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HomeMy WebLinkAboutC-20-2 SLO Cultivations-Cresco RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-2 Submitted On: Dec 01, 2020 Applicant Erin Alexander erina@crescolabs.com Applicant (Entity) Name: SLO Cultivation, Inc. DBA: Cresco California Physical Address:City: Carpinteria State: CA Zip Code: 93013 Primary Contact Same as Above? Yes Primary Contact Name: David Gacom Primary Contact Title: Regional President, West Primary Contact Phone: Primary Contact Email: david.gacom@crescolabs.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: Rezil LLC Proposed Location Address: 736 Fulton City: Fresno State: CA Zip Code: 93721 Property Owner Phone: 559-260-6006 Property Owner Email:Assessor's Parcel Number (APN): 468-256-08 Proposed Location Square Footage: Supporting Information Application Certification Owner Information 25000 List all fictitious business names the applicant is operating under including the address where each business is located: The Applicant is not operating under any fictitious business names. For a complete license list, please see Criteria 1_ Business Plan. Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? Yes If so, please list and explain: SLO Cultivation, Inc. dba Cresco California applied for a Cannabis Retail Storefront License in Santa Barbara County, CA in November 2020. 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 Regional President, West 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. Business Name: SLO Cultivation/Cresco Application #: C-20-2 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 - 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 6 Needs more detail Construction Contingency Factor Included: Score 6 6 6 All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 4 Needs more detail Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 3 Some explanation provided, not detailed Operation and Maintenance Cost Estimates: Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 6 Needs more detail on salary/personnel related expenses All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 4 Fairly detailed except salary catagories Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 4 Some costs escalated but no explanation Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 3 Some explanation provided, not detailed 1.2 Sub-Total:50 36 Proof of Capitalization Specific to one or more Owners: Score 5 5 - Proof of Capitalization Specific to Business Name/Address: Score 5 5 5 Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 0 Capitalization for but they estimate in start up costs. 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: Certified Audited Financial Report Provided for one or more Owners: Score 5 5 - Score one of the following for a maximum 20 points: Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 - Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 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 15 Three Years of Data Provided: Score 10 10 8 6 8 Very detailed in some respects, but costs such as payroll and operating expenses not very detailed. 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 3 Needs more detail Total Property Rental or Purchase Costs Provided:2 2 2 Listed as facility expenses Total Utilities Costs Provided:2 2 May be considered under facility expenses but not explained or enumerated Total Cannabis Product Purchase Expense Provided 2 2 2 All Contract Services Identified:2 2 Annual Net Revenue Identified:3 2 2 Annual Cost Escalators Identified:4 4 3 2 3 Can see some costs increase year over year but no explanation Annual Estimated Sales Tax Payments to State Provided:2 2 2 Just listed as tax Annual Estimated Sale Tax Payments to City of Fresno Provided:5 2 0 Not specifically listed Annual Business Tax License and Cannabis Permit Fee Provided:2 2 2 In one area lists excise tax 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 35 Hours of Operation Provided: Score 5 5 5 Hours of Operation Provided for all 7 days of the week: Score 3 3 0 Did not specify days of the week Hours of Operation Provided for Holidays: Score 2 2 0 Holidays not specified. Opening and Closing Procedures Provided: Score 10 10 8 6 8 Did not discuss security process for opening/closing facility. 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 13 1.6.1 Fully describe the day-to-day operations if your applying for a retail permit: 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: i. Describe customer check-in procedures.20 20 15 10 15 Does not describe how it will verify medical marijuana prescriptions - 18 years+ 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 Biotrack, 9 POS locations iv. The estimated number of customers to be served per hour/day.20 20 15 10 10 865 customers per day- doesn't describe per hour or method of estimation 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 1.6 Sub-Total:100 85 Section 1 Total:300 212 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 Definition of Living Wage Provided: Score 5 5 4 3 5 Living Wage Defined as Greater than Minimum Wage: Score 5 5 5 2.1 Sub-Total:20 20 Wages and Salary CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 5 CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5 0 Health Care Benefits CCB Offers Medical Coverage to All Employees: Score 5 5 5 CCB Offers Dental Coverage to All Employees: Score 3 3 3 CCB Offers Vision Coverage to All Employees: Score 3 3 3 CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1 1 Employee Pays $0 for Employee Medical Premium: Score 3 3 0 premium amount unspecified Employee Pays $0 for Employee Dental Premium: Score 2 2 0 Employee Pays $0 for Employee Vision Premium: Score 2 2 0 Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision): Score 2 2 0 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 5 Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 0 holidays not specified 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 per State requirements Retirement 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: Offers employee retirement plan 2 2 2 Offers company match for employee retirement plan 2 2 2 up to match annually 2.2 Sub-Total:50 29 CCB Provides Tuition Reimbursement for Certificates: Score 3 3 0 Tuition reimbursement unspecified CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations Training: Score 3 3 0 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 10 Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 No such data provided Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 10 Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 0 No hiring target outside of FMC commitment 2.4 Sub-Total:50 30 Owners Number of Owners:2 entities, 1 individual 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 51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40 0 Less than 50 percent of the Owners live or own a business in the Cityf no owners are local, score zero)20 20 0 Managers Number of Managers (salaried, non-owners)unspecified Number of Managers that live in the City of Fresno:0 Number of Managers that Own a Business in the City of Fresno:0 100 percent of the Managers live or own a business in the City: Score 20 20 0 0 75 to 99 percent of the Managers live or own a business in the City: Score 15 15 0 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: CCB offers in-house training and intends to partner with local colleges to offer access to cannabis-specific courses. Criteria Narrative: Data, non-scored. Write response in Evaluation Notes column. 50 to 74 percent of the Managers live or own a business in the City: Score 10 10 0 0 Less than 50 percent of the Managers live or own a business in the City: Score 5 5 0 2.5 Sub-Total:80 0 Responsibilities Described for All Titles/Positions: Score 20 20 15 10 15 Does not specify the number of employees hired within each position. 2.6 Sub-Total:20 15 Does CCB have more than five employees: 5 5 5 Starting with 14 total employees CCB has signed a peace agreement: Score 5 5 5 Signed with Teamsters 2.7 Sub-Total:10 10 Work Force Plan Provided: Score 10 10 8 6 10 Commitment to Local Hire Provided:10 10 8 6 10 Committed to Exceeding role Commitment to Offer Apprenticeships Provided:10 10 8 6 10 Commitment paying for continuing education provided 10 10 8 6 6 provided in-house paid regular salaries. No committment to paying for outside CE. Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10 2.8 Sub-Total:50 46 CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 100 Existing SEED Community Incubator Mentorship and Training: Score yes Equipment Donation: Score Shelf Space: Score Legal Assistance: Score Finance Services Assistance: Score yes Other Technical Assistance: Score Financial assistance (non-equity) 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 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: one specified manager lives in the County of Fresno 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) Section 2 Total:400 255 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 10 CCB will established a dedicated contact person to receive complaints: Score 10 10 10 CCB will establish a dedicated phone number to receive complaints: Score 5 5 5 CCB will establish a dedicated email address to receive complaints: Score 5 5 5 CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 5 CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation: Score 10 10 10 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 45 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 10 CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 50 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 60 CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Not provided. 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 0 Not provided. 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 5 CCB will install a nuisance odor monitoring system: Score 10 10 0 Not provided. 3.3 Describe odor mitigation practices.(40 points possible) Criteria Narrative: 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) 3.3 Sub-Total:40 20 CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 6 Need more detail. Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans. 3.4 Sub-Total:10 6 Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 6 Need more detail. Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 6 Need more detail. Odor control measures are identified for different nuisance odor sources: Score 10 10 10 3.5 Sub-Total:30 22 Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures: Score 10 10 10 Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting.10 10 10 3.6 Sub-Total:20 20 CCB has identified the sources of waste generated by the business operation: Score 10 10 10 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 need 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 0 Not provided. 3.7 Sub-Total:50 38 Section 3 Total:300 211 SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant: Score 10 10 10 Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 10 Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 0 no mention of building Safety Plan includes Site Plan of Premise: Score 10 10 0 no site plan 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: 4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible) Criteria Narrative: 3.7 Describe the waste management plan. (50 points possible) Safety Plan includes Building Layout Plan: Score 10 10 0 no bldg layout 4.1 Sub-Total:50 20 Written Accident/Incident Procedure Provided: Score 20 20 15 10 0 only mentioned theft in this section Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 Total Number of Scenarios Described: Score Active Shooter Incident Described: Score 10 10 0 Robbery Incident Described: Score 10 10 0 4.2 Sub-Total:50 0 Evacuation Plan Provided: Score 20 20 15 10 15 moderate details Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 20 Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 5 did not show overall site plan 4.3 Sub-Total:50 40 Location of Fire Suppression System Elements Identified: Score 10 10 0 no locations shown 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 40 Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 20 Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 20 Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 10 mentioned-no details Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 not mentioned Other Medical Emergency Conditions Described: Score 20 20 15 10 10 5 mentioned-unrelated to this area (tornado, flood) 4.5 Sub-Total:100 60 Section 4 Total:300 160 SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 Security Plan Prepared by Consultant: Score 10 10 10 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 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) 5.1 The Security Plan shall be prepared and/or assessed by a professional security 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: 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 50 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 0 Not clearly marked Number and Location of All Security Cameras Identified: Score 5 5 5 5.2 Sub-Total:50 45 Intrusion Alarm and Monitoring System Identified: Score 15 15 15 Name and Contact Information for Monitoring Company Provided: Score 5 5 0 No contact information 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 45 Written Cash-Handling Procedure Provided: Score 30 30 20 15 30 Dual-Custody is Practiced for all cash handling: Score 10 10 10 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 10 Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20 5.4 Sub-Total:100 100 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: 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. 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:300 290 Section 1: Business Plan Total Points:300 212 Section 2: Social Policy & Local Enterprise Total Points:400 255 Section 3: Neighborhood Compatibility Total Points:300 211 Section 4: Safety Plan Total Points:300 160 Section 5: Security Plan Total Points:300 290 Total Points Achieved:1600 1128 70.50% 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: 5.5.3 Locations at which they will be positioned. 5.5.4 Guards' roles and responsibilities. 1. BUSINESS PLAN SLO Cultivation, Inc. dba Cresco California (“the Applicant”), already a leader in the California cannabis industry, is submitting an application for a Cannabis Retail Business license in the City of Fresno. With over 70 employees in California already, the Applicant combines its existing local knowledge with the national experience of Cresco Labs (“Cresco”), the Applicant’s Parent Company and a leader in regulated cannabis. This combination has already led to the Applicant’s 25 licenses in Santa Barbara County and 2 licenses in Fresno County, resulting in the Applicant’s products being on the shelves of 450 dispensaries across California. The Applicant will utilize Cresco’s proven retail processes and procedures, tested in some of the most highly regulated markets, to ensure speed-to-operation, customer satisfaction, safety and security, and community engagement. Similar to Cresco’s current operations, the Applicant will not outsource or franchise any part of its operation; it will own, operate, and manage the cannabis retail business license utilizing Cresco’s infrastructure and best practices to create a successful team. Over the past 3 years, the Applicant has been building out a best-in-class organization that puts the California consumer and community at the heart of its business. The Applicant is part of a vertically integrated company that is able to institute quality and control checks at each step in its processes, ranging from grow and cultivation to processing, manufacturing, and packaging, to distribution, and now retail, a distinct advantage in California. The Applicant believes this integration will benefit the community, ensuring the Applicant and the community win together, as the Applicant is able to control each step in the process, from seed to sale. Throughout this application, the Applicant will describe why it is the best choice for the City of Fresno: its proven track record in California regulated cannabis and its access to Cresco’s capital, talent, and experience in other regulated cannabis jurisdictions, an unparalleled advantage in the City of Fresno. In this section, the Applicant will describe the intended cannabis activities if awarded a cannabis retail business license, including how it will operate in accordance with City, state law, and other applicable regulations while contributing to and enhancing the Fresno community. Business Overview The Applicant intends to operate a cannabis business retail license, operating both as a brick-and- mortar cannabis retail business at 736-742 Fulton Street, Fresno, California, and a non-storefront delivery service. The Applicant will own, operate, and manage its retail business and will work directly with the City of Fresno and the residents to implement a hands-on, community-centric business model. The Applicant made a deliberate decision to locate in Downtown Fresno based on a variety of factors, including centralized location, access to and opportunities with the community, and the opportunity to expand access of regulated and professional cannabis to the residents of the City of Fresno. If granted the cannabis retail business license, the business will maintain the following permits and authorizations: City of Fresno Commercial Cannabis Business Permit; 1 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Cannabis Conditional Use Permit; and Bureau of Cannabis Control (“BCC”) Type 10 Retailer License, both “A” and “M” designations. In accordance with the above, the Applicant will only sell Cannabis Goods, Cannabis Accessories, and Branded Merchandise, as defined by the BCC. All Cannabis Goods will be procured from duly licensed cannabis distributors. The Applicant is unique in that it is part of Cresco, which has one of the most substantial distribution networks in California. The Applicant’s inventory will include both adult-use and medicinal products, provided that Cannabis Goods will be sold only to persons 21 years or older as confirmed by valid photo identification, or to patients 18 years or older, who possess a current physician’s recommendation. Quality Assurance Activities One of the most important facets of a cannabis business retail license is ensuring that the products sold to purchasers have been inspected to meet rigorous quality assurance standards. The Applicant’s quality assurance activities will ensure that all Cannabis Goods are checked prior to sale to ensure that they are within their best-by, sell-by, and expiration dates; are labeled and packaged in accordance with the State’s requirements; and have been laboratory tested and are accompanied by a certificate of analysis with a matching batch number. Storefront Sales Activities The Applicant’s storefront sales activities include the brick-and-mortar cannabis retail business, which will be open only to persons over the age of 21 or persons over the age of 18 who hold a valid physician’s recommendation. All identification and recommendations will be verified by onsite security at the point of entry (see Premises (Security) Diagram in Criteria 5). The retail area will include displays of products for sale and will be staffed by trained Wellness Advisors (dispensary employees) who are over the age of 21. As set forth in this application, Wellness Advisors will receive extensive sales, safety, security, and product training and will assist customers with selecting and purchasing products. The Applicant will ensure that all customers and patients only purchase Cannabis Goods up to their respective daily limits as defined by the BCC, and that all Cannabis Goods purchased will be placed in an opaque exit bag prior to the customer’s departure. The Applicant will not allow any cannabis consumption on the premises. Non-Storefront Sales Activities The Applicant’s non-storefront sales will include non-storefront delivery services to valid customers and patients. Orders will be taken through a technology platform that will clearly identify the Applicant as the retailer, via phone, or through a web-based application. All deliveries will be conducted by drivers at least 21 years of age, in vehicles that conform to the BCC’s requirements. eliveries will only be made to privately-owned physical addresses in the State of California. Prior to completing any delivery, the driver will verify the customer’s age and identity. 2 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL The Applicant’s Experience The Applicant brings existing cannabis experience within California and Fresno County to its plan for business operations – this experience alone distinguishes it from other applicants. The Applicant is well-versed in state law as well as other applicable regulations, because of its experience owning and operating a manufacturing and distribution facility in Mendota, California. Upon the award of this cannabis business retail license, the Applicant will be the one of the only operators in California that will be fully integrated, from seed to sale, which will give it a significant advantage. In addition, the Applicant owns and operates a substantial production facility in Carpinteria, California, furthering its California regulatory and market knowledge. Through its operations in both Fresno County and Santa Barbara County, the Applicant has developed significant ties to the California cannabis community and has implemented measurable programs to ensure a holistic approach to regulated, professional cannabis. In addition to its in-state and local experience, the Applicant also has the significant advantage of Cresco’s experience owning, operating and managing retail, cultivation, manufacturing, and distribution facilities across the country. Cresco is a leader in dispensary operations nationwide – owning and internally operating over 20 dispensaries in some of the most regulated cannabis retail markets, including Illinois, Pennsylvania, New York, Massachusetts, Ohio, and Arizona with additional dispensaries coming online in late 2020 and 2021. A few of Cresco’s key dispensary accomplishments are: opening the first dispensary in Pennsylvania in 2018; receiving the first dispensary certificate of operation in Ohio in 2018; and having the first adult-use sale in Illinois on January 1, 2020. These accomplishments represent Cresco’s commitment to quick-to-market and compliant operations. This quick-to-market approach is based on Cresco’s model to apply, design, build-out, prepare, and operate its facilities. Cresco’s retail model promotes a compliance-centric business, developing all standard operating procedures (“SOPs”) in advance of dispensary operations and reviewing them for location-specific details before inspection. Cresco has a team dedicated to new market integration that focuses on marrying local compliance with Cresco’s successful and tested best practices. Before inspection, the new market integration team assesses all operations and consults with local partners to ensure the community is engaged each step of the way. Cresco is dedicated to being quick-to-market, but will not cut corners and is committed to ensuring that all operations are thoughtfully planned out, problem solved, and add value to both the community and business. A comprehensive list of the Applicant’s licenses and Cresco’s licenses is attached hereto as Exhibit A. The Applicant’s Goals and Considerations for Operations in Fresno 1. Safety and Security: As set forth in Criteria 4 and 5, the Applicant is committed to implementing safe, secure, and discreet business operations. The Applicant has created a robust security plan that ensures safe dispensing, delivery, cash handling, and secure access controls. Considering the Applicant’s location in downtown Fresno, the Applicant has leveraged Cresco’s experience operating dispensaries in heavily trafficked downtown areas. In addition, the Applicant understands that the City of Fresno requires exceptional 3 coordination between its dispensaries and the local police – experience the Applicant brings through Cresco’s dispensary operations. The Applicant will utilize Cresco’s Retail Security Director, plans, and experience securing dispensaries in highly regulated areas. This experience will ensure that the Applicant’s security measures are intact and prepared before day 1. 2. Social Policy: Leveraging Cresco’s Social Equity and Education Development (“SEED”) program, the Applicant’s social policy plan will not only benefit its employees but will also enhance the surrounding community. The Applicant’s social policy plan ensures that each of its employees will make a living wage and have access to Cresco’s benefits program. The Applicant has also created a plan for local hiring and equitable hiring to comply with all of the City’s rules and regulations. In addition, the Applicant will utilize Cresco’s training program to promote education among its employees. The Applicant has also signed a Labor Peace Agreement with the Teamsters Local Union No 853. The Applicant has also created a plan for an incubator program. For more information on the Applicant’s Social Policy plan, please see Criteria 2. 3. Neighborhood Compatibility: The Applicant is dedicated to creating a cannabis retail business focused on education and wellness that furthers the City of Fresno. The facility will be a pillar of safe, and compliant cannabis business within Fresno. The Applicant will establish its retail operations under Cresco’s Sunnyside* brand – a cannabis retail business that professionalizes and normalizes cannabis while considering the community around it. One of the reasons the Applicant has decided to adopt Cresco’s Sunnyside* brand is its emphasis on education and wellness within the realm of cannabis. Sunnyside* has the distinct advantage of being able to adjust to the community’s needs and provide the education and peace of mind the community wants for a downtown commercial cannabis business. In addition, the Applicant has created a community plan that focuses on what the Applicant can do to further the community’s goals, including local sponsorships, environmentally conscious programs, and social policy programs. For details on the Applicant’s neighborhood compatibility plan, please see Criteria 3. 4. Community Benefits and Investment: The Applicant is dedicated to being a responsible neighbor and trusted steward of Fresno’s community values. The Applicant will provide local community support by aiding, participating in, and funding the work of local nonprofits, community-based organizations, civic organizations and social service organizations through event and program sponsorship, volunteering, providing educational resources and both monetary and in-kind contributions. The Applicant has already identified 5 local organizations to partner with to support its social responsibility educational initiatives. For details on the Applicant’s social responsibility and educational outreach, please see Criteria 7. 1.1 Owner Qualifications The Applicant has a significant breadth of experience in California’s regulated commercial cannabis market. The Applicant owns and operates a substantial production facility in Carpinteria, California and a manufacturing and distribution facility in Mendota, California. 4 The Applicant already has a team of experienced professionals in California prepared to execute the Applicant’s retail vision in Fresno upon licensure. But not only does the Applicant have a team in California, it will be able to rely on Cresco’s subject matter experts across the country to provide a superior level of support and service to the operation. The combination of the Applicant’s local presence and Cresco’s national retail expertise make the Applicant the best choice for the cannabis customers and patients in Fresno. In this section, the Applicant shares its owners’ exceptional qualifications, expertise, and demonstrates why selecting the Applicant would be the best choice for the City of Fresno. The Applicant’s cannabis experience is incomparable and, if selected, the proposed cannabis retail business will be a model for retail operations in California. The Applicant The Applicant was founded by its current board member and California native, Kyle Hardy, in 2015 as a Proposition 215 and SB 420 compliant cultivation collective. The company was originally known as TerraTru. Through Hardy and Alex Brown, the Applicant has been an operational cannabis business in Santa Barbara County since 2015, after Hardy and Brown partnered with Applicant board members Rene Van Wingerden and Ivor Van Wingerden. In 2016, it was incorporated as a California Mutual Benefit Corporation with the express purpose of cultivating cannabis medicine for its members’ patients in Santa Barbara County and San Luis Obispo County. In 2018, the Applicant entered into an agreement with multi-state operator Cresco Labs that combined the national cannabis expertise and capital of Cresco with the local expertise and successful cultivation and distribution experience of the Applicant. The result was SLO Cultivation Inc. dba Cresco California. 2018 was also the year that the Applicant obtained its California cultivation, manufacturing, and distribution licenses under the California Medical and Adult Use Regulation and Safety Act (“MAUCRSA”). The Applicant owns and operates a large facility in Carpinteria, California where it secured state- issued provisional commercial cannabis licenses from the California Department of Food and Agriculture (“CDFA”), including 23 Cultivation Small Mixed Light, Tier 1 licenses, 1 Nursery license, and 1 Processor licenses. Located at 3861 Foothill Road, the Carpinteria facility houses production of outdoor flower and fresh frozen. The facility currently has 130,680 square feet of production – 60,000 square feet for flower production, 30,000 square feet for stock and propagation, 1800 square feet for plants in the vegetative state, plus square footage dedicated to refrigeration, office space, breakroom and storage. Carpinteria has approximately 60 plus employees. In addition to the vast cannabis operation in Carpinteria, the Applicant’s local employees are also actively involved in various community events and initiatives. The Applicant will follow this model of community activity for its operations in Fresno. The Applicant also owns, operates, and manages a manufacturing and distribution facility in Mendota (Fresno County), California where it holds the following provisional licenses: 1 Manufacturing Type 7 license, issued by the California Department of Public Health (“CDPH”) and 1 Distribution Type 11 license, issued by the BCC. The Mendota facility is located at 1269 Marie St. and is where the Applicant produces concentrates and edibles. The facility has 11,145 5 square feet: 4,200 for production, 732 square feet for storage, and 6,213 square feet for common areas, documents, and material storage. Mendota has approximately 40 employees. The Applicant’s Owners and Managers – Resumes 6 1.2 Budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility costs, and other operation costs. Finance Plan 14 Opportunity Sizing Model Anticipated Construction and Equipment Budget Anticipated Employee Compensation Budget 16 Anticipated Maintenance, Utility, and Other Operating Costs 17 1.3 Proof of Capitalization 18 1.4 Pro Forma 19 Sales Projections 20 Capex- Depreciation Schedule Profit and Loss Summary 21 1.5. Hours of Operation and Opening and Closing Procedures The Applicant’s proposed hours of operation are from 9:00 a.m. – 9:00 p.m. Pacific Time. The Applicant will always ensure that the hours of operation are approved by the City of Fresno and announced to members of the public should they ever need to change. The Applicant will utilize Cresco’s existing suite of SOPs, integrated with the Fresno Municipal Code (“FMC”) and BCC regulations, to ensure Wellness Advisors are equipped with easy-to-follow and step-by-step opening and closing procedures on day 1. The Applicant’s opening procedures include checking employee rosters, COVID-19 screenings, cash counting, menu verification and inventory, and preparing for deliveries. Closing procedures include closing the registers and vault, preparing all cash for deposit, completing all inventories, verifying all Wellness Advisor closing procedures are complete, checking out all employees, syncing and ensuring the cannabis retail business is prepared for the next day. The Applicant will always ensure that at least 1 dispensary manager is at the cannabis retail business for opening, and at least 1 dispensary manager and 1 Wellness Advisor are at the cannabis retail business for closing, in addition to security guards. Opening Procedures The Applicant’s opening procedures ensure that the cannabis retail business is ready for all daily activities before opening. This includes checking with all Wellness Advisors scheduled that they are prepared for their shifts and can pass a COVID-19 health screening, checking all cash from the previous night, checking all inventory and ensuring the online menu is up-to-date, preparing for deliveries if they should be coming in, ensuring all recordkeeping and inventory is correct in and and checking the cannabis retail business for preparedness. Opening Checklist for Dispensary Managers: 23 Closing Procedures 24 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Closing Checklist for Dispensary Managers: 25 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL 1.6. Daily Operations The Applicant’s plan for daily operations demonstrates its ability to run a cannabis retail business on a day-to-day basis while setting the standard for industry best practices. As previously mentioned, the Applicant will leverage Cresco’s retail experience to ensure consistent and efficient operations. The Applicant will also utilize its experience in California to ensure compliance with all California rules and regulations. The following section sets forth the Applicant’s plan for daily operations, including: (1) an overview of the Applicant’s cannabis retail business brand; (2) general rules and guidelines for the cannabis retail business; (3) marketing strategy; (4) customer check-in procedures; (5) receiving product; (6) inventory and storage; (7) POS systems; (8) sales procedures; (9) customer experience; (10) proposed product line; (11) retail delivery processes; (12) energy conservation initiatives; and (13) COVID-19 procedures. Sunnyside* Storefront The Applicant intends to use Cresco’s Sunnyside* brand as its cannabis retail business’ storefront name. Sunnyside* has been approved and launched in 6 states, including New York, Arizona, Illinois, Ohio, Pennsylvania, and Massachusetts, all of which require modest and tactful branding, which the Applicant will utilize at its Fresno location. Cresco developed the Sunnyside* brand with safe, secure, and discreet operations in mind. The brand bears no markings that denote that it is a cannabis company, which not only provides for discreet purchasing but also provides a more easily accessible and neighborhood-driven approach for new customers who are focused on the wellness aspect of cannabis. The façade has been designed to explicitly project a compliant and secure retail business. Customers can expect the physical environment to be inviting and warm, a source of everyday wellness. The retail business will preserve the brick exterior of the building to blend in with the local brewery district. The interior will have a gentle aesthetic of . All exterior and interior design elements will be crafted with superior materials and will be sourced locally, when possible. In addition to the exterior and interior design elements, the Applicant will keep the sidewalk, right of ways, and location perimeter free of litter, graffiti, and debris. The Applicant will also ensure the proposed location is provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose. (See Sec. 9-3308(e)(7)). 27 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL The signage at the retail business will say “Sunnyside*,” will be in compliance with Sec. 9-3309(h) of the Fresno Municipal Code (“FMC”), and will generally fit in with the surrounding neighborhood. The Applicant will ensure that dispensary signage meets all operating requirements set forth in Sec. 9-3309(h). In addition, the proposed location will conform to the General Plan, any applicable specific plans, master plans, and design requirements as required by Sec. 9- 3308(e)(2). For additional information regarding the Applicant’s neighborhood compatibility plan, please see the response to Criteria 3. To fully comply with the FMC, the Applicant’s proposed location will be within a fully enclosed building and cannabis will not be visible from the public right-of-way. See Sec. 9-3307(d)(1). The proposed location, zoned Downtown Neighborhood (DTN), also complies with all applicable zoning and related development standards as required by Sec. 9-3307(e)(3). See Zoning Inquiry Letter. As set forth further in Criteria 3, the facility will be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. Odors from the cannabis retail business will not be detectable from outside the premises, and best odor control technology will be used. See Sec. 9-3308(e)(4). Further, the Applicant has provided a neighborhood responsibility plan (see Criteria 3) so that the review authority may find that the proposed use and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance as outlined by Sec. 9-3308(e)(8). The Applicant has selected its proposed cannabis retail business location in Downtown Fresno, which will provide easy access for Fresno customers and is centrally located for residents. The proposed location is in Fresno’s brewery district on Fulton Street, directly east of Chukchansi Park. The location is central to downtown, but not in Fulton Mall, meaning there will be less foot traffic on the cannabis retail business’s side of the neighborhood. The facility will be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping, and all items required for the development in accordance with Sec. 9-3308(e)(5). In addition, the location is ideal to provide a quick response time from the Fresno Police Department (less than 1 mile away), in the unlikely event it is needed. Near multiple breweries and bars, and the cannabis retail business will be walkable from other pedestrian-friendly areas of Downtown while not being a part of the main walkway in the neighborhood. This location provides access for residents via vehicle, and for pedestrians over 21 who know the cannabis retail business’s location. Community Liaison The Applicant has designated a Community and Outreach Liaison for the Fresno dispensary in compliance with Sec. 9-3309(m). has been Applicant’s Community Liaison for its existing cultivation facility in California, since 2018. Stephan will expand her role for the Applicant’s proposed retail business in Fresno. Stephan is an active member of her community in and will further develop her connections in Fresno. Community members will be able to contact via phone for any concerns, questions, or community integration efforts. 