only those hours that are actually worked are counted to determine an employee’s
overtime pay. Any paid-time-off hours, e.g. vacation or sick leave, do not count as “hours
worked” for overtime purposes.
9.3. Pre-Authorization Required
Nonexempt employees may not work overtime without the express prior approval of their
supervisor, absent an emergency.
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10. PAYMENT OF WAGES
10.1. Regular Pay Days
Employees are paid biweekly, every other Friday, based on the employee’s work for the
applicable pay period, e.g. the preceding two weeks.
Employees are expected to enter electronically their work hours (time in, lunch start,
lunch end, time out) on a daily basis. All work hours must be entered one week prior to
the pay day in order to employees to be paid for all hours worked in the pay period.
Absent extraordinary circumstances, no paper time sheets will be accepted.
If a pay day falls on a holiday, paychecks will be distributed on the preceding workday.
Due to restrictions under federal banking rules, employee paychecks will consist of cash
payments. All required federal and state income withholding and other taxes will be
deducted from employee paycheck, paid directly to the appropriate governmental entities,
and recorded on employee paychecks. If an employee loses her or his cash payment, we
will not issue a replacement payment.
Employees shall notify the Company immediately if they believe any errors or improper
deductions have been made on their paystubs.
10.2. Payment on Resignation, Termination, Or Completion Of Assignment
If an employee resigns, his or her paycheck will be available on the final day of work,
provided the employee has given at least 72 hours’ prior notice. If an employee resigns
without giving 72 hours’ notice, his or her paycheck will be made available within 72
hours after the employee gives notice of the resignation.
Employees who are terminated involuntarily will be paid on the day of the discharge. If an
employee is hired for a specific assignment or otherwise has a defined term of
employment, his or her paycheck will be available upon the completion of the assignment
or employment term. In all cases, employees’ final paychecks will include payment for all
wages owed and any accrued but unused personal time off, less applicable federal and
state income withholding and other taxes.
10.3. Pay Advances
If an employee wishes to be paid in advance for vacation or because of emergency
circumstances, a Pay Advance Request form must be completed and submitted to the
store manager. If approved, the store manager will forward the request to the NUG
accounting department.
A vacation pay advance will be made only if the employee will be on vacation on the
regularly scheduled payday(s) and only if the employee submits a request at least three
weeks prior to the beginning of the vacation.
11. HOLIDAYS AND VACATION PAY
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11.1. Contract Holidays
The following dates shall be considered contract holidays:
New Year’s Day;
Memorial Day;
Independence Day;
Labor Day;
Thanksgiving; and
Christmas.
11.2. Contract Holiday Pay
Nonexempt employees who work on a contract holiday will be paid at 1.5 times their
regular base rate for all hours worked up to 12 hours and double time for any hours
worked in excess of 12 hours.
Work shifts and staffing on contract holidays will be set within the discretion of each
supervisor and/or department and notice provided to employees. The Company may in its
discretion require employees to work on contract holidays.
If an employee does not work on a contract holiday the employee shall receive no
compensation unless the employee has received authorization for PTO or vacation pay
for the contact holiday.
11.3. Paid Vacation Days
Eligible full-time employees whom have worked for the company for at least one year
shall receive twenty-four (24) hours of paid vacation time every January 1st. Eligible
employees who have worked less than a full year shall receive on January 1st a prorated
amount of vacation pay based on the rate of two (2) hours of vacation pay for each month
worked (including during their status as a probationary employee). Vacation pay is
provided only to full-time employees.
The twenty four (24) hours of vacation pay are independent of the PTO an employee
earns. Vacation hours must be used in a minimum of two (2) hour increments and
authorized by the employee’s supervisor. Vacation time is paid at the employee’s normal
pay rate.
Vacation pay hours may carry over to the next calendar year. However, the total number
of vacation hours an employee may accrue is capped at thirty six (36) hours.
Only authorized vacation pay is allowed. Employees must request and receive approval
for vacation from the store manager at least three (3) weeks in advance of the requested
vacation. The Company reserves the right to deny a request for PTO for a vacation based
on high business activity, the absence of other personnel, and any other reason
necessary for the sound operation of the Company
12. PAID TIME OFF
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The Company grants Paid Time Off (“PTO”) to eligible employees to provide them with the
flexibility to meet both their work and personal needs. The Company believes that this time is
valuable for employees not only to make their work experience with the Company personally
satisfying, but also to enhance their productivity.
12.1. Eligibility
All employees who have completed their introductory period are eligible to participate in
the Company’s PTO program.
12.2. Use
Subject to certain limitations discussed below, employees may use PTO as soon as it is
accrued. Employees may take PTO for any reason, including the following: vacation,
personal illness, medical and dental appointments, emergencies, family care and medical
leave, disability leave, and personal commitments. Nonetheless, employees should make
every effort to schedule time off for personal appointments (medical appointments,
teacher conferences, auto repairs, etc.) before and after working hours.
However, only authorized PTO is allowed. The Company reserves the right to deny a
request for PTO for a vacation based on high business activity, the absence of other
personnel in the employee’s department, and any other reason necessary for the sound
operation of the Company.
PTO is recorded and charged against an employee’s accrued PTO balance.
12.3. Requesting PTO
Absent an emergency, an employee must request PTO no less than two (2) hours before
the start of her or his shift if the PTO is for an illness or medical condition for the
employee or a family member.
Employees must request PTO no less than three (3) weeks in advance if for use as a
vacation or other non-medical purpose.
PTO must be taken in a minimum of a two (2) hour period. Only authorized PTO is
allowed. Employees must request and receive approval for PTO from their supervisor or
the NUG Human Resources Department if their supervisor is unavailable and it is an
emergency.
Nonexempt employees must record all absences (whether paid or unpaid) on their daily
TSheets and the Company PTO Request Form.
12.4. Rate Of Earning PTO
Tier 1: Eligible employees within their first year of employment with the Company
accrue 1.035 hours of PTO for every thirty (30) hours worked up to a maximum of
seventy-two (72) hours per calendar year.
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Tier 2: Eligible employees after their 1st year anniversary of employment with the
Company shall accrue 1.150 hours of PTO for every thirty (30) hours worked up to a
maximum of eighty (80) hours per calendar year.
Tier 3: Eligible employees after their 3rd year anniversary of employment with the
Company shall accrue 1.380 hours of PTO for every thirty (30) hours worked up to a
maximum of ninety-six (96) hours per calendar year.
Tier 4: Eligible employees upon their 5th year anniversary of employment with the
Company shall accrue 1.725 hours of PTO for every thirty (30) hours worked up to a
maximum of one hundred and twenty (120) hours per calendar year.
Overtime hours worked accrue PTO at the same rate as regular work hours.
12.5. Cap
Employees may accumulate PTO to a maximum balance of one hundred and sixty (160)
hours. When an employee’s PTO balance reaches the maximum PTO balance, the
employee may not accrue any additional PTO until the employee reduces his/her PTO
balance to under one hundred and sixty (160) hours.
12.6. Carryover
Subject to the one hundred and sixty hours (160) hours PTO cap, there is no limitation on
the amount of unused PTO an employee may carry over from one year to the next year.
12.7. Calculating And Paying PTO
For non-exempt workers, PTO is provided at the employee’s regular hourly rate of pay
(not overtime rate of pay) for the time taken.
For salaried employees, the PTO will be calculated as follows: annual salary divided by
fifty-two (52) weeks, then divided by forty (40) hours or by the actual hours worked during
a regular workweek if less than forty (40) hours.
PTO will be paid on the payday for the next regular payroll period after PTO is taken.
12.8. Advance
If an employee wishes to take PTO but her or his balance is less than the amount of time
requested or zero, the leave request is subject to the approval of your supervisor.
However, no PTO will be advanced. The leave will be unpaid.
12.9. Accrual During Leave Of Absence
Employees do not accrue PTO while on PTO or paid vacations nor during any unpaid
leave of absence or while on disability salary continuation. PTO accruals recommence
when the employee returns to work.
12.10. Payout
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Should an employee resign or be terminated, the Company will pay the employee for the
PTO hours she or he has accrued at the employee’s base rate of pay at the time of
separation.
13. EMPLOYEE BENEFITS
At the time of hiring each employee shall be provided a memorandum outlining the
Company’s employee benefits program for full-time employees including medical
insurance coverage. The Company reserves the right to modify its employee benefits
program as allowed under the law.