28 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL The Applicant will provide information to all businesses and residences located within 100 feet of the facility for any problems associated with the facility. See Sec. 9-3309(m)(1). will be the Applicant’s designated emergency contact as required by Sec. 9-3309(g). See contact information above. The Applicant will also ensure that attends meetings along with the owner(s) and manager(s) with the City Manager and their designees to discuss costs, benefits, and other community relations during the first year of operation, and will continue these meetings as needed after the first year of business. Also, pursuant to Sec. 9-3309(m)(2), along with the owner(s) and manager(s) will meet with the City Manager and his/her designees whenever, and as frequently as requested by the City Manager and/or his/her designees. 1.6.1. Day-to-Day Retail Operations Overview To ensure full compliance with all rules and regulations, the Applicant has outlined daily guidelines to ensure the Applicant’s commitment to operating in a compliant manner. The Applicant commits working with the City of Fresno to ensure efficient and secure retail operations. The Applicant’s cannabis retail business plan utilizes SOPs, comprehensive training programs, recordkeeping practices, and inventory control procedures to ensure oversight of the organization and its employees. These SOPs, training documents, and records are available for the BCC upon request. The Applicant’s guidelines for retail operations include: (1) a commitment to all rules and regulations; (2) the retail staffing structure; (3) the Applicant’s SOPs for daily operations; and (4) a commitment to quality sourcing for all product. In accordance with Article 33 of the FMC, Sec. 9-3309, the Applicant will ensure: • Cannabis is not consumed by any person on the premises of the cannabis retail business (Sec. 9-3309(a)); • Alcoholic beverages will not be sold or consumed at the cannabis retail business (Sec. 9- 3309(b)); • Tobacco products will not be sold or consumed at the cannabis retail business (Sec. 9- 3309(c)); • No cannabis products or graphics depicting cannabis will be visible from the exterior of the property or on any vehicles owned by the Applicant (Sec. 9-3309(d)); • Cannabis will not be stored outdoors (Sec. 9-3309(d)); • The cannabis retail business will use a point-of-sale system to track and report on all aspects of the business including cannabis tracking, inventory data, gross sales, and other information as the City requires (Sec. 9-3309(e)); • The point-of-sale system will be compatible with the city’s recordkeeping systems and have the capability to produce historical transaction data (Sec. 9-3309(e)); • The point-of-sale system will be approved and authorized by the City Manager before use (Sec. 9-3309(e)); • All products sold, distributed, or manufactured will originate from State licensees who are in full compliance with both State and local laws (Sec. 9-3309(f)); • The Applicant provides the City Manager with an emergency contact who can be contacted at any hour of the day (See Contact Information for above and application portal submission) (Sec. 9-3309(g)); 29 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL • Business signage conforms to all requirements of Chapter 15, Article 26 of the Code (Sec. 9-3309(h)(1)); • No signs will obstruct any entrance, exit, or window of the building (Sec. 9-3309(h)(2)); • Each entrance will have a sign stating that consuming cannabis on premises is prohibited (Sec. 9-3309(h)(3)); • Business identification signage will be limited to that needed for identification only and will not contain any logos or information that identifies, advertises, or lists the services or the products offered. Advertising shall not be visible from the exterior of the establishment and shall be prohibited on the exterior of the establishment. The cannabis retail business will not advertise by having a person holding a sign and advertising the business to passersby, whether the person is on the premises or elsewhere including, but not limited to, the public right-of-way (Sec. 9-3309(h)(4)); • Signage will be limited to identification only and will not be illuminated (Sec. 9- 3309(h)(5)); • The Applicant agrees that as an express and ongoing condition of permit issuance and subsequent renewal, the Applicant will be prohibited from advertising any commercial cannabis business or cannabis retail business located in the city utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the State. This paragraph is not intended to place limitations on the ability of a commercial cannabis business or cannabis retail business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways. In addition, any cannabis advertising, including such advertising that is not connected to a cannabis business operating in the city, using any means described above, is strictly prohibited within the city limit (Sec. 9-3309(h)(6)); and • The Applicant will display the original copy of the business permit and business license inside the cannabis retail business visible to the public (Sec. 9-3309(k)). The Applicant’s retail procedures will ensure the cannabis retail business: • Has compliant and efficient operations; • Has no unlawful sales transactions or transfers are permitted or tolerated; • Implements handling procedures that prevent contamination of cannabis products; and • Has transparent retail operations. The cannabis retail business will only dispense cannabis from the State of California and will not obtain or transfer cannabis from a location outside of California. Cresco’s existing dispensaries in other markets are subject to similar restrictions. In addition, the Applicant is committed to complying with and working with the City of Fresno and all of the FMC’s rules and regulations, including the following operating requirements as outlined by Sec. 9-3310(a): • The cannabis retail business will only operate for public sales between the hours between 6:00 a.m. and 10:00 p.m. Pacific Time; • The cannabis retail business will not allow physicians to be located on the premises for evaluating patients for the issuance of a cannabis recommendation or card; 30 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL • All persons will have their age verified before entering the premises; • Entrances will be locked at all times and have strict control access procedures; • The cannabis retail business will only have the quantity of cannabis readily available to meet the daily demand for sale on-site; • All restrooms will remain locked; and • Delivery vehicles will be unmarked vehicles and have no markings or signage indicating they are transporting cannabis. Proposed Cannabis Retail Business Staffing The Applicant has created a comprehensive staffing structure that ensures that the cannabis retail business is always appropriately staffed. The plan (See Criteria 2 for full staffing plan) also emphasizes local positions and leadership to meet the Applicant’s local hiring goals and provide the community with in-house contacts for all questions and concerns. The Applicant will leverage other corporate employees within the State of California, as well as new retailer employees specifically allocated to the operations in Fresno. The Applicant’s Fresno cannabis retail business team includes: Dispensary Management: The Applicant will employ salaried Dispensary Managers who will be responsible for the facility in total, reporting to the Director of Retail Operations. These will be keyed employees who will have access to the cannabis retail business 24/7 and available for any and all emergencies. These employees will also be responsible for opening and closing procedures and making sure all cash management, recordkeeping, and inventory procedures are followed. Lead Wellness Advisors: The Applicant will employ Lead Wellness Advisors who will be responsible for their hourly shifts, including inventory management, delivery procedures, and the main point of contact for any in-store and delivery issues. These employees will also be the point employee for receiving procedures along with managers and assist Wellness Advisors with their regular activities. Wellness Advisors and Delivery Employees: The Applicant will employ part-time Wellness Advisors and Delivery Employees who are the main point of contact for each customer that walks into the cannabis retail business or receives a delivery. These employees will be responsible for customer education and dispensing procedures. Security Guards: The Applicant will contract Security Guards who will be responsible for ID checking, assisting and overseeing receiving procedures and premise security, watching for theft and diversion, and working with local law enforcement on emergencies, and other matters. For additional staffing information, please see the Applicant’s response to Criteria 2. Standard Operating Procedures The Applicant will leverage Cresco’s existing and robust document management system (“DMS”) and SOPs for its operations in Fresno. Cresco has over 4 years of experience creating and managing retail SOPs, including document change procedures, document ownership, regulatory requirements, training, and integrating/updating best practices. Cresco has a dedicated Quality 31 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Management Systems (“QMS”) team that manages all of Cresco’s SOPs for retail in all markets in which it operates, providing the dispensary teams a singular standard on which to operate. Each SOP is tailored to the market’s regulations while providing an overarching goal of maintaining best practices across all locations. The Applicant will utilize Cresco’s existing SOPs to adjust for California and City of Fresno regulations and standards to ensure that all employees have access to a robust set of SOPs from day 1. In an effort to ensure compliance and coverage of proper SOPs, in addition to Cresco’s SOP library, the Applicant also utilizes the compliance auditing and SOP software platform not only provides a platform for auditing operational compliance, but it also provides an additional full library of SOPs. In the event that an employee feels they need additional guidance on a regulatory mandate, SOPs are routinely monitored and updated for easy access. Sourcing The Applicant intends to source a significant volume of product from its own California operations, leveraging its local connections and operations. The Applicant has an advantage relative to its competitors; the Applicant’s retailer will be connected to one of the largest distributors in California, ensuring a reliable supply of high-quality products. With this license, the Applicant will be one of the only operators that is fully integrated from seed to sale in the state of California, and intends to leverage its operations to ensure that the retailer’s products reflect the Applicant’s robust connections and operations. Marketing The Applicant will utilize Cresco’s rigorous internal communications and marketing plan which includes internal marketing reviews, a committee review, and an industry standard review prior to the activation of any marketing. Before any marketing material leaves Cresco’s Marketing Department for further review, all marketing employees are instructed to review their material against an internal state-by-state document that outlines all state regulation for compliance. It also includes 4 general points for all material to follow: (1) no false or misleading claims; (2) does not include pictures of minors; (3) any health claims supported with substantive data or evidence; (4) does not encourage recreational use of cannabis (medical-only states). See CCR 16-42-4 5040 (2019). 32 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL In addition, Cresco released the industry-wide marketing and advertising standards and guidelines for all cannabis businesses nationwide. Cresco holds all of its marketing to these standards, which goes through 6 factors to consider for each piece of marketing: Guiding Principles, Promoting Responsible Consumption, Preventing Underage Appeal, Benefits of Cannabis Claims, Consumer- Facing Promotional Events and Merchandise, and Code Implementation, Reporting, and Education. These factors include 35 considerations and requirements for every piece of marketing that is released, which are reviewed as described below. The marketing material is then presented at a weekly meeting – the Marketing Compliance Committee (“MCC”) meeting – with Cresco’s internal stakeholders including the Legal Department, Compliance Department, Public Affairs Department, and Marketing Department. At this meeting, the MCC takes all submissions for the week and grades them on a ranking scale based on regulatory requirements, local ordinances, and general suitability for the area. The material is also scored against the marketing and advertising standards and guidelines described above to ensure it meets all internal standards. These safeguards ensure that no marketing material is released that does not consider the community, internal brand standards, and regulatory requirements. The Applicant will employ this review infrastructure for any marketing it intends to launch in Fresno. In line with the City’s values, the Applicant’s materials will never introduce child-friendly imagery, or appear near schools, or places that minors congregate. Additionally, the Applicant will adhere to all the City’s signage requirements. For more information on signage, please see the response to Criteria 3. As a part of its MCC review, the Applicant will ensure that all of its communications and marketing material meets all State and local regulations: • All marketing and advertising placements will comply with CCR 16-42-1 5040 (2019); • No Cannabis Goods will be alcoholic products or make the impression of alcoholic beverages as outlined by CCR 16-42-1 5040.1 (2019); and • All marketing and advertising will be geared toward and received only by persons above the age of 21 in accordance with CCR 16-42-1 5041 (2019); • All branded merchandise will be approved by the BCC in compliance with CCR 16-42-1 5041.1 (2019); and • The Applicant will not provide free cannabis goods to any person except as otherwise outlined by CCR 16-42-3 5411 (2019). General Marketing Strategy In line with Cresco’s standards for marketing, Cresco also ensures that each of its brands follows those same standards – including Cresco’s Sunnyside* storefront retail branding. The Applicant intends to utilize the Sunnyside* brand for this facility because its standards meet the need of the community for a safe, secure, and discreet storefront retailer. Sunnyside* focuses specifically on providing adults who are 21+ and curious about cannabis with a comfortable place to explore and shop. Sunnyside* began with a core belief that cannabis and wellness can work together to make daily life better for all kinds of people. While many are open to the idea of cannabis, it can still 33 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL feel complex and overwhelming – Sunnyside* provides the resource for learning focused on wellness. The Applicant will use out of home initiatives, digital, and in-store advertising, and compliant email marketing as its marketing methods. The Applicant may run promotions, such as a Pride Month initiative benefitting a local LGBTQ+ nonprofit, through fun discounts promoted on social media and via email to those who have given consent. As described above, each of these potential channels and corresponding messaging will be reviewed internally by the MCC to ensure full regulatory compliance. Sunnyside* focuses on making cannabis shopping simple for legal customers. Wellness Advisors (retail employees) are trained to shed light on the potential benefits of cannabis in ways that are relatable and easy to understand. Sunnyside*’s age-gated website features a live menu of high quality products with simple online ordering. The Applicant understands its customers’ needs and will provide a suite of products that include all methods of administration to help each customer. Sunnyside* will also offer private consultations by phone as requested, providing a simple method to learn without the pressure of being in public. The Applicant sees itself as a source for wellness and believes that cannabis and wellness work hand-in-hand to make everyday life better. In its social media platforms, the Applicant features wellness-adjacent activities and inspires customers to expand their daily health and wellness routines. The Applicant will further this mission by partnering with local wellness groups to create unique online programming. 1.6.1.i. Customer Check-in Procedures Ensuring that the business only sells cannabis goods to lawful customers is one of the Applicant’s most important objectives. The Applicant has detailed procedures to ensure that only those legally allowed to purchase cannabis goods will be permitted entry. To enter the cannabis retail business, customers will enter check in area, where IDs will be checked by security guards before entering the retail floor. Customers will be invited to browse the Applicant’s e-library of customer resources, product offerings, and product information on iPads or other company-operated tablets. The Applicant will employ point-of-sale (“POS”) stations, each equipped with a computer linked to As described herein, will be integrated with California’s track-and-trace system, 34 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL has the capability to produce historical transactional data and report on all aspects of the business as required by Sec. 9-3309(e). The Applicant will seek City Manager approval prior to using See Sec. 9-3309(e). The Applicant will only sell cannabis or cannabis-infused products to a customer who has been verified to be over the age of 21, a caregiver, or a medical patient over the age of 18 as outlined by Sec. 9-3309(i)(1). In addition, the entrance to the cannabis retail business will have a clearly legible notice stating that no person under the age of 21 years of age is permitted to enter the premises, unless they are over the age of 18 and a valid medical patient. See Sec. 9-3309(i)(2), (3). Wellness advisors will prompt everyone that enters the building to show government-issued identification and engage in the following activities: verify the age of each customer using an electronic reader; verify the validity of the customer’s government-issued identification card; and offer any appropriate customer education or support materials. Identification to enter the cannabis retail business must contain a name, photograph, and date of birth, and will be limited to: • A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, height, gender, and photo of the person; • A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, height, gender, and photo of the person; • A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo; or • A valid passport issued by the United States or by a foreign government. All employees will receive training on how to identify fraudulent, invalid, expired, or otherwise unacceptable identification and how to reject service to unauthorized patrons. Identification must be valid, unexpired, contain a photograph, and the date of birth of the person. A security guard will be onsite to assist with greeting customers, accommodating mobility pathways through the check-in area, and ensuring the customer-entry is locked and secured when not in use. The Applicant will explain and train the check-out process extensively during new employee orientation. The Applicant understands that this is the area where most mistakes can occur and accordingly also is the area where the Applicant has the most safeguards in place. IDs will be redundantly checked upon check in at the door, then again upon customer/POS check in by the specific cashier, then verified one last time immediately prior to closing the transaction. This articulates multiple points of verification, training, and also multiple people involved in the verification process. Wellness advisors will be trained to prompt each customer to show government-issued identification and engage in the following activities: • Verify the age of each customer using an electronic reader; • Verify the validity of the customer’s government-issued identification card; and • Offer any appropriate customer education or support materials. 35 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL All employees will receive training on how to identify fraudulent, invalid, expired, or otherwise unacceptable identification and how to reject service to unauthorized patrons. Identification must be valid, unexpired, contain a photograph, and the date of birth of the person. The Applicant will also place an ID checking guide which features IDs from all US states and territories. Lastly, the Applicant will also put “If you were born before…” signs at the registers, and provide signage around the cannabis retail business prohibiting minors as well. Customer Access In compliance with CCR 16-42-3 5400 (2019) and as described above, the Applicant will require customers, patients, and caregivers to produce a government-issued identification at the check-in area to enter the cannabis retail business as described above. Limited access areas (“LAAs”) will not be open to customers, and all interior areas of the facility require an electronic card to access. Additionally, the Applicant will ensure at least 1 employee is physically present in the retail area at all times when customers are in the retail area in compliance with CCR 16-42-3 5402(b) (2019). See Sec. 9-3309(i). In addition, the Applicant will ensure that its entrance will always be locked by a “buzz-in” electronic/mechanical entry system as outlined by Sec. 9-3310(a)(4). The Applicant will refuse to sell cannabis goods to any individual who is 18 years of age and does not have a valid physician’s recommendation for medicinal cannabis or is not a primary caregiver or any individual who is under 21 years of age in compliance with CCR 16-42-3 5404 (2019) and Sec. 9-3309(i)(4). The Applicant will not allow customers to be present on the licensed premises or sell to a consumer outside of the Applicant’s business hours. When the cannabis retail business is not open for business, the premises will be securely locked with commercial-grade, nonresidential locks and an active alarm system. The Applicant will ensure that only employees of the licensee and specific designated individuals are allowed to access the premises during off hours. See CCR 16-42-3 5403 (2019). Customer Education The Applicant puts customer education at the heart of its business model. The goal of customer education is straightforward: to make a rapidly evolving and expanding universe of cannabis products understandable and accessible to the full spectrum of medical patients and adult-use consumers, from connoisseurs to the newly “canna-curious.” To this end, the Applicant and Cresco invest heavily in both internal and outward-facing initiatives. As detailed below, these initiatives will allow the Applicant’s proposed cannabis retail business to be a leader in educating its customers and empowering them to make healthy, rewarding, and responsible choices. To ensure consistency in customer education, the Applicant will leverage Cresco's 3 primary paths to deliver information to its retail customers: (1) Wellness Advisor (retail employees) interactions; (2) online resources; and (3) product packaging and displays. 36 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Wellness Advisor Interactions Face-to-face conversations with customers are opportunities for dispensary employees, known as Wellness Advisors, to share their expertise and provide individually-tailored guidance within the confines of state and local regulations. To maximize the benefit of these interactions, all Wellness Advisors – including the Applicant’s prospective staff for the proposed Fresno cannabis retail business – undergo a rigorous 30-day training course, covering cannabis education and safety, state and local regulations, and company operating procedures. The Applicant's Wellness Advisors will also each receive 40 hours of on-the-job coaching within their first month of employment, supplemented by regular product-specific trainings from the cannabis retail business's vendors. Online Resources Cresco has created a dedicated, age-gated website (sunnyside.shop) for its Sunnyside dispensaries. The website features a “Learn” section, where existing customers, prospective customers, and any other interested adults can access to a host of educational content regarding cannabis. Topics include: (1) a glossary of common cannabis terminology; (2) characteristics of the major cannabinoids, THC and CBD; (3) descriptions and comparisons of various product forms (flower, edibles, topicals, etc.); and (4) an explanation of indica, sativa, and hybrid strains, and the dominant effects generally associated with each one. The Applicant intends to leverage this model and content for use in Fresno. Product Packaging and Displays Product packaging and displays are also an important component of the Applicant's customer education strategy. Once patrons enter the display area of the proposed cannabis retail business, they will encounter sample products, organized by type and brand, which they will have the opportunity to inspect and physically interact with under the guidance and supervision of the Wellness Advisors. The Applicant's objective in curating and organizing its product offerings will be to present customers with a well-balanced and intuitive menu. The Applicant’s status as a vertically integrated operator in California gives it an important advantage in this regard, as it can play a direct role in shaping the Applicant’s product selection. The Applicant will utilize customer needs and community feedback when selecting and altering its product lineup based on sales metrics, product requests, and other comments. 37 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Potency, Effects, and Varieties of Products Safe, consistent, and rewarding cannabis experiences start with selecting the right product and thoroughly understanding its characteristics prior to consumption. This will only become more important as the diversity of available cannabis products and consumption methods continues to expand. Training for the Applicant’s retail employees will therefore focus heavily on matching consumer needs with appropriate products and – most importantly – ensuring that consumption instructions and potency are clearly communicated. Additionally, the Applicant’s standard operating procedures include quality assurance protocols to ensure that all products sold in the cannabis retail business are prominently and accurately labeled with: (1) a clear, concise description of their contents; (2) their potency, i.e. THC and CBD levels; and (3) for non-flower products, instructions on proper dosing and use. In-Store Signage Drawing on the collective knowledge and experience of Cresco’s operational dispensaries throughout the country, the retail design team has developed an in- store signage system that compliments the work of its Wellness Advisors and helps guide customers through the dispensaries’ display areas. The signage categorizes products by type and brand, and includes prompts that encourage customer questions. In addition to displaying Sunnyside’s in-store signage, the Applicant may use brand-specific displays and signage, once they pass quality assurance reviews for accuracy and compliance. Informational Markings on Packages The Applicant will conduct thorough inspections to verify that every product it receives conforms to all state laws, regulations, and best practices for labeling. This verification process is a part of the Applicant’s receiving procedures outlined herein. This will encompass checking for compliance with the California Department of Public Health’s (“CDPH”) labeling requirements, including that products clearly display: 1) the nature of their contents; 2) the identity and contact 38 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL information of their cultivator or manufacturer; 3) their net weight; 4) a unique track-and-trace identifier; 5) their cannabinoid contents; and 6) their date of packaging for retail sale. Health Warnings When used responsibly, cannabis has the potential to improve and enrich the lives of both medical patients and adult-use consumers. However, as with any mood-altering substance, it can also be misused. Cresco Labs and the Applicant are dedicated to minimizing this risk, by ensuring that every cannabis product sold in the proposed cannabis retail business displays California’s universal symbol and government warning on its outer packaging: GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION. The Applicant will also require all inhalable products to carry a Proposition 65 carcinogen warning. Any product not conforming to these specifications will be re-labeled, returned, or destroyed, consistent with BCC and CDPH regulations. Customer Education and Wait Times The Applicant understands that demand will vary depending on the day and time and will adjust staffing and inventory resources according to demand. Sales records will be comprehensive, and employees will use reports generated by to predict rush hours, forecast discounted inventory, and allocate labor hours to handle peak demand. The cannabis retail business will have a rapid check-in system and a large sales area, allowing customers and potential customers to browse inside the cannabis retail business for a longer duration. For additional information regarding the layout, please see Criteria 6. The duration of transactions is dependent on many factors, including whether a customer knows what products they want to purchase before entering the cannabis retail business, the depth of the one-on-one employee-consultation that all customers will have on each visit, and the overall design of the facility. The Applicant will ensure that each of its Wellness Advisors is trained on how to handle peak demand and large amounts of customers. Wellness Advisors will be trained on providing thorough but efficient education, ensuring that each customer receives the time and attention they need to understand and feel comfortable about the product they choose. 39 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL 1.6.1.ii. Receiving Product The Applicant has a suite of receiving and unloading protocols ready for compliant operations on the first day of operations. Employees will adhere to strict unloading/loading protocols and regulations pursuant to CCR 16-42-3 5422 (2019) and CCR 16-42-3 5423 (2019) related to receiving cannabis products including physical reception of the cannabis, inventory logging, recordkeeping, and secure storage. Loading and unloading cannabis products will occur away from point of sale (“POS”) areas and only a limited number of employees will participate in receiving cannabis from secure transporters in accordance with CCR 16-42-3 5422(c) (2019). Receiving will only happen in an area that is being recorded on the Applicant’s cameras, in the presence of at least 2 employees including a manager, plus security personnel, and between the hours of 6:00 a.m. and 10:00 p.m. Pacific Time in compliance with CCR 16-42-3 5422(b) (2019). For a visual understanding of where receiving activities will occur, please see Criteria 6, Receiving/Eradication Room. The Applicant already has an active account within California’s track-and-trace system, for its cultivation, distribution, and manufacturing operations and it will create and maintain an active and functional account for its cannabis retail business license prior to engaging in any retailer activity. The Applicant intends to use as its internal automated data processing and point of sale system. Cresco has experience in other markets using and integrating it with METRC. Employees will input the following data into and as necessary: 1. Name and type of the cannabis products; 2. Unique identifier of the cannabis products; 3. Amount of the cannabis products, by weight or count, and total sale price wholesale cost of the cannabis products, as applicable; 4. Date and time of the activity or transaction; 5. Name and license number of other licensees involved in the activity or transaction; 6. If cannabis products are being destroyed or disposed of: a. The name of the employee performing the destruction or disposal; b. The reason for destruction or and disposal; and c. The name of the entity collecting and processing the disposal of cannabis waste; 7. Description for any adjustments made in including, but not limited to: a. Spoilage or fouling of the cannabis products; and b. Any event resulting in damage, exposure, or compromise of the cannabis products. 8. Any other information as required by any other applicable licensing authorities. 40 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Product Packaging and Labeling The Applicant will inspect and verify inventory shipments prior to order acceptance as described above, including visual inspection of product and confirmation of compliant packaging, labeling, use and dosage information. The Applicant will evaluate compliance with regulatory requirements, adherence to internal quality assurance and quality control standards, and accuracy of the order. This includes ensuring all packaging is accurate and matches the manifest, that all product appears to be in quality condition, packaging/product has not deteriorated or been adulterated, and that inventory is accurately reflected on the manifest. The Applicant will only accept Cannabis Goods from a licensed distributor and will not engage in any packaging or labeling of Cannabis Goods in accordance with CCR 16-42-3 5412(a), (b) (2019). The Applicant will also not accept any Cannabis Goods from a distributor that are not packaged for final sale in full compliance with BCC regulations. In addition, the Applicant’s Receiving Manager will verify that the government warning label requirements, as well as the required “For Medical Use” labeling for medicinal products, is correct pursuant to CCR 16-42-1 5032 (d), (e) (2019). In accordance with CCR 16-42-3 5406 (2019), the Applicant’s verification process will ensure that the following is verified before acceptance, including but not limited to: the name, license number, contact number, and address of the manufacturer/cultivator that sent the batch; the entry date into the distributor’s inventory storage; the unique identifier, batch number, quantity/weight, and description; the government warning; a list of all product ingredients; instructions for use; the county of origin (only if 100% of cannabis used was grown in that county); and the allergen warning. The Applicant will also ensure cannabinoid content information is correct, checking for accurate labeling in a text size of no less than 6-point font on either the informational panel or primary panel, including: if the product is an edible, and a cannabis concentrate for which the manufacturer has established serving designations, it should have the THC and CBD content expressed in both milligrams per serving and milligrams per package; for topical cannabis product and cannabis concentrate without servings, it should have THC and CBD content expressed in milligrams per package; and for packages of pre-rolls or cannabis flower that do not include cannabinoids other than those naturally occurring in the plant material, cannabinoid content expressed as a percentage. 41 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Package labeling helps customers identify their product and use, to ensure that they are giving themselves proper dosage and desired effect. The Applicant will verify that all packaging is child resistant, tamper-evident, opaque if the product is edible, re-sealable if the product has multiple usage, and is designed to minimize oxygen exposure to protect from contamination, deterioration and spoilage in accordance with CCR 16-42-3 5413(b) (2019). In addition, the Applicant will ensure that the packaging does not imitate any package used for products typically marketed to children. All purchased cannabis goods will be placed in an opaque exit package before they leave the facility pursuant to CCR 16-42-3 5413(c) (2019). Storage and Inventory Management Cresco has been successful in adopting and applying best practices for cannabis storage in its other dispensaries. The Applicant also has had similar success in its California cultivation, distribution, and manufacturing facilities. The Applicant intends to utilize Cresco’s quality practices with respect to storing cannabis goods in a retail environment, including ensuring the storage areas have adequate lighting, ventilation, temperature, humidity control and equipment, including personal protective equipment. The cannabis retail business has been designed to promote secure and sanitized storage of all products at the facility. See CCR 16-42-1 5033 (2019). For more information on the design and layout of the cannabis retail business, please see the Applicant’s response to Criteria 3 and 6. The Applicant will institute the first-in-first-out inventory principle where the oldest inventory will be dispensed first to ensure inventory is not depleted prior to the expiration of the product. This basic principle will eliminate unnecessary waste, encourage proper inventory rotation, and ensure product potency and consistency. To further the Applicant’s storage best practices, the Applicant will utilize Cresco’s practices to train all employees in sales practices, product storage requirements, and integration, and security protocols to prevent diversion and loss of product. This training will be conducted regularly utilizing the learning management software (“LMS”) which will be reinforced by facility management. Storage The Applicant has designed its cannabis retail business in a way to ensure that the inventory storage is in the most secure and environmentally controlled location, to prevent diversion, contamination, and deterioration. During receiving procedures, See CCR 16- 42-1 5033 (2019). The Applicant will also train all employees on proper handling and storage procedures. As required by the BCC, the Applicant will also securely store all facility waste before final disposal. Disposal 42 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL will be performed in designated areas. Waste disposal areas will remain under 24/7 video surveillance from at least 2 angles. All cannabis intended for disposal will be clearly labeled as such and will be segregated from all cannabis that is approved for distribution, thus ensuring that no product intended for disposal accidentally gets dispensed. To ensure accurate tracking and diversion deterrence, Vault Specifications The vault will comply with all regulations required by the BCC. Inventories The Applicant will conduct regular inventory reviews and comprehensive inventories on a predefined schedule at the facility, including daily inventory; every 30 days pursuant to CCR 16- 42-1 5051(a) (2019); and annually. Each inventory will generate a written or electronic record which includes the date, a summary of the inventory findings, and the names, signatures and titles or positions of the individuals who conducted the inventory count. To conduct an inventory audit, employees will: compare physical inventory counts conducted with records in and immediately act to reconcile inventory discrepancies; produce an inventory audit report; conduct a discrepancy investigation, should one occur, to identify the source of the discrepancy, and take corrective action; if diversion, significant discrepancy, or other reportable 43 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL activity occurs, notify the BCC pursuant to CCR 16-42-1 5051(b) (2019) and CCR 16-42-3 5424(e) (2019); record and maintain findings from discrepancy investigations and resolutions in compliance with CCR 16-42-3 5424(c) (2019); and notify the BCC of all corrective actions taken. Acquiring Cannabis Goods The Applicant tracks inventory from product arrival at the cannabis retail business to sale to the customer. The Applicant will employ security protocols for operating the inventory control system and accessing restricted access areas, such as the product vault, limited access areas, and the receiving area. For additional information regarding the Applicant’s security plan, please see response to Criteria 5. Consistent with Cresco’s current receipt/delivery process, a manager or designee will immediately record all new inventory into and as it arrives and store inventory in the locked product vault. Secure receipt protocols reflect a combination of the BCC’s rules and Cresco’s experience. The layout of the cannabis retail business is designed with secure receipt in mind, with all inventorying out of customer’s view. Only a limited number of employees will participate in receiving cannabis from licensed distributors. See CCR 16-42-3 5422(c) (2019). Employees will adhere to strict unloading/loading protocols including physical reception of product, inventory logging, recordkeeping, and secure storage pursuant to CCR 16-42-3 5422 (2019) and CCR 16-42-3 5423 (2019). Receiving will only happen in an area that is being recorded on the Applicant’s cameras, in the presence of at least 2 employees including a manager, plus security personnel, and between the hours of 6:00 a.m. and 10:00 p.m. Pacific Time in compliance with CCR 16-42-3 5422(b) (2019). The Applicant will keep and maintain an accurate record of its inventory in accordance with CCR 16-42-3 5423 (2019). Before accepting products, a manager will ensure that the cannabis products received are as described in the shipping manifest, and will record acceptance, receipt, and acknowledgment of the cannabis products in in compliance with CCR 16-42-1 5049(b)(6)(B) (2019). Delivery records will outline all products being delivered to the Applicant, including quantity, variety, strain, batch number, where the product is coming from, and when the product is being delivered in compliance with CCR 16-42-1 5049(a) (2019). If there are any discrepancies between the type, quantity, or quality of cannabis received by the Applicant, employees will record and document the discrepancy in and in compliance with CCR 16-42-1 5049(b)(6)(C). See CCR 16-42-1 5052.1 (2019). The Applicant will keep every manifest for 7 years and make it available to the BCC upon request. 