14. ACCOMODATION FOR LACTATING EMPLOYEES
The Company provides reasonable accommodations to employees who want to express
breast milk at work:
A reasonable amount of break time will be provided for employees to express breast
milk.
o Employees should first use their paid rest break(s) time. If the employee needs
a reasonable amount of additional time beyond the normal paid rest break for
expressing milk, the time will be provided but the time will be unpaid.
o Employees can also choose to use their meal break time to express breast
milk.
A private space will be provided of a private place to express breast milk, other than a
toilet stall, in close proximity to the employee’s work area.
o The employee’s normal work area can be used if it allows the employee to
express milk in private.
Retaliation, harassment or discrimination in any way against an employee who chooses to
express breast milk in the workplace is strictly prohibited.
15. LEAVES OF ABSENCE
As set forth below, the Company provides eligible employees (1) pregnancy disability leave
for up to four months; (2) parental leave for up to twelve (12) weeks; (3) bereavement leave;
(4) disability leave as required to reasonably accommodate employees with a workplace
injury or a qualified disability under the Americans with Disabilities Act (“ADA”) or the
California Fair Employment and Housing Act (“FEHA”); and (5) leave for other legally
required absences.
Employees having any questions regarding Company leave policies should contact the NUG
Human Relations Department. The department’s contact information is on page 1 of the
handbook.
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15.1. California Pregnancy Disability Leave
Eligible Company employees are entitled to unpaid pregnancy leave under California’s
Pregnancy Disability Leave Act. Any employee who is pregnant, gives birth to child, or is
unable to work due to a pregnancy or childbirth related condition may take Pregnancy
Disability Leave (PDL) for the period of actual disability as determined by the employee’s
health care provider. The maximum time available is four (4) months, or 17 1/3 weeks per
pregnancy.
An employee may be entitled to a reasonable accommodation for pregnancy, childbirth,
or related medical conditions beyond the four (4) month periods if she so requests and
provides the Company with medical certification from her health care provider.
In addition to other forms of reasonable accommodation, a pregnant employee is entitled
to transfer temporarily to a less strenuous or hazardous position or to less hazardous or
strenuous duties if she so requests, the transfer request is supported by proper medical
certification, and the transfer can be reasonably accommodated.
15.1.1. Eligibility
PDL is open to all employees disabled by pregnancy, childbirth or related conditions.
There is no minimum length of work at the Company necessary to be eligible for
taking PDL.
15.1.2. “Disabled By Pregnancy” Defined
An employee is “disabled by pregnancy” if a health care provider deems that the
employee is unable, because of pregnancy, to perform any one or more of the
essential job functions, or to perform any of these functions without undue risk to the
employee, the successful completion of the pregnancy or to other people.
“Disabled by pregnancy” includes, but is not limited to, time when the employee
suffers from severe morning sickness or needs time off for:
• Prenatal or postnatal care
• Bed rest
• Gestational diabetes
• Pregnancy-induced hypertension
• Preeclampsia
• Postpartum depression
• Childbirth
• Loss or end of pregnancy
• Recovery from:
o Childbirth
o Loss or end of pregnancy
15.1.3. Relation To PTO
An employee taking PDL may use, but is not required to use, accrued PTO if she
wishes to extend the total duration of leave.
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15.1.4. PDL Effect On Benefits
During PDL, the Company will continue to pay for the employee’s participation in the
Company’s group health plans, to the same extent and under the same terms and
conditions as would apply had the employee continued in employment continuously
for the leave period. Thus, the employee must continue to pay the employee share
of the health plan premiums during the leave.
If PTO is substituted for any portion of the leave that is unpaid leave, such payments
will be deducted from the employee’s pay through the regular payroll deductions.
Otherwise, the employee must make arrangements with the Company for the
payment of such premiums.
The Company may recover from the employee the premiums that the Company paid
to maintain coverage for the employee under the group health plan if the employee
fails to return from leave after the period of leave has expired and the employee’s
failure to return is for a reason other than: (i) the employee is taking (i.e., has
transitioned over to) leave under the California Family Rights Act, unless the employee
chooses not to return after the CFRA leave, in which case the Company can recover
such premiums; (ii) the continuation, recurrence, or onset of a health condition that
entitles the employee to Pregnancy-Related Disability Leave, unless the employee
chooses not to return after the Pregnancy-Related Disability Leave, in which case the
Company can recover such premiums; (iii) non-pregnancy related medical conditions
requiring further leave, unless the employee chooses not to return to work following
the leave, in which case the Company can recover such premiums, or (iv) other
circumstances beyond the employee’s control.
It is the Company’s policy that, similar to other unpaid leaves, during any unpaid
portion of a Pregnancy-Disability Leave, employees will accrue employment benefits,
such as sick leave, vacation leave, and seniority, only when paid leave is being
substituted for unpaid leave and only if the employee would otherwise be entitled to
such accrual.
15.1.5. Procedure For Requesting PDL
In general, the employee must provide 30 calendar days’ advance notice to the
Company of the need for PDL supported by medical certification from a health care
provider. If an unforeseeable medical condition arises, the employee must notify the
Company as soon as is practicable and generally must comply with the Company’s
normal call-in or notice procedures.
If an employee fails to provide the requisite 30-day advance notice for foreseeable
events without any reasonable excuse for the delay, the Company reserves the right
to delay the taking of PDL until at least 30 days after the date the employee provides
notice of the need for leave.
15.1.6. Return To Work Certification
The Company requires that an employee returning from PDL provide a release to
return to work from her health care provider stating she is able to resume her original
job or duties.
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15.1.7. Right To Reinstatement
Employees returning from PDL are entitled to be reinstated in the same or
comparable position, subject to certain conditions, and consistent with applicable
law.
15.2. California Parental Leave Law
Eligible Company employees are entitled to twelve (12) weeks of unpaid parental leave
under California’s Parental Leave Act. An eligible employee can use parental leave to
bond with a newborn or a child placed with the employee for adoption or foster care.
15.2.1. Eligibility
To be eligible for parental leave, an employee must have worked for the Company
for at least twelve (12) months and worked for at least 1,250 hours in the past twelve
(12) months.
15.2.2. Qualifying Reasons
An eligible employee can take parental leave to bond with a new child within one
year of the child’s birth, adoption or foster care placement.
15.2.3. Relation To PDL
Leave under Parental Leave Act does not run concurrently with the Pregnancy
Disability Leave Act, e.g. an eligible employee after taking Pregnancy Disability
Leave can take up to twelve (12) weeks of Parental Leave.
15.2.4. Relation To PTO
An employee taking parental leave may use, but is not required to use, accrued PTO
if she or he wishes to extend the total duration of leave.
15.2.5. Parental Leave Effect On Benefits
During parental leave, the Company will continue to pay for the employee’s
participation in the Company’s group health plans, to the same extent and under the
same terms and conditions as would apply had the employee continued in
employment continuously for the leave period. Thus, the employee must continue to
pay his or her share of the health plan premiums during the leave.
If PTO is substituted for any portion of the leave that is unpaid leave, such payments
will be deducted from the employee’s pay through the regular payroll deductions.
Otherwise, the employee must make arrangements with the Company for the
payment of such premiums.
The Company may recover from the employee the premiums that the Company paid
to maintain coverage for the employee under the group health plan if the employee
fails to return from leave after the period of leave has expired.
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15.2.6. Right To Reinstatement
Employees returning from parental leave are entitled to be reinstated in the same or
comparable position, subject to certain conditions, and consistent with applicable
law.
15.3. Bereavement Leave
Independent of PTO, employees are entitled to be paid for up to three (3) days of
Bereavement Leave per year to attend or make arrangement for the funeral (or memorial
service, if in lieu of funeral) for a spouse, registered domestic partner, sibling, parent,
grandparent, grandchild, or current mother or father in-law.
Bereavement Leave in excess of three (3) days per year may be granted within the
Company’s discretion. Any additional Bereavement Leave will be first deducted from the
employee’s accrued PTO and thereafter without pay. Employees returning from
bereavement leave will be reinstated to the same or comparable position.
15.4. Disability And Other Leave
Employees may take a temporary, unpaid disability leave of absence if necessary to
reasonably accommodate a workplace injury or a disability under the federal and
California law.
The duration of a leave shall be consistent with applicable law and based on an individual
assessment, but in no event shall the leave extend past the date on which an employee
becomes capable of performing the essential functions of his or her position, with or
without reasonable accommodation.
If an employee requests disability leave, the employee must provide documentation of the
medical necessity for the leave and an estimate of the duration and any periods of
recovery. The Company requires that an employee returning to work from disability leave
provide certification from his/her health care provider stating that the employee is able to
resume work.
During an employee’s unpaid disability leave, the Company will continue to pay for the
employee’s participation in the Company’s group health plans, to the same extent and
under the same terms and conditions as would apply had the employee not taken leave.
Thus, the employee must continue to pay his or her share of the health plan premiums
during the leave. If paid leave is substituted for the unpaid leave, such payments will be
deducted from the employee’s pay through the regular payroll deductions. Otherwise, the
employee must make arrangements with the Company for the payment of such
premiums.
If the employee fails to pay his or her share of the premiums during leave, the Company
can recover any health plan premiums paid by the Company on the employee’s behalf
upon the employee’s return to work.
The Company also grants eligible employees leaves of absence for military service leave,
jury or witness duty, certain court appearances, appearances at school or daycare
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activities, emergency duty as a volunteer firefighter, a reserve peace officer, or
emergency rescue personnel, to vote in a statewide election, for leave related to
domestic violence, crime victim’s leave, or leave for the donation of an organ or bone
marrow. Unless otherwise required by law, employees will not be paid for such leaves of
absence. Employees returning from these types of leave are entitled to be reinstated in
the same or comparable position, subject to certain conditions, and consistent with
applicable law.
16. OPEN DOOR
The Company Open Door Policy encourages employees to participate in decisions affecting
them and their daily professional responsibilities. The Company believes that employee
concerns are best addressed through this type of informal and open communication.
Note: The Company has a specific procedure detailed in the separate
Harassment, Discrimination and Retaliation Prevention Policy contained in this
handbook that should be used instead of the Open Door Policy to report
concerns or complaints related to possible sexual harassment, or other forms
of harassment, discrimination, or retaliation based on a protected category.
Employees are encouraged to raise work-related concerns with their immediate supervisor,
or with a supervisor or other management representative of their choice, as soon as possible
after the events that cause the concern. Employees are further encouraged to pursue
discussion of their work-related concerns until the matter is fully resolved.
Although the Company cannot guarantee that in each instance the employee will be satisfied
with the result, the Company will attempt in each instance to explain the result to the
employee if the employee is not satisfied. The Company will also attempt to keep all such
expressions of concern, the results of any investigation, and the terms of the resolution
confidential. In the course of investigating and resolving the matter, however, some
dissemination of information to others may be necessary or appropriate.
Employees who conclude that work-related concerns should be brought to the attention of
the Company by written complaint and formal investigation may avail themselves of the
“Internal Complaint Review Procedure” set forth in the next section of this handbook.
17. INTERNAL COMPLAINT REVIEW PROCEDURE
17.1. Purpose And Scope
The Internal Complaint Review Procedure is intended to supplement the Open Door
Policy. While the Company believes most work-related concerns that may arise for
employees can be addressed through the Open Door Policy, we also have an Internal
Complaint Review Procedure for all employees to use to notify the Company of their
work-related concerns, and to give the Company the opportunity to learn about, address,
and resolve the complaint.
Note: The Company has a specific procedure detailed in the separate
Harassment, Discrimination and Retaliation Prevention Policy contained in the
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next section of the handbook that should be used instead of the Internal
Complaint Review Procedure to report concerns or complaints related to
possible sexual harassment, or other forms of harassment, discrimination, or
retaliation based on a protected category.
Importantly, when the nature of the concern pertains to an actual or suspected violation of
the law, or an ethical violation, including under the Company’s Rules of Conduct, all
employees, directors, and officers of the Company are required to file a complaint using
the procedure below. This includes reporting any activity that is considered by the person
making the complaint to be illegal or dishonest.
Examples of illegal and dishonest activities are violations of federal, state or local laws or
theft, fraud, or embezzlement. Any questions regarding whether a concern is subject to
this mandatory reporting policy should be resolved in favor of filing the complaint.
17.2. Procedure
17.2.1. Filing of Complaint
Individuals should file written complaints with their manager as soon as possible
after the events that give rise to the work-related concerns. The written complaint
should set forth in detail the bases for the complaint. The written complaint may be
sent in the form of an email message using the subject line “Employee Complaint
Concerning _______.”
If, for any reason, an individual would prefer not to discuss the subject of the concern
with the individual identified above, then he or she must report the concern as soon
as possible to the NUG Human Resources Department.
17.2.2. Investigation
All written complaints will be dated and logged and an acknowledgment sent to the
employee that the complaint is under review.
The manager or Human Resources Department or his/her/its designee will
investigate the complaint, meeting separately with the employee and with others who
either are named in the complaint or who may have knowledge of the facts set forth
in the complaint. The Company will attempt to treat all internal complaints and their
investigation as confidential, recognizing, however, that in the course of investigating
and resolving internal complaints some dissemination of information to others may
be necessary or appropriate.
On completion of the investigation, the manager or Human Resources Department
representative will orally report its findings and conclusions to the employee. If the
complaint is resolved to the employee’s satisfaction, the terms of the resolution
should be recorded and signed by both the employee and a Company
representative.
17.2.3. Appeal
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If the complaint is not resolved to the employee’s satisfaction, the employee may
submit a written request for review of the complaint to Sandy Truitt, Dispensary
Operations Manager, NUG. On completion of the appeal review, the employee
should receive an oral explanation of the conclusion reached and the reasons for
that conclusion. Decisions resulting from appeal reviews will be final
17.2.4. No Retaliation
The Company will not tolerate retaliation against individuals for: reporting a good
faith concern under this policy; participating in or cooperating in any internal
investigations of reported concerns; or otherwise engaging in conduct protected by
law. Prohibited retaliation can be adverse employment actions, like termination,
compensation decreases, or poor work assignments, or even threats of physical
harm.
Anyone who believes that he or she has been retaliated against for reporting a good
faith concern, for participating in or cooperating in an internal investigation of a
concern, or for exercising his or her rights, or otherwise engaging in conduct
protected by law, should immediately notify the Company using the same Procedure
described above.
18. HARASSMENT, DISCRIMINATION AND RETALIATION PREVENTION POLICY
18.1. Summary
The Company is an equal opportunity employer. The Company is committed to providing
a work environment free of harassment, discrimination, retaliation and disrespectful or
other unprofessional conduct based on:
• Race
• Religion (including religious dress and grooming practices)
• Color
• Sex/gender( including pregnancy, childbirth, breastfeeding or related medical
conditions), sex stereotype, gender identity/gender expression/transgender
(including whether or not you are transitioning or have transitioned) and sexual
orientation
• National origin
• Ancestry
• Physical or mental disability
• Medical condition
• Genetic information/characteristics
• Marital status/registered domestic partner status
• Age (40 and above)
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• Sexual orientation
• Military or veteran status
• Any other basis protected by federal, state or local law or ordinance or regulation.
The Company also prohibits discrimination, harassment, disrespectful or unprofessional
conduct based on the perception that anyone has any of those characteristics, or is
associated with a person who has or is perceived as having any of those characteristics.
In addition, the Company prohibits retaliation against individuals who raise complaints of
discrimination or harassment or who participate in workplace investigations.
All such conduct violates Company policy.
18.2. Harassment Prevention
The Company's policy prohibiting harassment applies to all persons involved in the
operation of the Company. The Company prohibits harassment, disrespectful or
unprofessional conduct by any employee of the Company, including supervisors,
managers and co-workers.
The Company's anti-harassment policy also applies to vendors, customers, independent
contractors, unpaid interns, volunteers, persons providing services pursuant to a contract
and other persons with whom you come into contact while working.
Prohibited harassment, disrespectful or unprofessional conduct includes, but is not limited
to, the following behavior:
• Verbal conduct such as epithets, derogatory jokes or comments, slurs or
unwanted sexual advances, invitations, comments, posts or messages;
• Visual displays such as derogatory and/or sexually-oriented posters,
photography, cartoons, drawings or gestures;
• Physical conduct including assault, unwanted touching, intentionally blocking
normal movement or interfering with work because of sex, race or any other
protected basis;
• Threats and demands to submit to sexual requests or sexual advances as a
condition of continued employment, or to avoid some other loss and offers of
employment benefits in return for sexual favors;
• Retaliation for reporting or threatening to report harassment; and
• Communication via electronic media of any type that includes any conduct that is
prohibited by state and/or federal law or by company policy.