44 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Ability to Reconcile On-Hand Inventory with the Records in the Track and Trace Database The Applicant will ensure that an employee conducts daily inventory reconciliation documenting and balancing cannabis inventory by confirming and inventories match the amount of physical product at the cannabis retail business. As a part of the Applicant’s opening and closing procedures outlined above, each morning and evening a manager will count and reconcile inventory. The Applicant will conduct additional inventories and reconciliation throughout the day as needed. The Applicant will notify the BCC of any reportable activity or significant discrepancy as defined by CCR 16-42-1 5034 (2019) in regard to inventory reconciliation in compliance with CCR 16-42-1 5051(b) (2019) and CCR 16-42-3 5424(e), (d) (2019). All employees will report all discrepancies identified during daily inventory reconciliation, wholesale inventory acquisition reconciliation, and inventory audits, including diversion, theft, loss, or any criminal action to the Store Manager who will escalate to the Security Director if 45 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL criminal activity is suspected. The employee who discovered the discrepancy will provide findings or other records that evidence or otherwise pertain to the discrepancy. The Applicant will keep all inventory adjustment documentation at the cannabis retail business for 7 years from the date performed. If the Applicant identifies an imbalance in the amount of cannabis after the daily inventory reconciliation due to mistake, a manager will determine how the imbalance occurred and immediately upon discovery take and document corrective action. If the Applicant cannot identify the reason for the inventory imbalance within 24 hours after first discovery, it will immediately inform the BCC in writing of the imbalance and the corrective action taken to date. If the Applicant identifies an imbalance in the amount of cannabis after the daily inventory reconciliation or through other means due to theft, criminal activity, or suspected criminal activity, it will immediately determine how the reduction occurred and take and document corrective action. The Applicant will inform the BCC and the City Manager within 12 to 24 hours after discovering any theft, loss, or criminal activity as required by CCR 16-42-1 5036(a)(1) (2019) and Sec. 9- 3310(b)(5). Recordkeeping Robust recordkeeping practices are the cornerstone of successful cannabis retail business operations. Keeping detailed and accurate records assists the BCC, the City, and the Applicant in their respective roles. Records provide the BCC and City with verifiable support that the Applicant is conducting its operations to meet the highest compliance standards and is dispensing product in a safe and compliant manner. Records assist the Applicant in tracking inventory and waste disposal, managing security and surveillance operations and finances, among other things. The Applicant will maintain documentation related inventory tracking, including but not limited to records stored in both in a secure, locked location at the cannabis retail business for 7 years from the date on the document. All documents related to the Applicant’s involvement with the systems will be available to the BCC for review upon request. In addition, the Applicant will keep all necessary books and records required to render a full account of all commercial cannabis operations conducted at its facility for the year to date and the 7 years prior, as required by the licensing authorities. See CCR 16-42-1 5037 (2019). The BCC and other licensing authorities may inspect the licensed premises and examine any records related to commercial cannabis activity owned or created by the Applicant, and upon request, will be granted full access to inspect all records as necessary to perform official government functions and duties. As required by Sec. 9-3331(d), subject to any restrictions under the Health Insurance Portability and Accountability Act (“HIPAA”) regulations, the Applicant will allow the City to have access to the business's books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than 24 hours after receipt of the City's request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City's software and hardware. If requested, the Applicant will provide and deliver all requested records and documents directly to the BCC and other authorities for review. 46 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Facility Records Required records include, but are not limited to, the following: financial records including bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration; personnel records; training records; contracts with other licensees regarding commercial cannabis activity; permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity; security records; destruction records; documentation and data; all other documents prepared or executed by an owner or assignees in connection with the licensed commercial cannabis business. The Applicant will regularly adapt its written policies and procedures for maintenance of records to comply with the regulations set forth by the BCC. The Applicant will also track all changes to records, consistent with industry standards. This tracking procedure will apply to all records, including but not limited to, bylaws, consents, manual and/or computerized records of assets and liabilities, audits, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, receipts, and vouchers. The Applicant will keep these records in a manner consistent with CCR 16-42-1 5037 (2019) for a minimum of 7 years. Financial Records In addition, the Applicant will maintain required records including, but not limited to revenues, expenses, assets, and liabilities, in an electronic format available upon request to the City of Fresno. The Applicant will report the number of sales during the previous 12-month period on a per-month basis to the City of Fresno annually, at a minimum, and more as the City requests. This report will also include gross sales for each month, and all applicable taxes paid or due to be paid. The Applicant will also submit a financial audit to the City Manager regularly. See Sec. 9-3331(a). The Applicant will adapt its written policies and procedures for records to comply with the State/City and the Applicant will track changes made in records consistent with industry standards, including bylaws, consents, manual or computerized records of assets and liabilities, audits, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, receipts, and vouchers. The Applicant will also maintain a current register of the names and contact information of anyone owning or holding an interest in the cannabis retail business, and separately will maintain a current register of all officers, managers, employees, agents, and volunteers employed at the cannabis retail business in accordance with Sec. 9-3331(b). The Applicant will keep these records in a manner consistent with CCR 16-42-1 5037 (2019) for 7 years. Record Retention The Applicant will maintain 2 copies of all mandatory records. One copy will be stored in CCTT- METRC, while a second copy will be stored in the Applicant’s cloud-based record storage service. In the event a record is created in hard copy format, the Applicant will ensure it is also copied to an electronic system to prevent loss in the event of an emergency. This process will ensure that all records are maintained in the event of contamination, hazardous waste, flood or fire. The Applicant will keep copies of its policies and procedures on the licensed retail premise and will immediately 47 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL provide copies to the BCC, upon request. All records and mandatory documents will be immediately available for inspection and copying by the BCC. At least every 12 months after the approval of the licensed retail facility, the Applicant’s quality control/quality assurance team will review all recordkeeping written policies and procedures, and update them in accordance with industry standards or as requested by the BCC. Internal Quality Assurance Audit The Applicant will conduct regular inventory audits, recordkeeping audits, and comprehensive inventories on a predefined schedule at the facility. These audits will ensure that all recordkeeping procedures are followed, and all inventory is appropriately checked, along with reviewing existing procedures and adjusting as necessary. Quarterly audits consist of a comprehensive review of retail facility records to ensure that commercial cannabis activity is accurately recorded as required. Audits include spot checking daily inventory to identify potential areas of improvement, reviewing BCC-required monthly inventories, and review of annual inventories. Audits generate a written or electronic record that includes the date, a summary of the findings, and the names, signatures, and titles/positions of the individuals who conducted the inventory count. Recall Procedures The Applicant has rigorous internal quality control procedures to ensure safe, consistent product. In the event of any unsuitable product, the Applicant will initiate standard recall procedures, modeled after procedures Cresco uses across the country. The Applicant will also maintain detailed records of purchases on and the to track contaminated product and alert appropriate purchasers if possible. The Applicant is prepared to fully comply with all recall notices. If a recall is issued, the Applicant will immediately pull recalled items from inventory and quarantine them until the BCC determines the item is safe, may be remediated, or must be destroyed. The Applicant’s Quality Assurance and Compliance teams will be responsible for managing and executing recalls. Complaints can be received at the dispensary and will be investigated. The team will coordinate with the BCC and the product source regarding how to proceed. The Applicant purchased the product, if possible, to stop consuming product(s) and return the products to the dispensary. The Applicant will segregate recalled cannabis away from other cannabis in storage to prevent employees from confusing recalled products from active inventory and limit the possibility of cross contaminating compliant cannabis. The products held in quarantine for a recall will be subject to auditing by all applicable regulatory agencies. Any product in quarantine will be subject to auditing by the BCC. The Applicant will communicate with originating product source of the need to remediate a recalled product. If the recalled product must be destroyed, the Applicant will comply with the BCC’s rules, regulations, and guidance. The Applicant will use separate SOPs for complaints and adverse reactions. Cresco goes above and beyond regulatory requirements and conducts Adverse Event reporting even in the jurisdictions where regulators do not require the process, and Applicant will do the same in Fresno. These reports will be signed off by a manager, and archived consistent with the Applicant’s recordkeeping policies. 48 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Reporting Requirements The Applicant understands that it has specific reporting requirements to the BCC, in compliance with CCR 16-42-1 5035 (2019), outside of its requirements to report diversion, theft, loss, or other criminal activity. The Applicant will ensure that it reports all instances of the following both within 48 hours of the occurrence and in its annual license renewal: • Criminal conviction of any owner; • Civil penalty or judgement; • Revocation of local authorization; or • An administrative order for violation of labor standards. In addition, the Applicant is committed to cooperating with the Fresno City Manager to inspect or audit the effectiveness of any security plan or other requirements in accordance with Sec. 9- 3310(b)(4). The Applicant will also notify the City Manager within 24 hours of the occurrence of any of the following: • Significant discrepancies identified during inventory; • Diversion, theft, loss, or any criminal activity involving the dispensary or any agent or employee of the dispensary; • The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the dispensary; and • Any other breach of security. See Sec. 9-3310(b)(5). 1.6.1.iii. POS System and Number of POS Locations 49 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL 1.6.1.iv. Sales Procedures The Applicant’s order fulfillment plan maximizes customer access and minimizes wait times and inventory inefficiencies. Streamlined order fulfillment allows for a better customer experience and shorter wait times for all ordering methods. At the proposed location, cannabis will be dispensed through secure glazed glass pass-through windows that will be staffed within the vault for secure transfer of product. Please see floor plan above, Secure Pass Through Window. The Applicant estimates approximately 865 customers to be served per day. Procedures for Pass-Through Window Dispensing • As a part of the cannabis retail business’s opening procedures, a manager will assign employees to work in the vault for dispensing. • The employees will gather orders as patients and customers come to the cannabis retail business, opening a secure glazed shatterproof glass pass-through window to pass the product to employees to pass to the customers for sale. • The employees will lock the secure glazed glass pass-through window each time a dispensing procedure occurs. 51 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL • The vault will be able to be opened from the inside so employees assigned to the vault can leave safely. They will require a keycard to get back in. • At the end of the day, as a part of the cannabis retail business’s vault closing procedures, employees including a manager audit the vault for inventory verification and will proceed with closing procedures, including locking the vault and setting the alarm in preparation for the next day’s shift. The secure glazed glass pass-through windows will be locked at all times, except for during dispensing, and no customers, patients or caregivers will have access to the vault at any time. In addition, the aluminum window frame will receive a . The Applicant will also install an overhead window shutter to cover the entirety of the pass-through windows during off hours. This process will create a more streamlined inventory movement, inventory accuracy, and greater accessibility because employees can spend more time with customers, rather than accessing the vault for all inventory. The Applicant will offer multiple avenues to order its products, including in-store with an employee consultation, in-store express lane, and online pre-order for in-store pickup. The Applicant will implement an online-ordering platform to facilitate these alternative methods. The Applicant will employ a first in, first out process for dispensing product, to ensure the oldest stock of a cannabis product is distributed first for each sale. Customer Experience As described above, upon arrival to the cannabis retail business, the Applicant’s security guards will check IDs and direct customers through the facility. The Applicant has created a facility that has a simple layout, with only 1 entrance and exit for customers for customer safety and easy tracking for employees. Please see floor plan above, Customer Entry and Customer Exit. As customers’ IDs are checked, they will be directed to the check in counter before being admitted to the sales floor where they will be guided to a sales floor or invited to browse the sales area with a Wellness Advisor to help them understand and choose the products that will be the most effective for their desired outcome. As customers make their selections, they will be directed to a POS station to complete their transaction. If a customer has made an online order for pickup, they will be pointed to a POS station for efficient and safe dispensing. The Applicant’s security guards and check-in employees will ensure that the sales floor is never overcrowded and that all exterior queueing is in a fashion that does not disrupt nearby businesses. In addition, the Applicant has robust COVID-19 procedures as outlined below that it will implement to ensure that customers are as safe as possible and limited from exposure on all fronts. This includes proper social distancing, limited capacity within the facility, and regular sanitation. Purchasing Limits In compliance with CCR 16-42-3 5409 (2019), the Applicant will not sell more than the legally permissible daily limit to both adult use and medicinal customers. The limits will not be combined to allow a customer to purchase cannabis goods in excess of any of the limits. The proper sales tax 52 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL rates will be programmed into each of the Applicant’s point of sale systems to ensure sales tax is being collected. Exit Packaging The Applicant’s exit packaging will comply with CCR 16-42-3 5413 (2019) and will: be opaque so that the cannabis goods cannot be seen from outside the packaging; have the ability to be resealed for multiple uses; and be labeled in accordance with BCC instruction and all other applicable state and local laws, regulations, ordinances, and other requirements. Exit packaging requirements will be verified prior to sale to a customer. The Applicant will ensure there is a child-resistant certificate from the packaging supplier and will maintain records of same. Prior to releasing an exit package to a customer, retail employees will check the tamper-evident seal to verify it has not been tampered with and is still securely on the packaging. These procedures will also be used for home deliveries. Handling Returns The Applicant will only accept customer returns of Cannabis Goods that were purchased from the Applicant’s retail facility. See CCR 16-42-3 5410(a) (2019). Should any product be abandoned at the cannabis retail facility, it will also be treated as a return in accordance with CCR 16-42-3 5410(d) (2019). No cannabis goods that have been returned will ever be resold pursuant to CCR 16-42-3 5410(c) (2019) – instead, they will be segregated, stored in the receiving/eradication room in the appropriate place for destruction, will be destroyed and rendered into cannabis waste in accordance with CCR 16-42-3 5410(e) (2019). The Applicant will ensure that all returns are investigated to understand the reason for the return and note the return. Only managers will accept returns, and will record the following into and • The name and type of Cannabis Goods; • The UID of the Cannabis Goods; • Amount of the Cannabis Goods by weight or count; • Date and time of transaction; • The Applicant’s name and license number; • The name and license number of other licensees involved in the transaction; • The reason for the return; and • Any other information required by the BCC. The Applicant will award store credit in exchange for returned Cannabis Goods on a case by case basis. If the customer chooses an item or items of a lesser value, no charge is returned to the 53 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL customer in either cash or store credit. If a customer chooses something more expensive than the value of the return, the customer will pay the balance of the bill. Should the customer’s return be in response to a product recall, the Applicant’s product recall procedures will be followed as outlined above. 1.6.1.v. Proposed Product Line and the Estimated Percentage of Sales of Flower and Manufactured Cannabis Goods Currently, the Applicant intends to stock flower (full-bud, popcorn, shake, pre-roll, shortie), vapes, edibles (gummies, chocolates, and candies), tinctures, concentrates (budder, sauce, sugar, and liquid live resin), capsules, and topicals. The Applicant expects that approximately 60% of sales will be manufactured cannabis goods and 40% of sales will be flower. The 60% of manufactured cannabis goods will be broken down as follows: vapes – 20%; extract – 15%; medicinal products – 5%; edibles – 20%. The Applicant will ensure that each of the retailer’s products is selected with the customer in mind. As the Applicant is vertically integrated, the Applicant will ensure that its own line of products is available at the retailer. In addition to its promise to source both local products as well as a variety of products, the Applicant intends to offer the following brands: Cresco: Cresco offers popular and consistent flower varietals, available in a wide variety of product forms. consists of selected strains with exclusive, proprietary genetics, nurtured with masterful cultivation techniques. With familiar formats and user-friendly delivery systems, is designed to help medical patients and customers feel comfortable with cannabis. Restaurant-quality edibles created by infused with the best quality cannabis oils. are available as a wide variety of uniquely delicious bites at multiple potency levels. is Cannabis Together. Available in 3 easy-to-share product forms – shorties, vapes, and gummies – each product leads with the social occasions that customers love, turning moments with friends into times they will always remember. is quality cannabis, available in bulk. buds are expertly grown, lab tested, and available in vapes, flower, popcorn, shake, pre-rolls, and shorties. 54 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL is California’s premier purveyor of premium cannabis flower. team of master cultivators hand selects the finest genetics and tailors its small-batch, sustainable farming techniques to each cultivar’s unique needs. Floracal utilizes 100% renewable energy to help produce a sophisticated, terpene rich product that invokes a robust, one-of-a-kind experience for customers. provides vape, concentrates, and edibles that are focused on consistent cannabis experiences. provides a pod-style vape cartridge to fit standard hardware, solvent-free concentrates, and low-dose gummies for microdosing. produces flower, tinctures, concentrates, and oils that are organized by effects. Liberty’s line includes Vitality (energizing sativa offerings), Clarity (uplifting sativa hybrids), Harmony (balanced sativa/indica hybrids), Tranquility (relaxing indica hybrids), and Serenity (strongest indica strains). focuses on flower first, providing a dedicated flower company for customers. breeds high quality cannabis strains such as Area 41, Baklava, Lemon Fuel OG, Moonbow, Punch Cross, Sherbacio, Stardust, and Zookies, marketing to connoisseur consumers looking for something special. promise is to produce a family of consistent, curatively curated, superior quality strains of cannabis cultivated in focuses on flower with a consistently clean, safe, and expertly curated cannabis product. is an easy-going brand of bud – it is not hoity-toity, high fashion, over- hyped or over-priced. The brand works to create accessible products for people, including vape cartridges, flower, and concentrates. Stemming from its roots in focuses on state-of-the-art full spectrum rosin products, ensuring its products retain the valuable terpenes for aroma and flavor. produces flower, vape, extracts, edibles, tinctures, and topicals. : focuses on fine, high-quality genetic cannabis strains, wholly focused on flower product. 1.6.1.vi. Retail Delivery Processes The Applicant’s delivery procedures will ensure that all deliveries are compliant and efficient. Cresco has experience conducting delivery services in other states, including New York and Arizona, and the Applicant intends to leverage that experience to utilize in the creation and implementation of its delivery plan. In accordance with the BCC’s rules and regulations, the Applicant’s delivery plan will: • Promote both compliant and efficient delivery operations; • Ensure that no unlawful sales transactions during delivery are permitted or tolerated; • Implement handling procedures that prevent contamination of cannabis products during delivery; • Ensure the training, security, and safety of all the Applicant’s delivery employees; 55 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL • Ensure that deliveries are only made to a physical address in California. See CCR 16-42-3 5416(a) (2019); and • Ensure that delivery drivers do not leave the State of California while possessing cannabis goods. See CCR 16-42-3 5416(b) (2019). The Applicant will offer in-person cannabis goods delivery to customers at any valid physical address within the Applicant’s permissible delivery radius. The Applicant will ensure that only its authorized and properly trained employees who are over the age of 21 will be permitted to deliver cannabis goods from the licensed premises to customers pursuant to CCR 16-42-3 5415(a), (b) (2019). The Applicant will ensure that deliveries of cannabis goods may only be made during business hours, or within a more restrictive delivery time specified by the BCC or the City of Fresno. In addition, the Applicant will not deliver cannabis goods through the use of an unmanned vehicle in compliance with CCR 16-42-3 5415(c) (2019). At any given time, delivery vehicles will carry no more than $5,000 worth of cannabis goods, calculated using the current retail price of cannabis goods, at any given time. In addition, no more than $3,000 worth of those cannabis goods may be prepared for orders that have not yet been received and processed. See CCR 16-42-3 5418 (2019). All delivery employees will confirm the identity and age of the delivery customer in the same manner they would be confirmed at the physical cannabis retail business. Delivery employees will also confirm that all cannabis goods are accurately packaged and labeled as they would at the cannabis retail business before delivery. See CCR 16-42-3 5415(f) (2019). Delivery Employee Training When hiring its delivery employees, the Applicant will ensure its employees: 1) Are 21 years of age or older in accordance with CCR 16-42-3 5415(b) (2019); 2) All have a valid California driver’s license; and 3) All have a clean driving record. The Applicant will also maintain an accurate list of delivery employees and will provide it, upon request, to representatives of the BCC and local and state law enforcement in compliance with CCR 16-42-3 5415(g) (2019). The Applicant will leverage Cresco’s training program for delivery training. Delivery employees will not be allowed to work until they have completed said training. In addition, the Applicant will require all employees complete an annual refresher training covering: 1) Delivery safety procedures; 2) Handling delivery inventory; 3) Delivery routes; and 4) Performing the delivery. In accordance with CCR 16-42-3 5415(c) (2019), employees will also be trained to understand that no deliveries will be conducted by anyone or anything other than a delivery employee. Pursuant to CCR 16-42-3 5415(a) (2019) and CCR 16-42-3 5415.1(a) (2019), the Applicant will not hire an unlicensed third-party or intermediary business to conduct any delivery functions. In addition, the Applicant will maintain its training records of all initial and ongoing trainings by having all employees sign and attest to receiving training. These records will be kept in the same manner as the Applicant’s recordkeeping procedures and in the employee’s personnel file in accordance with CCR 16-42-3 5037(a)(3) (2019). 56 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Delivery Orders The Applicant will utilize Cresco’s existing methods and experience for taking orders for delivery. In accordance with CCR 16-42-3 5403 (2019), the Applicant will only take and process orders through its app during business hours. The Applicant will ensure that customers understand that those are the hours of delivery, and if a delivery cannot be completed during business hours, it will be fulfilled the following day. The Applicant will only deliver cannabis goods to a physical address in California and will not cross state lines to make any deliveries. See CCR 16-42-3 5416(a), (b) (2019). The Applicant will comply with all rules and regulations outlined in CCR 16-42-3 5415.1 (2019) regarding its technology platforms, including: • The Applicant will not use an unlicensed third party and will ensure that any contracts involved to provide a technology platform to facilitate the sale of cannabis goods will not share in the profits of sale from the transaction. • The Applicant will also not advertise or market cannabis goods with the technology platform service provider and ensure that the provider will not use the Applicant’s business name on any advertising or marketing. The Applicant will ensure that the retail employee handling online requests has access to a computer at all times and is notified upon receipt of every customer order request submission. Depending on staffing needs and the volume of requests, every shift will have an employee tasked with completing delivery request forms for orders received and confirmed online. This employee may also be the retail employee who prepares the goods for delivery. On the Applicant’s website, there will be a section dedicated to customer orders. All orders must contain information necessary for the delivery request receipt, such as name, age, physical address, and products desired for purchase. The Applicant will ensure that after each delivery order is placed on the website, the customer receives a confirmation call to verify the order and all pertinent identification information. The Applicant will only use this transactional information for purposes of completing the sale, and not for any marketing purpose. The Applicant will also ensure that all customers are aware that they will be required to provide a valid government-issued identification card to prove they are at least 21 years of age upon delivery. See CCR 16-42-3 5404(a) (2019). Both on the Applicant’s website and upon order placement, the customer will receive an alert that they must have valid identification. If the customer is a medicinal cannabis patient, the Applicant will ensure that all customers provide a valid physician’s recommendation, an acceptable form of identification confirming their identity, and are at least 18 years of age as required by CCR 16-42-3 5404(b) (2019). To ensure only authorized users 21 years of age or older, only customers over the age of 21, verified caregivers, and verified patients over the age of 18 will have access to the online ordering system, the Applicant will use an extension of its established online ordering platform, which syncs with and is age-gated. Eligible customers will be able to browse the Applicant’s menu, order and pay for selected items for delivery, and receive product. 57 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL The cannabis retail business will receive orders through the backend of the Applicant’s online ordering platform, which will trigger fulfillment operations in and When a customer submits an order, it will generate a task in the database, from which the online ordering platform will link product types, quantities/weights, restrictions, and user profiles to inventory control systems. Employees will monitor the online ordering platform and approve/deny tasks as the system receives orders. The Applicant will ensure that phones designated for delivery calls will be conveniently located by the computers to ensure the employee can efficiently and correctly fill out the delivery request forms electronically while on the phone with the customer placing an order. The request submitted must contain information necessary for the delivery request receipt, such as name, age, physical address, and products desired for purchase pursuant to CCR 16-42-3 5420(a) (2019). Delivery Request Receipts The Applicant will ensure that all documentation for delivery request receipts is always prepared, handled, transmitted, and stored in accordance with state and federal law regarding the protection of confidential medical information and customer privacy protections pursuant to CCR 16-42-3 5037 (2019). The receipt will always include the personal and transactional information as required by CCR 16-42-3 5420(a) (2019). When a delivery order is received, the receipt will be produced and given, either electronically or in hard copy, to the delivery employee at the time of departure to the delivery location in accordance with CCR 16-42-3 5418(g) (2019). Upon delivery, the customer will be prompted to review the order and confirm that the cannabis goods presented match the delivery request receipt. Once the delivery is confirmed to be consistent with the request, the delivery employee will transfer the product to the customer. The delivery employee will record the date and time the delivery was made and have the customer sign a paper or electronic copy of the delivery request receipt pursuant to CCR 16-42-3 5420(b) (2019). The delivery employee will provide a copy of the receipt for the customer to keep and will retain a signed physical or electronic copy for the Applicant’s records. Additional procedures for performing the delivery are set forth herein. Packing and Securing Delivery Vehicle On the day of delivery, the manager will oversee the preparation of products, which will be completed by Wellness Advisors. On the day of delivery, an authorized retail employee will account for all cannabis products scheduled to leave the cannabis retail business for delivery to a consumer, follow correct packaging procedures, move orders to the inventory storage room, and fulfill any remaining recordkeeping and inventory tracking requirements pursuant to CCR 16-42- 1 5049(a) (2019). All packing will happen through the rear door of the facility, ensuring that shipments will not enter or exit the cannabis retail business through an entrance or exit available for use by the public. See CCR 16-42-3 5422(c) (2019). Like in-store purchases, delivery products will be delivered to consumers in exit packages. See CCR 16-42-3 5413 (2019). Wellness advisors will not prepare more than $5,000 worth of cannabis goods for delivery, and no more than $3,000 worth of those cannabis goods may be prepared for orders that have not yet been received and processed. See CCR 16-42-3 5418(a) (2019). 58 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Third-party companies will not be used to deliver orders; however, a technology platform service provider may be used to facilitate in the sale and delivery of products in accordance with CCR 16- 42-3 5415.1(b) (2019). The Applicant intends to use Cresco’s proprietary online ordering service. Only the Applicant’s authorized employees will prepare and deliver the orders. See CCR 16-42-3 5415.1(a) (2019). All goods that are prepared for delivery must: have been received from a licensed distributor; have undergone proper lab testing; include correct batch numbers; and be packaged and labeled compliantly. The documents required for order fulfillment will include the Applicant’s delivery request form, a delivery request receipt, and a delivery inventory ledger. The delivery request form and receipt will be specific to each individual order, while the ledger includes all on- hand inventory for each delivery trip. After preparing cannabis goods for delivery, the Applicant will use locked transport boxes to deliver products. The lock boxes will not only provide additional security but will also ensure that no cannabis goods are visible to the public when a delivery is in progress. The lock boxes the Applicant intends to use have been designed by top-rated security specialists. In addition to lock boxes for orders, lock boxes will also be utilized for storing the cash acquired from order payments. The lock boxes will be secured to the inside of each of the Applicant’s unmarked commercial delivery vehicles in the enclosed, windowless cargo section and will not be comprised of any part of the vehicle. See CCR 16-42-3 5417(b) (2019). Each lock box will require a separate key to open, thus preventing a lost key from opening the box. In the unlikely event of a loss of a lock box, the Applicant will work in conjunction with law enforcement to trace the missing box. In the case that the cannabis goods in the lock box are left unattended in the vehicle, such as when the delivery employee is delivering orders in person to a patient, caregiver, or adult customer, the vehicle will be locked and equipped with an active vehicle alarm system and any cannabis goods will be locked in the locked box in accordance with CCR 16-42-3 5417(c) (2019). Delivery employees and wellness advisors will ensure that all recordkeeping procedures, including the delivery inventory ledger and delivery request receipts are accurate before departing the cannabis retail business. In addition, delivery employees will check that their method of communication and GPS are functional and that they have a copy of the Applicant’s current retail license, their government-issued identification, the driving log, lock box keys, and the Applicant- issued employee badge before departing the retail premises. See CCR 16-42-3 5415(e) (2019). Delivery Route Planning The Applicant will plan delivery routes in a way that ensures that the days, times, and routes themselves are randomized to prevent any robbery attempt. Routes will be planned in a way that it varies from common and previously used routes, is convenient for the receiving customer’s needs and the delivery employees, and takes real-time GPS route information using a traffic mapping service (such as Waze or Google Maps) to assess any traffic and accidents and avoids them for efficiency. The Applicant will store GPS data in compliance with BCC regulations. 