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Sexually harassing conduct can be by a person of either the same or opposite sex.
Sexual harassment does not need to be motivated by sexual desire to be unlawful or to
violate this policy. For example, hostile acts toward an employee because of his/her
gender can amount to sexual harassment, regardless of whether the treatment is
motivated by sexual desire.
Prohibited harassment is not just sexual harassment but harassment based on any
protected category.
18.3. Non-Discrimination
The Company is committed to compliance with all applicable laws providing equal
employment opportunities. This commitment applies to all persons involved in Company
operations. The Company prohibits unlawful discrimination against any job applicant,
employee or unpaid intern by any employee of the Company, including supervisors and
coworkers.
Pay discrimination between employees of the opposite sex or between employees of
another race or ethnicity performing substantially similar work, as defined by the
California Fair Pay Act and federal law, is prohibited. Pay differentials may be valid in
certain situations defined by law. Employees will not be retaliated against for inquiring
about or discussing wages. However, the Company is not obligated to disclose the wages
of other employees.
18.4. Anti-Retaliation
The Company will not retaliate against you for filing a complaint or participating in any
workplace investigation or complaint process and will not tolerate or permit retaliation by
management, employees or co-workers.
18.5. Reasonable Accommodation
Discrimination can also include failing to reasonably accommodate religious practices or
qualified individuals with disabilities where the accommodation does not pose an undue
hardship.
To comply with applicable laws ensuring equal employment opportunities to qualified
individuals with a disability, the Company will make reasonable accommodations for the
known physical or mental limitations of an otherwise qualified individual with a disability
who is an applicant or an employee unless undue hardship would result.
Any job applicant or employee who requires an accommodation in order to perform the
essential functions of the job should contact a Company representative with day-to-day
personnel responsibilities and discuss the need for an accommodation. The Company will
engage in an interactive process with the employee to identify possible accommodations,
if any, that will help the applicant or employee perform the job. An applicant, employee or
unpaid intern who requires an accommodation of a religious belief or practice (including
religious dress and grooming practices, such as religious clothing or hairstyles) should
also contact a Company representative with day-to-day personnel responsibilities and
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discuss the need for an accommodation. If the accommodation is reasonable and will not
impose an undue hardship, the Company will make the accommodation.
The Company will not retaliate against you for requesting a reasonable accommodation
and will not knowingly tolerate or permit retaliation by management, employees or co-
workers.
18.6. Complaint Process
If you believe that you have been the subject of harassment, discrimination, retaliation or
other prohibited conduct, bring your complaint to your supervisor or to Sandy Truitt,
Dispensary Operations Manager, NUG, Inc. at sandy1@nug.com as soon as possible
after the incident.
You can bring your complaint to any of these individuals. If you need assistance with your
complaint, or if you prefer to make a complaint in person, contact the NUG Human
Resources Department.
Please provide all known details of the incident or incidents, names of individuals
involved and names of any witnesses. It would be best to communicate your complaint in
writing, but this is not mandatory.
The Company encourages all individuals to report any incidents of harassment,
discrimination, retaliation or other prohibited conduct forbidden by this policy immediately
so that complaints can be quickly and fairly resolved.
You also should be aware that the Federal Equal Employment Opportunity Commission
and the California Department of Fair Employment and Housing investigate and
prosecute complaints of prohibited harassment, discrimination and retaliation in
employment. If you think you have been harassed or discriminated against or that you
have been retaliated against for resisting, complaining or participating in an investigation,
you may file a complaint with the appropriate agency. The nearest office can be found by
visiting the agency websites at www.dfeh.ca.gov and www.eeoc.gov.
Supervisors must refer all complaints involving harassment, discrimination, retaliation or
other prohibited conduct to Sandy Truitt, Dispensary Operations Manager, NUG, Inc. at
sandy1@nug.com so the Company can try to resolve the complaint.
When the Company receives allegations of misconduct, it will immediately undertake a
fair, timely, thorough and objective investigation of the allegations in accordance with all
legal requirements. The Company will reach reasonable conclusions based on the
evidence collected.
The Company will maintain confidentiality to the extent possible. However, the Company
cannot promise complete confidentiality. The employer's duty to investigate and take
corrective action may require the disclosure of information to individuals with a need to
know.
Complaints will be:
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• Responded to in a timely manner
• Kept confidential to the extent possible
• Investigated impartially by qualified personnel in a timely manner
• Documented and tracked for reasonable progress
• Given appropriate options for remedial action and resolution
• Closed in a timely manner
If the Company determines that harassment, discrimination, retaliation or other prohibited
conduct has occurred, appropriate and effective corrective and remedial action will be
taken in accordance with the circumstances involved. The Company also will take
appropriate action to deter future misconduct.
19. TERMINATION, DISCIPLINE AND RULES OF CONDUCT
19.1. Termination
19.1.1. Voluntary Termination
The Company will consider an employee to have voluntarily terminated his or her
employment if an employee does any of the following:
i. Elects to resign from the Company;
ii. Without notice to the Company fails to return from an approved leave of
absence on the date specified by the Company; or
iii. Fails to report for work without notice to the Company for three consecutive
days.
19.1.2. Involuntary Termination
An employee may be terminated involuntarily for reasons that may include poor
performance, misconduct, or other violations of the Company’s rules of conduct as
set forth below under “Discipline And Rules of Conduct.” Notwithstanding any of the
listed of rules for involuntary termination, the Company reserves the right to
discharge or demote any employee with or without cause and with or without prior
notice.
19.1.3. Termination Due To Adverse Economic Conditions
From time to time, the Company may need to terminate an employee as a
consequence of reorganizations, job eliminations, economic downturns in business,
or lack of sales. Should the Company consider such terminations necessary, the
Company will attempt to provide all affected employees with advance notice when
practical.
19.2. Discipline And Rules Of Conduct
Employees are expected to observe certain standards of job performance and good
conduct. When performance or conduct does not meet Company standards, the
employee will be subject to discipline up to and including termination.
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The rules set forth below are intended to provide employees with notice of what is
expected of them. The rules, however, cannot identify every type of unacceptable
conduct and performance.
Therefore, employees should be aware that conduct not specifically listed below but
which the Company determines adversely affects or is otherwise detrimental to the
interests of the Company, other employees, or customers, may also result in disciplinary
action including termination.
19.2.1. Job Performance
Employees may be disciplined for poor job performance, including but not limited to
the following:
i. Unsatisfactory work quality or quantity;
ii. Excessive absenteeism, tardiness, or abuse of rest breaks and meal period
policies;
iii. Repeated or gross insubordination; or
iv. Failure to follow instructions or Company policies, rules or procedures,
including inventory, safety and security procedures.
19.2.2. Misconduct
Employees may be disciplined for misconduct, including but not limited to the
following:
i. Failure or refusal to perform assigned work;
ii. Dishonesty;
iii. Theft of any kind including cannabis, cannabis products, cash receipts,
customer records and property, and Company intellectual property;
iv. Conversion or embezzlement of Company product inventory, funds or
assets;
v. Discourtesy, rudeness, or unprofessional behavior toward a customer, or
member of the public;
vi. Disclosing or misusing Confidential Information or Personal Identification
Information without authorization;
vii. Falsifying or altering Company records, including an application for
employment or timekeeping records;
viii. Interfering with the work performance of others;
ix. Commission of any fraud, misrepresentation, material omission, act of
moral turpitude, or breach of any fiduciary duty owed to the Company;
x. Gross carelessness or misconduct;
xi. Sleeping on the job or leaving the work site without authorization for a
purpose other than a legally protected activity;
xii. Possessing a firearm or other dangerous weapon on Company property or
while conducting Company business;
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xiii. Assault, battery or threat of physical violence at the work site or any work-
related site or event;
xiv. Any willful act that might endanger the safety and well-being of employees
or customers;
xv. Misusing or destroying Company property through intentional or negligent
conduct;
xvi. Unauthorized acceptance of loans, gifts, coupons, passes, or any form of
compensation from Company vendors, other than any T-shirt, hat, desk
accessory or other promotional item with a total estimated value of no more
than $30;
xvii. Working for another employer or oneself while on a leave of absence from
the Company, without prior written notice and approval by the Company;
xviii. Failing to report to the Company, within one business day, any conviction
for any criminal offense;
xix. Failing to report to the Company, within one business day, the issuance of
any restraining or stay-away order related to an alleged threat of force or
violence or stalking against another person;
xx. Taking photos, recording conversations or phone calls or videotaping on
Company property or while conducting Company business with any type of
device including a cell phone without prior written notice and approval by
the Company;
xxi. Sale, gift or distribution of Company cannabis or cannabis products in
violation of California law or regulations or Company policy;
xxii. Violation of any Company policy including policies on bullying behavior and
workplace violence, use of technology, social media, safety, security,
harassment, discrimination or alcohol and drug use on premises;
xxiii. For employees who drive as any part their job duties, failing to report to the
Company promptly, and no later than prior to the start of the employee’s
next work day, the issuance of a citation of DUI, DWI, or other similar or
related driving citation, whether or not the employee received the citation
while driving as part of his/her work duties, or any suspension of
employee’s driving license;
xxiv. Yelling at, berating, displaying anger in one’s voice or face, insulting, using
epithets and derogatory remarks, or acting in a manner that may be
reasonably viewed by another employee as threatening, intimidating,
harassing or bullying behavior irrespective of intent and whether or not the
harassment or bullying was based on any protected class or characteristics;
or
xxv. Any action that has a direct, substantial or adverse effect on the Company’s
reputation or image.
The above listed factors may also serve as grounds for discipline should an
employee know or become aware that another employee engaged in misconduct,
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e.g. committed a theft of cannabis or embezzled Company funds, and the employee
failed to report timely such information to a supervisor or manager.
19.2.3. Attendance
In addition to the general rules stated above, employees may be disciplined for failing
to observe the following specific requirements relating to attendance:
i. Reporting to work on time, observing rest break and meal period policies,
recording all time worked, and obtaining approval to leave work early; and
ii. Notifying the supervisor or manager in advance of anticipated tardiness or
absence.
19.2.4. Discipline Procedure
The Company reserves the right to proceed directly to termination for misconduct or
performance deficiency, without resort to prior disciplinary steps or written warning,
when the Company deems such action appropriate.
On minor infractions or performance deficiency, the Company may provide an oral or
written warning stating the nature of the infraction or deficiency, what is required to
correct the poor performance, further review that may occur to confirm the employee
is meeting performance standards, and the consequences of failure to correct the
poor performance.
19.3. Employment At Will And No Severance Pay
Nothing in this handbook is intended to alter the at-will status of employment with the
Company. An employee or the Company may terminate the employment relationship at
any time with or without cause and with or without prior notice. The Company reserves
the right to terminate any employment relationship, to demote, or to otherwise discipline
an employee without resort to the above disciplinary procedures. The Company does not
provide severance or lay-off pay to any terminated employee.
20. PREVENTION OF BULLYING BEHAVIOR AND WORKPLACE VIOLENCE
20.1. Policy
The Company recognizes that bullying behavior and workplace violence are concerns
among employers and employees across the country. The Company is committed to
providing a safe, welcoming workplace free of yelling, displays of anger, disrespect
toward other employees, and violence. All employees are expected to have a positive
work attitude, keep their temper in check, politely and patiently answer questions from co-
workers, and resolve issues that arise in a timely, collaborative and professional manner.
The Company strictly prohibits employees, consultants, customers, visitors, or anyone
else on Company premises or engaging in a Company-related activity from acting in a
way that may be reasonably viewed by another employee or person as bullying,
aggression, harassment, threatening or violent behavior irrespective of intent. The
Company reserves the right to address and discipline employees that violate this policy,
including with immediate termination.
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20.2. Bullying Behavior Defined
Bullying behavior at the workplace includes, but is not limited to, the following:
□ Yelling or berating another;
□ Taunting;
□ Displays of anger in one’s face, voice or with one’s body;
□ Malicious, derogatory remarks;
□ Repeated verbal abuse, insults or epithets;
□ Intentional sabotage or undermining another’s work performance; or
□ Any other abusive, malicious or humiliating conduct or behavior that a reasonable
person would find hostile or offensive regardless of intent.
20.3. Workplace Violence Defined
Workplace violence includes, but is not limited to, the following:
□ Threats of any kind;
□ Threatening, physically aggressive, or violent behavior, such as intimidation of or
attempts to instill fear in others;
□ Other behavior that suggests a propensity towards violence, which can include
belligerent speech, excessive arguing or swearing, sabotage, or threats of
sabotage of Company property, or a demonstrated pattern of refusal to follow
Company policies and procedures;
□ Defacing Company property or causing physical damage to the facilities; or
□ With the exception of security personnel, bringing weapons or firearms of any kind
on Company premises, in Company parking lots, or while conducting Company
business.
20.4. Reporting
If any employee observes or becomes aware of any of the above-listed actions or
behavior by an employee, customer, consultant, visitor, or anyone else, he or she should
notify her or his supervisor or manager immediately.
Further, employees should notify their supervisor or manager immediately if any
restraining order is in effect, or if a potentially violent nonwork-related situation exists that
could result in violence in the workplace.
20.5. Investigation
All reports of bullying behavior or workplace violence will be taken seriously and will be
investigated promptly and thoroughly. In appropriate circumstances, the Company will
inform the reporting individual of the results of the investigation. To the extent possible,
the Company will maintain the confidentiality of the reporting employee and of the
investigation. The Company may, however, need to disclose results in appropriate
circumstances, for example, in order to protect individual safety. The Company will not
tolerate retaliation against any employee who reports bullying behavior or workplace
violence.
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20.6. Corrective Action And Discipline
If the Company determines that bullying behavior workplace violence in violation of this
policy has occurred, the Company will take appropriate corrective action and will impose
discipline on offending employees. The appropriate discipline will depend on the
particular facts but may include written or oral warnings, probation, reassignment of
responsibilities, suspension, or termination. If the bullying or violent behavior is that of a
non-employee, the Company will take appropriate corrective action in an attempt to
ensure that such behavior is not repeated.
21. COMPANY PROPERTY; CONFIDENTIAL AND PERSONAL IDENTIFICATION
INFORMATION
21.1. Security Of Company Property
Company property includes not only tangible property, like desks and computers, but also
intangible property such as confidential information. It is critical for the Company to
preserve and protect its confidential information, as well as the personal information of
customers, suppliers, and third parties. All employees are responsible for ensuring that
proper security is maintained at all times. Employees are not to remove Company
property without authorization.
21.2. Confidential Information Defined
“Confidential Information” means all information, not generally known, belonging to, or
otherwise relating to the business of the Company or its clients, customers, suppliers,
vendors, affiliates or partners, regardless of the media or manner in which it is stored or
conveyed, that the Company has taken reasonable steps to protect from unauthorized
use or disclosure.
Confidential Information includes but is not limited to trade secrets as well as other
proprietary knowledge, information, and know-how; non-public intellectual property rights,
including business plans and strategies; manufacturing techniques; formulae; processes;
designs; drawings; discoveries; improvements; ideas; conceptions; test data;
compilations of data; and developments, whether or not patentable and whether or not
copyrightable.
21.3. Personal Identification Information Defined
“Personal Identification Information” includes individually identifiable information about
employees, customers, consultants, or other individuals, such as Social Security
numbers, background information, credit card or banking information, health information,
or other non-public information entrusted to the Company regarding an individual’s
personal identity.
21.4. Security Of Confidential And Personal Identification Information
Employees are expected to keep Confidential Information and Personal Identification
Information secure from outside visitors and all other persons who do not have legitimate
reason to see or use such information.
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Employees shall not disclose Confidential Information and Personal Identification
Information to any third party without prior managerial approval.
Employees shall not use or disclose any Confidential Information or Personal
Identification Information that they produce or obtain during employment with the
Company, except to the extent such use or disclosure is required in connection with
performing their jobs.
Misuse or unauthorized disclosure of Confidential Information or Personal Identification
Information may result in immediate termination, as well as potential personal and
criminal liability.