59 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL All delivery employees will be instructed that they may only travel from the cannabis retail business premises to the delivery address, and from 1 delivery address to another delivery address, and from a delivery address back to the cannabis retail business premises. Delivery employees are prohibited from deviating from the delivery path, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable in accordance with CCR 16-42-3 5421 (2019). In the case of an emergency stop, a detailed log will be maintained describing the reason for the event, the duration, the location, and any activities of personnel exiting the vehicle. All delivery employees will be instructed to only deliver orders to a physical California address, to not deliver orders to addresses on orders publicly owned land, a building leased by a public agency, or to a school. If the delivery employee does not receive any delivery requests for a 30-minute period while conducting deliveries, they will stop taking orders and return to the cannabis retail business. In addition, deliveries will never be posted online. See CCR 16-42-3 5418(i) (2019). Tracking and Monitoring Delivery Vehicles The manager and the Security Director will ensure that all delivery vehicles are installed with a GPS device that will be used to track and monitor delivery employees who are conducting deliveries in real time. See CCR 16-42-3 5417(d) (2019). The GPS devices will only be used for deliveries and will remain active and inside the vehicle at all times during the delivery. The GPS device will allow the manager to know where the delivery vehicle is at any time, view where the vehicle has been, and run reports on the vehicle's behavior. The Applicant will maintain GPS reports for a minimum of 90 days. See CCR 16-42-3 5417(d) (2019). In addition, the manager will coordinate with the Security Director to set up geofences to receive alerts via text message or email when the delivery vehicle enters or exits specific areas. Delivery Vehicles The Applicant’s delivery vehicle fleet will consist of enclosed motor vehicles that will be operated by trained, pre-authorized delivery employees. The vehicles used in the delivery of cannabis goods will not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery and will not include the Applicant’s name or branding in accordance with CCR 16-42-3 5417(a) (2019). Cannabis goods in the delivery vehicle will be placed in locked transport boxes, and all vehicles used will have fully enclosed, windowless cargo sections where the lock boxes will be stored in order to ensure that cannabis goods are not visible or identifiable from outside of the delivery vehicles. See CCR 16-42-3 5417(b) (2019). Solid or locking metal partitions, cages, or high strength shatterproof acrylic will be used to create a secure compartment where the lock boxes containing cannabis goods and cash are to be stored. Any of the Applicant’s motor vehicles used to deliver cannabis goods will be subject to inspection by the BCC and any vehicle used for delivery may be stopped and inspected by the BCC at any time at the licensed premises or during delivery. In addition, the Applicant will ensure its delivery vehicles are insured and registered with the California Department of Motor Vehicles. See CCR 16-42-3 5417(f)(2019). 60 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Performing the Delivery After completing the delivery request procedures and loading the vehicle, the Applicant will perform the delivery. To ensure proper recordkeeping procedures, all deliveries will be accompanied by a delivery request receipt. The Applicant understands that information provided on a delivery request receipt may include protected medical information and shall not be disclosed except as legally required. Delivery communication will be completed through a phone system and will consist of communication to the cannabis retail business during each of the following: 1) The time of arrival at a patient’s, caregiver’s, or adult customer’s physical address; 2) If a customer’s credentials do not match the credentials provided by the Applicant; 3) If the delivery employee deviates from pre-planned route; 4) When the delivery employee has completed a delivery; and 5) When the delivery employee has gone 30 minutes with no new deliveries and begins the drive back to the cannabis retail business. To perform a delivery, the delivery employees will: 1. Call the customer when the delivery is approximately 5 minutes from the destination. 2. When at the destination, inform cannabis retail business employees of arrival via phone. 3. Find the delivery request receipt and open the back of the delivery vehicle to remove the lock box that contains the customer’s order. 4. After removing the lock box, close and lock the vehicle. 5. Approach the customer’s door and knock or ring the doorbell. 6. Upon arrival at the door, display the Applicant-issued badge in plain view for the customer. 7. Use the mobile identification card reader to confirm the identity and age of each customer. See CCR 16-42-3 5415(f) (2019). 8. If the customer’s credentials do not match, immediately leave the premise, return to the delivery vehicle, and communicate to personnel at the cannabis retail business of the incident. 9. If the customer’s credentials do match, dispense order to customer. 10. Return to vehicle, log delivery information, and call cannabis retail business to notify of departure. During the delivery trip, the cannabis retail business will communicate with the delivery driver about any new orders made. A designated employee will send delivery request receipts electronically to the retail driver in compliance with CCR 16-42-3 5418(g) (2019). The delivery driver will be instructed to not engage in any activities outside of delivering orders or stray from the delivery route except for fuel, vehicle repair, needed rest, or because the continued route is unsafe or impossible. See CCR 16-42-3 5415(d) (2019). In addition, all delivery procedures will follow COVID-19 safety guidelines, if applicable. End of Delivery Day Audit Report If the Applicant’s delivery employee does not have any delivery requests to be performed for a 30- minute period, he or she will not make any additional deliveries and will return to the licensed premises in accordance with CCR 16-42-3 5418(i) (2019). Upon returning, all undelivered cannabis goods will be physically returned to inventory by the delivery driver that same day. All necessary internal inventory and records will also be updated, as appropriate, that 61 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL same day by the authorized retail employee. The delivery employee will perform the below tasks until the undelivered cannabis goods are physically returned. See CCR 16-42-3 5418(j) (2019). 1. Notify the cannabis retail business that you are approaching via 2-way radio/ phone and ask them to be ready at the receiving entrance with a wheeled device, such as a dolly, for receiving procedures; 2. Park as close to the receiving entrance as possible; 3. Detach the lock boxes from the enclosed, windowless cargo section of the back of the transportation vehicle and use the platform cart to securely and safely move the lock boxes from the delivery vehicle to the receiving room; 4. Give the manager the delivery log and give the authorized employee the delivery inventory ledger and all signed delivery request receipts; 5. Remove any remaining inventory from lock boxes and inspect undelivered inventory; 6. Confirm that all undelivered inventory is consistent with delivery inventory records by conducting an inventory reconciliation; 7. Retain the results of the inventory reconciliation in with appropriate recordkeeping procedures; 8. Notify manager of discrepancies between inventory records and undelivered inventory; 9. Account for all undelivered inventory in and 10. Save all delivery inventory ledgers and signed delivery request receipts for records; 11. Put away all returned cannabis goods in the appropriate location; 12. Notify manager that all tasks are completed so that the manager can begin the delivery audit. Once deliveries are complete, delivery employees will return to the cannabis retail business and provide the retail manager the necessary documentation of the receipt of products and successful delivery. For unsuccessful deliveries, delivery employees will document the reason for failed transfer and ensure that the manager is made aware of the unsuccessful delivery and products that will be returned to inventory. The manager will then conduct an internal audit to ensure that all inventory for the delivery has been accounted for in order to prevent diversion, theft, or loss. The manager will complete an Audit Report for each record of delivery. Should the need arise, the manager will complete a Correct Action Request form if needed to document findings including misconduct during deliveries. Should the manager find significant discrepancies, they will notify the BCC and City Manager within 24 hours. See Sec. 9-3310(b)(5)(1), CCR 16-42-1 5036(a)(1) (2019). Energy Conservation Initiatives The Applicant has created an energy conservation program to ensure that the cannabis retail business is making every effort to be environmentally conscious and sustainable. The Applicant’s energy conservation program considers each step of the build out process through dispensing, including picking sustainable materials and creating ease for environmentally-friendly transportation options. In addition, the Applicant will establish a program to ensure all processes are evaluated on an ongoing basis for their sustainable practices and make consumer-driven 62 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL initiatives simple for the customer. The Applicant’s plan includes a sustainability team, carbon offsets, community aid, preventing waste, composting and recycling, energy conservation, environmental education, and transportation considerations. To encourage environmentally-conscious and sustainable practices at the cannabis retail business on an ongoing basis, the Applicant will create an in-house Sustainability Team with its employees to ensure that sustainability practices are utilized and to identify gaps and practices that could be made more sustainable or need more encouragement. The team will consist of at least 1 employee from each job title at the cannabis retail business to ensure that all segments of operations are covered. The Sustainability Team will meet on a quarterly or biannual basis depending on what is needed. The team will assess all current sustainability practices and identify places there is room for improvement or places new sustainability practices should be implemented. The Sustainability Team will summarize the meeting recommendations and ideas and send to a designated management employee who will be in charge of aggregating the recommendations and ideas for feasible implementation. The Sustainability Team will also be charged with coming up with ideas for sustainable practices within the community that the cannabis retail business can promote on an ongoing basis. Environmental Sustainability and Repurposing Blighted Land Being an exemplary corporate citizen means not only engaging with community members, but also being environmentally responsible. The Applicant’s proposed site is in a historic building estimated to be 100+ years old. Although the building once housed several small businesses, it is now unfortunately in a state of disrepair. Major renovations are required for occupancy, providing an excellent opportunity to install energy efficient utilities and modernize the structure. The Applicant will build off Cresco’s existing best practices to make similar infrastructure investments and retrofit the location for proper and environmentally friendly operations. Some investments will include adding energy efficient windows and proper green lighting technology. Sustainability practices already in effect across Cresco’s other locations will also be followed, such as ensuring paper products are sourced from recycled materials and the preferred utilization of electronic distribution of information when possible.  Cresco has participated in multiple beautification projects in each of its network states, including roadside and residential neighborhood cleanups, repurposing vacant lots into community gardens, and removing destructive graffiti while supporting muralists and other residents using art to uplift their communities. Through financial support, volunteer hours and in-kind contributions, Cresco has consistently demonstrated its commitment to environmental sustainability. Earlier this year, Cresco donated more than $27,000 worth of recycled agricultural equipment from one of its Illinois cultivation facilities to one of its local partner organizations. The recipient of these materials, Plant Chicago, is a local nonprofit organization with the mission to make our cities healthier and more efficient by developing and sharing the most innovative methods for sustainable food production, energy conservation and material reuse. The Applicant is eager to continue to grow its environmentally responsible practices as a new member of the Fresno business community. 63 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Carbon Offsets and Air Quality The Applicant will employ carbon offsets when it encounters practices that are necessary and cannot be made environmentally conscious. The Applicant will include practices like transportation, shipping (for both cannabis and non-cannabis products), and lighting emissions in this category. The Applicant understands that a large amount of greenhouse gases are emitted as a part of the cultivation and manufacturing processes, and intends to work to mitigate that impact on a cannabis retail business level as well. In addition, the Applicant will survey the amount of greenhouse gases are emitted from its facilities and purchase carbon offsets from a properly vetted company to mitigate its carbon footprint to the best of its abilities. During the buildout and construction process, the Applicant will not take measures that result in the increase of greenhouse gas emissions above established local thresholds. In addition, the Applicant will continue to monitor all Environmental Impact Reports and make adjustments accordingly. Community Aid The Applicant will not only work to ensure that its cannabis retail business practices are sustainable, but will also work with the community to provide sustainable practices and services as needed. The Applicant will partner with the City’s waste management department and law enforcement for recycling days, will reach out to local non-profits and businesses to promote their sustainable business practices and assist with sustainable education, and will work with the City’s park department and local businesses to donate time and resources as they are available for various programs. The Applicant will work with local law enforcement to organize monthly community recycling days for hard-to-recycle items such as pharmaceuticals, technological devices, batteries, chemicals, lightbulbs, cleaning supplies, paint, and oil. In addition, the Applicant will work with additional local non-profits and businesses to provide additional recycling options for other products, like pizza boxes, pet food, textiles, and compostable materials. In addition, the Applicant will work to partner with local businesses and non-profits that promote sustainable practices, like bike shops and plant nurseries, to provide free and accessible seminars for sustainability-adjacent efforts such as bike repairs and home gardening. The Applicant will also work with local businesses and non-profits to provide sustainable and healthy options for local at-risk communities. These services may include food drives, gleaning (collecting excess foods from farmers and markets) services, and supporting affordable and sustainable food programs for at-risk communities while supporting local farms. The Applicant will also work to identify the needs of the community and volunteer work hours to the community to promote the community’s sustainability efforts and programs. 64 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Preventing Waste The Applicant has considered each step of the dispensing process to evaluate where waste can be reduced within the cannabis retail business. By evaluating the dispensing process step by step, the Applicant can easily see where environmentally friendly practices can be implemented while also promoting efficiency and safety. The Applicant will utilize Cresco’s resources and its years of experience operating compliant dispensaries with respect to its supply chain and dispensing processes to implement an efficient and environmentally friendly dispensing process. When a customer arrives at the cannabis retail business and checks in, they are offered information issued by the BCC on cannabis use – they will be offered either a paper copy or the option to have it emailed to reduce paper waste. They will also be offered an email receipt of their purchase instead of a paper copy if they would prefer. The Applicant will digitize all records possible within the cannabis retail business. For paper records that cannot be digitized, the cannabis retail business will ensure that all printer paper available is 100% post-consumer waste produced and is recyclable. In addition, the Applicant will work with Cresco’s supply chain team for all office supplies and related items to be purchased and ordered in bulk wherever possible. Bulk purchasing will cut down on waste and single-use plastic for products such as paper towels, cleaning supplies, and any supplied drinks or snacks for employees. The Applicant will encourage employees to recycle all product packaging that must be disposed of whenever possible. The Applicant will encourage all wholesale partners to consider reusable packaging when delivering product to the cannabis retail business to further cut down on waste. Recycling Program The Applicant will implement a recycling program at its cannabis retail business to cut down on waste both by customers and cannabis retail business operations and employees. The Applicant will ensure training for all retail employees on all aspects of the recycling program and will encourage employees to emphasize the recycling program by creating a sustainable culture in the workplace. The Applicant will also emphasize recycling initiatives for all back of house operations. The Applicant will encourage employees to avoid printing emails, to use reusable containers for food storage over single-use plastic, and to bring a reusable water bottle to work. For instances in which waste cannot be avoided, the Applicant will provide recycling bins for paper, cardboard, plastic, and aluminum waste in the office area for employee use. Energy Conservation The Applicant will consider energy conservation for each segment of its cannabis retail business design to ensure an environmentally conscious long-term plan for energy conservation. The 65 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Applicant will ensure that its build-out, appliances, and any other materials are built with energy conservation in mind. The Applicant will ensure that all glass, windows, and doors are Energy Star qualified and comply with all security rules and regulations. Whenever possible, the Applicant will consider purchasing durable build out materials such as counters, POS stations, and technological equipment from companies with sustainable practices. In addition, the Applicant will ensure all appliances are Energy Star qualified and will enact simple environmentally conscious practices such as turning off lights when leaving a room and turning off appliances when finished with them to conserve energy. The Applicant will also employ LED lights in all its lighting fixtures to cut down on energy use. The Applicant will work to use renewable energy companies whenever possible. Should the Applicant not be able to find a renewable energy company, it will consider carbon offsets or installing solar panels to conserve energy. Environmental Education The Applicant will work with local non-profits and businesses to provide accessible and useful environmental education to the community. This will include sponsoring and facilitating educational seminars on sustainable home practices such as at-home composting, eliminating single-use plastic, home gardening, recycling seminars, reduction and reuse seminars, eliminating food waste, and energy efficiency. The Applicant will work to identify the needs of the community in which it operates to provide useful and impactful services in a method that puts the community first. The Applicant will work to ensure that all sustainability and environmental education is equitable and accessible. Further, the Applicant will promote and sponsor sustainability programs in other languages and provided by women-owned and minority-owned businesses. Transportation The Applicant will encourage eco-friendly transportation methods for both its customers and employees whenever possible. The Applicant will encourage its employees to use eco-friendly transportation by providing pre-tax transportation benefits to employees that can automatically be used on their public transportation method of choice. The Applicant will also work to partner with a local bike-share company to provide discounts to its employees to further incentivize eco- friendly transportation. In addition, the Applicant will install a bike rack near the cannabis retail business for employees and customers to use, and will install electronic vehicle (“EV”) charging stations in its parking lot to encourage and normalize EVs over traditional gasoline vehicles. 66 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL COVID-19 Procedures The Applicant is committed to the safety of its employees and patrons throughout the COVID-19 pandemic, including following Cresco’s strict and comprehensive sanitation and cleanliness SOPs and following all of CDPH’s and the Center for Disease Control’s (“CDC”) recommendations. The Applicant will closely monitor all of California’s stay-at-home orders to ensure it complies with all State orders. In addition, the Applicant will implement a COVID-19 Prevention Plan at its cannabis retail business facility with a comprehensive risk assessment of all work areas. The Applicant will ensure that all employees are trained on and are practicing physical distancing; use of face coverings by employees; and frequent handwashing; and regular cleaning and disinfection, and have processes to identify new cases of illness and, when they are identified, to intervene quickly and work with public health authorities to halt the spread of the virus. The Applicant will provide supplemental training for COVID- 19 protocols, including specific guidance on preventing spread, sanitation, and self-screening. For any work that can be done from home, the Applicant will encourage its corporate employees and any tasks that can be accomplished at home are done remotely. The Applicant will schedule its cannabis retail business employees in groups to promote physical separation. In addition, the Applicant will continually check the CDC’s website for updates and guidance in combatting and preventing COVID- 19 spread in a retail environment. The Applicant will not allow any employee to attend work if they have a frequent cough, fever, difficulty breathing, chills, muscle pain, headache, sore throat, recent loss of taste or smell, or if they live with someone or have been exposed to COVID-19. Employees will be required to frequently wash hands with soap and water, including scrubbing with soap for at least 20 seconds and/or using hand sanitizer with at least 60% ethanol or 70% isopropanol when they cannot get to a sink or handwashing station. Further, the Applicant will instruct its employees on the proper use of face masks. The Applicant will also instruct its employees on proper physical distancing guidelines and how to implement in the cannabis retail business. The Applicant will provide its employees with proper and sufficient PPE and sanitation tools and will provide information on employer or government-sponsored leave benefits that the employee may be entitled to. The Applicant conducts regular compliance audits utilizing the compliance auditing software platform The platform captures all CDC, OSHA, and local COVID-19 regulations, and presents them in an audit format. The Applicant will conduct routine COVID-19 audits to ensure compliance and memorialize the auditing oversight. 67 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL The Applicant will reinforce the training provided to workers by encouraging them to stay home if they are sick or exhibiting symptoms of COVID-19, wash their hands frequently, and use face coverings. The Applicant will not allow employees to share face coverings. Furthermore, the Applicant will provide and ensure workers use all required protective equipment and consider the use of disposable gloves for certain workers. The Applicant will require all employees to pass a temperature and symptom screening at the beginning of their shift. To the greatest extent possible, the Applicant will require any vendors, contractors, or other workers entering the establishment to pass a temperature and symptom screening before entering the building, and will take reasonable measures, including posting signage in strategic and highly visible locations, to remind the public that they should use face coverings and practice physical distancing. Lines will be marked to include physical distancing measures to ensure all customers follow social distancing guidelines. The Applicant will ensure that thorough and frequent cleaning and disinfection is performed in high traffic areas on commonly used surfaces. The Applicant will also consider the following precautionary sanitation steps, with the BCC’s approval: hiring a third-party cleaning company to deep-clean the interior of the facility; installing portable high-efficiency air cleaners; ensuring the building’s air filters are the highest efficiency possible; making other modifications to increase the quantity of outside air and ventilation in offices and other spaces. The Applicant will provide cannabis retail business employees with a cleaning protocol and schedule to ensure that frequently used surfaces are regularly disinfected. The Applicant will also instruct all employees to sanitize shared equipment and touchable surfaces between each use. Customer entrances and exits, and checkout stations will be equipped with hand sanitizer and sanitizing wipes. In addition, the Applicant will provide resources to promote employees’ personal hygiene including hand sanitizer, tissues, no-touch trash cans, hand soap, disinfectants, and disposable towels. Social distancing will be used to limit the number of people who are at the same place at the same time. The Applicant will adjust maximum occupancy rules based on the size of the facility to limit the number of people in a store at 1 time, using no more than 50% maximum occupancy. With the BCC’s permission, will be prepared to queue customers outside while still maintaining physical distance, including through the use of visual cues. Depending on how many people are sick, social distancing can range from decreasing the number of people who can be together at 1 time, to stopping all activities that are not necessary. The Applicant understands the importance of providing a delivery option to consumers and patients during the COVID-19 pandemic, which allows them to acquire cannabis goods without leaving their homes and protecting them from exposure to COVID-19 and preventing further spread of the virus. While delivery is safer for consumers and patients, strict safety and sanitation 68 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL protocols will be required to protect delivery drivers. These measures include, but are not limited to: requiring all delivery employees to wear face masks; thoroughly cleaning and sanitizing delivery vehicles between routes; frequent sanitation of easily accessible surfaces; adjusting schedules to provide time for sanitation; disinfecting pens, clipboards, and electronic signature pads after each use; disinfecting touch pads and punch keys after every transaction; limiting contact with frequently touched surfaces; using gloves to open doors; providing access to sanitation materials; and implementing physical distancing guidelines. 69 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL BUSINESS PLAN: EXHIBIT A 70 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Below, please find the Applicant’s cannabis license list: State Name of Licensee Address Category License Number Date Issued Exp. Date CA SLO Cultivation, Inc. DBA Cresco California 1269 Marie St., Ste 2, Mendota, CA 93640 Manufacturing Type 7 CDPH-10003334 5/31/2020 5/31/2021 CA SLO Cultivation, Inc. DBA Cresco California 1269 Marie St., Ste 2, Mendota, CA 93640 Distribution Type 11 C11-0000193-LIC 5/29/2019 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Event Organizer CEO14-0000044-LIC 7/2/2019 7/1/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002726 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002727 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002728 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002729 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002731 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002733 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002749 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002750 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002751 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002752 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002753 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002754 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002755 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002756 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002757 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002759 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002760 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002761 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002762 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002763 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002764 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002765 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Cultivation Small Mixed Light, Tier 1 CCL18-0002766 5/29/2020 5/28/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Nursery CCL18-0002816 6/1/2020 5/31/2021 CA SLO Cultivation, Inc. DBA Cresco California 3861 Foothill Rd., Carpinteria, CA 93010 Processor CCL18-0002817 5/29/2020 5/28/2021 71 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Below, please find the Applicant’s parent company- Cresco Labs’ cannabis license list: Cresco Labs License List Updated: 11/05/20 California SLO Cultivation, Inc. Cultivation Small Mixed Light, Tier 1 (23 Licenses) Carpinteria, CA SLO Cultivation, Inc. Nursery; Processor Carpinteria, CA SLO Cultivation, Inc. Manufacturing, Type 7; Distribution, Type 11 Mendota, CA River Distributing Co./Continuum Distribution West Sacramento, CA River Distributing Co./Continuum Distribution La Habra, CA FloraCal Cultivation Med. Medium Indoor; Processor; Distribution Unincorporated, CA Cub City, LLC Cultivation Med. Small Indoor Santa Rosa, CA Illinois Sunnyside* Champaign Medical and Adult Use Dispensary Champaign, IL Sunnyside* Danville Adult Use Dispensary Danville, IL Sunnyside* Elmwood Park Medical and Adult Use Dispensary Elmwood Park, IL Sunnyside* Schaumburg Adult Use Dispensary Schaumburg, IL Sunnyside* Lakeview Medical and Adult Use Dispensary Chicago, IL Sunnyside* River North Adult Use Dispensary Chicago, IL Sunnyside* Rockford Medical and Adult Use Dispensary Rockford, IL Sunnyside* South Beloit Adult Use Dispensary South Beloit, IL Sunnyside* Buffalo Grove Medical Dispensary Buffalo Grove, IL Cresco Labs, LLC Cultivation - Manufacturing (Medical; Adult Use; Hemp) Joliet, IL Cresco Labs, LLC Cultivation - Manufacturing (Medical; Adult Use; Hemp) Kankakee, IL Cresco Labs, LLC Cultivation - Manufacturing (Medical; Adult Use; Hemp) Lincoln, IL 72 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL Pennsylvania Sunnyside* Butler Medical Dispensary Butler, PA Sunnyside* Pittsburgh Medical Dispensary Pittsburgh, PA Sunnyside* New Kensington Medical Dispensary New Kensington, PA Cresco Yeltrah, LLC Grower Processor Brookville, PA Sunnyside* December 2018 Permit 3 Medical Dispensaries- Construction in Process Pennsylvania Ohio CY+/Sunnyside* Wintersville Medical Dispensary Wintersville, OH Cresco Labs Ohio, LLC Cultivation, Plant-Only Processor; Processor Provisional Yellow Springs, OH New York Sunnyside* Huntington Station Dispensary Huntington Station, NY Sunnyside* Brooklyn Dispensary Brooklyn, NY Sunnyside* Bardonia Dispensary Bardonia, NY Sunnyside* New Hartford Dispensary New Hartford, NY Valley Agriceuticals, LLC Manufacturing Facility Middeltown, NY Arizona Sunnyside* Phoenix Dispensary and Cultivation Facility Phoenix, AZ Encanto Green Cross Dispensary, LLC Cultivation Facility Salome, AZ Massachusetts Sunnyside* Fall River Dispensary, Manufacturing, Cultivation Facility Fall River, MA Michigan Cresco Labs Michigan, LLC Processor Marshall, MI 73 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL BUSINESS PLAN: EXHIBIT B 74 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL In accordance with Sec. 9-3318(c) of the City of Fresno’s Commercial Cannabis Regulatory Ordinance, please find government-issued identification showing that all owners and managers contained in SLO Cultivation, Inc.’s application for a Commercial Cannabis Business are 21 years of age or older. Also, all individuals listed below have completed the online background check form through fresnoca.viewpointcloud.com. The confirmation numbers for same are listed below. 75 Property of SLO Cultivation, Inc. TRADE SECRET- CONFIDENTIAL 2. SOCIAL POLICY AND LOCAL ENTERPRISE PLAN The Applicant has created a Social Policy and Local Enterprise Plan that prioritizes the Applicant’s employees – centered on local and social policy hiring in accordance with the Fresno Municipal Code (“FMC”) Sec. 9-3316(b)(1). The Applicant is committed to serving the community and its residents through each step of its operations. As an established operator in California with existing facilities in Fresno County, the Applicant has experience and a track record of local recruitment and hiring in the region, which has created integral relationships with local officials that will continue to develop the Applicant’s labor policies year after year. In addition, the Applicant believes in putting Fresno and the surrounding community at the heart of the business. The Applicant’s Plan reflects that value through its commitment to exceeding a living wage, providing excellent benefits options, implementing equitable and fair hiring policies, employing local management, executing a Labor Peace Agreement, creating an extensive workforce plan that provides education to further careers, and expanding its Social Equity Business Incubator program. 2.1. Commitment to a Living Wage The Applicant is committed to offering employees a living wage – each employee will be paid a fair wage for their position. Based on Cresco’s wage standards, the lowest amount that an employee could be paid is $18/hour, 150% of California’s minimum wage. The Applicant based its determination for wages on the Living Wage Calculator for Fresno County, California (https://livingwage.mit.edu/counties/06019). Based on the Living Wage Calculator, the Applicant’s wages ensure that there is an opportunity to make a living wage for each household configuration. Committed to a living wage, the Applicant has created the following wage estimates to ensure that each of its employees is paid commensurately to their position. Wage Estimates The Applicant understands that it is a privilege to be a part of the legalization of the cannabis industry in Fresno – in that way it commits to being a model employer and to build trust with the community as a legal and licensed cannabis operator. As further outlined in Section 2.2., the Applicant not only provides a living wage for each of its employees, but it will also provide benefits including opportunity for retirement contributions and potential profit sharing through the employee pool of Cresco shares. 