Nothing in this Guideline restricts an employee from discussing his or her wages or other
terms and conditions of employment with coworkers or others, to the extent protected by
law.
21.5. Obligations On Termination
On termination of employment, whether voluntary or involuntary, all Company
documents, computer records, and other tangible Company property including keys and
Company electronic devices in the employee’s possession or control must be returned to
the Company immediately.
Employees may not use or disclose Confidential Information or Personal Identification
Information for any reason after the employment relationship with the Company ends.
22. TECHNOLOGY USE AND SECURITY
The Company provides various Technology Resources to authorized employees to assist
them in performing their job duties for the Company. Each employee has a responsibility to
use the Company’s Technology Resources in a manner that increases productivity,
enhances the Company’s public image, and is respectful of other employees. Failure to
follow the Company’s policies regarding Technology Resources may lead to disciplinary
measures, up to and including termination of employment.
22.1. Technology Resources Definition
Technology Resources consist of all electronic media and storage devices, software, and
means of electronic communication including any of the following: personal computers
and workstations; laptop computers; mini and mainframe computers; tablets; computer
hardware such as disk drives, tape drives, external hard drives and flash/thumb drives;
peripheral equipment such as printers, modems, fax machines, and copiers; computer
software applications and associated files and data, including software that grants access
to external services, such as the Internet or cloud storage accounts; electronic mail;
telephones; mobile phones; personal organizers and other handheld devices; pagers;
voicemail systems; and instant messaging systems.
22.2. Authorization
Access to the Company’s Technology Resources is within the sole discretion of the
Company. Generally, employees are given access to the Company’s various
technologies based on their job functions. Only employees whose job performance will
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benefit from the use of the Company’s Technology Resources are authorized to access
and use the necessary technology.
22.3. Use
The Company’s Technology Resources are to be used by employees during working time
only for the purpose of conducting Company business.
Employees may, however, use the Company’s Technology Resources for the following
incidental non-work related uses during nonworking time as long as such use does not
interfere with the employee’s duties, is not done for pecuniary gain, and does not violate
any Company policy:
□ To use the telephone system for brief and necessary calls;
□ To send and receive necessary and occasional communications;
□ To prepare and store incidental data (such as personal calendars, personal
address lists, and similar incidental data) in a reasonable manner; and
□ To access the Internet and personal social media sites for brief personal searches
and inquiries during meals, breaks, or other nonworking time, provided that
employees adhere to all other usage policies.
The Company assumes no liability for loss, damage, destruction, alteration, receipt,
transmission, disclosure, or misuse of any personal data or communications transmitted
over or stored on the Company’s Technology Resources. The Company accepts no
responsibility or liability for the loss or non-delivery of any personal electronic mail or
voicemail communications or any personal data stored on any Company property. The
Company strongly discourages employees from storing any personal data on any of the
Company’s Technology Resources.
22.4. Improper Use
22.4.1. Prohibition Against Harassing, Discriminatory And Defamatory Use
As set forth in the Company’s “Equal Employment Opportunity Policy” and its “Policy
Against Harassment and Discrimination,” the Company does not tolerate
discrimination or harassment based on race, color, religion, religious creed (including
religious dress and religious grooming), sex (including pregnancy, perceived
pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender
identity (including transgender identity and transitioning), gender expression and sex
stereotyping, national origin, perceived national origin, ancestry, citizenship, age,
physical or mental disability, legally protected medical condition or information
(including genetic information), family care or medical leave status, military caregiver
status, military status, veteran status, marital status, domestic partner status, sexual
orientation, status as a victim of domestic violence, sexual assault or stalking,
enrollment in a public assistance program, engaging in protected communications
regarding employee wages, requesting a reasonable accommodation on the basis of
disability or bona fide religious belief or practice, or any other status protected by
applicable laws.
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Under no circumstances shall employees use the Company’s Technology
Resources to transmit, receive, or store any information that is discriminatory,
harassing, defamatory, obscene, indecent, threatening, or that otherwise could
adversely affect any individual, group, or entity (e.g., sexually explicit or racial
messages, slurs, jokes, or cartoons).
22.4.2. Prohibition Against Violating Copyrights
Employees shall not use the Company’s Technology Resources to copy, retrieve,
forward, or send copyrighted materials unless the employee has the author’s
permission or is accessing a single copy only for the employee’s reference.
22.4.3. Other Prohibited Use
Employees shall not use the Company’s Technology Resources for any illegal
purpose, violation of any Company policy, for pecuniary gain, or in any way that
discloses trade secrets or other confidential or proprietary information of the
Company, business partners, vendors, or customers.
22.5. Company Access To Technology Resources
All messages sent and received, including personal messages, and all data and
information stored on the Company’s Technology Resources (including on its electronic
mail system, voicemail system, or computer systems) are Company property regardless
of the content. As such, the Company reserves the right to access all of its Technology
Resources including its computers, voicemail, and electronic mail systems, at any time, in
its sole discretion.
22.5.1. No Reasonable Expectation Of Privacy
The Company may need to access its Technology Resources including computer
files, electronic mail messages, and voicemail messages. Employees should
understand, therefore, that they have no right of privacy with respect to any
messages or information created, collected, or maintained on the Company’s
Technology Resources, including personal information or messages.
The Company may, at its discretion, inspect all files or messages on its Technology
Resources at any time for any reason. The Company may also monitor its
Technology Resources at any time in order to confirm compliance with its policies,
for purposes of legal proceedings, to investigate misconduct, to locate information,
or for any other business purpose.
22.5.2. Passwords
Certain of the Company’s Technology Resources can be accessed only by entering
a password or using login credentials. Passwords and login credentials are intended
to prevent unauthorized access to information.
Passwords and login credentials do not confer any right of privacy upon any
employee of the Company. Thus, even though employees may maintain passwords
or be provided with login credentials for accessing Technology Resources,
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employees must not expect that any information maintained on Technology
Resources, including electronic mail and voicemail messages, are private.
Employees are expected to maintain their passwords and login credentials as
confidential. Employees must not share passwords, or forward login credentials
unless authorized by a supervisor or manager and must not access coworkers’
systems without express authorization.
22.5.3. Data Collection
The best way for employees to ensure the privacy of personal information is not to
store or transmit it on the Company’s Technology Resources. So that employees
understand the extent to which information is collected and stored, examples of
information currently maintained by the Company are provided below. The Company
may, however, in its sole discretion, and at any time, alter the amount and type of
information that it retains.
□ Telephone Use and Voicemail: Records are kept of all calls made from and to
a given telephone extension. Although voicemail is password-protected, an
authorized administrator can listen to voicemail messages and also reset the
password.
□ Electronic Mail: Electronic mail is backed up and archived. Although electronic
mail is password-protected, an authorized administrator can read electronic
mail and also reset the password.
□ Desktop Facsimile Use: Copies of all facsimile transmissions are maintained in
the facsimile server.
□ Document Use: Each document stored on Company computers has a history
that shows which users have accessed the document for any purpose.
□ Internet Use: Internet sites visited, the number of times visited, and the total
time connected to each site are recorded and periodically monitored.
22.5.4. Deleted Information
Deleting or erasing information, documents, or messages maintained on the
Company’s Technology Resources is, in most cases, ineffective. All employees
should understand that any information kept on the Company’s Technology
Resources may be electronically recalled or recreated regardless of whether it may
have been “deleted” or “erased” by an employee.
Because the Company periodically backs up all files and messages, and because of
the way in which computers reuse file storage space, files and messages may exist
that are thought to have been deleted or erased. Therefore, employees who delete
or erase information or messages should not assume that such information or
messages are confidential or ever were confidential. If a legal dispute arises, or may
arise in the future, it may be unlawful to attempt to delete or erase certain
information. Employees shall fully comply with Company policy regarding retention
or destruction of information.
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22.6. Internet Use
The Company provides authorized employees access to online services such as the
Internet. The Company expects that employees will use these services in a responsible
way and for business-related purposes only use during an authorized rest or meal break.
Under no circumstances are employees permitted to use the Company’s Technology
Resources to access, download, or contribute to Internet sites that contain inappropriate
content such as that which is discriminatory, harassing, defamatory, sexually explicit,
indecent, threatening, or that otherwise could reasonably adversely affect any individual,
group, or entity.