1 CONFIDENTIAL 2.2. Employee Benefits The Applicant will offer a variety of benefits, including health care, vacation, medical leave, wellness days, telehealth services, 401k benefits, pet health insurance, and discount programs to its employees. As outlined below, the Applicant has detailed programs for its full time employees and part time employees – with benefits offered to union employees as negotiated through collective bargaining. As further described below, Cresco already has unionized employees at other locations and is situated to work with employees should they decide to unionize. The Applicant’s robust benefits program provides employees with exceptional services in addition to their base pay, as follows: Full Time Employees Full time employees are eligible for the following benefits: • Medical Insurance: o PPO (Preferred Provider Option) insurance through United Healthcare – 3 different plans with varying deductibles o HMO (Health Maintenance Organization) insurance through Kaiser – 1 plan • Dental Insurance: United Healthcare Dental Plan • Vision Insurance: United Healthcare Vision Plan • Accident Insurance: MetLife Accident Low Plan or MetLife Accident High Plan • Critical Illness Insurance: MetLife Critical Illness Plan • Hospital Indemnity Insurance: MetLife Hospital Indemnity Plan • Short/Long Term Disability Insurance: MetLife Short and Long Term Disability Plan • Basic and Voluntary Life Insurance: MetLife Basic and Voluntary Life and AD&D Plan • FSA/Commuter Benefits: WageWorks Pre-Tax Benefits • Leaves of Absence: o FMLA (Family and Medical Leave Act) and all other California or City of Fresno Mandated Leaves (if employee meets eligibility criteria) o Paid Parental Leave: Full time employees must have completed 1 year of continuous service immediately preceding the commencement of leave to be eligible for this benefit. Below is the amount of paid leave based on tenure. Length of Service Completed as of First Day of Leave Amount of Paid Leave for Birth Parent Amount of Paid Leave for Non-Birth Parent Less than 12 consecutive months None None At least 12 consecutive months 6 weeks 1 week 24 consecutive months 8 weeks 1 week 36 consecutive months 10 weeks 1 week 48 consecutive months 12 weeks 1 week • Paid Time Off (“PTO”): All full-time employees will be eligible for a minimum of 80 hours of PTO per year (an increase from 40 hours of PTO). See below table for the number of PTO hours by years of employment. o 0 – 3 years of employment: 80 hours of PTO 2 CONFIDENTIAL o 4 – 6 years of employment: 96 hours of PTO o 7+ years of employment: 120 hours of PTO • All full-time employees will also be granted up to 2 Wellness Days annually. o Wellness Days are designated time-off that employees may use to focus on their own wellbeing and mental health, whether that is physically, emotionally, and/or psychologically. o The Applicant will implement Wellness Days in recognition that employees sometimes need time away from work to care for themselves and we should encourage employees to use these days and to take care of themselves. o Where possible, employees should schedule Wellness Days in advance with their manager, though we recognize that there will likely be some need for flexibility here to ensure employees can use them as needed and intended. Part Time Employees Part time employees are eligible for the following benefits: • Paid sick leave offered based on California or City of Fresno rules and regulations (if employee meets eligibility criteria) • Leave of absences offered based California or City of Fresno rules and regulations (if employee meets eligibility criteria) Full Time and Part Time Employees • 401(K) administered through Alliance Benefit Group (ABG) Rocky Mountain o Opportunity to set aside pre/post tax wages towards retirement beginning on the first of the month following 90 days of employment (some exceptions for union employees) o Company matches $.50 for every $1 contributed up to a total of $1,000 per calendar year (1,000 employment hour requirement applies for match eligibility) • PerkSpot Discount Platform o Exclusive discount platform offering savings on a variety of items, including travel, gym memberships, auto/home insurance, apparel, and electronics o Offered to non-union employees • Pet Insurance o Voluntary Pet Insurance offered through Nationwide o Offered to non-union employees • 1800MD Telehealth Services o 24/7/365 quick, convenient access to vast network of board-certified physicians o Offered to union & non-union employees 2.3. Continuing Education and Employee Training The Applicant’s continuing education and employee training programs utilize multiple avenues of experience to reach a wide number of potential employees and students. The Applicant will leverage Cresco’s experience creating continuing education and training programs in other 3 CONFIDENTIAL locations, including mirroring its Community College Vocational Pilot Program launched in Illinois, New York, and Pennsylvania, working with local groups, providing a clear pathway to career advancement within the company, and teaching skills that are transferable across careers in the cannabis field. In addition, the Applicant will utilize Cresco’s robust training program to ensure each of its employees are trained not only on the Applicant’s best practices but all pertinent rules and regulations. All training will be paid and will commence at the employee’s start date. In Illinois, New York, and Pennsylvania, Cresco’s Social Equity and Educational Development initiative (“SEED”) has collaborated with colleges and universities to develop cannabis-focused curriculum with the goal of providing educational resources that will make the cannabis industry a highly inclusive force for job creation. SEED will explore developing similar collaborations with local institutions for opportunities for workshops, classes, and/or certificate programs based on the school’s needs and interests. Complimenting multiple existing certificate and degree programs, SEED will support the institution, at its discretion, in potential topics of educational empowerment for its students, including such subjects as: Business/Entrepreneurship, Environmental Horticulture, Hospitality, Marketing, and Information Technology. Leveraging existing operational knowledge this partnership with will aid in bringing innovative and in-demand skillsets to the local student population. Students will have access to a unique opportunity to gain experience throughout the entire cannabis supply chain which could lead to jobs not only at the Applicant’s facilities but anywhere throughout the billion-dollar cannabis industry in California. Continuing Education The Applicant has created a Continuing Education program that includes working with local Fresno-based groups, such as the Fresno Metro Black Chamber of Commerce and Barrios Unidos, to create pathways to employment including recruitment, workforce education sessions, and potential training. In addition, the Applicant will leverage Cresco’s experience working with community colleges to for recruiting. Cresco piloted this program with Olive Harvey Community College in Chicago (“Olive”). At Olive, Cresco helped develop basic and advanced cannabis certificate courses under a vocational pilot program. Subjects included cannabis and law, dispensary operations, cannabis and science, business and customer service, plant production and breeding, and an introduction to extraction and infusion. In Fresno, the Applicant will approach local community colleges to bring this type of cannabis program to the Fresno area. Participants will benefit from this education that will last them a lifetime – granting them the ability to take their education to any cannabis business operation across the country. To date, Cresco has had nearly 200 individuals go through the program over 2 semesters. In addition, Cresco has hired 4 individuals directly from this program. The Applicant will make every effort to pilot a program similar in Fresno to provide education to residents and provide legal pathways to employment in the cannabis field. Career Advancement through Work Experience The Applicant is committed to creating clear pathways to career advancement through work experience and creating work experiences that provide transferable skills within the cannabis field. Employees are encouraged to apply for career advancing roles by working through each role 4 CONFIDENTIAL successfully. For example, Wellness Advisors who have been exemplary in their work will be encouraged to apply for Lead Wellness Advisor positions, Lead Wellness Advisors to Assistant Managers, and Assistant Managers to Dispensary Managers. Dispensary Managers will be encouraged to apply for corporate jobs or other career advancing roles. For example, Cresco currently has an employee who started as a Wellness Advisor in one of its retail locations in Pennsylvania and is now working in corporate retail leadership. By working through each position, this employee was able to turn their skills into valuable experience that was applicable to a corporate director position. Cresco prides itself on being able to see the value in its employees and nurture their skills into other roles. The Applicant also creates its work experience and training modules in a way that ensures that employees are learning skills that they can use throughout their lifetime within careers in other highly-regulated industries. For example, the Applicant holds itself to a high standard of compliance, a skill that is applicable to and sought after in other industries such as banking, gaming, and pharmaceuticals. The Applicant believes that the job skills learned at the cannabis retail business will not only serve the need of employees working at the business, but will also provide the employees with valuable resume-building skills for their further careers. Training The Applicant will leverage Cresco’s experience for employee onboarding regarding the service, education, and treatment of purchasers. Cresco uses both shadowing and module-based training to ensure that all facets of dispensary training are covered, and the Applicant will implement a similar training model. All training for each employee will be paid in the same amount as each employee’s hourly or salaried wage by time spent. The Applicant’s training plan will ensure each employee will be able to accurately understand the differences in products, the potency of products, customer service, and laws governing personal use. The Applicant will also include its training procedures on safety education, product handling, burglary and robbery protocols, regulatory compliance, and other hazards of the cannabis business. Training is an annual requirement, unless updates to laws, regulations, or best practices require a more frequent cadence. To ensure that all Wellness Advisors have access to procedures at all times, the Applicant will keep its standard operating procedures (“SOPs”) on location, so each employee is able to reference whenever needed. Wellness Advisors will be trained to understand purchaser flow at the cannabis retail business and are prepared to properly educate qualifying purchasers from the moment they walk in the door to when they complete their transaction. Some examples of SOPs include: Checklist for Purchasers to Receive Necessary Information; Dispensing Procedures; Foundational Training Manual; Cannabis 101; Operations; Security; and Compliance. Wellness Advisors will drive the purchaser's experience and will receive the established foundational training Cresco uses on topics required to successful and compliant cannabis retail operations including dispensing cannabis product, consulting with purchasers about cannabis, and ensuring sales or transfers do not exceed purchasing limits. Other segments of employee training will include training on managing cash registers, navigating inventory, and managing and its integration with the Applicant’s point of sale software. 5 CONFIDENTIAL Wellness advisors will be able to: • Greet purchasers upon their arrival to the cannabis retail business; • Input applicable purchase information into the track and trace system; • Inspire purchaser confidence and create purchaser loyalty; • Collect and verify government-issued identification; • Maintain purchaser confidentiality and privacy while operating; • Maintain an organized and clean cannabis retail business. The Applicant uses the written policies and procedures that Cresco uses regarding purchaser education and support. Written policies and procedures address the following: • Whether possession of cannabis is illegal under federal law; • Current educational information issued by the California Department of Public Health about the health risks associated with the use or abuse of cannabis; • Information about possible side effects; and • Other appropriate purchaser education or support materials. Most training will be hands-on training. Training may also involve classroom discussions, lectures, guest presentations, and team-building exercises. Trainees will go through "live" training, whereby employees will participate in role-playing with mock purchasers and mock transactions. dispensary managers will also receive training on mock inventory-software adjustments to prepare for operating the cannabis retail business. The Applicant will also utilize video walk-throughs of common situations within and including investigating discrepancies, pulling forensic reports, and making inventory adjustments. In addition, dispensary managers will be trained on these procedures upon hiring and at regular intervals, as well as being available on demand at any time. The Applicant currently employs a robust digital document management system that includes Cresco’s SOPs and an e-learning training program, Bridge, which serves to track the training of more than 1,100 employees nationwide. With Bridge, dispensary managers can set purchaser-care education goals for each employee, individually. They can also track online course completion and monitor employee progress in learning. Prior to beginning operations or employment, employees will receive offsite training at the Applicant’s licensed cultivation, manufacturing, and distribution facilities in Santa Barbara and Fresno counties to increase their knowledge of the industry and how the cannabis industry functions within California. Cross functional training will better equip team members by affording them the perspective and spirit behind the regulations. When training material and topics such as Packaging and Labeling Compliance are being taught from the perspective of a Manufacturer, this knowledge will further strengthen the employee’s retail perspective as well. Training on Products and Potency of Products The Applicant provides training on differences and potency of products for each of its Wellness Advisors in a Cannabis 101 course which includes training through Bridge (the online learning 6 CONFIDENTIAL management system), in-person training, brand seminars and educational presentations, and through its training handbook which includes sections on the history of cannabis, plant anatomy, plant types, terpenes, forms of cannabis, ways to consume cannabis, and external resources. The training addresses the different types of cannabis, including Sativa, Hybrid, and Indica and each part of the plant, including the Cola, Fan Leaf, Trichomes, Stems, Nodes, and Terpenes. The Applicant educates employees on general types of terpenes and their scent and flavor. The Applicant’s training also includes an in-depth discussion of how cannabis works within the body and how different cannabinoids interact with the endocannabinoid system. The Applicant will ensure that each Wellness Advisor understands how to explain these topics to customers. The Applicant will explain each type of product to each employee in a way that they can replicate that information and easily educate purchasers. In addition, the Applicant will bring in subject matter experts on individual topics, including the products the Applicant’s Carpinteria and Mendota facilities will provide to the cannabis retail business, and bringing in professionals from other brands to share their specific product information. Training on Product Handling and Inventory The Applicant will ensure all retail employees have the education, training, and experience, or any combination thereof, to enable them to perform all assigned retail inventory functions. Retail employees will not be allowed to report to work prior to receiving an orientation which includes inventory training. In addition, the Applicant will ensure that all delivery employees receive annual refresher training for any changes or adjustments to inventory procedures. To complete inventory training, employees will be trained on the inventory storage system, how to track inventory, how to use in conjunction with an overview of inventory reconciliation, and inventory management. All records of inventory training will be kept with the employee’s records pursuant to CCR-16-42-1 5037(a) (2019). Utilizing the Applicant’s SOPs, the Applicant’s training will ensure each employee is able to: • Keep the inventory storage organized, clean, and how to check that all environmental controls are correct (See CCR-16-42-1 5033 (2019)); • Keep all inventory off the ground; • Use lock boxes to store inventory for deliveries; • Track all inventory and know what requires tracking; • Track all product in regard to destruction; • Know when to notify the Bureau or other authority for reportable events; • Track and handle all inventory discrepancies; • Record all metrics to the seed-to-sale tracking system and • Create and reference sales invoices, license to license manifests, and delivery manifests; • Fill out and store all required records as the BCC requires. 7 CONFIDENTIAL Training on Customer Service Cresco leans on its core values of Stewardship, Leadership, and Ownership for its Customer Service training plan – Cresco believes that training its employees to embody these traits, they will further develop their customer service skills. The Applicant’s training manual focuses on training on Customer Service through each step of the dispensing process. Using this model, Wellness Advisors will be able to identify each type of customer based on their cannabis experience and provide individual service. Cresco’s guide focuses on light to non-users, moderate to heavy users, and experienced users and medical patients. Experienced employees will train new employees on all operational factors, focusing primarily on providing exceptional purchaser service and dispensing best practices that can help educate purchasers visiting the cannabis retail business. Individual training modules include responsible use, consumption methods, regulatory compliance, patient confidentiality, safety and security, and cannabis science. This approach will guarantee that employees have the resources and knowledge they need for the first day of operations. ID Training The Applicant will explain the check-out process extensively during new employee orientation. The Applicant understands that this is the area where most mistakes can occur and this the operational function where the Applicant has the most safeguards in place. IDs will be redundantly checked upon check in at the door, then again upon customer/POS check in by the specific cashier, then verified one last time immediately prior to closing the transaction. This articulates multiple points of verification, training, and also multiple people involved in the verification process. Wellness advisors will be trained to prompt each purchaser to show government-issued identification and engage in the following activities: 1) Verify the age of each purchaser using an electronic reader; 2) Verify the validity of the purchaser’s government-issued identification card; and 3) Offer any appropriate purchaser education or support materials. All employees will receive training on how to identify fraudulent, invalid, expired, or otherwise unacceptable identification and how to reject service to unauthorized patrons. Identification must be valid, unexpired, contain a photograph, and the date of birth of the person. A security guard will be onsite to assist with greeting purchasers, accommodating mobility pathways through the secure check-in area, and ensuring the purchaser-entry is locked and secured when not in use. The Applicant will also place an ID checking guide which features IDs from all US states and territories. Lastly, the Applicant will also put “If you were born before…” signs at the registers and provide signage around the cannabis retail business prohibiting minors as well. Employee IT Security Training The Applicant will ensure that each new hire receives IT security training before starting work at the cannabis retail business. The training will cover how to ensure that all sensitive and confidential information in hardcopy or electronic form is secure both at the end of the day and when the employee leaves their desk for an extended work period. Employees will be trained on how to lock down their workstation when they leave both for the day or leave the station. Lastly, employees 8 CONFIDENTIAL will receive supplemental education pertaining specifically to cyber security. This training is administered through a third-party provider to ensure proficiency and comprehension. In addition, the Applicant will require that: • Any protected information is removed from public display and locked in a drawer or secured storage space at the end of the workday; • File cabinets containing protected or other confidential information must be kept closed and locked when not in use or unattended; and • Keys and employee access credentials will never be left unattended. Training on Regulations and Laws The Applicant’s compliance training includes step-by-step, relevant, comprehensive training, including what, where, how, and why of each compliance topic. All employees receive extensive training and education surrounding the state and local rules and regulations to empower them with the knowledge needed to maintain compliant operations on a day to day basis. Ultimately, compliance is the task of each employee, not one department. All compliance training will be issued within 30 days of hire. After that, all compliance and ethics materials will be reissued annually, and procedures will be reissued when they change or in any event that management believes a reissue is necessary. Revisited training can be done by via virtual training, by in person corrective training, or group/team meetings and seminars. Training materials are created by the Applicant’s Compliance and Legal teams, with the administration and comprehension testing of the material controlled via Bridge. Trainees must achieve a score of 80 percent or higher on all performance assessments before advancing to hands- on training. Additionally, the system has reporting functionality that affords administrators the ability to identify patterns within comprehension testing to identify any potential need for supplemental training within specific areas on an individual or group basis. Additional training modules have been created to ensure compliance with the Applicant’s Code of Conduct as well. Training and comprehension reporting are controlled via Bridge. These training modules consist of, but are not limited to, the following topics: Code of Conduct; Non-Retaliation; Workplace Harassment Prevention; Security; Complaints and Investigations; Honesty and Integrity; Diversity and Inclusion; Workplace Safety; Diversion Prevention; and Records Retention. To further supplement corporate compliance understanding, the Applicant uses a third-party ethics and compliance training platform called Navex. Navex provides the Applicant with a sophisticated companywide platform of ethics and compliance training tools and modules. Training modules have been custom tailored to supplement employee education and understanding surrounding topics such as, but not limited to: California Consumer Privacy Act (“CCPA”); Telephone Consumer Protection Act of 1991 (“TCPA”); and Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CAN-SPAM”). 9 CONFIDENTIAL Quality Control Training The Applicant will require all new hires to complete quality control training before starting work at the cannabis retail business. Documentation on this training will be kept in accordance with CCR-42-16-1 5037 (2019). Training topics include: • Proper handling/storage practices for maintaining quality and preventing deterioration; • How to properly read and confirm compliance via a certificate of analysis (“COA”); • Accepting cannabis goods from distributors into inventory; • Proper packaging and labeling of cannabis goods prior to sale; • Not handling cannabis goods when ill or have open wounds, sores, or skin infections; and • Proper hygiene practices for employees who handle cannabis goods with specific attention to preventing microbial contamination. Employee Safety Education In addition to comprehensive, site-specific security training, the Applicant will require all new hires to complete incident response training before starting work at the cannabis retail business. Documentation on this training will be kept in accordance with CCR-42-16-1 5037 (2019). To the extent possible, the Applicant will coordinate with the Sheriff’s office and/or local law enforcement to review and approve security and emergency response training and conduct on-site simulated drills. The Applicant’s philosophy is that the safety and security of purchasers, employees, and the community are paramount; cash, product, and property are replaceable. Training includes: • Information on facility floor plans, evacuation plan maps, and evacuation routes; • Information on alarms, utility cabinets, fire extinguishers, and first aid supplies; • How to properly utilize a fire extinguisher during a fire; • Protocol on re-entering the facility after an emergency incident; • Incident response and reporting procedures; • Response procedures for an IT security breach; • Response procedures for a fire, flood, or natural disaster; • Response procedures for unauthorized entry, robbery, burglary, theft, or security breach; • When and how to alert the Security Director in the event of an emergency; • When and how to report to Security Director, BCC, and local law enforcement; and • When and how to complete a Site Incident Report. Burglary The Applicant will train its employees to follow all product handling procedures to minimize the risk of burglary. The Applicant will instruct all employees to treat any instance of burglary or robbery as if its product were the same as any other retailer – with minimal confrontation, complying with the perpetrator, and waiting for security guards and law enforcement to handle the situation. Please see Criteria 4 for more information on the Applicant’s safety plan. 10 CONFIDENTIAL To mitigate instances of burglary, employees will be trained to: • Never place product or cash in a location other than designated areas; • Supervise all product and cash at all times throughout their shift; • Product shown to a purchaser must immediately be placed back in the designated area; • No product may be left unsupervised at any time, unless in the safe/vault; • Employees must pay special attention to surroundings during opening and closing; • All employees closing for the day must leave the facility together and never alone; • Employees must report any suspicious activities to their supervisor immediately; • Employees who discover that any product or cash has been mishandled, misplaced, or is missing must notify their supervisor immediately; and • Employees are required to ensure that all products and cash are stored appropriately in designated areas such as a safe, vault, or inventory drawer. The designated areas must always be secured or locked. Robbery The Applicant will ensure each employee is trained on the following procedures in the event of a robbery, which are intended to reduce personal risk. If an employee is outside a building when an event occurs, they will be instructed to take immediate cover, preferably inside a building, circumstances permitting. If an employee is inside a building where an event occurs, they should evacuate the building immediately if possible. The Applicant will ensure employees are trained to: have an escape route and plan in mind; evacuate regardless of whether others agree to follow; leave their belongings behind; help others escape, if possible; prevent individuals from entering an area where the perpetrator may be; keep their hands visible; follow the instructions of any police officers; do not attempt to move wounded people; call 911 when they are safe; if evacuation is not possible, find a place to hide where the perpetrator is less likely to find you and you are protected in the case of an active shooter. To prevent the perpetrator from entering the hiding place: lock the door and blockade the door with heavy furniture. If the perpetrator is nearby: lock the door; silence cell phone; turn off any source of noise like radios and televisions; hide behind large items; and remain quiet. If an employee cannot evacuate or hide, the employee should: remain calm; dial 911, if possible, to alert police to the perpetrator’s location; if you cannot speak, leave the line open and allow the dispatcher to listen. When law enforcement arrives, the employee should: remain calm and follow the officers’ instructions; put down any items in your hands; immediately raise hands and spread fingers; keep hands visible at all times; avoid making quick movements toward officers, such as holding onto them for safety; avoid pointing, screaming, and yelling; do not stop to ask officers for help or direction when evacuating – simply proceed in the direction from which officers are entering. Please see Criteria 4 for additional information on the Applicant’s safety plan. 11 CONFIDENTIAL Employee Sanitation and Health The Applicant is committed to ensuring all cannabis products are dispensed in a safe and sanitary manner and to ensuring the identity, strength, quality, and purity of cannabis products are maintained. The Applicant schedules sanitizing surfaces that are considered high traffic areas, or high contact areas, such as entryways, door handles, and common cabinets and countertops at routine intervals. The Applicant follows all CDC and OSHA guidelines, and go up and beyond all mandates for cleaning, sanitation, and employee protection. The Applicant also ensures that full PPE is always available for employees. In addition, the Applicant uses a third-party product called to conduct bi-weekly COVID-19 specific audits that encompass all CDC, OSHA, as well as any state and local mandated ordinances. This program ensures the Applicant stays proactive, as well as ensures that the Applicant are meeting or exceeding all COVID-19 compliance and providing the safest environment possible for its purchasers and employees. The Applicant will require that all employees: • Report to work wearing clean garments; • Wash hands thoroughly in an adequate hand-washing area before starting work, prior to engaging in the dispensing of cannabis goods, and any other time when hands may have become soiled or contaminated; • Maintain good personal hygiene, including but not limited to, keeping fingernails manicured and long hair away from the face, etc.; and • Refrain from having direct contact with cannabis and wear gloves in good repair when appropriate. An employee will notify the dispensary manager as soon as they become aware that they may have an illness or injury. If the dispensary manager suspects an employee may be ill or have an injury, they will exclude the employee from any operations until the condition is corrected. Employees will be instructed to not attend work when experiencing any symptoms of COVID-19 and will have a protocol in place when symptoms occur. For additional information please see Criteria 1. Workplace Violence The Applicant will implement a workplace violence training program designed to facilitate positive group interactions, reduce the possibility of workplace violence, and offer resources such as counseling opportunities for employees. The training for employees must be completed within 1 week of hire and annual training will occur company wide. The Applicant has a zero-tolerance policy with respect to any acts of violence or threats of same made on its premises, and its workplace violence training will emphasize this policy. The training itself will employ a combination of videos, documents, and other media to explain what workplace violence is, how to prevent it, and how to report it. Additionally, the Applicant will implement programs and devote training to developing a cohesive workforce and teach employees how to cope with differences. Employees will also receive training on detecting the potential of workplace violence, including identifying its warning signs, and will set forth clear protocols for employees to report such instances. 12 CONFIDENTIAL The training will include content devoted to employee procedures should an incident of workplace violence take place, including but not limited to alerting law enforcement and protecting each employee’s physical safety. Bridge will serve as a central hub for all training documentation, and managers will be able to track each employee’s progress in completing the required training. The system will also document each employee’s completion of the training, which will be maintained by Human Resources. Through these methods, the Applicant will seek to ensure the safety of its workforce and foster an environment that does not produce such occurrences. 2.4. Social Policy Recruitment and Hiring The Applicant commits to hiring and recruiting individuals for at least one third of the total annual work hours performed at the business across all employees, who meet the criteria listed in the Fresno Municipal Code, Sec. 9-3316(b)(1), as follows: • Annual family income below 80% AMI; • Convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current State law; • Lived in a low to moderate income census tract in the city for a minimum of 3 years; • Veteran; • Former foster home youth who was in foster care as a minor; • Unemployed; or • Receiving public assistance. To the extent possible, the Applicant will give preference to applicants who are Fresno residents or qualify under Sec. 9-3316(b)(1) of the FMC while ensuring compliance with all privacy and legal limitations. As outlined below, the Applicant will phone screen those who can attest to being able to pass a required background check and lives in the City of Fresno. In addition, the Applicant not only commits to hiring 30%+ employees who reside in the City of Fresno, but has also created a distinct methodology to track and report its progress and success (See Section 2.8. below). Finally, the Applicant will ensure that it is able to meet all of its hiring goals through the following recruitment pathways, including job fairs, local engagement, and leveraging the Applicant’s experience hiring locally in Mendota. The Applicant will also report all of its hiring metrics to ensure that these goals are met on an ongoing basis. Job Fairs and Recruitment Pathways The Applicant commits to hosting 2 job fairs in the City of Fresno 90 days prior to the cannabis retail business’ opening. One will be on a weeknight and the other will be on a Saturday afternoon to ensure that applicants from all backgrounds will be able to attend. The Applicant will also consider virtual job fair and hiring events in the event in-person gatherings are restricted or unsafe due to COVID-19. The Applicant will offer applications in Spanish and have on-site interpreters. In addition, the Applicant will also have a physical drop off site for applications in addition to the online portal. The Applicant will utilize its Mendota facility HR staff to assist with talent acquisition and recruitment efforts. 13 CONFIDENTIAL The Applicant will promote job openings in partnership with Council President Miguel Arias and the Fresno City Council to increase number and diversity of potential applicants. To cast as wide a net as possible, the Applicant will work with the city to utilize known job boards and existing community outreach pathways. The Applicant will attend Veteran’s Day Job Fairs, Hispanic Heritage Month job fairs, provide outreach to “Resource Families of Fresno County” (foster family program), West Care and local rehabilitation centers, Every Neighborhood Partnership, and other local organizations to provide work opportunities to the local disenfranchised population. In addition, the Applicant will provide an option for virtual interviews and computer stations to improve accessibility for residents without computers or access to reliable wireless internet. Finally, the Applicant has experience working with the Fresno Employment Development Department for its Mendota facility and can count on utilizing those existing relationship to support a diverse and local hiring pool. Reporting and Compliance with Social Policy The Applicant will collaborate with the City Manager on its initial strategy for compliance with its corporate social responsibility policy for both the first year of business and each year thereafter. Cresco has experience working in jurisdictions that require similar reporting metrics as a part of its annual license renewal – experience the Applicant will utilize in ensuring all its reporting requirements are met and all hiring goals are attained on an ongoing basis. The Applicant will verify its compliance with social policy with quarterly reporting of the following: hours worked by social policy employees; representation of social policy candidates in the Applicant’s workforce; efforts to reach out to and recruit City of Fresno residents and social policy candidates for employment including California-based executive and managerial positions; specific efforts to ensure the City of Fresno resident and social policy candidate workforce; and a list of all contracts entered into and transactions conducted for goods or services that are companies owned by the City of Fresno residents or Social Equity businesses. 2.5. Local Management Over the past year Cresco has centralized all California processing and manufacturing in Fresno County (Mendota). Currently manufacturing 400 products across 4 brand lines, this facility has continued to expand operational capacity. Fresno County (Mendota) employees are part of the family of 315 employees statewide – across 6 facilities throughout California, all driving the Applicant to planned growth of 25% quarter over quarter. The City of Fresno remains a key to the long-term strategic plan that firmly places the Applicant as a market leader in California. The City of Fresno would be the first and key retail site for the Applicant and Cresco in California. The City of Fresno employees will join the Cresco’s and the Applicant’s California employees and serve as the Applicant’s inaugural retail site, completing its vertical integration in the state. The Applicant is managed both out of the Los Angeles region and the Fresno County (Mendota) region. Of the Mendota facility’s employees, 28% of that current workforce lives in the Fresno Area, including Adam Avila, Mendota Facility Director, who lives in Clovis. The Applicant is committed to furthering this model of leadership, searching for local management to run the cannabis retail business, as outlined below. The Applicant believes that a strong business is a local business – managed and led from within the community. 14 CONFIDENTIAL 2.6. Staffing Plan The Applicant has created a comprehensive staffing plan that emphasizes local positions and leadership to meet the Applicant’s local hiring goals and provide the community with in-house contacts for all questions and concerns. The Applicant will leverage corporate employees within the State of California, as well as new retailer employees specifically allocated to the operations in Fresno. In accordance with this plan, the Applicant predicts it will be able to support the hiring of the equivalent of 14 full-time employees within the first year of operation. The Applicant’s Fresno cannabis retail business team includes: Dispensary Management: The Applicant will employ salaried dispensary managers who will be responsible for the facility in total, reporting to the Director of Retail Operations at a corporate level. These will be keyed employees who will have access to the cannabis retail business 24/7 and available for any and all emergencies. These employees will also be responsible for opening and closing procedures and making sure all cash management, recordkeeping, and inventory procedures are followed. Lead Wellness Advisors: The Applicant will employ Lead Wellness Advisors who will be responsible for their hourly shifts, including inventory management, delivery procedures, and the main point of contact for any in-store and delivery issues. These employees will also be the point employee for receiving procedures along with managers and assist Wellness Advisors with their regular activities. Wellness Advisors and Delivery Employees: The Applicant will employ part-time Wellness Advisors and Delivery Employees who are the main point of contact for each customer that walks into the cannabis retail business or receives a delivery. These employees will be responsible for customer education and dispensing procedures. Security Guards: The Applicant will contract Security Guards who will be responsible for ID checking, assisting and overseeing receiving procedures and premise security, watching for theft and diversion, and working with local law enforcement on emergencies and other matters. 2.7. Labor Peace Agreement The Applicant has successfully signed a labor peace agreement (“LPA”) allowing employees to unionize without interference with the Teamsters Local Union No. 853, chartered by the International Brotherhood of the Teamsters (“the Union”). This LPA applies to all of the Applicant’s employees who are eligible to join a collective bargaining unit as a result of their employment at the Applicant’s facilities in the State of California. For the full LPA, please see Exhibit A attached hereto. 15 CONFIDENTIAL 2.8. Workforce Plan Initially, the Applicant will staff the facility with the following employees: Salaried Dispensary Managers; Part Time Lead Wellness Advisors; Part Time Wellness Advisors; and contracted Security Guards, as outlined above. After the first year of operation, staffing may change depending on several factors, including, but not limited to: market conditions, customer growth, and availability of product as supplied by licensees to meet patient demand. The Applicant will ensure that this workforce is equitable and local, exceeding all of the City’s requirements and recommended commitments. 2.8.1. Commitment to 30%+ Local Hires The Applicant not only commits to exceeding the hiring 30%+ employees who reside in the City of Fresno, but has also created a distinct methodology to track its success. The Applicant and Cresco may use a 6 step process similar to the one described herein. 1. Identify Need for Role: First, the Applicant will identify the need for a role and what the job will entail. This step is assessed by retail management using Cresco’s models at its other retail locations to measure volume and need, as well as any local considerations proposed by Fresno’s retail staff. Retail management will determine role responsibilities and work with Cresco’s Talent Acquisition team to develop and publish a job description. 2. Creating Job Description: The Applicant’s retail management and Cresco’s Talent Acquisition team collectively develops a job description or pulls an existing job description that identifies measurable criteria for each position, including education, experience, and the ability to pass a background check (the Applicant assesses background checks on a case-by-case basis and looks for ways to hire candidates despite background checks, however, the Applicant does check position requirements and access to accurately assess if the position is the right fit, checking specifically for records with acts such as fraud and embezzlement) to suitably source candidates using the Applicant’s various recruitment tools. 3. Posting Position and Contacting Local Job/Community Organizations: The Applicant will employ online recruitment tools and solicit job postings in local newspapers and social media; however, the Applicant has a significant interest in recruiting through its local community and is committed to working with local workforce development organizations to achieve that goal. To achieve that objective, the Applicant will host and sponsor local job fairs and target professionals through local organizations and community groups, as described above. The Applicant has successfully had job fairs in California before, including a job fair for the residents of the Mendota, to provide an opportunity for year-round, steady employment ahead of the Applicant’s manufacturing facility construction in January 2019. The Applicant will also contact local colleges and job placement organizations to further the Applicant’s goal for local employment. In addition, the Applicant’s use of traditional recruitment methods is driven by the volume of candidates and the need to search for candidates based on specific criteria for each job. The Applicant will use an applicant tracking system to collect, compile, and process resumes of prospective employees. Cresco uses Greenhouse recruiting software to track over 1,000 candidates 16 CONFIDENTIAL at any given time in all states where its affiliates operate. The system quickly identifies good candidates for each specific job by analyzing each candidate’s skills, residency, background and experience. It then efficiently relays information between candidates and employers, which enhances the likelihood of making a good hire and expedites the onboarding process. 4. Implementing Referral Program through Existing Employees: The Applicant will institute a referral program through existing employees to further source quality local candidates. After initial hire and business opening, the Applicant will encourage its employees to refer their local contacts to apply for open positions. Employees will be given an initial bonus of $250 if their contact is hired for a position, and an additional $250 after the hire’s first successful 90 days. In addition, the Applicant’s referral program will ensure preference to referred employees or open positions if the applicant can attest to being able to pass a required background check. 5. Interview, Screen, and Select Candidate: The Applicant will attempt to ensure that for all non- management positions, it will hire at least 1 in-City resident for every 2 out-of-City residents. The Applicant will ensure it hires individuals for a minimum of one-third of the total annual work hours performed at the business who are social policy employees as outlined by Sec. 9-3316(b)(1). The Applicant will ensure that social policy employees exceed the one third total hour minimum. Preference will be given to local candidates and social policy candidates. The Applicant will phone screen those who can attest to being able to pass a required background check and lives in the City of Fresno or is a social policy employee. After identifying candidates, the next step in hiring includes a phone screen with Cresco’s Talent Acquisition team to assess the candidate and decide whether to advance the candidate to the next step of the hiring process. Talent Acquisition will then pass the interview information to retail management who will conduct the interview, which can be done virtually as needed. In certain circumstances (e.g. for manager positions) more than 1 interview may be necessary. All hiring and personnel records will be maintained in compliance with all state and local regulations. To further accurately assess and document the preference to hiring candidates who reside in the City of Fresno and meet the social policy requirements outlined by Sec. 9-3316(b)(1), the Applicant may institute a rubric where candidates are scored based on various criteria and receive bonus points for being local residents and social policy candidates: Candidate 1 Candidate 2 Candidate 3 Educational Background (1-10 points) Relevant Experience (1-10 points) Company Fit (1-10 points) Interview (1-20 points) References (1-10 points) City of Fresno Resident (+10 points) Social Policy Candidate (+10 points) Total 17 CONFIDENTIAL 6. Measuring and Reviewing Success: The Applicant will verify its commitment to local hiring and social policy employment with its quarterly report outlined in Section 2.4 above. Moreover, the Applicant will annually report: • The number of the City of Fresno residents employed by the cannabis retail business; • The number of the social policy candidates employed by the cannabis retail business; • The number of hours worked by social policy candidates; • Updated internal local hiring goals adopted by the Applicant; • A plan for community-oriented outreach or events to support local hiring goals; • Other information that shows the commitment to local workforce and employment practices; • A workforce utilization report including the following information for each job category including: the total number of persons employed in each job category; and the total number in-city employees and out-of-city employees in each job category; • A narrative of the Applicant’s components of the local hiring plan; • Evidence of Applicant’s use of local and social equity contractors; and • The total percentage of revenues that Applicant will pay to local and social equity businesses as contractors. To ensure better compliance with the City’s hiring guidelines, should the Applicant identify that there are less than 30% employees who reside in the City of Fresno in any given quarter, the Applicant will identify how and why the number dropped and reassess its path forward. The same procedure will apply for social policy candidates. 2.8.2. Commitment to Apprenticeships and Continuing Education In Fresno and its surrounding areas, the Applicant intends to offer opportunities through a Social Equity Business Incubator (Please see Section 2.9 below for more information) by leveraging Cresco’s existing SEED program to align with California state regulations and address any challenges and opportunities that may be unique to the City of Fresno and its residents. SEED recognizes that the current cannabis industry is largely homogeneous with respect to race and seeks to partner with Black and Brown entrepreneurs to help remedy that inequality. The Community Business Incubator is designed to help create and empower minority-owned cannabis businesses through apprenticeship and continuing education. Launched in Illinois, the Community Business Incubator serves entrepreneurs interested in starting their own cannabis business or expanding their current business into the cannabis industry. In Illinois, SEED offered entrepreneurs a 2-phase program – the first helping entrepreneurs with licensure application. After the initial phase, Cresco will invite incubator participants who receive licenses to participate in Phase 2, which will consist of those participants working closely with Cresco’s subject matter experts to further refine and enact their business plans. SEED will assist the applicants with finding locations, construction of their facilities, and setting up initial operations. The second phase of the incubator will also include numerous minority-owned businesses ancillary to the cannabis industry. SEED will provide minority-owned businesses in areas like Information Technology, Accounting, Maintenance, and Security, with the information necessary to successfully support the cannabis operation. SEED will also provide these ancillary businesses with the opportunity to 18 CONFIDENTIAL directly connect with new dispensary and craft grow license holders so that they can develop relationships and grow their businesses together. Additionally, SEED will assist these groups financially without taking a long-term ownership interest in the company. Specifically, Cresco will continue to provide operational help in the following areas: Compliance, Operations, Security, Marketing, Retail, Construction, Engineering, and Human Resources. To the extent possible, the Applicant wishes to create a similar program in Fresno. Incubation and Acceleration Through incubation and acceleration, SEED’s Community Business Incubator successfully utilizes fixed-date milestones which are the hallmark of classic mentor-driven acceleration programs. The relationship between SEED and its incubator participants continues beyond a defined ‘graduation date’ that is typically associated with apprenticeship programs, allowing SEED to continue providing resources for space, products, marketing, resources that would otherwise be largely inaccessible and unaffordable. This longer-term investment provides program participants a longer runway for guidance and success, allowing them to focus is on the skills and resources required to achieve their goal of creating a viable business in the cannabis industry. This structure allows Cresco to provide program participants with comprehensive resources like ongoing access to Cresco’s world-class team that can provide corporate experience to share insight on business operations including creating a product prototype, and aligning distribution, legal knowledge, and other invaluable support that has a longer positive impact on program participants. Success is measured in a variety of measures beyond basic funding – Cresco will further measure its progress through product milestones, employment growth, new markets entered, business survival rate, and feedback from participants throughout and following their core programming. Residency Program Cresco has launched a pilot program to create residency opportunities in its hometown of Chicago in partnership with a food-industry incubator, the Hatchery. This partnership builds off the Hatchery’s model of providing shared kitchen space where participants can test, build and grow successful food and beverage businesses, overcoming the lack of affordable food-grade kitchen spaces. Cresco is providing access to its industry-leading food and beverage teams to integrate the Hatchery’s model with Cresco’s existing best practices to provide program participants with educational opportunities including coming up with formulations, dosage, mass production, and many other important aspects for industry compliance and viability. To the extent possible, the Applicant intends to utilize Cresco’s model in Chicago to create a similar program in Fresno. The Hatchery creates a space for those who experience barriers to the industry, aligning with the Applicant’s commitment to improving inclusivity and diversity in the cannabis industry by creating pathways for individuals who have been adversely impacted by the War on Drugs. Through its residency program, the Applicant aims to provide knowledge, tools and training to support not only community members seeking to become entrepreneurs in the cannabis space, but those seeking employment with existing operators. 19 CONFIDENTIAL 2.8.3. Commitment to a Living Wage The Applicant is committed to offering employees a living wage – each employee will be paid a fair wage for their position. Based on Cresco’s wage standards, the lowest amount that an employee could be paid is $ /hour, 150% of California’s minimum wage. The Applicant based its determination for wages on the Living Wage Calculator for Fresno County, California (https://livingwage.mit.edu/counties/06019). Based on the Living Wage Calculator, the Applicant’s wages ensure that there is an opportunity to make a living wage for each household configuration. Committed to a living wage, the Applicant has created the following wage estimates to ensure that each of its employees is paid commensurately to their position. Wage Estimates The Applicant understands that it is a privilege to be a part of the legalization of the cannabis industry in Fresno – in that way it commits to being a model employer and to build trust with the community as a legal and licensed cannabis operator. As further outlined in Section 2.2., the Applicant not only provides a living wage for each of its employees, but it will also provide benefits including opportunity for retirement contributions and potential profit sharing through the employee pool of Cresco shares. 2.9. Plan for Social Equity Business Incubator The Applicant intends to implement a Social Equity Business Incubator through Cresco’s SEED initiative and looks forward to offering support to local cannabis social equity businesses. Established in May 2019, SEED aims to ensure that all members of society have access to the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. The Applicant believes the cannabis industry has a responsibility to invest time and resources to try to remedy the relative absence of Black and Brown participation in the cannabis industry, resulting from the disproportionately negative impacts of the War on Drugs in many of these communities. The SEED initiative creates positive impact across all of the Applicant’s networks, where appropriate, by developing tangible pathways into the cannabis industry for individuals and communities adversely impacted by the War on Drugs through its 3 pillars: 1) Restorative Justice; 2) Education and Workforce Development; and 3) a Community Business Incubator. Over the past year, Cresco – through the SEED initiative – has invested to cover the cost of expungement events in multiple states and other justice-oriented programming and events. In all, the Cresco financially supported more than 1,000 individuals seeking expungement of their criminal records. Cresco has made invaluable contributions to adult education across multiple of its network states in the form of in-kind donations of volunteer staff hours, and time and expertise to write curriculum, teach classes, and host workshops at local colleges and universities. 20 CONFIDENTIAL The Applicant recognizes the irreparable harm done to communities of color by this nation’s drug policies. Through its restorative justice initiatives, the Applicant desires to elevate people whose lives were impacted by the War on Drugs by working to remedy some of those harms. SEED’s restorative justice programming includes hosting expungement events, lobbying to change the nation’s drug laws, and working to ensure that no person remains in prison for a cannabis conviction. In Fresno and its surrounding areas, the Applicant intends to offer apprenticeships and continuing education through a Social Equity Business Incubator by leveraging Cresco’s existing SEED program to align with California state regulations and address any challenges and opportunities that may be unique to the City of Fresno and its residents. SEED recognizes that the current cannabis industry is largely homogeneous with respect to race and seeks to partner with Black and Brown entrepreneurs to help remedy that inequality. The Community Business Incubator is designed to help create and empower minority-owned cannabis businesses through apprenticeship and continuing education. Launched in Illinois, the Community Business Incubator serves entrepreneurs interested in starting their own cannabis business or expanding their current business into the cannabis industry. In Illinois, SEED offered entrepreneurs a 2-phase program – the first helping entrepreneurs with licensure application. In its inaugural Community Business Incubator in Illinois, Cresco supported 210 individually qualified cannabis dispensary applicants, representing 42 groups. Incubator participants received instruction from professionals in Retail, IT, Security, Public Affairs, Human Resources, and extensive assistance from Cresco’s legal team. Some milestones and achievements from this initiative include Cresco organizing 13 incubator-related events, corporate staff contributing 2,062 volunteer hours across various disciplines to work with incubator candidates, and contributed more than $775,000 to facilitate the incubator and sponsor participants’ application fees. As follow up to its first incubator in Illinois for adult use dispensaries, SEED hosted a second incubator in January 2020 for Illinois craft grow applications. In its second session, SEED assisted 8 businesses comprising 45 people in applying for cultivation licenses. The craft grow session included a 3-day application writing workshop where participants learned firsthand from Cresco’s experts across areas of cultivation, manufacturing, and food/beverage departments. After the initial phase, Cresco will invite incubator participants who receive licenses to participate in Phase 2, which will consist of those participants working closely with Cresco’s subject matter experts to further refine and enact their business plans. SEED will assist the applicants with finding retail locations, construction of their facilities, and setting up initial operations. The second phase of the incubator will also include numerous minority-owned businesses ancillary to the cannabis industry. SEED will provide minority-owned businesses in areas like Information Technology, Accounting, Maintenance, and Security, with the information necessary to successfully support cannabis operation. SEED will also provide these ancillary businesses with the opportunity to directly connect with new dispensary and craft grow license holders so that they can develop relationships and grow their businesses together. Additionally, SEED will assist these groups financially to the extent permitted. Specifically, Cresco will continue to provide operational help in the following areas: Compliance, Operations, Security, Marketing, Retail, Construction, Engineering, and Human Resources. 21 CONFIDENTIAL In Fresno and its surrounding areas, the Applicant intends to serve as a Social Equity Business Incubator by tailoring best practices from its programs in Illinois to align with California state regulations and address any challenges and opportunities that may be unique to the City of Fresno and its residents. The Applicant is aware of at least 1 other cannabis company that has taken The Fifteen Percent Pledge, a national movement started in June 2020 to encourage retailers across all industries to devote 15% of their shelf space to products from Black-owned businesses. The Applicant believes that not only in the business benefits of increasing diversity of its product offerings for each retail operator, but maintains that representation of Black-owned businesses is essential to the cannabis industry’s success overall. From investments in organizations supporting under-resourced communities to improving its internal employee diversity, the Applicant is committed to being a socially responsible operator that makes its corporate culture and the communities in which it operates more representative of the greater population. Accordingly, the Applicant will establish a protocol for increasing the percentage of shelf space it dedicates to products from Black-owned businesses. In addition to the variety of support services it provides through the SEED initiative, the Applicant will also offer educational content for community members, Minority Business Enterprises that are ancillary to cannabis operations, and workshops for social equity applicants, including learning seminars and application-writing workshops. In an effort to educate local stakeholders around details of the cannabis industry, the Applicant will provide information, both written and via video, addressing topics including production, retail operations, and public safety. In tandem with the asynchronous webinar content, the Applicant will hold bi-annual scheduled Question & Answer sessions for interested parties during the first years of operational inception. These initiatives aim to address ongoing questions and comments from the general public on a variety of topics relevant to the cannabis industry, providing valuable educational resources and strengthening the Applicant’s relationships with community members through open dialogue. 22 CONFIDENTIAL SOCIAL AND LOCAL ENTERPRISE PLAN: EXHIBIT A 23 CONFIDENTIAL 24 CONFIDENTIAL 25 CONFIDENTIAL 26 CONFIDENTIAL 27 CONFIDENTIAL 28 CONFIDENTIAL 3. NEIGHBORHOOD COMPATIBILITY PLAN The Applicant is dedicated to creating a Cannabis Retail Business that is compatible with the neighborhood and is a pillar of safe, compliant, and community-centric business practices for the City of Fresno. Utilizing the base model of the Applicant’s Parent Company, Cresco Labs (“Cresco”), the Applicant will establish its Cannabis Retail Business under the Sunnyside* brand – a cannabis dispensary that professionalizes and normalizes cannabis while considering the surrounding neighborhood. The Applicant is centered on being a good neighbor and will always put the community at the heart of the business. In this way, the Applicant has created a plan for neighborhood compatibility that will reflect the location’s surroundings, while leveraging the quality and detail of Sunnyside*’s design, the dispensary’s fit within the neighborhood, local impact – including noise, light, odor, litter, vehicles, and pedestrian traffic, as well as the Applicant’s commitment to being a good neighbor, and the Applicant’s best practices for odor mitigation and waste management. The Applicant’s proposed facility is located at 736-742 Fulton Street in downtown Fresno, near Chukchansi Park, is zoned as DTN (Downtown Neighborhood), and is accessible by highways sufficient to carry the kind and quantity of traffic the use will generate. See Sec. 9-3307, 9- 3308(e)(6), Criteria 6, and Zoning Inquiry Letter. The proposed facility is located no closer than 800 feet from any property boundary containing the following: 1) existing cannabis retail business; 2) a school providing instruction or any pre-school through 12; 3) an existing licensed daycare center; 4) an existing youth center. See Sec. 9-3307. As set forth in this plan, the proposed facility will conform with the General Plan, and the applicable specific plans, master plans, and design requirements. For detailed information about the location, please see Criteria 6. Introduction to Sunnyside* Cresco’s Sunnyside* brand has been approved and launched in 6 states, including New York, Arizona, Illinois, Ohio, Pennsylvania, and Massachusetts, all of which require modest and tactful branding, which the Applicant will utilize at its Fresno location. Cresco developed the Sunnyside* brand with safe, secure, and discreet operations in mind. The brand bears no markings that denote that it is a cannabis company, which not only provides for discreet purchasing but also provides a more easily accessible and neighborhood-driven approach for new purchasers who are focused on the wellness aspect of cannabis. The façade has been designed to explicitly project a compliant and secure retail business. Purchasers can expect the physical environment to be inviting and warm, a source of everyday wellness. The retail business will preserve the brick exterior of the building to blend in with the local brewery district. The interior will have a gentle aesthetic of greys and whites with brightly colored accents. All exterior and interior design elements will be crafted with superior materials and will be sourced locally, when possible. In addition to the exterior and interior design elements, the Applicant will keep the sidewalk, right of ways, and location perimeter free of litter, graffiti, and debris. 1 Property of SLO Cultivation, Inc. The signage at the retail business will say “Sunnyside*,” will be in compliance with Sec. 9-3309(h) of the Fresno Municipal Code (“FMC”) and will generally fit in with the surrounding neighborhood. The Applicant will ensure that dispensary signage meets all operating requirements set forth in Sec. 9-3309(h) and Sec. 9-3307(e), including: Seeking the issuance of a city sign permit; Signage will not obstruct any entrance or entrance to the building or any window; Signage will include a clear and legible notice indicating that smoking, ingesting, or otherwise consuming Cannabis Goods on the premises or in adjacent areas is prohibited; Signage will be limited to that needed for identification only and will not contain any logos or information that identifies, advertises, or lists the services or products offered (See photos of relevant signage herein); Advertising will not be placed on or visible from the exterior of the business; No person will ever hold a sign advertising the business to passersby; Signage will not be illuminated; and The Applicant will not utilize billboards, bus shelters, placards, aircrafts, or similar forms of advertising anywhere in the State of California. The Sunnyside* brand is similar to that of a tasteful, modern vendor and does not utilize marketing campaigns such as carried or A- style sandwich boards in any of its operating markets. Sunnyside*’s goal is for purchasers to have the same experience at the retail business as one might have at a discriminating retailer. The Applicant’s marketing campaign will reflect this same idea, employing upbeat imagery and sound/music to project healthfulness and warmth. The Applicant will always seek the City’s approval prior to making exterior changes to the facility. 2 Property of SLO Cultivation, Inc. Quality and Detail of Design In line with the Sunnyside* brand, the Applicant commits to quality and detail in each aspect of its design. The Applicant’s proposed facility is in downtown Fresno, near Chukchansi Park. The Applicant recognizes that revitalization efforts are being done in the downtown area to make the neighborhood more pedestrian-friendly. To reflect those efforts, the Applicant will embody the City of Fresno’s vision to preserve the historic feel of Downtown- located businesses on Fulton Street. The Applicant will fit in with its neighbors in the brewery district by preserving the brick façade, incorporating modern design and signage, and utilizing local artists for any interior murals and/or artistic features. In addition, the Applicant commits to working with the City of Fresno on its downtown public art initiative and other cultural attractions. The Applicant’s design will be clean and appealing for downtown, and will not advertise that it is a cannabis business, or create any appeal to minors. For more details on preventing advertising or appeal to minors see Criteria 1 and 7. The Applicant’s Exterior Design: The Applicant commits to using quality materials in its exterior design, including considering the tenants surrounding the proposed location and general retail aesthetics. The Applicant’s design is not obtrusive, and generally fits in with its retail neighbors. The Sunnyside* design was built for highly-regulated states considering the fact that dispensaries should not explicitly state their use for cannabis dispensing on the exterior of the facility to prevent advertisement to minors. The Applicant has considered these elements in its exterior facility design in Fresno and will ensure that the exterior seamlessly fits into the community and similarly situated buildings. See Sec. 9-3307(c). The Applicant will reach out to its prospective neighbors to assess its exterior branding and signage and to show goodwill and commitment to Downtown Fresno. At a minimum, the facility will comply with all applicable development standards for lighting, building materials, and colors. Exterior design elements include:  Preserved brick exterior façade;  Window glazing with anodized aluminum mullions;  Windows frosted with "SUNNYSIDE*" pattern design;  Metal awning finished in black; and  Exterior sign: "SUNNYSIDE*" channel letters. Proposed Exterior Design 3 Property of SLO Cultivation, Inc. The Applicant’s Interior Design The Applicant’s interior design is designed with a high-end retail format in mind, ensuring that all customers feel important and invited into the space. Each Sunnyside* retail business keeps its community at the forefront when considering design, and the location in Downtown Fresno is no exception. The Applicant intends to integrate elements of Fresno into its design, featuring local artists and artwork through valued partnerships. In addition, the Applicant will use quality materials, sourced from local proprietors when possible, in each section of its interior of design, ensuring durable and sustainable design. Interior design elements include: Fit Within the Neighborhood The Applicant has selected its proposed dispensary location in Downtown Fresno, which will provide easy access for Fresno customers and is centrally located for residents. The proposed location is in Fresno’s brewery district on Fulton Street, directly east of Chukchansi Park. The location is central to downtown, but not in Fulton Mall, meaning there will be less foot traffic on the dispensary’s side of the neighborhood. In addition, the location is ideal to provide a quick response time from the Fresno Police Department (less than 1 mile away), in the unlikely event it is needed. Near multiple breweries and bars, and the dispensary will be walkable from other pedestrian-friendly areas of Downtown 4 Property of SLO Cultivation, Inc. while not being a part of the main walkway in the neighborhood. This location provides access for residents via vehicle, and for pedestrians over 21 who know the dispensary’s location. 3.1. Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles and pedestrian traffic. The Applicant has a detailed plan to proactively address and respond to complaints and mitigate them at the source, including noise, light, odor, litter, vehicles, and pedestrian traffic. The Applicant will leverage Cresco’s experience addressing these concerns successfully at its current operating retail facilities. As described in further detail below, the Applicant is dedicated to being a good neighbor to its surrounding businesses and will work to monitor and mitigate issues as they arise to ensure expedient solutions to any complaints. The Applicant has designated as its Community Liaison, as outlined below, and will be available for community members to contact for any concerns, questions, or community integration efforts via phone . Every concern will be recorded and addressed through a tracking process that is supervised by the Applicant’s Public Affairs Department. The concerns will be responded to within 48-hours and move through a pipeline process that will ensure every response is appropriately acknowledged. Any further courses of action or resolution will be communicated with both the stakeholder and the relevant City official, if necessary. Once the communications are addressed and finalized, the Stephan’s manager will approve completion of the correspondence and implement follow-up action required for mutual satisfaction. The Applicant has created a process flow for these types of complaints and feedback as outlined below: The Applicant will work to mitigate all issues before opening, however, should the Applicant receive any complaints of noise, light, odor, litter, vehicles, or pedestrian traffic after the business opens, the Applicant will investigate the source of the complaint and the time the complaint was made to assess any further mitigation needed and any policy changes that need to be addressed. In addition, the Applicant will implement robust COVID-19 procedures and recall procedures to ensure the safety of all customers as described in Criteria 1. 5 Property of SLO Cultivation, Inc. Noise: The Applicant will ensure that all intended noise from the business, including any music, fits in with the Downtown Fresno community. The Applicant will work with its surrounding businesses to create a queueing system that is not prohibitive to other businesses and ensures that all customers are served safely and efficiently. In addition, the Applicant will only play music at a level that is appropriate for the neighborhood and for the facility itself. Music will be played at a low volume and will not be played outside. The noise level of the proposed cannabis business will be no greater than that of a traditional retailer and will embody wellness, professionalism and positivity. Further, the Applicant will engage in the local community and feature music from local musicians, when possible. Prior to opening, the Applicant will test noise levels and check with neighbors to ensure that the sound is at an acceptable level. Light: The Applicant will utilize perimeter lighting that is both safe and secure, while not being distracting or detrimental to other businesses. Perimeter lighting will be approved by the Chief of Police and will be in line with Downtown Fresno’s current exterior lighting, to the extent possible, while retaining all security measures outlined by Sec. 9-3310(b)(1)(iv). The Applicant will ensure that its neighbors are given time to check on light levels and make any suggestions for adjustments before the dispensary opens. For full lighting and surveillance plans, please see the Applicant’s answers to Criteria 5. Odor: The Applicant will utilize extensive and effective odor mitigation plan as described below, in Section 3.3. The odor mitigation plan includes identifying potential sources of odor, robust infrastructure and carbon filters, sanitation measures, environmental controls, and a plan to enhance odor issues should they arise. Cresco has an excellent track record for mitigating odor and the Applicant will employ its practices at the proposed facility in Fresno. The Applicant does not expect odor being an issue at the facility because all product will come to the dispensary prepackaged, but the Applicant will work with the community to abate any complaints of odor should they arise. Litter: As described in Section 3.2, the Applicant will ensure regular patrols to not only check on any issues at its own facility, but will alert its neighbors of any concerns (such as graffiti or loitering) if observed. The Applicant will utilize this plan to check its grounds for litter and keep a continual watch throughout the day of any trash or unwanted debris as outlined in Section 3.7 of this plan. The Applicant’s employees will be tasked with regularly inspecting the facility’s grounds and immediate adjacent public rights-of-way for trash and will dispose of it securely. In addition, the Applicant will strictly prohibit the consumption of any Cannabis Goods on its property to ensure that there is no litter directly originating at the facility. Vehicles/Pedestrian Traffic: Fulton Street is currently undergoing reconstruction from the Public Works Department to increase usability for vehicles and pedestrians. There is ample parking available in a large lot approximately 15 yards from the retail location at the corner of Inyo and Fulton Street, with metered-parking opportunities on each side of Fulton Street. The City of Fresno and Downtown Fresno Partnership are working to restore Fulton Street to its traditional historical ‘Main Street’ feel, and will be installing pedestrian scrambles at the intersection of Inyo and Fulton Street. This will provide easy and diagonal crossing pedestrian access from the parking lot to the side of the street with the retail location if there should be no street parking available. 6 Property of SLO Cultivation, Inc. The Applicant will efficiently and effectively check IDs and queue customers to avoid excessive foot traffic outside the facility based on emergency management assessment. The Applicant will utilize its security guards to organize all exterior and interior queueing to guide customers through the facility in an efficient manner. The Applicant’s facility will only have 1 dedicated ingress and egress for customers, which will diminish any confusion on how or where to enter the facility. The Applicant’s facility will only allow for on-street parking and will direct any purchasers coming by vehicle to park in designated on-street parking or direct them to nearby parking lots to mitigate traffic. The Applicant will encourage any customers who are coming in to pick up an online order to the designated parking areas, to mitigate any obstruction of street traffic. 