Additionally, employees shall not use the Company’s Technology Resources to post,
comment, send, or otherwise upload any information to any Web sites or other online
groups, including blogs, social networking Web sites, newsgroups, discussion groups, or
non-Company email groups, except in accordance with the Company’s Social Media
Policy.
These actions will likely generate junk electronic mail and may expose the Company to
liability or unwanted attention because of comments or other contributions that
employees may make. The Company strongly encourages employees who wish to
access the Internet for non-work-related activities to obtain their own personal Internet
access accounts that are unaffiliated with the Company, and to use such accounts at
home on their own personal computer without making any reference to the Company.
22.7. Online Monitoring
The Company monitors both the amount of time spent using online services and the sites
visited by individual employees. The Company reserves the right to limit such access by
any means available to it, including revoking access altogether.
The Company may also in its discretion prohibit or limit access to certain web sites.
22.8. Software Use
All software in use on the Company’s Technology Resources is officially licensed
software. No software is to be installed or used that has not been duly paid for and
licensed appropriately for the use to which it is being put. No employee may load any
software on the Company’s computers, by any means of transmission, unless authorized
in writing in advance by a manager or supervisor and thoroughly scanned for viruses or
other malware prior to installation.
22.9. Electronic Mail Guidelines
Employees are expected to use sound judgment with respect to use of the Company’s
electronic mail (“e-mail”). All employees should adhere to the following with respect to
use of e-mail:
□ Use the “front page” test. Assuming that e-mail is the appropriate medium of
communication, each e-mail should be treated as a formal written document. Do not
write anything in an e-mail that could not be printed on the front page of the
newspaper. Off-the-cuff, sarcastic, or angry comments can come back to haunt the
author.
□ E-mail is part of the workplace environment. E-mail containing rude and insensitive
comments is not only personally embarrassing, but also may serve as the basis for
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legal liability. Employees and managers should exercise the same care and sensitivity
in communicating via e-mail as they would when communicating in person or in
letters. Offensive e-mail received from others should not be forwarded, and the
recipient should ask the sender to refrain from sending inappropriate e-mail.
□ Provide context. As with other forms of communication, there is a risk that an e-mail
message may be taken out of context. To reduce the risk that the message will be
taken out of context, consider including the original message to which the reply e-mail
relates.
□ Know your audience. When sending an e-mail, always double-check to whom the e-
mail is addressed, especially when using the “reply to all” button. Ask whether it is
appropriate for each addressee to receive the e-mail and whether sending the e-mail
to a particular addressee will result in the unauthorized disclosure of Confidential
Information. If in doubt, remove the doubted addressee.
□ Avoid using a home or personal computer for business purposes. If there is any
concern that a legal dispute or litigation involving the Company and a third party may
require producing one’s hard drive from a home or personal computer, the employee
should not use the device for business-related purposes. E-mail relating to Company
business, even though stored on a home or personal computer, is recoverable and
discoverable in litigation.
23. SOCIAL MEDIA POLICY
23.1. Definition
Social media includes all means of communicating or posting information or content of
any sort on the Internet, including Facebook, Twitter, Instagram, Pinterest, an employee’s
own or someone else’s blog, journal or diary, personal web site, social networking or
affinity web site, message boards, chat rooms, photo and video sharing sites, whether or
not associated or affiliated with the Company, as well as any other form of electronic
communication.
23.2. Restriction On Social Media At Workplace
Employees shall not use social media while on work time, unless it is work-related as
authorized by their supervisor or consistent with the Company’s policies or during an
authorized rest or meal break.
Employees that properly access social media while at the workplace, whether they use a
Company computer or their own device using a Company network or Wi-Fi system,
should not have an expectation of privacy. The Company has the right to monitor all
activity on its equipment and systems.
Employees should carefully read this handbook and the Company’s that related to social
media, including the Company Property: Confidential and Personal Information Policy,
Use of Technology Resources, the External Communications Policy, the Equal
Employment Opportunity Policy, and the Policy Against Harassment and Discrimination,
and ensure their postings are consistent with these policies.
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Social media postings that violate these policies, including ones that include ethnic, racial
or gender-based slurs or other discriminatory remarks, harassment, and threats of
violence or similar inappropriate or unlawful conduct, shall subject employees to
disciplinary action including termination.
23.3. Employee Responsibility For Social Media Use Outside The Workplace
While the Company does not actively seek out employees’ social media activities, the
nature of social media is that information posted is rarely, if ever, confidential. Employees
who exercise their right to post on social media outside of the workplace, should have no
expectation that their postings will be held private.
Before creating online content, employees should consider some of the risks and rewards
that are involved. Everything that is posted may become public information including the
employee’s identification and employment at the Company.
Social media postings made outside of the workplace may trigger discipline by the
Company including termination of the employee if the posting that adversely affects job
performance, the performance of fellow employees or otherwise adversely affects
customers, suppliers, people who work on behalf of the Company or damage the
Company’s legitimate business interests and reputation.
In particular, social media postings made outside of work that include ethnic, racial or
gender-based slurs or other discriminatory remarks, harassment, and threats of violence
or similar inappropriate or unlawful conduct shall subject employees to disciplinary action
including termination.
23.4. Maintain Professionalism And Respect Whether Or Not At Work
Employees should always be fair to fellow employees and people who work on behalf of
the Company. Also, employees should keep in mind that they are more likely to resolve
work-related complaints by speaking directly with co-workers or by utilizing any of the
Company’s procedures for raising concerns or complaints (i.e., the Company’s Open
Door Policy or Procedure for Reporting Employee Complaints, or for concerns involving
suspected harassment, discrimination or retaliation, by using the complaint reporting
procedure described in the Policy Against Harassment and Discrimination).
Nevertheless, if employees decide to post complaints or criticism, they should avoid using
statements, photographs, video or audio that reasonably could be viewed as malicious,
obscene, threatening, or intimidating, that might constitute harassment or bullying.
Examples of such conduct might include offensive posts meant to intentionally harm
someone’s reputation or posts that could contribute to a hostile work environment on the
basis of race, sex, disability, religion or any other status protected by law or company
policy. Employees are personally responsible for what they post, and the Company will
not assume any liability for those statements.
Employees should never represent themselves as a spokesperson for the Company.
Employees are not authorized to speak on behalf of the Company unless given specific
prior written approval from the Company.
24. DRESS AND GROOMING STANDARDS
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The Company expects all employees them to observe high standards in personal hygiene,
dress and grooming. In addition to reporting to work thoroughly clean, employees must wash
their hands after using the toilet, handling garbage or waste, or smoking. The Company may
set specific uniform and dress requirements for employees in addition to the standards set
forth below.
The following dress standards apply to all employees:
Clothes should be in good condition, clean without stains or holes;
Clothes may not be overly revealing including showing bare midriffs or underwear;
Sweat pants, jogging suits and tank tops are not perm itted;
Shorts and skirts may not be less than two inches above the knee; and
No clothing, or jewelry may show text or images that
o are gang-affiliated;
o contain hate speech, racial slurs, profanity, obscenity, vulgarity, sexual
connotations;
o constitute a violation of the Company’s harassment and discrimination policy;
o promote the non-adult or irresponsible use of cannabis and cannabis products;
or
o are contrary to the Company values or distracting or disruptive to the work
environment.
The following grooming standards apply to all employees:
All employees are expected to be well-groomed, bathed, and overall clean and
sanitary in appearance including their hair, teeth, hands and fingernails;
Moderation is expected with perfume and other fragrances as many of our customers
are sensitive to strong fragrances;
No tattoos or body art may show text or images that
o are gang-affiliated;
o contain hate speech, racial slurs, profanity, obscenity, vulgarity, sexual
connotations;
o constitute a violation of the Company’s harassment and discrimination policy;
o promote the non-adult or irresponsible use of cannabis and cannabis products;
or
o are contrary to the Company values or distracting or disruptive to the work
environment.
Any employee who needs a medical or religious accommodation to the Company’s dress
and grooming standards should contact the employee’s manager or supervisor.
Determination of whether an employee has violated dress and groom standards shall be
within the discretion of the Company. Employees that violate Company dress and grooming
standards are subject to disciplinary including termination.
25. EMPLOYEE IDENTIFICATION BADGES
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Pursuant to Bureau of Cannabis Control regulations, all employees must wear and/or display
their Company-issued identification badge at all times while on Company property.