3.2. Describe how CCB will be managed to avoid become a nuisance or having impacts on its neighbors and the surrounding community The Applicant will ensure that the cannabis retail business is managed in a manner that prevents the business from becoming a nuisance or having impacts on its neighbors or the surrounding community. In addition to its community liaison, the Applicant will instate a regular community meeting for residents and business owners to raise any issues with the cannabis retail business along with any business updates from the Applicant. In addition, the Applicant will:  Operate with hours that are compatible with surrounding operations (9:00 a.m. to 9:00 p.m. Pacific Time);  Have a security guards to streamline client entry, exit and parking;  Ensure security guards work in collaboration with Fresno Police Department to create a safe neighborhood for everyone;  Sensitively handle homelessness concerns by trained staff with guidance from local law enforcement;  Have a robust external video surveillance/monitoring system to ensure public safety and proper use of parking and adjacent areas (See Criteria 5);  Ensure that exterior signage, marketing and advertisements are sleek, well-kept and consistent with the downtown neighborhood design aesthetics for a like-minded feel;  Include premises checks for graffiti, trash, trespassers, and signs of vandalism in its employees’ tasks  Participate in environmental cleanup days for the immediate area on a semi -annual basis to perform graffiti removal, small repairs, and general cleaning;  Provide its contact information as required and as requested, and regularly interface with neighboring operators who can communicate concerns;  Ensure recurring internal staff meetings for continual improvement; and  Provide a proactive complaint response program detailed herein. Community Liaison: As described above, the Applicant has designated a Community and Outreach Liaison for the Fresno dispensary in compliance with Sec. 9-3309(m). has been Applicant’s Community Liaison for its existing cultivation facility in Carpinteria, California, since 2018. Stephan will expand her role for the Applicant’s proposed retail business in Fresno. Stephan is an active member of her community in Santa Barbara and will further develop her connections 7 Property of SLO Cultivation, Inc. in Fresno. Community members will be able to contact via phone for any concerns, questions, or community integration efforts. The Applicant will provide information to all businesses and residences located within 100 feet of the facility for any problems associated with the facility. See Sec. 9-3309(m)(1). The Applicant will also ensure that Stephan attends meetings along with the owner and manager with the City Manager and their designees to discuss costs, benefits, and other community relations during the first year of operation, and will continue these meetings as needed after the first year of business. Also, pursuant to Sec. 9-3309(m)(2), along with the owner(s) and manager(s) will meet with the City Manager and his/her designees whenever, and as frequently as requested by the City Manager and/or his/her designees. has been extremely involved in local communities since joining the team in 2018. is active in a variety of organizations in Santa Barbara and sits on the Board for the Carpinteria Education Foundation, Carpinteria Rotary Club, CARP Growers, and the Lou Grant Parent Child Workshop. She will extend her membership outside of Santa Barbara to the Fresno community upon the awarding of the license. Stephan has managed community involvement for the Applicant’s Carpinteria farm, resulting in 400 hours of service and over $52,500 funds distributed throughout Santa Barbara County. Connecting with the Community: In addition to the Applicant’s community integration efforts (See Criteria 7) and design efforts, Stephan will assist the Fresno local team with quarterly town halls for any community concerns. Stephan will also reach out directly to the Applicant’s neighbors and provide them with her contact information for any impacts on the Applicant’s surroundings or concerns. On a quarterly basis for the first 2 years of operation, and biannually thereafter, the Applicant will host either in-person or  virtual meetings where community stakeholders can address their comments in an open forum – translation services will be provided upon request. This creates positive dialogue and displays the Applicant’s intent to be good operators and great neighbors. In these forums, Stephan will address residents’ questions and concerns, provide business updates when appropriate, and serve as the primary point of contact for Fresno community members to engage with the Applicant. The agenda of the community meetings will be summarized and relayed via email to attendees or those who are interested in what was discussed. These community meetings will also provide an opportunity for the Applicant’s team to give updates on performed or planned volunteerism, special educational sessions the store is hosting, and upcoming events in the community where the Applicant can support the Fresno area. (See Criteria 7 for full Community Benefits and Investments Plan). Pursuant to Sec. 9-3309(m)(3), the Applicant has developed a public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth use of cannabis, and that identifies resources available to youth related to drugs and drug addiction. The Applicant will utilize Cresco’s infrastructure for community integration for this program and intends to create programming that goes above and beyond satisfying this requirement to become a cornerstone of the community for responsible cannabis use. See Criteria 7 for more details on the Applicant’s community integration, social equity, and public education efforts. 8 Property of SLO Cultivation, Inc. Further, the Applicant will work to be a positive impact on its neighbors by utilizing its security staff to patrol not only the dispensary, but watch for other disruptions to the community by alerting its neighbors of any graffiti during regular patrols, or any unusual or suspicious behavior outside neighboring establishments. 3.3. Odor Mitigation Practices The Applicant has created an odor control plan for its dispensary that demonstrates the implementation of ventilation and air purification systems with demonstrated effectiveness at Cresco’s other dispensaries. Cresco’s ventilation and air purification system has had success in highly regulated markets including Illinois, Ohio, New York, Pennsylvania, and Arizona. Cresco has never had odor complaints and has never had to expand its odor mitigation efforts past those described below. Cresco has an excellent track record of maintaining compliance with all odor requests. In that regard, the Applicant is prepared to take any additional measures that the City requires to further abate any odor concerns and will ensure the facility is in compliance with all odor mitigation requirements outlined by Sec. 9-3309(j), including but not limited to an exhaust air filtration system with odor control that prevents internal odors and pollen from being emitted externally; and an air system that creates negative air pressure between the premises interior and exterior so that the odors generated inside the premises are not detectable outside the premises. The Applicant’s plan for odor control considers 5 sections of the dispensary’s operations and facility construction that will work together to ensure odor is not detected at the facility, including: 1) implementation of sanitation measures, 2) environmental controls, 3) mitigating odor from display product, 4) ventilation and air purification systems, and 5) enhancing odor mitigation practices as needed. 1. Sanitation Measures: In order to minimize any contact odor the facility may produce, the Applicant will ensure that the dispensary is kept in a sanitary condition at all times, and will charge the manager with the task of maintaining the interior and exterior of the facility in a sanitary condition. The Applicant will ensure a comfortable space, minimizing intrusive odors and creating environmental controls to maintain cannabis products from degradation and contamination. Keeping the dispensary sanitary and clean will ensure all product is properly stored, surfaces are sanitized including Point-of-Sale (“POS”) areas that may have more odor due to display, and storage areas are kept free from accumulation of materials that constitute a hazard from fire, explosion, the harboring of pests, or a further source of odor. Further, the Applicant’s routine sanitation and maintenance practices include, but are not limited to: maintaining a regular cleaning/maintenance schedule; keeping work areas clean and dry; wiping down surfaces; keeping the vault organized and clean, removing trash; maintaining cracks, window and door frames, drain areas, and floor joints; removing any food or water supply outside of the facility; if pests are found on the facility, capturing and removing them or contacting the pest control service provider; and checking that all dumpsters are closed at all times unless in use. The Applicant will also use waste receptacles constructed of a smooth, corrosion resistant, and easily cleanable material with solid, tight-fitting covers. The number, size, and location of waste receptacles at the Applicant’s facility 9 Property of SLO Cultivation, Inc. will encourage their use and not result in overfilling. All receptacles will be emptied at least once each working day, unless unused, and will be maintained in a clean and sanitary condition. 2. Environmental Controls: The Applicant will have sufficient heating, ventilation, air conditioning, lighting, and dehumidification to ensure quality of cannabis product and prevent degradation. Further, storage areas will have good airflow and rooms will have controls to manage humidity and temperature. All environmental control within the dispensary will be controlled, monitored, and recorded via the building automation system (“BAS”). The BAS will include lighting, temperature, heating, cooling, humidification, dehumidification, and ventilation controls. It will also allow for remote monitoring and alert notifications if conditions exceed programmed thresholds. Product storage areas will be absent of light except as required for employee function, will have no windows, will have a room temperature of 65-69°F and 45-50% relative humidity, and adequate air circulation to mitigate the potential for microclimates, the degradation of product, and to promote a consistent storage environment. 3. Mitigating Odor from Product Displays: See Section 3.4 herein. 4. Air and Ventilation Systems: See Section 3.5 herein. 5. Enhancing Odor Mitigation Practices: See Section 3.5 herein. 3.4. Potential Sources of Odor Mitigating Odor from Product Displays: The Applicant intends to display cannabis as outlined by CCR 16-42-3 5405(a) (2019), which can sometimes be a source of odor. To mitigate display odor and any other peripheral cannabis odor, products will only be displayed in the retail area. To ensure that product displays and customer inspection serve their purpose, but minimize excess odor from product displays, sniff jars will be placed in close enough proximity to the ventilation system. The sniff jars utilize an aroma plug to mitigate odor at the source. These sniff jars have been tested in other highly regulated markets and will ensure that odor is not detectable outside of the facility. Further, to ensure all packaging mitigates odor, the Applicant will work with cannabis cultivators and producers to ensure that all cannabis that comes to the dispensary is prepackaged in a manner that minimizes odor – including child-proof packaging and plastic packaging is at least 4 mils thick and heat-sealed in compliance with CCR 16-42-3 5404 (A)(2) (2019). 3.5. Odor Control Devices and Techniques Air and Ventilation Systems: The Applicant will install an odor absorbing ventilation and exhaust system so that any cannabis odor generated inside the dispensary is not detected outside of the location or anywhere on adjacent property by implementing an effective activated carbon filter air purification system in compliance with Sec. 3309-9(j). This system includes installing the best available fans and activated carbon filters for odor mitigation at locations where odor may be most 10 Property of SLO Cultivation, Inc. apparent, including at entrances and product storage areas. To increase effectiveness of the carbon filters, they will be changed every 90 days and will be installed into an inline fan. Enhancing Odor Mitigation Practices: Should the Applicant see any need to enhance odor mitigation due to unforeseen circumstances, the Applicant has additional measures it can employ to further minimize odor detection. The Applicant can enhance odor mitigation by placing containers of odor-absorbing gel around the dispensary. Odor-reducing gel, like Ona gel, emits an air-freshening smell while absorbing and containing offensive odors. Ona gel is extremely effective in reducing the smell of odors and it does not require forced air to be effective. Staff can remove the lid of an Ona gel container and place it in any area of the building with good air flow. Staff can increase odor control even further by pouring gel into a tray and setting it out for air- exposure, thus increasing the rate of evaporation. 3.6. Proposed Staff Odor Training and System Maintenance The Applicant will require all new hires to complete odor and system maintenance training before starting work at the dispensary. Documentation on this training will be kept in accordance with CCR-42-16-1 5037 (2019). The Applicant will train all its employees to keep track of all complaints made to the facility and record them categorizing each by the type of complaint made, the date, who made the complaint, and what was done to fix the issue, utilizing the above process flow outlined in Section 3.1. All training on facility-specific protocols will be done in-person onsite, with a trained manager pointing out each step that needs to be taken to ensure all facility controls are working properly and all complaints are properly logged. The Applicant will ensure that odor training and system maintenance training happens at least annually, and more often if issues arrive or should new systems be put into place. The Applicant will train each employee how it should check the grounds for litter and dispose of it properly, check for excess odor in public rights-of-way as a person with normal sensitivity, and how to ensure that all environmental controls are in place and who is in charge of system maintenance. The Applicant will train each employee on all environmental control systems including ventilation techniques, lighting, temperature, cooling, humidification, and dehumidification controls – this includes assessing each system for functionality and appropriate ranges where necessary. Checking of environmental control systems will be done at the beginning of each day, and will be included in the Applicant’s opening procedures. Should any issue with an environmental control system arise, the Applicant will ensure that each employee is trained to notify a manager and the appropriate system vendor to schedule maintenance as soon as possible to mitigate any potential inventory, odor, or other unforeseen issues. 3.7. Waste Management All non-cannabis waste will be stored appropriately and disposed of promptly, so it does not become a nuisance, create unsanitary conditions, or promote pest infestation. All sweepings, solid wastes, liquid wastes, refuse, and garbage will be removed in a manner that avoids creating a menace to health, and as often as necessary or appropriate, to maintain the place of employment 11 Property of SLO Cultivation, Inc. in a sanitary condition. In accordance with this policy, it will be strictly prohibited to keep, deposit on, or scatter over the premises any of the following: accumulated media, junk, trash or debris; abandoned, discarded, or unused tools, objects or equipment; or any pile of trash which may spread or harbor disease, emit unpleasant odors or harmful gas, attract vermin, pests, animals or insects. Specifically, compliant waste destruction will be critical to operating the Applicant’s dispensary. Employees will destroy cannabis and cannabis-infused products in compliance with CCR 16-42- 1 5054 (2019) by rendering them unusable using methods approved by the BCC. The Applicant’s preferred method of destruction is by grinding and incorporating the waste with other ground material, so the resulting mixture is at least 50 percent non-cannabis waste. All waste management operations will take place on sanitized work surfaces, supervised by a manager, under video surveillance, and performed utilizing a properly registered National Type Evaluation Program (“NTEP”) scale. Approved scales will be certified for accuracy once yearly and they may integrate into the seed-to-sale tracking system to ensure accurate waste reporting. Once destruction is complete, a contracted private waste hauler or approved municipal waste service will deliver cannabis waste to a permitted solid waste facility for final disposal. As required by the BCC, the Applicant will also securely store all cannabis waste before final disposal in a segregated area in the receiving/eradication room. Disposal will be performed in designated areas in the receiving/eradication room for disposal activities. Waste disposal areas will remain under 24/7 video surveillance from at least 2 angles. All cannabis intended for disposal will be clearly labeled as such and will be segregated from all cannabis that is approved for distribution, thus ensuring that no product intended for disposal accidentally gets dispensed. For all cannabis waste, employees will weigh, record, and enter data into the inventory system before rendering it unusable. A dispensary manager will verify all waste destroying activity, which must be in an area with video surveillance. In addition, the Applicant will keep electronic documentation of destruction and disposal for a period of at least 7 years. Sanitation: Proper sanitation will be a critical component of safe dispensing procedures and quality control. The Applicant will keep the entire building and all equipment in a clean and sanitary condition, including keeping the facility free from insects, rodents, or pests. All equipment, utensils, and contact surfaces will be cleaned and sanitized regularly throughout the day to ensure proper cleaning and prevent contamination. All sanitizers and disinfectants used to prevent contamination will be used in accordance with labeled instructions. The Applicant will provide employees and visitors convenient handwashing sinks furnished with running water at a temperature suitable for sanitizing hands. Handwashing stations will have soap, sanitizer, and single use paper towels. Employees will wash their hands and exposed portions of their arms thoroughly at the following times: before starting work and at any other time when hands may have become soiled or contaminated; after returning from a non-limited access area; after using the restroom; after touching their face, eating, or drinking; and immediately before and after handling cannabis, equipment, or utensils. The manager and key employees within the dispensary will be responsible for ensuring that the facility stays free of pests. Adequate protection against pests will be provided using integrated pest management practices and techniques that identify and manage pest problems, and the regular 12 Property of SLO Cultivation, Inc. disposal of trash to prevent infestation. This will require daily inspections of the facility, with focus at all entry points, the storage area, and anywhere there are trash receptacles. Daily Facility Cleaning: The dispensary will be kept and maintained in a sanitary condition at all times. The manager will be responsible for maintaining the interior and exterior of the facility in a sanitary condition. Storage areas will be kept free from accumulation of materials that constitute a hazard from fire, explosion, or the harboring of pests. Materials, including scrap and debris, will be piled, stacked, or placed in a container in a manner that does not create a hazard to employees. The Applicant will use waste receptacles constructed of a smooth, corrosion resistant, and easily cleanable material. The number, size, and location of waste receptacles at the Applicant’s dispensary will encourage their use and not result in overfilling. They will be emptied at least once each working day, unless unused, and will be maintained in a clean and sanitary condition. The Applicant will use receptacles with a solid, tight-fitting cover unless sanitary conditions can be maintained without the use of a cover. The Applicant’s routine sanitation and maintenance practices include: upholding a regular schedule for cleaning and maintenance activities and record corresponding logs; keeping work areas clean, dry, and free of mold, mildew, debris and other clutter; removing trash; maintaining cracks, window and door frames, drain areas, and floor joints with sealant to limit pest movement; eradicating any weeds or pest habitats surrounding the facility; controlling airborne contamination as needed where marijuana products or contact surfaces are exposed; inspecting the facility for mold and having a mold expert address any mold found in the facility immediately; checking that any pipes within 20 feet of the building are closed-ended, not leaking, and are carrying sufficient quantities of water to required locations throughout the facility; cutting grass and weeds to minimize pests; removing any food or water supply outside of the facility that could attract and support a pest population; if pests are found on the facility, capturing and removing them or contacting your pest control service provider to capture and remove the pests; and checking that all dumpsters are closed to exclude pests and close any dumpsters that are open. Pest Control: The manager will be tasked with implementing and monitoring the Applicant’s pest control policies as needed. They will ensure that employees are appropriately tasked with day-to- day documentation of pest management, findings, and corrective actions taken to mitigate pests. The Applicant’s pest management procedures include monitoring traps, glue boards, interior and exterior rodent control devices, controlling birds through exclusion measures, using a registered and certified pest control service, and utilizing facility cleaning and maintenance procedures to limit or prevent pests. The Applicant will ensure that all employees are instructed to record all installation and maintenance of mitigation procedures on the Facility Maintenance Log and are indicated on a facility diagram with their date of placement to ensure that maintenance procedures are followed across shifts. 13 Property of SLO Cultivation, Inc. 4. SAFETY PLAN The Applicant has created a Safety Plan that considers all possible fire, medical, and hazardous situations. Utilizing the Applicant’s Parent Company’s, Cresco Labs (“Cresco”), corporate infrastructure and emergency procedures from other jurisdictions, the Applicant has created a plan that ensures that each section of safety, from securing a Fire Suppression Consultant to emergency procedures, is ready in case of an emergency on Day 1. This plan ensures that all regulations by the City of Fresno in the Fresno Municipal Code (“FMC”) and by the Bureau of Cannabis Control (“BCC”) are followed while keeping each employee and customer as safe as possible. The Applicant’s Safety Plan includes the Applicant’s: 1) professional fire prevention and suppression consultant; 2) accident and incident reporting procedures; 3) evacuation routes; 4) fire extinguishers and other fire suppression equipment; and 5) procedures and training for all fire and medical emergencies. 4.1. Professional Fire Prevention and Suppression Consultant The Applicant has secured a professional fire prevention and suppression consultant, who has assessed this plan for safety (see Letter and Slide Deck attached hereto as Exhibit A). The Applicant chose Matson because not only is it a local company, it is the company currently managing the fire prevention and suppression systems for the entire building where the Applicant’s proposed location is and the other tenants in the building. Matson Alarm Company is the largest local, privately owned security company in the Central Valley, with its corporate office in Fresno, and other offices in Visalia, Bakersfield, and Modesto. Matson works with as its Fresno Partner. Skynet is a licensed security consultant and integrator headquartered in Chicago, Illinois, with local partners across Illinois, Michigan, Wisconsin, Indiana, New York, Georgia, Ohio, California, Florida, and Texas. Skynet works with a variety of markets, including hospitals and non-profits, manufacturing and industrial facilities, retail and service facilities, and government/public sector buildings. Matson will ensure that the Applicant’s location is up-to-date with current safety standards and meets or exceeds all requirements by the City of Fresno. In addition, this Safety Plan has been developed and reviewed by Mr. is a security and safety professional who serves as the Director of Security- Retail for Cresco Labs. A signed attestation from Mr. is attached hereto as Exhibit B. 4.2. Accident and Incident Reporting Procedures The Applicant understands that it has specific reporting requirements to the BCC, in compliance with CCR 16-42-1 5035 (2019), outside of its requirements to report diversion, theft, loss, or other criminal activity. The Applicant has created an accident and incident reporting plan that covers all reporting requirements required by the BCC and the Fresno City Manager, incident assessment 1 Property of SLO Cultivation, Inc. and containment, response to larceny and diversion, and a workflow that covers the entire process step by step. For each reportable event, the Applicant will ensure that all the following steps are covered (as outlined on the workflow included herein): 1. If incident is discovered by a Wellness Advisor, report the incident to the dispensary manager; 2. The dispensary manager will report the incident to the Security Director (see Criteria 5), Cresco’s Retail Director, Compliance, and Legal Team; 3. This stakeholder group will assess the issue and delegate next steps, including: o Conducting an investigation and mitigating the issue o Filing an Incident Report o Communicating response to the BCC and City Manager 4. After issue has been communicated and mitigated, the Applicant will conduct a post- incident review and adjust any policies for prevention and remediation of reportable events in the future. The Applicant will ensure that it reports all instances of the following both within 48 hours of the occurrence and in its annual license renewal: • Criminal conviction of any owner; • Civil penalty or judgement; • Revocation of local authorization; or • An administrative order for violation of labor standards. In addition, the Applicant is committed to cooperating with the Fresno City Manager to inspect or audit the effectiveness of any security plan or other requirements in accordance with Sec. 9- 3310(b)(4). The Applicant will also notify the City Manager within 24 hours of the occurrence of any of the following: • Significant discrepancies identified during inventory; • Diversion, theft, loss, or any criminal activity involving the cannabis retail business or any employee of the cannabis retail business; • The loss or unauthorized alteration of records related to cannabis, customers, or employees of the cannabis retail business; and • Any other breach of security. See Sec. 9-3310(b)(5). Incident Assessment and Containment The Applicant will follow all rules and regulations pertaining to reporting adverse events as outlined above and will use Cresco’s existing suite of standard operating procedures (“SOPs”) to ensure that events are reported properly and in a timely manner. This includes training all employees to understand incident response procedures to ensure the BCC is notified and all details are recorded. 2 Property of SLO Cultivation, Inc. The Security Director will determine the category and severity of the incident and determine the next best course of action. All discussions, decisions, and activities will be documented. The Security Director will be responsible for checking all surveillance footage and communicating any findings to the stakeholder group in the second step of the workflow. The Retail Director will be responsible for assessing all recordkeeping and employee interviews and communicating to the same stakeholder group. Cresco’s Legal and Compliance teams will assess all regulatory and licensing requirements with the stakeholder group, as well. The Applicant will notify the BCC of the following, in compliance with CCR 16-42-1 5036(a) (2019): if the Applicant is unable to comply with any licensing requirements due to a disaster that caused the facility to close (See CCR 16-42-1 5038(a) (2019)); and if the incident being assessed and contained resulted in any theft, burglary, diversion of cannabis goods or other criminal activity. In addition, the Applicant will review and maintain records regarding any complaints about its cannabis products. These records will include but not be limited to: Complaint/Adverse Event Log; any records related to the investigation of the complaint (e.g., name of product, date of production, product tracking information); any records collected by the recall team; and any records generated to formulate an appropriate response. Response to Larceny and Diversion 3 Property of SLO Cultivation, Inc. The report will be filed and maintained in the Applicant’s business records for 7 years after the date of the incident and will be made available to the BCC upon request in accordance with CCR 16-42-1 5037(a)(6) (2019). Incident Review After any reportable incident, the Applicant will ensure that a post-incident review is scheduled within 2 to 3 weeks of the incidents resolution and will involve all appropriate employees, an examination of the incident and related activities and events, and a discussion of proposed changes to policy and processes. The Applicant’s Post-Incident Report will include, at a minimum, the requirements set forth in CCR 16-42-1 5036(a)(5)(b) (2019): • A description of incident events with specific timelines; • Employee(s) involved; • Non-employees involved; • Impact to affected parties; • Discussions, decisions and assignments made; • Any communications with the BCC, in the form of a Notification Request Form, local licensing authorities, and local law enforcement; • Successful and unsuccessful activities; • Notifications required or recommended; • Steps taken for containment and resolution; • Recommendations for prevention and remediation (short-term and long-term); Identification of policy and procedure gaps; • Results of post-incident review; and • Any necessary follow-up actions. Accident and Incident Reporting Workflow The Applicant has created a workflow that will be readily available for all employees in the event a reportable event occurs. This workflow ensures that the fewest cannabis retail business employees are aware of the situation for seamless operations and to ensure the confidentiality and integrity of the investigation. 4 Property of SLO Cultivation, Inc. 4.3. Evacuation Routes Property of SLO Cultivation, Inc. Evacuation Procedures The Applicant’s Evacuation Procedures address the when, where, and how to safely evacuate the facility: 4.4. Location of Fire Extinguishers and Other Fire Suppression Equipment Working with Matson, the Applicant has identified 5 locations throughout the cannabis retail business that it will place fire extinguishers to ensure that each section of the facility will have access to a fire extinguisher: the IT room, Sales Counter, Check-In Counter, Sales Floor, and Vault. In addition, the Applicant and Matson will ensure that the building will have a sprinkler system installed along with light strobes and horns throughout the building in strategic places to alert the entire facility in case of an emergency. 6 Property of SLO Cultivation, Inc. 4.5. Procedures and Training for All Fire and Medical Emergencies In the event of an emergency, adhering to the general steps developed in this guide maximizes the opportunity for the safe protection and, if necessary, orderly evacuation or relocation of all occupants as outlined above. Safety of building occupants is the primary concern of any emergency plan. The preservation of the building and contents is secondary. The Applicant will train each employee on the following procedures, in person at the facility to ensure that each employee understands where and when all procedures should take place. This training will occur within the first 30 days of employment, per the Applicant’s training plan (See Criteria 4). The Applicant will ensure that the majority of all employees are trained on emergency procedures during the facility’s opening hours, so that all employees and customers stay safe and can be directed appropriately in the case of an emergency. Emergency Procedures Immediate and Life Threatening Emergency………………........................................................911 Any employee that recognizes an immediate and life-threatening emergency will notify the dispensary manager and security guards of the emergency and that emergency vehicle is en-route. The dispensary manager is responsible for calling 911. After calling 911, the dispensary manager will notify the appropriate cannabis retail facility designees. Fire 1. Notification in the Case of Confirmed Fire: Assess the situation. Sound fire alarms. The dispensary manager should call 911 and be prepared to relay the exact physical street location and building: Example: "There is a fire at Sunnyside* Fresno, located at 736-742 Fulton Street” Also, give specific location within a building: Example: "The fire is in the lobby." 2. If you See or Smell Smoke or Other Suspicious Odors: Call the dispensary manager and alert others – Initiate voice alert. Example: "Fire, Fire, Fire!" 3. When Notified of Fire in your Work Area or Building: Evacuate the building. Do not return to your work area/building until notified by the security guards or dispensary manager that it is safe to return. 4. If you Encounter Smoke or Flames: Stay calm. Crawl low under the smoke to get to clean air. Reach up as high as you can and touch the doorknob with the back of your hand. If the doorknob is hot, use another escape route. If the doorknob is cool, open it cautiously and continue along your escape route. Evacuate using stairwells – do not use elevators. Follow directions from security guards and the dispensary manager. Proceed to the designated meeting point. Authorized employees: Use fire extinguisher only if you have been trained and fire is small. 7 Property of SLO Cultivation, Inc. Accidental Spill of Hazardous Substance 1. Spills / Releases that are Immediately Dangerous to Life or Health (IDLH): Quick Steps – Sound the fire alarm. Dial 911 from any phone or 911 from any other phone from an area away from the incident. All employees and customers are to immediately evacuate the area to a designated meeting point, as instructed by emergency personnel, for possible decontamination. 2. Spills / Releases that are Immediately not IDLH but Require Technical Assistance: Quick Steps – Notify the dispensary manager or security guards who will be responsible for calling 911 or the 311 non-emergent line. Medical Emergencies 1. Major Medical Emergencies: Action should be taken in cases of life-threatening situations such as: • an unconscious person; • no breathing or choking; • cardiac arrest; • severe bleeding; or • any other similar situations. If you are unsure about the seriousness of the situation do not hesitate to call emergency assistance (911). Attempts should be made to assist the victim. Upon observation of the medical emergency, take the following actions: • If you are able, render first aid/CPR or obtain assistance of someone who is accessible and willing to manage the situation. • Call or have someone call 911 for EMS and then alert the dispensary manager and security guards. • State the nature or type of emergency. • Give the location of building, floor or room. • Identify the person and any other pertinent information which will help prepare responders.  Age  Gender  Symptoms victim is exhibiting  Pre-existing health condition (if known)  Medication the victim may be taking (if known) • Stay with victim until emergency personnel arrive. • Have another individual in the area meet the emergency personnel to expedite locating the victim inside a building. • Following the medical emergency, prepare an incident report regarding the actions taken in response to the emergency. 2. Medical Emergencies and Injuries (General): Injuries which are not life threatening, but which have occurred on the property: 8 Property of SLO Cultivation, Inc. • First aid should be provided within the scope of knowledge and skill by anyone who is readily accessible and willing to manage the situation. • If necessary, security guards will assist the injured person in arranging transportation to a hospital. • The Applicant’s employees will not, as the Applicant’s representatives, provide personal transportation for injured or ill persons. Call EMS 911 and notify the dispensary manager and security guards. Disruptive or Disorderly Conduct If a person is perceived to be at immediate risk or danger to themselves or others call 911. 1. Incidents involving complaints or minor misconduct by visitors, other non-employee individuals should be resolved by dispensary managers when at all possible. All incidents are to be reported to security guards. 2. If security guards are unable to immediately resolve the incident/complaint: Call 911. 3. Major incidents should be immediately reported to security guards and reported to appropriate dispensary management and ownership. Weapons on Site Anyone having knowledge of a weapon or an armed person onsite should immediately call 911 from any phone, and then alert security guards onsite. 1. Be prepared to provide the following information to emergency personnel: • Location of the armed person. • Type of weapon, i.e. rifle, pistol, knife. • Actions (and, if know, purpose) of armed individual. • A complete description of the individual. • Whether or not any shots have been fired. • Your name and where you can be located if needed. 2. After notifying emergency personnel, notify security guards and the dispensary manager of the situation. Unless otherwise directed, persons onsite should remain in their office or working area with doors closed and locked, if possible. If there is danger of shots being fired or if shots have been fired, all persons should lie on the floor and remain as calm as possible. Individuals should remain in a place of safety until notified by security guards or the dispensary manager that any danger has been resolved. 9 Property of SLO Cultivation, Inc. Bomb Threat Procedures 10 Property of SLO Cultivation, Inc. Bomb Discovery If a bomb or suspicious package is discovered in a building or on the cannabis retail business’ grounds. The Applicant will ensure the following procedure: • DO NOT TOUCH - Leave the building. • Notify onsite security guards. Severe Weather Alerts A decision to dismiss employees or close the facility will be made by management and/or ownership when weather or other conditions pose a potentially serious threat to the health or safety of the cannabis retail business’ visitors and employees. DURING NON-BUSINESS HOURS The decision to close the cannabis retail business for day shifts will be made as much before 8:00 a.m. Pacific Time as possible and will automatically extend through noon. The decision to extend the closing beyond noon will be made as much before the time as possible and will include canceling all scheduled evening shifts. The decision will be communicated using the following process: 1. Upon notification from management/ownership, dispensary managers will notify their employees. 2. The dispensary manager will notify the news media of the closing decision, if such notification seems necessary. 3. Employees may also be notified via phone message or text message. Employees are encouraged to provide cell phone numbers with texting service in order to receive alerts and messages. DURING BUSINESS HOURS 1. If operations are in session and the cannabis retail business is occupied, the notification to close may be done in person or by telephone. 2. Should the decision be made to close the cannabis retail business, employees should prepare work areas as necessary to lessen potential property loss from the adverse event. Such as: • Disconnecting all electrical equipment – computer, TV, VCR, computers, calculator, coffee pots, etc. • Moving delicate or electrical equipment away from windows toward the interior walls to the extent possible. • Securing (close and lock) windows and doors when leaving and turning off all lights. 11 Tornado Tornadoes give little or no advance warning. Extreme and sudden winds can present similar hazards. Take precautions upon notification of tornado-like weather. A tornado watch means that weather conditions are right for a tornado. During a watch, the security guards and dispensary manager should stay alert to changing weather conditions. A tornado warning means that a tornado has been sighted. You should: • Seek shelter inside building or other secure location. Avoid glass and exposure to flying debris. • Take cover on the lowest floor possible in an inside closet, restroom, central hallway, or other enclosed space without windows, or under study furniture. • Stay away from areas with wide span roofs or windows, such as the cafeteria, gymnasium. • If time does not allow for movement, cover should be taken away from glass windows and under protective items such as tables or desks. • Once individuals have reached a shelter or "take cover" location, they should assume a seated position on the floor with their heads down and their hands over their heads or place themselves under a desk or between fixed seating (if available) with heads lower than the backs of the seats. Flood • Be aware of road conditions during periods of extremely heavy rainfall. • Facilities may not be exposed to flooding themselves, but hazardous conditions may exist in traveling to and from these locations. Avoid going near flooded areas. • Do no drive into flooded streets. Water depth is unknown, and the condition of the roadway is not certain. 12 SAFETY PLAN: EXHIBIT A 13 SAFETY PLAN: EXHIBIT B 23 24 SAFETY PLAN: EXHIBIT C 25 5. SECURITY PLAN The Applicant’s site security plan leverages the regulatory and compliance knowledge of the Applicant’s operational facilities in California while applying the best practices and standard operating procedures (“SOPs”) from the Applicant’s Parent Company’s, Cresco Labs (“Cresco”), cannabis retail business operations. The Applicant’s site security plan was designed by Cresco’s security and retail personnel who have extensive experience designing and implementing similar floor and security plans across the country. As the Applicant’s security overlay (included below) depicts, the site has been designed to maximize security within the space, with every activity monitored each step of the way. The plan ensures effective security measures that keep all employees, customers, and goods within the facility safe through tested access control systems, inventory control systems, and safe cash handling practices. 1 7. COMMUNITY BENEFITS AND INVESTMENTS PLAN     As an experienced cannabis retail operator with more than 20 dispensaries nationwide, the Applicant’s parent company, Cresco Labs (“Cresco”) has witnessed both the business and civic value of thoughtful and robust community education in multiple markets nationwide. This critical component of successful community integration and retail operations is an invaluable aspect of Cresco’s and the Applicant’s business – at the core of their corporate values. As outlined by the Fresno Municipal Code (“FMC”) Sec. 9-3309(m), the Applicant has created a plan that considers the communities needs while leveraging Cresco’s experience with community integration; includes local partnerships through a social responsibility plan; creates opportunities for expungement clinics and outreach services; considers projects for environmental sustainability and the use of blighted land; ensures a robust public health outreach and educational program; and commits to community investment and contributions to the Fresno Community Reinvestment Fund.   Fresno is a close-knit community filled with character and culture. This is exemplified through its existing cultural community events, its growing focus on social equity, and its love for the arts as seen through its beautiful murals throughout the city. Fresno, like most communities in the San Joaquin Valley area, has been negatively impacted by the War on Drugs and suffered from community disinvestments. To be impactful and successful with social responsibility efforts, the Applicant will partner with local organizations that are already doing important work in Fresno and its surrounding communities to both support existing programming and assist in building out additional opportunities to serve residents. Conversations with local community and business leaders have already led to an intimate dialogue surrounding immediate local needs and opportunities in the community. Through both short- and long-term investments, the Applicant looks to support initiatives that have been identified by trusted community stakeholders as a priority, and which have a proven track record of impacting positive change combating the decades of damage resulting from the War on Drugs. By listening and allocating investments accordingly, the Applicant will support organizations that serve as the voice of the community.  The Applicant will provide local community support by aiding, participating in, and funding the work of local nonprofits, community-based organizations, civic organizations, and social service organizations through event and program sponsorship, volunteering, providing educational resources, and both monetary and in-kind contributions. As a member of the Fresno business community, the Applicant will participate in City-sponsored activities and show support for initiatives that matter to Fresno residents and align with the Applicant’s mission and values, in accordance with state and local regulations. 1 Property of SLO Cultivation Inc. Cresco’s Participation in Community Events Nationwide The Applicant also benefits from Cresco’s existing network of operational facilities. With experience in every city in with it operates throughout the United States, Cresco has demonstrated its ability to meaningfully participate in community-based events and programs in diverse ways that best suit the community’s needs. The Applicant will build on that track record in Fresno. Recent examples of Cresco’s participation include: In preparation for opening its manufacturing facility in Marshall, Michigan, Cresco learned from local stakeholders that the city’s holiday parade and tree lighting ceremony were important aspects of the community’s holiday celebrations. Cresco made financial contributions to both events and got into the holiday spirit by decorating a pickup truck with lights and other festive decor that 9 of its employees from both Michigan and Illinois accompanied in the parade. Through open communication with business leaders, Cresco learned that the Village of Elmwood Park in Illinois (where it operates a retail location) valued its annual Fight Night fundraiser. The event supports village-sponsored programming including the summertime Concerts in the Park series as well as the popular Fall Fest. Fight Night is consistently well- attended by hundreds of residents, and the Village Manager has said “there’s no doubt [Fight Night] builds community.” Cresco served as a Ring Level sponsor, and its awareness that supporting Fight Night was important to the community earned Cresco an even stronger reputation as a good corporate citizen, furthering opportunities to engage with local organizations with trust, transparency and mutual respect. 2 Property of SLO Cultivation Inc. 7.1 Social Responsibility Plan The Applicant will leverage best practices from partnerships throughout all of Cresco’s network states to execute meaningful programming and support existing initiatives that are important to Fresno residents and align with the Applicant’s mission and values. Its carefully selected partners for the social responsibility plan include Arte Americas, Fresno Black Chamber of Commerce, and the Fresno Arts Council, in addition to expungement clinic efforts in partnership with Fresno Live Scan, Fresno Clean Slate Program, Barrios Unidos, Fresh Start Law Center, and the Fresno Public Defender’s Office. The Applicant’s plans with these organizations are set forth below. Local Partnership: Arte Americas In its initial year, the Applicant will allocate $100,000 to Arte Americas (“Artes”) to support its capital campaign in efforts to further renovations and acquire systems needed to obtain official museum accreditation. Artes is in the heart of downtown Fresno and serves neighborhoods and communities most impacted by the War on Drugs and decades of disinvestment. The success and longevity of Artes is crucial to the culture and history of Fresno. Its success and eventual accreditation as a museum would both elevate the organization and benefit the greater community. It will become one of few acknowledged cultural hubs for California and the country. Helping elevate Artes to museum status will also bring economic opportunity to the community and region. The economic development impact to the Fresno area would be exponential by the influx of visitors as they patronage local businesses, restaurants, and lodging establishments.    To further assist with operating support for capital needs, renovations, equipment, maintenance, and new technologies, the Applicant will invest $100,000 annually in Artes and its programs. Beyond a culture center, Artes serves as a hub for community education – offering online healthy culinary programming, providing a venue for local farmers to sell their goods, offering low impact workouts for seniors, and executing bilingual programming. Through this continual investment, the Applicant will assist in sustaining an institution that provides resources to community members beyond (future) immediate staff. Should the center face an unfortunate event and shut down, the Applicant will reallocate the funds to another cultural institution serving the community in a similar and multi-faceted manner. To gauge impact and identify opportunities for improvement in the partnership, the Applicant will collaborate on bi-annual reports from Artes outlining the impact of the Applicant’s contributions and best opportunities for continued engagement.     Local Partnership: Fresno Metro Black Chamber of Commerce The Applicant understands the potential impact of the cannabis industry to contribute to revitalizing communities. The Applicant wants to provide pathways for justice-impacted individuals to find opportunities within the cannabis industry. To assist with efforts, the Applicant will invest $75,000 annually and partner with the Fresno Metro Black Chamber of Commerce to grow and sustain its Fresno Recently Incarcerated Entrepreneur Network and Discovery Strategy (“FRIENDS”) Program. The mission of the FRIENDS Program is to empower system-impacted communities of color and formerly incarcerated individuals to explore entrepreneurship as a pathway to self-sufficiency and financial sustainability. Through this program, and in partnership with the Chamber, the Applicant will provide educational content to individuals impacted by the 3 Property of SLO Cultivation Inc. war on drugs who now seek a career in business and potentially within the cannabis industry. In collaboration with Cresco’s Social Equity & Education Development (“SEED”) initiative, the Applicant will provide qualifying community members access to classes, content and technical assistance to support participants’ successful entry to the burgeoning cannabis industry. Residents will also have the opportunity to participate in workforce development programming including resume writing, interview skills workshops, and special recruitments events. Partnering with the Fresno Metro Black Chamber of Commerce will allow access to populations who may benefit from existing workforce development initiatives with other partners in the Fresno area hence creating a pipeline of local opportunity and pathways to employment in the cannabis industry. These programs will allow the Applicant to positively impact Fresno residents by creating pathways to professional opportunities in the cannabis industry, build equity, and revitalize the local community.   Local Partnership: Fresno Arts Council  The Applicant has secured a partnership with The Fresno Arts Council (“FAC”), the local arts agency designated by the County Board of Supervisors to serve the county’s citizens. A State- Local partner to the California Arts Council, FAC is charged with providing financial support, services, or other programs to a variety of cultural arts organizations, individual artists, and the diverse communities of the county. The Applicant is committing $50,000 annually to FAC to support its operations and assist with creating an art space for community members experiencing homelessness through its Arts in Corrections and Rehabilitation program, which helps to prepare incarcerated individuals for success upon release, enhance rehabilitative goals, and improve the safety and environment of state prisons. In the inaugural year of this partnership, the Applicant will contribute an additional $25,000 to FAC to fund the immediate construction of the much- needed fencing required to preserve and protect the water tower.   Local Partnership: Dulce UpFront Labs  Through a cross-cultural and multi-generational approach, Dulce UpFront Labs is a local organization serving the residents of Fresno and its surrounding communities through conscious art and safe spaces with a focus on healthy and regenerative cultural celebration. The Applicant will partner with this organization by contributing $50,000 annually to support its free community events and social-equity community programming serving justice-impacted youth, queer youth, and local artists. The investment is targeted at growing and sustaining existing program efforts as well as assisting with the acquisition and maintenance of multimedia technologies to allow youth to empower themselves through their artistic expression. Expungement Clinics and Outreach Services Through Cresco’s SEED initiative, the Applicant’s team members have experience in outreach to communities adversely impacted by the War on Drugs, including hosting expungement events. Established in May 2019, SEED aims to ensure that all members of society have access to the skills, knowledge, and opportunity to work in and own businesses in the cannabis industry. Cresco and the Applicant believe the cannabis industry has a responsibility to invest time and resources to work to remedy the relative absence of Black and Brown participation in the cannabis industry, resulting from the disproportionately negative impacts of the War on Drugs in many of these 4 Property of SLO Cultivation Inc. communities. SEED creates positive impact across all of Cresco’s operations by developing tangible pathways into the cannabis industry for individuals and communities adversely impacted by the War on Drugs through its 3 pillars: Restorative Justice, Education and Workforce Development, and a Community Business Incubator. Over the past year, SEED has invested $397,931 to cover the cost of expungement events in multiple states and other justice-oriented programming and events. In all, SEED financially supported more than 1,000 individuals seeking expungement of their criminal records. SEED has made invaluable contributions to adult education across multiple of its network states in the form of in-kind donations of volunteer staff hours, and time and expertise to write curriculum, teach classes, and host workshops at local colleges and universities. In addition to its intention to serve as a Social Equity Business Incubator (please see Criteria 2 for full information on the Social Equity Business Incubator), the Applicant will continue to make financial investments in and dedicate resources including business operations support, workforce development and education programming, and volunteer hours to local initiatives supporting individuals and communities. One financial commitment the Applicant will make upon license award is it will allocate $100,000 to provide funding for expungement clinics, underwriting for costs of fingerprinting and obtaining costs of rap sheets, and other efforts supporting community members who have been adversely impacted by the War on Drugs. The Applicant will also partner with local groups including Barrios Unidos, the Fresno Metro Black Chamber of Commerce, Fresh Start Law Center, and the Fresno Public Defender’s Office to execute these expungement clinics.    Environmental Sustainability and Repurposing Blighted Land Being an exemplary corporate citizen means not only engaging with community members, but also being environmentally responsible. The Applicant’s proposed site is in a historic building estimated to be 100+ years old. Although the building once housed several small businesses, it is now unfortunately in a state of disrepair. Major renovations are required for occupancy, providing an excellent opportunity to install energy efficient utilities and modernize the structure. The Applicant will build off Cresco’s existing best practices to make similar infrastructure investments and retrofit the location for proper and environmentally friendly operations. Some investments will include adding energy efficient windows and proper green lighting technology. Sustainability 5 Property of SLO Cultivation Inc. practices already in effect across Cresco’s other locations will also be followed, such as ensuring paper products are sourced from recycled materials and the preferred utilization of electronic distribution of information when possible.  Cresco has participated in multiple beautification projects in each of its network states, including roadside and residential neighborhood cleanups, repurposing vacant lots into community gardens, and removing destructive graffiti while supporting muralists and other residents using art to uplift their communities. Through financial support, volunteer hours and in-kind contributions, Cresco has consistently demonstrated its commitment to environmental sustainability. Earlier this year, Cresco donated more than $27,000 worth of recycled agricultural equipment from one of its Illinois cultivation facilities to one of its local partner organizations. The recipient of these materials, Plant Chicago, is a local nonprofit organization with the mission to make our cities healthier and more efficient by developing and sharing the most innovative methods for sustainable food production, energy conservation and material reuse. The Applicant is eager to continue to grow its environmentally responsible practices as a new member of the Fresno business community. 7.2 Public Health Outreach and Educational Program Balancing the potential benefits of responsible adult use against the necessity of preventing cannabis use by minors, is arguably the most important component of cannabis education. Investing in youth and public health is an investment in a healthy future for the community. The Applicant understands the importance of preventing cannabis use by minors and shares the community’s concerns on this subject. In this way, the Applicant has developed a public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth use of cannabis, and that identifies resources available to youth related to drugs and drug addiction as outlined by Sec. 9-3309(m)(3). To develop an effective public health outreach and educational strategy, the Applicant will work with local stakeholders to financially support exiting responsible education programming and work with local partners to create additional public health and education programming. Partnership with Fresno Barrios Unidos (FBU) The Applicant has identified Fresno Barrios Unidos (“FBU”) as the strongest community partner for executing responsible cannabis education programming and has initiated conversations with FBU already. FBU has served Fresno’s youth for more than 25 years targeting a community that has been historically neglected, leading to conditions that perpetuate cycles of poverty and inequitable health outcomes. Emerging from a community response to youth involvement in gangs and recognizing the capacity for leadership, power within those youth FBU works to create a thriving Fresno that puts people first, through services supporting youth, parents, and health education. In alignment with the Applicant’s mission to professionalize cannabis, FBU exemplifies a similar passion in its provision of essential services.   Although FBU has a stable budget and sound policies and systems, investing in organizations requires looking beyond budgets and data points. It takes believing in people and their leadership. In addition to shared organizational values, the Applicant believes synergies with FBU’s Executive Director, Ashly Rojas, will bolster its positive impact on cannabis education in the Fresno area. In its conversations with Rojas, the Applicant learned about FBU’s commitment to developing 6 Property of SLO Cultivation Inc. positive solutions for challenges some neighborhoods experience as a result of being historically and systemically left behind creating conditions leading to food deserts, generational poverty, and unsafe schools that fail to be inclusive to many local students. FBU’s 4 pillars of work, (transforming trauma by nurturing community, training youth advocates, using healing and culture for strength and resiliency, and cultivating collective power to drive change) align with the Applicant’s beliefs and values.     Through state-wide health education initiatives FBU has led in California, it has serviced more than 14,000 youth annually, built strategic partnerships across grassroots and government entities, provided more than 12,000 middle and high school students with peer-lead sex education, and uplifted hundreds of families through mentorship, parent education, case management, and healing opportunities from trauma. More than 215 adolescent parents (under the age of 20 years old) have gone through FBU’s programs and have achieved a 98% success rate in high school graduation, an 89% increase in making healthy medically informed decisions about their bodies, and an increased parent-child interaction of reading an average of 19 minutes per day. In addition to the numerical data, FBU reported anecdotally that young parents have emerged from the program with greater confidence and ability to be advocates for themselves and their families. FBU’s history with public health and outreach make it an ideal partner to drive additional public health initiatives to outline risks of youth cannabis use and create additional resources for youths with respect to addiction.     Community Investments in Education The Applicant will make an annual $150,000 investment in FBU to sustain operations and grow content and services for justice-impacted youth programming focused on drug use and harm reduction. This contribution will be directed towards existing FBU-driven initiatives including organizations such as: Men with Heart; Safety First; Boys and Men of Color; and Get Your Life.     The Safety-First program provides education and transformational programming intended to support Latino youth to gain a comprehensive understanding of substance use and harm reduction to transform the community climate regarding substance use and youth criminalization. This effort leads to increased access to care, reduction of self/community stigma related to substance use, increased empathy/compassion for individuals navigating substance use, and foster youth-led systems change efforts impacting the local criminal-legal system. Men with Heart provides weekly support and advocacy development groups for system impacted and formerly incarcerated young men, many of whom were negatively impacted by the War on Drugs. Programming includes centering culture and healing in addition to systems change as healing work. Leadership development sessions revitalize young men through community building. The Get Your Life Program aims to drive an increase in adolescent young girls (“AYG”) and Boys and Men of Color (“BMoC”) awareness and utilization of HIV/STI testing, through peer navigators and peer support with pre- and post-surveys for program participants. Efforts to provide mobile/access for HIV testing increases awareness, access, sustained utilization of PrEP and PeP (HIV-related pharmaceuticals) through peer navigators and peer support. The program also provides education, outreach, and community building for AYG and BMoC through a harm reduction lens to reduce shame and stigma around HIV.     7 Property of SLO Cultivation Inc. All 3 of these programs are crucial for protecting Fresno's public health and addressing the cities high incident of substance. The infusion of a $150,000 will enhance and support the success of the programs by providing flexible support to remove barriers to care for 90 system-impacted youth and/or formerly incarcerated individuals, a number the Applicant seeks to grow beyond 100. The expansion of these programs is essential for breaking cycles of poverty and facilitating the success of young parents in Fresno’s empowerment and health.     Through this partnership and annual investment, the Applicant will assist in delivering impactful programming to further existing community outreach and grow/revamp the organization's current youth prevention and health care services. Funds from this partnership will allow for a more rapid response with barrier removal and essentials that keep youth from accessing opportunities and/or sustaining their progress. By increasing the organizations ability to responsive to those barriers, FBU will be more resourced to authentically invest in equitable opportunities for young people healing from historical and systemic trauma. Other funds will also allow FBU to fill a large gap in funding participant stipends. Rojas explained to the Applicant, “if we want youth at the table, we need to remove barriers to get them to the table.” Other benefits to program participants from this investment include access to transportation for court dates, assistance with obtaining attorneys, and support to increase attendance for participants’ probations hearings, all of which have a lasting positive impact not only the individual participants, but also on the greater community.     These programs provide content on drug prevent and risk education in addition to resources guides for youth. The Applicant is experienced with addressing language barriers that can impact accessibility of content in its business operations, including providing dual language product labeling. In alignment with its existing best practices, the Applicant will help revamp and expand FBU’s education material, including distribution of English and Spanish materials. The Applicant will provide drug prevention and risk education materials in both English and Spanish as appropriate at its Fresno retail location, online, through its community partners, and/or by request to the Applicant’s community liaison, (outlined below).  Community Education Resources As an experienced cannabis retail operator with more than 20 dispensaries nationwide, Cresco has witnessed both the business and civic value of a thoughtful and robust community education plan in multiple markets across the country. This critical component of a successful community integration of retail operations is an invaluable aspect of both Cresco’s and the Applicant’s business and at the core of their corporate values. In addition to educational programs outlining the risks of youth cannabis use, the Applicant will provide public health education opportunities through its wellness programs and printed/web resources. Cresco has demonstrated successful integration of community education programs in multiple markets, most notably through its Pennsylvania Medical Marijuana Education Center (“PAMMEC”), located in Pittsburgh. Its primary mission is to provide education, access to information and resources, and help build a sense of community around issues impacting health and wellness. To date, PAMMEC has provided dozens of workshops and educational programming including but not limited to registering community members with the Medical Marijuana Program, expungement and pardon classes, alternative treatments for epilepsy, caregiver signup drive, free yoga and massage, ask the pharmacist, and fitness bootcamps. 8 Property of SLO Cultivation Inc. The Applicant intends to replicate this successful model by providing comparable educational opportunities through its retail location, online, and in partnership with local organizations. In person, whenever permitted and practicable, and otherwise virtually, the Applicant will hold educational programs in a monthly basis at no cost to residents. The Applicant will incorporate aspects of curriculum developed in-house in partnership with SEED and Cresco’s Horticulture and Curriculum Department into its virtual programming in addition to offering more traditional health and wellness resources to Fresno residents. The Applicant will create written and web-based educational content in both English and Spanish, where practical. It will produce its own content and events in addition to supporting local health and wellness initiatives and supporting existing programming that best reflects the needs and interests of Fresno residents. Cresco and the Applicant are experienced in creating ad hoc educational content that reflects community input. One example is a partnership with Project Awaken, an organization dedicated to individuals with spinal cord injuries. The goal of the partnership was to inform members about the potential benefit from transitioning from opioid use to medical cannabis for pain management. In light of evolving regulations in response to the global pandemic, Cresco and Project Awaken shifted to a virtual webinar format that was attended by the organization’s members and the Cresco's education and pharmacy departments. Although virtual, there was a successful exchange of information and constructive dialogue between attendees and presenters. This successful model can be replicated and executed with the community in Fresno – helping share information and address inquiries within a safe environment. Since entering the California market with a cultivation facility in Carpinteria and manufacturing facility in nearby Mendota, the Applicant has maintained a California-based Community Liaison, who will serve as the direct touchpoint for Fresno community members, and who will be available to attend meetings and event as the Applicant's representative as outlined below. Community Liaison As described above, the Applicant has designated a Community and Outreach Liaison for the Fresno dispensary in compliance with Sec. 9-3309(m). has been Applicant’s Community Liaison for its existing cultivation facility in Carpinteria, California, since 2018. Stephan will expand her role for the Applicant’s proposed retail business in Fresno. Stephan is an active member of her community in Santa Barbara and will further develop her connections in 9 Property of SLO Cultivation Inc. Fresno. Community members will be able to contact via phone for any concerns, questions, or community integration efforts. The Applicant will provide information to all businesses and residences located within 100 feet of the facility for any problems associated with the facility. See Sec. 9-3309(m)(1). The Applicant will also ensure that Stephan attends meetings along with the owner(s) and manager(s) with the City Manager and their designees to discuss costs, benefits, and other community relations during the first year of operation, and will continue these meetings as needed after the first year of business. Also, pursuant to Sec. 9-3309(m)(2), along with the owner(s) and manager(s) will meet with the City Manager and his/her designees whenever, and as frequently as requested by the City Manager and/or his/her designees. Connecting with the Community In addition to the Applicant’s community integration efforts (See Criteria 7) and design efforts, Stephan will assist the Fresno local team with quarterly town halls for any community concerns. Stephan will also reach out directly to the Applicant’s neighbors and provide them with her contact information for any impacts on the Applicant’s surroundings or concerns. On a quarterly basis for the first 2 years of operation, and biannually thereafter, the Applicant will host either in-person or  virtual meetings where community stakeholders can address their comments in an open forum – translation services will be provided upon request. This creates positive dialogue and displays the Applicant’s intent to be good operators and great neighbors. In these forums, will address residents’ questions and concerns, provide business updates when appropriate, and serve as the primary point of contact for Fresno community members to engage with the Applicant. The agenda of the community meetings will be summarized and relayed via email to attendees or those who are interested in what was discussed. These community meetings will also provide an opportunity for the Applicant’s team to give updates on performed or planned volunteerism, special educational sessions the store is hosting, and upcoming events in the community where the Applicant can support the Fresno area. Executing Team In partnership with the aforementioned community organizations and others, the Applicant’s social responsibility plan will be executed by a team of both local and national leaders, including Sabrina Noah, Tai Duncan, Yair Rodriguez, Adam Avila, and Delia Macias. Duncan and Rodriguez are based out of Chicago, and work in Public Affairs and Community Integration alongside their California-based colleagues, and and are Fresno residents who work at Cresco’s Mendota (Fresno County) manufacturing and distribution facility, as Facility Director and Compliance Manager, respectively. Mykel Selph and Brittany Williams comprise the SEED team and will work collaboratively with their fellow Illinois and California colleagues to execute social equity-related programming including expungement clinics and outreach services. 10 Property of SLO Cultivation Inc. I, ALEX PADILLA, Secretary of State of the State of California, hereby certify: Entity Name: File Number: Registration Date: Entity Type: Jurisdiction: Status: SLO CULTIVATION, INC. C3907214 05/19/2016 DOMESTIC STOCK CORPORATION CALIFORNIA ACTIVE (GOOD STANDING) As of October 27, 2020 (Certification Date), the entity is authorized to exercise all of its powers, rights and privileges in California. This certificate relates to the status of the entity on the Secretary of State's records as of the Certification Date and does not reflect documents that are pending review or other events that may affect status. No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of October 28, 2020. ALEX PADILLA Secretary of State Certificate Verification Number: RX2QPLZ To verify the issuance of this Certificate, use the Certificate Verification Number above with the Secretary of State Certification Verification Search available at bebizfile.sos.ca.gov/certificationlindex. - ..,. File with:Brandi L. Orth FRESNO COUNTY CLERK 222lKert Street FRESNO, CA9372t (ss9) 600-257s 'H-T*oI-H"'="'.'lD) JUL'3 0 20t8 - F'ICTITIOUS BUSINESS NAME STATEMENT File No.2201810004486 THE FOLLOWTNG PERSON(S) IS(ARE) CONDUCTING BUSINESS AS E NEW TILING RENEWAL r r)Fictitious Business Name(s): (Tpe or Print) Cresco California Phone (Optional) (805) 403-1033 Steet Address, City, State, Zip Code, Corinl'of Principal Place of Business (P.O. Bor not acceptable) 1269 Marie Street, Mendota, CA 93640 Fresno County Mailing Address (if different than above) 781 Glenhaven Place, Nipomo, CA 93444 San Luis Obispo County 2) Full Name of Registrant SLO CULTIVATION, INC. Residence Address 781 Glenhaven Place, Nipomo, CA 93444 Phone (Optional) (805) 403-1033 3) Registrant commenced to transact business under the Fictitious Business Name(s) listed above on: tl @ate) 4) Regisrant has not yet commenced to transact business under the Fictitious Business Name(s) listed above.g 5) This busrness conducted by: Corporation 6) Articles of Ineorporation (If Applicable) c3907214 This Statement has been executed ---1 pwsuant to section I 79 l9 of the Business -J and Professiona.ls code. (Do not publish - this sentence ualess,lrrx ischecked\. l/ 7) Type or Print Signature and Title Kyle Hardy, President lSigned) // // r ///tqJ/4:t) // -=t4l deel8re ti{t sll information irthlfutatcBert b true and correci (A rqisfraa! whs declir€B &s true information. false declarations arM.nor nunishable bv a fine uo to $1000.)' TIIE FILING OT TIIIS STATEMENT DOES NOT OF ITSELT'AUTHORIZE THE USE IN THIS STATE OF A FICTITIOUS BUSINESS NAME IN VIOLATION OF TIIE RIGTITS OT ANOTIIER UNDER FEDERAL, STATE OR COMMON LAW (SEE SECTION 1441I ET SEQ, BUSINESS AND PROFESSIONS CODE) s) Filed with the FRESNO COTINTY CLERK on: 07 I andi.l. orth, , COLINTY Cbadd O*, t0 I 20LB LERK" 7e) NOTICE: THIS STATEMENTEXPIRES ON: 07 12912023 A NEW STATEMENT MUST BE }'ILED }RIOR TO TEE NXPIRATIONDATE. --rssrlus\,.1 Countv Clerk Admin ,/ -/ (SEAL)Space Below for Use of County Clerk Only - Do Not Publish Certification i , i Certification I hereby certify tiiat the foregoing is a correct coov ofthe orieinal on flle in my offlice. DATED: FRESNO y'Califomia Brandi L. Orth, COLINTY CLERK wrtozonj 4?t#uOft.Tszrl **- Customer Copy Bank Copy Newspaper Copy On: CC-107 (R1-05) Fictitious Business Name Statement FileNo:2201810004486 lofl LEASE AGREEMENT between REZIL NO. 1, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY and SLO CULTIVATION, INC., a California Corporation PLANNING AND DEVELOPMENT DEPARTMENT 2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604 (559) 621-8277 FAX (559) 498-1026 November 19, 2020 Please reply to: Rob Holt (559) 621-8056 Erin Alexander SLO Cultivation, Inc. dba Cresco California 400 W Erie, Ste 110 Chicago, IL 60654 Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04254 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 736 FULTON STREET (APN 468-256-08) 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 P20-04254 736 Fulton Street Page 2 November 19, 2020 The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business. 3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC. 4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District), they shall be dispersed evenly by Council District. The subject property is in Council District 3. There are currently no cannabis retail businesses located in Council District 3. This location requirement is satisfied for a cannabis retail business. Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8056 or at Robert.Holt@fresno.gov. Cordially, Rob Holt, Planner III Development Services Division Planning and Development Department