The Company will provide a badge to each new employee. If the employee loses or
misplaces the badge, the Company will replace the original badge without change. For each
subsequent badge lost or misplaced by an employee within a twelve (12) month period, the
employee will be assessed a $20 charge for replacement of the badge.
26. DRUG, ALCOHOL AND SMOKING POLICY
The Company maintains a workplace that is free of alcohol and illegal drug use. Employees
who are under the influence of a drug or alcohol on the job that impairs their ability to
perform their job endanger their own health and safety, the health and safety of others, and
compromise the Company’s interests.
Accordingly, the following rules govern all Company employees:
1. With the exception of cannabis and cannabis products, possession of drugs or other
substances that are illegal under federal law or have been obtained in an illegal manner is
not permitted on Company property or while an employee is on duty.
2. Employees shall not report to work under the influence of or impaired by any of the
following:
Alcohol;
Cannabis or cannabis products; or
Drugs or other substances that are illegal under federal law or have been obtained in
an illegal manner.
3. Employees shall not smoke, vape, ingest, dab or consume in any manner while on
Company property or while on duty regardless of his or her location any amount of:
Alcohol;
Cannabis or cannabis products; or
Drugs or other substances that are illegal under federal law or have been obtained in
an illegal manner.
4. Employees must leave the premises to smoke tobacco or use an e-cigarette during a rest
or meal break:
Employees shall not smoke, vape, ingest, or consume tobacco, smokeless tobacco or
vaporized liquid containing nicotine in any manner on Company property including a
Company parking lot;
No smoking of tobacco or use of an e-cigarette shall occur within one hundred (100)
feet from any public entrance to Company property; and
Employees shall not display their Company-issued identification badge while smoking
off of Company premises.
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Employees that violate this policy are subject to disciplinary including termination.
Employees that are aware of any violations of this policy should report any suspicious activity
to their immediate supervisor or the Human Relations Department.
27. MOBILE DEVICE USE WHILE OPERATING A VEHICLE
The Company prohibits the use of all handheld mobile devices including cell phones, smart
phones, tablets, personal organizers, or other devices for work purposes while operating a
motor vehicle, or for personal purposes while operating a motor vehicle during working hours
or on Company business.
Employees may use hands-free mobile devices while driving when safe and lawful to do so.
Special care should be taken in situations where there is heavy traffic, inclement weather, or
the employee is driving in an unfamiliar area. Employees must adhere to all federal, state,
and local rules and regulations regarding the use of mobile devices while driving.
Under no circumstances are employees allowed to use mobile devices to write, send or read
any emails, text or other written messages for work purposes while operating a motor
vehicle, or for personal purposes while operating a motor vehicle during working hours or on
Company business.
28. INSPECTION OF PREMISES AND USE OF SURVEILLANCE CAMERAS
Employees should have no reasonable expectation of privacy other than their use of
restrooms while at work or on Company property.
Officials from California cannabis regulatory agencies may inspect Company premises
without prior notice and request the immediate production of records. All employees are
expected to comply with and follow any requests for entry and inspection of records by a
federal, state or local law enforcement or regulatory authority.
Furthermore, in compliance with California law, an extensive number of surveillance cameras
record all interior and exterior portions of the Company premises with the exception of
restrooms. The surveillance recordings are archived and stored for at least ninety (90) days.
The recordings are subject to the review of law enforcement and regulatory authorities
without prior notice.
29. ARBITRATION POLICY
Separate from this handbook, an agreement to arbitrate claims will be provided to each
employee.
Should any controversy, dispute or claim arise out of the workplace between an employee
and the Company, the Company will seek to resolve the matter through good faith
negotiation. Should informal resolution prove impossible, the Company and/or employee
must submit the dispute to a final, binding and non-appealable procedure known as
arbitration.
177
44
30. ACKNOWLEDGEMENT OF RECEIPT OF HANDBOOK
PLEASE READ THE EMPLOYEE HANDBOOK AND FILL OUT AND RETURN THIS
PORTION TO YOUR MANAGER WITHIN THREE (3) BUSINESS DAYS FROM YOUR
START DATE.
Employee Name: ________________________________
I acknowledge that I have received a copy of the Company’s Employee Handbook. I
understand that I am responsible for reading the Handbook and for knowing and complying
with the policies set forth in the Handbook during my employment with the Company.
Employee Signature: ________________________________
Date: __________________
178
Exhibit 17
Detailed Site Plans
Sheet A-1 – Vicinity Map, Property Diagram, Project Data
Sheet A-2 – Detailed License Premises
Sheet A-3 – Vicinity map, Site Map, Floor Plan, Project Data
Sheet A-4.1 – Safety Plan, Diagram, and Notes
Sheet A-4.2 – Safety, Emergency Action Plan Part One
Sheet A-4.3 – Safety, Emergency Action Plan Part Two
Sheet A-5 – Security Plan, Diagram and Notes
179
Exhibit 18
Real Estate Letter of Intent
187
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188
Exhibit 19
Letter of Support from San Leandro Councilmember
189
October 21, 2020
City of Fresno
2600 Fresno Street
Fresno, CA 93721
Dear Mayor, Councilmembers, Police Chief & City Manager,
I hope you are doing well, leading during this pandemic, and driving towards the change
necessary for our communities.
I send you this note to express my support for NUG Wellness’ continued expansion of their
operations into the City of Fresno. NUG Wellness is a valued member of the San Leandro
community, supporting local non-profits and donating two percent (2.0%) of its profits to the
Davis Street Family Resource Center.
Ever since the approval of its cannabis dispensary license, NUG Wellness (previously Davis
Street Wellness Center) has been a valuable resource for individuals looking, initially, for medical
cannabis for their health needs and now for adult-use, driving not only tax revenue to the City of
San Leandro, but also contributing to the well-being of the community. In my visits, I have seen a
secure and safe environment with friendly and knowledgeable staff who are ready to assist,
inform, and provide quality products for their clients.
Furthermore, NUG Wellness has been a significant contributor to San Leandro’s FY2019-2020
general fund. To date, NUG Wellness’ Measure NN gross receipts tax revenue has been
to the City’s General Fund, which is helping close a 40% gap in sales tax revenue due to
the economic recession.
Please feel free to reach out directly with any questions or concern.
Sincerely,
Ed Hernandez
Councilmember, City of San Leandro
ehernandez@sanleandro.org
(510) 842-6175
190
Exhibit 20
Indemnification Form
191
192
Exhibit 21
Zoning Inquiry Receipt
193
APPLICATION FOR RETAIL CANNABIS DISPENSARY
December 4, 2020
Applicant
HWC Partners, Inc.
Proposed Location
165 Broadway Street, Fresno, CA 93721
Primary Contact
John Oram, john@nug.com
33
8. Additional Required Items
8.1. Indemnification
Applicant’s indemnification of the City of Fresno is included as Exhibit 20.
8.2. Zoning Inquiry
A zoning inquiry application was submitted for the proposed location. A receipt of this submittal is
included as Exhibit 21.
8.3. Cal-OSHA Statement
Per FMC 9-3316(c), I certify that the applicant, HWC Partners Inc., will employ within one year or
receiving a commercial cannabis business permit in the City of Fresno, one supervisor and one
employee who have completed a Cal-OSHA industry outreach course offered by a duly authorized
training provider.
Signature: _______________________________ Date: ___________________
John J Oram, PhD
President & CEO of HWC Partners Inc.
8.4. Applicant Certification
I certify under penalty of perjury under the laws of the State of California, that I have personal
knowledge of the information contained in this application, and that the information contained
herein is true and correct.
Signature: _______________________________ Date: ___________________
John J Oram, PhD
President & CEO of HWC Partners Inc.
12-4-20
12-4-20
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
December 7, 2020 Please reply to:
Marisela Martínez
(559) 621-8038
John Oram
HWC Partners Inc
2601C Blanding Ave #408
Alameda, CA 94501
john@nug.com
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20-04649 REQUESTING INFORMATION
REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 165
BROADWAY (APN: 467-020-04)
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 P20-04649
165 Broadway
Page 2
December 7, 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 two cannabis retail businesses may be located in any one Council District.
If more than 14 are ever authorized by Council (more than two 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 559-621-8038 or at Marisela.Martinez@fresno.gov.
Cordially,
Marisela Martinez, Planner II
Development Services Division
Planning and Development Department